2018 (10) TMI 304 - AAR - GST

Jurisdiction of AAR - Issuance of Tax Invoice - issuance of single invoice for every truck unlike the situation Prior to GST regime, where it was practice to receive single invoice for the entire month, and daily challan accompanied with each truck. Ruling - The responsibility to issue Tax Invoice related to Supply of Taxable Goods is with the Registered person who supplies the goods - in this case the suppliers are registered with Jharkhand and Chattisgarh states - the Jurisdiction to decide the issue with the authority is limited to the state of Uttar Pradesh. As the registered persons are outside the territorial limits of State of Uttar Pradesh, the present application is outside the scope of Jurisdiction - the present Advance Ruling application is dismissed as not maintainable.

Summary

Issues:
1. Interpretation of GST Invoicing Rules and compliance requirements.
2. Impact of GST regime on invoicing practices and accounting systems.

Analysis:
1. The case involves a situation where a company is facing challenges due to the high volume of GST invoices generated for the supply of Bauxite from captive mines to its factory. The company, HIL Renukoot, receives Bauxite from mines located in Jharkhand and Chhattisgarh on a continuous basis. The supply is made via road and road cum-rail modes, with an average of 1,80,000 MT of Bauxite received every month. The company raises GST tax invoices for each consignment/truck, resulting in more than 15,000 invoices per month. This high volume of invoices is causing system slowdowns and errors during Goods Receipt Note (GRN) creation, leading to discrepancies in GST returns between the factory and mines division. The company highlights its previous practice of receiving a single invoice for the entire month before the GST regime was implemented.

2. The analysis delves into the definitions provided under the GST Act related to inward supply, outward supply, recipient, and supplier. It emphasizes the importance of issuing tax invoices by registered persons supplying taxable goods, detailing the required particulars such as description, quantity, value of goods, and applicable tax. The Act allows for the government, based on council recommendations, to specify categories of goods or supplies necessitating tax invoices within a prescribed timeframe and manner. The case underscores the challenges faced by the company in adapting to the new invoicing requirements under the GST regime, impacting its accounting processes and creating discrepancies in GST returns.

This judgment highlights the practical implications of GST invoicing rules on businesses, emphasizing the need for companies to streamline their invoicing processes to ensure compliance and avoid operational challenges. The analysis provides a comprehensive understanding of the issues faced by the company in transitioning to the new invoicing system and the resulting impact on its accounting operations and GST return filings.