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OVERVIEW OF GST

Presented By
CA. KEVIN SHAH
PRESENT SCHEME OF TAXATION

Present Tax
Structure
(5 Imp elements)

Entry
Excise Duty Customs Duty Service Tax Sales Tax/VAT Tax/Entertainment
Tax

Entry 84, List I, Entry 83, List I, Residuary Entry Entry 54, List II Entry 52 & 62 of
Schedule VII Schedule VII 97, List I, Schedule (VAT) and 92A of List II, Schedule VII
VII list I (CST)

Taxable Event is Taxable Event is Taxable Event is Taxable Event is Taxable Event is
manufacture Import/Export provision of service sale entertainment &
entry of goods
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29 May 2017
WHAT IS GST?
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GST is one tax for one nation.


Every entry point and exit point is taxable.
Entire ecosystem is divided into goods & services and
tax [GST] is applicable at all stages.
The difference between old and new is that under
new law tax paid at all levels till it reaches
consumers is compensated.
Tax on tax situation is avoided.
Overall profitability of business increases and final
price reduces.
IMPACT OF GST
Sn5 Taxes Impact
1 Central Excise Duty (CENVAT) No excise is payable on manufacturing
2 Service Tax No service tax is payable on provision of service
3 Additional duties of Excise No excise duty is payable on manufacturing
4 Excise duty levied under Medicinal & No excise duty is payable for products
Toilet Preparation Act manufactured under the said act
5 Additional duties of customs No CVD & SAD payable at the time of imports
6 State VAT/Sales Tax (CST) No sales tax is payable on sale/purchase
transactions
7 -Entertainment Tax (not levied by the No tax is payable on entertainment events,
local bodies), Tax on advertisement advertisements etc.
8 Luxury Tax No tax is payable on provision of services at
3/4/5 star hotels
9 Entry Tax (All forms) No Octroi, entry tax payable on entry of goods
into municipal jurisdiction
10 Taxes on lottery, betting & Gambling No tax is payable on betting, gambling & lottery
tickets
OPERATION OF GST
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BENEFIT UNDER GST
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Particulars Current Regime GST Regime


Manufacturing Cost 1000 1000
Excise @ 12% 120 90
VAT @ 12.5% 125 90
Dealer Invoice 1245 1180
Dealer Cost 1120 1000
Margin 112 100
Sale price for Dealer 1232 1100
VAT @ 12.5% 154 180
Sale Price 1386 1280
GST REGISTRATION
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29 May 2017
STRUCTURE OF REGISTRATION NUMBER
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Broad analysis of Persons liable for
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registration [Sec 22, 23 & 24]
Person supplying
goods/services of > Rs.
10 lakhs in special
category states

Person supplying
goods/services of > Rs.
20 lakhs in other than
special category states
Registration

Persons not liable for


registration

Compulsory
registration
Broad analysis of Persons liable for
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registration [Sec 22, 23 & 24]
Every supplier shall be registered in the state or Union
territory from where he makes a taxable supply of
goods or services or both if turnover in,
Special category states > Rs. 10,00,000/-
Other states> Rs. 20,00,000/-

Section 2(105) of the CGST Act, 2017 defines supplier


as under:
supplier in relation to any goods or services or both,
shall mean the person supplying the said goods or
services or both and shall include an agent acting as such
on behalf of such supplier in relation to the goods or
services or both supplied
Special Category States
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Special category states: The expression special category


states shall mean the states as specified in Article 279(4)(g)
of the Constitution of India which is as under:
States of Arunachal Pradesh,
Assam
Jammu & Kashmir
Manipur
Mizoram
Nagaland
Sikkim
Tripura
Himachal Pradesh
Uttarakhand
Persons not liable for registration
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[Sec 23]
Person not liable for registration:
Any person engaged exclusively in the business of supplying
goods or services or both that are not liable to tax or wholly
exempt from tax under this Act or under the IGST Act.

An agriculturist, to the extent of supply of produce out of


cultivation of land

Illustration: Mr. B [Mumbai] procures cashew from Mr. A[Goa] for


distribution at a larger scale. Mr. A produces cashew from the cashew
seeds imported from Ghana. Further, Mr. B[Mumbai] procures cashew
from Mr. C[Goa] who procures cashew seeds by cultivating in his own
land and thereafter which he process the same and sell the same to
Mr.B
Compulsory Registration [Sec 24]
S.N
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Category of Person
1 Persons making any inter-State taxable supply
2 Casual taxable persons making taxable supply
3 Persons who are required to pay tax under reverse charge
4 Person who are required to pay tax on supplies received from unregistered supplier
5 Non-resident taxable persons making taxable supply
6 Persons who are required to deduct tax
7 Persons who make taxable supply of goods or services or both on behalf of other taxable
persons whether as an agent or otherwise
8 Input Service Distributor
9 Persons who supply goods or services or both through such electronic commerce operator
who is required to collect tax at source.
10 Every electronic commerce operator
11 Every person supplying online information and database access or retrieval services from a
place outside India to a person in India, other than a registered person
12 Such other person or class of persons as may be notified.
Temporary Registration
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Concept of temporary registrations to casual person and


NRIs has been introduced

Accordingly, the registration shall be valid for the period


specified in the registration certificate or 90 days,
whichever is earlier.

The same can be extended to a further period of 90


days.

Advance deposit of tax has to be made against


estimated liability.
PAYMENT OF TAX
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PAYMENT OF TAX
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PAYMENT OF TAX:
Electronic Credit Ledger [Input Tax Credit]
Electronic Cash Ledger [Cash payment]

Only tax can be paid vide utilisation of Input Tax


Credit

Interest, tax, penalty, fees or any other amount


payable under GST can be paid by utilising
electronic cash ledger
29 May 2017
Input Tax Credit
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Transaction

CGST SGST IGST CGST/SGST/IGST


paid under RCM

Credit Available

Input Tax
Credit
[2(63)]
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RATES UNDER GST
RATES DAIRY, BEAUTY & PERSONAL
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CARE
Particulars Pre GST Post GST
Fresh Milk 0 0

Fresh vegetables, roots & tubers 0 0

Fresh Fruits 0 0

Fruits and vegetables 12 12

Manicure, pedicure sets 26 28

Beauty or makeup preparations 26 28


Skin care 26 28

Shampoos, hair dyes 26 28


RATES CONSTRUCTION
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Particulars Pre GST Post GST


Cement 30 28
Wallpaper 18.5 28
Paints and varnishes 26 28
Putty, wall fillings 26 28
Plaster 26 28
Ceramic Tiles 26 28
Tempered glass 26 28
Sand lime bricks, fly 6 5
ash bricks
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GST Returns for input credit And matching of credit

Sr. Return/L Applicable for To be filed by section


No.
24 edger
a. GSTR-1 Outward supplies made by taxpayer 10th of the next Section
(other than compounding taxpayer month 25
and ISD)
b. GSTR- Inward supplies received by a Auto populated Rule 1(2)
taxpayer (other than a compounding After 10th of the
2A
taxpayer and ISD) next month
c. GSTR-2 Inward supplies received by a 15th of the next Section
taxpayer (other than a compounding month 26
taxpayer and ISD)
d. GSTR-3 Monthly return (other than 20th of the next Section
compounding taxpayer and ISD) month 27
f. ITC-1 ITC mismatch report Communicated by Rule
dept. after matching 12(2)
of credit.
Cycle of Filing GST Returns
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Supplier
files outward Due date is 10th May
supply details Acknowledgment copy is
received under FORM
FORM GSTR-1A
GSTR-1

Recipient Files Due date is 15th May


inward supply Acknowledgment copy is
details FORM received under FORM
GSTR-2 GSTR-2A

Registered person
files inward & Due date is 20th
May
outward supply, No acknowledgment
input tax credit, copy is received
cash payment
Matching Concept
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Recipient Return Supplier Return


Outward supply furnished by the
supplier
IGST paid in respect of imported
goods
Details furnished in the Duplication of claims of input
Inward Supply Return credit
Matching Concept
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On account of any mismatch, the discrepancy shall be


communicated to both such persons in such manner as may
be prescribed.

Types of mismatch:
Amount mismatch
Rate mismatch
Timing mismatch
Description mismatch
Transaction mismatch
Others

In case of duplication of claims, the same shall be


communicated to the recipient in the prescribed manner
Matching Concept
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If the supplier does not rectify in his return then the


same shall be added to the output tax liability along
with interest of the recipient in his return.

Duplication errors would be communicated within the


same month in which such duplication errors are
discovered.

Illustration: GSTR-2 for July 17 filed in the month of


August 17 & discrepancy for July 17 occurred in the
month of August 17. If the same is not rectified by the
supplier while filing returns in the month of September
17 then output liability would be added with interest in
the month of September 17.
Matching Concept
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If the supplier does rectify within the stipulated time of


revision of return then the same shall be reduced from the
output tax liability along with interest from the return of the
recipient.

Duplication errors would be communicated within the same


month in which such duplication errors are discovered.

Illustration: GSTR-2 for July 17 filed in the month of August


17 & discrepancy for July 17 occurred in the month of
August 17. If the same is not rectified by the supplier while
filing returns in the month of September 17 then output
liability would be added with interest in the month of
September 17.
THANK YOU
Balanced view presented by
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CA. KEVIN SHAH


Kevin Shah & Co.
S-24, 2nd Floor, Sej Plaza,
Near Nutan School, Marve Road,
Malad (West), Mumbai 400 064

Kevin Shah (ACA, B.com)


(M) : +91 9664 29 4346
Email : cashahkevin@gmail.com