If employees of a company registered in Delhi receive hotel or lodging services from a hotel or a lodge located in Uttarakhand, what are the circumstances under which input tax credit shall be available to the Delhi-based company?
Under GST law, the place of supply in respect of hotel/lodging services shall be the location of the hotel, that is, Uttarakhand. Accordingly, the Delhi-based company shall be eligible to obtain input tax credit only in case where it has a registration in Uttarakhand and a tax invoice is issued by the hotel mentioning the GSTIN of the recipient for Uttarakhand.
Should I report all the supplies to unregistered buyers in a sequential way or a consolidated way?
If the total value of supply (taxable as well as non-taxable) is below Rs 200 a transaction and the recipient does not require an invoice, then the supplier can raise a consolidated invoice at the close of each day.
GST law prescribes that the turnover of the preceding financial year is required to be considered for computing the turnover for obtaining the registration under composition scheme. For obtaining registration under composition scheme during the current financial year, the turnover between April 2017 and June 2017 shall not be considered.
Do we need to charge GST on the debit/credit notes issued for providing/receiving year-end discounts on a target basis? Also, what would be the treatment if there is no written agreement for such discounts but are being provided as a matter of practice? What is the time period for such reconciliation?
The supplier is required to issue a credit note towards such discount by giving reference to the original invoice. GSTR-1, however, does not allow furnishing details of multiple invoices against a single credit note. The supplier is required to issue a separate credit note against each invoice through which the supplies were made. Maintain written agreements for such discounts in future to avoid litigation. Credit note should be issued latest by September 30 of next financial year or the date of filing of the annual return, whichever is earlier.
As a dealer, we send goods in a vehicle to a particular place and at the time of dispatch, we don’t know the name of the customer. In this case, what are the invoicing requirements? Under what documents the goods will be dispatched and whose name should be mentioned in the document as the recipient?
The supplier shall be required to dispatch the goods on delivery challan by showing it for sale on approval basis to unknown recipients. Subsequently, the supplier shall be required to raise tax invoice at the time when supply takes place to a customer.
A petrol pump dealer supplies fuel and lubricant.
Could he raise a single invoice or are separate invoices required for both supplies? Further, if the value of sale of lubricant is below Rs 200 in each transaction, may he raise a single invoice for each day?
When a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single ‘invoice-cum-bill of supply’ may be issued for all such supplies. If the total value of supply (taxable as well as non-taxable) is below Rs 200 per transaction and the recipient does not require an invoice, then he can raise a consolidated invoice at the close of each day in respect of all such supplies.
The writer is tax partner, PwC India. Aditya Khanna, associate director, PwC, contributed to this column. The views expressed are experts’ own. Send your queries to firstname.lastname@example.org