GST is one of the indirect tax on the supply of goods and services from the manufacturer to consumer. GST combines all the taxes into one and subsumes all the indirect taxes. This is done for all the central level and state level taxes.

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GST Rollout: All You
Need to Know About
GST

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GST is one of the indirect tax on the supply of goods and services from the manufacturer to consumer. GST
combines all the taxes into one and subsumes all the indirect taxes. This is done for all the central level and state
level taxes.
A list of 160 countries is implementing GST. While in India, GST is implemented at full speed from July 1st, 2017.
GST tax invoice is proven to be a better tax system as it is more transparent, efficient, effective and increases
competitiveness in the global market. GST has the potential to transform not only the tax system but also provides
impetus to Indian industry and growth.

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The introduction of GST improves the tax collections and boost economic development by breaking the tax barriers
through a uniform tax rate. GST invoice India:
● Simplifies administration and expand the tax net
● Drive competitiveness
● Increase indirect tax collection at the same rate
● No multiple taxations, seamless flow and remove distortions in the trade
● Simplify the tax structure and create a common marketplace
● Reduces the hidden cost of doing business
BASICS OF GST

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GST TAX RATES
GST council finalized tax rates on 19th/ 20th May 2017 meeting in Srinagar. Out of 1211 goods and services,
● – 48% of the goods and services taxed at 18%
● – 8% of the goods and services taxed at 0%
● – 19% of the goods and services taxed at 15%
● – 16% of the goods and services taxed at the 28% slab rate
● – 12% of the goods taxed at 5%
Some of the unique features of a system include:
● Fully automated process and real-time access of taxpayers
● Fully transparent system with real-time validation of PAN, Aadhar, CIN, DIN and more
● Comprehensive dashboard and ledgers with multiple modes for upload
● GST compliance rating for taxpayers

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RULES OF INVOICING UNDER GST
The different kinds of documents are required viz supplementary invoice, tax invoice, vouchers, credit notes, debit notes and bill
of supply.
1. Tax invoice:
Issued to registered dealers i.e. two main types of tax invoice in the current tax regime includes Excise invoice and tax invoice
Compared with
Invoicing in GST regime:
In the GST regimes, tax invoice issued to registered taxable persons supplies taxable goods or services.
Time limit for the issue of the tax invoices: Supply of goods and supply of services. The tax invoice must be issued at the time of
removal of goods or delivery of goods. The invoice may be issued within 45 days of the supply of the service.

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Other crucial details in tax invoice:
Trade Discounts: Discounts needs to be present in the tax invoice. According to the model law Section 15 determines
that the discount should be duly recorded in invoice otherwise there will be no deduction from the value of supply.
Amount of GST charged: The amount of GST is shown separately as per Invoice rules. The section 30 of the Model
GST Law provides that every taxable person indicate all the documents the amount of GST which is forming the part of
price.
HSN code of Goods/ Accounting code of services: Tax invoices shall contain HSN code of Goods or accounting
services.

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INVOICING
According to the section 25 of the Model Law (Refer) requires uploading of invoices on Goods and Services Tax
Network (GSTN) by 10th of the next month. It means each and every service wherever the recipient of service wants
to avail input tax credit, where under certain fee or commission or charges have been charged and on which GST is
levied, is required to be uploaded electronically on the GSTN by the service provider.
2. Bill of Supply: For those registered supplier who makes a supply of exempted goods or services or the ones who
registered under composition scheme.
3. Supplementary Invoice/ Debit Note: It is issued to the recipient when there is upward revision in prices of a good
or service supplied earlier and the same was chargeable to GST.
4. Credit Note: It is issued when there is downward revision of price.
5. Cross- Referencing of invoices: The invoice forms a crucial part in claiming credit for the GST paid therein.

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TOURS AND TRAVELS
Around 30% of the tour value for tourism sector (i.e. an effective rate of 4.5% service tax is levied).
Composition scheme:
The rate of Tax in case of Composition scheme shall not exceed 2.5% of CGST as well as 2.5% of SGST totaling to 5%.

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Real estate is one of the most significant sectors of the Indian economy. The impact of GST on real estate is intended
to be neutral.
Secondly, the impact of GST on the buyers of resale properties is likely to be limited.
Thirdly, the under construction properties have to pay VAT and service tax. As most buyers of under-construction
properties take home loans to fund their purchase that generates the process to appear difficult.
Currently, the sale of land and buildings have been kept out of the reach of GST but it is expected to be taxed within a
period of a year.
REAL ESTATE

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Hotels and lodges that charge INR 1000 a day or less are relieved from the GST,
Those charging INR 1,000 to INR 2,500 will be taxed at 12 pc ,which is a slight decrease from the current rate of 13-14 pc.
Those charging INR 2,500 to INR 5,000 will have to pay 18 pc tax.
Similarly, there are different tax rates on the basis of the annual turnover. For example: small restaurants with less than
INR 50 lakh annual turnover will be taxed at 5 pc, non-air-conditioned restaurants will be taxed at 12 pc and air-conditioned
restaurants will be taxed at 18 pc.
Food and beverages bills can inflate the bills by 30-35% having multiple components. A single-slab tax will benefit
consumers and should lead to savings of 10-15% on the overall bill.
Luxury and other service taxes in hospitality sectors amount to more than 22%, compared with the proposed 18% under
the GST regime. Overall, the impact of GST on restaurants and hotels should be positive assuming the multiplicity of
taxes will go away in food and beverages.
RESTAURANTS AND HOTELS

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The standard logistic costs can be determined by the development of logistics infrastructure. Currently, the logistic standard
rate is about 18-21% but with the implementation of GST reduces up to 20%. Also, the current combined center and state
statutory rate for most goods and all services work out to be 26.5%.
The impact of gst on manufacturing sector leads to lower cost of production. The availability of input tax credit can
remove an extra level of warehousing in the supply chain, hence leading to greater cost benefit.
TRANSPORTATION AND LOGISTICS / MANUFACTURERS

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GST levied at multiple rates ranging from 0 percent to 28 percent. If the GDP grows by 8% then advertising grows by 12%
which is 1.5-2 times. And if the GDP comes down by 1%, advertising comes down to 1.5-2%
Also, the impact of gst is the positive one that will end up spending more with the regime of tax moving from 15%-18%.
For advertising and media agencies, the tax rate may go from 15% to 18%.
Overall GST should be value intrusive to the advertising industry. The distribution and availability of price & goods will also
enhance. The media and entertainment are no exceptions to change, GST will have a major impact of gst on print,
television and the digital sector as it will get subsumed under the bill.
DIGITAL AGENCIES

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BUSINESS BENEFITS
The business benefits that are likely to come on GST tax invoice are different in every other respects.
● There will be no controversies as only one rate will be written that makes the invoicing simpler.
● There will be no entry tax that causes the movement of goods by road transport easier.
● In the GST regime, exemptions will be common between the center and state that makes the duty rates same all
over India.
CONCLUSION
Invoicing under GST plays a vital role for both supplier and recipient. Proper invoicing can be done when proper purchase
orders/ sales orders are made. Make appropriate changes in invoicing software for the proper collection of data while
issuance of invoices and thereafter.
Join Invoicera for accurate GST compliant invoices ! Experience the GST journey now.

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