Tax

Direct Tax Indirect Tax

Income Tax GST Central Tax State Tax

(Customs Duty) (Stamp Duty, Profession Tax etc.)
 NATURE OF GST
• GST (Goods and Service Tax) is an • GST amount are collected by sellers
indirect tax which was launched by from buyers while purchasing a
Prime Minister Modi on 1st July 2017. product and later on passed on to the
• It is a tax which is levied by government.
government on supply of goods and • It serves as a large source of revenue
services. for both state and central
• This tax has brought a greatest reform Government.
in Indian taxation system by replacing • GST is termed as one nation-one tax
all indirect taxes which were levied
as it has unified the whole taxation
earlier with one single tax.
system.
• There are five tax slabs for collecting
tax under this- 0%, 5%, 12%, 18%
and 28%.
1. Multi-stage: GST is a multi-stage tax
which is levied at every point of sale of
goods or services. Product before reaching
its final consumer passes through many
stages. This tax is levied at each of the
stages.
2. Destination based: It is a tax that is levied
on the consumption of goods and services
by consumers. If a product is manufactured
in Uttar Pradesh and sold in Delhi, then the
GST amount will be collected by the Delhi
government but not the government of
Uttar Pradesh.
3. Value Addition: GST is collected at value
addition in each processing stage while
manufacturing a final product. There are
various steps from the purchase of raw
materials till the product is finally ready for
sale. Additional monetary value is added at
every stage where GST is levied.
 Objectives of GST in India

• To Eliminate the Cascading Effect: Cascading effect • Regulation Of Unorganized Sector: In India, there is a lot of
Sector which is still unorganized. The government tries to put
means when is the tax on tax levied on a product at those firms into the main streamline. This business can be a
every step of the sale until it is sold to the final bakery in your locality or maybe a small factory. Now, these
consumer. GST would be levied only to the net value firms/factories/business also paying GST which increases the
added on the product, not to the whole value of the revenue of the Indian Government.
product. • Increase In Revenue: GST increases the revenues of the
• Uniform Tax Structure: ONE NATION ONE central government and state governments. Tax Evasion is very
TAX. Before the GST the tax rate were different for the hard so every firm needs to pay taxes(GST). The false claim is
very less due to it as this requires matching of invoices between
different parts of the Country on different goods and the recipient and the suppliers.
services. Before GST People come to Delhi and used to
• Online Procedure: The entire process under the GST regime
buy electronics from Delhi because the tax rate on
starting from registration to return filling is online. Filling the
electronics in Delhi is less than in other states in India. GST is easier than the old Tax because we fill only one return
Now, tax is the same in every state. under GST and before GST we need to fill return to every tax to
• Ease Of Doing Business: After GST, the problems in tax departments.
indirect tax have been reduced. Earlier firms faced • Product Competitiveness: GST is meeting the India Tax
many problems for registration of excise customs, VAT, system with international tax standards. After GST the
dealing with tax authorities, etc. The benefits of GST production cost will decrease as there is no more Cascading
has helped companies to carry out their business with effect in the tax system. So, Indian product costs will be low
and products can be more competitive in the global market.
ease.
Taxes Submerged in GST
Taxes Submerged in GST
 Taxes NOT submerged in GST
CENTRAL TAXES STATE TAXES
Customs Duty State Excise Duty
Stamp Duty
Profession Tax
Electricity Duty
Sales Tax on five petroleum products
Toll Tax
Road and Passenger Tax
Laws under GST
States and Union Territories of India

UTGST is similar to SGST and is levied in Union Territories

which do not have their own legislature. UTGST is applicable
to the supplies that take place in the Union Territories of
Ladakh, Andaman and Nicobar Islands, Chandigarh, Dadra &
Nagar Haveli and Daman & Diu, and Lakshadweep.

Please note that the Union Territories of Delhi, Jammu &

Kashmir and Puducherry will fall under SGST law as they
have their own legislature
• 1. Integrated Goods and Services Tax or IGST • 2. State Goods and Services Tax or SGST
• The Integrated Goods and Services Tax or IGST is • The State Goods and Services Tax or SGST is a tax
a tax under the GST regime applied on the under the GST regime that is applicable on intrastate
interstate (between 2 states) supply of goods (within the same state) transactions. In the case of an
intrastate supply of goods and/or services, both State
and/or services and on imports and exports. GST and Central GST are levied.
• The IGST is governed by the IGST Act. Under • However, the state levies the State GST or SGST on
IGST, the body responsible for collecting the the goods and/or services purchased or sold within the
taxes is the Central Government which is further state. It is governed by the SGST Act. The revenue
divided among the respective states by the Central earned through SGST is solely claimed by the
Government. respective state government.
• For instance, if a trader from West Bengal has • For instance, if a trader from West Bengal has sold
sold goods to a customer in Karnataka worth goods to a customer in West Bengal worth Rs.5,000,
Rs.5,000, then IGST will be applicable as the then the GST applicable on the transaction will be
transaction is an interstate transaction. partly CGST and partly SGST.
• If the rate of GST charged is 18%, it will be divided
• If the rate of GST charged on the goods is equally in the form of 9% CGST and 9% SGST. The total
18%, the trader will charge Rs.5,900 for the amount to be charged by the trader, in this case, will be
goods. The IGST collected is Rs.900, which Rs.5,900. Out of the revenue earned from GST under the
head of SGST, i.e. Rs.450, will go to the West Bengal state
will be going to the Central Government. government in the form of SGST.
• 3. Central Goods and Services Tax or CGST • 4. Union Territory Goods and Services Tax
• Just like State GST, the Central Goods and or UTGST
Services Tax of CGST is a tax under the GST • The Union Territory Goods and Services Tax
regime that is applicable on intrastate (within the or UTGST is the counterpart of State Goods
same state) transactions. The CGST is governed and Services Tax (SGST) which is levied on
by the CGST Act. The revenue earned from
CGST is collected by the Central Government.
the supply of goods and/or services in the
Union Territories (UTs) of India.
• As mentioned in the above instance, if a trader
from West Bengal has sold goods to a customer • The UTGST is applicable on the supply of
in West Bengal worth Rs.5,000, then the GST goods and/or services in Andaman and
applicable on the transaction will be partly CGST Nicobar Islands, Chandigarh, Daman Diu,
and partly SGST. Dadra, and Nagar Haveli, and Lakshadweep.
• If the rate of GST charged is 18%, it will be divided The UTGST is governed by the UTGST Act.
equally in the form of 9% CGST and 9% SGST. The • The revenue earned from UTGST is collected
total amount to be charged by the trader, in this by the Union Territory government. The
case, will be Rs.5,900. Out of the revenue earned UTGST is a replacement for the SGST in Union
from GST under the head of CGST, i.e. Rs.450, will
go to the Central Government in the form of CGST. Territories. Thus, the UTGST will be levied in
addition to the CGST in Union Territories.
 SGST CGST IGST UTGST
Applicability Intra State Intra State Inter-State Specific to
(within State) (Within State)
(Between Two Union
Transactions Transactions States) Territories
Transactions
Revenue Revenue goes Revenue goes Revenue is Revenue
Distribution to State Govt. to Central collected by remains within
Govt. Central Govt. the Union
and distributed Territories
to destination
States
Tax Rates Rates may vary Rates may vary Rates are Rates may vary
across states across state uniform for across union
inter state territories
transactions
Administrative State Authority Central Central Govt. Union
Authority Authority Territories
• Determining Who Must Register for GST:
• Under GST regulations, any entity involved in the supply of
goods or services with an annual turnover of Rs. 20 lakhs or
more is obligated to register for GST. However, businesses
operating in the North Eastern states and hill states must
register if their turnover exceeds Rs. 10 lakhs.
• Additionally, certain businesses are mandated to register for
GST regardless of their turnover. These include:
1.Businesses engaged in inter-state supplies
2.E-commerce operators
3.Casual taxable persons
4.Non-resident taxable persons
5.Entities liable to deduct or collect tax (TDS/TCS)
 No GST on …

• Alcohol for human consumption

• Petroleum products viz.
1. Petroleum Crude
2. High Speed Diesel
3. Motor Spirit (commonly known as Petrol)
4. Natural Gas
5. Aviation Turbine Fuel
 HSN codes are used for the
classification of goods, whereas SAC
codes are used for services.
HSN - Harmonized System of
Nomenclature
SAC – Services Accounting Code

Nomenclature as per GST Act SAC Nomenclature as per IITB-IRCC Financials

Scientific & Technical Consulting Service 998393 Income from Consultancy
Patent/Licence Service 997335 Income from Royalty
Technical Testing & Analysis Services 998346 Income from Institute's Central Facility
Research Sponsored Project / Conference / Sponsorship Service Sponsored Projects - Others (Overhead Income)
Sponsorship Services 998397
Conference Services 999244
Research Services 998112
Other Education & Training Services N.E.C (Not Elsewhere Classified) 999294
IIT BOMBAY – DIFFERENT TYPES OF SUPPLIES OF GOODS & SERVICES
Department HSN/SAC NAME OF THE SERVICE
CEP 998431 On-line text based information such as online books, newpapers, periodicals, directories etc
CEP 998599 Other support services n.e.c.
Conference / CEP/ 999294 Other education and training services n.e.c.

Conference/Sponsorship Service 998397 Sponsorship Services & Brand Promotion Services

Consultancy 998393 Scientific and technical consulting services

Estate 995431 Demolition services.

Estate 996912 Electricity distribution services
Estate 996921 Water distribution services.
Estate 997212 Renting of Immovable Property

Guest House 996311 Room or unit accommodation services provided by hotels, inn, guest house, club etc
Services provided by Hotels, INN, Guest House, Club etc including Room services, takeaway
Guest House 996332 services and door delivery of food

Library Services 998451 Library services.

Department HSN/SAC NAME OF THE SERVICE
License Fees - Patent 997331 Licensing services for the right to use computer software and databases.
License Fees - Patent 997335 Licensing services for the right to use R&D products
Licensing services for the right to broadcast and show original films, sound recordings, radio
License Fees - Patent 997332 and television programme etc.
License Fees - Patent 997333 Licensing services for the right to reproduce original art works
License Fees - Patent 998399 Other professional, technical and business services n.e.c

Research Sponsored Project 998112 Research and experimental development services in engineering and technology
Specialty design services including interior design, fashion design, industrial design and other
Research Sponsored Project 998391 specialty design services

Scrap MMD 72041000 Ferrous waste and scrap; remelting scrap ingots of iron or steel - waste and scrap of cast iron.
Scrap MMD 847160 Input or output units, whether or not containing storage units in the same housing: Products.
Scrap MMD 85481010 Waste and scrap of primary cells, primary batteries and electric accumulators
TELEPHONE SETS, INCLUDING TELEPHONES FOR CELLULAR NETWORKS OR
FOR OTHER WIRELESS NETWORKS: -- LINE TELEPHONE SETS WITH CORDLESS
Scrap MMD 85171110 HANDSETS: --- PUSH BUTTON TYPE

Technical Testing 998346 Technical testing and analysis services

RETURNS UNDER GST
 GST RETURNS

• All GST registered

businesses have to file
-Monthly or Quarterly GST
returns and
-An Annual GST return
-Based on the type of
business
-Online on the GST portal
 Who should file GST Returns
Regular businesses having > Rs. 5 Crores as Annual Aggregate Turnover <= Rs.5
annual aggregate turnover and not opted for Crores have the option to file returns
QRMP scheme under QRMP

• Need to file • Need to file

• 2 Monthly Returns in form GSTR-1 and • Quarterly Returns in form GSTR-1 and
GSTR-3B (12 returns each, thus 24 returns) GSTR-3B (4 returns each, thus 8 returns)
• 1 Annual Returns in form GSTR-9 • 1 Annual Return in form GSTR-9
Thus making 25 Returns in a year. Thus making 9 returns in a year
#They need to pay tax on a monthly basis
even though they are filing returns
quarterly
Return Description Frequency Due Date
Form
GSTR-1 Details of outward supplies of taxable goods Monthly 11th of the next month
and/or services affected
(IITB) Quarterly 13th of the next month
(under QRMP)
GSTR-3B Summary return of outward supplies and input tax Monthly 20th of next month
credit claimed, along with payment of tax by the
(IITB) taxpayer Quarterly 22nd or 24th of the month succeeding
(under QRMP) the quarter

CMP-08 Statement-cum-challan to make a tax payment by a Quarterly 18th of the month succeeding the
taxpayer registered under the composition scheme quarter.
under Section 10 of the CGST Act.
GSTR-4 Return for a taxpayer registered under the Annually 30th of the month succeeding a
composition scheme under Section 10 of the CGST financial year up to FY 23-24.
Act. 30th of June succeeding a financial
year up to FY 24-25
GSTR-5 Return to be filed by a non-resident taxable person. Monthly 20th of the next month.
(Amended to 13th by Budget 2022;
yet to be notified by CBIC.)
Return Form Description Frequency Due Date

GSTR-5A Return to be filed by non-resident OIDAR service Monthly 20th of the next month.
providers.

GSTR-6 Return for an input service distributor to distribute Monthly 13th of the next month.
the eligible input tax credit to its branches.

GSTR-7 Return to be filed by registered persons deducting Monthly 10th of the next month
(IITB) tax at source (TDS).

GSTR-8 Return to be filed by e-commerce operators Monthly 10th of the next month.
containing details of supplies effected and the
amount of tax collected at source by them.

GSTR-9 Annual return by a regular taxpayer. Annually 31st December of the next financial
(IITB) year.

GSTR-9C Self-certified reconciliation statement Annually 31st December of the next financial
(IITB) year.
Return Form Description (https://cleartax.in/s/gst-returns) Frequency Due Date

GSTR-10 Final return to be filed by a taxpayer whose GST Once, when Within three months of the date of
registration is cancelled. the GST cancellation or date of cancellation
registration is order, whichever is later.
cancelled or
surrendered.

GSTR-11 Details of inward supplies to be furnished by a Monthly 28th of the month following the
person having UIN and claiming a refund month for which statement is filed.

ITC-04 Statement to be filed by a principal/job-worker Annually 25th April where AATO is up to Rs.5
about details of goods sent to/received from a job- (for AATO crore.
worker up to Rs.5
crore)

Half-yearly 25th October and 25th April where

(for AATO > AATO exceeds Rs.5 crore. (AATO =
Rs.5 crore) Annual aggregate turnover)
AUDIT UNDER GST