• Within a fortnight of President of India signing off on 122nd Constitutional Amendment Bill to introduce the Goods and Services Tax, work on the succeeding stages has been initiated.
  • The ministry of finance has released the draft rules for Goods and Services Tax. The GST council will discuss the rules on September 30.

Here are the quick highlights of draft rules:

Draft Rules on Registration

  • Before applying for registration, Part A of GST REG – 01 seeks to verify the PAN, mobile and email id.
  • Application for registration is to be made online either directly on common portal or through notified facilitation center.
  • 26 forms have been issued for all registration related procedures including cancellation of registration, amending of registration, revocation of registration etc.

Draft Rules on Invoice

  • The draft format for electronic reference number of invoice has been provided.
  • Certain important details for Tax Invoice, Bill of Supply, Supplementary invoice, credit note or debit note has been provided.
  • In case of taxable supply of services, invoice shall be issued within 30 days from the date of supply of service but no time limit for supply of goods.

Draft Rules on Payment

  • Electronic Tax liability register, Electronic credit ledger and Electronic Cash ledger are unique features for payment of tax under GST.
  • The deposition of tax shall be made through internet banking, credit card or debit card, NEFT or RTGS, Over the Counter.
  • A unique identification number shall be generated at the common portal for each transaction to electronic cash or credit ledger.

Draft Rules on Return

  • Businesses will have to file at least three monthly returns and one annual return for each states.
  • Monthly returns are for outward supply, inward supply and summary accounts.
  • Also accounts have to be audited for those having annual turnover of more than Rs. 1 crore.

Here are the quick highlights of draft rules:

Draft Rules on Registration

  • Before applying for registration, Part A of GST REG – 01 seeks to verify the PAN, mobile and email id.
  • Application for registration is to be made online either directly on common portal or through notified facilitation center.
  • 26 forms have been issued for all registration related procedures including cancellation of registration, amending of registration, revocation of registration etc.

Nangia take

Government is moving ultra-fast towards the timely implementation of GST from 1st April of 2017. With this speed of government officials April 2017 is an achievable target thereby India will witness the biggest change in the regime of indirect tax since independence.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.