Namaskar!
How does it feel when you spot a traffic police officer and suddenly realise that you haven't worn your seat belt?
You suddenly feel panicked and regret not wearing it at the right time. You fear fines, time wastage, and sometimes even emotional pressure!
Instances like these make you realise that it is always worthwhile to wear your seatbelt on time.
The same is the case with availing input credit under GST, and in this post, we talk about all the things you must take care of to remain tension free and avoid the same feeling you have while not wearing a seatbelt!
1. A common perception is that just by having a copy of the invoice and paying the vendor who files his return will give us the input credit. This is true but only till some extent and to make sure you always get the input credit, you must have an original copy of the bill which has all the details as specified under the Rule 36(2) of the Central GST Rules 2017.
2. Full payment must be made to the vendor within 180 days of the date on the bill, or the additional credit availed must be reversed. When it comes to your reverse charge liability, credit can be availed only after the tax is paid. Whether you have paid the vendor or not does not matter in this case.
3. At times you might have to prove that all the goods and services were received by you. There is no clear understanding and description of how to prove this, but we believe that having and E-Way Bill will help to a large extent. Maintaining the Stock Register is also very crucial as the goods in your godown must match with the stock register at all times.
It is your duty to reverse the credit that was wrongly allotted to you.
Everyone has equal rights to drive on the road provided that the driver possesses a driving license and all other essential documents and follows the traffic rules. Similarly, every merchant registered under GST has the right to avail input credit provided that he has a copy of the invoice and all the rules and regulations for the credit availing are followed.
If you don't take care of these rules and steps, you will be in similar condition as not wearing the seat belt and the traffic policeman, in this case, will be the GST officer.
Make sure to follow everything and run your business smoothly without any tension and focus on growth.
Contact Us for any GST assistance or managing any taxation related Issue!
T: 9088882000 | www.askdost.com
Sincerely
Team GST DOST
