| GST - A QUICK PREVIEW By the time this Journal reaches your hand, Goods and Services Tax would have seen the light of the day in our country. July 1, 2017 is going to be etched in the annals of the fiscal history of our country as the month of the genesis of GS'I, the most pathbreaking and radical tax reform in the Indian economy. You being the future Chartered Accountants have the onerous responsibility to keep yourself abreast with such a tectonic shift in the fiscal space. We, at Board of Studies, always endeavour to facilitate our students in remaining updated and au courant with the economic developments. With the dream of GST finally becoming a reality in July, 2017, it has been decided to come out with a crisp and concise capsule on GST in the July edition of the Student Journal. ‘The broad legal framework of GST law as on22"June, 2017 has been presented by way of flowcharts diagrams etc. to facilitate easy understanding ofthe same. Provisions relating to key concepts of GST ike supply, composition levy, time and value of supply, place of supply, input tax credit, registration, sessment, audit, inspection search and seizure, penalty and transitional provisions have been summarised in the subsequent pages. Supply ¥ pO onsdenion Fersons hong cnsttionl posto Incsions chasis Compost upp ; TerEpeoee — (qcse seo TEGRREERT fowestrenerey 1 re 7 el | Service A (principal : Reames | SS Ege = a <—|vshrmcen | ee ee >| Sec 2 (Supplemenn|| Eanes aS oF ; Taco pete yA fey seve rie || Taps pede saat || meni erBncns acres || | RE z Any chaipeson, member or der in ‘ody established by CGISCiocl authority tho i nok ected as an emigloree beste “Commencement ofthis ene Schedale 1 Permanent tana upon of tsi els Sarees of Fane ay romatara BP ‘Mixed Supply Sippy bewaen ad pa norssry dine persons (enonpeea] Any INDIVIDUAL Good ar sence Geof end balding where na] || Gil by employer io employee Eonsidration received belore ‘susnce of cone (One or more than eiceding Rs. 50000 completion series LY ire iNiviua | Goods or service Sopaly of gpodsby prncpaltongene | [Acinable cams other tan Toten seagene to prin Seting te gasblng Taper of senicesby able person - fom rened peson or any of hs | | Tansclons underaken by CGISGToa Suasishment” ousice, Tria, in| | aulbenty in whieh they ate engaged as hure rfurhesance business | | peblic authoritiesGST - A QUICK PREVIEW || [Rasen] Conditions 7 ‘Non eligibility Te soy ein Reese eee Tore [Buying flowing the gen oder open markt value o: 90% of price change Fueling rte ~ REI reference tate a that ‘open market vale _ Spiced ind aye for time) x total nits of currency. If no. REL 2 taal of consideration in ew feference rate, value ~ 1% of INR received! ‘money + amount equal tothe provided. Ifthe currencies exchanged sre not Consideration tN MONEY RULE 4:Value of supply based on cost In INR, value = 1 of lesser of two amounts + valuecfsuppliesoftikeking RULE #:Value of supply b thst would have been received by converting and quality any of two currencies into INR at RBI + Consideriion in money RULE 5: Residual method for eerence rate, OR specified for efferent mmeneyvalucofconedciton determination vale of ppty slabs ofthe gross currency exchanged. spertaled or Sint order Value sal Se deltioed sig reasonable Booking of kets yal rave agent: sue Meats content wate: pecs and,” Dooying teat byl evel agent ae -RULE2: Where supply is ieneral provisions of section 15 &valsaion and YOM wf the base ne be international Detweendistinctorreated Tales Tor services rule 9 can be adopted fon rs SEs + Wife insurance business: Value = gross Naive shallbe ether ofthe Maite chaget tonsa poley bilder peels eee Ce es reduced by amount allocated for investment open market la OR specfed of st and {value of supplies of ike kind care he pc pe oe ae aa oats inoue asa pure agent subsequent yeas . SEES perl or inh St eecipen sal be exetded om vale of Buying’ selling of second hand goods: order supply ‘Vale © Selig price ~ Buying price (ignore values =v. + Couponivoucher: Value = money value of RULE 8 + Rate of exchange of currency, other than Indian rupees, for ‘supplies redeemable against sich voucher? determination of value coupon, [i shl be applicable reference rate fo that currency as determined by the RBLon «Notified supplies under Entry 2 of {he dte whch point of axaion artes in respect of such supply. Schedule I: Vase = NiGST - A QUICK PREVIEW || Specific situations las whare he svend isactualy held or where the ps oe sch ther place soca sire Teeation ) 3 Pace of =| “immovable property located outade nia Interne based services serves (pre pid Beem) (Bent crs (postpdseres) mea) wide | ld ina) (i iting adres of therein Whewibe) — (Tactonat cnt thereat 1 provided tv provided by any pesos sidetctder yee | | ‘tal sieber en ‘ofsappys aeress of Toeaten waere such ‘Sach sling agent paymentisreceved Adres ofthe ‘ecplest asp records ofthe ‘xppler| GST - A QUICK PREVIEW Place of Supply of Services oeaten casper frec and cpus vrvcs ond lla Admins services to eat previdedin || Specie || arses sparing. Telalont || Services || “educational or ‘Goods snletainmest ‘ime events — aE sf Goode entoarda || immovable neni, other than | Passenger Conveyance || Property, hotel formation cry || aga | Saate | mec | |, Sian ‘or Courier ‘Services Aircraft, inn guest house | | database access or a ee peated ona Y ligbiity Location of Supplier of Services ‘Where the asenger ‘enbaria onthe conveyance fer continuous jouer consiting thing af meant Aranapest Input Tax Credit 1 1 1 Location of Recipient of Goods sent for Job Work Seppe cael a tharanrs ol ba Possession of nviceequialent document Payment not made within 180 days rom ate of nue aflavoice,eavaliment when payment made ven inpua/eapial goods sen iectly tojeb worker ‘Caimed depreciation of ax component 1 | ipa nck cared [Deemed Supply “hx charged acl pad to government Credit restricted to Faonished etn ale ‘Aber de dae of funishing etn als 39 forthe month o September allowing re end (fT ta whlch invleel debi note petalns or arava toes Which exter Thalgbs suplin a per section 176) ‘No edit afer the expiry of yer fom ate ct aoe ef invice in ease Gt new fegistation or person ceases to pay {0 or exempe supply becomes table back within year ~ Tapia Goode not received back stn yeas Input Service Distsibutor Pro at daaibtion ofa ‘By wey of sue of document Transfer of ereait > | (°coSscnanon ‘On the base oftunover ina satiUT 1-7 | Person apts pay taxale 0 Tnward supplies | [ Inpuctax tied for Business | | atlbutable epee opposed ft ther purposes | | se prposes of busines Special circumstances Tward supplies | [ Input tax ted foe bute to Exempted out | | teable repels seppies Including ero ‘Table ouput | | rate supplies Revers of eed supa [Supaly of Copal [gods or Panton ehh FTC wae kenGST - A QUICK PREVIEW || % ret | $< aD Application for cation for iisanene eatin for Skesiaon ‘Persons liable for registration Applicaton for Revocation of Cancellation ality Applicaton for feghetration mT,| GST - A QUICK PREVIEW ‘ina Retum Sec 45) Every Registered person who applies for ‘cancelation of retin shal fersh ral eum within = SmentasofDate of Canceiation = Dateof cancelation Oder Wihichevers ter Pason_lable_to pay_tax_under ‘ompositon Levy Quarterly Retun (wathin 1th oftheGST - A QUICK PREVIEW || oe oe ae ne feyrasend reson amie (Inout fe) rtumanct aps fe peson shal fo determine erly ceurey—frnshedeven fo the. bet of Fimiel asses alue of supply Fert, the aersevceot_ Ne agent farlabity and rimecl tac” Proper Ofer “nsccew/sa6 may. sue an firth tar, tw earning Trssment order { fen and seek within pad Serlaaton| oF yeaa om ane the ate species or onsen tinder secon a4 jonexecution i lanation Proper officer for furnishing of citend ons yee men ope otic Reanmusctm request made. adequate, no liability of tax 1 firerscion | winie'a pated oes yeas Face 1 vara Time 6 ments no auequate, —_sPeited we 44 from ‘date off, Sate forfurishing of Communteon — Sgpegmatlon trun fonder corrective Baewion: | fimecucs mons by Jont Commiste! + 4 yeas by PoperActonuis Commoner” See 65466773 y NO V str paid, exces pi pay wth refund with Interest “ule interest ws so sata) =| GST - A QUICK PREVIEW apa + 2 * Se, ease pices «Nise ones fee) (ediancestecwonyet wes om enna weinien er | Sled fazoreposedovocams ‘aliecton, furnishing of false records or information, etc, teasonto believe are in contravention {Fordetasreerdote 1) Fad otter ‘ued to give endenceprodace & | or rte orto cttardue + Failte isuminwsice or accountforin 710000. or an amount cordance with provsion, ‘equivalent to tax evadeditox Sar edu coterctnel 1 Paid 0 the. government ate, pusel or ater = inesutbrisudaent rnd ee ee [rm [emootcastioot nae conminon stators } Syed \yaranine ESTES a On *Conken Pier tind a5 nwt re Mine 1 Supplies made without invoice/ false invoice! invoices or bills issued without any invoice/ transports taxable goods without ‘document cover Collects tax bu also pay within 3 months. Fails to deduct any tax or collect tax/ deeuct or collect lesser amount of ta/ fled to pay the same, Takes or utilizes ITC takes or dstributesITCin contravention of the act. ‘obtains refund fraudulently, Falsifis or substitutes financial records! produces fake accounts! furnishes false information with an intention to evade tax/ suppresses the turnover inorder to evade tax 7. Fails to obtain registration’ furnishes false particulars with regard to registration) issues invoices using registration number of another person. 8 Obstructs or prevents officer incharge of its duties 9. Fallsto keep, maintain or retain books of accounts. 10 Falls to furnish information or documents! furishes false information during any proceedings. 11 Supplies, transports or stores goods which has a reason to believe ae lable for confiscation, 12 Tampers with or destroys any material evidence or document. Disposes off or tampers any goods that have been detained, seized orattached.GST - A QUICK PREVIEW || INSPECTION, SEARCH AND SEIZURE ‘emona ora eu ae = Pe wot re Bes mg | a ove 4 proper officer ects | Payment of applicable within 6 months of —_—_—Prepareinventoryofsuch taxinterest & penalty eure of goods ‘goodstsec 6719)| GST - A QUICK PREVIEW — |} [> _becuctionotT05, > No deduction TDS lable or deductionin existing aw {___,mportrsenices | > Ley oft ttt paidunder exiting