SUMMER TRAINING REPORT - Camey
SUMMER TRAINING REPORT - Camey
Department of MBA
Somany Institute of Technology and Management
Rewari, Haryana
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SOMANY INSTITUTE OF TECHNOLOGY & MANAGEMENT
(Approved by AICTE, Govt of India, Affiliated to M.D. University, Rohtak)
CERTIFICATE
The dissertation entitled “GOODS AND SERVICE TAX IN INDIA” submitted by Ms. Camey
Aggarwal , Reg. No. 1515141290 is presented in a satisfactory manner to warrant its acceptance as pre-
requisite for the degree of Master of Business Administration in the Dept. of MBA of Somany Institute
of Technology And Management , Rewari. It is Understood that by this approval the undersigned do
not necessarily endorse or approve any statement made , opinion expressed or conclusion drawn therein,
but only for the purpose for which it has been submitted.
BOARD OF EXAMINERS:
1. Internal Examiners
2. External Examiners
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ACKNOWLEDGEMENT
I take this opportunity to express my heartfelt gratitude and sincere thanks to my MBA supervisor Dr.
Indrajit Kumar, Assistant Professor, Department of MBA, Somany Institute of Technology And
Management, Rewari for his constant guidance, suggestion and gracious encouragement at my very
crucial stage of the training report work without him it could not become successful.
I also want to acknowledge my gratitude to my institute to provide this opportunity to learn the element
Thereby, I would like to acknowledge the contribution and support that each person’s at AMTEK
I would also like to express my special thanks to my guide Mr.Sudhir Gupta (Chief General
Manager-Tax), Mr. R.K. Jaiswal, Mr. Naveen Makharia and special Thanks to Mr. Tushar Gera
who provide me valuable insight about aspect of Goods and Service Tax with respect of company and
Camey Aggarwal.
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FOREWORD
Tax policies play an important role on the economy through their impact on both
efficiency and equity. A good tax system should keep in view issues of income
distribution and ,at the same time , also endeavor to generate tax revenues to
economy with relatively high burden on those not getting full offsets.
Value added tax was first introduced by Maurice Laure, a French economist, in
1945. The tax was designed such that the burden is borne by the final consumer.
Since VAT can be applied on goods as well as services it has also been termed as
goods and service tax (GST). During the last four decades VAT has become an
important instrument of indirect taxation with 130 countries having adopted this,
resulting in one fifth of the world’s tax revenue. Tax reform in many of the
developing countries has focused on moving VAT. Most of these countries have
gained thus indicating that other countries would gain from its adoption. For a
efficient in its resources usage. Apart from various other policy instruments, India
must pursue taxation policies that would maximize its economic efficiency and
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Traditionally India’s tax regime relied heavily on indirect taxes including customs
and excise revenue from indirect taxes was the major source of tax revenue till tax
reforms were undertaken during nineties. The major argument put forth for heavy
reliance on indirect taxes was the India’s majority of populations was poor and
thus widening base of direct taxes had inherent limitations. Another argument put
forth for heavy reliance on indirect taxes income was not subjected to central
income tax and there were administrative difficulties involved in collecting taxes.
The board objectives of our report relates to analyzing the impact of introducing
prices, capital, employment, efficiency and international trade at the sectoral level
leading to gain in GDP and exports. It will also ensure better compliance of tax
law and will remove cascading effective which is still present in taxation system.
This would translate into enhanced economic welfare and returns to the factors of
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Executive Summary
of domestic production. While indirect taxes paid by the producing firms get
offsets under state VAT and CENVAT, the producers do not receive full offsets
particularly at the state level. The multiplicity of taxes further adds the difficulty
Add to this, the lack of full offsets taxes loaded on the fob export prices. The
of productive resources and providing full tax offsets is expected to result in gains
for GDP, returns to the factors of production and export of the economy.
The joint working Group of the Empowered Committee of the State Finance
Ministers submitted to its report on the proposed Goods and Service Tax (GST) to
the finance minister in November 2007.A dual GST, one for the entre and other
for the state was to be implemented by 1 April 2010. The new system would
The proposed GST would eliminate the cascading effect and would integrate
hitherto disjointed goods and services taxes. It will lead to uniformity in tax rates
and procedures throughout the country.it will ensure better compliance and thus
will increases the revenue of both Centre and state. The export sector will also
gain from his integration of state and Centre taxes. Consumer will be benefited in
There will be dual tax rate viz. Central GST (CGST) and state GST (SGST).also
for interstate sales there will be an integrated GST. However cross credits among
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CGST and SGST are yet to be decided .It is also proposed to keep certain taxes
constitution of India to alter power of taxation of Centre and state rates of SGST
etc.
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CONTENTS
COVER PAGE…………………………………………………….………1
COLLEGE CERTIFICATE……………………………………………….2
TRAINING CERTIFICATE……………………........................................3
ACKNOWLEDGEMENT……………………………………...................4
FOREWORD…………………………………......................................5 - 6
EXECUTIVE SUMMARY……………………………….…….……..7 - 8
CHAPTER - 1
INTRODUCTION OF RESEARCH…………….……….................11 – 16
CHAPTER - 2
COMPANY PROFILE………………………….…………….……..17 - 21
FINANCIAL PROFILE……………………….………….................22 - 24
BOARD OF DIRECTORS…………………….……………...………….25
CHAPTER – 3
INTRODUCTION OF TAXATION...................................................26 - 33
a. Meaning of Taxation……………………………………….…….27
b. Characteristics of Taxation……………….……………..………..28
c. Tax applicable in India…………………………………..……29 – 33
CHAPTER - 4
INTRODUCTION OF GST................................................................34 - 85
d. Meaning of GST…………………………….…............................35
e. History of GST……………………………….……………...36 - 40
f. Key feature of GST………………………….……………....41 - 43
g. GST Model……………………………………………..…....44 - 45
h. GST Rates……………………………………….………….….…46
i. GST Council…………………………………….………….….…47
j. GSTIN…………………………………………….………....48 - 51
k. SWOT Analysis……………………………..……………....52 – 54
l. Impacts………………………………………………………55 - 56
m. Registration of GST…………………………………………57 - 58
n. GST Return………………………………………………….59 - 69
o. Important concept of GST…………………………………...70 - 81
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p. Accounts And Records………………………………….…...82 - 83
q. Audit…………………………………………………………84 - 85
CHAPTER - 5
CONCLUSION……………………………………………………...86 - 90
ANNEXURE………………………………………………….……..91 - 97
REFERENCE…...……………………………………………….….……98
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CHAPTER– 1
INTRODUCTION
Background:-
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and skills in an occupation. In order to expose the students to the actual working
to observe, learn and understand the corporate culture, acquire knowledge and
skills in the respective field which helps the students in their further carrier
knowledge acquired through the lectures, group discussion and formal study is
internship period help to enhance the interpersonal and communicative skills and
boost up the confidence level as well. Even though the interns are not the
are the employees. The interns do what the staffs of the organizations have to do.
However, they do not have obligations or authority over anything. The interne did
there internship in under Mr.Sudhir Gupta. The interne was given the opportunity
to observe and learn about the GST Registration and Return process.
The general objective of the study is to get practical insights of Goods and
Services Tax.
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To learn about the GST Registration
process.
Internship is the place where how theoretical knowledge are useful in real life
scenarios. For that students need to prepare resumes, write cover letters and go
through interviews as if they were applying for the job. This gives students
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valuable experience in preparation for employment. The internship allows
internship aid in the identification of knowledge and skills essential to doing well
in a particular profession.
to show our learning skills that we get from our school/college. Students can also
Methodology
For the preparation of this report both primary and secondary sources of data are
used. The secondary data are collected from annual reports, brochures, website of
in this report is written on the basis of experience gained by the internee in the
company during the period of internship. While preparing this report I took help
from company staff and group discussion with friends. I have consulted related
departmental staff as a primary source. For the secondary data I used GST
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Organization Selection
Selection of the organization is one of the most difficult tasks. However the
specialization of the student in finance has made GST a better option for doing
return, monthly return, annual return. Besides this, one should have strong
college.
Duration
The duration of internship period has been defined for 3 Months by the M.D.
Even though great support was provided by the organization and the staff to the
intern during the internship period to make the work environment conducive, they
had to face various difficulties during the internship period. Due to various
unavoidable constraints, the report could not do complete justice to the study. The
interns in the organization are more focused to assist their supervisors. It restricts
the amount of information and the level of complex work assigned to its interns
owing to the confidentially and competency issues. It is because of this interns get
only. The report is limited to the department in which the intern is placed it might
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not be able to provide the comprehensive knowledge of the overall functioning of
the company.
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CHAPTER– 2
Company Profile
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ABOUT AMTEK POWERTRAIN LTD.
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classified as Non-govt company and is registered at Registrar of Companies,
Delhi. Its authorized share capital is Rs. 360,000,000 and its paid up capital is Rs.
vehicles and their engines [brakes, gear boxes, axles, road wheels, suspension
columns and steering boxes and other parts and accessories n.e.c.]
Amtek Powertrain Limited's Annual General Meeting (AGM) was last held on 29
September 2018 and as per records from Ministry of Corporate Affairs (MCA),
Products
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Machineries, Flywheel Ring Gears and Forging
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Company Details
CIN U34300DL2006PLC156351
Company Active
Status
RoC RoC-Delhi
Registration 156351
Number
Class of Public
Company
Activity Manufacture of parts and accessories for motor vehicles and their engines [brakes,
gear boxes, axles, road wheels, sus
pension shock absorbers, radiators, silencers, exhaust pipes, steering wheels,
steering columns and steering boxes and other parts and accessories n.e.c.]
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FINANCIAL PROFILE
Provided here are the financial indicators for financial year ending on 31 March, 2019
EBITDA 67.94 %
Networth 10.44 %
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Current Ratio 2.81
% over the previous year. At the same time, it's book networth has increased by
10.44 %
“To become a world class engineering company in the Automotive and Non
technology base for the benefit of our customers, suppliers and stakeholders.
become one of the world's largest global forging and integrated machining
companies. The Group has operations across Forging, Iron and Aluminium
Japan, Thailand, Germany, Hungary, Italy, Romania, UK, Brazil, Mexico and US.
The Amtek Group is comprised of corporate entities Amtek Auto, JMT Auto,
Amtek Global Technologies and other subsidiaries and associates. With the
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infrastructure and technology platform developed over 25 years, the Group is well
Director Details
DIN Director Name Designation Appointment Date
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DIN Director Name Designation Appointment Date
The longest serving director currently on board is John Ernest Flintham who was
appointed on 23 December, 2006. John Ernest Flintham has been on the board for
more than 14 years. The most recently appointed director is Gaurav Pabby, who
Aditya Malhotra has the largest number of other directorships with a seat at a total
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CHAPTER– 3
INTRODUCTION OF TAXATION
Taxation
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The term “Taxation” comes from the Latin word “Taxatio”. It means to determine
the payable quantum on estimate. According to Justice Holmes “The price paid to
the government for living in a civilized society is the tax. According to Taylor
pay soldiers and policy, to build dams and roads, to operate schools and hospitals,
to provide food to the poor and medical care to the elderly, and for hundreds of
other purposes. Without taxes to fund its activities, government could not exist.
Taxation is a major instrument for the conduct of public policy. This is true
of both the government anti private sectors with a view of furthering certain
economic objectives.
CHARACTERISTICS OF TAX
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Direct Tax payment has age limit
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Direct Tax
Direct taxes are directly imposed on the tax payer. They depend on the income
and wealth of an individual or entity.
This is one of the most well-known and least understood taxes. It is the tax that is
levied on your earning in a financial year. There are many facets to income tax,
such as the tax slabs, taxable income, tax deducted at source (TDS), reduction of
taxable income, etc. The tax is applicable to both individuals and companies. For
individuals, the tax that they have to pay depends on which tax bracket they fall
in. This bracket or slab determines the tax to be paid based on the annual income
of the assesse and ranges from no tax to 30% tax for the high income groups.
The government has fixed different taxes slabs for varied groups of individuals,
namely general taxpayers, senior citizens (people aged between 60 to 80, and very
In the Union Budget 2018, a standard deduction of Rs.40000 has been introduced
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reimbursement. This proposal will benefit about 2.5 crore salaried employees and
To ease tax burden for senior citizens, there is an exemption of interest income of
also a rise in limit for tax deduction on health insurance premium from Rs.30,000
to Rs.50,000 under Section 80D. There is no TDS required under Section 194A
Income tax slab for individual tax payers & HUF (less than 60 years old)
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TYPES OF INDIRECT TAX
goods which are imported into India. In some cases, it is also levied when the
SERVICE TAX IN INDIA: Service Tax is a tax which is levied on the Services
levy Service Tax on the same. This service tax is collected from the recipient of
VALUE ADDED TAX: VAT stands for Value Added Tax and is levied on the
of taxation, with tax being levied on value addition at each stage of transaction in
the production/ distribution chain. The term ‘value addition’ implies the increase
EXCISE DUTY: Excise Duty is an indirect tax levied on those goods which are
manufactured in India. The taxable event in this case is manufacture and the
liability of central excise duty arises as soon as the goods are manufactured. It is
SERVICE TAX: Service tax is applied generally at the rate of 12.36%, which
has been revised to 14% from April 2015. This type of indirect tax is levied by
the service tax provider and paid by the recipient of the services. However, in
some cases the liability for the tax is divided between the recipient as well as the
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provider of service.
This indirect tax is imposed when stocks are sold or purchased through any Indian
stock exchange. STT was introduced in 2004 and is applicable to shares, mutual
funds, and future and options transactions. STT was imposed to reduce the short-
term capital gains tax and eliminate long-term capital gains tax.
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CHAPTER– 4
SERVICE TAX.
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Introduction to Goods and Services Tax (GST)
About GST:
The Good and services tax (GST) is the biggest and substantial indirect tax reform
since 1947. The main idea of GST is to replace existing taxes like value-added
tax, excise duty, service tax and sales tax. GST as it is known is all set to be a
game changer for the Indian economy. India as world’s one of the biggest
democratic country follow the federal tax system for levy and collection of
various taxes. Different types of indirect taxes are levied and collected at different
point in the supply chain. The center and the states are empowered to levy
respective taxes as per the Constitution of India. The Value Added Tax (VAT)
Central excise duty at the national level and the sales tax system at the State level.
Now the Goods and Services Tax (GST) will be a further significant breakthrough
- the next logical step - towards a comprehensive indirect tax reform in the
country.
Several countries have already established the Goods and Services Tax. In
Australia, the system was introduced in 2000 to replace the Federal Wholesale
Sales Tax was replaced by GST in Canada, in the year 1991. In Singapore, GST
was implemented in 1994. GST is a value-added tax in Malaysia that came into
effect in 2015.
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History of GST in India
2000: In India, the idea of adopting GST was first suggested by the Atal Bihari
Committee (EC) to create a structure for GST, based on their experience in designing
State VAT. Representatives from the Centre and states were requested to examine
various aspects of the GST proposal and create reports on the thresholds, exemptions,
taxation of inter-state supplies, and taxation of services. The committee was headed
by Asim Dasgupta, the finance minister of West Bengal. Dasgupta chaired the
2004: A task force that was headed by Vijay L. Kelkar the advisor to the
finance ministry, indicated that the existing tax structure had many
February 2006: The finance minister set 1 April 2010 as the GST
introduction date.
that states will have to prepare and make reforms for the upcoming GST regime.
February 2007: The 1 April 2010 deadline for GST implementation was
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February 2008: At the union budget session for 2008-09, the finance minister
confirmed that considerable progress was being made in the preparation of the
roadmap for GST. The targeted timeline for the implementation was confirmed to be
1 April 2010.
July 2009: Pranab Mukherjee, the new finance minister of India, announced the basic
skeleton of the GST system. The 1 April 2010 deadline was being followed then as
well.
November 2009: The EC that was headed by Asim Dasgupta put forth the
First Discussion Paper (FDP), describing the proposed GST regime. The paper
was expected to start a debate that would generate further inputs from
stakeholders.
laid the foundation for GST. This project, with a budgetary outlay of Rs.1,133
March 2011: The government led by the Congress party puts forth the
protest by the opposition party, the Bill was sent to a standing committee for a
detailed examination.
June 2012: The standing committee starts discussion on the Bill. Opposition
parties raise concerns over the 279B clause that offers additional powers to the
meetings and set the deadline for resolution of issues as 31 December 2012.
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February 2013: The finance minister, during the budget session, announces that the
the state finance ministers to work in association with the government for the
the parliament. The panel approves the regulation with few amendments to the
October 2013: The state of Gujarat opposes the Bill, as it would have to
taxation rule.
May 2014: The Constitution Amendment Bill lapses. This is the same year
December 2014: India’s new finance minister, Arun Jaitley, submits the Constitution
(122nd Amendment) Bill, 2014 in the parliament. The opposition demanded that the
February 2015: Jaitley, in his budget speech, indicated that the government
May 2015: The Lok Sabha passes the Constitution Amendment Bill. Jaitley also
announced that petroleum would be kept out of the ambit of GST for the time being.
August 2015: The Bill is not passed in the Rajya Sabha. Jaitley mentions
March 2016: Jaitley says that he is in agreement with the Congress’s demand for the
GST rate not to be set above 18%. But he is not inclined to fix the rate at 18%.
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In the future if the Government, in an unforeseen emergency, is required to raise
the tax rate, it would have to take the permission of the parliament. So, a fixed
June 2016: The Ministry of Finance releases the draft model law on GST to
proposal on the four broad amendments to the Bill. The Bill was passed in the Rajya
Sabha.
September 2016: The Honorable President of India gives his consent for the
2017: Four Bills related to GST become Act, following approval in the parliament
Goods and Services Tax (GST) is an indirect tax which was launched at midnight on
1 July 2017 by the President of India, Pranab Mukherjee and Prime Minister of India,
Narendra Modi. The launch was marked by a historic midnight (30 June-1 July)
session of both houses of the Parliament convened at the Central Hall of the
Parliament. GST is applicable throughout India which will replace multiple cascading
taxes levied by the central and state governments. It was introduced as The
Constitution (One Hundred and First Amendment) Act 2017, following the passage
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of Constitution 122nd Amendment Act Bill.
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Key features of GST
Destination-Based Consumption
Payment of GST
GST on Imports
Maintenance of Records
Administration of GST
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1. Dual Goods and Service Tax: CGST and SGST
This implies that all SGST collected will ordinarily accrue to the State where the
under the GST will be invoice credit method i.e. cenvat credit will be allowed on
4. Payment of GST: The CGST and SGST are to be paid to the accounts of the
Government Company called Goods and Services Tax Network (GSTN), jointly
set up by the Central and State Governments will provide shared IT infrastructure
and services to the Central and State Governments, tax payers and other
stakeholders.
6. GST on Imports: Centre will levy IGST on inter-State supply of goods and
services. Import of goods will be subject to basic customs duty and IGST.
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8. Administration of GST: Administration of GST will be the responsibility of
the GST Council, which will be the apex policy making body of the GST.
Members of GST Council comprised of the Central and State ministers in charge
Goods and Service Tax Council : The GST Council will be a joint forum of the
Centre and the States. The Council will make recommendations to the Union and
the States on important issues like tax rates, exemption list, threshold limits,
etc. One-half of the total number of Members of the Council will constitute the
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GST MODEL
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CGST means Central Goods and Service Tax. CGST is a part of goods and
service tax. It is covered under Central Goods and Service Tax Act 2016. Taxes
collected under Central Goods and Service tax will be the revenue for central
Government. Present Central taxes like Central excise duty, Additional Excise
duty, Special Excise Duty, Central Sales Tax, Service Tax etc. will be subsumed
SGST means State Goods and Service Tax. It is covered under State Goods and
Service Tax Act 2016. A collection of SGST will be the revenue for State
Government. After the introduction of SGST all the state taxes like Value Added
Tax, Entertainment Tax, Luxury Tax, Entry Tax etc. will be merged under SGST.
For example, if goods are sold or services are provided within the State then
IGST means Integrated Goods and Service Tax. IGST falls under Integrated
Goods and Service Tax Act 2016. Revenue collected from IGST will be divided
between Central Government and State Government as per the rates specified by
the government. IGST will be charged on transfer of goods and services from one
state to another state. Import of Goods and Services will also be deemed to be
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GST Rates in India
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GST Council
It will constitute union minister of state in charge of revenue and minister in charge of
finance or taxation or of any other field nominated by state governments. The 2/3rd
o Taxes, surcharge, cess of central and states which will be integrated in GST.
o Provision with respect to special category states specially north east states
The Council would consist of 2/3rd representation of states and 1/3rd representation
of the Centre. The GST Council will take all decisions regarding tax rates, dispute
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Goods and Services Tax Network (GSTN)
Goods and Services Tax Network has been set up by the Government as a private
company under erstwhile Section 25 of the Companies Act, 1956. GSTN would
provide three front end services, namely Registration, Payment and Return to
taxpayers. It will also assist some State with the development of back end
modules.
Goods and Services Tax Network (GSTN) is a Section 8 (under new companies
Act, not for profit companies are governed under section 8), non-Government,
Government of India holds 24.5% equity in GSTN and all States of the Indian
Union, including NCT of Delhi and Pondicherry, and the Empowered Committee
of State Finance Ministers (EC), together hold another 24.5%. Balance 51%
equity is with non- Government financial institutions. The Company has been set
Governments, tax payers and other stakeholders for implementation of the Goods
and Services Tax (GST). The Authorized Capital of the company is Rs.
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Structure of GSTN
The GST System Project is a unique and complex IT initiative. It is
unique as it seeks, for the first time to establish a uniform interface for
the tax payer and a common and shared IT infrastructure between the
Centre and States. Currently, the Centre and State indirect tax
bring all the tax administrations (Centre, State and Union Territories)
destination based tax, the inter- state trade of goods and services
Prior to this, the Union Ministry of Finance had set up the Technical
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including GST.
8 (under new companies Act, not for profit companies are governed
under section 8) of the Companies Act 1956 with the following equity
structure:
Shareholder Shareholding
HDFC 10%
In brief, the decision to structure GSTN in its current form was taken after
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GSTIN
alphanumeric number.
Next number shows the entity number of the same PAN holder in a
1 2 3 4 5 6 7 8 9 1 1 1 1 1 1
0 1 2 3 4 5
State PAN Entity
code Code/
Check
Digit
SWOT Analysis
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Strengths
GST provides a comprehensive and a wider coverage of input credit set off
service tax credit could be used for the payment of tax on the sale of goods etc.
A single GST could be used instead of other indirect taxes at the state and c entral
level.
It helps in the reduction of prices of the goods and services to the consumer with the
reduction of tax.
It would reduce transaction costs and unnecessary wastage to both government and
individuals.
Weaknesses
It doesn’t include alcohol and petroleum products which would lead to incurring of
huge losses.
Single GST rate would be high compared to individual indirect tax rate.
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Opportunities
Reduction in tax burden will increase the competitiveness of Indian products in the
international market.
There would be a gradual increase in the revenues of state and the union.
Threats
Beneficiaries of the system are uncertain. It could be either state or the center. This
Lack of co-ordination between the Centre and the state might affect the
From the above SWOT analysis it is clear that GST would create uniformity of
taxes and also reduce tax burden. This in turn would increase revenues of the
state and the union at the country level and increase competition at the
international level. But this in reality might appear to be a dual tax system and
dependent on the efficiency of the system. Co-ordination between the Centre and
the state only can help in its implementation and execution of the proposed plan.
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Therefore before implementation of such a tax regime, it should be carefully
Reduce tax burden on producers and foster growth through more production. This
and retards growth. GST would take care of this problem by providing tax credit to
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the manufacturer.
Various tax barriers such as check posts and toll plazas lead to a lot of wastage for
perishable items being transported, a loss that translated into major costs through
higher need of buffer stocks and warehousing costs as well. A single taxation system
A single taxation on producers would also translate into a lower final selling price for
the consumer.
Also, there will be more transparency in the system as the customers would know
exactly how much taxes they are being charged and on what base.
GST provides credits for the taxes paid by producers earlier in the goods/services
chain. This would encourage these producers to buy raw material from different
registered dealers and would bring in more and more vendors and suppliers under the
purview of taxation.
GST also removes the custom duties applicable on exports. Our competitive in foreign
The proposed GST regime, which will subsume most central and state-level taxes, is
The introduction of Goods and Services Tax would be a very noteworthy step in the
field of indirect tax reforms in India. By amalgamating a large number of Central and
State taxes into a single tax, it would alleviate cascading or double taxation in a major
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GST REGISTRATION
Rs. 20 lakhs and for person conducting business in North-East state are
lakhs.
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A person has to take registration in the state from where taxable goods
Every person who is liable to be registered under Schedule III of this Act,
shall apply for registration in every such State in which he is liable within
A person, though not liable to be registered under Schedule III, may get
Every person shall have a Permanent Account Number issued under the
Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of
The registration or the Unique Identity Number, shall be granted or, as the
case may be, rejected after due verification in the manner and within such
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GST registration page
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GST Identification Number
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
State PAN Entity
code
Code/ Check
digit
Amendment of Registration
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Tax Invoice:
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GST RETURNS
Every registered taxable person shall, for every calendar month or part thereof,
credit availed, tax payable, tax paid and other particulars as may be prescribed
Provided that a registered taxable person paying tax under the provisions of
Section 8 of this Act shall furnish a return for each quarter or part thereof,
Every registered taxable person, who is required to furnish a return under sub-
section (1), shall pay to the credit of the appropriate Government the tax due as
per such return not later than the last date on which he is required to furnish such
return.
A return furnish under the sub-section (1) by a registered taxable person without
payment of full tax due as per such return shall not be treated as a valid return for
allowing input tax credit in respect of supplies made by such person. Every
registered taxable person shall furnish a return for every tax period under sub-
section (1), whether or not any supplies of goods or services have been effected
Note: Subject to the provisions of Section 25 and 26, if any taxable person after
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than as a result of scrutiny, audit, inspection or enforcement activity by the tax
authorities, he shall rectify such omission in the return to be filed for the month or
quarter, as the case may be, during which such omission are noticed, subject to
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Types of GST Returns
GSTR-1
GSTR-2
GSTR-3
GSTR-4
GSTR-5
GSTR-6
GSTR-7
GSTR-8
GSTR-9
GSTR-10
GSTR-11
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GSTR-1
GSTR-1 is a monthly return that should be filed by every registered dealer by the
10th of the following month. It is the first or the starting point for passing input
tax credit to the dealers. It contains details of all outward supplies i.e. sales.
GSTR-1 has to be filed by "all" taxable registered persons under GST. However,
there are certain dealers who are not required to file GSTR-1, instead are required
to file other different GST returns as the case may be. These dealers are E-
even in cases where there is no business conducted during the reporting month.
File GSTR-1
The Suppliers need to log in to the GSTN portal with the given User ID and
Returns Dashboard.
In the Dashboard, the dealer has to enter the financial year and the month
for which the return needs to be filed. Click on Search after that.
After this, he will have the option either to prepare online or to upload the
return.
The dealer will now Add invoices or upload all invoices directly. Once the
entire form is filled up, the dealer shall then Click on Submit and validate
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With the data validated, dealer will now click on FILE GSTR-1 and
generated.
GSTR-2
received during a tax period for every registered taxable person. These
addition to the data which is generated through GSTR 2A, viz. Details of
Reverse Charge basis and Imports effected during the tax period, etc
It is mandatory to file a GST Return for each and every entity registered
under the GST Act. Even in case where there are no inward supplies
during the tax period, NIL return for that period is required to be filed. In
case of failure to file the return within due period, the tax payer is
penalized with the late fees of INR 100 per day up to a maximum limit of
INR 5,000/-
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When to file GSTR-2 ?
Every registered taxable person is required to furnish details of Inward Supply for a tax
However to facility the ease of payment and return filing for small and medium scale
businesses with annual aggregate turnover up to Rs.1.5 crores, it has been decided
that such tax payers shall be required to file quarterly returns in Form GSTR 1,2 and
3 and pay taxes only on quarterly basis, starting from the third quarter of this
financial year.
GSTR-3
GSTR-3 is a return to be filed on monthly basis (compounding and ISD
GSTR- 1 and GSTR-2. The form captures the information of outward and
the entire turnover related details, including, local sales turnover, export
sales turnover, exempted local sales turnover, turnover except GST and
GSTR-4
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Taxpayers otherwise eligible for the compounding scheme can opt against the
compounding and file monthly returns and thereby make their supplies eligible
for ITC in hands of the purchasers. Compounding taxpayer will also file a simple
GSTR-5
Non –Resident Taxpayers would have to file GSTR-1, GSTR-2 and GSTR-3
returns for the period for which they have obtained registration. The registration
the period for which they have obtained registration within a period of seven
days after the date of expiry of registration. In case registration period is for
more than one month, monthly return(s) would be filed and thereafter return for
remaining period would be filed within a period of seven days as stated earlier.
GSTR 6
distribution of ITC
GSTR-7
GSTR 7 is a return to be filed by the persons who is required to deduct TDS (Tax
deducted at source) under GST. GSTR 7 contains the details of TDS deducted,
TDS liability payable and paid, TDS refund claimed if any etc.
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GSTR-8
GSTR-8 is a return to be filed by the e-commerce operators who are required to
deduct TCS (Tax collected at source) under GST. GSTR-8 contains the details of
such supplies.
GSTR-9
under GST including those registered under composition levy scheme. It consists
of details regarding the supplies made and received during the year under
different tax heads i.e. CGST, SGST and IGST. It consolidates the information
Annual Return
deductors under Section 37, a casual taxable person and a non-resident taxable
person, shall furnish an annual return for every financial year electronically in
such form and in such manner as may be prescribed on or before the thirty first
day of December following the end of such financial year. Every taxable person
who is required to get his accounts audited under sub- section (4) of section 42
shall furnish, electronically the annual return along with the audited copy of the
declared in the return furnished for the year with audited annual financial
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Challenges faced during Return Filing
Input
VAT Credit
Interaction
with govt. Once a
for Quarter
compliance
or Month
3 times
Return
every filing
month
Need to
Summary upload
of Sales or
Purchase
every
needed Transaction
.
invoice of
Not Supplier
Monitored and
Extensively Recipient
need
Availed
GST based on
Returns
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There are three important concepts in GST
TTime
im e of
o f SSupply
u p p ly
PPlace
la c e ooff SSupply
u p p ly
VValue
a lu e ooff SSupply
u p p ly
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1. Time of Supply
As per Section 13 Time of supply means the point in time when goods/services
are considered supplied’. When the seller knows the ‘time’, it helps him identify
CGST/SGST or IGST must be paid at the time of supply. Goods and services
Section 31(1) of the CGST Act provides that a registered person supplying
Section 2 of the CGST Act. If invoice is not created time of removal shall be taken as
If invoice is created earlier than time of removal, time of supply shall be treated as
If payment is received with respect to supply of goods earlier than making of invoice,
Concept of time of supply of goods provided in GST law shows a departure from
the earlier Central Excise provisions. In the Central Excise provisions invoice was
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required to be made at the time of removal only. These provisions give liberty to
trade and industry to prepare invoice well in advance of removal of goods. Thus,
a supplier of goods may issue an invoice to recipient but removes goods only
after, say receipt of payment. If in the meantime say, payment is not received, he
can cancel the invoice as per provisions of GST laws. Such cancellation of
invoice shall not result in removal of goods, retaking or return of goods in the
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It consists of mainly three points
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A. Time of Supply of Goods
Note: GST is not applicable to advances under GST. GST in Advance is payable
at the time of issue of the invoice.
In case of reverse charge the time of supply for service receiver is earliest of:
1. Date of payment
2. 30 days from date of issue of invoice for goods (60 days for services)
‘Date of Payment’ is not applicable for goods and applies only to services.
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Place of supply
It is very important to understand the term ‘place of supply’ for determining the
right tax to be charged on the invoice.
Place Of
Place of Supply
Supply Of
of Services
Goods
So, the place of supply of goods is the place where the ownership of goods
changes.
What if there is no movement of goods. In this case, the place of supply is the
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Place of Supply When There is Movement of Goods
recipient on the direction of a third person received the goods and the place of
(whether agent or not) before or during supply of such goods will be the principal
No Movement of Goods
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Supply is : Place of supply
No movement of goods, either by the supplier Location of such goods at the time of the
site.
There is no movement of goods (work stations), so the place of supply will be the
location of such goods at the time of delivery (handing over) to the receiver.
In cases where the services are provided to an unregistered dealer and their
location is not available the location of service provider will be the place of
provision of service.
Special provisions have been made to determine the place of supply for the
following services:
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Services related to immovable property
Restaurant services
Admission to events
Telecom services
GST is destination based tax i.e. consumption tax, which means tax will be levied
where goods and services are consumed and will accrue to that state.
Under GST, there are three levels of Tax, IGST, CGST & SGST and based on the
‘’place of supply’’ so determined, the respective tax will be levied. IGST is levied
where transaction is inter-state, and CGST & SGST are levied where the
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Category of supply of services:
Domestic Transactions
These are the transactions where both the parties i.e. the supplier as well as
recipient of service are in India. Domestic transactions can be further categorized
as below:
In general, the place of supply for services will be the location of the service
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recipient (the recipient needs to be a registered person). In cases, where service is
International Transactions
These are the transactions where either of the service recipient or the provider is
outside India. Transactions in which both the recipient as well as provider are
General Rule
The Place of Supply for services treated as international transactions shall be:
In case where the location of service recipient is not available, the place of
The amount collected by the seller from the buyer is the value of supply.
But where parties are related and a reasonable value may not be charged, or
transaction may take place as a barter or exchange; the GST law prescribes that
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the value on which GST is charged must be its ‘transactional
value’. This is the value at which unrelated parties would transact in the normal
course of business. It makes sure GST is charged and collected properly, even
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ACCOUNTS AND RECORDS
Every registered person shall keep and maintain, at his principal place of
services, of stocks of goods, of input tax credit availed, of output tax payable and
paid, and such other particulars as may be prescribed in this behalf: Provided that
registration, the accounts relating to each place of business shall be kept at such
places of business concerned: Provided further that the registered person may
keep and maintain such accounts and other particulars in the electronic form in
Every registered taxable person whose turnover during a financial year exceeds
the prescribed limit shall get his accounts audited by a chartered accountant or a
cost accountant and shall submit to the proper officer a copy of the audited
section 30 and such other documents in the form of manner as may be prescribed
in this behalf.
Every registered taxable person required to keep and maintain books of account
or other records under sub-section (1) of section 42 shall retain them until the
expiry of sixty months from the last date of filing of Annual Return for the year
pertaining to such accounts and records: Provided that a taxable person, who is a
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party to an appeal or revision or any other proceeding before any Appellate
retain the books of account and other records pertaining to the subject matter of
such appeal or revision or proceeding for a period of one year after final disposal
of such appeal or revision or proceeding, or for the period specified under sub-
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AUDIT
Audit by tax authorities
audit of the business transactions of any taxable person for such period, at such
The tax authorities referred to in sub-section (1) may conduct audit at the place of
The taxable person shall be informed by way of notice, sufficient in advance, not
The audit under sub-section (1) shall be carried out in a transparent manner and
completed within a period of three months from the date of commencement of audit.
During the course of audit, the authorized officer may require the taxable person,
To afford him the necessary facility to verify the books of accounts or other
To furnish such information as he may require and render assistance for timely
On conclusion of audit, the proper officer shall without delay inform the taxable
person, whose records are audited, of the findings, the taxable person's rights and the
Where the audit conducted under sub-section (1) results in detection of tax not paid or
short paid, the officer may initiate action under section 51.
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OFFENCES AND PENALTIES
Collects any amount as tax but fails to pay the same to the credit of
inappropriate Government beyond a period of three months from the date on
which such payment becomes due .
Any person who contravenes any of the provisions of this Act or rules made
there under for which no penalty is separately provided for in this Act, shall
be liable to a penalty which may extend to Rs. 25,000/-
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Conclusion
It can be concluded from the above discussion that GST will provide relief to
input tax credit set-off, service tax set off and subsuming the several taxes.
Efficient formulation of GST will lead to resource and revenue gain for both
Centre and States majorly through widening of tax base and improvement in tax
various sectors and industry. Centre has decided to review the existing
exemptions from Central Excise Duty so that list of goods exempt from CGST
and SGST list and 99 items exempted from VAT are taken off from both the
components of GST. VAT has to some extent reduced tax-evasion and frauds. It
is encouraging to note that most of the traders and general public are aware of
VAT. GST, the major reforms on indirect taxes, will reduce tax burden due to
tax revenue will be increased considerably due to inclusion of more goods and
services, and at last the cost of compliance will be reduced for the dealers. The
throughout the country. This single most important tax reform initiative by the
investment and growth of our country’s economy. To get the desired result, it
should be assured that the benefit of input credit is ultimately enjoyed by final
stake holders namely, Central and State Government, trade and industry. GST
effect the indirect taxation systems and help reduce the burden on tax payer. GST
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help to reduce the burden of record make and file maintain. Because GST cover
10-12 Tax. GST reduce the price of various goods and increase the sale. After the
Systems will remove and it easy to all tax payer to pay the tax to government.
Efficient formulation of GST will lead to resource and revenue gain for both
Centre and States majorly through widening of tax base and improvement in tax
concentrated efforts of all stake holders namely, Central and State Government,
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39th GST Council Meeting Summary
The 39th GST Council meeting happened on Saturday, 14th March 2020 at New
Delhi. The Union FM Nirmala Sitharaman chaired this meeting and took
The implementation of the new GST return system has been postponed to 1st
October 2020. Also, the implementation of e-invoicing and the QR code has been
The present return system (GSTR-1, GSTR-2A & GSTR-3B) will be continued
GST on mobile phones and specified parts was increased from 12% to 18%. This
decision was taken to avoid difficulties due to the inverted duty structure.
All types of matches have been rationalised to a single GST rate of 12%. Till
now, the handmade ones were taxed at 5% and the rest was taxed at 18%.
All these rate changes will come into effect from 01 April 2020.
The GSTR-9 & 9C deadline is extended to 30 June 2020 for FY 2018-19. Also,
the turnover limit will be increased from Rs 2 crore to Rs 5 crore for mandatory
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annual return filing. Hence, filing GSTR-9C is optional for the taxpayers having
2017-18 and FY 2018-19 will not pay any late fee for delayed filing of GSTR-9.
The GSTR-1 for 2019-20 will be waived for certain taxpayers who could not opt
for the special composition scheme (notification No. 2/2019-Central Tax (Rate)
The due date of Form GSTR-3B for July 2019 to January 2020 is extended till
24th March 2020 for taxpayers with a principal place of business in the Union
Taxpayers who have cancelled their GST registration till 14th March 2020 can
fill this application is available till 30th June 2020. The extension is a one-time
Other decisions
The time limit for finalisation of the e-Wallet scheme for consumers is extended
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A special GST procedure was prescribed during the CIRP period for the GST
A transition plan is laid down till 31st May 2020 for the taxpayers belonging to
Dadra and Nagar Haveli & Daman and Diu, due to the merger in January 2020.
Refund claims will now be processed in bulk for the benefit of the exporters.
Present IGST and cess exemptions on the imports made under the
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ANNEXURE
91
QUESTIONNAIRE
understanding and expectations from the proposed Goods and Services Tax
You are being invited to take part in this research because your experience with
taxation and the financial services industry coupled with your knowledge of the
The data from this study will be used in the completion of my Summer Training,
conferences. Your response will be anonymous, and so anyone who takes part in
This survey will take about 5 – 10 minutes. Most questions are multiple choice
and we ask that you simply provide us with your best answer.
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□ More than 10
4. Whether separate indirect tax team?
□ Yes
□ No
□ Not Applicable
5. If yes number of members in tax team for indirect tax
□ 0-5
□ More than 5
□ Not Applicable
6. % of indirect tax paid to total tax paid by the business – By the
business/by clients
Financial % of IDT to 0-10% 11-25% 26-50% More
year total tax than 50%
FY 2011-
12
FY 2012-
13
FY 2013-
14
7. Does the department apply the existing service tax laws fairly?
□ Yes
□ No
8. Have you faced practical difficulties in compliances under the current
□ Yes
□ No
Examples - __________________________________
9. Have you ever encountered technical problems with the tax (eg, uncertainty
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□ Yes
□ No
Examples -________________________________________
_______________________________________________
□ Yes - Satisfactory
11. Can you comment on the following in relation to the existing provisions
guide)
□ Yes satisfactory
(Secured Debts are not specifically included – currently addressed only in the
education guide)
□ Yes satisfactory
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Whether the definition of securities is satisfactory? (Securities as defined by
Reserve Bank of India – ‘RBI’ are still not specifically covered – currently
□ Yes satisfactory
Whether the existing definition of banking services as included in the negative list
is very clear? – (Eg to add Income on securities and services provided to RBI)
□ No – Not clear
is clear and unambiguous? If yes, are you clear on the state in which the financial
service would be provided under the proposed GST regime and whether Rule 3/9
services?
□ Yes clear
□ No not clear
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Whether current law is clear on the taxability of interchange income received by
issuing banks?
□ Yes
□ No
12. Are you aware of the taxing provisions for financial services under GST
regime globally? Can you suggest any provision which could be incorporate
□ Yes
□ No
Comments -
_____________________________________________
_____________________________________
13.The taxability of the interstate transaction under the proposed GST is based on
the following:
Central GST ‘CGST’/ State GST – ‘SGST’ and Integrated GST – ‘IGST’ C-VAT
□ IGST
□ C-VAT
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14. Do the existing POPS need to be more clear and precise for
□ Yes
□ No
15.Have you /your clients been subject to audits (CERA/EA 2000/VAT etc.) from
the department in relation to service taxes? If yes, were the issues raised resolved in
an appropriate manner?
□ Yes
□ No
Issues Resolved
□ Yes
□ No
□ Not Applicable
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Reference
www.gst.gov.in
www.gstn.org
www.gstcouncil.gov.in
www.cbec.gov.in
www.wikipedia.com
www.cleartax.com
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