Applicability of GST on Liquidated Damages

What is liquidated damages (LD)?

Liquidated Damages (LD) is levied or imposed when some specific task or work is not performed as per the agreed terms or condition, means that there is breach of contract terms. LD is generally levied at fixed rated irrespective of actual damages. Generally in large quantum work like infrastructure projects where performance of the contract is very essence of project, then there is specific clause for LD in the contract. Example situation in which LD is levied is like when milestone is not performed within specific time frame then LD is levied at 1% of milestone amount. Continue reading “Applicability of GST on Liquidated Damages”

How to Export with LUT or Bond in GST

The Good and Simple Tax šŸ™‚ implemented in India with effect from 1st July – 2017 and this revolutionary regulation also made the significant changes in the business process. There are various pros and cons of the system which is implemented and at an initial level, several problems are being faced resulting into lesser business. Exporters also faced the several problems due to blockage of working capital, Slow refund process, Export with payment of duty etc. Export can be without payment if duty by submitting LUT or Bond in GST.

So in order to incentivize the exporters’ govt. released theĀ circular no. – 5/5/2017 dated 11th August – 2017 which was aimed to relax the GST provisions for exports. Provisions of LUT and Bond were also extended to small exporters. So let’s understand what is LUT and Bond which is required for export of goods or services without payment of duty. Continue reading “How to Export with LUT or Bond in GST”

All about composition levy in GST

In the proposed GST law it special provision is kept in order to minimize the hassle of small and medium dealers and retailers by providing option of composition scheme to them. Composition scheme is like dealer has to pay only lump sum tax to government and remain out of GST chain. In today’s article lets understand and analyze all about composition levy in GST. Continue reading “All about composition levy in GST”

Draft Invoice Rules under GST Law

As per GST Law every registered person shall have to issue invoice for supply of goods or services to the recipient. As per Rule (1) of the Draft Invoice Rules under GST Law invoice shall contain specified details. First lets have a look when invoice needs to be issued.

When to issue invoice?

A registered person supplied goods shall invoice before or at the time of

  1. Removal of goods where supply involves movement of goods
  2. delivery of goods or making available thereof to the recipient in other case.

Continue reading “Draft Invoice Rules under GST Law”

GST rules for E-Commerce operators

We all now well aware with upcoming GSTĀ regime, at the outset we shouldĀ get acquainted new GST rules. so in the today’s article lets understand GST rules for E-Commerce operators. Model GSTĀ provides GST rules for E-commerce operators. Continue reading “GST rules for E-Commerce operators”