19/05/2017
Summary of key changes in revised GST Rules
Invoice Rules:
1. Where at the time of receipt of advance:
(a) the rate of tax is not determinable, the tax shall be paid at the rate of 18%
(b) the nature of supply is not determinable, the same shall be treated as inter-State supply.
2. Serial number should not exceed 16 characters (containing alphabets, numerals or special characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof) – applicable for Tax invoices, bill of supply, receipt voucher, refund voucher, payment voucher, Revised Tax invoice or credit notes or debit notes and delivery challan.
3. Single or multiple series of invoices now specifically allowed in case of Receipt vouchers, Refund voucher, Payment voucher, Revised Tax invoice, Credit note, Debit note and Delivery challan as well in addition to the Tax Invoices
4. Format for payment voucher to be issued in case of receipt of goods and services from unregistered persons under GST has been prescribed under draft GST Invoice Rules
5. Format of Refund voucher to be issued in case of return of advance where no supply was made has been prescribed under draft GST Invoice Rules.
Valuation Rules
1. In respect of value of supply of goods or services or both between distinct or related persons, other than through an agent – new proviso has been inserted to state the following:
- Where goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to 90% of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person Proviso stating that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of goods or service – has been retained in the revised draft GST Valuation Rules
2. Valuation method prescribed in cases where value of supply is inclusive of GST – Tax amount = Value inclusive of taxes * GST rate % / (100 + GST rate %). The GST in the said clause includes CGST,SGST, UTGST and IGST.
Input tax Credit Rules
1. Time limit restriction for claiming credit of GST paid in respect of any supply of goods and services by September of next financial year – shall not be applicable in case of re-availment of any credit
which had been reversed earlier. This would be relevant in cases where the recipient has reversed input tax credit on account of non-payment of value of supply along with tax within a period of 180 days.
2. Requirement of reversal of input tax credit in respect of non-payment to supplier has been removed in respect of supplies which are taxable despite being supplied free (supplies between distinct or related parties).
3. List of documents prescribed for availing credit in respect of import of goods amended to include any similar document prescribed under the Customs Act or Rules made thereunder for assessment of integrated tax on imports – in addition to bill of entry prescribed earlier 18 May
4. In case of supply of capital goods or plant and machinery where input tax credit has been availed – depreciation rate of 5% per quarter or part thereof has been prescribed from the date of issue of invoice for such goods – for the purpose of calculating the depreciated value of capital goods or plant and machinery.
Refund Rules
1. Formula for claiming refund on account of Inverted duty structure has been prescribed under draft GST Refund Rules
2. While applying refund on account of taxes paid for supplies made to SEZ, the supplier has to give a declaration that SEZ developer or SEZ unit has not availed the input tax credit of the taxes charged by the supplier.
