The document provides information about Goods and Services Tax (GST) and its impact on the telecom industry in India. Key points include:
1. GST is a new indirect tax replacing existing indirect taxes and is applicable on both goods and services. Only value addition will be taxed.
2. For telecom services, tax will be levied based on the place of consumption. Imports will be taxed under GST while exports will be zero-rated.
3. Under GST, invoices will contain additional fields like GST registration numbers and tax breakdown. Customers are requested to provide their GST registration numbers to update records.
The document provides information about Goods and Services Tax (GST) and its impact on the telecom industry in India. Key points include:
1. GST is a new indirect tax replacing existing indirect taxes and is applicable on both goods and services. Only value addition will be taxed.
2. For telecom services, tax will be levied based on the place of consumption. Imports will be taxed under GST while exports will be zero-rated.
3. Under GST, invoices will contain additional fields like GST registration numbers and tax breakdown. Customers are requested to provide their GST registration numbers to update records.
The document provides information about Goods and Services Tax (GST) and its impact on the telecom industry in India. Key points include:
1. GST is a new indirect tax replacing existing indirect taxes and is applicable on both goods and services. Only value addition will be taxed.
2. For telecom services, tax will be levied based on the place of consumption. Imports will be taxed under GST while exports will be zero-rated.
3. Under GST, invoices will contain additional fields like GST registration numbers and tax breakdown. Customers are requested to provide their GST registration numbers to update records.
The document provides information about Goods and Services Tax (GST) and its impact on the telecom industry in India. Key points include:
1. GST is a new indirect tax replacing existing indirect taxes and is applicable on both goods and services. Only value addition will be taxed.
2. For telecom services, tax will be levied based on the place of consumption. Imports will be taxed under GST while exports will be zero-rated.
3. Under GST, invoices will contain additional fields like GST registration numbers and tax breakdown. Customers are requested to provide their GST registration numbers to update records.
INFORMATION BOOKLET Goods and Service Tax – Information Booklet Contents [1] GST and its impact of GST on Telecom........................................................................................................... 2 [2] Impact on Customers ...................................................................................................................................... 4 [3] Transition ........................................................................................................................................................ 4 [4] Support Required from You: .......................................................................................................................... 5 [5] Annexure ......................................................................................................................................................... 6
1|Page Goods and Service Tax – Information Booklet [1] GST and its impact of GST on Telecom 1. Understanding GST: GST stands for Goods and Service Tax (‘GST’). GST is applicable on both Goods and Services. GST is consumption based taxation system, where tax is levied on final consumption. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer GST is effective from July 1, 2017
1. Definition of Telecom service as per GST law:
“telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means.
2. Place of Supply in GST:
Tax would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply. Accordingly, imports would be subject to GST, while exports would be zero-rated.
3. Place of Supply for Telecom Products and GST applicability
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4. Special Cases of Billings under GST regime:
(a) Leased circuit (NLD/Local Loop/Drop & Carry) is installed in more than one State and a consolidated amount is charged for supply of services relating to such circuit NLD billings will be split if the circuit is installed in two states. Two separate invoices will be generated and GST is required is to be paid in each state. The invoice will be split in both states basis value of services so provided in each State as ascertained from the terms of the contract entered into in this regard. In absence of such contract, on other reasonable basis (50:50 in each state). (b) IPLC & IMPLS Billings: Where the Location of supplier or Recipient is outside India, Place of Supply will be location of recipient: i) Recipient is located in India and Payment made in INR - GST will be discharged on link located in India.
3|Page Goods and Service Tax – Information Booklet ii) Recipient located outside India (Both side of link is outside India): Export of service provided other conditions of Export of services are fulfilled. iii) Recipient located outside India (One Side of Link is in India): Export of services in case customer is able to provide declaration that customer does not have place of presence in India. Otherwise it will treated as GST liable transaction.
[2] Impact on Customers
1. Format of invoice as per GST: Following additional fields have been added in GST: GSTIN number of the customer Billed to (input tax credit will be available to the consumer basis this GSTIN number). In other words GSTIN number of the respective state which is place of supply as per the GST law will be printed on the invoice, if available with Airtel. For instance, GSTIN number of Maharashtra of the customer will be printed on the invoice for Internet link which is installed at Mumbai. GSTIN No. of Supplier (Airtel) Details of CGST, SGST & IGST Applicable HSN code in case of goods / SAC Code in case of service
Refer Annexure 1 for format of invoice prescribed under GST.
[3] Transition 1. Transition: i. Open Customer PO’s and Invoicing post July 1, 2017: Airtel will continue to provide services against existing open valid PO’s (provided by the customers) as on appointed date post July 1 as well. Point of taxation before the appointed date of July 1, 2017: Invoices will be billed basis the applicable taxes - Service tax / VAT / CST. Point of taxation after the appointed date of July 1, 2017: Invoices will be billed basis GST law.
ii. Payment Process of invoices generated prior to July 1, 2017:
Payment received related to invoices prior to July 1 will be posted based on applicable taxes on Invoice against which payment being received.
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iii. Advance received from customers (‘AFC’) prior to July 1, 2017:
Unsettled AFC due to unapplied status, unidentified receipts, received prior to July 1 will be considered as collection against invoices and accordingly, will be knocked off against debtors.
Negative balance due to credit note issued in Airtel books will be considered as refundable balance and such amount will be refunded or adjusted as the case may be against any invoice against which such payment is rendered or any service provided to customer in future.
Any other advances received from customer post July 1, 2017, Airtel will deposit the GST as per advance related rules and regulation prescribed in GST law.
[4] Support Required from You:
State wise GSTIN number: We will be sharing with you a format in excel spread sheet for updating the state GSTIN number. Once you have received that spreadsheet kindly update the state wise GSTIN number in that spread sheet and share with us the relevant GSTIN registration certificates also. This will enable us to update our customer master records.
Disclaimer: The above document is prepared basis clarity on India GST law till Feb’17 and our understanding / interpretation of the GST law. This should not in any manner construed as the legal position taken by the Company and the information above is subject to change.
5|Page Goods and Service Tax – Information Booklet [5] Annexure Annexure 1: Invoice Format under GST Regime
6|Page Goods and Service Tax – Information Booklet Annexure 1: Invoice Format under GST Regime
7|Page Goods and Service Tax – Information Booklet Annexure 1: Invoice Format under GST Regime
