FAQ's

A: GST is one indirect tax for the nation, which will make India one unified common market.GST is a single tax on the source of goods and services, right from the producer to the end user. Credits of input taxes paid at each phase will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value adding at each phase. The final consumer will thus tolerate only the GST charged by the last dealer in the supply chain, with set-off profits at all the previous phases.

A: The benefits of GST can be summarized as under:

For business and industry
  • Tranquil compliance
  • Regularity of tax rates and structuresv
  • Elimination of cascading
  • Improved competitiveness
  • Advantage to producers and exporters
For Central and State Governments
  • Simple and stress-free to manage
  • Enhanced controls on seepage
  • Sophisticated revenue competence
For the consumer
  • Single and transparent tax proportionate to the value of goods and services
  • Relief in overall tax burden

A: At the Central level, the following taxes are being incorporated:

1. entral Excise Duty

2. Additional Excise Duty

3. Service Tax

4. Additional Customs Duty commonly known as Countervailing Duty, and Special Additional Duty of Customs

5. Special Additional Duty of Customs

At the State level, the following taxes are being incorporated:

1. Subsuming of State Value Added Tax/Sales Tax

2. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States)

3. Octroi and Entry Tax

4. Purchase Tax

5. Luxury Tax

6. Taxes on lottery, betting and gambling

A: India is a centralized democracy that is one which has clear discrimination of powers, accountability and revenue gathering between the states and the center in its structure. The Central GST or CGST is the areas where the center has the powers and State GST where the State has taxation competences. The IGST or Integrated GST is for movement of goods within the states of the Indian union. This will be collected by the union however will be transferred over to the states. Thus it is essential that if and when the GST comes out it is rolled over in the entire nation concurrently.

A: The GST replaces numerous different indirect taxes such as:

1. Central Excise Duty

2. Service Tax

3. Countervailing Duty

4. Special Countervailing Duty

5. Value Added Tax (VAT)

6. Central Sales Tax (CST)

7. Octroi

8. Entertainment Tax

9. Entry Tax

10. Purchase Tax

11. Luxury Tax

12. Advertisement taxes

13. Taxes applicable on lotteries.

A: According to experts, these items could become costlier:

Cigarette prices likely to go up as GST rate for tobacco will be higher than current duties

Commercial vehicles such as trucks will become costlier

Mobile phone calls may get costlier as service tax will go up

Textile and branded jewellery may become costlier

And these could become cheaper:

Auto: Prices of entry-level cars, two-wheelers, SUVs may fall

Car batteries likely to get cheaper

Paint, cement prices likely to fall

Movie ticket prices likely to fall as entertainment tax will come down

Electronics items like fans, lighting, water heaters, air coolers, etc. will get cheaper

A: An invoice or a bill is a list of goods sent or services provided, along with the amount due for payment.You can create GST compliant invoices using GSTeFile Software.

A: If you are a GST registered professional, you need to deliver GST-complaint invoices to your clients for sale of good and/or services. Your GST registered vendors will provide GST-compliant purchase invoices to you.

A: A GST Bill must have the following mandatory fields:

1. Invoice number and date

2. Customer name

3. Shipping and billing address

4. Customer and taxpayer’s GSTIN (if registered)**

5. Place of supply

6. HSN code/ SAC code

7. Item details i.e. description, quantity (number), unit (meter, kg etc.), total value

8. Taxable value and discounts

9. Rate and amount of taxes i.e. CGST/ SGST/ IGST

10. Whether GST is payable on reverse charge basis

11. Signature of the supplier

**If the recipient is not registered AND the value is more than Rs. 50,000 then the invoice should carry:

i. name and address of the recipient,

ii. address of delivery,

iii. state name and state code

A: The additional types of invoices are-

1. Bill of Supply

A bill of supply is similar to a GST invoice excluding that bill of supply does not contain any tax amount as the seller cannot charge GST to the buyer.

A bill of supply is issued in cases where tax cannot be charged:

  • Registered person is selling exempted goods/services,
  • Registered person has opted for composition scheme
  • As per Notification No. 45/2017 – Central Tax dated 13th October 2017
  • If a registered person is supplying taxable as well as exempted goods/services to an unregistered person, then he can issue a single “invoice-cum-bill of supply” for all such supplies.
2. Credit/Debit Note

A debit note is issued by seller when the amount payable by buyer to seller increases:

1. Tax invoice has a lower taxable value than the amount that should have been charged

2. Tax invoice has a lower tax value than the amount that should have been charged

A credit note is issued by seller when the value of invoice decreases:

1. Tax invoice has a higher taxable value than the amount that should have been charged

2. Tax invoice has a higher tax value than the amount that should have been charged

3. Buyer refunds the goods to the supplier

4. Services are found to be deficient

Yes. You can revise invoices issued before GST. Under the GST regime, all the dealers must apply for provisional registration before getting permanent registration certificate.

Refer to this image below to understand the protocol of issuing a revised invoice:

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This applies to all the invoices issued between the date of implementation of GST and the date your registration certificate has been issued.

As a dealer, you must issue a revised invoice against the invoices already issued. The revised invoice has to be issued within 1 month from the date of issue of the registration certificate.

A: For Goods- 3 copies(Original for Recipient, Duplicate for Transporter, Triplicate for supplier)

For Services-2 copies(Original for Recipient, Duplicate for supplier)

A: if you are supplying goods and services not more than 20 Lakh, then you don’t need to register under GST. In other words, if you supply goods or services for more than 20 Lakh, then you liable to register under GST.

A: A return is a document containing details of income which a taxpayer is required to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability.

Under GST, a registered dealer has to file GST returns that includes:
  • Purchases
  • Sales
  • Output GST (On sales)
  • Input tax credit (GST paid on purchases)

To file GST returns, GST compliant sales and purchase invoices are required.

A: An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.

The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes

A: e-way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding fifty thousand rupees (Rs. 50,000) as mandated by the Government in terms of Section 68 of the Goods and Services Tax Act read with Rule 138 of the rules framed thereunder. It is generated from the GST Common Portal for eWay bill system by the registered persons or transporters who cause movement of goods of consignment before commencement of such movement.

A: The pre-requisite for generation of eway bill is that the person who generates eway bill should be a registered person on GST portal and he should register in the eway bill portal. If the transporter is not registered person under GST it is mandatory for him to get enrolled on e-waybill portal (https://ewaybillgst.gov.in) before generation of the e-way bill. The documents such as tax invoice or bill of sale or delivery challan and Transporter’s Id, who is transporting the goods with transporter document number or the vehicle number in which the goods are transported, must be available with the person who is generating the e-way bill.

A: Section 68 of the Act mandates that the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed. Rule 138 of CGST Rules, 2017 prescribes e-way bill as the document to be carried for the consignment of goods in certain prescribed cases. Hence e-way bill generated from the common portal is required.

A: The e-way bill is required to transport all the goods except exempted under the notifications or rules. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees. Kindly refer to the e-way bill rules for other exemptions.

A: The person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, bill of entry as the case may be and a copy of the e-way bill number generated from the common portal. Please refer relevant rules for details.

A: The e-way bill once generated cannot be edited or modified. Only Part-B can be updated. However, if e-way bill is generated with wrong information, it can be cancelled and generated afresh. The cancellation is required to be done within twenty four hours from the time of generation.

A: To enable proper entry of the vehicle number, the following formats have been provided for the vehicle numbers

Format RC Numbers Example Entry
ABC1234 DEF 234 DEF0234
AB123456 UP 1 345 UP010345
AB12A1234 AP 5 P 23 AP05P0023
AB12AB1234 TN 10 DE 45 TN10DE0045
AB12ABC1234 KE 3 PEW 1265 KE03PEW1265
DFXXXXXXXXXXXXX For Defence Vehicle, start with DF DF02K123
TRXXXXXXXXXXXXX For Temp RC Vehicle, start with TR TRKA01000002
BPXXXXXXXXXXXXX For Bhutan Vehicle, start with BP
NPXXXXXXXXXXXXX For Nepal Vehicle, start with BP

A: The Vehicle number can be updated by the generator of the e-way bill or the transporter assigned by the generator for that particular e-way bill.

A: If the vehicle breaks down, when the goods are being carried with an EWB, then transporter can get the vehicle repaired and continue the journey in the same EWB. If he has to change the vehicle, then he has to enter the new vehicle details in that EWB, on the eway bill portal, using ‘Update vehicle number’ option in Part B and continue the journey in new vehicle, within the original validity period of e-way bill.

A: If the vehicle breaks down, when the goods are being carried with an EWB, then transporter can get the vehicle repaired and continue the journey in the same EWB. If he has to change the vehicle, then he has to enter the new vehicle details in that EWB, on the eway bill portal, using ‘Update vehicle number’ option in Part B and continue the journey in new vehicle, within the original validity period of e-way bill.

A: GSTeFile allows users to generate eWay bills easily from invoices. Users will get suggestions for Part-A while generating eWay bills from invoices which are present already. Also, eWay bills can be generated for invoices that are not present in GSTeFile.

A: It is easy to generate eWay bills in GSTeFile. If the user has invoices in the system, he needs to choose between Sales and Purchase. Generate eWay bills post finalizing the details in the form. Updating and cancelling eWay bills is also available in GSTeFile.

A: Yes. You can easily get your previously generated eWay bills in GSTeFile using “Get eWay bill”.