New Delhi, June 14 (KNN) Goods & Services Tax (GST) when implemented is all set to change the way business is done in the country.
Apart from subsuming various taxes, GST will also bring several procedural changes while doing business.
MSME sector has been raising concerns over difficulties in adopting GST and the government and industry bodies are extending handholding support to them for smooth transition to GST regime.
The Public Procurement Policy mandates Central Department/ Ministries to procure minimum 20 per cent of goods or services from micro and small enterprises (MSE) vendors.
Now the buyers, the big players, are also making some changes in their tender documents in lieu of GST being implemented from July 1, 2017.
One such example is a corrigendum issued by Indian Oil Corporation Ltd. (IOCL) regarding implementation of GST Rate of Tax in tendered items.
IOCL said in view of implementation of GST following will be applicable if material is delivered /invoicing is done after GST implementation.
(1) If after the Acceptance of Tender and prior to the Scheduled Date of Delivery under the
contract and any extension thereof by IOCL, the Goods and Service Tax (GST) in lieu of Excise Duty, Central Sales Tax (CST), Service Tax and/or any other Central Taxes (except basic customs duty levied under Sec 12 of Customs Act 1962), Value Added Tax (VAT) and/ or any other State Taxes is introduced and the rate of such GST is higher than the combined rate of Central and State taxes/ duties which it replaces, then IOCL will reimburse the Vendor the additional tax burden borne by the Vendor by virtue of higher rate of GST. If the rate under GST is levied at a rate lower than the combined rate of Central and State taxes/duties which it replaces, the Vendor shall pass on to IOCL the benefit or advantage which it has gained as a result of lower rate of GST.
(2) The vendor will be under the obligation for invoicing correct tax rate of tax/duties as
prescribed under the GST law to IOCL, and pass on the benefits, if any, after availing input
tax credit, in calculating the revised price for settlement due to impact of GST.
(3) Any invoice issue on introduction of GST Law shall contain the following particulars-
(a) Name, address and GSTIN of the supplier;
(b) Serial number of the invoice;
(c) Date of issue;
(d) Name, address and GSTIN or UIN, if registered of the recipient;
(e) Name and address of the recipient and the address of the delivery, along with the State and its code,
(f) HSN code of goods or Accounting Code of services;
(g) Description of goods or services;
(h) Quantity in case of goods and unit or Unique Quantity Code thereof;
(i) Total value of supply of goods or services or both;
(j) Taxable value of supply of goods or services or both taking into discount or abatement if
(k) Rate of tax (Central Tax, State Tax, Integrated Tax (for inter-state supply), Union Territory
Tax or cess);
(l) Amount of tax charged in respect of taxable goods or services (Central Tax, State Tax,
Integrated Tax (for inter-state supply), Union Territory Tax or cess);
(m) Place of supply along with the name of State, in case of supply in the course of inter-state
trade or commerce;
(n) Address of the delivery where the same is different from the place of supply and
(o) Signature or digital signature of the supplier or his authorised representative.
(4) GST invoice shall be prepared in triplicate, in case of supply of goods, in the following
(a) The original copy being marked as ORIGINAL FOR RECIPIENT;
(b) The duplicate copy being marked as DUPLICATE FOR TRANSPORTER and
(c) The triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
(5) In case of any advance given against any supplies contract, the supplier of the goods shall issue Receipt Voucher containing the details of details of advance taken along with
particulars as mentioned in clause 3(a),(b), (c), (d), (g), (k), (l), (m)& (p).
Similar changes are expected to be made by other large companies as well with the implementation of GST from July 1, 2017. (KNN Bureau)