Expert Articles

There may be three types of error in an Invoice viz. Typographical Error, Error due to higher taxable value or tax rate and Error due to lower taxable value or tax rate. Following shall be the preferred way to rectify these errors:
a) A Typographical / Clerical Error can be rectified by issuing an amended Invoice.
b) If Higher Taxable Value or Tax Rate has been charged, same can be rectified by issuing a Credit Note.
c) If Lower Taxable Value or Tax Rate has been charged, same can be rectified by issuing a Debit Note.

In case of a Supply of Taxable Goods or Services from an unregistered supplier to a registered player (recipient), registered recipient shall issue an invoice on the date of receipt of supply, pay the GST on reverse charge basis and issue a payment voucher at the time of making payment for such supplies.
For every Tax Payer, following electronic tax register / ledgers will be maintained on the common portal ( 
Electronic Tax Liability Register: 
An electronic tax liability register will be debited for amounts payable towards tax, interest, late fee or any other amount as per return and as determined by the Tax Authorities and credited on payment of liability by using input tax credit or by cash.
Electronic Cash Ledger:
An electronic cash ledger will be maintained for crediting the amount deposited and debiting the payment towards tax, interest, penalty, fee or any other amount. The date of credit to the bank account of appropriate government will be deemed to be date of deposit in the electronic cash ledger.
Electronic Credit Ledger: 
An electronic credit ledger will be maintained for crediting every claim of input tax credits and available credit can be used for discharge of tax liability only.
ITC shall be utilised for payment of tax in the following manner:
a. ITC of IGST, CGST, SGST / UTGST shall first be available to make the payment within their respective category (e.g. CGST ITC for CGST Payment).
b. Remaining ITC of IGST can be used to pay first CGST and later SGST / UTGST. 
c. ITC of CGST and SGST / UTGST, if available, can be used to pay IGST, however, can’t be utilized to pay SGST / UTGST and CGST respectively.
Test answer 1
Test answer 2
1. Reliance in GST: 
We at Reliance are keenly working towards creating a Simple Secure GST Compliance Solution for the Tax Payers i.e. JioGST. We are putting forth in this endeavour groups’ extensive capabilities across IT systems & Applications, Indirect Taxation knowledge, High Speed Data Connectivity and High Capacity technology infrastructure. This unique mix of comprehensive knowledge and state of the art resources will facilitate Small and Medium Business Enterprises in smooth adoption of the new Tax Regime.

2. What is the JioGST Product and Offerings:
JioGST is a GST Compliance Service that enables Tax Payers for comprehensive GST Compliances. JioGST facilitate to prepare and validate GST Returns, sign and submit it through a GST Suvidha Provider (GSP) to Goods and Services Tax Network (GSTN). JioGST further allow a Tax Payer to do several reconciliations, monitor defaults and mismatches, do effective reporting and much more as part of its Value Added Services.

3. How JioGST Applications works:
JioGST enable an upload of essential records pertaining to sales and purchases etc. for preparation of GST Returns like GSTR1, GSTR2, and GSTR3 etc. Based on in-build programmes and uploaded records, JioGST Applications will propose GST Returns. JioGST enables to the Tax Payer to prepare, review, e-sign and submit the GST Returns to GSTN.

4. What is the JioGST Setup in terms of Infrastructure, Data Security and Data Privacy:
JioGST is planning its own Best-In-Class Infrastructure along with cloud storage which will be ISO 27000 certified. The data will be secured and used for the purpose intended. JioGST will follow the privacy and data security for all its customers.

5. How will JioGST connect with the Tax Payers’ Accounting System:
We are encouraging API based integration with many of the ERP, Accounting and POS Software, which will ultimately make the data flow seamless and further remove Tax Payer’s hassles and efforts in this journey. JioGST will release standard APIs for ERP, Accounting and POS Software which will be consumed by the Software Provider during the process of GST Upgrade. This will allow integration of Accounting System with JioGST and enable seamless connectivity.

6. What if Tax Payers’ Accounting System cannot be integrated with JioGST or Tax Payer does not use any Accounting System:
In such cases, JioGST shall provide a utility, which requires one time setup in Tax Payer’s Desktop / Laptop. Further JioGST Applications are enabled for direct upload records online in excel, csv or any other most used format.
In normal circumstances, all accounts and records shall be retained for 6 months from the due date of filling of related annual return. However, if any investigation is pending, relevant records shall be retained till one year after closure of investigation. If there is any adjustment pending, relevant records shall be retained till one year after order of adjudication. In case of an appeal or revision is pending, relevant records shall be maintained till one year after final disposal of such appeal or revision.
Tax invoice is a written account of particulars viz. description, quantity, price and the tax charged thereon etc. of goods or services supplied by a supplier to a recipient. Tax invoice is a statutory document. Under the GST law it is compulsory for a supplier to issue an invoice. However for certain category of services, government may notify certain other documents like bus ticket, entry ticket, bank voucher etc. which can be deemed to be a tax invoice. A tax invoice is an essential document for a recipient for claiming input tax credits.
There is no specified format for a tax invoice however certain essential contents have been prescribed under invoice rules like Type of invoice (tax invoice, revised invoice or supplementary invoice), Name, address and GSTIN of the supplier, A consecutive serial no. containing only alphabets & numerals, unique for a financial year, Date of issue of invoice HSN code of goods or accounting code of services, Description of goods or services, Quantity of goods or unit quantity code, Total value of goods/services, Taxable value of goods or services, Rate of tax separately for Central tax, State tax or Integrated tax, Amount of tax charged separately for Central tax, State tax or Integrated tax, Place of supply along with name of state, in case of inter-state supply, Place of delivery if same is different from place of supply, Applicability of reverse charge is mentioned wherever applicable, Signature or digital signature of supplier or his authorized signatory.

Bill of Supply
A supplier supplying exempted goods or service or a supplier who has opted for composition levy scheme has to issue a bill of supply instead of a tax invoice. A bill of supply is not eligible for claiming input tax credits.

Records and accounts of all taxable supplies, exempt supplies, zero rated supplies, supplies liable for tax under reverse charge which are received or supplied in the furtherance or course of business have to be kept and maintained. As per GST law, all taxable persons have to keep and maintain business records and accounts relating to the following at their principal place of business:
• All goods/services supplied or received 
• Production or manufacture of goods 
• Stock of goods 
• Input tax credits availed 
• Output tax payable and paid 
• Any other prescribed document 

Scenario Recommendation
more than one place of business keep accounts relating to each place of business at such place of business
not in a position to keep accounts as per provisions of law approach GST authorities (commissioner/chief commissioner) for relaxation
commissioner/chief commissioner notifies to maintain additional accounts/documents maintain additional records as per order/notification
turnover during a financial year exceeds Rs. 1 crores Get accounts audited by a chartered accountant/ cost accountant and submit a copy of audited annual accounts along with reconciliation statement & other prescribed documents to the GST authority.
records are not maintained properly Tax authorities can initiate proceedings related to demand & recovery of tax.
GST Council is the abbreviation of The Goods and Services Tax Council. It is Constitutional Body created for taking policy decisions about introduction and implementation of GST. The GST council is an important new institution of governance in our federal system. A recommendation from this body is perhaps the only way of depoliticizing the process of tax reform, which is essential if the Centre and the States are to take bold decisions in this area. Read more in para 1.11 of guidance note 1 on Introduction to GST.
Unlike in the case of services, the location of supplier of goods and location of recipient of goods are not defined either in the CGST Bill or IGST Bill. These terms are to be understood certainly not as the location of their registered office but as the place where the supplier holds control over the goods ready to deliver. In other words, location of supplier may be understood as the location of goods ready for supply. The word ‘location’ in this phrase refers to the site or premises (geographical point) where the supplier is situated, with the goods in his control, ready to be supplied.

While for tangible goods, application of above rule will not pose much challenge, for intangible goods such as copyright, trademark, literacy work etc. the legal maxim ‘Mobila Sequuntur Personam’ has emerged as a means to determine the situs of property. In the situation of legislative vacuum, the internationally accepted principle of ‘mobilia sequuntur personam’ would apply, i.e., the situs of the owner of an intangible asset would be the closest approximation of the situs of his intangible asset. We shall discuss more about this principal in our forthcoming mailers.
Proviso to entry 2 in Schedule I of the CGST Bill provides that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.

Words ‘employer’ and ‘employee’ are not defined. Words ‘employer’ and ‘employee’ suggest relationship of ‘master’ and ‘servant’. There might be situations where parties to the contract claim their relationship other than that of master and servant and vice-versa. No absolute tests can be prescribed to determine such relationship. The situation can differ from business to business and by its very nature is incapable of a precise description. The Gujarat High Court in Satish Plastics v. Regional Provident Fund Commissioner 44 FLR 207 (Guj.) has summed up the tests for ascertaining master-servant relationship as follows (i) Was he doing the work for monetary payment? (ii) Was the work done by him the work of the establishment or had a nexus with such work? (iii) Was the payment of wages, in the sense of being remuneration for the physical or mental effort in connection with such work? (iv) Was the work such that it had to be done as directed by the establishment or under its supervision and control to the extent that supervision and control are possible having regard to the specialized nature of the work or the skill needed for its performance? (v) Was the work of such a nature and character that ordinarily a master-servant relationship could exist and, but for the agreement styling it as a contract, common practice and common sense would suggest a master-servant bond? (vi) Was the relation indicative of master-servant status in substance having regard to the economic realities irrespective of the nomenclature devised by the parties? (vii) Was he required to do the work personally without the liberty to get it done through someone else?

In Piyare Lal Adishwar Lal v. CIT[1960] 40 ITR 17 (SC), it was observed that the indicia of a contract of service are (a) the master’s power of selection of the servant; (b) the payment of wages or other remunerations; (c) the master’s right to control the method of doing the work; and (d) the master’s right of suspension or dismissal.

However, in Silver Jubilee Tailoring House v. Chief Inspector of Shops and Establishments, AIR 1974 SC 37, it has been said that mere right to control the manner of work is not the exclusive test for determining the relationship of employer and the employee.

The word 'SIGN' is defined under Section 3(56) of the General Clauses Act 1897 as follows:

"Sign" with its grammatical variations and cognate expressions, shall, with reference to a person who is unable to write his name, include 'mark' with its grammatical variation and cognate expressions. Thus the General Clauses Act did not actually define the term but only states that it would include even a 'mark' in case of persons unable to write their names. In the Webster's, the word 'sign' means 'to write one's name on, as in acknowledging authorship, authorising action etc.' In view of above, you can get stamps of signature of authorised signatories for affixing on invoices. A sign can also be imprinted on invoice. As input tax credit is system controlled, recipient should not have an issue for an invoice which is not signed in 'pen and ink'. In any case, invoices issued to unregistered persons can be issued with stamped/imprinted signature.
Section 15 of the CGST bill provides that value of supply will be the transaction value, where the supplier and the recipient are not related to each other. Explanation attached to section 15 inter-alia provides that the persons shall be deemed to be 'related persons', if they are members of the same family. 'Family' is defined under section 2(49) to mean (i) the spouse and children of the person, and (ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person. The definition of 'family' poses several interesting questions, as to what would be the status of step children and adopted children, grand-children and the meaning of 'wholly or mainly dependent'.

In the absence of anything contrary, even step children and adopted children will be considered as children. Though grand-parents are related persons, grand-children are not related persons. The concept of dependence cannot be confined to mere financial dependence. Ordinarily dependence means financial dependence, but for a member of a family it would mean any other support, may be physical as well. To be 'wholly dependent' would therefore include both financial and/or physical dependence. If support required is physical and a member of the family is otherwise financially sound, he may not necessarily be wholly dependent. A child artist may be earning thousands of rupees per day but he cannot be said to be not dependent on his parents for his/her other needs. A person, in advanced years of age, even if billionaire cannot be said to be independent of his/her children. Even a person who is not wholly dependent is a related person, if he/she is mainly dependent on the other person. Difference between 'wholly dependent' and 'mainly dependent' can be understood, in terms of financial dependence, with example of a person who has some income but does not have income which is sufficient for all his present and future needs. Thus whether parents, grand-parents, brothers and sisters of the person are wholly or mainly dependent on the said person will have to be decided on a case to case basis. Concept of 'wholly or mainly dependent' finds a place in many of the sections of the Income-tax Act, 1961. Judgments under that Act may help in further understanding of the implication of this phrase under GST law.