GST - Introduction
GST - Introduction
GST - Introduction
https://en.m.wikipedia.org/wiki/Goods_and_Services_Tax_(India)
• Introduction of GST required amendments in the Constitution
so as to enable the integration of
• The central excise duty including additional duties of customs
on imports
• Service tax
• State VAT
• Certain specific taxes
Shall we …. ?
Example - 1
• Rs.100,000 worth laptop is sold by an electronics store in
Pune, Maharashtra to a customer in Nagpur, Maharashtra and
the applicable GST rate is 18%
• Then Amount of GST:
• Rs.18,000
• Goods are supplied from:
• Maharashtra
• Goods are supplied to:
• Maharashtra
• Type of transaction:
• Intra-state (within the same state), i.e. CGST & SGST
• Payable to:
• Rs.9,000 to Center and Rs.9,000 to Maharashtra State
Example - 2
• Rs.100,000 worth laptop is sold by an electronics store in
Chandigarh to a customer in Chandigarh and the applicable
GST rate is 18%
• Then Amount of GST:
• Rs.18,000
• Goods are supplied from:
• Chandigarh
• Goods are supplied to:
• Chandigarh
• Type of transaction:
• Intra-state (within the same UT), i.e. CGST & UTGST
• Payable to:
• Rs.9,000 to the Center & Rs.9,000 to Chandigarh UT
Example - 3
• Rs.100,000 worth laptop is sold by an electronics store in New
Delhi to a customer in Chandigarh and the applicable GST rate
is 18%
• Then Amount of GST:
• Rs.18,000
• Goods are supplied from:
• New Delhi
• Goods are supplied to:
• Chandigarh
• Type of transaction:
• Inter-state (between two UTs), i.e. IGST
• Payable to:
• Rs.18,000 to the Center
Example - 4
• Rs.100,000 worth laptop is sold by an electronics store in
Daman, Daman & Diu, to a customer in Chandigarh and the
applicable GST rate is 18%
• Then Amount of GST:
• Rs.18,000
• Goods are supplied from:
• Daman & Diu
• Goods are supplied to:
• Chandigarh
• Type of transaction:
• Inter-state (between two UTs), i.e. IGST
• Payable to:
• Rs.18,000 to the Center
Example - 5
• Rs.100,000 worth laptop is sold by an electronics store in
Pune, Maharashtra to a customer in Mysore, Karnataka and
the applicable GST rate is 18%
• Then Amount of GST:
• Rs.18,000
• Goods are supplied from:
• Maharashtra
• Goods are supplied to:
• Karnataka
• Type of transaction:
• Inter-state (between two States), i.e. IGST
• Payable to:
• Rs.18,000 to the Center
Example - 6
• Rs.100,000 worth laptop is sold by an electronics store in
Silvassa, Dadra & Nagar Haveli to a customer in Mumbai,
Maharashtra and the applicable GST rate is 18%
• Then Amount of GST:
• Rs.18,000
• Goods are supplied from:
• Dadra & Nagar Haveli
• Goods are supplied to:
• Maharashtra
• Type of transaction:
• Inter-state (between UT and State), i.e. IGST
• Payable to:
• Rs.18,000 to the Center
Example - 7
• Rs.100,000 worth laptop is sold by an electronics store in
Visakhapatnam, AP, to a customer in Port Blair, Andaman &
Nicobar Islands and the applicable GST rate is 18%
• Then Amount of GST:
• Rs.18,000
• Goods are supplied from:
• Andhra Pradesh
• Goods are supplied to:
• Andaman & Nicobar Islands
• Type of transaction:
• Inter-state (between State and UT), i.e. IGST
• Payable to:
• Rs.18,000 to the Center
Example - 8
• Rs.100,000 worth laptop is sold by an electronics store in
Srinagar, to a customer in Jammu and the applicable GST rate
is 18%
• Then Amount of GST:
• Rs.18,000
• Goods are supplied from:
• J&K
• Goods are supplied to:
• J&K
• Type of transaction:
• Intra-state (within the same UT), i.e. CGST & SGST
• Payable to:
• Rs.9,000 to the Center and Rs.9,000 to J&K State
• Compensation Cess
• Charged in addition to CGST, SGST / UTGST & IGST
• For 5 years (2017-18 to 2021-22)
• To compensate the loss faced by States because of abolition of
CST
• Is charged on Tobacco products; Pan masala; Motor cars; Coal;
Aerated waters
• Import of goods
• Customs duty (+) education cess (+) IGST (+) GST
Compensation Cess
• If goods are exempt from Customs duty, then IGST also
exempted on such goods
• Tobacco products
• Excise duty of State (+) GST (+) GST Compensation Cess
• Special provision for State of Kerala
• To mobilize revenues to meet the cost of rehabilitating parts
of the State that were ravaged by recent floods
• Calamity Cess of 1%
• For 2 years
• On all intra-state sales
• Presently the following goods do not fall under GST regime
• On these goods only the respective State Excise Duty is levied
• Alcoholic liquor
• Petroleum products (including petroleum crude)
• High speed diesel
• Motor spirit / Petrol
• Natural gas
• Aviation turbine fuel
• Coding of Goods and Services
• Used for classifying goods and services
• For goods: HSN Code
• Harmonized System of Nomenclature is used for classifying
goods
• Internationally accepted product coding system created by
General Agreement on Tariffs & Trade (GATT)
• For services: SAC Code
• Services Accounting Code is used for classifying services
• Classification system for services is developed by the Service
Tax Department of India
• Other concepts:
• Composition Scheme
• Reverse Charge Mechanism
• Input Tax Credit