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Discount under GST

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As a normal trade practice in order to boost sales and recover the payment in a speedy manner, the supplier has to give some discount to customers in the form of trade or cash discount and due to this the biggest question will arise to determine the value of supply in GST regime i.e. what will the taxable value and on which amount GST will be charged.  For the removal of doubts and for better clarity with respect to value of supply in case of discounting under GST we have explained the treatment of discount under GST in a detailed manner. As per Section 15 of CGST Act, 2017: The value of the supply shall not include any discount which is given – (a) Before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) After the supply has been effected, if – (I) Such discount is established in terms of an agreement entered into at or before the time of such supply and specifi...
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Composition Scheme under GST

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 In order to provide relief to small taxpayers i.e. taxpayers having turnover below Rs. 1.5 Crore, the GST law provides the option of Composition Scheme . Under Composition Scheme the small taxpayers can get rid of tedious GST compliance's and pay GST at a fixed rate of turnover.  Key Features of Composition Scheme under GST 1) Eligibility : Everyone is eligible to register under composition scheme subject to certain turnover limits. The turnover limits are as mentioned below. Also, a composition dealer can supply the services to the extent of 10% of the aggregate turnover of the previous year or 5 Lakhs, whichever is higher.   2) Rate of GST : Composition Scheme being an Optional Scheme, the taxpayer who falls in the limits prescribed above and opts for this scheme has to pay GST as per the rates mentioned below.  3) Registration : A registered taxpayer under normal scheme can opt for composition scheme only from beginning of next financial year. Although, if ...
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Tax Audit Limit for FY 2019-20 of The Income Tax Act

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Introduction As per section 44AB of the Income Tax Act 1961, a specified class of persons has to get their books of accounts audited under the said act by a Chartered Accountant to ensure that the taxpayer has maintained proper books of account and has complied with the provisions of the said act. Tax Audit is to be reported by the Chartered Accountant to Income Tax Department via Form 3CA/CB and Form 3CD along with the Income Tax Return. Who has to get Tax Audit under section 44AB done  ? Every person who derives income by way of Business or profession and maintains books of accounts and has not opted for computation of income on presumptive basis under section 44AD, 44ADA or 44AE of the Income-tax Act, 1961 has to get tax audit done provided his income exceeds the prescribed threshold limit.The following person are required to get tax audit done in the given cases.  A person carrying on business if the total sales/ turnover exceeds One crore Rupees during the previous year ...
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Debit Note & Credit Note under GST

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Sometime the Goods or services which are supplied by a registered taxpayers are returned by the purchaser due to certain reasons like deficient value or quantity.  As a result,  taxpayers get confused in these types of transactions w.r.t to GST  treatment . For such transactions the GST laws has the provision of Debit and Credit Notes. For the removal of confusion or better understanding we have explained about the credit and debit notes in  detailed manner and in tabular form. Particulars Credit Note Debit Note Section Section 34(1) of CGST Act, 2017 Section 34(3) of CGST Act, 2017 Meaning Where a tax invoice issued for supply of any goods or services or both and the following situation occurs: Value of tax charged in the tax invoice is found to exceed the taxable value or tax payable; or Where the goods are returned by the recipient; or Where the goods or services or bo...
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