Tuesday, September 27, 2016

CBEC releases draft GST Rules and Forms

With enactment of 101st Constitution Amendment Act, the road to GST is clear. The Govt. had already unveiled draft model law on GST. Today, CBEC released draft rules and forms under GST on Registration, Invoice and Payment. Key highlights of rules and forms are as under:

Registration Rules

1. The application of registration will be examined by proper officer and he will approve and grant registration within 3 common working days.

2. If the application is found deficient, then applicant will be intimated within 3 common working days. Thereafter, applicant has to furnish required clarification, information or documents sought within 7 working days electronically. If proper officer is satisfied with details provided by applicant, he will grant registration within 7 common working days from receipt of such details. Otherwise, he will reject application and inform electronically to applicant.

3. The registration certificate must be displayed at principal place of business and at every additional place of business and GSTIN must be displayed in the name board at the entry of place.

4. The person obtaining registration as casual dealer is required to make advance deposit of estimated tax liability for the period for which registration is sought.

Invoice Rules
1. Supplier has to mention name, address of recipient and delivery address along with name of State if recipient is unregistered and taxable value of supply is Rs.50,000 or more.

2. The invoice must contain place of supply if supply is in course of inter-state trade or commerce.

3. The invoice must be in triplicate in case of goods and in duplicate in case of service. The invoice shall be issued within 30 days in case of taxable supply of services. No time period is specified in draft rule for issue of invoice in case of supply of goods.

Payment Rules

1. The electronic tax liability register, electronic credit ledger and electronic cash ledger will be maintained on the common portal for every registered person. 

2. The electronic credit ledger of taxpayer will show the details of invoice and amount of credit. It will also show the credit matched and mismatched.

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