NEW DELHI: Retailers won't have to issue long invoices detailing prices and taxes for each and every item below the products and services tax (GST) regime, additional easing the billing and compliance burden on them. They can even not have to issue separate invoices for exempted items taxed on the 0% price and can club all purchases in one invoice.
The GST Council has approved those adjustments according to the recommendations of the legislation committee set as much as review calls for by way of stakeholders. The two adjustments will make invoicing and filing more straightforward for shops. They can issue invoices clubbing all items taxed at one price and point out simply the total tax, facilitating smaller and less cumbersome invoices.
Under the sooner arrangement, all items had to be discussed separately along side their prices and taxes. Retailers had argued that the end-customer is concerned about the online sale worth and did not need a detailed tax breakup, however this used to be rejected by way of the committee. It mentioned buyers have a right to know the tax being levied on all items and services bought by way of them.
A supplier needn't provide the price of tax against each and every item within the bill and can instead show the cumulative price of all items prone to tax at a specific price and the total levied on them. This will allow for clubbing of things and simpler invoices.
Exempt Items
A equivalent relief has been provided relating to 0% items.
The GST legislation provides that a retailer selling both regular and exempt items has to offer two separate receipts — one for each and every. If a consumer buys grocery items taxed at 0% and consumer items taxed at 18%, then the retailer will need to issue two separate invoices.
Under the new laws, the retailer might be allowed to issue one unmarried 'invoice-cum-bill of supply' for all of the items bought to a consumer or unregistered entity. Tax mavens mentioned the move is in the suitable direction.
"Allowing aggregate level-value on the invoice, based on GST rate, would be a significant relief for B2C (business to consumer) supplies by retailers. It would be good if the requirement of mentioning harmonised system of nomenclature (HSN) code is also dispensed with in such cases," mentioned Pratik Jain, indirect tax chief, PwC.
The GST Council has approved those adjustments according to the recommendations of the legislation committee set as much as review calls for by way of stakeholders. The two adjustments will make invoicing and filing more straightforward for shops. They can issue invoices clubbing all items taxed at one price and point out simply the total tax, facilitating smaller and less cumbersome invoices.
Under the sooner arrangement, all items had to be discussed separately along side their prices and taxes. Retailers had argued that the end-customer is concerned about the online sale worth and did not need a detailed tax breakup, however this used to be rejected by way of the committee. It mentioned buyers have a right to know the tax being levied on all items and services bought by way of them.
A supplier needn't provide the price of tax against each and every item within the bill and can instead show the cumulative price of all items prone to tax at a specific price and the total levied on them. This will allow for clubbing of things and simpler invoices.
Exempt Items
A equivalent relief has been provided relating to 0% items.
The GST legislation provides that a retailer selling both regular and exempt items has to offer two separate receipts — one for each and every. If a consumer buys grocery items taxed at 0% and consumer items taxed at 18%, then the retailer will need to issue two separate invoices.
Under the new laws, the retailer might be allowed to issue one unmarried 'invoice-cum-bill of supply' for all of the items bought to a consumer or unregistered entity. Tax mavens mentioned the move is in the suitable direction.
"Allowing aggregate level-value on the invoice, based on GST rate, would be a significant relief for B2C (business to consumer) supplies by retailers. It would be good if the requirement of mentioning harmonised system of nomenclature (HSN) code is also dispensed with in such cases," mentioned Pratik Jain, indirect tax chief, PwC.
Relief for retailers as GST invoicing norms eased
![Relief for retailers as GST invoicing norms eased]()
Reviewed by Kailash
on
October 25, 2017
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