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  • Release of Confiscated Goods/Vehicle by High Court Upon Provision of Penalty Deposit or Bank Guarantee

    Judicial and Legal Details

    Honorable Judges N.V. Anjaria & Devan M. Desai presiding. Bhaumik Dholariya representing the Petitioner. Raj Tanna representing the Respondent.

    Case Background

    In this case, the petitioner filed an interim prayer seeking the release of goods and conveyance. It was argued that while the goods were being transported, the GST authorities intervened and utilized their powers under section 129 of the CGST Act, 2017 (the Act) to seize both the goods and the conveyance. Subsequently, the authorities also invoked powers under section 130 of the Act and issued a confiscation order.

    The petitioner asserted that the authorities took possession of the goods in transit under Section 129 of the Act. It was argued that Section 129, starting with a nonobstante clause, is an independent provision separate from Section 130. Hence, the authorities’ action of transitioning to Section 130 and issuing a notice thereunder, without granting the benefit of releasing the goods under Section 129, was deemed to be without jurisdiction.

    The decision of the High Court

    The Honorable High Court observed that in similar cases, this Court has already granted interim relief for the release of goods and conveyance, albeit subject to certain conditions. Consequently, the Court held that the matter will be scheduled for a hearing. However, as an interim measure, the goods and the vehicle shall be released by the authorities upon the payment of a penalty or the provision of a bank guarantee. This ruling ensures compliance with the conditions imposed by the Court in previous cases.

  • Key Highlights from the 43rd Meeting of the Goods and Services Tax (GST) Council

    In the hallowed corridors of governance, the 43rd GST Council assembly convened as a seamless extension of its preceding 42nd counterpart on the auspicious day of October 12th, 2020. This virtual congregation was meticulously orchestrated by none other than the esteemed Finance Minister, Smt. Nirmala Sitharaman, who adroitly presided over the proceedings. In the esteemed company of Shri. Anurag Thakur, the Union Minister of State for Finance & Corporate Affairs, as well as a gathering of Finance Ministers hailing from various States and Union Territories, this rendezvous also attracted the presence of distinguished senior officials from both the Union Government and States. As befitting the gravity of this occasion, the foremost item on the agenda was the much-anticipated discussion surrounding the singular subject of paramount importance—item no. 9A.

    Here are the key highlights of the 43rd GST Council meeting, presented in a professional style inspired by Ozan Varol:

    1. The 43rd GST Council meeting concluded without achieving unanimity on the borrowing matter, thereby failing to reach a conclusive decision. Consequently, states are permitted to proceed with borrowing funds based on the previously provided options.
    2. In line with the announcement made during the 42nd GST Council meeting, the imposition of compensation cess will extend beyond the initial 5-year period. However, the central government will be unable to secure funds through borrowing to cover the shortfall in compensation cess. Such an action would lead to an increase in the yield on G-sec bonds.
    3. The Finance Minister elucidated that the central government has already issued a borrowing calendar, and surpassing this predetermined framework to secure additional funds would result in an elevation of G-Sec interest rates. Consequently, borrowing costs would rise for both states and the private sector, as G-Sec rates serve as a benchmark for all other borrowing endeavors.

    “In the concluding press conference, Finance Minister Nirmala Sitharaman revealed that a consensus had not been reached by the conclusion of the meeting. Sitharaman noted that the majority of states had favored option 1, wherein states can access up to Rs 1.1 lakh crore through a specialized channel facilitated by the RBI. On the other hand, some states expressed the belief that a consensus should be achieved.

    Sitharaman acknowledged that several members engaged in discussions about the Council’s authority to restrict states from pursuing independent borrowing endeavors. With regards to this, she questioned, ‘While I respect the absence of unanimity, can one Council member prevent another state from pursuing its desired course of action?’

    The finance minister clarified her willingness to engage with states that are prepared to embrace option 1 and secure financial resources. She emphasized that the absence of unanimous agreement should not impede states in urgent need of funds from pursuing their borrowing strategies. Sitharaman stated, ‘I believe no entity can restrict the actions of individual states. Various perspectives were shared regarding why the central government cannot borrow, and appropriate responses were provided. The GST Council’s intention is not to hinder anyone,’ concluded the finance minister.”

  • Report: Government’s Crackdown on Tax Violators Uncovers 10,000 Instances of Fraudulent GST Registrations

    In a remarkable demonstration of collaborative efforts, tax enforcement authorities from both the central and state governments have taken swift and decisive action against tax offenders. Their vigilant crackdown has already yielded significant results, as an astounding number of over 10,000 fraudulent Goods and Services Tax (GST) registrations were unearthed during the inaugural week of their joint operation. As highlighted in a report by the esteemed Economic Times, the concerted campaign to combat deceitful invoices and illicit registrations commenced on May 15 and will persevere until July 15.

    In furtherance of the initiative, officials are meticulously validating addresses through in-person visits, prior to implementing any measures against any individual or organization.

    In numerous instances, the officials discovered the utilization of fraudulent rent agreements, property tax receipts, and electricity bills to obtain GST registration, as highlighted in the report. However, the precise extent of the counterfeit input tax credit received remains undetermined. According to an official cited in the report, “It is premature to provide specific figures at this point, but initial estimations suggest it exceeds ₹25,000 crore.”

    To counteract these deceptive practices, the GST Network (GSTN) is being employed to scrutinize fabricated addresses. GSTN equips central and state officials with data analysis and risk parameters, enabling them to identify cases warranting physical verification.

    The report acknowledges that the crackdown has garnered some criticism, particularly from small-scale enterprises that rely on co-working spaces. President Vinod Kumar of the Forum for Internet Retailers, Sellers, and Traders (FIRST) voiced concerns to ET, stating that GST officials are demanding physical records and the presence of employees and/or directors.

    To ensure enhanced compliance and cost benefits, online sellers often designate their business locations as their Chartered Accountant’s premises or co-working spaces. However, the aforementioned concern was dismissed by an official quoted in the ET report, assuring that authorities exercise thorough due diligence prior to taking any action.

  • Pine Labs The Emerging Force in Indian FinTech, but no IPO in the current situation says CEO Amrish Rau

    Pine Labs, a prominent player in the realm of digital payments, has now aligned itself with the emerging trend among technology enterprises to defer their initial public offerings (IPOs). In an exclusive interview with ET, Amrish Rau, the CEO of Pine Labs, firmly expressed his decision to withhold the planned IPO, citing the tumultuous state of global markets. With sagacious foresight, Rau asserts that the present juncture does not provide a conducive window for an IPO endeavor, a statement imbued with unwavering conviction.

    Unwavering in its financial fortitude, Pine Labs stands in a position of fiscal robustness, having already garnered a substantial influx of more than $1.1 billion. Rau confidently reaffirms the company’s steadfast stance to refrain from hastily pursuing an IPO, remarking that there is no urgency to embark on such a venture. The fiscal year 2023 concluded on a prosperous note for the company, boasting net revenues amounting to Rs 1600 crore and a commendable positive EBITDA. Such fiscal accomplishments reflect the company’s sound financial foundation, which Rau eloquently expounds upon.

    The annals of Pine Labs’ history are embellished with its association with Sequoia Capital and Mastercard, which have significantly bolstered its position in the payments domain. It is noteworthy that the unicorn, backed by these stalwart entities, has now shed light on its IPO strategies. The veil of secrecy shrouding its intentions was lifted when it submitted a confidential IPO filing worth $500 million to the US Securities and Exchange Commission in January 2022. Akin to a wise mariner, Pine Labs has steered its course with deliberation, postponing its listing plans as the global economic landscape took a somber turn.

    The visionary ethos governing Pine Labs’ course of action has been unequivocally articulated by Rau. Cognizant of the tempestuous nature of the financial realm, he opines that Pine Labs, akin to a ship of substantial worth, should not set sail in stormy waters. The prevailing sentiment is to await a propitious breeze and a favorable climate for the IPO. Rau’s leadership, culminating in his ascension to the CEO role in 2020, has steered the fintech group with prudence and circumspection.

    Amid the contemporary landscape where regulatory scrutiny has enveloped Indian fintech giants like Paytm and PayU, Pine Labs’ strategic decisions have been sagaciously calibrated. While the decision to shift its corporate domicile remains pending for the Singapore-domiciled Pine Labs, the determinants are poised to be rooted in pragmatic considerations. Rau astutely differentiates between the calculus of valuation and taxation and the overarching vision of global versus domestic market orientation. Such discerning insights are emblematic of Pine Labs’ judicious approach, poised to discern the optimal course of action for the company.

    The company’s choice of listing, whether on domestic or global bourses, is intrinsically linked to the epicenter of its revenue streams. A careful examination reveals that nearly 15% of Pine Labs’ revenues emanate from the expansive domains of global markets, continuing to serve as lucrative profit pools. The subtle interplay between revenue dynamics and market orientation is deftly explicated by Rau, further emphasizing Pine Labs’ strategic acumen.

    In the prevailing macroeconomic context, where many fintech entities have adopted a defensive posture, Pine Labs emerges as a beacon of assertive growth. With strategic acquisitions spanning the years 2021 to 2022, the company has demonstrated an unwavering commitment to expansion. Bolstering its endeavors, Pine Labs intends to introduce its gift card issuance service, a pivotal revenue source, alongside its payment installment stack and QR code payment services, to the geographies of the United States and Europe. Rau, with his characteristic clarity, elucidates the imminent establishment of sales outposts in these regions, envisaging a dedicated push for the company’s technology.

    Pine Labs’ global aspirations are underscored by its recent foray into the United Arab Emirates, building upon its presence in five Southeast Asian countries. Rau’s narrative hints at a future marked by calculated growth strategies and judicious market entries, a testament to Pine Labs’ evolutionary trajectory. The company’s proactive stance in considering additional acquisitions for expansion resonates as a testament to its pursuit of new horizons.

    In a landscape where peers are pursuing lending licenses foray into the credit domain, Rau remains steadfast in Pine Labs’ distinctive course. With an eloquent negation, he dismisses any immediate inclination toward procuring an NBFC license, underscoring the company’s focused agenda. The strategic direction steered by Rau speaks volumes about Pine Labs’ clarity of purpose and its unwavering commitment to its chosen trajectory.

    While Pine Labs’ acquisition-driven strategy has momentarily deferred its path to positive PAT, Rau unveils the strategic intent to rectify this course by the culmination of the ongoing fiscal year. His candid assertion underscores that Pine Labs’ EBITDA profitability, currently standing at an impressive 20%, is a harbinger of the company’s resolve. The interplay of acquisitions and organic growth manifests in Pine Labs’ upward revenue trajectory, with Rau attributing a substantial 7-8% of growth to acquisitions in the fiscal year 2023.

    As Pine Labs endeavors to diversify its revenue streams, it tactfully steps beyond the confines of the PoS business. The company’s revenue matrix is enlivened by robust lines of revenue from gift card issuances, installment payment services, and payment gateway operations. Rau, with sagacious foresight, forecasts the impending fiscal year to be marked by nuanced strategies, optimizing EBITDA growth while navigating the challenges that macroeconomic conditions present.

    Pine Labs’ narrative, though adorned with achievements and astute strategies, anticipates a phase of tempered growth in the fiscal year 2024. Rau’s forthright admission reflects the company’s maturity in understanding the cyclical nature of markets. Sacrificing low-margin revenues in favor of high-margin pursuits, Pine Labs is poised to steer its course with prudent financial stewardship.

    In culmination, Rau’s narrative weaves a tale of strategic prowess, grounded in a sagacious understanding of the financial realm. Pine Labs emerges not only as a fintech entity but as a deliberate navigator, charting its course amidst global market ebbs and flows. Amrish Rau, at the helm of Pine Labs, personifies a steward steering the company with acumen and resolve, embodying the spirit of prudent growth and strategic finesse.

  • GST Evasion Detection Surges to Rs 1.01 Lakh Crore in 2022-23

    Remarkable strides have been taken in curbing GST evasion, as revealed by a recent report highlighting the fiscal year of 2022-23. A substantial increase is evident, with tax officers successfully identifying instances of evasion amounting to over ₹1.01 lakh crore, marking a nearly twofold surge compared to the previous year.

    The Directorate General of GST Intelligence (DGGI) deserves commendation for its diligent efforts in the fiscal year preceding this one, where a significant recovery of ₹21,000 crore was accomplished. In a display of astute governance, the authorities managed to bridge the gap between tax evasion and enforcement, leading to this substantial reclamation.

    The approach to enhancing compliance has been comprehensive and technologically driven. By harnessing the power of data analytics and combining it with human intelligence, the government is actively targeting fraudulent activities. The results are evident in the impressive detection of evasion, amounting to ₹1,01,300 crore in the span of 2022-23. Out of this, a substantial sum of ₹21,000 crore has already been successfully retrieved, underlining the effectiveness of the measures in place.

    In juxtaposition, the investigative prowess of DGGI in the preceding year, 2021-22, is noteworthy. Detecting evasion worth over ₹54,000 crore and subsequently recouping more than ₹21,000 crore in taxes exhibits a consistent pattern of diligent work by the agency operating under the ambit of the Goods and Services Tax (GST) regime.

    The current fiscal year has witnessed a rise in the number of identified GST evasion cases, indicative of the ongoing commitment to eradicating such practices. The figures speak for themselves, with 2022-23 uncovering around 14,000 cases, an increase from the 12,574 cases in 2021-22 and 12,596 cases in 2020-21. This escalation further underscores the government’s resolve in tackling tax evasion head-on.

    Diving into the modus operandi employed by those attempting to evade taxes, several tactics have been observed. These include underreporting the value of taxable goods and services to lower tax payments, incorrectly availing exemption notifications, wrongfully claiming input tax credit, evading tax on the supply of taxable goods and services through clandestine removal, and exploiting the system by availing input tax credit based on invoices issued by fictitious entities.

    This vigorous response to tax evasion is not isolated but rather part of a broader timeline. The Finance Ministry’s recent response to the Lok Sabha revealed that GST evasion detected from July 2017 to February 2023 amounted to a substantial ₹3.08 lakh crore, an issue that has not gone unaddressed. Impressively, over ₹1.03 lakh crore of the evaded amount has been successfully recovered. Additionally, the authorities have demonstrated their commitment through legal actions, resulting in the arrest of 1,402 individuals over the last five and a half years until February 2023.

    The current drive against GST evasion serves as a testament to the efficacy of diligent tax enforcement, propelled by a blend of advanced technological tools and human acumen. It is a journey marked by continuous learning, adaptation, and steadfast commitment to ensuring a just and equitable tax system.

  • How to Choose the Right Credit Cards — A Practical Guide

    In today’s era, accessing finance has become incredibly effortless, largely due to the prevalence of credit. Credit cards and loans have become commonplace tools used by the majority of individuals to manage their expenses and financial needs. With the rapidly evolving credit landscape in India, there is now an array of credit options available. So, the question arises — how can you effectively select the credit product that suits you best?

    Amidst the diverse credit options tailored to different needs—be it purchasing gadgets, funding vacations, handling medical emergencies, and more—the initial step is to evaluate your financial situation. This assessment includes considering your income, expenditures, and current debts, which will help determine the additional credit you can responsibly access, and subsequently, the credit choices available to you. Borrowing within your means becomes paramount to evade the pitfalls of overwhelming debt.

    Navigating the Selection of the Right Credit Cards

    Credit cards, a prevalent form of credit in today’s world, offer significant advantages if utilized with prudence and responsibility. Operating as revolving lines of credit, these cards permit purchases up to a predetermined limit. Notably, they also feature rewards points and loyalty programs, which can translate into savings on various purchases. Furthermore, the absence of interest during the stipulated period, granted timely repayments are made, adds to the versatility credit cards provide.

    The crux of the matter is selecting a credit card that aligns seamlessly with your spending patterns. Many credit cards extend cashback and discounts across diverse categories such as groceries, dining, entertainment, and travel. Specific cards even target particular expense categories. For instance, if you are a frequent traveler, credit cards offering air miles or hotel booking discounts can significantly reduce travel-related expenses. Regardless of your choice, scrutinize the terms and conditions meticulously, particularly the fine print encompassing interest rates, annual fees, and penalties.

    Aiding the credit card selection process are online comparison tools that simplify the task by filtering cards based on your requirements and eligibility. While credit cards generally address short-term needs, loans, with their structured repayment plans, are better suited for long-term objectives such as purchasing a house or planning for retirement.

    Guidelines for the Right Credit Card Selection

    Conduct Thorough Research — Once you’ve narrowed down your options, thoroughly review the terms and conditions of the chosen card, focusing on details like annual fees, interest rates, and penalties for late payments.

    Commence with a Modest Limit — For newcomers to the credit card realm, opting for a card with a low credit limit is advisable. This approach not only ensures you spend within your means but also facilitates the building of your credit history.

    Timely Bill Settlement — Consistently paying your bills on schedule is a highly effective strategy for establishing a favorable credit history. Additionally, given that many credit card issuers impose substantial late payment fees, prompt bill settlement safeguards against unnecessary expenses.

    Prudent Credit Utilization — A cardinal rule when it comes to credit usage is to maintain your spending within your financial capabilities. Reserve your credit card for purchases that you can comfortably pay off in full each month. This approach prevents the accumulation of outstanding balances, which can potentially burgeon into unmanageable debt.

    With their manifold benefits, credit cards undeniably serve as valuable and convenient payment tools. To optimize their utility, exercise responsible usage by staying within your financial limits and promptly settling your bills.

  • In B2C supply of services under GST — HSN or SAC in invoices?

    In a B2C (business-to-consumer) transaction under the Goods and Services Tax (GST) regime, it is not mandatory to mention the HSN code in the invoice in case of services, regardless of the value of supply. The HSN code is used to classify goods and is not applicable to services.

    In the case of services, the Service Accounting Code (SAC) is used to classify services, and if the value of the supply of services exceeds Rs. 50 lakhs in a financial year, it is mandatory to mention the SAC code in the invoice.

    Under the Goods and Services Tax (GST) regime, a supply made without an invoice is considered to be an illegal supply and can attract various penalties.

    The specific penalties that may be imposed in the case of a supply made without an invoice in a B2C (business-to-consumer) or a supply made with false and wrong invoices transaction depend on the circumstances of the case and the discretion of the tax authorities. Some common penalties that may be imposed include:

    1. Fine or penalty for not issuing an invoice
    2. Interest on the tax amount not paid on time
    3. Disallowance of input tax credit
    4. Prosecution and imprisonment in severe cases

    As per the GST laws, the fine or penalty can be up to 100% of the tax evaded, and in some cases, it can even be higher. Additionally, interest may be charged on the tax amount not paid on time, and in some cases, the input tax credit may also be disallowed.

    It is important for businesses to comply with the GST laws and regulations and to issue invoices for all taxable supplies made. Failure to do so can result in serious consequences, including penalties and legal action.

    Note: GST laws and regulations are subject to change, and businesses should keep themselves updated with the latest changes.

  • What is a service accounting code (SAC) under GST?

    Service Accounting Code (SAC) is a code assigned by the Goods and Services Tax (GST) Council in India to classify different services under the GST regime. The SAC code is used to determine the rate of tax that is applicable to a particular service.

    The SAC code is a six-digit code that helps the government keep track of services provided by various businesses and to ensure that the correct tax is levied on each service. Each service is assigned a unique SAC code, which is used to identify the service when an invoice is issued.

    In a B2C (business-to-consumer) transaction under the GST regime, if the value of the supply of services exceeds Rs. 50 lakhs in a financial year, it is mandatory to mention the SAC code in the invoice.

    Is SAC Code always of 6 Digits?

    Yes, a Service Accounting Code (SAC) under GST is always a 6-digit number. The structure of a SAC code is as follows:

    • The first two digits are always “99” as services are covered under Chapter 99.
    • The next two digits represent the major nature of the service.
    • The last two digits represent the detailed nature of the service.

    Understanding 6 Digits SAC Code in GST

    When navigating the complexities of the GST regime, it’s crucial for business owners to grasp the significance of the SAC code. The SAC, or Services Accounting Code, is a six-digit code used to classify services under GST. Let’s break down the SAC code using the example of advertising services, which is designated by the code 998361.

    1. First Two Digits (99): The initial two digits, 99, are standard across all service codes. This universal prefix denotes that the classification pertains to services.
    2. Middle Two Digits (83): The next pair of digits identifies the major nature of the service. For advertising services, the middle two digits are 83, signifying that the service falls under the advertising category.
    3. Last Two Digits (61): The final two digits provide specific details about the service. In this instance, 61 indicates that the service is related to advertising.

    Understanding the Role of SAC Codes in GST

    In the realm of Goods and Services Tax (GST), the Services Accounting Code (SAC) plays a crucial role. These unique six-digit codes are assigned to each service, providing a systematic approach to classifying and levying taxes on various services offered by businesses. Let’s delve into the key purposes and benefits of SAC codes in the GST framework.

    Benefits of SAC Codes in GST

    1. Uniform Taxation:
      SAC codes ensure a standardized tax system across the country. This uniformity means that similar services are taxed consistently, irrespective of where they are provided. Such consistency is vital for maintaining fairness and transparency in the taxation process.
    2. Service Identification:
      By assigning specific codes to different services, SAC codes make it straightforward to identify and categorize services. This clarity helps in determining the appropriate GST rate applicable to each service, facilitating accurate tax computation.
    3. Simplified Compliance:
      Using SAC codes significantly eases the burden of compliance for businesses. These codes streamline the process of tax calculation and the filing of GST returns. As a result, businesses can manage their tax obligations more efficiently and with fewer errors.
    4. Enhanced Monitoring and Tracking:
      For the government, SAC codes are invaluable in monitoring and tracking the provision of services. This capability aids in more effective tax collection and ensures that services are not underreported or misclassified, enhancing overall tax compliance and revenue generation.

    In summary, SAC codes are an essential element of the GST system, fostering uniformity, simplifying compliance, and enhancing the government’s ability to monitor and collect taxes. For businesses, understanding and correctly using these codes is critical to ensuring smooth and accurate GST processes.

    Is Mentioning the SAC Code on Invoices Mandatory?

    Under the Goods and Services Tax (GST) regulations, service providers must include the Services Accounting Code (SAC) on their invoices, which is always a 6-digit code. This requirement becomes mandatory if their annual turnover exceeds Rs. 5 crore. For those with an annual turnover below this threshold, it is still necessary to include the SAC code for Business-to-Business (B2B) transactions.

    Incorporating the SAC code is crucial for the accurate classification of services and ensures the correct GST rate is applied. This practice not only streamlines the taxation process but also aids the government in monitoring tax collection and enforcing compliance with GST laws.

    For businesses with an annual turnover up to Rs. 5 crore, it is essential to list the Harmonized System of Nomenclature (HSN) code for goods and the 6-digit SAC code for services on their invoices. If the turnover surpasses Rs. 5 crore, the requirement shifts to an 8-digit HSN code for goods, while the 6-digit SAC code for services remains the same.

    By adhering to these coding requirements, businesses facilitate efficient tax administration and contribute to a transparent and organized tax system.

    SAC vs. HSN Codes

    While SAC codes classify services, HSN (Harmonized System of Nomenclature) codes are used for goods. Here are the key differences between these two types of codes:

    • Purpose: HSN codes are exclusively for goods, whereas SAC codes are designated for services.
    • Code Length: HSN codes are typically eight digits long, offering a more granular classification for goods. In contrast, SAC codes are six digits, simplifying the categorization of services.

    Understanding these distinctions helps businesses accurately classify their offerings, ensuring compliance with GST regulations and simplifying the tax filing process.

    By focusing on these codes, businesses can streamline their GST filings, avoid penalties, and ensure they are in full compliance with government regulations.

    Some of the different types of SAC codes are:

    SAC 99 – Miscellaneous Services
    SAC 98 – Services by way of transfer of a going concern
    SAC 97 – Renting of immovable property service
    SAC 96 – Construction services
    SAC 95 – Business support services
    SAC 94 – Transport of goods and passengers
    SAC 93 – Financial services
    SAC 92 – Telecommunication services
    SAC 91 – Information technology services
    SAC 90 – Tourist transport services

    It is not possible for us to list all the Service Accounting Codes (SAC) under the Goods and Services Tax (GST) regime in India as there are thousands of SAC codes covering a wide range of services. The SAC codes are constantly being updated and new codes are being added, so a comprehensive list would be difficult to maintain.

    It is important for businesses to use the correct SAC code for each service they provide and to keep themselves updated with the latest GST laws and regulations. Businesses can refer to the official GST website or consult a tax professional for the latest list of SAC codes.

  • In a B2C (business-to-consumer) transaction under the GST, what are the mandatory components in tax invoices

    Under section 46 of the Goods and Services Tax (GST) Act, the following details must be included in a tax invoice for a B2C (business-to-consumer) transaction:

    1. Name, address, and GSTIN of the supplier
    2. Date of issue of invoice
    3. A sequential invoice number that is unique for a financial year
    4. Name, address, and GSTIN (if registered) of the recipient
    5. Description of goods or services supplied
    6. Value of supply of goods or services
    7. The rate of GST and the amount of GST charged
    8. Place of supply of goods or services
    9. The signature or digital signature of the supplier or an authorized representative

    It is important to note that the GST laws prescribe specific details that must be included in the invoice, and it is the responsibility of the supplier to ensure that the invoice complies with these regulations.

  • In a B2C (business-to-consumer) transaction under the GST invoices and receipt are same?

    No, in a B2C (business-to-consumer) transaction under the Goods and Services Tax (GST) regime, tax invoices and payment receipts are not the same things.

    A tax invoice is a document that is issued by the supplier to the customer, and it contains all the necessary details required under GST laws to record a taxable supply of goods or services.

    A payment receipt, on the other hand, is a document that is issued by the supplier to the customer as proof of payment received for the supply of goods or services. A payment receipt typically includes details such as the date of payment, the amount paid, and the mode of payment.

    While a payment receipt may contain some of the same information as a tax invoice, it is not considered a tax invoice under GST laws(Sections 46 and 47), and it does not serve the same purpose. The tax invoice is required to be issued to the customer to comply with GST laws, while the payment receipt is issued as proof of payment.