GOODS AND SERVICES EFFECTIVE FROM 1.7.2017
IMMEDIATE STEPS TO BE TAKEN
The Goods and Services Tax Act comes into force with
effect from the midnight of 30.6.2017 i.e. from 00.00 hours on 1.7.2017 as per
the decisions taken by the GST Council in the 17th meeting held on
18.6.2017.
As per the GST Portal message the Provisional ID will
be the GST Identification Number (GSTIN).
As the Provisional ID is the GST Identification Number, the Provisional
ID already received has to be intimated to their Goods Suppliers and Service
Providers for making invoices with correct GSTIN effect from 1.7.2017 onwards.
Stock details as on 30.6.2017 has to be arrived to
claim input tax credit on 1.7.2017 as per the Transitional Provisions given
below:
TRANSITIONAL PROVISIONS
1. Tax or duty credit carried forward under any existing law or on goods held in stock on the appointed day
(1)
Every registered person entitled to take credit of input tax under section 140 shall, within ninety
days of the appointed day, submit a declaration electronically in FORM GST TRAN-
1, duly signed, on the Common Portal specifying therein, separately, the amount of input tax credit to
which he is entitled under
the provisions of the said
section:
Provided that the Commissioner may, on the recommendations of
the Council, extend the period
of ninety days
by
a further period
not exceeding ninety days.
Provided further that where the
inputs have been received from an Export Oriented Unit or a unit located in Electronic Hardware
Technology Park,
the credit shall be
allowed to the extent
as provided in sub-rule (7) of
rule 3 of the CENVAT
Credit Rules, 2004:
[this proviso
only
in CGST rules]
Provided that in the case of a claim under sub-section (1) of section 140, the application shall specify separately—
(i)
the value of claims
under section 3, sub-section (3) of section 5, sections 6 and 6A and
sub-section (8) of section 8 of the Central Sales Tax Act,
1956 made by the applicant
and
(ii) the serial number and value of declarations
in Forms C and/or F and Certificates in Forms E and/or H or Form I specified in rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957 submitted by the applicant in support of the claims referred to
in sub-clause (i) above;
(2) Every declaration under sub-rule (1) shall:-
(this proviso only in SGST rules)
(a) in the case of a claim under sub-section (2)
of section140,
specify separately the following
particulars in respect
of every item of capital goods as on the appointed
day-
(i)
the amount of tax or duty availed or utilized by way of input tax credit under each of the
existing laws till the appointed day, and
(ii)
the amount of tax or duty yet to be availed or utilized by way of input tax credit
under each of the
existing laws till the appointed day;
(b)
in the case of a claim under sub-section (3) or the proviso thereto or clause (b)
of sub- section (4) or sub-section (6) or sub-section (8) of section 140, specify separately the details
of stock held on the appointed
day;
(c) in the case of a claim under sub-section (5)
of section 140, furnish the following details—
(i) the name of the supplier, serial number and date of issue of the invoice by the
supplier or any document on the basis of which credit of input tax was admissible
under the existing law,
(ii) the description
and value of the
goods or services,
(iii) the quantity in case of goods
and the unit or unit quantity code thereof,
(iv) the amount of eligible taxes and duties or, as the case may be, the value added tax
[or
entry tax] charged
by
the supplier in respect of the
goods or services, and
(v) the date on which the receipt of goods or services is entered in the books of
account of the recipient.
(3) The amount of credit specified in
the application in FORM GST TRAN-1 shall be
credited to the electronic credit ledger of the applicant maintained in FORM GST PMT-2 on
the Common Portal.
(4) (a) (i) A registered person who was
not
registered
under the existing law
shall, in accordance with the proviso to sub-section (3) of section 140, be allowed to avail of input
tax credit on goods (on which the duty of central excise or, as the case may be, additional duties
of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975, is leviable) held in stock on the appointed day in respect of which he is not in possession of any
document evidencing payment of central excise duty.
(ii) Such credit shall be allowed at the rate of sixty per cent. on such goods which attract
central tax at the rate of nine per cent. or more and forty
per cent. for other goods of the
central tax applicable on supply of such goods after the appointed date and shall be credited
after
the central
tax payable
on such supply has
been
paid:
Provided that where integrated tax is paid on such goods, the amount
of credit shall be
allowed at
the
rate of thirty per cent.
and twenty per cent. respectively of
the
said tax
(iii) The scheme shall be available for six tax periods from
the appointed date.
(b)
Such credit of central tax shall be availed subject to satisfying the following
conditions, namely,-
(i) such goods
were
not
unconditionally exempt from
the whole
of the duty of excise
specified in the First Schedule to the Central Excise Tariff Act, 1985 or were
not nil rated in the said
Schedule.
(ii) the document for procurement of
such goods is available with the registered
person.
(iii) the registered person availing of this scheme and having furnished the details of stock
held by him in accordance with the provisions of clause (b) of sub-rule (2) of rule 1, submits a statement in FORM GST TRAN 2 at the end of each of the six tax periods during which the scheme is in operation indicating
therein the details of supplies of such goods effected during the tax period.
(iv) the amount of credit allowed shall be
credited to the electronic
credit ledger
of the applicant maintained in
FORM GST PMT-2 on
the Common Portal.
(v)
the stock of goods on which the credit is availed is so
stored
that
it can be easily identified by the registered
person.
(In CGST
Rules) (4) (a) (i) A registered person, holding stock of goods which have suffered tax at the first
point of their sale in the State and the subsequent sales of which are not subject to tax in
the State availing credit in accordance with the proviso to sub-section (3) of section 140 shall be allowed to avail input
tax credit on goods held in stock on the appointed day in
respect of which he is not in possession of any document evidencing payment of value
added tax.
(ii) Such credit shall be allowed at the rate of sixty per cent. on such goods which attract
State tax at the rate of
nine per cent. or more and forty per cent. for other goods of the State
tax
applicable on supply
of such goods after the appointed date and shall be credited after
the
State tax payable on such supply has been paid:
Provided that where integrated tax is paid on such goods, the amount of credit shall be
allowed at
the
rate of thirty per cent.
and twenty per cent. respectively of
the
said tax.
(iii) The scheme shall be available
for six tax periods from the appointed date.
(b) Such credit of State tax shall be
availed subject to satisfying the following conditions, namely,-
(i) such goods were not wholly exempt from tax under the <Name of the State> Value
Added Tax
Act,…..
(ii) the document
for procurement
of such goods is
available with the registered
person.
(iii) the registered person availing of this scheme and having furnished the details of
stock held by him in accordance with the provisions of clause (b) of sub-rule (2) of rule 1,
submits a statement in FORM GST TRAN 2 at the end of each of the six tax periods during which the
scheme is in operation indicating therein the
details of supplies of
such goods effected
during the tax period.
(iv) the
amount of
credit allowed shall be credited to the electronic credit ledger of the
applicant maintained in FORM GST PMT-2 on
the
Common Portal.(v) the stock of goods
on which the credit is availed is so stored that it can be easily identified by the registered
person.
(In
SGST Rules of States offering
tax on MRP scheme)
2. Declaration to
be
made under clause (c) of
sub-section (11) of section 142
Every person to whom the provision of clause (c) of sub-section (11) of section 142 applies, shall
within a period of ninety days of the appointed day, submit a declaration electronically in FORM
GST TRAN-1 furnishing the proportion of supply on which VAT
or service tax has
been paid before the appointed day but the supply is made after the appointed day, and the ITC
admissible thereon.
[Individual States may insert a proviso giving the details of methodology of calculation of
the VAT paid which would be available
as ITC of State Tax]
3. Declaration of stock held by a principal and agent
Every person to whom the provisions of section 141 or
sub-section (14) of section 142 apply
shall, within ninety days of the appointed day, submit a declaration electronically in FORM
GST TRAN-1,
specifying therein, the stock of the inputs, semi-finished goods or finished goods,
as applicable, held by him on
the appointed day.
4. Details of goods
sent on approval basis
Every person having sent goods on approval under the existing law and to whom sub-section (12)
of section 142 applies shall, within ninety days of the appointed day, submit details of such
goods sent on approval in
FORM GST TRAN-1.
5. Recovery of credit
wrongly availed
The amount credited under sub-rule (3) of rule 1 may
be verified and proceedings under section 73 or, as
the
case may be, section
74 shall be initiated in respect of any credit wrongly availed, whether
wholly or partly.
Similarly steps to be taken to maintain accounts with effect from 1.7.2017 under
the Goods and Services Tax Act as per the GST Council guidelines given below
which was decided on 18.6.2017.
ACCOUNTS
AND RECORDS
1.
Maintenance of accounts by registered persons
(1) Every registered person shall
keep
and
maintain,
in
addition
to
the
particulars
mentioned in sub-section (1) of section 35, a true and correct account of the
goods or services imported or exported or of supplies attracting payment of tax
on reverse charge along with relevant documents, including invoices, bills of
supply, delivery challans, credit notes, debit notes, receipt vouchers, payment
vouchers, refund vouchers and e-way bills.
(2) Every registered person,
other than a person paying tax under
section 10, shall maintain accounts
of stock in respect of goods received and supplied by him, and such account
shall contain particulars of opening balance, receipt, supply, goods lost,
stolen, destroyed, written off or disposed of by way of gift or free sample and
balance of stock including raw material, finished goods, scrap and wastage
thereof.
(3) Every registered person shall
keep and maintain a separate account of advances received, paid and adjustments
made thereto.
(4) Every
registered person, other than a person paying tax under section 10, shall keep
and maintain an account,
containing the details
of tax payable
(including tax payable
in accordance with the provisions of sub-section (3) and sub-section (4)
of section 9), tax collected and paid, input tax, input tax credit claimed,
together with a register of tax invoice, credit note, debit notes, delivery
challan issued or received during any tax period.
(5) Every registered person shall keep the particulars of
(a)
names and complete
addresses of suppliers
from whom he has received
the goods or services chargeable to tax under the
Act;
(b)
names and complete
addresses of the persons to whom he has supplied
goods or services, where
required under these rules;
(c) the complete address of the premises where goods are stored by him, including
goods
stored
during transit along with the particulars of the stock stored therein.
(6) If any taxable goods are found to
be stored at any place(s) other than those declared under sub-rule (5) without
the cover of any valid documents, the proper officer shall determine the amount
of tax payable on such goods as if such goods have been supplied by the
registered person.
(7) Every registered person shall
keep the books of account at the principal place of business and books
of account relating
to additional place
of business mentioned in his certificate of
registration and such books of account shall include any electronic form
of data stored on any electronic
device.
(8) Any
entry in registers,
accounts and documents
shall not be
erased, effaced or overwritten, and all incorrect
entries, otherwise than those of clerical nature,
shall be scored out under attestation and there
after correct entry shall be recorded and where the registers and other
documents are maintained electronically, a log of every entry edited or deleted
shall be maintained.
(9) Each volume of books of account
maintained manually by the registered person shall be serially numbered.
(10) Unless proved otherwise, if any
documents, registers, or any books of account belonging to a registered person are found at any premises other than those mentioned in the certificate of registration, they shall be
presumed to be maintained by the said registered person.
(11) Every agent referred to in
clause (5) of section 2 shall maintain accounts depicting the - (a)
particulars of authorization
received
by
him
from
each
principal
to
receive
or
supply
goods or services on behalf of such principal separately;
(b) particulars
including description, value and quantity
(wherever applicable) of goods or services received on behalf of every
principal;
(c)
particulars including description, value and quantity
(wherever applicable) of goods or services supplied on behalf of every principal;
(d)
details of accounts furnished to every
principal; and
(e)
tax paid on receipts or on supply of goods or services
effected on behalf of every principal.
(12) Every
registered person manufacturing goods shall maintain monthly production
accounts, showing quantitative details of raw materials or services used in the manufacture
and quantitative details of the goods so manufactured including the waste and
by products thereof.
(13) Every registered person
supplying services shall maintain the accounts showing quantitative details of
goods used in the provision of services, details of input services utilised and
the services supplied.
(14) Every registered person
executing works contract shall keep
separate accounts for works contract
showing -
(a)
the names and addresses of the persons on whose
behalf
the
works
contract
is
executed;
(b) description, value and quantity
(wherever applicable) of goods or services received
for the execution of works contract;
(c)
description, value and quantity
(wherever applicable) of goods or services utilized
in
the
execution of works contract;
(d) the details of payment received in
respect of each works contract; and
(e) the names and addresses of suppliers
from whom he received goods or services.
(15) The records under these rules
may be maintained in electronic form and the record so maintained shall be authenticated
by means of a digital signature.
(16) Accounts maintained by the
registered person together with all invoices, bills of supply, credit and debit notes, and delivery challans
relating to stocks, deliveries, inward supply and outward supply shall be
preserved for the period as provided in section 36 and shall, where such
accounts and documents are maintained manually, be kept at every related place
of business mentioned in the certificate of registration and shall be
accessible at every related place of business where such accounts and documents
are maintained digitally.
(17) Any person having custody over
the goods in the capacity of a carrier or a clearing and forwarding agent for
delivery or dispatch thereof to a recipient on behalf of any registered person
shall maintain true and correct records in respect of such goods handled by him on behalf of the such registered person and shall produce the details thereof
as and when required by the proper officer.
(18) Every registered person shall,
on demand, produce the books of accounts which he is required to maintain under
any law in force.
2. Generation
and maintenance of electronic records
(1)
Proper electronic back-up
of records shall
be maintained and preserved in such manner that, in the event of destruction
of such records due to accidents or natural causes, the information can be
restored within reasonable period of time.
(2)
The registered person
maintaining electronic records
shall produce, on
demand, the relevant records
or documents, duly
authenticated by him,
in hard copy
or in any electronically readable format.
(3) Where the accounts and records are
stored electronically by any registered person, he shall, on demand, provide
the details of such files,
passwords of such files where
necessary for access and any other information which is required
for such access along with sample
copy in print form of the information stored in such files.
3.
Records to be maintained by owner or operator of godown or warehouse and transporters
(1) Every
person required to
maintain records and
accounts in accordance
with the provisions of sub-section (2) of section
35, if not already registered under the Act, shall
submit the details regarding his business electronically on the Common
Portal in FORM GST ENR-01, either directly
or through a Facilitation Centre notified by the Commissioner and, upon
validation of the details furnished,
a unique enrollment number shall be
generated and communicated to the said person.
(2) The person enrolled under
sub-rule (1) as aforesaid in any other State or Union territory shall be deemed
to be enrolled in the State or Union territory.
(3) Every person who is enrolled
under sub-rule (1) shall, where required, amend the details furnished in FORM
GST ENR-01 electronically on the Common Portal either directly or through a
Facilitation Centre notified by the Commissioner.
(4)
Subject to the provision of rule 1, any person engaged in the business
of transporting goods shall
maintain records of goods transported, delivered and goods
stored in transit
by him alongwith GSTIN of the registered consignor and consignee for
each of his branches.
(5) Subject to the provision of rule
1, every owner or operator of a warehouse or godown shall maintain books of
accounts with respect to the period for which particular goods remain in the
warehouse, including the particulars relating
to dispatch, movement, receipt, and disposal of such
goods.
(6)
The owner or the operator
of the godown shall store the goods in such manner that they
can be identified item wise and owner wise and shall facilitate any physical
verification or inspection by the proper officer on demand.
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