Reverse Charge Mechanism under GST in India – A Guide with Example

What is Reverse Charge Mechanism under GST?

In normal situations, the GST tax is paid by the supplier of goods and services, which is ultimately borne by the end consumer.

In Reverse Charge mechanism, the tax is paid by the receiver of goods, instead of the supplier, i.e. the tax liability gets reversed.

See the GST Reverse Charge with the example below.

Arun is a supplier who supplies goods to Vikas. In the normal system, Arun will be liable to pay the tax to the government on the supply made. Vikas will only have to pay the cost of goods to Arun, which may also include the tax amount (As Arun is liable to charge tax from its customers). Read More

August 15, 2017February 15, 2019

What is a Bill of Supply and How is it Different from Tax Invoice in GST?

A bill of supply is another important document under the GST compliant tax regime. In this article, we will discuss the importance of a bill of supply, why it is used? and most important – Bill of supply format.

What is a Bill of Supply in GST?

As you probably already know, a GST invoice is issued by the supplier for the supply of items on which GST is applicable and tax details are required to be mentioned in the invoice. A bill of supply is a commercial document issued by the supplier to the recipient on the supply of goods where GST is not applicable (not charged). It does not contain any tax information. Read More

August 14, 2017October 31, 2019

Income Taxes for Freelancers – A Guide To Calculate Tax Amount with Example

Mobile app developers (both freelance and full-time) are also liable to pay taxes on their total income from the following sources. For this article, we will take the example of Ankush, who is a freelance app developer to understand the income tax for freelancers.

Calculating Taxable Income

Income from Salaries: Developers who are also working full-time for an employer, are required to mention their annual salary and other similar earnings for the purpose of the tax. Let’s assume that Ankush’s last month salary Rs. 50,000 was deposited into his account before he left his full-time job. Read More

August 11, 2017March 30, 2018

Advance Receipt and Refund Voucher Format Under GST

GST Receipt Voucher is a formal document that has to be issued by a registered taxpayer as an evidence for advance payment received against the supply of goods and/or services. It is mandatory for a GST registered person to produce a Receipt Voucher when he receives advance payment from his customer. The receipt voucher should only be issued in a prespecified format as mentioned below. The registered supplier is also required to pay GST on the advance payment received. Read More

August 10, 2017September 30, 2019

GST Help Desk Number, Email ID, Mobile App and Office Address

It is natural for people to have questions regarding the new tax system. To get the support what they needed: “GST Help Desk”

The Goods & Service Tax (GST) was launched in India on July 1, 2017, with the aim to implement a one tax system throughout the country to remove the cascading effect generated by indirect taxes.

What is GST Helpline?

While various vendors, manufacturer, businessmen and providers are studying the new Goods and Services Tax (GST) System, many government offices have opened multiple windows to solve their query. The regime has opened multiple windows of correspondence to deliver the questions related to GST, the new indirect tax administration that rollout on July 1, 2017. Read More

August 9, 2017November 25, 2019

GST Payment Due Dates, Rules and Interest on Late Payment

All the registered taxpayers are required to make the payment of their taxes on GST Portal latest by the 20th day of next month for a particular tax period.

Taxpayers registered under composition scheme will have to pay GST only once every quarter, latest by 18th day of next month of a particular quarter.

GST Payment Due Date for General & Composition Scheme Taxpayers

GST Tax Payment due date (normal taxpayer): 20th Day of the Next Month
GST Tax Payment due date (composition scheme taxpayer): 18th Day of the Next Month of Quarter

Payment of Tax under GST

There is the provision of three different accounts (ledgers) for every registered taxpayer to make and maintain GST payments. Read More

August 4, 2017August 26, 2019

GST Tax Invoice Format India – Everything You Need to Know

The rollout of GST in 2017 will necessitate change to the invoice format. An invoice become a basic document for recording the sale/purchase in books of account. And it is prepared under a sale transaction. A registered person must issue a tax invoice before, or at the time of removal of goods for supply to the recipient. GST Tax invoice prepared based on the guidelines of GST Law. Read More