CONTINUOUS ASSESSMENT TASK-I

INDIRECT TAX LAWS

ASSIGNMENT-I

BILL ANALYSIS

SUBMITTED TO : SUBMITTED BY:

Dr. Meenu Chopra Jyoti Mehmi

Head of the Department B.Com., Ll.B. (Hons.)

School Of Law L1703 A01

Lovely Professional University 11716098

 INTRODUCTION TO GST:

The Goods and Services Tax bill is India's most significant indirect tax overhaul. The bill's goal
is to impose a single tax on the supply of goods and services from the point of manufacture to the
point of delivery to the ultimate consumer. The final consumer of products and/or services will
only be responsible for the GST levied by the supply chain's final dealer, with set-off benefits
available at all prior stages. This means that intermediate tax steps like excise taxes and service
tax, as well as state levies like VAT, will be absorbed by GST.

The GST journey began in the year 2000 when a committee was set up to draft law. It took 17
years from then for the Law to evolve. In 2017, the GST Bill was passed in the Lok Sabha and
Rajya Sabha. On 1st July 2017, the GST Law came into force. The implementation of the GST
law will help to simplify administration by eliminating various taxes systems at each stage of the
trade model and eliminating manufacturing disruptions. It also intends to make all commodities
and services taxed at the same rate. The tax regime will assist manufacturers because it will
lower the tax burden on them. A system of seamless tax credits will result in less tax cascading,
lowering hidden trade costs.

TAX INVOICE

The tax invoice referred to in section 31 of the CGST Act, 2017 is referred to as a "invoice" or
"tax invoice" under the GST regime. The issue of certificates is required under this section. For
each supply of goods or services, an invoice or a bill of supply is required. Under GST, a tax
invoice is an important document. It not only evidences the supply of goods or services, but is
also an essential document for the recipient to avail Input Tax Credit (ITC).

To summarize, the tax invoice is the key document evidencing the supply and is required in
order to claim Input Tax Credit.
 ANALYSIS OF THE BILL

This bill or the Tax invoice is of Chaman Furnishers which deals with the supply of sofa cloth,
pillows, mattresses, bed sheets and sofa material located in Furniture Bazar, Kartarpur Distt
Jalandhar, Punjab.

NAME, ADDRESS AND GSTIN NUMBER OF THE SUPPLIER

With the compliance of Rule 46 (a) of the CGST Rules, 2017 this section clearly states that an
invoice issued by the registered person shall contain the name, address and Goods & Services
Tax Identification Number of the supplier. The name of the supplier is Chaman Furnishers,
address is Furniture Bazar, Kartarpur Distt. Jalandhar Punjab. The GSTIN Number is mentioned
on the top of the bill that is GSTIN: 03AAQPG113J1ZW.

Verification of GSTIN NUMBER:

The GSTIN number is allotted to each taxpayer which is allotted on the state-wise. It is a PAN-
based number which is of 15 digit number. Here in the above attached bill the GSTIN NUMBER
is 03AAQPG113J1ZW. So the first two digits are 03 and 03 is the state code for Punjab. Then
the PAN no. is provided I the bill that is AAQPG113J1. After that the Z is by default. The last
digit is for the check code.

DATE OF ISSUE OF INVOICE & INVOICE NUMBER

As per the Rule 46 (c)of the CGST Rules, 2017, it states that the invoice must contain the date of
the issue. The date of issue is mentioned in the bill 01/03/3019. The invoice number is T-515.

NAME, ADDRESS OF THE RECIPIENT

The name of the recipient is mentioned in the bill as Bagla Furniture House and the address of
the buyer/recipient is Mothada Kalan.
DESCRIPTION AND QUANTITY OF GOODS AND SERVICES

Rule 46 (h) read with sub-rule (i) provides that the invoice must contain the description of goods
and services along with the specified quantity. The description of the goods is given in the bill in
the column named as Description of Goods and the quantity of the goods is also mentioned in the
different column named as Quantity.

HARMONIZED SYSTEM OF NOMENCLATURE (HSN CODE)

The main purpose of HSN is to classify goods from all over the World in a systematic and
logical manner. This brings in a uniform classification of goods and facilitates international
trade. Rule 46 (g) of the CGST Rules, 2017 states that there must be a Harmonized System of
Nomenclature. A separate column has to be made for HSN Code.

DESCRIPTIO NATUR HSN CENTRA STATE

RATE x
N OF E OF CODE L TAX TAX
QUANTIT
GOODS SUPPLY AND GST
Y
TAX
BRACKETS

Fabric Chanill Intra- 5801 6.00 6.00

7500
State
Supply

.
DETERMINATION OF TAX TYPE

In the above attached the supply that has been made is of Intra State Supply. Intra state supply
means that the supplier’s place and the delivery place is within the same state then that supply is
referred as intra state supply. So, in this case the CGST and SGST will be imposed. The CGST
of @6% and SGST of @6% has been charged on the goods.

So, the total amount that is coming after when the CGST and SGST has been charged on the
amount of Rs.7,500.00 is Rs. 8,400.00.

DETERMINATION OF THE TAX RATE-

The tax rate is determined by the HSN code which is mentioned in the bill. HSN code stands for
“Harmonized System of Nomenclature”. HSN Code system has been introduced for the
systematic classifications of the goods from all over the world. The rate of the GST is covered
under the HSN Code. The HSN Code given in the above attached bill is 5801 and the tax
charged on goods was 6%.
 CONCLUSION:-

To summarize, GST is expected to transform the indirect taxation system by introducing a

transparent and corruption-free tax administration and correcting the current flaws in the indirect
tax structure. GST has also minimized the chances of tax evasion and which was prevalent in the
earlier regime. Although GST has positive impact on the country’s economy and it would help in
the overall development of India’s growth. But since GST is a whole of the new concept, the
progress of the country can only be achieved if the common man is fully aware about the GST
system.