PDF on How to Calculate the Value on which GST should be charged?

1. How How to Calculate the Value on to Calculate the Value on which GST should be which GST should be charged charged? ? With the advent of GST on 1st July, 2017, an immediate task on your hands is to generate accurate invoices that meet the criteria laid down for GST tax invoices. An important component of a GST tax invoice is the tax collected on the supply. To calculate the correct value of tax to be collected on a supply, determining the GST rate applicable to the goods or services supplied is important. It is equally important to determine the correct value, on which tax at the Prescribed rate is to be levied. If this is not done, it can result in unnecessary litigation, levy of interest, and the recipient could even lose input credit on the supply. This is a guide for you to determine the correct value on which tax is to be levied on a supply. This value on which GST is to be levied, is called the transaction value. http://www.prismitindia.com/gst-centre.php

2. Steps for calculating the value on which GST is to be charged in an invoice 1.Determine the price of the goods or service supplied 2.Add any additional charges, such as commission, packing 3.Add any other tax applicable on the supply, other than GST 4.Deduct discount shown in the invoice http://www.prismitindia.com/gst-centre.php

3. An example for how the credit note will appear as shown below in invoice http://www.prismitindia.com/gst-centre.php

4. How to treat additional charges or discounts incurred after the supply •Additions to value •Additional charges •Any amount payable by you (supplier) but incurred by the recipient, such as transportation •Interest/late fee/penalty charged on the recipient for delayed payment In these cases, a debit note should be raised, linked to the original invoice and GST should be charged on the value. Deductions from the value • Discount given after the supply. If discount is given after the supply, ensure that it is agreed upon before the supply and can be linked to a specific invoice. Such a discount can be deducted from the transaction value. For this, raise a credit note for the discount amount and the applicable GST. http://www.prismitindia.com/gst-centre.php

5. Prism IT Solutions Pvt. Ltd GST Centre Office no 2, Ground Floor, Aayan Chandrika, CTS 1315, J M Road, Shivaji Nagar, Pune 411005. Landmark: Lane adjacent to FabIndia showroom before Balgandharva Chowk. Website: http://www.prismitindia.com/gst-centre.php http://www.prismitindia.com/gst-centre.php