GST Computation

GST Computation & Accounting
Understanding Output and Input GST
Composition Scheme in GST
Reverse Charge in GST
TDS in GST
TCS in GST
Accounting Entries in GST
Time and Supply of Goods and Services
Input Tax Credit in GST
Place of Supply in GST
Input Services Distributor
E-way bill process
1|Page
1.Understanding Output and Input GST
1.1. What Is Output and Input GST
What is Output GST?
GST on sales is called Output GST.
What is Input GST?
GST on purchases is called Input GST.
What is GST Payable?
Output GST - Input GST = GST Payable
Question 1
Sales Amount within State 100000
Purchase Amount within State 80000
GST Rate
CGST 9%
SGST 9%
Calculate GST Payable

GST Computation Format:-
PARTICULARS AMT CGST SGST TOTAL GST

Output GST 100000 9000 9000 18000
input GST 80000 7200 7200 14400
GST PAYABLE 1800 1800 3600
1.2. What is GST CREDIT?
2|Page
If Input GST is more than Output GST it is called GST Credit.
We calculate it separately for different types of GST
Question 2
Sales Amount Within State 60000
Purchase Amount Within State 70000
GST Rate
CGST 9%
SGST 9%

GST Computation Format:-
PARTICULARS AMT CGST SGST TOTAL GST
Output GST 60000 5400 5400 10800
input GST 70000 6300 6300 12600
GST PAYABLE 0 0 0
GST Credit 900 900 1800
Difference between GST Payable and GST Credit

GST PAYABLE GST CREDIT
If Output is more than Input, It is Called GST If Input is more than Output, It is Called GST
payable Credit
We need to pay challan to Pay tax No need to pay Challan to pay tax
Note:-
Challan is a form used to pay tax
It is required only if tax is payable not used in case of tax credit
3|Page
1.3. IGST Tax Rates and Computation
On Purchase of goods within State, CGST and SGST will be charged.

On sales of goods on off side state, IGST will be charged.
What will be Rate of IGST?

IGST Rates=CGST Rate+SGST Rate
Example
Suppose CGST Rate is 2.5% and SGST Rate is 2.5%
IGST Rate=2.5%+2.5%=5%
Question-3
Sales Amount Outside State 100000
Purchase Amount Outside State 60000
GST Rate:-
CGST 9%
SGST 9%

Answer:
Since Goods are sold Outside State, IGST will be charged
Rate of IGST=CGST+SGST=9%+9%=18%
4|Page
1.4. Inter-state Sales and Purchase – IGST Computation
In this case on goods purchase and sales, IGST will be charged.
Example
Question-4
Sales Amount Outside State 100000
Purchase Amount Outside State 120000
GST Rate
 CGST 9%
 SGST 9%
Answer:
Since Goods are sold Outside State, IGST will be charged
Rate of IGST=CGST+SGST=9%+9%=18%
PARTICULARS AMT IGST

Output GST 100000 18000
input GST 120000 21600
GST PAYABLE 0
GST Credit 3600
Since IGST Input is more than IGST Output, it is IGST Credit.
1.5. Adjust of IGST with CGST, SGST Credit

Output IGST can be adjusted with Input GST in the following order
1. Input IGST if any
2. Input CGST if any
3. Input SGST if any
5|Page
Examples
Question-5
In books of a Kolkata Shopkeeper
Goods Purchased from Kolkata Plastic Bottles
PARTICULARS QTY RATE AMOUNT

Bottles in pieces 5000 20 100000
CGST 9% 9000
SGST 9% 9000
TOTAL 118000
Whole Stock of 5000 pcs Sold to Chennai Buyer at 30 per kg

Make Sales Bill
Answer:

IGST 18% 27000
TOTAL 177000
Make GST Computation

CGST AND SGST COMPUTATION
6|Page
IGST Computation
1.6. Adjust of Credit in case of CGST, SGST and IGST Sales
In this case, First Output CGST will be adjusted with Input CGST
If any Balance left, it will be adjusted in IGST
Similarly,
First Output SGST will be adjusted with Input SGST
If any Balance left, it will be adjusted in IGST
Sequence will be as follows

Examples
Question -6
7|Page
CGST 10% 10000
SGST 8% 8000
TOTAL 118000
Suppose 1000 pcs Sold to Chennai Buyer at 30 per kg
Also 2000 pcs sold in Kolkata @ 40 per kg
Make Sales Bills

CGST 9% 7200
SGST 9% 7200
TOTAL 94400

IGST 18% 5400
TOTAL 35400

IGST COMPUTATION
8|Page
Question-7
CGST 10% 10000

SGST 8% 8000
TOTAL 118000
Suppose 1000 pcs Sold to Chennai Buyer at 30 per kg

Also 2000 pcs sold in Kolkata @ 55 per kg
Make Sales Bills

CGST 9% 9900
SGST 9% 9900
TOTAL 129800

IGST 18% 5400
TOTAL 35400

9|Page
IGST COMPUTATION
1.7. CGST and SGST cannot be adjusted against each other
CGST credit cannot be adjusted against SGST Payable.

Similarly, SGST Credit cannot be adjusted CGST Payable.
However, both can be adjusted against IGST Payable
Sequence of Adjustment
10 | P a g e
Question -8
TYPE OF SALES
1. LOCAL SALES
2. LOCAL PURCHASES
Company had Opening Input of Service

 Tax - 20
 Vat - 110
Answer:
Note:-
CGST and SGST Cannot be adjusted against Each Other
11 | P a g e
Hence, we have to carry forward SGST Credit OF 20
Also we have to pay CGST OF 140
We cannot adjust the two
Question -9
Solve last question assuming there is Interstate Sales and Purchases also as follows
INTERSTATE SALES
INTERSTATE PURCHASE
Answer:
IGST Computation
12 | P a g e
1.8. Central Purchase and Local Sale in GST
In case we purchase interstate, IGST will be charged
This input IGST will be first adjusted against output IGST
If balance remaining it will be adjusted in the following sequence
1. CGST Payable
2. SGST Payable
13 | P a g e
Question-10
CENTRAL PURCHASE AND LOCAL SALES
Goods Purchased from Punjab
Suppose Sales made of 5000 Piecesin Kolkata @ 24 /piece (tax extra)
IGST Computation
Answer:
14 | P a g e
2. Composition Scheme in GST
2.1. What is Composition Scheme under GST
This Scheme is for Small Business who cannot maintain detailed books of accounts and records.
Why GST Composition Scheme is introduced
Normally, an assesse under GST has to maintain proper records of Output and Input and pay 3 Monthly
Returns every month+ One Annual Return
This is not possible for small business.
For such business, Government has introduced composition scheme under GST.
As per this Scheme, No Input is available to Composition Dealer. However, he has to pay Output at less
Rate
Also Instead of monthly 3 returns, he can file Quarterly One Return plus one Annual Return
Hence, this scheme is for easy compliance of GST Law of small business
15 | P a g e
Now
If turnover upto 100 lacs, then Composition Scheme can be availed
Government has changed GST Rates for Manufacturers from 2% to 1% vide Notification 1/2018
Hence, now GST Rates are similar for Traders and Manufacturers
Summary of Rates
Type of Business TILL 31 DEC 2017 FROM 1 JAN 2018

Trader 1% 1%
Manufacturer 2% 2% 1%
Restaurant 5% 5%
Other services N/A N/A
Return and Due Date for Composition Scheme
 It is normally 18th of next Quarter

 However Due date of Return for July-September has been extended to 24 Dec 2017
 Gstr-4 has to be filed for Composition Dealer
Period Due Date
July-Sep 2017 24 Dec 2017
Oct-Dec 2017 18-Jan-18
Jan-March 2018 18-Apr-18
April-June 2018 18-Jul-18
Option to Avail Composition Scheme

Person can opt for Composition Scheme till 31 March 2018
Suppose scheme opted in one month will be effective from Next Month
16 | P a g e
Example
Normal Dealer opts for Composition Scheme by 20 Nov 2017
He will file Composition Dealer Return and Tax starting from 1 Dec 2017
For Composition Dealer

GST Return for July - Sep Quarter to be filed by 24 Dec 2017
2.2. Difference between Normal Dealer and Composition Dealer
NORMAL DEALER COMPOSITION DEALER

They calculate GST Payable by deducting They calculate GST Payable by Paying
OUTPUT GST OUTPUT GST
-INPUT GST At lower rate
(No Input taken)
They file Monthly 3 Returns They file Quarterly Returns
+ +
Annual Returns Annual Returns
(12*3 +1=37 Returns in One Year) (1*4 +1=5 Re turns in One Year)
They can make Interstate Sales as well as local They cannot make Interstate Sales. However,
Sales they can make lower rates
Higher Rate of tax is applicable Rates of tax are lower
(5%,12%,18%,28%) (0.5%-2.5%
It is applicable for large assesses having turnover It is applicable for small assesses having
> 75 1.5 CRORE turnover upto 75 1.5 CRORE in Previous Year
17 | P a g e
2.3. GST Composition Assignment
Question: 1 Goods Purchased from A LTD
PARTICULARS QTY RATE AMT
PLASTIC (In Kg) 200 5 1000
CGST 2.5% 25
SGST 2.5% 25
TOTAL 1050
Suppose Company Wants 200 Kg to Sell it to B LTD at Rs 7 per kg

Make Sales Bill and Tax Computation Assuming he is a Normal Dealer
Answer:
Sales Bill
CGST 2.5% 35
SGST 2.5% 35
TOTAL 1470
Tax Payable Under Normal Scheme
PARTICULARS AMT CGST SGST TOTAL

OUTPUT GST 1400 35 35 70
LESS INPUT GST 1000 25 25 50
GST PAYABLE 12 8 20
He is a Composition Dealer and Tax Rate is 1%

Answer:
Sales Bill

TOTAL 1400
18 | P a g e
Tax Payable Under Composition Scheme
PARTICULARS AMT RATE GST

OUTPUT GST 1400 1% 14
LESS INPUT GST N/A
GST PAYABLE 14
In Which Option less GST is payable

Answer:
Type of Dealer GST Payable

Normal Dealer 20
Composition Dealer 12
Less tax is payable under Composition Scheme
In Which Option Company earns more Profit

Answer:
PARTICULARS Sales Amt Purchase Amt Profit

Normal Dealer 1400 1000 400
Composition Dealer 1388 1050 338
Company earns More Profit in Normal Scheme
Which Option Will buyer prefer if buyer is not Registered in GST?
Answer:
In this Case, total amount including taxes is called Purchase Price
PARTICULARS Purchase Price

Normal Dealer 1470
Purchase from Composition Dealer is less expensive
Which Option Will buyer prefer if buyer is Registered in GST?

In this Case, Purchase Price excluding taxes is Purchase Price

Normal Dealer 1400
19 | P a g e
Hence, it makes no difference to Buyer

CGST 2.5% 25
SGST 2.5% 25
TOTAL 1050
Suppose Company Wants 200 Kg to Sell it to B LTD at Rs 300 Profit
Answer:
Sales Bill

PLASTIC (In Kg) 200 6.5 1300
CGST 2.5% 32.5
SGST 2.5% 32.5
TOTAL 1365

OUTPUT GST 1300 32.5 32.5 65
GST PAYABLE 7.5 7.5 15
Particular Amount
Actual Purchase Price 1050.00
Profit Required 300.00
Price Exlusing GST 1350.00
GST Amt (1/99) 13.64
Total Sales Price 1363.64
Answer
Sales Bill
20 | P a g e
PLASTIC (In Kg) 200 6.818182 1363.64
TOTAL 1363.636

OUTPUT GST 1363.64 1% 13.64
LESS INPUT GST N/A
GST PAYABLE 13.64

Answer:

Normal Dealer 15
Composition Dealer 13.64

Answer:

Composition Dealer 1350 1050 300
Company earns Equal Profit in Both Option
Which Option Will buyer prefer if buyer is not registered in GST?

Answer:

Normal Dealer 1365
Which Option Will buyer prefer if buyer is registered in GST?

Answer
21 | P a g e
Normal Dealer 1300
Hence, it Is cheaper to buyer from Normal Dealer under Composition Scheme.

CGST 3% 25
SGST 2% 25
TOTAL 1050
Suppose Company Wants 50 Kg to Sell it to B LTD at Rs 100 Profit
Answer:
Sales Bill

CGST 3% 8.75
SGST 2% 8.75
TOTAL 367.5

OUTPUT GST 350 8.75 8.75 17.5
GST PAYABLE -32.5
GST CREDIT 16.25 16.25
Particular Amount
Actual Purchase Price 262.50
Profit Required 100.00
Price Exlusing GST 362.50
22 | P a g e
GST Amt (1/99) 3.66
Total Sales Price 366.16
Answer:
Sales Bill

PLASTIC (In Kg) 200 1.830808 366.16
TOTAL 366.1616

OUTPUT GST 366.16 1% 3.66
LESS INPUT GST N/A
GST PAYABLE 3.66

Answer:

Normal Dealer -32.5

Answer

Composition Dealer 362.5 262.5 100
Company earns Equal Profit in Both Option
Which Option Will buyer prefer if buyer is not Registered in GST?

Answer:
23 | P a g e
Normal Dealer 367.5
Which Option Will buyer prefer if buyer is Registered in GST?

Answer

Normal Dealer 350
Hence, it is cheaper to buyer under Composition Scheme
2.4. Who cannot opt for Composition Scheme in GST

1. Service Provider cannot opt for Composition Scheme (However Restaurant can opt for
Composition Scheme)
2. Dealers/Manufactures doing Interstate Sales cant opt for Composition Scheme
3. If having turnover > 100 lacs, 150 lacs then this Scheme cant be availed
4. If paying GST under Reverse Charge, then also Composition Scheme cant be availed.
5. For paying TDS under GST, Composition Scheme is not available
2.5. What are the Rate of Tax under GST Composition Scheme in GST
Particulars Old New

Rate for Composition Dealer 1% Trader, 1% Trader,
2% Manufacturer 1% Manufacturer
5% Restaurant 5% Restaurant
*Manufacturers other than notified are covered here
For Notified Manufacturers, different rates will be applicable
2.6. What are the Returns to be filed by Composition Scheme in GST
Return Name for Composition Scheme Due Date
24 | P a g e
GSTR-4 Quarterly (18 th of Next Quarter)
FORM GSTR-9A Annually (31 December of Next year)
Normal Return forms are not applicable

Example
A dealer for 2018-19 has to file Returns as follows
PERIOD DUE DATE RETURN NAME

APRIL-JUNE 18 JULY 2018 GSTR -4
JULY-SEPTEMBER 18 OCTOBER 2018 GSTR -4
OCTOBER-DECEMBER 18 JANUARY 2019 GSTR -4
JANUARY-MARCH 18 APRIL 2019 GSTR -4
APRIL 2018-MARCH 2019 31 DECEMBER 2019 GSTR -9A
2.7. Penalty on Default by Composition Dealer in GST

This penalty is charged if a person has wrongly claimed the benefit of Composition Scheme
He will be liable to pay
Tax Payable under Normal Scheme
+
Penalty equal to Amount of Such tax
2.8. Invoice to be issued by Composition Dealer in GST

1. A Composition Dealer cannot charge CGST and SGST on Bill and cannot issue Tax Invoice
2. He has to Issue Bill of Supplies in GST
3. Tax is not to be shown Separately in Bill
4. In Invoice, it is to be Mentioned” composition taxable person, not eligible to collect tax on
supplies”
Important Points of Bill of Supply

A bill of supply shall contain Following Details:-
a. name, address and GST IN of the supplier;
b. a consecutive serial number containing only alphabets and/or numerals, unique for a financial
year;
c. date of its issue;
25 | P a g e
d. name, address and GST IN/ Unique ID Number, if registered, of the recipient;
e. HSN Code of goods or Accounting Code for services;
f. description of goods or services;
g. value of goods or services taking into account discount or abatement, if any; and
h. signature or digital signature of the supplier or his authorized representative:
Exemption for Small Amount upto Rs 100

1. if the value of the goods or services supplied is less than Rs 100,Bill of Supply need not be issued
2. For the whole Day, a Consolidated Bill can be Issued
3. However if Buyer demands bill ,then Bill of Supply to be issued even if amount is less than Rs 100.
2.9. Procedure for Registration of Composition Scheme in GST

1. Person should file on Common Portal Intimation in Form CMP-01
This is an intimation that he wants to avail Composition Scheme
2. He shall also give Option to pay tax under Composition Scheme in Form GST REG-01
2.10. Yearly Compliance for Composition Scheme in GST

Intimation in FORM CMP-2
Statement in Form GST ITC-3(Relating to inputs lying in Stock)
This is required within 60 days of commencement of every financial year
Details of Stock in Form GST CMP-03

This is required within 60 days of GST CMP-01
This contains details of Stock including Inward Supply of Goods received from Unregistered Persons
2.11. Validity of Composition Scheme in GST

There is lifetime validity of Composition Scheme under GST
As per Rule 4 of GST Composition Rules,
Option Exercised will remain valid as long as all the conditions mentioned in the said section and rules are
satisfied.
2.12. Withdrawal of Composition Scheme in GST

1. If a Composition Dealer wants to withdraw from Composition Scheme, he can give Intimation in
Form GST CMP-04
26 | P a g e
2. Within 30 days of such option, Intimation in Form GST ITC -01 containing details of stock of inputs
is to be filed
2.13. Notice of Composition Dealer in GST

1. When the proper officer has reason to believe that any provisions by Composition Dealer has not
been complied with, they can give Show Cause Notice in Form GST CMP-05
2. Reply to notice is to be Given in Form CST CMP -06 within 15 days
3. Proper Officer shall issue an order within 30 days of receipt of reply in Form GST CMP-07.
Within 30 days of such option, Intimation in Form GST ITC -01 containing details of stock of inputs
is to be filed
2.14 Advantages of Availing GST Composition Scheme in GST
1. Less Compliance burden as less returns to be filed

2. Rates of tax is lower in Composition Scheme in GST
3. Lesser Details of Records to be Maintained
2.15 Disadvantages of GST Composition Scheme in GST
1. Can't Make Interstate Sales

2. Can't be Claimed by Service Providers
3. Cannot Issue Tax Invoice, so buyer can't take Input tax Credit
2.16. List of Different Forms for Composition Dealers in GST
Form Required Purpose Due Date

Form GST CMP - 01 To opt for scheme by providing Prior to appointed date or within 30
registration holder days of the said date
Form GST CMP - 02 Intimation of Willingness to opt for Prior to commencement of Finacial
Scheme Year
Form GST CMP - 03 Details of stock and inward supplies With in 60 days of exercise of option
from unregistered person
Form GST CMP - 04 Intimation of withdrawal from scheme With in 7 days of occurrence of event
Form GST CMP - 05 Show cause notice on contravention of On contravention
rules or Act by proper officer
Form GST CMP - 06 Reply to show cause Notice Within 15 days
27 | P a g e
Form GST CMP - 07 Issue of order Within 30 days
Form GST CMP - 01 Registration under Composition Scheme Prior to appointed date
Form GST CMP - 01 Details inputs in stock, semi-finished and 30 days of option Withdrawn
finished goods
Form GST CMP - 013 Intimation of ITC available With in 60 days of commencement of
Financial Year
2.17 Which Business can opt for Composition Scheme in GST

If person is doing Sale of Goods (Services not covered, However Restaurant Covered)
+
Doing Only Intrastate Sales (if making out of state sales, then not covered)
+
Turnover is upto 1 Crore in Previous Year (Higher turnover have to maintain proper records and monthly
3 returns)
3. Reverse Charge in GST

3.1. What is Reverse Charge Mechanism (RCM) in GST
Normally, Seller Collects GST from Buyer and Pays to Government
However, in some cases, Buyer Pays GST Directly to Government
This is called Reverse Charge in GST
Example
Suppose A provides Service to B of 100000+GST 18000
In this case, B will pay A Rs 118000 and deposit to Government
However, in Case of Reverse Charge,

A will provide Service to B of 100000
In this case, B will pay A Rs 100000 and deposit remaining directly to Government
28 | P a g e
GST in Case of Goods
Earlier Reverse Charge was applicable in Case of Services only (in Service Tax)
It was not applicable in case of Goods (There was no reverse charge concept in Vat)
However, now in GST, it is applicable in Goods Also
Example
X Sold Goods to B of Rs 100000 Suppose GST Rate is 5%, X will sell goods to Y for Rs 100000 + GST 5% =
105000
Y will pay X Rs 105000 and X will pay 5000 to Government
However, If X is Unregistered in GST, then X cannot charge GST on it Then Reverse Charge will also be
applicable on it
Y will pay X 100000 and deposit 5000 Directly to Government
29 | P a g e
When is Reverse Charge Applicable?
It is applicable as per Section 9(3) and Section 9(4)
1. Section 9(4) - Purchases from Unregistered Dealer were covered here Local Purchases upto 5000
per day were exempt.
2. Section 9(3) - Certain Goods and Services notified by Government were covered like Goods
Transport Agency, Freight etc.
As per decision in GST Council Meeting Section 9(4) has been stopped by Government However, Section
9(3) is still applicable. Hence GST is still applicable on following services
30 | P a g e
Reverse Charge Chart
31 | P a g e
Reverse Charge on Goods
Whether we get input of Reverse Charge?

On Certain Items, No Input will be available like Food, Catering, etc
On Other Items, Input Available Next Month
32 | P a g e
GTA Service To Unregistered Person Exempted
Earlier If Goods Transport Agency (GTA) provided services to Unregistered Persons, they had to pay GST
Because of this GTA were not willing to supply services to Unregistered persons.
Now,
This service has been exempted.
What will be entry of Reverse Charge?

It depends upon whether we get Input of
Ajay Transport
Bill to My Co. A LTD
Freight Charges 100000
TOTAL 100000
Suppose GST Rate is 5% (2.5% CGST, 2.5% SGST)
Entry
Case 1
Bill Received on 10 April
Payment made on 29 April
33 | P a g e
Answer:
No Input of Reverse Charge Input Available of Reverse Charge

10 April 10 April
Freight Exp Dr. 100000 Freight Exp Dr. 100000
To Ajay Transport 100000 To Ajay Transport 100000
29 April 29 April
Ajay Transport 100000 Ajay Transport 100000
To Bank 100000 To Bank 100000
30 April 30 April
Reverse Charge Exp Dr. 5000 Input CGST (Deff) Dr. 2500
To Output CGST 2500 Input SGST (Deff) Dr. 2500
To Output SGST 2500 To Output CGST 2500
(100000 × 2.5%) To Output SGST 2500
After paying GST After paying GST

Output CGST Dr. 2500 Output CGST Dr. 2500
Output SGST Dr. 2500 Output SGST Dr. 2500
Input CGST Dr. 2500

Input SGST Dr. 2500
To Input CGST (Deff) 2500
To Input SGST (Deff) 2500
Case 2
Payment not made within 60 Dys
Answer:

10 April 10 April
30 June 30 June
(100000 × 2.5%) To Output SGST 2500

Input CGST Dr. 2500

Input SGST Dr. 2500
34 | P a g e
Case 3
First Payment in Advance on 25 April then Bill Received later on 18 June.
Answer:

25 April 25 April
30 April 30 April
(100000 × 2.5%) To Output SGST 2500

Input CGST Dr. 2500

Input SGST Dr. 2500
18 June 18 June
When is Output GST Payable, on Bill or Payment?

It depends upon Time of Supply of Goods and Services
Time of Supply Reverse Charge of Goods Time of Supply Reverse Charge of Services
We have to consider earlier of We have to consider earlier of
• Date of Payment • Date of Payment
• 30 Days of Invoice • 60 Days of Invoice
• Date of Receipt
Whether Input can be used to Pay Reverse Charge Liability

No we have to deposit GST Reverse charge Liability from cash Ledger
35 | P a g e
We cannot reduce it from Input Tax Credit available to us
Example
Output GST on Sales 100
Output GST on Reverse Charge 30
Total Output 130
Input GST 110
In this case,
We have to Pay GST on Reverse Charge of 30
We can adjust input of 100 against our Output
Remaining 10 we can carry forward
Summary
36 | P a g e
3.2. GST Reverse Charge Chart List
What are the Different Goods and Services Under Reverse Charge in GST
CASE Seller Person who Deposit Service Tax

Unregistered dealer selling Goods and Unregistered Registered Dealer (Buyer)
Service to a registered dealer Dealer
E-Commerce Transaction Vendor (Ajay E-Commerce Company
Suppose Ajay Enterprises(Vendor) sells Enterprises) (And not Customer)
goods to Customer through E-Commerce
Company
Others Cases (To be Notified by (To be Notified by State and Central

State and Central Government)
Government)
Exemption in Case of Services Upto 5000 per day

Government has issued Notification 8/2017
As per this Notification
Local Purchases upto 5000 per day from all Unregistered Parties are exempt from GST
(This 5000 purchase is combination of Purchases from All Parties Combined
Interstate Purchases are not covered here)
Different Notified Services by GST Council

(Approved in Decision Taken on 19 May 2017)
NAME OF SERVICE SERVICE PROVIDER SERVICE RECEIVER
Import of Service (Service provided Foreign Party Indian Co

from Non-Taxable Territory)
Transport of Goods by Road Goods Transport Any person Registered Under CGST,
Agency UTGST, SGST
Any Factory,
Any Society/Cooperative Society

Registered in India
Anybody corporate(Company)
Any Partnership Firm
Casual Taxable Person
37 | P a g e
Advocate/Legal Service Advocate/Firm of Any business Entity
Advocate
Arbitrary Tribunal Advocate/Firm of Any business Entity
Advocate
Sponsorship Service Any Person Anybody corporate(Company) or
Partnership
Service by Director Director Anybody corporate(Company)
Insurance Agent Service Insurance Agent Insurance Co
Recovery Agent Service Recovery Agent Bank or Financial Institutions
Ocean Freight (Transport of Goods by Foreign Party(Person Importer

Vessel from place outside India to located in Non-
customs clearance in India) Taxable Territory)
Copyright Service related to literary, Author, music Publisher, Music Com, Producer
dramatic, musical, artistic work composer,
photographer, artist
Radio Taxi Service Taxi Driver E Commerce Company
All Service by Government except Govt Business Entity
Renting of Immovable Property
Service by Department of Posts
Service in Relation to Aircraft or vessel
Service of Transport of Goods or

Passengers
Reverse Charge on Goods
S.No. Description of supply of goods Supplier of goods Recipient of goods

1 Cashew nuts, not shelled or Agriculturist Any registered person
peeled
2 Bidi wrapper leaves (tendu) Agriculturist Any registered person
3 Tobacco leaves Agriculturist Any registered person
4 Supply of lottery State Government, Union Territory Lottery distributor or
or any local authority selling agent
5 Silk yarn Any person who manufactures silk
yarn from raw silk or silk worm
cocoons for supply of silk yarn
38 | P a g e
Note:-
GST On Manpower Service
Earlier Reverse Charge Was Applicable on Manpower Service in Service Tax
Now, these are not covered under Reverse Charge in GST if Service Provider is registered in GST
However, if Service Provider is from Unregistered Persons, then it will be covered in Reverse Charge in
GST
39 | P a g e
3.3. GST Implication in case of Unregistered Dealers
Who are Unregistered Dealers in GST

Answer:
We know that Registration Limit in GST is 20 lacs
Those persons having small business or profession and have turnover whose turnover is less than 20 lacs
need not get themselves Registered in GST
Since they are not registered in GST, they cannot charge GST on Bill
What are Different Sales of Unregistered Dealer?

Answer:
Unregistered Dealer can sell to Ordinary Customer
In this case, no GST is payable by either buyer or seller
Unregistered Dealer can sell to Registered Person in GST

Answer:
In this case, Reverse Charge is applicable and Buyer (Registered Person) has to pay GST
40 | P a g e
3.4. Reverse Charge GST in Case of E-commerce Companies
E-Commerce Companies are called Aggregators

This is because they do not sell goods and Services Directly to Customer
They act as middleman between buyer and seller
41 | P a g e
Example of Service in E- Commerce: -
Suppose a Customer Miss Kanika Requires Pest Control Service at her home
She approaches a Website (or App) called Urban Clap and books Service of SK Enterprises for Rs 1000
Miss Kanika pays Rs 1000 online to Urban Clap and Urban Clap keeps 300 Commission pays 700 to SK
Enterprises
In this case, Service Provider is SK Enterprises and Service Receiver is Kanika
Neither of them pays GST
It is paid by E-Commerce Company Urban Clap
Example of Goods in E- Commerce

Suppose a Customer Dinesh shops online at Flipkart and purchase a shirt for Rs 2000
This was sold by Dealer Vishal Trading Company
Flipkart deducts 10% Commission and pays Balance to Vishal Trading Company
In this case, Seller is Vishal Trading Company and Buyer is Dinesh
It is paid by E-Commerce Company Flipkart
42 | P a g e
3.5. Registration Threshold Limit under Reverse Charge in GST
There is Compulsory Registration in GST In case of Reverse Charge

Buyer cannot say that his Invoice amount is less, so need to pay GST
In this case, he has to compulsorily get himself registered in GST and pay tax
Comparison of Normal Charge and Reverse Charge
NORMAL CHARGE REVERSE CHARGE

Registration Limit Reverse Charge
If Aggregate Turnover is greater than 20 lacs, then Compulsory There is Compulsory Registration
Registration No Limit of 20 lacs here
(Limit is 10 lacs for North Eastern States)
Aggregate turnover includes all types of Sales

like
1. Taxable Sales
2. Exempt Sales
3. Export Sales
4. Interstate Sales
5. Sales by Agent of Principal
(Amount of taxes not to be included)
However Compulsory Registration Required for MAKING

1. Interstate Sales
2. Supplying goods on behalf of Other Persons
3. Casual Taxable Person
4. Non-resident taxable persons
43 | P a g e
5. If liable to deduct TDS in GST
6. If liable to deduct TCS in GST
7. Input Service Distributor
8. 8.Making Sale on Behalf of other person (Franchise/Agent)
9. Reverse Charge
10. E-Commerce Companies
11. Online Database Service Provider from Outside India into
India
12. Others as may be Notified
3.6. Point of Taxation & Time and Supply in Reverse Charge in GST
In this case, time of Supply of Goods and Services is Relevant
Time of Supply in case of Goods in Reverse Time of Supply in case of Service in Reverse Charge
Charge
It is the earlier of It is the earlier of
1. Date of Payment 1. Date of Payment
2. 30 Days of Invoice Date 2. 60 Days of Invoice Date
3. Date of Receipt of Goods
Meaning of Date of payment

It means Date of Receipt of Amount by Recipient in Bank Account
Or
Date of Debit in Books by Recipient..Whichever is earlier
Example 1
Time of Supply in case of Goods in Reverse Charge
Suppose Sales Made by A to B of Rs 100000
A is Unregistered but B is Registered
Whether Normal Charge or Reverse Charge Applicable
Answer:
Reverse Charge is applicable as Seller is Unregistered and Buyer is Registered
Suppose Invoice Issued by A on 29 April

Goods were received by B on 2 May along with the Invoice
Payment made on 15 May by cheque
A received cheque on 16 th May and it was cleared on 19 may
44 | P a g e
What is Date of payment of Goods?
Answer:
It means
Date of Receipt of Amount by Recipient in Bank Account:-19 May
Or
Date of Debit in Books by Recipient: -16 May
Whichever is earlier i.e. 16 May
What is time of supply of goods?

Answer:
It is the earlier of
1. Date of Payment: -16 May
2. 30 Days of Invoice Date: -29 May
3. Date of Receipt of Goods: -2 May
Hence time of Supply is 2 May
When is GST Challan and Return to be deposited in this case

Answer:
Since Time of Supply is 2 MAY
It will be shown in Tax Computation of May Month
Challan and Return for the same will be deposited in June
Example 2
Time of Supply in case of Services in Reverse Charge
Suppose Consultancy Service for the month of June provided by a CA RK Jha and Associates Bill Issued on
10 July for Rs 20000
RK Jha is a Small Service provider having less turnover and hence not registered in GST
Payment for the same is made by Infosys Ltd on 15 September by cheque
CA RK Jha received cheque on 16 th September and it was cleared on 19 September
Answer:
Reverse Charge is applicable as Service Provider is Unregistered and Service Receiver is Registered
What is Date of payment of Service?
45 | P a g e
Answer:
It means
Date of Receipt of Amount by Recipient in Bank Account: -19 September
Or
Date of Debit in Books by Recipient: -16 September
Whichever is earlier i.e. 16 September
What is time of supply of Service?

Answer:
1. Date of Payment: -16 September
2. 60 Days of Invoice Date: -60 days of 10 July i.e. 8 September
Hence time of Supply is 8 September
When is GST Challan and Return to be deposited in this case?

Answer:
Since Time of Supply is 8 September
It will be shown in Tax Computation of September
Challan and Return for the same will be deposited in October
3.7. Journal Entries for Reverse Charge in GST

Ajay Transport
Bill to My Co. A LTD
Freight Charges 100000
TOTAL 100000
Suppose GST Rate is 5% (2.5% CGST, 2.5% SGST)
Entry
Case 1
Payment made on 29 April
Answer:

10 April 10 April
46 | P a g e
29 April 29 April
30 April 30 April
(100000 × 2.5%) To Output SGST 2500

Input CGST Dr. 2500

Input SGST Dr. 2500
Case 2
Payment not made within 60 Dys
Answer:

10 April 10 April
30 June 30 June
(100000 × 2.5%) To Output SGST 2500

Input CGST Dr. 2500

Input SGST Dr. 2500
47 | P a g e
Case 3
First Payment in Advance on 25 April then Bill Received later on 18 june
Answer:

25 April 25 April
30 April 30 April
(100000 × 2.5%) To Output SGST 2500

Input CGST Dr. 2500

Input SGST Dr. 2500
18 June 18 June
4. TDS on GST
4.1. What is TDS?

TDS means Tax Deducted at Source.
It is a tax which is to be deducted on some expenses and payments
As per Income Tax Act, persons responsible for making payments are required to deduct TDS at different
rates.
Similarly as per GST Laws also, TDS is required to be deducted on certain payments
Hence 2 TDS will be deducted
1. TDS as per Income Tax
2. TDS as per GST
48 | P a g e
TDS as per Income Tax is deposited to income Tax Department
TDS as per GST will be deposited separately TO State Government in case of SGST and Central
Government in case of UTGST
What is the Rate of TDS in GST?

Rate of TDS IS 1% under GST (Section)
If Payment of Contract is greater than 250000
(Note:- Rs 250000 amount is excluding taxes like GST, IGST, SGST)
49 | P a g e
4.2. On what payments TDS is to be Deducted under GST
It is to be deducted on Such Payments as Notified by Government
(Notification for the same has not yet been issued. It is likely to be included in case of payments like Work
Contract or Construction Service)
Note :- Such payments must be for sales within state
4.3. On what payment TDS is not to be deducted under GST

TDS Is not to be deducted if
1. Amount is upto 250000
2. It is Interstate Sales (Location and place of Service of Supplier is Different from that of Recipient)
4.4. Who has to Deduct TDS in GST

Only following Government Companies are Notified to Deduct TDS.
1. an authority or a board or any other body, -

 set up by an Act of Parliament or a State Legislature
 established by any Government, with fifty-one percent or more participation by way of
equity or control, to carry out any function
2. society established by the Central Government or the State Government or a Local Authority
under the Societies Registration Act, 1860 (21 of 1860)
3. public sector undertakings:
4.5. What are the duties of Deductor under GST

1. He has to compulsorily get himself registered in GST (No limit of 20 lacs in this case)
2. He also has to obtain Tan No
3. He has to deposit TDS under GST BY 10 TH of Next month
4. He has to File GST Return GSTR 7 by 10 th of next month
5. He has to issue TDS Certificate to Deductee within 5 Days of paying the amount by challan (15 thof
next month)
50 | P a g e
4.6. What is the Penalty for Failure to comply with TDS Compliances under GST
1. Penalty for late issue of TDS Certificate is 100 per day upto a maximum of Rs 5000
2. Penalty for Non-Deduction/Short Deduction of TDS has minimum penalty of Rs 10000
3. He shall also be liable to pay interest on late payment under GST at a maximum rate of 18%( Rate
has not yet been notified but it cannot be more than 18%)
4.7. GST Tax Computation and duties of deductee if TDS deducted

What are Duties of Deductee in GST
1. Deductee is the person whose tds is deducted
2. He shall Issue Bill and Collect Payment
3. He shall also collect TDS Certificate for GST Deducted
4. TDS Deducted will be automatically reflected in Electronic Cash Ledger
5. He can claim Credit of TDS Deducted i.e. Reduce TDS from his GST Liability
GST Tax computation Example
Suppose
Output GST =10000,
Input GST=6000
TDS Deduced under GST =1% OF 10000=100
What is GST payable
Answer:
In this case
Output GST=10000
Input GST-6000
GST PAYABLE=10000-6000=4000
Less TDS=100
Balance GST payable=4000-100=3900
4.8. Difference between TDS in Income Tax and TDS in GST

Challan Payment Due date is 7th of next month, However, for March, it is 30 April
TDS in Income Tax TDS in GST

Rate of TDS Under 194C Rate of TDS
Payment to Individual /HUF 1% Tds Rate is 1% in all cases
Payment to Others 2%
51 | P a g e
Applicable only If Deductor is Covered in Tax Audit Applicable in Case of
(Individual/HUF/Partnership having turnover>1 Cr 1. Department of Central Government or State
Or Company ) Government
2. Local Authority
3. Governmental Agencies
4. Others as may be notified
Cut off limit Cut off limit
30000 Single Payment Or 100000 Annual 250,000 Single Contract
Challan payment Challan payment

Due date is 7 th of next month Due date is 10 th of next month
However, for March, it is 30 April (Even for March, it is same)
TDS Return TDS Return
It is to be file quarterly one month from end of It is to be file monthly by 10 th of next quarter
quarter Form No Prescribed is GSTR 7
Except last quarter
April-June->31 July
July-Sep->31 Oct
Oct-Dec->31 Jan
Jan-March->31 May
Form No Prescribed is Form 26Q
TDS Certificate TDS Certificate
It is to be issued quarterly 15 days of filing TDS It is to be issued Monthly 5 days of filing TDS Challan
Return In case of late payment,
In case of late payment, Penalty applicable is 100 Penalty applicable is 100 per day
per day Upto max 5000
5. TCS on GST
5.1. What is TCS in GST?
We know that TCS is applicable on Certain Transactions as per Income Tax Act
Apart from this, TCS is applicable on amount collected by Ecommerce Companies in case of GST
This is called TCS in GST
What is TCS?
TCS Means Tax Collected at Source
It is a tax which is to be collected on Certain Incomes
Suppose A makes Sale of 100000 to B on which TCS @ 1% is applicable
In this Case,
52 | P a g e
A will be collect 101000 from B (100000 Sales Amount+1000 TCS)
A will deposit 1000 TCS with Government
TDS TCS in GST will also be differed to 1 April 2018
5.2. How is TCS Applicable on E-commerce operators in GST?

E-Commerce Operators are website/apps like Flipkart and Amazon
Vendors sell their Goods to Customers through these websites.
There can be two cases:-
Case 1
Reverse charge in GST is notified on transaction
In this case, the E-commerce company pay GST
Example 1:-
Example of Goods in E- Commerce
In this case, Seller is Vishal Trading Company and Buyer is Dinesh
It is paid by E-Commerce Company Flipkart
53 | P a g e
Case 2
Reverse charge in GST is not applicable (Not notified on transaction)
In this case, the vendor pay GST
E-commerce company deducts TCS on the transaction
Example
Suppose there is no reverse charge and TCS Rate is 1%
Flipkart has to pay 1800 to Vishal Trading Company it will charge 1% TCS on this 1800 i.e Rs 18
Hence actual amount paid to Vishal Trading company=1800 - 18 = Rs1782
54 | P a g e
Summary
Those transactions which are not covered in Reverse Charge in GST will be covered here
COVERED IN REVERSE CHARGE NOT COVERED IN

FLIPKART pays GST in this case on Sales Amount Flipkart Does not pay GST in this Case on Sales Amount
No TCS is applicable in this case TCS at 1% is to be deducted from Vendor
Vendor does not pay GST Vendor pays GST and Deducts TCS Amount
5.3. What is the Rate of TCS under GST

1. TCS Rate has not yet been determined by Central Government
2. It will be decided after having consultation with Central Government
3. However, the same cannot exceed 1% as per Section 52 of CGST Act
5.4. TCS Computation in Case on GST

TCS is to be charged on Net Value of Taxable Supplies
Net Value of Taxable Supplies = Sales (Aggregate Value of Taxable Supplies Made) Less Sales Return
(Aggregate Value of Taxable Supplies Returned)
Note:- Exempt Sales not covered, only taxable sales covered
Example 1
Flipkart Sells goods to customer for Rs 100000

It charges Rs 30000 Commission and pays Balance to Vendor
Hence, the amount payable to Vendor is 70000
What is TCS to be deposited
Answer:
Flipkart will deduct 1% Commission on this 70000 i.e. Rs 700
Balance Amount it will pay to Vendor=70000-700=69300
Example 2
Suppose in last Case, there is Sales Return of Rs 20000
Answer:
Net Amount Payable to Vendor=70000-20000=50000
55 | P a g e
5.5. Procedure to be followed by E-commerce companies in case of TCS
1. They have to compulsorily get themselves registered in GST

2. They have to Deduct TCS on 1%
3. TCS is to be deposited to Government by 10 TH of next month
4. Return of TCS Deducted (Aggregate Value of taxable Sales, Sales Return and TCS) is to be given by
10 TH of next month
5. Annual Return is also to be given by 31 December of Next year.
Revised TCS Return in Case Of GST
1. In case of any error/omission, E Commerce Companies can file Revised Return.

2. However, this Return cannot be filed in case of scrutiny, audit, inspection by GST Department
3. Last Date of filing Revised TCS Return for GST is
 Date of Filing Annual Return
 30 September of Next Financial Year
Whichever is earlier
5.6. Procedure to be followed by vendor whose TCS deducted by E-commerce company

If vendor is not registered in GST, GST deducted will be his expense
If he is registered in GST, he can reduce the same from his tax liability
Example 1
Flipkart Sells goods to customer for Rs 100000
It charges Rs 30000 Commission and pays Balance to Vendor
What is TCS to be deposited
Answer:
Hence, the amount payable to Vendor is 70000
Suppose GST Rate on Goods is 5%. What is GST Payable by Vendor

Answer:
Sales Amount Including Taxes=70000
GST Rate=5%
Sales Amount Excluding GST=70000*100/105=66667
56 | P a g e
GST=5%*66667=3333
Total=66667+3333=70000
Output GST=3333
Input GST=0(Assumed)
GST payable=3333-0=3333
He can reduce TCS from his GST Liability and pay balance amount to Government
TCS=700
Balance GST payable=3333-700=2633
6. Accounting Entries in GST
6.1. Entries for Sales and Purchase in GST
DETAILS OF LOCAL PURCHASES

A LTD Bill to:- My Co
Particular Amount
PLASTIC 100000
20000 KG*50
CGST 9% 9000
SGST 9% 9000
TOTAL 118000
DETAILS OF LOCAL SALES

MY CO Bill to:- X Ltd
Particular Amount
PLASTIC 160000
20000 KG*80
CGST 9% 14400
SGST 9% 14400
TOTAL 188800
ENTRY FOR LOCAL PURCHASE :-

Purchase Local Plastic A/c Dr 100000
57 | P a g e
Input CGST 9% Dr 9000
Input SGST 9% Dr 9000
To A Ltd 118000
ENTRY FOR LOCAL SALES :-

X LTD Dr 188800
To Sales Local Plastic 160000
To Output CGST 9% 14400
To Output SGST 9% 14400
DETAILS OF CENTRAL PURCHASES

Particular Amount
PLASTIC 100000
20000 KG*50
IGST 18% 18000
TOTAL 118000
DETAILS OF CENTRAL SALES

Particular Amount
PLASTIC 160000
20000 KG*80
IGST 18% 28800
TOTAL 188800
ENTRY FOR CENTRAL PURCHASE :-

Purchase Central Plastic A/c Dr 100000
Input IGST 18% Dr 18000
To A Ltd 118000
ENTRY FOR CENTRAL SALES :-

X LTD Dr 188800
58 | P a g e
To Sales Central Plastic 160000
To Output IGST 18% 28800
How to Prepare Ledgers and Groups in tally
6.2. Entries for Output and Input Adjustment in GST

Bill to:- My Co
Particular Amount
PLASTIC 100000
20000 KG*50
CGST 9% 9000
SGST 9% 9000
TOTAL 118000
DETAILS OF SALES
Bill to:- X Ltd
Particular Amount
PLASTIC 160000
20000 KG*80
59 | P a g e
CGST 9% 14400
SGST 9% 14400
TOTAL 188800
ENTRY FOR PURCHASE :-

Purchase Local Plastic A/c Dr 100000
To A Ltd 118000
ENTRY FOR SALES :-

X LTD Dr 188800
ENTRY FOR ADJUSTMENT OF OUTPUT AND INPUT CGST

Output CGST 9% 14400
To Input CGST 9% 9000
To CGST Payable 5400
ENTRY FOR ADJUSTMENT OF OUTPUT AND INPUT SGST

Output SGST 9% 14400
To Input SGST 9% 9000
To SGST Payable 5400
Suppose Amount Deposited in Electronic Cash ledger (GST PMT-05) Rs 11500. Pass Entry
Electronic Cash ledger (GST PMT-05) A/c Dr 11500
To Bank 11500
GST Liability adjusted Against Electronic Cash ledger (GST PMT-05). Pass Entry
CGST Payable Dr 5400
To Electronic Cash Ledger(GST PMT-05) 5400
SGST Payable Dr 5400
60 | P a g e
Entry for Balance Left in GST PMT-05. Pass Entry

1. Balance Left in GST PMT-05=11500-5400-5400=700
2. No Entry will be passed for the same
3. It will be used for Adjusting GST Payable for the next period
6.3. Entries for Multiple Rates Local Sales and Purchase in GST
DETAILS OF PURCHASES : -
Particular Amount
PLASTIC 100000
20000 KG*50
CGST 9% 9000
SGST 9% 9000
TOTAL 118000
B LTD Bill to:- My Co
Particular Amount
RUBBER 20000
40 KG*500
CGST 2.5% 500
SGST 2.5% 500
TOTAL 21000
DETAILS OF SALES :-
Particular Amount
PLASTIC 160000
20000 KG*80
CGST 9% 14400
SGST 9% 14400
TOTAL 188800
61 | P a g e
MY CO Bill to:- Y Ltd
Particular Amount
RUBBER 24000
40 KG*600
CGST 2.5% 600
SGST 2.5% 600
TOTAL 25200
ENTRY FOR PURCHASE : -

Answer:
Purchase Local Plastic A/cDr 100000
To A Ltd 118000
Purchase Local Rubber A/cDr 20000

Input CGST 2.5% Dr 500
Input SGST 2.5% Dr 500
To A Ltd 21000
ENTRY FOR SALES:-

X LTD Dr 188800
X LTD Dr 25200
To Sales Local Rubber 24000
To Output CGST 2.5% 600
To Output SGST 2.5% 600
ENTRY FOR ADJUSTMENT OF OUTPUT AND INPUT CGST
62 | P a g e
Output CGST 9% 14400
Output CGST 2.5% 600
To Input CGST 2.5% 500
ENTRY FOR ADJUSTMENT OF OUTPUT AND INPUT SGST

Output SGST 9% 14400
Output SGST 2.5% 600
To Input SGST 2.5% 500
To SGST Payable 5500
Suppose Amount Deposited in Electronic Cash ledger(GST PMT-05) Rs 10500.700 Opening Balance
Available
Electronic Cash ledger(GST PMT-05) A/c Dr 10500
To Bank 10500
GST Liability Adjusted Against Electronic Cash ledger(GST PMT-05). Pass Entry
CGST Payable Dr 5500
SGST Payable Dr 5500

Entry for Balance Left in GST PMT-05. Pass Entry

1. Balance Left in GST PMT-05=700+10500-5500-5500=200
2. No Entry will be passed for the same
3. It will be used for Adjusting GST Payable for the next period
6.4. Entries for Closing GST Credit

DETAILS OF PURCHASES:-
63 | P a g e
Particular Amount
PLASTIC 100000
20000 KG*50
CGST 9% 9000
SGST 9% 9000
TOTAL 118000
DETAILS OF SALES :-
Particular Amount
PLASTIC 80000
10000 KG*80
CGST 9% 7200
SGST 9% 7200
TOTAL 94400
ENTRIES FOR LOCAL SALES AND PURCHASE IN GST

To A Ltd 118000
ENTRY FOR SALES:-

X LTD Dr 94400
ENTRY FOR ADJUSTMENT OF OUTPUT AND INPUT CGST. Pass Entry

Output CGST 9% 7200
Electronic Credit Register CGST (PMT-02) 1800
64 | P a g e
ENTRY FOR ADJUSTMENT OF OUTPUT AND INPUT SGST. Pass Entry
Output SGST 9% 7200
Electronic Credit Register SGST (PMT-02) 1800
6.5. Entries for Opening GST Credit

DETAILS OF PURCHASES :
Particular Amount
PLASTIC 60000
20000 KG*30
CGST 9% 5400
SGST 9% 5400
TOTAL 70800
DETAILS OF SALES
Particular Amount
PLASTIC 90000
15000 KG*60
CGST 9% 8100
SGST 9% 8100
TOTAL 106200
ENTRIES FOR LOCAL SALES AND PURCHASE IN GST
To A Ltd 70800
ENTRY FOR SALES:-

X LTD Dr 106200
65 | P a g e
ENTRY FOR ADJUSTMENT OF OUTPUT AND INPUT CGST,ASSUME THERE IS OPENING BALANCE OF 2400
IN CGST PMT-04 ELECTRONIC CREDIT REGISTER. Pass Entry
Output CGST 9% 8100
To Electronic Credit Register CGST(PMT-02) 2400
To CGST Payable 300
ENTRY FOR ADJUSTMENT OF OUTPUT AND INPUT SGST,ASSUME THERE IS OPENING BALANCE OF 1200
IN SGST PMT-04 ELECTRONIC CREDIT REGISTER. Pass Entry
Output SGST 9% 8100
To Electronic Credit Register CGST(PMT-02) 1200
6.6. How to Pass GST Entries in Tally
Relevant Groups and Ledgers in Tally for GST Entries
66 | P a g e
6.7. Journal Entries Receipt on Advance in GST
CASE 1
First Bill Issued then Amt Received
SALES 100000 + 18000 GST ON 19 AUG TO A LTD
PAYMENT RECEIVED ON 24 OCT.
PASS ENTRIES
19/08/2016
A LTD Dr. 118000
TO OUTPUT CGST 9% 9000
TO OUTPUT SGST 9% 9000
TO SALES A/C 100000
24/10/2016
BANK A/C Dr. 118000
A LTD 118000
CASE 2
Payment Received in Advance
WHOLE PAYMENT RECEIVED IN ADVANCE ON 24 JULY.
PASS ENTRIES
24/07/2016
BANK A/C Dr. 118000
To A LTD 118000
31/07/2016
For Creating Tax Liabilities For Advance
TAX ON ADVANCE Dr. 18000
To OUTPUT CGST 9% 9000
To OUTPUT SGST 9% 9000
67 | P a g e
Go to Accounting Voucher (journal) --->Stat Adjustment--->Nature of Adjustment --->Increase in liabilities
--->additional details --->On Account of Advance receipt
19/08/2016
A LTD Dr. 118000
TO SALES A/C 100000
31/08/2016
Adjustment on tax paid in advance
OUTPUT CGST 9% 9000
OUTPUT SGST 9% 9000
TO TAX ON ADVANCE 18000
Go to Accounting Voucher (journal) --> Stat Adjustment --> Nature of Adjustment --> Decrease in
liabilities --> additional details --> On Account of Advance receipt -->Sales Against Advance Receipt
CASE 3
Partial Payment Received in Advance
30% PAYMENT RECD ON 24 JULY.
BALANCE ON 24 OCT
PASS ENTRIES
24/07/2016
BANK A/C 35400
TO A LTD 35400
31/07/2016
TAX ON ADVANCE Dr . 5400
68 | P a g e
19/08/2016
A LTD 118000
TO SALES A/C 100000
31/08/2016
OUTPUT CGST 9% 2700
OUTPUT SGST 9% 2700
24/10/2016
BANK A/C 82600
TO A LTD 82600
(118000-35400)
CASE 4
Lumpsum Payment Received in Advance
30000 PAYMENT RECD ON 24 JULY
BALANCE ON 24 OCT
PASS ENTRIES
24/07/2016
BANK A/C Dr. 30000
TO A LTD 30000
31/07/2016
TAX ON ADVANCE Dr . 4576
69 | P a g e
19/08/2016
A LTD Dr. 118000
TO SALES A/C 100000
31/08/2016
OUTPUT CGST 9% Dr 2288
OUTPUT SGST 9% Dr. 2288
24/10/2016
BANK A/C 88000
TO A LTD 88000
(118000-30000)
70 | P a g e
7. Time and Supply of Goods and Services
7.1. What is Time and Supply of Goods?

It is the time Sale of goods will become taxable under GST
IF Time and Supply of Goods is in September that means goods become taxable in September.
We will take the same in September computation and tax on it will be paid in October
Note :- In Service Tax, there was similar concept earlier which was called Point of Taxation.
When is GST Payable?

 Is it at the time of Sales?
 Is it at the time of Issue of Invoice?
 Is it at the Time of Receipt of Money?
This is determined with the help of Section 12 of CGST Act
What is Time of Supply as per Section 12 of CGST Act?

Time of Supply is
Earlier of
 Date of Invoice
 Last Date of Issue of Invoice
 Date of Payment
71 | P a g e
Note:-
Last Date of Issue of Invoice is
CASE LAST DATE OF ISSUE OF INVOICE

When Supply Involves movement of Goods Time of Removal of Goods
(Goods Delivered to Customer) (Time of sending goods to recipient)
Other Cases (Goods taken from Shop) At the time of delivery of goods to recipient (customer)
What is Date of payment

It is Date of Receipt of Amount in Bank Account
Or
Date of Debit by Recipient, Whichever is earlier
Example 1
Suppose Goods Sold to Customer on 10 May but received by Customer on 11 May. The Bill issued to
Customer on 15 May. Amount is received from customer on 20 May by cheque which was cleared on 22
May
What is last date of issue of Invoice
Last date of issue of invoice is date of Removal of Goods for Supply to Recipient I,e,10 May
What is Date of payment

It is Date of Receipt of Amount in Bank Account:-22 May
Or
Date of Debit by Recipient: - 20 May , Whichever is earlier :- 20 May
What is Time of Supply?

Time of Supply is
Earlier of
 Date of Invoice:- 15 May
 Last Date of Issue of Invoice :-10 May
 Date of Payment :- 20 May
Hence, Time of Supply is 10 May
Example 2 :- Amount Received in Advance

Suppose Company entered into a Contract to Sell goods for Rs 100000+ 3% CGST+2% SGST
It received full payment in advance on 20 July by NEFT
Goods taken by Customer from shop on 18 September and Invoice issued Same Date
72 | P a g e
What is last date of issue of Invoice?
It is date of Delivery of goods i.e. 18 September

Time of Supply is
Earlier of
 Date of Invoice:- 18 September
 Last Date of Issue of Invoice :-18 September
 Date of Payment :- 20 July
Hence, Time of Supply is 20 July
RECEIPT OF PARTIAL ADVANCE

Suppose Company entered into a Contract to Sell goods for Rs 100000+ 3% CGST+2% SGST
It received 20% payment in advance on 20 July
Goods taken by Customer from shop on 18 September and Invoice issued Same Date
Balance Payment made on 11 November
What is last date of issue of Invoice
It is date of Delivery of goods i.e. 18 September

Time of Supply will be calculated separately for 20% Advance and 80% Balance Payment
TYPE OF ADVANCE 20% 80%

1.DATE OF INVOICE 18 Sep 18 Sep
2.LAST DATE OF INVOICE 18 Sep 18 Sep
3.DATE OF PAYMENT 20 July 11 November
TIME OF SUPPLY (Earlier of 3) 20 July 18 Sep
SMALL AMOUNT RECEIVED IN ADVANCE UPTO Rs 1000

Example:-
Suppose Sales Service Provided for Rs 1000+12% CGST+6% SGST
Total Amount Due =1000+120+60=1180
Customer paid lumpsome 1200 . He asks to adjust balance 20 in next bill
Hence 20 Received in Advance from Customer
Does the company need to pay tax on this 20 Extra Received?
73 | P a g e
Answer:
It is optional to Customer
It can either pay tax on this 20 Advance now
Or
Later at the time of next bill
This facility is available only if advance amount is upto 1000
7.2. Time and Supply of Services
What is Time and Supply of Services?

It is the time Sale of services will become taxable under GST
IF Time and Supply of Services is in September that means goods become taxable in September.
We will take the same in September computation and tax on it will be paid in October
Note :- In Service Tax, there was similar concept earlier which was called Point of Taxation.
When is GST Payable?

 Is it at the time of Service Provided?
 Is it at the time of Issue of Invoice?
 Is it at the Time of Receipt of Money?
This is determined with the help of Section 13 of CGST Act
When is Invoice to be Issued in Case of Services

Invoice is to be issued within 30 days of providing service
However for Banks, NBFC, Period is 45 days
What is Time of Supply as per Section 12 of CGST Act?

Time of Supply depends upon whether Invoice issued within prescribed time or not
Invoice Issued Within Invoice Not Issued Within Other Cases (Cases Where Invoice not
Prescribed Time Prescribed Time to be Issued )
Time of Supply is Time of Supply is Time of Supply is
 Date of Invoice  Date of Providing  Date of Receipt of Service in
 Date of Receipt of Service Books of Account as shown by
Payment
74 | P a g e
Whichever is earlier  Date of Receipt of Recipient of Service(Service
Payment Receiver)
Whichever is earlier
Example:-
Suppose Service Provided on 10 May.
What is Last Date to Issue Invoice
Answer:
It is 30 days from the date of providing the service
i.e. 30 days from 10 May
i..e 9 June
Suppose Invoice issued on 1 June but payment Received by NEFT on 18 Aug.What is Time of Supply of
Service
Answer:
Invoice is issued within 30 Days.

Hence Time of Supply is
 Date of Invoice:-1 June’
 Date of Receipt of Payment:-18 Aug
Whichever is earlier i.e. 1 June
Suppose Invoice issued on 15 June but payment Received by NEFT on 18 Aug.What is Time of Supply of
Service
Answer:
Invoice is Not issued within 30 Days.Hence
Hence Time of Supply is
 Date of Providing Service:-10 May
 Date of Receipt of Payment:-18 Aug
SMALL AMOUNT RECEIVED IN ADVANCE UPTO Rs 1000

Example:-
Suppose Sales Service Provided for Rs 1000+12% CGST+6% SGST
Total Amount Due =1000+120+60=1180
Customer paid lumpsome 1100 . He asks to adjust balance 20 in next bill
Hence 20 Received in Advance form Customer.
75 | P a g e
Does the company need to pay tax on this 20 Extra Received?
Answer:
It is optional to Customer
It can either pay tax on this 20 Advance now
Or
Later at the time of next bill
This facility is available only if advance amount is upto 1000
7.3. Point of Taxation & Time and Supply in Reverse Charge in GST
In this case, time of Supply of Goods and Services is Relevant
Time of Supply in case of Goods in Reverse Time of Supply in case of Service in Reverse Charge
Charge
It is the earlier of It is the earlier of
1. Date of Payment 1. Date of Payment
2. 30 Days of Invoice Date 2. 60 Days of Invoice Date
3. Date of Receipt of Goods
Meaning of Date of payment

It means Date of Receipt of Amount by Recipient in Bank Account
Or
Date of Debit in Books by Recipient ..Whichever is earlier
Example 1
Time of Supply in case of Goods in Reverse Charge
Suppose Sales Made by A to B of Rs 100000
A is Unregistered but B is Registered
Answer:
Reverse Charge is applicable as Seller is Unregistered and Buyer is Registered
Suppose Invoice Issued by A on 29 April

Goods were received by B on 2 May along with the Invoice
Payment made on 15 May by cheque
A received cheque on 16 th May and it was cleared on 19 may
What is Date of payment of Goods
Answer:
It means
76 | P a g e
Date of Receipt of Amount by Recipient in Bank Account:-19 May
Or
Date of Debit in Books by Recipient: -16 May
What is time of supply of goods?

Answer:
1. Date of Payment: -16 May
2. 30 Days of Invoice Date: -29 May
3. Date of Receipt of Goods: -2 May
Hence time of Supply is 2 May

Answer:
Since Time of Supply is 2 MAY
It will be shown in Tax Computation of May Month
Challan and Return for the same will be deposited in June
Example 2
Time of Supply in case of Services in Reverse Charge
Suppose Consultancy Service for the month of June provided by a CA RK Jha and Associates Bill Issued on
10 July for Rs 20000
RK Jha is a Small Service provider having less turnover and hence not registered in GST
Payment for the same is made by Infosys Ltd on 15 September by cheque
CA RK Jha received cheque on 16 th September and it was cleared on 19 September
Answer:
Reverse Charge is applicable as Service Provider is Unregistered and Service Receiver is Registered
What is Date of payment of Service?

Answer:
It means Date of Receipt of Amount by Recipient in Bank Account: -19 September
Or
Date of Debit in Books by Recipient: -16 September
Whichever is earlier i.e. 16 September
77 | P a g e
What is time of supply of Service?
Answer:
1. Date of Payment: -16 September
2. 60 Days of Invoice Date: -60 days of 10 July i.e. 8 September
Hence time of Supply is 8 September

Answer:
Since Time of Supply is 8 September
It will be shown in Tax Computation of September
Challan and Return for the same will be deposited in October
7.4. Time of Supply in case of Supply of Vouchers in GST
In case of supply of vouchers by a supplier, the time of supply shall be—

1. the date of issue of voucher, if the supply is identifiable at that point; or
2. The date of redemption of voucher, in all other cases.
Example 1:-
Suppose a Cloth Showroom Sold Gift Voucher to Customer for Rs 2000 on 10 May
Customer can use Gift voucher to Purchase anything
Actual Goods Purchased by Customer on 11 June for Rs 2400
Customer redeemed voucher and paid balance 400
What is Time of Supply in this case
Answer:
Supply is not identifiable at the point of issue of voucher

Hence, Time of Supply is Date of Redemption of Voucher i,e 11 June
Example 2-
Suppose a Cloth Showroom Sold Gift Voucher to Customer for Rs 2000 on 10 May
Customer can use Gift voucher to Purchase only a Specific Shirt
Actual Goods of shirt was done by Customer on 11 June
What is Time of Supply in this case?
78 | P a g e
Answer:
Supply is identifiable at the point of issue of voucher
Hence, Time of Supply is Date of Issue of Voucher i,e 10 May
8. Input Tax Credit in GST
8.1. Input GST Available only on Receipt of Goods and Services

Example 1
Suppose Company Entered into a Contact for purchasing goods from A Ltd on 10 May for Rs 100000+18%
GST.
Payment for the same made on 10 May
Goods along Invoice Received on 17 May but received in factory on 18 May
On what date is Input Available?
Answer:
Input is available on 18 May i.e Date of Receipt of Goods
Example 2
Goods Sold by A to B on 15 May from shop.
Invoice issued on that date.
B took the goods to his factory on 16 May
Payment Made on 17 May
Answer:
In this goods are received at the shop itself and not at factory
Example 3
Suppose Mr X has a shop in Delhi
He gets order from his customer Y in Bangalore
Y asks to not send goods to him to Bangalore but deliver it Directly to his customer Z in Gurgaon
In this case, Y has not received goods
79 | P a g e
Can Y take input of Goods Purchased from X
Answer:
Yes
Even if goods sent on behalf of buyer to third person, still it t shall be deemed that the registered person
has received the goods
As per Section 16 OF CGST,

For the purposes of this clause, it shall be deemed that the registered person has received the goods where
the goods are delivered by the supplier to a recipient or any other person on the direction of such
registered person, whether acting as an agent or otherwise, before or during movement of goods, either
by way of transfer of documents of title to goods or otherwise
8.2. GST Input in Case Payment Not Made
Input Available on Date of Receipt of Goods

But payment should be made within 180 days from date of Invoice
Example 3
Goods Sold by A to B on 15 May from shop.
Invoice issued on that date.
B took the goods to his factory on 16 May
Payment not yet made
Answer:
Can Input be taken even if Payment not made?

Answer:
Yes, Input Tax Credit can be taken even if payment not made
However, Credit on Same has to be reversed if Payment not made within 180 Days from Date of Invoice
(As per Rule 2 of GST Input Tax Credit Rules,2017)
In Which Month Computation Reversal of Input to be shown?

Answer:
Reversal is to be shown in
Month immediately following the period of one hundred and eighty days from the date of issue of invoice.
Date of Invoice=15 May
80 | P a g e
180 days from Date of Invoice=11 Nov
Following Month=December
It is to be shown in FORM GSTR-2 of December Month
As per Rule 2 of GST Input Tax Credit Rules,2017

Reversal of input tax credit in case of non-payment of consideration
1. A registered person, who has availed of input tax credit on any inward supply of goods or services
or both, but fails to pay to the supplier thereof the value of such supply along with the tax payable
thereon within the time limit specified in the second proviso to sub-section (2) of section 16, shall
furnish the details of such supply and the amount of input tax credit availed of in FORM GSTR-2 for
the month immediately following the period of one hundred and eighty days from the date of issue
of invoice.
2. The amount of input tax credit referred to in sub-rule (1) shall be added to the output tax liability of
the registered person for the month in which the details are furnished.
3. The registered person shall be liable to pay interest at the rate notified under sub-section (1) of
section 50 for the period starting from the date of availing credit on such supplies till the date
when the amount added to the output tax liability, as mentioned in sub-rule (2), is paid.
8.3. Conditions to Claim Input Tax Credit in GST

1. Person should be in possession of Invoice/Debit Note/Other Documents
2. He has Received Goods
3. Tax Charged has Actually been paid to Government in Cash /Credit
4. He has furnished GST Return
Example
Suppose Good Sold by A to B of Rs 100000+5% GST.
In this case, A has to deposit 5000 GST to the government
In this case, if A does not deposit this 5000 Output, then B will not get Input of the same in his Return
A can deposit this Output by
 Either Paying Challan
 Or Using his Input tax credit on purchase if available
81 | P a g e
8.4. What is last Date of Taking Input Tax Credit in GST
As per Section 16 of GST

Last Date of Taking Input Tax Credit is
1. Due date of furnishing of the return under section 39 for the month of September following the
end of financial year to which such invoice or invoice relating to such debit note pertains or
2. Furnishing of the relevant annual return, whichever is earlier.
Example
Invoice Date is 10 June 2017
It is of Financial Year 2017-18
End of Financial Year is in 31 March 2018
September following End of Financial Year is Return of September 2018
Suppose Due Date of Return of September 2018 is 15 October 2018
Hence
Last Date of taking Input is 15 Oct 2018
However if Annual Return of 2017-18 is filed before 15 October 2018,(Suppose on 20 September 2018)
then Last date of taking Input is 20 September 2018
Note:-
Due Date Of Annual Return of GST is 31 December 2018 for Financial Year 2017-18
If Return filed on 31/10/2018,Last date of taking Input is 15 October 2018 (Due Date of Return of
September)
8.5. Important Points of Input Tax Credit in GST
Types of Input GST

Answer:
INPUT GST IS OF 3 TYPES
 Inputs : - Any goods direct or indirect used for furtherance or business
 Capital Goods : - Any Machine or Fixed Asset (Capitalized in books) direct or indirect used for
furtherance or business
 Input Services : - Any service used for furtherance of business
All these can be Directly or Indirectly used in Business
82 | P a g e
When is the date of Input Available?
Answer:
Input Available on Date Goods Received in Premises and Not Invoice Date
However, on Sales, Output to be Given as per Date of Invoice
If goods received in lots, input available on Date Final lot received
When is no Input Tax credit Available in GST?

Answer:
Food and Beverages Execept or same type of service

Outdoor Catering
Beauty Treatment
Health Services
Cosmetic and Plastic Surgery
Membership of a Club
Health and Fitness Centre
Rent - a- Cab except when made obligatory by govt
Life Insurance for same type of service
Health Insurance
Travel Benefits (LTC)
Works Contract Services Except or same type of service
83 | P a g e
Goods or Services on which tax has been paid under
section 10(Composition Scheme)
Goods or Services received by a non-resident taxable
person
Goods or Services used for personal consumption;
Goods Lost, Stolen, Destroyed, written off or disposed
Tax paid in accordance with the provisions of sections 74,
129 and 130(Tax levied because of fraud, misstatement,
confiscation of goods).
Important points of capital Goods

Answer:
1. All fixed assets are Capital Goods even if not Directly Used for production
2. If Machine capitalized in books, it is a Capital Goods If Machine Capitalized in books, it is a Capital
Goods.
If Machine not capitalized in books, it is Inputs.
Those additions to assets which Increase efficiency of asset beyond its previous capacity are
capitalized.
Inputs of Motor Vehicles

Answer:
Inputs of Motor Vehicles will be available as follows
 Goods Transport
For All
 Passenger Transport
Input Available only to
Car Selling Business
Passenger Transport Business
Motor Driving Training Business
8.6. Important Points of Job Workers in GST
What is the Job Workers?

A Job Workers is the person who manufactures goods on behalf of some other person.
Example:-
Suppose i have a factory. It is not necessary that all the manufacturing or processing is done by me. Some
of it may be outsourced to some other person, like coloring, dyeing, repairing. This person is called Job
Workers.
84 | P a g e
What is meant by Goods Sent Directly to Jobworker?
Answer:
Suppose manufacturer purchases the goods from A LTD
He ask A LTD not to delivered to goods to him, but sent directly to the Jobworker, this is called goods sent
directly to Job Worker.
85 | P a g e
In GST, Can the Manufacturer take input on Goods Received directly by Jobworker?
Answer:
Input can be taken by Manufacturer on the Date Goods are Received by Job Worker
 However, it should be received by Factory or Sold from Job Worker premises within 1 year of
Receipt of Goods
 If not received back or sold within 1 year, then it will be Deemed that Goods were sold to Job
worker and duty will be paid on it to gather with interest
 This interest shall be calculated from date of receipt of goods
 This period is 3 years in case of Capital Goods
86 | P a g e
What are the time period of Return of Goods?
Time Period for Return of Goods

Inputs One Year
Capital Gods Three Years
Mould/Dies Not applicable as these are consumed in Production
What is statutory compliance to be made in case of goods sent to Jobworkwer?

Answer:
The Manufacturer has to fill ITC-04 Form at GST Portal
This form contains details of
Goods Sent to Jobworker
Goods Received from Jobworker
Goods Sent from one Jobwoker to another jobworker
Direct Sale of goods from Jobworker premises
Oflfine utility of form can be downloaded from
https://www.gst.gov.in/download/itc04
The return form is to be filed Quarterly
Due date is
July-Sep 2017 31 Dec
Oct-Dec 25 Jan
9. Place of Supply in GST
9.1. What is Place of Supply in GST

 When location of Supplier and Place of Supply is in Different States, it is Interstate Supply of Goods
 Goods Imported into India till they cross Custom Frontiers of India shall also be Interstate Supply
of Goods
How to Determine Place of Supply
Case What is Place of Supply
Movement of Goods Location of Goods at the time Movement of Goods

Terminates
Movement of Goods by Transfer of Title Place of Business of Person on Whose Directions Good Given
87 | P a g e
Goods Assembled at Premises Place of installation
No Movement of Goods Location of Goods at the time of Delivery to Recipient
Goods Unboard a Conveyance Location of Goods Where Goods are taken on Board
10. Input Services Distributor
10.1. Example Input Service Distributor in GST
Example
Suppose a company has 2 branches at Mumbai and Bangalore
Mumbai Branch receives bill as follows
A Ltd
Bill to X Ltd, Mumbai A LTD
Consultancy Charges for Bangalore Branch 10000
CGST 6% 600
SGST 6% 600
TOTAL 11200
Hence, it is an expense of Bangalore Branch but it is received by Mumbai Branch
Mumbai Branch now wants to charge Amount from Bangalore Branch Can it do so?
Answer:
Yes, it has to issue Invoice or Debit Note) (to Bangalore Branch
Can it charge GST on its Invoice?

Answer:
If Mumbai Branch is registered as Input Service Distributor, it can charge GST
If it is not registered as Input Service Distributor it cannot charge GST
88 | P a g e
Make Bill assuming Mumbai Branch is not registered as Input Service Distributor
Answer:
DEBIT NOTE
Mumbai Branch
Bill to Bangalore Branch
Particulars Amt
Charges for Consultancy Paid on Behalf of Bangalore Branch 11200
(inclusive of taxes)
89 | P a g e
In this case, Bangalore Branch will not be able to take input of expense
Make Bill assuming Mumbai Branch is registered as Input Service Distributor

Answer:
TAX INVOICE
Mumbai Branch
Bill to Bangalore Branch
Particulars Amt
Charges for Consultancy Paid on Behalf of Bangalore Branch 10000
ADD CGST 9% 600
ADD SGST 9% 600
11200
In this case, Bangalore Branch will be able to take the input of expense. It will show it as ISD Credit
Noida Branch will be able to show it as Input Tax Credit.
Make Input Tax Credit ledger in books of ISD

Answer:
PARTICULARS CGST SGST IGST TOTAL
Opening Balance 0 0 0 0
Add Credit Taken for Distribution 600 600 0 1200
Less Credit Distributed 600 600 0 1200
Closing Balance 0 0 0 0
10.2. Definition of Input Service Distributor
Input Service Distributor ” means an office of the supplier of goods or services or both which receives tax
invoices issued under section 31 towards the receipt of input services and issues a prescribed document for
the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid
on the said services to a supplier of taxable goods or services or both having the same Permanent Account
Number as that of the said office.
Why do business get themselves as Distributor?
90 | P a g e
So that they can distribute Credit to their other Branches
What type of Input Tax Credit can be distributed?

Only Input Service can be Distributed
Inputs and Capital Goods cannot be Distributed
What type of Invoice to be issued by Input Service Distributor?

Tax Invoice to be issued
Separate series of invoice is required for purpose of Distributing Credit
Can it be distributed to Other Business Also of same holding company?

No, Pan No should be same for distributing credit
(Holding and Subsidiary Company will have separate Pan No)
How to Distribute Credit if it is Related to More than One Office?

Credit to be Distributed
On basis of Last Year Turnover
Of business currently existing in Current Year
What if there is no last year turnover?

Turnover of Previous Quarter (last quarter prior to distribution) to be considered
GST Return for July, Aug, Sep to be filed by 15 Nov 2017
91 | P a g e
10.3. How ISD Distribute Different Types of GST
How to Distribute Different Types of GST in case of input Service Distributor?
Answer:
Type of input Distributed as

IGST IGST
CGST AND SGST (Same State) CGST AND SGST
CGST AND SGST (Different State) IGST
Is Concept of ISD applicable on branches in the same state?

Answer:
 If both branches are in same registration, then no need of ISD as both branches file common
return
 If both branches have separate registration, then registration as ISD is required
 If branches are outside state, there is separate registration
10.4. What is Legal Requirement to file Return in case of Input Service Distributor?
Legal recruitment is different for input services distributor as well as in person taking input
ISD will file GSTR 6 Return

Due Date is 13 th of Next Month
Person Receiving Input has to show the same as ISD Credit in his Register
He has to file GSTR 2 containing details of Input taken
92 | P a g e
11. E-way bill process
11.01. E-way bill Process in GST

From 1 st Feb
E-way bill is now compulsory for 1st April 2018
What is e-Way bill?
E-Way bill means Electronic Way Bill
It is an online form which is to be filled in case of movement of goods
It will be mandatory from 1 Feb 2018 date to be notified.
Example 1
A Ltd, Delhi makes sales to B Ltd of Mumbai
It sends goods from Delhi to Mumbai through truck operator T
In this case, Truck operator has to carry a copy of invoice + copy of E-Way bill
During the transport of Goods
Example 2
A ltd makes Sale to B Ltd of Mumbai
A delivers goods to B in his own conveyance
In this case, also A shall carry a copy of E-way bill in this case
Example 3
A ltd makes Sale to B Ltd of Mumbai
B comes to A’s shop in Delhi and takes goods with him to Mumbai in his conveyance
In this case, B shall carry a copy of E-way bill during movement of goods
93 | P a g e
When is E Way Bill Required?
It is required in case of
Movement of goods of more than equal to 50000
In case of
 Supply of goods (Sale of goods, branch transfer etc)
 Other than Supply (Sales Return etc)
Inward Supply form Registered Person (Purchase from Unregistered Dealer)
When is E-Way bill Not Required

1. If value of goods is less than 50000
2. In case of non-motorized transport of goods
3. No E-way bill for Certain Specified Goods
notified-goods-e-way-bill-from-teachoo.com
E-way Bill on Import of Goods

E-Way bill is generated for period from Port to Customer Premises
However if Goods are transported from Port to ICD and then from ICD to customer Premises
No E way bill for first transaction, only for Second transaction
E-way Bill on Export of Goods

E-Way bill is required to be issued from Customer Premises to Place where goods are leaving country
This distance to be mentioned and not distance upto Foreign Country
94 | P a g e
Exemption-
Export of Goods to Nepal and Bhutan has been exempted by Govt
Transport from Port, Airport or Land Custom Station to ICD (Inland Container Depot) or CFS (Container
Freight Station)
Validity Of E-Way Bill
Type of conveyance Distance Validity of EWB

Other than Over Less Than 100 Kms 1 Day
dimensional cargo
For every additional 100 additional 1 Day
Kms or part thereof
For Over dimensional Less Than 20 Kms 1 Day
cargo
For every additional 20 Kms additional 1 Day
or part thereof
Assume our company is based in DELHI
What is Validity of E -Way bill in following Cases
Other than over Dimensional cargo
Distance in km Location Validity

10 Delhi n/a
10 Noida,UP 1
400 Lucknow,UP 4
2000 China,Exported through 6
Kolkatta Port which is at
distance of 600 km
For Over Dimensional cargo
Distance in km Location Validity

10 Delhi n/a
10 Noida,UP 1
400 Lucknow,UP 20
2000 China,Exported through 30
Kolkatta Port which is at
distance of 600 km
95 | P a g e
Note:-
Part B of e-Way Bill is not required to be filled where the distance between the consigner or consignee and
the transporter is less than 10 Kms and transport is within the same state
Who shall Generate E-way bill?

It is to be generated by
Consignor or Consigneee or Transporter
If a registered person purchases from unregistered, in this case registered person has to Generate E-way
bill
What is Website for E-way bill?

1. http://ewaybill.nic.in/
2. http://164.100.80.180/ewbnat9/
Till 31 st Jan 2018

View Answer
1. Do registration at website of up commercial tax( http://comtax.up.nic.in ).. User ID n
Password will be sent at email ID and mobile
2. Enter login detail. Go to E-way bill. Generate token number. After that go to download
eway bill and fill detail and click on preview button. E-way bill will be generated
Different e-way bills have been prescribed under different circumstances as under:
Name of Firm Use For
Transit System (TDF / Bahti) Goods Movement from Other State to Other State, pass vehicle
from Uttar Pradesh.
E-Way Bill – 01 Goods Movement from other State to Uttar Pradesh
E-Way Bill – 02 Goods Movement from City to City within Uttar Pradesh
E-Way Bill – 03 E-Commerce Company within Uttar Pradesh.
All types of the above mentioned e-way bills have to be downloaded from UP
GST/Commercial Tax website ( http://comtax.up.nic.in ).
96 | P a g e
97 | P a g e

GST Computation

Uploaded by

Document Informationclick to expand document information

Copyright:

Available Formats

GST Computation

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

GST Computation

Uploaded by

Copyright:

Available Formats

GST Computation & Accounting

Understanding Output and Input GST

Composition Scheme in GST

Reverse Charge in GST

Accounting Entries in GST

Time and Supply of Goods and Services

Input Tax Credit in GST

Place of Supply in GST

Input Services Distributor

E-way bill process

Calculate GST Payable

PARTICULARS AMT CGST SGST TOTAL GST

1.2. What is GST CREDIT?

Calculate GST Payable

Difference between GST Payable and GST Credit

On Purchase of goods within State, CGST and SGST will be charged.

What will be Rate of IGST?

Calculate GST Payable

PARTICULARS AMT IGST

1.5. Adjust of IGST with CGST, SGST Credit

PARTICULARS QTY RATE AMOUNT

Whole Stock of 5000 pcs Sold to Chennai Buyer at 30 per kg

PARTICULARS QTY RATE AMOUNT

Make GST Computation

1.6. Adjust of Credit in case of CGST, SGST and IGST Sales

Sequence will be as follows

PARTICULARS QTY RATE AMOUNT

PARTICULARS QTY RATE AMOUNT

Make GST Computation

PARTICULARS QTY RATE AMOUNT

Bottles in pieces 5000 20 100000

CGST 10% 10000

Suppose 1000 pcs Sold to Chennai Buyer at 30 per kg

PARTICULARS QTY RATE AMOUNT

PARTICULARS QTY RATE AMOUNT

Make GST Computation

1.7. CGST and SGST cannot be adjusted against each other

CGST credit cannot be adjusted against SGST Payable.

Company had Opening Input of Service

CGST and SGST Cannot be adjusted against Each Other

Suppose Sales made of 5000 Piecesin Kolkata @ 24 /piece (tax extra)

Type of Business TILL 31 DEC 2017 FROM 1 JAN 2018

Return and Due Date for Composition Scheme

 It is normally 18th of next Quarter

Period Due Date

July-Sep 2017 24 Dec 2017

Oct-Dec 2017 18-Jan-18

Jan-March 2018 18-Apr-18

April-June 2018 18-Jul-18

Option to Avail Composition Scheme

For Composition Dealer

2.2. Difference between Normal Dealer and Composition Dealer

NORMAL DEALER COMPOSITION DEALER

PARTICULARS QTY RATE AMT

PLASTIC (In Kg) 200 5 1000

Suppose Company Wants 200 Kg to Sell it to B LTD at Rs 7 per kg

PARTICULARS QTY RATE AMT

PLASTIC (In Kg) 200 7 1400