Professional Documents
Culture Documents
28-05-2017 Nagpur GST Conclave3
28-05-2017 Nagpur GST Conclave3
6.Registration, Returns,
2. Problems In Present Indirect
Tax Structure
7.Payment of tax, refund ,
Job work
3. Salient Features of GST
8. Transition provision
su D
pp
ly Value Rs. 15000 +
Real
GST is destination based consumption tax Revenue
Authority Entry No. Residuary Entry No. 83, Entry No. 54 Entry No.
for levy of 84, List I, Entry No. List I, of List II 52 &62 List
Tax Schedule 97, List I, Schedule VII (VAT) and II,
VII Schedule 92A of List I Schedule
VII (CST) VII
Cascading of
taxes Varied concessions
Multiple
&
administration
exemptions
.
Narrow base
Shortcomings in Sales Vs Service dilemma
the present
structure
Interpretational issues
Multiple Compliance
Lack of requirements
transparency/ Lack of uniformity in
rules and rates
cohesion
04/29/2024 7
Taxes Proposed to be Subsumed under GST
• Central taxes • State taxes
Excise duty. VAT.
Additional Excise CST.
Duty. Entertainment Tax.
Service tax.
CGST Luxury tax.
SGST
CVD (Countervailing Tax on Lottery,
Duty). betting, gambling.
SAD (Special Entry tax.
Additional Duty). Purchase tax
Central Cesses & State Surcharges &
Surcharges. Cesses.
8
9
GST : A Game Changer
A single tax would replace multiple taxes.
Mitigate the ill effects of cascading.
Reduce economic distortions caused by inter-State
variations in taxes. Common national market.
Streamline tax administration and avoid harassment of
business.
10
Taxes not subsumed under GST
Entry Tax : –
12
The Constitution (101st Amendment)
Act, 2016
• Passed by RS & LS and ratified by the states.
Presidential assent received on 8th Sept,2016
Tax burden on goods and services would decrease, benefiting common man.
boost economic activity and create more jobs. The GDP would grow .
widening of tax base, increase in trade volumes and improved tax compliance.
19
Threshold exemption under GST :
All the registered taxable persons, having the same PAN have to opt.
NOT ELIGIBLE :
through an E commerce Operator
for a Consideration
(b) any activity or transaction in connection with or incidental or ancillary to (a) above;
(c) any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or
regularity of such transaction;
(d) supply or acquisition of goods including capital assets and services in connection with commencement or closure of
business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the
facilities or benefits to its members, as the case may be;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or
furtherance of his trade, profession or vocation;
(h) services provided by a race club by way of totalisator or a licence to book maker in such club;
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in
which they are engaged as public authorities; 26
SCHEDULE I
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION
1. Permanent transfer/disposal of business assets where input tax credit has been availed
on such assets.
Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an
employer to an employee shall not be treated as supply of goods or services or both.
3. Supply of goods—
(a) by a principal to his agent where the agent undertakes to supply such goods on
behalf of the principal, or
(b) by an agent to his principal where the agent undertakes to receive such goods on
behalf of the principal.
4. Importation of services by a taxable person from a related person or from any of his other
27
establishments outside India, in the course or furtherance of business.
Schedules- GST Law
SCHEDULE I
Activities to be treated as supply
even if made without consideration
1. Transfer
Transfer of the title in goods is a supply of goods
Transfer of goods or of right in goods or of undivided share in goods without the
transfer of title is a supply of services
Transfer of title in goods under an agreement that property in goods will pass at a
future date on payment of full consideration, is a supply of goods
3. Treatment or process
Treatment or process applied to another person’s goods is a supply of services
-----SCHEDULE-II :
ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SERVICES-----
3 1
4. Transfer of business assets
(a) where goods forming part of the assets of a business are transferred or disposed of by
or under the directions of the person carrying on the business so as no longer to form
part of those assets, whether or not for a consideration, such transfer or disposal is a
supply of goods by the person;
(b) where, by or under the direction of a person carrying on a business, goods held or used
for the purposes of the business are put to any private use or are used, or made
available to any person for use, for any purpose other than a purpose of the business,
whether or not for a consideration, the usage or making available of such goods is a
supply of services;
(c) where any person ceases to be a taxable person, any goods forming part of the assets
of any business carried on by him shall be deemed to be supplied by him in the course
or furtherance of his business immediately before he ceases to be a taxable person,
unless—
(i) the business is transferred as a going concern to another person; or
(ii) the business is carried on by a personal representative who is deemed to be a taxable
person.
-----SCHEDULE-II :
ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SERVICES-----
6. Composite supply :
The following composite supplies shall be treated as a
supply of services, namely:—
(a) works contract as defined in clause (119) of section
2; and
(b) supply, by way of or as part of any service or in any
other manner whatsoever, of goods, being food or any
other article for human consumption or any drink
(other than alcoholic liquor for human consumption),
where such supply or service is for cash, deferred
payment or other valuable consideration.
------SCHEDULE-II :
MATTERS TO BE TREATED AS SUPPLY OF GOODS OR SERVICES.
3 4
7. Supply of Goods
The following shall be treated as supply
of goods, namely:—
Supply of goods by any unincorporated
association or body of persons to a
member thereof for cash, deferred
payment or other valuable
consideration
SCHEDULE III :
Activities or transactions which shall be treated neither as a supply of goods
nor a supply of services
“Goods’’ means
Every kind of movable property
“services’’ means
anything other than goods, money and securities
But includes activities relating to the use of money or its conversion by cash or by any
other mode, from one form, currency or denomination, to another form, currency 37 or
denomination for which a separate consideration is charged;
Input Tax Credit (ITC)
Outward
Inward
supply
TAXABLE Supply
A PERSON C
Input tax Output tax
(a) Motor vehicles and other conveyances except when they are
used
(i) for making the following taxable supplies, namely
(B Transportation of passengers; or
40
(ii) for transportation of goods.
GOODS / SERVICES NOT ELIGIBLE FOR ITC….
membership of a club,
health and fitness center,
Non - Taxabl
Business Exempt
Business e
48
Proportionate reversal of credit
C1 = T- (T1+T2+T3);
Common credit C2 = C1- T4;
D1 : The amount of input tax credit attributable
towards exempt supplies.
D1= (E÷F) × C2
‘E’ is the aggregate value of exempt supplies,
‘F’ is the total turnover of the registered person
during the tax period:
T4 = Input tax attributable to-- used exclusively for
taxable /business purposes. 49
Proportionate reversal of credit
• the amount of credit attributable to non-
business purposes
D2 =5% of C2
the remainder of the common credit shall be the
eligible ITC
C3 = C2 - (D1+D2)
ITC of inputs held in ITC of inputs held in ITC of inputs held in ITC of inputs held in
stock* stock* stock* stock* relatable to
such exempt supply
Reduced CG credit
CG credit not CG credit not Reduced CG credit also allowed
allowed allowed also allowed
No ITC on an invoice after the expiry of one year from the date of issue of such invoice.
The ITC entitlement subject to such conditions and restrictions as may be prescribed.
IGST
SGST CGST 55
The order of utilization of credit of
IGST, CGST and SGST
A 1.
1. B 1. SGST
C
IGST CGST
ITC_
2. ITC_
IGST ITC_
CGST CGST
SGST
2. 2.
3. IGST IGST
SGST
56
Location of Place of
Supplier Supply Supply
Intra
Interstate supplies
state supplies
State A State B
Location of
Supplier
Place of
Supply
Including supplies to/by SEZ, Import or
Export /High sea supply of goods 57
Location of supplier of goods
“supplier” in relation to any goods and/or services shall mean the person supplying the said
goods and/or services and shall include an agent acting as such on behalf of such supplier in
relation to the goods and/or services supplied;
(a) a place from where the business is ordinarily carried on, and includes
(b) a warehouse, a godown or any other place where a taxable person stores his goods,
provides or receives goods and/or services; or
(c) a place where a taxable person maintains his books of account; or
(d) a place where a taxable person is engaged in business through an agent, by whatever name
called.
22. (1) Every supplier shall be liable to be registered under this Act in the State or Union
territory, other than special category States, from where he makes a taxable supply of goods
or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:
Fixed establishment ;
sufficient degree of permanence and suitable structure in terms of human and
technical resources
Admission to a
event or
Organization Transportatio
amusement park of event. n of goods.
64
Immovable property related services
69
Time of Supply of Goods
Earlier of
the
following
Earliest of
the
following
Earliest of
the
following
The date on
60 days from the
which payment
date of invoice
made
Otherwise , the time of supply shall be the date of
entry in the books of account of the recipient of supply
TAX INVOICE,
CREDIT AND DEBIT NOTES
79
Tax invoice for supply of goods
81
Consolidated Tax invoice in certain cases
subject to the following conditions:-
87
Amount of tax to be indicated in
tax invoice and other documents.
95
VALUATION
(a) any taxes, duties, cesses, fees and charges levied under any law for the
time being in force other than this Act, the State Goods and Services Tax
Act, the Union Territory Goods and Services Tax Act and the Goods and
Services Tax (Compensation to States) Act, if charged separately by the
supplier;
(b) any amount that the supplier is liable to pay in relation to such supply
but which has been incurred by the recipient of the supply and not
included in the price actually paid or payable for the goods or services or
both;
Rule 1. Value of supply of goods or services where the consideration is not wholly in
money.
Rule 2. Value of supply of goods or services or both between distinct or related persons,
other than through an agent .
Rule 5. Residual method for determination of value of supply of goods or services or both.
103
Rule 8. Rate of exchange of currency, other than Indian rupees, for determination of value
Rule 1 where the consideration is not wholly in money
(b) “supply of goods or services or both of like kind and quality” means
any other supply of goods or services or both made under similar
circumstances that, in respect of the characteristics, quality, quantity,
functional components, materials, and reputation of the goods or
services or both first mentioned, is the same as, or closely or
substantially resembles, that supply of goods or services or both
107
Rule 4 : Value of supply of goods or services or both
based on cost
However, Supplier of service may opt for this rule bypassing the rule 4 (i.e. 108
Cost +
Rule 6 (1) Determination of value in respect of certain
supplies –
• in case the RBI reference rate not available, the value shall be 1%
of the gross amount of Indian Rupees
(i) one per cent. of the gross amount of currency exchanged for an
amount up to one lakh rupees, subject to a minimum amount of
two hundred and fifty rupees;
(ii) one thousand rupees and half of a per cent. of the gross amount of
currency exchanged for an amount exceeding one lakh rupees and up
to ten lakh rupees; and
(iii) five thousand rupees and one tenth of a per cent. of the gross
amount of currency exchanged for an amount exceeding ten lakh
rupees, subject to maximum amount of sixty thousand rupees 111
2. Air travel agent
SP minus CP
114
5. Redeemable Vouchers
• The value of a token, or a voucher, or a coupon,
or a stamp (other than postage stamp)
without consideration
Explanation . - For the purposes of this rule, “pure agent” means a person who -
(a) enters into a contractual agreement with the recipient of supply to act as
his pure agent to incur expenditure or costs in the course of supply of goods
or services or both;
(b) neither intends to hold nor holds any title to the goods or services or both so
procured or provided as pure agent of the recipient of supply;
(c) does not use for his own interest such goods or services so procured; and
(d) receives only the actual amount incurred to procure such goods or services.117
------Pure agent
(i) the supplier acts as a pure agent of the recipient of the supply, when he makes
payment to the third party for the services procured as the contract for supply
made by third party is between third party and the recipient of supply;
(ii) the recipient of supply uses the services so procured by the supplier service
provider in his capacity as pure agent of the recipient of supply;
(iii) the recipient of supply is liable to make payment to the third party;
(iv) the recipient of supply authorises the supplier to make payment on his behalf;
(v) the recipient of supply knows that the services for which payment has been
made by the supplier shall be provided by the third party;
(vi) the payment made by the supplier on behalf of the recipient of supply has been
separately indicated in the invoice issued by the supplier to the recipient of
service;
(vii) the supplier recovers from the recipient of supply only such amount as has
been paid by him to the third party; and
(viii) the services procured by the supplier from the third party as a pure agent of the
recipient of supply are in addition to the supply he provides on his own account.
118
Rule 8: Rate of exchange of currency, other than Indian
rupees, for determination of value
122
Registrations and Threshold Limits under various Laws at
Present*
• Total active taxpayers as on January, 2016 under different Acts.
Taxes Number of Tax Threshold Limit
Payers
• Variation in the formats and processes for registration under various Acts and the Centre and the
States.
• Single entity needs multiple registrations under various Acts. 123
Overview of Registration---
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
Self –serviced Amendments except for certain core
fields 125
--Overview of Registration
State C
ode PAN Entity
Code
Blank
Check
Digit
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
https://www.gst.gov.in/,
Phase I : 60.5 lakh out of 84 lakh enrolled.
After this, the taxpayer would be able to login and fill the
enrolment form - information can be entered and details/
images can be uploaded to fill up the provisional registration 129
S.No Document File Max Size
. Format
1. Proof of Constitution of Business PDF or 1 MB
•In case of Partnership firm: Partnership JPEG
Deed of Partnership Firm (PDF and JPEG
format in maximum size of 1 MB)
•In case of Others: Registration Certificate
of the Business Entity
1 3 8
• B2B B2C inter/intra
Taxable • Export – with/ without tax
Supply
• Exempt Supply
Non • Non GST Supply
Taxable
Supply
Significance :
Reconcile
File GSTR-2 By 15th July 7days
145
PAYMENT OF TAX
Chapter IX
156
Advantages of refund system in GST
Audit :
(i) Statutory Audit for prescribed turnover (ii) Departmental Audit (Iii)
Special Audit
161
Dual Control & Cross-empowerment
• Each assessee would be assessed only by one authority.
• Taxpayers to be shared between assessment machinery
Goods sent
SALES PRICE
on approval
RETURN REVISION,
basis
164
CHAPTER XX
TRANSITIONAL PROVISIONS
OLD PROCEDURE
JOB WORK ETC
PROCEEDIGNGS
EXISTING LAW
166
INPUT TAX CREDIT Carry forward of c/b credit
Refund claim filed after the AD for any duty or tax paid
under existing law in respect of the goods or services
exported before or after the appointed day,
JOB WORK
SEMI
INPUT FINISHED
FINISHED
Manufacturer
Manufacturer may may transfer the
transfer the goods to goods on
premises of a RP payment of tax or
export
173
Migration of existing tax Payer
• Any person registered under any of the
existing law and
• having PAN
• Provisional registration .
175
CGST SGST
LEDGER LEDGER
CX duty VAT
Service Entry
tax tax
Compounding dealers under Section 10 not eligible
177
Carry forward of CENVAT/VAT
CENVAT credit /VAT carried forward in the last return can be
taken as Credit in electronic credit ledger.
178
File GST TRAN-1 within sixty days of appointed day.
Additional Condition for SGST
VAT c/f credit relating to CST cases
Provided further that so much of the said credit as is
attributable to
any claim related to Sections 3, 5(3), 6, 6A or 8(8) of the CST,
Act,
which is not substantiated in the manner, and within the
period, prescribed in rule 12 of the Central Sales Tax
(Registration and Turnover) Rules, 1957
shall not be eligible to be credited to the electronic credit
ledger:
The same shall be refunded under the existing law when the said
claims are substantiated 179
Sections of the CST Act
Statutory Particulars of the transaction
Provisions
Conditions :
if it is allowed in the existing law as well under this Act.
(i) the additional duty of excise leviable under section 3 of the Additional Duties
of Excise (Goods of Special Importance) Act, 1957;
(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs
Tariff Act, 1975;
(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs
Tariff Act, 1975;
(iv) the additional duty of excise leviable under section 3 of the Additional
Duties of Excise (Textile and Textile Articles) Act, 1978;
(v) the duty of excise specified in the First Schedule to the Central Excise Tariff
Act, 1985;
(vi) the duty of excise specified in the Second Schedule to the Central Excise
Tariff Act, 1985; and
(vii) the National Calamity Contingent Duty leviable under section 136 of the
Finance Act, 2001;
in respect of inputs held in stock and inputs contained in semi-finished or finished
goods held in stock on the appointed day. 187
Not in possession of documents
evidencing payment of VAT /CX duty.
There is a Scheme for RP for six tax period
Not available to manufacturer or supplier of service
furnish a statement
ISD can also distribute such credit 190
tax at fixed rate or paying fixed amount in lieu
of tax payable under the existing law
Earlier under Composition Scheme
RP is entitled to the credit on his input stock, semi
finished and finished stock on the appointed date .
subject to the following conditions;
1) Such Input stock used for taxable supply under this Act.
2) RP is not covered under section 10 of this Act.
3) RP is eligible for ITC under this Act.
4) RP is in possession of such Invoice or other duty
payment documents.
5) Such Invoices are not more than twelve months old on
appointed day 191
Centralised Registration
can take credit of the amount of CENVAT carry
forward in return furnished under the existing
law .
Can be reclaimed
• no tax shall be payable if such goods are received within six months .
• Period extendable by two months by Commissioner.
• Otherwise the ITC shall be recovered .
• No tax shall be payable in above cases , if such goods are declared by
manufacturer and job worker as prescribed.
RECOVERY REFUND
IF REVISED IN TIME
RECOVERED AS
IN CASH
ARREARS OF TAX 200
E-WAY BILL
201
Section 68 :Inspection of goods in movement.
SUPPLIER RECIPIENT
204
Period of validity
• 1 day to 15 days - 100KM to 1000 KM
Information by transporter on
GST INS – 04 common portal of any detention of
- conveyance exceeding 30 minutes 209
GSTN
210
GST Network (GSTN)
Incorporated on 28.03.2013 as Section 25 private limited company with authorized equity
of Rs. 10 crore .
GSTN would provide three front end services, namely registration, payment and return to
taxpayers.
It will also assist some States with the development of back end modules.
GSTN has already appointed M/s Infosys as Managed Service Provider at a total project
cost of around Rs 1380 crores for a period of five years.
211
60 per cent of the software development has been completed;.
WAY FORWARD….
Constitution (101st ) Amendment Act,2016.
Thank you…….
[email protected]
8989743422
215