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GST ACT &
RULES

GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.

Goods and Services Act, 2017

With effect from 1st July 2017 Goods and Services Act has been implemented. It is not one / single act but are five acts as under:

  1. Integrated Good and Services Tax Act 2017.
  2. Central Goods and Services Tax Act 2017.
  3. State Goods and Services Tax Ac 2017.
  4. Union Territory Goods And services Tax Act 2017–
  5. The Goods And Services Tax (Compensation To States) Act 2017.
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FRAMEWORK OF GST AS INTRODUCED IN INDIA

Dual GST:

India has adopted a Dual GST model in view of the federal structure of the country. Consequently, Centre and States simultaneously levy GST on taxable supply of goods or services or both, which takes place within a State or Union Territory. Thus, tax is imposed concurrently by the Centre and States, i.e. Centre and States simultaneously tax goods and services. Now, the Centre also has the power to tax intra-State sales & States are also empowered to tax services. GST extends to whole of India including the State of Jammu and Kashmir.

GST Invoice Rules

  • If you registered under GST issue a Tax Invoice for all taxable goods and services
  • If you registered under Composition Scheme then issue a Bill of Supply in place of Tax Invoice.
  • Ensure that all your invoices in sequential series
  • Ensure that GST invoices contain your name, address, place of supply, GSTIN
  • Intra state sales: CGST and SGST are equally charged. Such as: If the corresponding GST rate is 18%, CGST is 9% and SGST is 9%
  • Interstate sales: any sale outside the state, IGST has to be charged Example: If you supply services with 18% GST from Delhi to Punjab, or any other state, you have to charge IGST at 18%.