GOODS & SERVICE
TAX
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WHAT IS GST ??
GST IS A DESTINATION
BASED TAXATION SYSTEM
PROPOSED TO LEVY AT ALL
STAGES RIGHT FROM
MANUFACTURING UP TILL
CONSUMPTION
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TAXES TO BE SUBSUMED
UNDER GST
There are 17 Taxes which are being subsumed
under GST. The prominent Taxes are namely :
• Excise Duty
• Service Tax
• VAT
• CST
• Additional Custom Duty (ACD)
• Special Additional Duty of Customs (SAD)
• Luxury Tax
• Entertainment Tax
3
MAJOR FEATURES OF GST
• Basic Exemption Limit of Rs 20 Lakhs
• Composition Scheme for Dealers having
Turnover upto Rs 50 Lakhs
• Local Sales to be Taxed as CGST & SGST
• Central Sales Tax to be Taxed as IGST
(Integrated GST)
• Reverse Charge Scheme on Goods
• GST Rates from 0%, 5%, 12%, 18% & 28%
• Service Tax Rate @ 18%
4
MAJOR FEATURES OF GST
• Monthly Returns to be Filed
• All Forms such as C, E-1, E-2 to be abolished
• Advance Payment of Supply of Goods or
Services are Taxable
• Branch Transfer to be subject to GST
• TDS to be deducted only by Govt Depts only
• E Commerce Operators to deduct TCS @ 1%
of Suppliers
• E-way Bill to be generated on Inter State
Transactions above Rs 50k
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CONCEPT OF SUPPLY
• GST to be now levied on Supply of Goods or
Services
• Supply includes Sale, Transfer, Exchange,
Rental etc of Goods & Services
• Supply includes Transfer to Branches
• GST to be levied on all Packing, Transport &
other Incidental expenses including Interest
charged
• Input Credit shall be allowed & confirmed
only if the Supplier has paid the Tax and file
the Return
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REGISTRATION
• Every Person whose Aggregate Turnover exceed Rs 20
Lakhs shall be liable to get Registered.
• Existing Dealer in VAT & Service Tax are being
migrated to GST
• Aggregate Turnover includes supply of Goods/Services
which are exempt or Taxable at NIL Rate
• Person dealing exclusively in Exempt Goods/Services
Taxable at Nil Rate are EXEMPT from taking
Registration
• Limit of Rs 20 Lakhs shall not apply if a Person is
having Inter State Supply of Goods or Services, Person
supplying to E-Commerce Operators, Person liable to
pay Tax under Reverse Charge, Agents, Casual
Traders. 7
COMPOSITE SCHEME
• A Dealer having Turnover upto Rs 50 Lakhs
can go for Composite Scheme
• GST shall be levied @ 1%
• This Scheme is only for a Dealer in Goods
• The Scheme is not applicable to a Dealer
engaged in Interstate Sale or Supply to E-
Commerce Operators
• Composite Dealers has to file Return on
Quarterly Basis
• Tax cannot be charged from the Customer
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INPUT TAX CREDIT
• A Dealer shall take Input Tax Credit of any Goods or
Services used in the course of Business/Profession
• ITC on Capital Goods can be taken in a Single
Instalment
• Input IGST/CSGT/SGST can be used against Output
IGST/CSST/SGST
• ITC is available if the Supplier of Goods/Services has
paid such Tax and Filed his Returns
• ITC can be taken on GST paid on Reverse Charge
• ITC shall be reversed if payment is not made to
supplier within 180 Days of the Invoice
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REVERSE CHARGE
• Concept of Reverse Charge introduced for
Goods.
• GST shall be paid by the Registered Dealer if
Goods are purchased from a Unregistered
Dealer
• For Services, the Reverse Charge shall
continue as in earlier Law
• Tax paid on Reverse Charge can be used as
Input Credit
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INVOICES
• Tax Invoice shall be issued if the Receipt shall claim
Input Tax Credit
• Bill of Supply (earlier Retail Invoice) shall be issued
in case of Exempted Supply or by a Composite Dealer
• Tax Invoice shall be issue by the Recipient to the
Unregistered Supplier on Tax paid through RCM
• In case of Exports,, Invoice shall carry an
endorsement “SUPPLY MEANT FOR EXPORT
UNDER BOND OR LETTER OF UNDERTAKING
WITHOUT PAYMENT OF IGST”
• Invoice to issued in Triplicate (For Goods) and
Duplicate (For Services)
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CONTENT OF INVOICE
• Name, Address, GSTIN of Supplier
• Serial Number & Date
• Name, Address, GSTIN (if Registered) of Recipient
• Name & Address, if Recipient is Unregistered and Invoice > 50k
• HSN Code of Goods/ Accounting Code of Services
• Description, Qty, Rate of Tax
• Total Value of Goods/Services, Amt of Tax Charged
• Place of Supply, incase of Interstate Sale
• Whether the tax is payable on Reverse Charge Basis
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PAYMENT OF TAX
• GST is to be paid in following heads :
: CGST & SGST (Local Sales)
: IGST (Central Sales)
• Tax should be paid upto 20th of the next month.
• Interest @ 18% shall be charged for Late Payment
• Govt shall maintain E-Ledgers for Cash and Input
Credit for each Taxpayer
• Any Payment of GST shall be credited in “Electronic
Cash Ledger”
• Any Input Credit claimed shall be credited to
“Electronic Credit Ledger”
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RETURNS
• Monthly Returns to be Filed by Taxpayers
• Composite Dealers shall file Quarterly Returns
• Every Month 3 Returns are to be Filed :
- GSTR 1 by 10th : Detail of Outward Supply (Sales)
- GSTR 2 by 15th : Detail of Inward Supply (Purchase)
- GSTR 3 by 20th : Monthly Return on above Returns
• Invoice-wise Details to filed in GSTR 1 in case of Tax
Invoices
• For Retail Invoice , only summary needs to be filed
• An Annual Return is to filed by all Persons on or before 31st
December following end of such Financial Year
• Penalty of Rs 100 per day subject to maximum of Rs 5,000/-
on delay of filing the Returns.
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MIS-MATCHING OF DATA
• All Input Credit furnished in the Return, shall be
matched by corresponding outward supply furnished
by the Supplier
• Any Mis-matching of sale or purchase shall be
communicated to both the respective Parties by the
last date of month in which matching was done
• If the said Mis-match is not rectified, the Tax
Liability shall be automatically added in the Return
for the next month
• Interest shall be further charged on tax liability due to
such Mis-match
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REFUNDS UNDER GST
• Refunds of unutilized ITC in only 2 Cases :
a) Export of Goods or Services
b) Inverted Duty Structure (If GST Rate on Input is
higher than GST Rate of Output)
• Refunds can be claimed in Returns if only due to
excess Deposit of GST
• There shall be No Refund of ITC if a person deals in
Nil Rate or Exempt Goods
• Refund shall be Granted within 60 days of making the
Application for Refund
• In case of Exports, 90% of the Refund shall be granted
within 7 days of Application on provisional basis.
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TDS & TCS PROVISIONS
• A major change has been in the TDS Provisions
• Earlier there used to be TDS on VAT in Works
Contract
• Now, TDS needs to deducted only by Govt
Department @ 1% on a Taxable Supply if it exceeds
Rs 2.50 Lakhs
• TCS @ 1% shall be deducted by E-Commerce
Operators of its Suppliers on the Net Value of
Supplies
• Monthly TDS & TCS Payments and Returns are to
be Filed by 10th of the next month
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E-WAY BILL
• Every Person who cause movement of Goods of Value >
50k in relation to Supply, shall issue a E-Way Bill,
electronically in Form INS 01
• The E-Way Bill shall be valid for the period &
Distance :
- Less than 100km 1 Day
- 100 < 300 Km 3 Days
- 300 < 500 Km 5 Days
- 500 < 1000 Km 10 Days
- 1000 Km > 15 Days
• Details of E-Way Bill generated shall be made available
to Online to the Receipt who has to accept or reject
within 72 Hours or else it will be deemed to be
accepted.
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TRANSITIONAL PROVISIONS
• Every Person Registered under VAT or ST, shall be issued a
Registration Certificate on a provisional basis which shall
be further certified subject to conditions.
• A Registered Person shall be entitled to take Input Credit
as carried forward in the Return filed upto 30th June 2017
under VAT or Service Tax, Provided he has filed all the
Declaration Form C, E, H or I in support of such Refund
• An Importer of Goods can take credit of Additional Duties
of Custom (ADC) or Countervailing Duties (CVD) paid on
Stock as on 30th June 2017, provided there is documentary
evidence and invoices are were issued not earlier than 12
months.
• A dealer of Goods, not registered under the Excise Dept,
shall be allowed to take credit of 40% of Central Excise
Tax applicable on such goods as on 30th June 2017 subject
to conditions
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For any Query & Clarification,
do let us know
Thanks & Regards
Abhinav Gupta, FCA
M/s Garg Agarwal & Associates
[email protected] # 9868063088
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