| (Disclaimer : TaxMitr India does not own this content. The content is the property of CAinindia. Click on the link to view the original content) October, 07th 2019 | |
The indirect tax board had removed
a “controversial” circular that imposed goods and services tax (GST) on
post-sale discounts by dealers, but it has done little to clear the confusion
around the many issues that arose with the circular.
In
June, the Central Board of Indirect Taxes and Customs (CBIC) had issued a
circular which said that dealers will have to pay 18 per cent GST on the
post-sale discount that they get from the suppliers of goods, if the supplier
asks them to pass on the concessions to the end consumer.
The
circular came out with different situations where GST should be paid and where
it should not.
For
instance, imagine that a company sells a car to a dealer for Rs 10 lakh and
later gives a discount of Rs 50,000. In doing so, the firm did not put any
obligation on the dealer to pass on the benefit. So, the dealer need not pay
any GST on Rs 50,000. However, if the company asks the dealer to pass on the
benefit to the customer, then the dealer has to pay GST on the entire amount,
including Rs 50,000.
|
What is E-Invoicing? Electronic Invoicing or E-Invoicing in short can be referred to as a system of electronic authentication of B2B(Business to Business) invoices by GSTN for further use on common GST portal. Under the said system every invoice will be issued an identification number by IRP (Invoice Registration Portal) which will be managed by GSTN. All invoice related information will be transferred from this portal to both GST portal and e-way bill portal in real-time thus eliminating the need of manual data entry as well as generation of part A of the e-way bills , as information will be directly passed by the IRP to GST portal. What are the benefits of E-invoicing system? It will help in reducing the mismatch errors in data reconciliation thus saving a lot of time. E-invoicing will allow interoperability as invoices generated through one software can now be read through other software as wel...