What are some of the key challenges?
Quality of data, addressing errors and reconciliation of returns, synchronization with Goods and Services Tax Network (GSTN) and timely and appropriate credits for managing impact on working capital.
What is the impact of GST compliance on businesses?
GST Compliance is top of the agenda for companies big or small. Change from onetime filing to continuous/monthly filing of taxes with government, it requires high degree of accuracy and more efforts. Complete shift with respect to filing of taxes from traditional paper and offline filing to online and digital form of filing. Maintaining non-core system / applications for filing taxes.
Who are GSPs and how will they help in effective compliance of GST?
The GST Suvidha Providers or GSPs are licensed and authorized by the Goods and Services Tax Network (GSTN) of the Government to connect to the GSTN using the published APIs GSP’s will facilitate taxpayers in uploading securely GST returns in a prescribed format GSPs can customize products that address the compliance needs of different segment of users
Who are ASPs and what will be their role?
ASPs are Application Service Providers ASP functionality will be to prepare monthly and annual GST returns basis taxpayer data, enable reconciliation of returns for appropriate and timely credits ASP will file returns for taxpayers through authorized GSPs
What is the objective of using a GSP-ASP?
Primary objective of ASP-GSP is to ensure compliance and governance under the GST regime, which will require deep domain and technology knowledge. ASPs’ drive long term service subscription model to provide the tax filing and managing the reconciliation process. Organizations must recognize the value of the service of ASP as data sharing must comply to maintaining privacy, reliability and control.
What is the scope of ‘supply’ under the GST law?
The term ‘supply’ is wide in its import covers all forms of supply of goods or services or both that includes sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It also includes import of service. The model GST law also provides for including certain transactions made without consideration within the scope of supply.
Different companies have different types of accounting software packages and no specific format are mandated for keeping records. How will department be able to read into these complex software?
As per Section 153 of the CGST/SGST Act, having regard to the nature and complexity of a case and in the interest of revenue, department may take assistance from an expert at any state of scrutiny, inquiry, investigation or any other proceedings
Is there any provision in GST for tax treatment of goods returned by the recipient?
Yes, Section 34 deals with such situations. Where the goods supplied are returned by the recipient, the registered person (supplier of goods) may issue to the recipient a credit note containing the prescribed particulars. The details of the credit note shall be declared by the supplier in the returns for the month during which such credit note was issued but not later than September following the end of the year in which such supply was made or the date of filing of the relevant annual return, whichever is earlier. The details of the credit note shall be matched with the corresponding reduction in claim for input tax credit by the recipient in his valid return for the same tax period or any subsequent tax period and the claim for reduction in output tax liability by the supplier that matches with the corresponding reduction in claim for ITC by the recipient shall be finally accepted and communicated to both parties.
Can I upgrade my subscription?
Yes, as on when your invoice volume increases or addition more companies or GSTNs, you can move to higher subscription
What happens to my data when I cancel my subscription?
Once you’ve cancelled the subscription, all your existing data will remain in read-only mode. f you wish to backup your data, you can export your data in CSV or XLS formats.
Will I get refund if I cancel during subscription period?
Yes, refund will be calculated on a prorated basis and monthly charges will be applied for already completed months and remaining amount will be refunded.
Will the cost of my subscription increase?
The cost of an annual subscription will not increase in the year you are subscribed. The cost of a month-month subscription can change. In this situation, when there is change you are notified in advance and are given the option to cancel or move another subscription.
What is ‘e-invoicing’?
As per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN).
After following above ‘e-invoicing’ process, the invoice copy containing inter alia, the IRN (with QR Code) issued by the notified supplier to buyer is commonly referred to as ‘e-invoice’ in GST.
Because of the standard e-invoice schema (INV-01), ‘e-invoicing’ facilitates exchange of the invoice document (structured invoice data) between a supplier and a buyer in an integrated electronic format.
Please note that ‘e-invoice’ in ‘e-invoicing’ doesn’t mean generation of invoice by a Government portal.
What is e-invoicing process? How is it different from present system?
There is no much difference indeed.
Registered persons will continue to create their GST invoices on their own Accounting/Billing/ERP Systems. These invoices will now be reported to ‘Invoice
Registration Portal (IRP)’. On reporting, IRP returns the e-invoice with a unique ‘Invoice Reference Number (IRN)’ after digitally signing the e-invoice and adding a QR Code. Then, the invoice can be issued to the receiver (along with QR Code).
A GST invoice will be valid only with a valid IRN.
For which businesses, e-invoicing is mandatory?
Presently, it is mandated for registered persons whose aggregate turnover (based on PAN) in a financial year is more than Rs. 500 Crores.
From which date, e-invoicing is mandatory for the notified classes of taxpayers?
As per latest notification, e-invoicing will be mandatory w.e.f. 1st October, 2020, for notified classes of registered persons (those having aggregate annual turnover at PAN level more than Rs. 500 Crores).
What are the advantages of e-invoice for businesses?
e-invoice has many advantages for businesses such as Auto-reporting of invoices into GST return, auto-generation of e-way bill (where required).
e-invoicing will also facilitate standardisation and inter-operability leading to reduction
of disputes among transacting parties, improve payment cycles, reduction of processing
costs and thereby greatly improving overall business efficiency.
What businesses need to do, to be e -invoice ready?
Businesses will continue to issue invoices as they are doing now. Necessary changes on account of e-invoicing requirement (i.e. to enable reporting of invoices to IRP and obtain IRN), will be made by ERP/Accounting and Billing Software providers in their respective software. They need to get the updated version having this facility.
What documents are presently covered under e -invoicing?
- B2B Invoices
- Invoices issued for Export
- Credit Notes
- Debit Notes
issued by notified class of registered persons are currently covered under e-invoice.
Though different documents are covered, for ease of reference and understanding, the system is referred as ‘e-invoicing’.
What transactions are presently covered under e-invoice?
B2B GST Supplies and Export Invoices, Credit and Debit Notes issued by notified class of taxpayers are currently covered under e-invoice.
Is e-invoicing mandatory for B2C (Business to Consumer) supplies also?
No. e-invoicing is not applicable to B2C invoices. Presently, it is only mandated for B2B
Supplies and supplies for the purpose of export by notified class of registered persons.
What is the applicability of e-invoice for import transactions?
e-invoicing is not applicable for import Bills of Entry.
Which entities/persons are exempt from the e-invoice mandate?
- Special Economic Zone Units E-INVOICE – FAQ 5 of 14
- insurer or a banking company or a financial institution, including a non-banking financial company
- goods transport agency supplying services in relation to transportation of goods by road in a goods carriage
- Suppliers of passenger transportation service
- Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens
What do I need to generate an e -invoice?
A system/utility to report e-invoice details in JSON format to IRP and receive signed einvoice in JSON format from the Portal
What are various modes for generation of e-invoice?
Multiple modes will be available so that taxpayer can use the best mode based on his/her
need. Below modes are envisaged:
- API based,
- Mobile app based,
- Offline tool based and
- GST Suvidha Provider (GSP) based
Whether Government will provide any tool to report invoices to IRP?
Yes. For small entities not having their own ERP/Software solutions, a free offline utility will be provided, through which invoices can be easily prepared, reported to IRP and obtain IRN/signed e-invoice.
Can IRN be generated by supplier directly?
No. The seller will not be able to create IRN. This will only be returned by the IRP (portal).