GST Requirements impacting tax rules:

1. GST is based on Supply of Goods or Services.

2. GST will be Destination based tax.
3. Local Transactions will attract Dual GST (CGST + SGST) With the
Centre and the States
4. Inter-state Transactions will attract Integrated GST (IGST) would be
levied on Inter-state supply (including stock transfers and sales)
5. Import Transactions will attract IGST would be treated as Inter-state
supplies.
6. The tax rules default the tax rates on different transactions such as
P2P transactions and O2C transactions.
Tax Credits to be utilized and conditions as below:

1.

Input CGST to be utilized against output CGST and IGST - Possession of tax invoice,

1.

One year from the invoice date

Input SGST to be utilized against output SGST and IGST - Receipt of the goods/
service, Credit pertaining to a financial year cannot be claimed after filing the return
(for September) of the next financial year or the filing of the annual return for the year

2.

to which the credit pertains whichever Is earlier.

Input IGST to be utilized against output IGST, CGST and SGST in the order of IGST,
CGST and SGST - Payment of tax charged on the invoice by supplier

GST Law proposes following reports:

1.
2.
3.
4.
5.
6.
7.

GST Outward supplies - Monthly

GST Inward supplies received - Monthly
GST Monthly return - Monthly
GST Quarterly return for compounding Taxpayer - Quarterly
GST Return for Input Service Distributor (ISD) - Monthly
GST Return for Tax Deducted at Source - Monthly
GST Annual Return Annual

GST Example:

Qty

Price

Total
PO

CGST

SGST

Total
Input

1800

8.333333
333

Total
CGST
SGST

5%
7%

IGST

12%

Tax Payable

Liable to Pay

750.00

1,050.00

Stock
Transfer
Outside
State
350
10

Sale
Outside
State
650
10

3,500.00

6,500.00

400.00
560.00

420.00

780.00

CGST
400.00

SGST
560.00

IGST
1,200.00

Sale
With
State
800
10
8,000.
00

Sales
Qty
Price

Less Input Tax

Credit

Amoun
t
15,000.
00

CGST
SGDT

400.00
560.00

350.00
490.00

Tax
1,800.0
0

Total
Output
Tax
1800
10
18,000.
00
400.00
560.00
1,200.0
0
2,160.0
0
Total
Payable
2,160.00

750.00
1,050.00
360.00