Introduction of GST to vendor and make changes in agreement

LETTER FORMAT

To
Authorized Signatory name
The Supplier name
Supplier Address
Date : 1 July 2017

Sub : Changes in agreement terms with introduction of GST

Dear Vendor
At the outset, we would like to thank you for being a trusted supplier/service provider and providing us quality products/services helping us reach millions of customers across the country.
As you are aware that our country is moving towards GST regime and the expected date of implementation is 1st july 2017. We believe that this progressive move has potential long term benefits for the economy and for all of us. This change would directly impact the supply/service agreement between YYYYY India Pvt. Ltd. “YYYY” and Supplier name.
The below clauses will form a part of the supply/service agreement entered between Artsana. and your organization and will automatically become applicable from the date of GST implementation in the country. Please note that in case any contradiction between below terms and the original supply/service agreement (referred to as “agreement”), the terms of this letter shall supersede the agreement. The below terms in no way relives any of the parties from the liabilities as per the agreement with regard to transactions executed before the GST implementation date.
1) Details on GST invoices/documents – All the invoices/documents issued after GST should be in compliance with the applicable rules under GST. The below details should be clearly mentioned on the GST invoices issued for supplies/services by you.

a) name, address and GSTIN of the supplier;
b) consecutive serial number not exceeding sixteen characters, in one or multiple series,
c) containing alphabets or numerals or special characters hyphen or dash and slash symbolised
d) as “-” and “/” respectively, and any combination thereof, unique for a financial year;
e) (c) date of its issue;
f) (d) name, address and GSTIN or UIN, if registered, of the recipient;
g) (e) name and address of the recipient and the address of delivery, along with the name of State
h) and its code, if such recipient is un-registered and where the value of taxable supply is fifty
i) thousand rupees or more;
j) (f) HSN code of goods or Accounting Code of services;
k) (g) description of goods or services;
l) (h) quantity in case of goods and unit or Unique Quantity Code thereof;
m) (i) total value of supply of goods or services or both;
n) (j) taxable value of supply of goods or services or both taking into account discount or
o) abatement, if any;
p) (k) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
q) (l) amount of tax charged in respect of taxable goods or services (central tax, State tax,
r) integrated tax, Union territory tax or cess);
s) (m) place of supply along with the name of State, in case of a supply in the course of inter-State
t) trade or commerce;
u) (n) address of delivery where the same is different from the place of supply;
v) (o) whether the tax is payable on reverse charge basis; and
w) (p) signature or digital signature of the supplier or his authorized representative:

Impact – In case of non receipt of GST complied invoices/documents we will not be able to take input credit of the GST charged on invoice and hence will not able to credit you for the tax amount charged on the invoice.

2) Proforma invoice – Ensure that PI is issued and approved by YYYYY before dispatch of goods and issue of final invoice to ensure that the price charged on invoice is correct as mutually agreed.

Impact – In case of any differences between the agreed rates and the invoice rates, YYYYY will give credit for the goods and tax based on agreed rates.

3) Short receipt of goods – We will strictly pay for the quantity received in our warehouse.

Impact – In case of any differences between the invoice quantity and the received quanity, YYYYY will give credit for the goods and tax based on received quantity.

4) Credit period – Payments will be made as per the agreed terms on the original agreement or the clearing of transactions outstanding in your GST returns form no. 1A whichever is later (in case the sales data uploaded by you in GST form no. 1 is not correct).
For YYYYY India Pvt. Ltd. Accepted:
Vendor Name

Authorized Signatory Authorized Signatory

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