Articles

Most updated and easy to understand articles about GST India.

Hi, please login to create a new article

Login using Google

GST Doctor

Tuesday, May 17, 2022

Torrents and Bill Trading

In this article we are going to explore the similarities between Torrents and Bill Trading. And possible ways to combat Bill Trading.

GST Doctor

Sunday, May 15, 2022

Interest on ITC Reversals under GST

After the recommendations of 45th GST Council Meeting, there has been some clarity about interest on ITC reversals. It says - In the spirit of earlier Council decision that interest is to be charged only in respect of net cash liability, section 50(

GST Doctor

Sunday, May 15, 2022

ITC Reversal in case of insurance claim

As per section 17(5) of the CGST Act 2017 if goods are lost, stolen or destroyed and are not used for the furtherance of business then the ITC has to be reversed for such goods. When Insurance claim is filed by the taxpayer, then the auditor can che

GST Doctor

Sunday, May 15, 2022

ITC Reversal for Credit Notes reflected in GSTR-2A

If the supplier of taxpayer has issued a “GST Credit Note” as per section 34 of CGST Act within prescribed time limit (not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the re

GST Doctor

Sunday, May 15, 2022

ITC Reversal for payment after 180 days

When the taxable person is not able to pay his supplier within 180 days, he has to reverse the ITC taken on that invoice. In this article, we will discuss whether he has to reverse full ITC or some part and also since when we will calculate the inter

GST Doctor

Friday, April 8, 2022

GST Tran-1 and Tran-2 Issues

Here is the list of common issues found in GST Tran-1 and Tran-2 during GST Audit: # Tran-1 related * Sum of all closing balance is not matching Tran-1 credit * PLA closing balance taken in Tran-1 * Captial 100% credit taken through Tran-1 * Cess i

GST Doctor

Sunday, May 15, 2022

RCM on royalty paid to foreign company

Under GST regime, temporary transfer or permitting the use or enjoyment of intellectual property right constitutes supply of service as per Schedule II read with Section 7 of CGST Act 2017. > Relevant Section: Section 7 of CGST Act 2017 Relevant Sec

GST Doctor

Friday, April 8, 2022

Job work on Imported Goods

If taxpayer’s clients at abroad supply inputs for job work and the same has been imported without payment of duties of Customs in terms of Notification 32/1997 Customs. And after the undertaking the job work of assembly in India the resultant goods w

GST Doctor

Friday, April 8, 2022

RCM on Invoices Marked in GSTR-2A

Taxpayers need to check the invoices in their GSTR-2A and if the supplier has marked those invoices as “Yes” for RCM. Then they need to pay the tax amount on those invoices under RCM. If you believe that the taxpayer has wrongly shown some invoice a

GST Doctor

Sunday, May 15, 2022

RCM on Services received from Government

When a GST registered person receives a service from government such as renewal of factory license, GST under RCM on Services received from Government is applicable. Notification No. 13/2017 – Central Tax (Rate) dated 28/06/2017 (RCM Notification) i

GST Doctor

Sunday, May 15, 2022

RCM on service provided by Director

We will discuss the applicability of RCM on service provided by Director (Director’s Remuneration). We will cover Independent Director as well as Full Time Director. Notification No. 13/2017 – Central Tax (Rate) dated 28/06/2017 (RCM Notification) i

GST Doctor

Sunday, May 15, 2022

RCM on Rent a Cab

GST on Rent a Cab has been brought under Reverse Charge Mechanism (RCM) from **1st October 2019**. In this article we will discuss all the relevant sections and notifications and how things changed over time. Notification No. 13/2017 was amended vid

GST Doctor

Friday, April 8, 2022

RCM on Security Services

GST on security services was applicable from 1st of July 2017 on forward charge but it has been brought under Reverse Charge Mechanism (RCM) from 1st January 2019 vide Notification No. 29/2018- Central Tax (Rate) dated 31/12/2018. Sl. No.Category of

GST Doctor

Sunday, May 15, 2022

RCM on Legal Services

Legal Services: As defined in Notification No. 12/2017 – Central Tax (Rate): Legal service means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services befo

GST Doctor

Sunday, May 15, 2022

RCM on GTA Services

In this article, we will discuss the applicability of GST on transport of goods by Goods Transport Agency. # Table of contents 1. Who is considered as GTA and who is not? 2. Is GTA liable to register under GST? 3. GST on GTA Services: Forward Charg

GST Doctor

Sunday, May 15, 2022

RCM on purchases made from unregistered dealer

As per Section 9(4) of CGST Act 2017 and Section 5(4) of IGST Act 2017, if any registered person receives any goods or service from an unregistered person then the registered person is liable to pay the GST under RCM. Let us understand the events re

GST Doctor

Friday, April 8, 2022

RCM on Ocean Freight

In respect of imports made by sea (ocean freight), where freight amount has been paid by the supplier to the liner (both situated outside taxable territory – CIF basis), the importer in India is liable to pay IGST under RCM as per Notification No. 10

GST Doctor

Friday, April 8, 2022

Act of Tolerance Services

According to Schedule II of CGST Act 2017, the following shall be treated as supply of services, namely- *5(e): agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act* # Examples: * non-compete agr

GST Doctor

Friday, April 8, 2022

Stock Transfer – Intra and Inter-State

We will discuss the applicability of GST on Stock Transfer within and outside the state. We will also discuss the effect of this to reconciliation of GSTR-1 vs GSTR-3B vs Books of Accounts. # Intra-state stock transfer As per GST law supply of good

GST Doctor

Friday, April 8, 2022

Reconciling E-Way Bill with Sales Invoices

Electronic Way bill (E-Way bill) for movement of goods to be generated on the E-Way Bill Portal. A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) without an e-way bill.

GST Doctor

Friday, April 8, 2022

GST on Advances Received for Services

Time of supply provisions are governed by Section 12 to 14 of the CGST Act, 2017. In general, the time of supply is earliest of issuance of invoice or receipt of payment. Therefore, in case of advance received for any supply, time of supply is fixed

GST Doctor

Friday, April 8, 2022

Wrong Classification of Goods and Services

Under GST law, one of the most important elements is the classification of goods/services for the purpose of determination of rate of tax to be levied on them. The rate of tax to be charged on a particular product depends on the HSN/SAC codes specifi

GST Doctor

Friday, April 8, 2022

Late filing of GST returns

For late filing of GST returns, late fee and interest is applicable. # Late Fee There is a late fee for late filing of GST Returns. These fees are waived from time to time but a general fee structure is given here for reference. ReturnCGST Late Fe

GST Doctor

Friday, April 8, 2022

GSTR-1 vs GSTR-3B vs Books of Accounts

One of the most important parts of GST Audit is Sales Reconciliation. To verify that total sales made has been correctly reported in GSTR-1 and correct tax has been paid in GSTR-3B, we need to compare GSTR-1 vs GSTR-3B vs Books of Accounts. Since bo

GST Doctor

Friday, April 8, 2022

Common ITC Reversal in GST

Whenever a taxable person supplies both taxable (including zero rated) and exempted supplies. He has to reverse the common ITC (Input taken on services that are used for both taxable and exempted supplies) in the ratio of exempted supplies/total supp

GST Doctor

Sunday, April 24, 2022

Ineligible/blocked credit under GST

As per section 17(5) of CGST Act 2017, certain types of input credits are not allowed unless it is used for same nature of outward services or in the nature of composite supply or mixed supply or wherein it is under obligation of any law which is in

GST Doctor

Sunday, April 24, 2022

Matching of claimed ITC | GSTR-2A/B vs GSTR-3B

ITC Claimed by the taxpayer has 3 major components i.e. Imports, RCM and All other ITC. Imports can be matched with Bill of Entry document issued by customs and RCM Credit can be matched with the RCM payments made by the taxpayer in GSTR 3B. “All Oth