GSTN CEO Says, GST Network Safe from Ransomware Threat

In the midst of the progressing ransomware hysteria that has perpetrated in excess of 150 countries everywhere throughout the world including Russia and UK, the GSTN or the Goods and Services Tax Network that offers IT infra for GST impose routine is sheltered, said Prakash Kumar, CEO for GSTN. This is on the grounds that the Goods and Services Tax Network does not keep running on the vulnerable operating system.

Post the notable choice from Rajya Sabha when it endorsed all the four GST charges prior this year in April, the Goods and Services Tax Network is altogether prepared for taking care of approx. 2+ billion solicitations consistently under the progressive expense framework.

The ransomware has generally perpetrated PCs and frameworks running on more seasoned rendition of Microsoft OS like XP.

Clearing up further, Mr. Kumar said to PTI, “Our system doesn’t keep running on Microsoft working framework and along these lines, we are protected from the malware. GSTN keeps running on Linux working framework, which isn’t delivered by the ransomware risk.”

The Goods and Services Tax Network additionally guaranteed its partners that all the data/information will be safely put away in scrambled frame and that entrance would be entirely constrained to evaluating officers and citizens as it were.

GSTAround 60 lakh VAT, benefit duty and extract assessees have just enlisted onto the Goods and Services Tax Network’s entryway between November 2016 to April 2017. At present, there are an expected 80 lakh such assessees.

Making advances on Good and Services Tax routine, the GST chamber expects the swelling rates to drop as the new expense framework is relied upon to cut down creation and transportation costs. Discussing its effect, GST would profit huge players, as well as make it simple for little and medium – estimated endeavors to work together easily. Post GST rollout, tax collection will turn out to be simple and direct, consequently boosting venture.

Measurements recommend that in excess of 2 lakh PCs and frameworks could have been perpetrated by the vindictive ransomware, however for GSTN, there is by all accounts no risk starting at yet.

Discounts under GST Regime!

Sec.15 of the CGST Act, 2017, reproduced below

The value of the supply shall not include any discount which is given –

  • Before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply
  • After the supply has been affected, if –

    # – Such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices, and
    # –  Input tax credit as is attributable to the discount on the basis of the document issued by the supplier has been reversed by the recipient of the supply.”

Summary:

The logical inference which could be drawn from the plain reading of above provision is:

  • Discount, if mentioned on the face of the invoice, can be reduced from the taxable value of the supply of goods.
  • Discount, even if not mentioned on the face of the invoice can be reduced from the taxable value, if following conditions are satisfied:

i) Discount is established in terms of an agreement before supply. In simple words, both supplier and recipient are aware and have agreed about the discount before the supply.

ii) Discount is linked to a specific supply invoice.

iii) ITC attributable to the discount is required to be reversed by the buyer or recipient of the supply.

tax audit, refund, notice, assessmentGST liability of the supplier would be reduced if both supplier and receiver of the goods or services are aware of the discount before supply.

There will be no differentiation in GST between trade and cash discounts.

In fact, GST segregates the discounts allowed into two categories:

  • Those given before or at the time of supply, and
  • Those given after the time of supply.

Discount allowed before or at the time of supply, and it has been mentioned in the invoice separately, it will not be added in the value of supply.

Example: Company offers a 10 % discount on the sale of goods worth Rs. 200. If the company mentions the discount amount (Rs. 20) separately in the invoice, the value of the taxable supply will be Rs.180 (200–20).

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