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GST Unit 1 B
GST Unit 1 B
DEPARTMENT OF
COMMERCE
MASTERS OF COMMERCE
GST [CMA-655]
Course Outcome
CO Title Level
Number
CO1 To apply sophisticated knowledge Remember
related to GST rules and regulations
and analyse and resolve tax
problems
2
UNIT- 1 B
GOODS &
SERVICES TAX
(GST)
4
FEATURES OF DRAFT GST
LAW (MGL)
5
FEATURES OF
MGL….
Tax on supply of goods or services rather than
manufacture /
production of goods, provision of services or sale of goods
Powers to declare certain supplies as supply of goods or of services or
of neither – Schedule II
On Intra-State supplies of goods and/ or services - CGST & SGST shall
be levied by the Central and State Government respectively, at the rate
to
OnbeInter
prescribed
-State supplies of goods and/ or services - IGST shall be levied
by the Central Government, at the rate to be prescribed
Elaborate Rules provided for determining the place of supply
Intra-State supply of goods and/or services - where the location of the
supplier and the place of supply are in the same State
Inter-State supply of goods and/or services - where the location of the
supplier and the place of supply are in different States
6
….FEATURES OF MGL….
Liability to pay tax arises only when the taxable person
crosses the exemption threshold
Taxable person is a person who is registered or required to
be registered under Schedule-III
Provision for levy of fixed tax on aggregate turnover upto a
prescribed limit in a financial year (Composition scheme)
without participation in ITC chain
Elaborate principles devised for determining the time of
supply of goods and services with following being crucial
determinants with certain exceptions:
Date on which supplier issues invoice
Date on which supplier receives the payment , whichever is
earlier
7
….FEATURES OF MGL….
Tax is to be paid on Transaction value (TV) of supply generally i.e.
the price actually paid or payable for the supply of goods and/or
services
ITC is available in respect of taxes paid on any supply of goods
and / or services used or intended to be used in the course or
furtherance of business (i.e. for business purposes)
Negative list approach for non-allowance of ITC
ITC of tax paid on goods and / or services used for making taxable
supplies by a taxable person allowed subject to four conditions:
possession of invoice;
receipt of goods or services;
tax actually paid by supplier to government;
furnishing of return
Full ITC allowed on capital goods in one go 8
….FEATURES OF MGL….
Proportionate credits allowed in case inputs, inputs services
and capital goods are used for business and non-business
purposes
Proportionate credits allowed in case inputs, inputs services
and capital goods are used for taxable and non-taxable
supplies
ITC cannot be availed on invoices more than one year old
ITC available only on provisional basis for a period of two
months until payment of tax and filing of valid return by the
supplier
Matching of supplier’s and recipient’s invoice details
ITC to be confirmed only after matching of such information
ITC to be reversed in case of mis-match
9
….FEATURES OF
MGL….
PAN based Registration
required to be obtained for each State from where
taxable
supplies are being made
A person having multiple business verticals in a State
may obtain separate registration for each business vertical
Liability to be registered:
Every person who is registered or who holds a license under an
earlier law;
Every person whose turnover in a year exceeds the threshold
A person, though not liable to be registered, may take voluntary
registration
Certain suppliers liable for registration without threshold
10
….FEATURES OF
MGL….
Registration to be given by both Central and State Tax Authorities
on a common e-application
Deemed registration after three common working days from date
of application unless objected to
Self –serviced Amendments except for certain core fields
Provision for surrender of registration and also for suo-
moto
cancellation by the tax authorities
Normal taxpayers, compositions taxpayers, Casual taxpayers,
non-resident taxpayers, TDS Deductors, Input service Distributors
(ISDs) to file separate electronic returns with different cut-off
dates
Annual return to be filed by 31st December of the following
Financial Year along with a reconciliation statement
Short-filed returns not to be treated as a valid return for matching
& allowing ITC and fund transfer between Centre and States 11
….FEATURES OF
MGL….
16
GST
N
Incorporated on 28.03.2013 as Section 25 private
limited company with authorized equity of Rs. 10 Crores
Strategic control to remain with Government
Equity Holders
Central Government - 24.5%
EC and all States together - 24.5%
Financial Institutions – 51%
To function as a Common Pass-through portal for taxpayers-
submit registration application
file returns
make tax payments
Appointed Infosys as Managed Service Provider (MSP)
17
ROLE OF CBEC
18
ROLE OF
CBEC
Prominent role as custodian of Centre’s fiscal destiny in relation
to indirect taxes
Role in Policy making: Drafting of GST Law, Rules &
Procedures
– CGST & IGST Law
Assessment, Audit, Anti-evasion & enforcement under CGST &
IGST Law
Levy & collection of Central Excise duty on products outside
GST
– Petroleum Products & Tobacco
Levy & collection of Customs duties
Evolving a joint Dispute resolution mechanism
Developing linkages of CBEC-GST System with GSTN 19
WAY FORWARD
20
WAY
FORWARD….
Ratification of CAB by 50% States
Presidential Assent of Constitution Amendment and notification
in official Gazette
Cabinet Approval for Formation of GST Council
Recommendation of Model GST laws by GST Council
Cabinet Approval for the CGST and IGST laws by Centre and
for SGST laws by all states
Passage of CGST and IGST laws by Parliament and passage
of SGST laws by all State legislatures
Notification of GST Rules
Establishment of IT 21
….WAY
FORWARD
Meeting implementation challenges
Effective coordination between Centre & State
tax administrations
Reorganization of field formations
Training of Officials and Trade & Industry
Augmentation of human resources
Spreading Accounting Literacy
Developing IT skills
Reorganisation of Audit procedures
Harmonization of processes & procedures between CGST / IGST
& SGST 35
THANK YOU
For queries
Email: [email protected]