CHANDIGARH UNIVERSITY

DEPARTMENT OF
COMMERCE
MASTERS OF COMMERCE
GST [CMA-655]

GST DISCOVER . LEARN .

EMPOWER
 GST

Course Outcome
CO Title Level
Number
CO1 To apply sophisticated knowledge Remember
related to GST rules and regulations  
and analyse and resolve tax
problems

CO2 To analyze, define tax issues Understand

through their understanding,  
knowledge and application of
research methods and databases

CO3 To apply& Recognise relevant Understand

ethical standards as required in tax
practice

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….

 System of electronic cash ledger and electronic ITC

ledger
 Taxcan be deposited by internet
banking, NEFT / RTGS, debit/credit card
and Over The Counter
 Date of credit to the Govt. account in the
authorized bank is the date of payment for credit
in electronic cash ledger
 Payment of Tax is made by way of the debit in the
electronic cash or credit ledger
 be made to such suppliers
Hierarchy for discharging payments of various tax
12
liabilities
 ….FEATURES OF
MGL….
 Time limit for refund of tax or interest is two years
 Refund of accumulated ITC allowed in case of exports or where
the credit accumulation is on account of inverted duty structure
 Refund to be granted within 90 days from the date of receipt of
complete application
 Interest is payable if refund is not sanctioned within 90 days
 Refund claim along with documentary evidence is to be
online
filed without any physical interface with tax authorities
 Immediate provisional sanction of 80% of refund claim
account
on of exports
 Principle of “Unjust enrichment” to be satisfied
 Tax refund will be directly credited to the bank
applicant
account of
 Refund can be withheld in specified circumstances even without
any stay from any higher appellate fora
13
 ….FEATURES OF
MGL….
 Self –assessment of tax
 Provisions for assessment of non- filers, unregistered
persons &
summary assessments in certain cases
 Provision made for provisional assessment on request of taxable
person – to be finalized in six months
 Audit can be conducted at the place of business of the taxable
person or at the office of the tax authorities, after prior intimation
to taxable person
 Audit to be completed within 3 months, extendable by a further
period of 6 months
 On conclusion of audit, the taxable person to be informed about
findings, his rights and obligations and reasons for the findings
 Adjudication order to be issued within 3/5 years of
filing of
annual return in normal cases & fraud / suppression 27
cases
 ….FEATURES OF
MGL
 No separate time lines for issue of SCN and adjudication order
 Taxable person can settle at any stage, right from
audit/investigation to the stage of passing of adjudication order
and even thereafter
 Officers to have power of search & seizure with inbuilt safeguards
 Restricted power to arrest and for prosecution provided for
 Elaborate provisions made for appeals up to Supreme Court
 Alternate dispute resolution mechanism such as advance ruling,
Settlement Commission provided for
 Comprehensive transitional provisions for smooth transition to
GST
 Provision for Job work provided
 System of GST Compliance rating provided
15
GST NETWORK (GSTN)

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]