The government has made a collection of whooping 10.12 Lakh Crores in the FY 2020-21 amidst the pandemic situation in India.

However, there has also been many fraudulent cases reported for incorrect claiming of Input Tax Credit under GST, fake invoices and many more. The primary thing to look at here is that many professional are indulged in these tax scams ranging from Chartered Accountants to lawyers to even tax advisors.

It has become necessary to verify the person you are getting in business with.

GST number online verification is the most primary task that the taxpayer should do to identify a genuine taxpayer and a fraudulent or dummy supplier.

In this short article, we will be discussing some steps you can take to verify the genuineness of your suppliers.

Verify GST supplier by details on tax-invoice

The preliminary investigation that any responsible taxpayer should consider is to verify the GST details mentioned by the supplier on the tax invoice.

If the tax invoice from your supplier misses any of the following mandatory fields, then it should be an alarming sign for you that the tax invoice is fake:

• Name, address and GSTIN of the supplier;
• Tax Invoice number;
• Date of issue;
• Name, address of the business and GSTIN of the recipient;
• Shipping & billing address;
• Place of supply;
• HSN code or SAC code;
• Items details like-
  • Description of goods & services
  • Quantity of the goods sold
  • Standard unit of measure (Kg, tons, litre)
  • The aggregate value of supplied goods or services

• The taxable value of the supply of goods/ services;
• Tax rates & tax amounts properly segregated (CGST, SGST, IGST or CESS);
• Signature of the supplier.

Every recipient should check these details as the first step of the preliminary investigation in the best of his interests.

If discrepancies are found in the details, you should immediately contact the supplier and ask for an explanation. If it’s a genuine mistake, insist he rectifies it as soon as possible.

But, if the supplier tries to hide things and give you vague answers, then it is better to blacklist that supplier from further transactions.

If everything on the invoice looks well & good, you should proceed with some other checks as discussed below.

GST Verification online via GSTN

GSTIN of the supplier should be verified online via the GSTN network.

Following are some of the essential details about GSTIN and the process to verify your supplier’s GSTN.

• GSTIN is the acronym for ‘Goods and Services Tax Identification Number.’
• GSTIN is the 15 digits alphanumeric number issued at the time of GST registration to every taxpayer.
• The format of the GSTIN number is explained below:

To understand the meaning of each value, see the given table below:

If any discrepancy is found in the GSTIN number should raise the flag that this supplier is not a genuine one, and you should immediately stop all the transactions with that supplier.

Tax experts advise the taxpayers to use the automated GST filing software so that the defaulting suppliers can automatically be notified.

This helps you in claiming 100% Input Tax Credit under GST.

GST verification online via GST portal

There are two ways to verify your supplier on the GST portal:

1. Using GSTIN or UIN of the concerned supplier

Step 1: Log on to the GST Portal, and navigate to Home >> Search Taxpayer >> Search by GSTIN/UIN.

Provide the GSTIN of the supplier in the highlighted box.

You’ll get the results as follows after hitting ‘Search.’

2. With PAN details of the supplier

If a supplier is new to the GST structure, it is possible that he may not have received the GSTIN or UIN yet.

In this case, the GST portal allows you to check the credibility of your supplier using his PAN card details on the GST portal.

Step 1:  Visit the GST portal i.e. https://www.gst.gov.in/. >> Search Taxpayer >> Search by PAN

With this facility, you can access the supplier details corresponding to the PAN card details provided.

To Summarize

This article has provided you with some primitive measures that you can take to identify genuine suppliers and fake suppliers.

Suppose you are using any GST filing software like GSTHero. In that case, you will have no worries regarding the GST compliances or getting into any fraudulent transactions with a sketchy supplier.

However, at a primitive stage, every taxpayer must follow the steps mentioned in this article so that you can prevent the mishap way before it occurs.

Getting into a fraudulent transaction can have profound tax implications leading to civil proceedings and even cancellation of your GST registration.

So it is always good to be cautious and alert about the compliances and changing rule of the GST.

Stay updated; stay ahead.

The post GST Number Verification Online | Steps To Identify Genuine & Fraudulent Suppliers appeared first on Startagist.

GSTR-3B should be submitted by all those businesses liable to file the monthly returns of GSTR-1 or GSTR-3.

Taxpayers can easily file their GSTR-3B online through the GSTN portal.

This short article will discuss the GSTR-3B filing due dates and discuss some of the most common errors that taxpayers make while filing their GSTR-3B return.

GSTR-3B due dates

Common mistakes while GSTR-3B filing

Rectification of GSTR-3B is not possible under GST.

Hence, it is essential that the taxable person needs to file all the returns with utmost accuracy.

General mistakes that the taxpayers make while GSTR-3B are listed hereunder-

1. Delayed or non-filing pf GSTR-3B returns before the due date.

• This is the fundamental mistake that the taxpayers make, which applies to all the type of GST returns.
• The taxpayers should file their GSTR-3B returns well before the due date for their existing filing category.
• The GSTR-3B due date for the taxpayers opting for quarterly filing is different than those opting for monthly filing.
• It is advised that the on-time or beforehand filing of GSTR-3B under GST should be taken seriously to avoid the penalties afterwards.
•  With the timely filing of GSTR-3B return or any other GST return for that matter, the taxable person can easily avoid payment of GSTR-3B late fee as well as interest.

2. Non-filing of GSTR-3B form for ‘NIL’ returns

• There has always been a misconception amongst the taxpayers around the NIL return filing.
• Taxpayers assume that there is no need to file the return for that tax period when there are no transactions for a particular month or quarter (i.e., no inward supply, no outward supply and no input tax credit).
• However, this is NOT TRUE.  It should be noted with due diligence that NIL return filing is made MANDATORY under GST.
• Failure to file a NIL return in Form GSTR-3B results in late fees on a per-day basis until the NIL return is not furnished.
• The Government has introduced NIL return filing via SMS to 14409 to ease the taxpayer’s efforts further and encourage him to file the NIIL returns in his GSTR-3B form.

3. Clerical mistakes while GSTR-3B filing

• While filing GSTR-3B returns under GST, the taxpayer should carefully mention the tax amount; the Input Tax Credit  undr GSTclaimed and amounts of the outward & inward supplies.
• Rectification of GSTR-3B is NOT ALLOWED once the return is filed. Hence, the taxpayers should furnish the data with utmost accuracy and diligence.
• Clerical mistakes are a big NO while filing your GSTR-3B returns. Hence, it would be best to use an automated GST filing software for all your GST returns filing process.

4. Not mentioning the Debit notes & Credit notes details

• This is a particular mistake that we would like to focus your attention on.
• Furnishing correct outward supplies is an essential part of GSTR-3B filing.
• However, many a time, the details about the debit notes/ credit notes issued during the tax period are left out.

• As shown in the screenshot above, taxpayers need to furnish their credit & debit note details in column-a of Table 3.1 of the GSTR-3B form.

5. Incorrect furnishing of export figures in GSTR-3B

• Table 3.1 of the GSTR-3B form covers the details of outward and inward supplies as shown below:
• Column 3.1 (b) & column 3.1(c) will carry these details of the export figures.

• The values of exports and the value of supplies to Special Economic Zones are supposed to be reflected in column 3.1(c) off the GSTR-3B form.
• Furnishing incorrect details can take a toll on your uninterrupted Input Tax Credit claim under GST.

6. Furnishing details of Input Tax Credit for normal purchases

• GSTR-3B form is a comprehensive document where you need to furnish every detail for a particular tax period.
• GST Input Tax Credit claimed in that tax period must also be mentioned in the GSTR-3B form.
•  Table 4 of the GSTR-3B form comprises the columns where you have to furnish your Input Tax Credit details.

• Table 4 of the GSTR-3B, column A gives the classification of available Input Tax Credit into five types.
• However, there is no separate classification in column A of Table 4 for the Input Tax Credit available against the ‘Normal Purchases’.
• The taxpayers often miss adding the details about their Input Tax Credit on ‘Normal Purchases’ due to the absence of the specific column.
• The taxpayers should note that they should add the ITC details on ‘Normal Purchases’ in the ‘All Other ITC‘ section in column A.
• Interestingly, many taxpayers either omit to add these details in GSTR-3B or add them incorrectly in other sections between one & four.

Taxpayers should be very keen when they furnish the details in their GSTR-3B form under GST.

As mentioned earlier, it is not possible to edit the GSTR-3B form once it is filed. SO, it is better to take precautionary measures for filing accurate details rather than dealing with the further tax implications.

Tax advisors and GST experts have time and again suggested the taxpayers use an automated solution for all their GST returns filing tasks. This reduces the chances of errors and helps you be accurate and claim maximum Input Tax Credit under GST.

To sum it up

GSTR-3B form under GST is an essential document in the GST return filing process of the entire financial year.

Hence, utmost diligence should be observed to eliminate possible mistakes during the GSTR-3B filing online.

Taxpayers can use an automated solution like GSTHero to completely automate their GST return filing experience and eliminate possible human errors.

Follow the tips given in the article to help you minimize human errors while filing the GSTR-3B returns in GST.

Stay updated; stay ahead!

The post GSTR-3B Filing Under GST | Steps To Avoid Mistakes During GSTR-3B Filing Online appeared first on Startagist.

With the aggregate turnover coming down to 50 Cr. the number of taxpayers under the e-Invoicing system has increased drastically. The government intends to bring this aggregate turnover bar much lower so that it could engage more & more businesses under e-Invoicing.

Businesses need not be afraid of the e-Invoicing structure, on the contrary, the businesses should look forward to this step as an effective measure to bring transparency to the taxation structure.

In this article, we shall discuss some of the checklist points to be prepared for the GSTR-1 filing after you have generated your e-Invoices.

Changes in the post the e-Invoicing under GST world

e-Invoicing under GST has changed the invoice generation process.

It would be more correct if we say that, the e-Invoicing system has ‘streamlined the invoice generation by adding a government authentication factor to it.

I’ll explain the major changes that have happened post e-Invoicing under GST  in the table given below:

Fields Impacted in GSTR-1 after e-Invoicing under GST

1. Auto-population from e-Invoice data

e-Invoicing under GST has one of the benefits that the fields in the e-Invoice generated will get auto-populated in the GSTR-1 of the taxpayer.

There are 4 sections, in the taxpayer’s GSTR-1 which will get auto-populated from your e-Invoice.

1. B2B
2. CDNR
3. EXP
4. CDNUR (related to export invoices)

Thus, GSTR-1 will now be easier to file as the major fields will be auto-populated right from your e-Invoice generation data.

However, it is necessary to be careful as any differences found in GSTR-1 & the e-Invoice generation can lead to a tax complication and further probe will be given to the concerned tax officer.

Manually checking every entry can be cumbersome and also introduce a human error in the GSTR-1 draft.

Taking assistance of an GSTR-2A reconciliation tool can help you reduce your efforts and give you a detailed report of all the missing values.

2. Nil / Exempted & Non-GST Supplies

• On the sale of nil, exempted and Non-GST supplies, a ‘Bill of Supply’ is issued.
• It is important to note that, ‘Bill of Supply’ is NOT included under the e-Invoicing system.
• According to the rules of e-Invoicing under GST, separate documents to be issued for taxable supplies and Nil, exempt and non-GST supplies when there is a transaction between two registered parties.
• Tax invoice is mandatory for all the taxable supplies whereas, Bill of Supply is required for all the nil rated, exempt & non-GST supplies of goods or services.

• To make GSTR-1 auto-population more simple keep the following things in mind while  e-Invoice generation:
  • Generate IRN for regular tax invoices, credit notes & debit notes, only. Do not send ‘Bill of Supply’ for IRN generation as this will further complicate the GSTR-1 auto-population.
  • If a transaction involves supplies of taxable as well as nil rated or exempted supplies, there should be two sets of documents supporting this claim.
  • It is important to note that, all the invoices sent to the IRP portal by the taxpayer will be used by the GSTN to auto-populate your GSTR-1.

3. B2C Transactions

• B2C transactions are NOT eligible for an e-Invoice generation.
• Hence, these B2C invoices have to be uploaded in the GSTR-1 by the taxpayer as these will NOT get auto-populated.

B2C invoices can be classified into two types as shown in the table:

The reporting of B2C transactions remains unchanged in GSTR-1 post-e-Invoicing under GST.

NOTE:  One compliance requirement is added for the companies with an annual aggregate turnover above 500 Cr.

This makes self-generated & dynamic QR code generation, mandatory for all B2C transactions.

This step is taken towards encouraging digital payments in the country.

Note 2: Businesses can use eInvoice software to differentiate between B2B and B2C transaction when you are generating e-Invoices in bulk.

4. Advances- Tax Paid

• These should be uploaded by the taxpayer in his GSTR-1.
• GST applies on the advances received from the customer & also on the subsequent invoice issued on those invoices.
• Taxpayers tend to adjust the invoices issued against advances with the tax they have already paid.
• In the GSTR-1, there are 2 different columns to report these transactions.
  • Advances Received
  • Advances Received Adjusted
• Transactions for these advances received & adjusted are reported at an aggregate level i.e. Taxable values and tax values aggregated at Place of Supply (PoS) and tax rate level.

According to the previous method of GSTR-1 reporting, this flow remains unchanged for reporting the invoices against the advances from the customers.

In a Nutshell

GSTR-1 filing has become easier post-e-Invoice introduction.

GSTR-1 is an important document as the Input Tax Credit of the recipient is dependent on a Supplier’s GSTR-1.

However, the supplier must file his GSTR-1 on time and also more accurately.

While furnishing your transactions for IRN generation you should take utmost care that you provide accurate data without leaving any gaps between the e-Invoice data and the auto-populated fields in the GSTR-1.

Tax experts suggest using an eInvoice Solution for matching the entries and making the reconciliation a true success by removing all the gaps.

The post How To Prepare Your Business For GSTR-1 Filing Post e-Invoicing Under GST? appeared first on Startagist.

Fake invoice generation and then claiming ineligible ITC has been a serious issue and thus causing loss of revenue to the Government.

Thus, claiming Input Tax Credit in a proper way is necessary to be compliant with the GST laws.

We will discuss the role of 4 major forms in claiming Input Tax Credit:

1. GSTR-1
2. GSTR-2A
3. GSTR-2B
4. GSTR-3B

This article shall answer a basic query amongst the taxpayers regarding which GST return form should be referred for claiming eligible Input Tax Credit

What is GSTR-2A, GSTR-2B & GSTR-3B in GST?

First thing first, let me introduce you to these 4 GST return filing forms in short.

1. GSTR-1

• This form contains all the invoice details of all the outward sales a Supplier has made.
• Due date to file this return – 11^th of the succeeding month.
• GSTR-1 is to be filed monthly or quarterly as per the scheme chosen by the taxpayer.
• Filing of GSTR-1 is a MUST for all the registered taxpayers except few exceptions like Composition Dealers, Input Service Distributors, etc.

2. GSTR-2A

• GSTR-2A is an auto-generated draft, which gets generated every month.
• GSTR-2A is a purchase-related tax return & is generated by the GST portal for every registered business.
• GSTR-2A of the Recipient is generated based on the GSTR-1, GSTR-5, GSTR-6, GSTR-7 & GSTR-8 of the Supplier.

3. GSTR-2B

• GSTR-2B is generated by the recipient every month as per the GSTR-1 filed by his supplier.
• GSTR-2B can be considered as a standard document for finding your eligible ITC.
• GSTR-2B can be generated on the 12^th of every month.
• GSTR-2B remains static, unlike the GSTR-2A.
• Applicable to normal taxpayers, casual taxpayers as well as the Special Economic Zones (SEZs).

4. GSTR-3B

• GSTR-3B is a consolidated summary of all the outward as well as inward supplies of any registered taxpayer
• Businesses with an annual aggregate turnover of less than 5 Crore can file this GSTR-3B quarterly.
• GSTR-3B should be filled by all the registered taxpayers who are eligible to file monthly GSTR-1, GSTR-2 & GSTR-3.

As we know the basic uses of these forms, we can now find their interlinking and also determine the use of these forms in claiming Input Tax Credit under GST.

Understanding Rule 36 (4) of CGST Act, 2017

The verbatim of this rule is read as follows,

Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed 10 % of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.

Do not worry; we will simplify this rule with the help of an example.

Let’s look at an example:

SUPPLIER	RECIPIENT
·         Suppose, Appu the Supplier sells some goods of 1, 00,000. ·         He collects 18% GST from the Recipient. ·         Total amount collected= 1,18,000 ·         He files this detail of collecting 18,000 in his GSTR-1.	·         As the Supplier correctly filed his GSTR-1, ·         Raju the recipient will get the Input Tax Credit of Rs 18,000. ·          These ITC details of 18,000 shall get auto-populated in his GSTR-2A & GSTR-2B.

Now, Raju, the Recipient’s GSTR-2A & GSTR-2B will get auto-populated based on the Supplier’s GSTR-1.

So the Recipient now can avail an Input Tax Credit under GST based on his GSTR-2A & GSTR-2B.

Suppose, Raju has one more Supplier ‘GoGo’

SUPPLIER	RECIPIENT
·         Service of Rs.50,000 provided to the Recipient. ·         12 % GST collected from the Recipient. = 6,000 ·         Total amount collected = INR 56,000 ·         But, he has never filed GSTR-1 for this transaction.	·         Supplier Gogo does not file his GSTR-1 for this transaction; hence the ITC details will NOT get reflected in the recipients GSTR-2A & GSTR–2B. ·         The recipient will NOT be able to avail of this ITC of INR 6,000.

From this example, we can make certain conclusions as follows:

1. Eligible ITC of Raju as per his books of Accounts:

• Eligible ITC as per books = 18,000 + 6,000 = ₹ 24,000

What is the ITC available as per GSTR-2A & GSTR-2B of the Recipient?

• ₹ 18,000 only.
• As the Supplier GoGo has NOT filed his GSTR-1, the same data is NOT reflected in the GSTR-2A & GSTR-2B of the Recipient Raju.
• Hence, his eligible ITC becomes only ₹ 18,000 & NOT  ₹ 24,000

Role of GSTR-3B:

Now, the role of GSTR-3B comes into the picture.

Now, the question is how is the Recipient Raju going to avail ITC in his GSTR-3B?

In this case, Rule 36(4) of the CGST Act, 2017 tells that,

The maximum eligible ITC for the Recipient will be calculated as:

Eligible ITC auto-populated in GSTR-2B + 5% of eligible ITC

From the example, we can calculate it as follows:

Maximum Eligible ITC =   ₹ 18,000 + 5% of 18,000 = 18,000 + 900 = ₹18,900

Taxpayer’s Dilemma: Should I refer GSTR-2A or GSTR-2B?

Many taxpayers are still unaware of some important facts about availing the maximum eligible Input Tax Credit.

Should I refer to my GSTR-2A or GSTR-2B for claiming Input Tax Credit, this is the most common question among the taxpayers.

Let’s continue with our previous example:

In short, When a Supplier delays his filing of GSTR-1, the following 2 things happen:

1. The data of this transaction will NOT reflect in the GSTR-2B of the Recipient.
2. Although the Supplier has filed his GSTR-1 returns AFTER the due date, hence, these transaction details will REFLECT into the GSTR-2A of the Recipient.

Now, with GSTR-2A you can claim the ITC of ₹ 84,000.

But, with GSTR-2B you can NOT claim the ITC of ₹ 84,000.

Now, the taxpayer is confused! Whether he should claim this ITC in GSTR-3B as per his GSTR-2A in the current month OR Input Tax Credit as per his GSTR-2B in the next month?

CBIC Clarifies

In the light of clearing this confusion, CBIC has recently cleared that in this case,

The CBIC has clarified that the Input Tax Credit MUST BE AVAILED as per the invoice details available in GSTR-2B.

The invoice details in the GSTR-2A shall not be used to avail of the ITC.

From this, we can now infer that the invoice details in your GSTR-2B shall prevail for claiming your eligible Input Tax Credit.

In Conclusion

We understood that the invoice details in your GSTR-2B should be considered as final when you are claiming Input Tax Credit.

Any discrepancies found later in the ITC availing process may attract serious implications and can also go up to suspension of your GST Registration.

Properly claiming Input Tax Credit is very important.

Failure in doing so may result in the blocking of your working capital.

Informing your GST defaulting Suppliers is a very primary task every taxpayer should do to keep the flow of the working capital in proper order.

Using an GSTR-2A Reconciliation Software can help you in claiming up to 100% of your eligible Input tax credit. This will make your task much easier and will save you a lot of time & efforts.

The post Input Tax Credit under GST: Role of GSTR-2A & GSTR-2B in Claiming ITC appeared first on Startagist.

The introduction of e-Invoicing has been a successful implementation in the GST structure as it has helped in benefiting the taxpayers in multiple ways.

e-Invoicing shall apply to all the B2B transactions & documents like Credit Notes, Debit Notes, RCM Invoices, Export & SEZ Invoices, B2B Invoices & B2G Invoices.

In this brief article, we shall specifically focus on the impact of e-Invoices on the Special Economic Zones & certain specific provisions made for the transactions carried out between the business entities located in the SEZs.

Stick till the end to learn more…

What is a Special Economic Zone?

Special Economic Zones (SEZ), are the geographical regions of the country that are classified by the government as special economic or trade zones.

These regions enjoy very simple tax & legal compliance regulations.

These regions enjoy certain privileges compared to the other business centers to develop the region by encouraging more investment which in turn will lead to more employment creation.

The region which is marked as a Special Economic Zone (SEZ) is considered as a foreign territory for trade & operation purposes. From this fact, we can understand that, any supplies made FROM or made TO the business located in Special Economic Zone, is considered as an inter–state supply and Integrated GST (IGST) is levied upon it.

Understanding Exports & Imports in SEZ

As the SEZ units are considered as foreign territories, the supplies made TO & FROM these units are termed as IMPORTS & EXPORTS respectively.

Before moving ahead with the applicability of e-Invoicing for Special Economic Zones, it is very important to know certain terminologies that we will be using in the article ahead.

What does EXPORT mean in SEZ?

• Exporting goods or services outside India from an SEZ unit.
• Supplying of goods or services from one developer in SEZ to another unit of the same SEZ or different SEZ within the country.

What does IMPORT mean in SEZ?

• Importing of goods or services from a region outside India, by any mode of transport.
• Receiving of goods or services from one developer in SEZ to another unit of the same SEZ or different SEZ within the country.

Working of e-Invoicing in SEZ

As mentioned in the above segment, we know that all the supplies made to the SEZ are considered as the Exports/Imports.

Hence, the e-Invoice Generation will apply to all the supplies MADE TO the SEZ units.

However, the e-Invoice generation will not apply to the supplies MADE FROM the SEZ units.

• e-Invoicing on IMPORTS to SEZ – YES.
• e-Invoicing on EXPORTS from SEZ –NO.

A. Supplies made TO SEZ units.

According to the current eligibility criteria of the e-Invoicing system, the businesses with aggregate turnover above 500 Crore are mandated to generate the e-Invoices by furnishing all the invoice details on the Invoice Registration Portal (IRP).

If your business falls under this category and you are making a supply to a business located in the SEZ, then it will be mandatory for the supplier to create the invoices of such supplies in the specified Schema & upload them to the IRP for unique Invoice Reference Number (IRN) & QR code generation.

This has been mandatory for all the businesses that are eligible for e-Invoicing and are supplying goods or services to the SEZ unit. Also, these businesses must generate the e-Invoice with a unique IRN from the IRP portal.

GST e-Invoicing Covers- Supplies to SEZ (with or without GST payment), Exports (with or without GST payment), Deemed Exports (with or without GST payment).

B. Supplies Made FROM SEZ units.

About the GST Notification (Central Tax) No. 61/2020 dated 30^th July 2020, all SEZ units/developers are EXEMPTED from generating e-Invoices for their supplies.

If your business is located in the Special Economic Zone and you fall in the aggregate turnover bracket eligible for e-Invoicing despite it you will not be mandated by the government for the generation of IRNs for any of your invoices.

E v-Invoices will not be required to be generated for the supplies received from the Special Economic Zones.

However, as per a recent notification, e-Invoicing will apply to SEZ in special cases, it is applicable if they have specified turnover and fulfill other conditions for an e-Invoice generation.

Special Case:

There are some instances where e-Invoicing applies to the businesses in SEZs.

To understand this better, let me give you an example.

Consider a business entity ‘Action Software Pvt. Ltd.’ This business is located in the SEZ ‘Business Hub’ in Pune city.

Now consider that the SEZ unit, SEZ Developer, and the regular Domestic Tariff Area (DTA) are registered under the same legal entity.

This means that they have the same ‘Permanent Account Number’ (PAN).

Also, the business entity has an aggregate turnover that exceeds 500 Crore.

In this case, the SEZ unit will be exempted from generating the e-Invoice but the SEZ Developer and the DTA will be required to carry out e-Invoicing.

Note:

The recipients of the goods or services are required to identify SEZ Units & SEZ developers as separate entities, considering that they display unique traits & IRN requirements.

e-Invoicing under GST & its Impacts on GST Refunds

When the business entity lies in the Special Economic Zone, the regulations related to e-Invoicing are different as discussed in the above sections.

The same holds for the GST Refunds.

Exports & SEZ transactions do attract refunds & with e-Invoicing impacting these transactions, it will also have an impact on the refunds.

The businesses which are eligible and fall under the prescribed turnover bracket have to furnish the data of the invoices, credit notes & debit notes on the IRP.

These invoices should be related to the exports of the SEZs.

The businesses which are liable to e-Invoice generation of Export & SEZ Invoices must report their Invoices to the IRP & generate IRN for their invoices, credit notes & debit notes.

The IRNs corresponding to these e-Invoices will be helpful for the businesses while claiming the refunds.

Hence, it is more likely that the Government will process the refund request sooner & in real-time. As the e-Invoices generated on the IRP portal are authenticated by the Government and are also accurate if the reconciliation of invoices is done before uploading.

Additionally, IRNs will be helpful for businesses while claiming the Refunds as the e-Invoices are accurate, validated & authentic documents.

So the chances are that the Government will process the refund request sooner & in real-time as the invoices are also created accurately & in real-time.

In Conclusion

In this article, we have discussed the specific provisions made concerning the e-Invoicing system for the Special Economic Zones (SEZs).

e-Invoicing is one of the important features added to the GST structure and it has been nothing but success since its inception.

e-Invoicing has multiple benefits including the claiming of maximum Input Tax Credit.

Hence, proper and accurate uploading of the invoice data on the IRP is very important.

You can use some e-Invoicing Software which will allow you seamless e-Invoice generation with a fully automated process and no human intervention.

This will reduce the probable errors which can be introduced when a business opts for manual uploading of all the invoices on the IRP to generate corresponding IRNs.

It is always better to take measures first than to suffer the heavy consequences later.

Until the next time…

The post e-Invoice Generation| Impact of e-Invoicing on Special Economic Zones appeared first on Startagist.