A Goods and Services Tax (GST) invoice or a GST bill is a list of goods sent or services provided, along with the amount due for payment. Every registered business under GST must issue an invoice that contains a valid GSTIN, and further show the breakup of Integrated GST, Central GST and State GST. Also, it is important to know the particulars of an invoice and check whether the issued GST invoice is genuine or not.Format of GST invoiceA tax invoice under GST usually has 16 mandatory fields and typically looks like below:How to identify a fake GST invoice?Hence, if any of the vital information required in a GST invoice is missing, it can be a fake invoice. For Example, (i) If a trader issues a GST invoice without GSTIN, it would be considered a fake invoice. (ii) If a business has not been registered under GST but uses a fake GSTIN on the invoice and charges GST, it will also be considered a fake invoice as the tax paid will not get deposited with the government.The image below helps identify the correct format of a GSTIN: A GSTIN is a 15 digit unique code assigned to each taxpayer, which is PAN-based and allocated state-wise.  If there is any change in the structure of this number, it can be easily identified as a fake number. However, just because a GSTIN is mentioned in the correct format does not mean that the GSTIN is valid or belongs to the enterprise issuing the invoice.  This article further discusses how to identify a fake GSTIN and cross-check the tax rates charged on the invoice.How to verify the GSTIN entered on a GST invoice to check whether it is genuine or fake?If a customer finds something suspicious with an invoice, you can easily verify the authenticity of any GSTIN with ClearTax in the following ways:GST Number Search Online – Verify GSTINGSTIN Number Search by NameAlso, one can follow the steps below on the GST portal to check if the GSTIN mentioned on the invoice is correct:Step 1: Go to https://www.gst.gov.in and click on ‘Search Taxpayer’ and ‘Search by GSTIN/UIN’ Step 2:  Input the GSTIN and then click ‘Search’.

Employee’s Provident Fund (EPF) is a government-backed investment cum retirement planning scheme. The employees working in eligible organisations should compulsorily contribute a minimum of 12% of their basic salary on a month-on-month basis. The employer as well contributes with a matching amount. We have covered the following in this article:PF UpdatesThe EPFO gives an interest rate of 8.25%p.a. for FY 2024-25 and FY 2023-24 to subscribers of the Employee Provident Fund (EPF). What is VPF?Voluntary Provident Fund (VPF) is the contributions made by the employees that are over and above the minimum contribution set by the Employees’ Provident Fund Organisation (EPFO).

GSTR-7 is a monthly return filed by individuals who deduct tax at source or TDS under the Goods and Services Tax (GST). Every GST registered individual who deducts TDS under GST must file in Form GSTR-7 by the 10th of next month. The form contains details of TDS deducted, TDS payable, TDS refund, etc.What is GSTR-7?GSTR-7 is a return filed by the individual who deducts TDS under GST. GSTR-7 contains details of the TDS deducted, TDS liability payable and paid, TDS refund claimed, etc.Who can deduct TDS under GST?As per the GST law, the following individuals/entities can deduct TDS :A department or establishment of the Central or state governmentA local authorityGovernmental agenciesPersons or categories of persons as may be notified by the Central or a state government on the Council’s recommendationsAs per the Notification No. 33/2017 – Central Tax, 15th September 2017, the following entities can also deduct TDS:An authority, a board, or any other body set up by the Parliament, a State Legislature, or by a government with 51% equity (control) owned by the governmentA society established by the Central or any state government or a local authority and the society registered under the Societies Registration Act, 1860Public sector undertakingsThe above deductors must deduct TDS where the total value of supply under the contract exceeds Rs.2.5 lakh.

GSTR-9 return filing is more than consolidating the monthly returns filed during a financial year. Businesses must collate the Goods and Services Tax (GST) data, including sales register, purchase register, returns filed, taxes paid, demands, and refunds. Further, one must file GSTR-9 if they were registered at least for a single day in a financial year. They should have filed all the GSTR-1 and 3B returns for the financial year before filing GSTR-9.This article explains all about GSTR-9, including what it is, its applicability, due date, details to be filled, late fee, penalties and FAQs. Further, we have provided a white paper on the checklist to file an error-free GSTR-9.

GSTR-4 is a return that must be filed by the taxpayers opting for Composition Scheme on an annual basis. Until the FY 2018-19, the return was filed every quarter which got replaced by CMP-08.What is GSTR-4?GSTR-4 is the annual GST Return that has to be filed by a composition dealer. Unlike a regular taxpayer who is required to furnish 2 monthly returns and an annual return (with certain exemptions), a dealer opting for the composition scheme is required to furnish one return every quarter in Form CMP-08 and Form GSTR 4 once a year by the 30th day of April, following the financial year.When is GSTR-4 due?GSTR 4 is required to be filed on an annual basis.The due date for filing GSTR 4 is 30th of April following the relevant financial year. For example, the GSTR-4 for FY 2023-24 is due by 30th April 2024*. Until the FY 2018-19, the due date was 18th of the month following the end of the quarter.Who should file GSTR-4?A taxpayer opting for the composition scheme is required to file GSTR-4. It also covers the special composition scheme notified for the service providers vide the CGST (Rate) notification number 2/2019 dated 7th March 2020 with effect from FY 2019-20.How to revise GSTR-4?GSTR 4 cannot be revised after filing on the GSTN Portal.Late Fees and PenaltyAs per the latest update, a late fee of Rs.50 per day is charged up to a maximum of Rs.2,000.

Invoicing is a crucial activity for any business, irrespective of type and size. Businesses should be careful while generating invoices as every transaction enters into books of accounts through this activity. Further, after introducing the Goods and Services Tax (GST), registered businesses must issue GST invoices, also known as GST bills.This article explains everything about invoicing under GST, including what it is, who should issue it, mandatory fields, types of invoices, revised invoices, and invoicing under special casesWhat is a GST invoice?An invoice or a GST bill is a list of goods sent or services provided, along with the amount due for payment.Who should issue GST Invoice?If you are a GST registered business, you need to provide GST compliant invoices for sale of good and/or services.Also, you should receive GST invoices from your vendors to claim the Input Tax credit (ITC).What are the mandatory fields a GST Invoice should have?A tax invoice is generally issued to charge the tax and pass on the ITC. A GST Invoice must have the following mandatory fields-Invoice numberInvoice dateCustomer nameShipping and billing addressCustomer and taxpayer’s GSTIN (if registered)**Place of supplyHSN code/ SAC codeItem details i.e. description, quantity (number), unit (meter, kg etc.)Total valueTaxable value and discountsGST rate and amount of taxes i.e.

GST rates list is crucial for every Indian business and consumer to know. When the GST Council revises GST rates, it hits respective industries, trade bodies and end consumers, impacting the economy. Everyone tends to evaluate their position as a result of this change. Our HSN cum GST rates finder helps you identify the accurate and latest GST rate applicable for the product/service.In this article, learn the meaning of GST rate and get all the latest updates on GST rates in India 2024.Meaning of GST RatesGST rates refer to the percentage rates of tax imposed on the sale of goods or services under the CGST, SGST and IGST Acts. A business registered under the GST law must issue invoices with GST amounts charged on the value of supply.The GST rates in CGST and SGST (For intrastate transactions) are approximately the same.

The Goods and Services Tax (GST) framework introduced the Input Tax Credit (ITC) concept. But what happens if a taxpayer avails ITC incorrectly? This article explains the penalty for wrong availment of ITC under GST.What is the penalty for wrong ITC availment under GST?  In the GST framework, the penalty mechanism ensures adherence and compliance by taxpayers. If a taxpayer misuses the Input Tax Credit (ITC), certain penalties apply:Wrongful Availment: As per the GST provisions, if an entity wrongly avails ITC but hasn't utilised it, it must reverse the credit along with interest within a specific period. Failing to do so may lead to penalty proceedings.Penalty Amount: If you have wrongly availed and utilised the ITC, the penalty can range up to 100% of the ITC amount availed or INR 10,000, whichever is higher.Interest Component: Following the retrospective amendment in Section 50 of the CGST Act from 1.7.2017, interest is now chargeable only on ITC wrongly availed and utilised, not just on wrongly availed.Specific Provisions: Section 122 of the GST Act clarifies that penalty can be levied for ITC wrongly availed or utilised. Thus, even if ITC is availed but not used, a penalty may still be applicable.Intention Matters: The Department may seek to imply mala fide intention to evade tax and, hence, could levy a higher penalty.

Within the GST framework, there are three key concepts related to Input Tax Credit (ITC) that businesses must understand - Interest on excess ITC claimed, interest on ITC reversal, and interest on ITC availed but not utilised. These concepts helps you calculate interest as per the situation. Let's take a closer look at each of these concepts.Interest on excess ITC claimedWhen an entity claims more Input Tax Credit (ITC) than it is eligible for, it is considered   as 'excess ITC claimed'. The government levies an interest of 18% on this over-claimed amount. The objective is to ensure compliance and deter businesses from claiming more credit than they are entitled to.

It is easy to guess that you are not fully GST compliant unless your ITC claims are in place. It is beneficial if businesses may have access to a report which specifies what % of their credit is unmatched and they’ll have to work with suppliers to minimise the gaps.Latest updates1st February 2022Budget 2022 update-Sections 42, 43, 43A on matching and reversal of ITC provisions are removed by the virtue of the removal of provisional ITC in the Finance Bill 2022.What does a mismatch in credit mean for issuing scrutiny notices?Several taxpayers are concerned about the issues around the non-availability of credit.Here’s basically what mismatched credit means –Differences between the amount of credit shown in GSTR- 3B and GSTR-2B or GSTR 2ADiscrepancies between GSTR-3B and GSTR-1Any differences noticed between these returns will lead to scrutiny notices being issued to the taxpayers.Modes of communicating differences noticed in the returns by officersAny difference noticed by the authorised officer shall be communicated to the concerned person in Form GST ASMT-10. Contents of the form:Observations of the officerTime available to the taxpayer to give his explanation in response to this notice.Tax amount that is different and is the reason for the discrepancy may or may not be mentioned in this form.Actions available to taxpayers who receive noticeView Form GST ASMT-11  View Form GST ASMT-12Any differences between your monthly/quarterly/yearly GST returns?  Clear is a one-stop solution for various taxpayers regarding these notices:GSTR 3B Vs GSTR 1 report is generated to help customers know about any differences connected to payment of taxes on all outward suppliesA comparison report between GSTR 3B and GSTR 2B is generated. This helps to be sure that the credits claimed are related to taxes actually paid by the suppliers.The invoicing cum filing platform fastens the invoice generation and return filing process with accuracy. Invoices created via ClearTax help in auto preparation of the GST returns and thus the chances for errors get reduced to almost nil.Multiple validations connected to GST are done.