Moving to GST: Can I Avail Input Credit on Closing Stock?

Transition provisions in GST have undergone significant changes in the Revised Draft Model GST Law published on 26th November 2016. This post has been updated with changes in the revised draft law.

On the date of transitioning to GST, broadly there will be business who fall under any of the following categories:

1. Businesses not liable to be registered under the current law, but are liable for registration under GST
2. Business which are engaged in the manufacture or sale of exempted goods or services
3. First stage dealer or a second stage dealer or a registered importer

जीएसटी कानून के संशोधित ड्राफ्ट मॉडल की मुख्य विशेषताएं

जीएसटी कानून का संशोधित मसौदा मॉडल 26 नवंबर 2016 को उपलब्ध कराया गया था, जीएसटी कानून के संशोधित मसौदे मॉडल पर किन चीज़ो पे प्रमुख प्रकाश डाला गया इसे हम निम्न वर्गों में वर्गीकृत कर रहे हैं:

• क्या परिवर्तन किया गया हैं?

• क्या नए अतिरिक्त चीज़े डाली गयी हैं?

• किन चीज़ो का बहिष्करण किया हैं?

क्या परिवर्तन किया गया  हैं?

Highlights of the Revised Draft Model GST Law

The revised draft model GST law was made available on 26th November, 2016. Key highlights of the revised Draft Model GST Law are categorized into the following sections:

• What are the changes?

• What are the new additions?

• What are the exclusions?

All you Need to Know about Invoicing under GST

Invoicing is a crucial aspect of tax compliance for every business. It is essential to be aware of the rules of invoicing under GST. Let us understand these in detail.

Invoicing in the current tax regimes

In the current tax regimes, two types of invoices are issued:

1. Tax invoice – This is issued to registered dealers, and can be used to claim tax credit. Sample formats of the two main types of tax invoice in the current tax regime, the Rule 11 Excise invoice and tax invoice are shown below. 

2. Retail or commercial invoice – This is issued to an unregistered dealer or retail customer, and no tax credit can be claimed on this invoice. Sample format of a retail invoice in the current tax regime is shown below.