Skip to main content

GST Invoicing Norms for Retailers Eased

GST Invoicing Norms for Retailers Eased
Retailers need not issue separate invoices for exempted items, can club all purchases in one bill Retailers won't have to issue long invoices detailing prices and taxes for each item under the goods and services tax (GST) regime, further easing the billing and compliance burden on them. They will also not have to issue separate invoices for exempted items taxed at the 0% rate and can club all purchases in one bill.
The GST Council has approved these changes based on the recommendations of the law committee set up to review demands by stakeholders. The two changes will make invoicing and filing easier for retailers.
They can issue invoices clubbing all goods taxed at one rate and mention just the total tax, facilitating smaller and less cumbersome invoices. Under the earlier arrangement, all items had to be mentioned separately along with their prices and taxes.
Retailers had argued that the end-customer is concerned with the net sale price and didn't need a detailed tax breakup, but this was rejected by the committee.
It said buyers have a right to know the tax being levied on all goods and services purchased by them. A supplier need not provide the rate of tax against each item in the invoice and can instead show the cumulative value of all items liable to tax at a particular rate and the total levied on them. This will allow for clubbing of items and simpler invoices.
EXEMPT ITEMS
A similar relief has been provided in the case of 0% items. The GST law provides that a retailer selling both regular and exempt items has to provide two separate receipts -one for each. If a consumer buys grocery items taxed at 0% and consumer goods taxed at 18%, then the retailer will need to issue two separate invoices.
Under the new rules, the retailer will be allowed to issue one single `invoice-cum-bill of supply' for all the goods sold to a con sumer or unregistered entity .Tax experts said the move is in the right direction.
“Allowing aggregate level-value on the invoice, based on GST rate, would be a significant relief for B2C (business to consumer) supplies by retailers. It would be good if the requirement of mentioning harmonised system of nomenclature (HSN) code is also dispensed with in such cases,“ said Pratik Jain, indirect tax leader, PwC.
The Economic Times, New Delhi, 24th October 2017

Comments

Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

RBI rushes in to prop up falling rupee

RBI rushes in to prop up falling rupee India’s central bank reportedly intervened in the currency markets on Monday to prevent a further slide in the local unit, which breached the 67 mark to a dollar for the first time in 15 months amid a widening trade gap and runaway import bills fuelled by high crude-oil prices. Some state-owned banks were seen selling dollars aggressively, interventions that market dealers attributed to the central bank’s strategy to stem the decline of the Indian rupee against the US currency. The rupee is the worst performing among a dozen Asian monetary units in the past three months. It lost 4.25 per cent to the dollar during the period, show data from Bloomberg. On Monday, the Reserve Bank of India (RBI) is said to have sold about Rs 800 million collectively on the spot and exchange traded futures markets, dealers said. An email sent to RBI remained unanswered until the publication of this report. The currency market has seen such a strong central bank interven…

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitt…