Name: Vanshika Amit Bheda

WRO: WRO719720

Center: Vasai

Batch No: 31

Batch date: 04/01/2022 - 23/01/2022

Batch time: 2.30 – 8.30

GOODS & SERVICES TAX

Reasons for selecting GST as project

→ Hailed as one of the biggest tax reforms of the country, the Goods and
Services Tax (GST) subsumes many indirect taxes that makes this topic very
pwide
→ The scope of GST is spread across all the networks
→ Still in the beginning stage as it is newly familiarized with the Indian
Economy, hence the rules and laws are unique and still developing
→ GST is very publicly paid by common people willingly or unwillingly by hook
or by crook
→ It is an important source of income for Indian government
→ GST as a subject is taught in detail, at intermediate level at first in the
Chartered Accountancy Course

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GOODS & SERVICES TAX

INTRODUCTION TO GST ......................................................................................................................................... 5

INDIRECT TAXES BEFORE GST ..........................................................................................................................................6
Short Comings in The Past Tax Regime ...............................................................................................................6
Cascading Effects of Earlier Tax Regime .............................................................................................................7
ABOUT GST ............................................................................................................................................................ 8
ORIGIN OF GST ............................................................................................................................................................8
ADVANTAGES OF GST ..................................................................................................................................................10
DISADVANTAGES OF GST..............................................................................................................................................14
INPUT TAX SERVICES ............................................................................................................................................ 16
CLOSING BALANCE OF CREDIT ON INPUTS: ........................................................................................................................16
CREDIT ON CAPITAL GOODS: .........................................................................................................................................16
CREDIT ON STOCK: ......................................................................................................................................................17
INVOICES ...................................................................................................................................................................17
REGISTERED PERSONS ..................................................................................................................................................18
ITC ON GOODS SENT BEFORE 1ST JULY ...........................................................................................................................19
REFUNDS AND ARREARS ...............................................................................................................................................19
COMPOSITION DEALER .................................................................................................................................................19
SUPPLY OF GST .................................................................................................................................................... 20
TIME OF SUPPLY: ........................................................................................................................................................20
Goods: ...............................................................................................................................................................20
Services: ............................................................................................................................................................20
Under Reverse Charge ......................................................................................................................................21
PLACE OF SUPPLY: .......................................................................................................................................................21
Goods ................................................................................................................................................................21
Services .............................................................................................................................................................22
VALUE OF SUPPLY OF GOODS OR SERVICES.......................................................................................................................22
TYPES OF TAXES UNDER GST ................................................................................................................................ 23
INTEGRATED GOODS AND SERVICES TAX OR IGST .............................................................................................................23
STATE GOODS AND SERVICES TAX OR SGST .....................................................................................................................24
CENTRAL GOODS AND SERVICES TAX OR CGST .................................................................................................................24
UNION TERRITORY GOODS AND SERVICES TAX OR UTGST ..................................................................................................24
INPUT CREDIT ...................................................................................................................................................... 25
FILING OF GST RETURN ........................................................................................................................................ 26
WHO SHOULD FILE GST RETURNS? ................................................................................................................................26
LATE FEES FOR NOT FILING RETURN ON TIME ...................................................................................................................26
GST AND THE GOVERNMENT ............................................................................................................................... 27
GST COUNCIL STRUCTURE ............................................................................................................................................27
GST SUVIDHA PROVIDER ..............................................................................................................................................28
GST COMMON PORTAL ...............................................................................................................................................28
GSTN - GOODS AND SERVICE TAX NETWORK ...................................................................................................................30
GST APP ...................................................................................................................................................................30
GST HELPLINE............................................................................................................................................................31

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GOODS & SERVICES TAX

E-WAY BILLS..............................................................................................................................................................31
E-INVOICING ..............................................................................................................................................................31
CONCLUSION: ...................................................................................................................................................... 32
BIBLIOGRAPHY ..................................................................................................................................................... 33

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GOODS & SERVICES TAX

Introduction To GST

•GST i.e. The Goods and Services Tax passed by parliament on 29 March 2017 and
came into effect on 1 July 2017.

•Goods and service tax (GST) is a comprehensive tax levy on manufacture, sale
and consumption of goods and service at a national level.
•Gst is a tax on goods and services with value addition at each stage.
•Goods and Services Tax will include many state and central level indirect taxes. It
overcomes drawback present tax system
•Earlier the Indirect Tax regime was Excise duty, custom duty, Service Tax, Octroi
Tax, VAT.
•And the method Of Taxation was Progressive Tax that is Increasing rate of tax for
Increasing Value or Volume and Regressive Tax which means Decreasing rate tax.

5
GOODS & SERVICES TAX

Indirect Taxes Before GST

Short Comings in The Past Tax Regime
In the earlier indirect tax regime, a manufacturer of excisable goods charged
excise duty and value added tax (VAT) on intra-State sale of goods. However, the
VAT dealer on his subsequent intra-State sale of goods charged VAT (as per
prevalent VAT rate as applicable in the respective State) on value comprising of
(basic value + excise duty charged by manufacturer + profit by dealer). Further, in
respect of tax on services, service tax was payable on all ‘services’ other than the
Negative list.

1) The earlier indirect tax

framework in India suffered from various shortcomings. Under the earlier
indirect tax structure, the various indirect taxes being levied were not
necessarily mutually exclusive.
2) To illustrate, when the goods were manufactured and sold, both central excise
duty (CENVAT) and State-Level VAT were levied. Though CENVAT and State-
Level VAT were essentially value added taxes, set off of one against the credit
of another was not possible as CENVAT was a central levy and State-Level VAT
was a State levy.
3) Moreover, CENVAT was applicable only at manufacturing level and not at
distribution levels. The erstwhile sales tax regime in India was a combination of
origin based (Central Sales Tax) and destination based multipoint system of
taxation (State-Level VAT). Service tax was also a value added tax and credit

6
GOODS & SERVICES TAX

across the service tax and the central excise duty was integrated at the central
level.
4) Despite the introduction of the principle of taxation of value added in India –
at the Central level in the form of CENVAT and at the State level in the form of
State VAT – its application remained piecemeal and fragmented on account of
the following reasons:
a) Non-inclusion of several local levies in State VAT such as luxury tax,
entertainment tax, etc.
b) Non-integration of VAT & service tax.
c) Cascading of taxes on account of (i) levy of Non-VAT able CST and (ii)
inclusion of CENVAT in the value for.
d) Double taxation of a transaction both as goods & services.
e) No CENVAT after manufacturing stage.

Cascading Effects of Earlier Tax Regime

Cascading effect is when there is a tax on tax levied on a product at every step of
the sale. The tax is levied on a value that includes tax paid by the previous buyer,
thus, making the end consumer pay “tax on already paid tax”.
Let’s take an example:
Under VAT regime: The consultant would have charged 15% service tax on
services of Rs. 70,000. So, his output tax was Rs. 70,000 x 15% = Rs.10,500. Then,
if he purchased office supplies for Rs. 25,000 paying 5% as VAT which would
amount to Rs. 25,000 x 5% = Rs. 1,250. He had to pay Rs. 10,500 output service
tax without getting any deduction of Rs. 1,250 VAT already paid on stationery. His
total tax outflow is Rs. 11,750.

5) Under GST: GST on service of Rs. 70,000 @18% = Rs. 12,600. Now, subtract
GST on office supplies (Rs. 25,000 x 5%) = Rs. 1,250. Therefore, the net GST
liability to pay is Rs. 11,350

7
GOODS & SERVICES TAX

6) It can also be shown in the form of diagram.

SUPPLIER • NO TAX PAID AT THIS

STAGE

MANUFACTURER • 5% SALES TAX ON PRODUCT

• 6% SERVICE TAX ON
RETAILER PRODUCT (INCLUSIVE
OF 5% SALES TAX)

CONSUMER
TAX ON RETAILER
TAX ON MANUFACTURE

About GST
Origin of GST
The idea of moving towards GST was first mooted by the then Union Finance
Minister in his Budget speech for 2006-07. Initially, it was proposed that GST would
be introduced from 1st April 2010.The Empowered Committee of State Finance
Ministers (EC) which had formulated the design of State VAT was requested to
come up with a roadmap and structure for GST. Joint Working Groups of officials
having representatives of the States as well as the Centre were set up to examine
various aspects of GST and draw up reports specifically on exemptions and

8
GOODS & SERVICES TAX

thresholds, taxation of services and taxation of inter-State supplies. Based on

discussions within and between it and the Central Government, the EC released its
First Discussion Paper (FDP) on the GST in November, 2009. This spelt out features
of the proposed GST and has formed the basis for discussion between the Centre
and the States so far.
The introduction of the Goods
and Services Tax (GST) is a very
significant step in the field of
indirect tax reforms in India. By
amalgamating a large number
of Central and State taxes into a
single tax, GST will mitigate ill
effects of cascading or double
taxation in a major way and
pave the way for a common
national market. From the
consumers point of view, the
biggest advantage would be in
terms of reduction in the
overall tax burden on goods, which is currently estimated to be around 25%-
30%. It would also imply that the actual burden of indirect taxes on goods and
services would be much more transparent to the consumer. Introduction of
GST would also make Indian products competitive in the domestic and
international markets owing to the full neutralization of input taxes across the
value chain of production and distribution. Studies show that this would have
a boosting impact on economic growth. Last but not the least, this tax,
because of its transparent and self-policing character, would be easier to
administer. It would also encourage a shift from the informal to formal
economy. The government proposes to introduce GST with effect from 1st July
2017. (gst.gov.in, 2017)

9
GOODS & SERVICES TAX

Advantages of GST
•GST eliminates the cascading effect of tax
GST is a comprehensive
indirect tax that was
designed to bring indirect
taxation under one
umbrella. More
importantly, it is going to
eliminate the cascading
effect of tax that was
evident earlier.
Cascading tax effect can
be best described as ‘Tax on Tax’. Let us take this example to understand what is
Tax on Tax:
Before GST regime
A consultant offering services for say, Rs 50,000 and charged a service tax of 15%
(Rs 50,000 * 15% = Rs 7,500).
Then say, he would buy office supplies for Rs. 20,000 paying 5% as VAT
(Rs 20,000 *5% = Rs 1,000).
He had to pay Rs 7,500 output service tax without getting any deduction of Rs 1,000
VAT already paid on stationery.
His total outflow is Rs 8,500.

GST on service of Rs 50,000 @18% 9,000

Less: GST on office supplies (Rs 20,000*5%) 1,000

Net GST to pay 8,000

•Higher threshold for registration

Earlier, in the VAT structure, any business with a turnover of more than Rs 5 lakh
(in most states) was liable to pay VAT. Please note that this limit differed state-
10
GOODS & SERVICES TAX

wise. Also, service tax was exempted for service providers with a turnover of
less than Rs 10 lakh.
Under GST regime, however, this threshold has been increased to Rs 20 lakh,
which exempts many small traders and service providers.
Let us look at this table below:
Tax Threshold Limits

Excise 1.5 crores

VAT 5 lakhs in most states

Service Tax 10 lakhs

GST 20 lakhs (10 lakhs for NE states)

•Composition scheme for small businesses

Under GST, small businesses (with a turnover of Rs 20 to 75 lakh) can benefit as it
gives an option to lower taxes by utilizing the Composition scheme. This move has
brought down the tax and compliance burden on many small businesses.
•Simple and easy online procedure
The entire process of GST (from registration to filing returns) is made online, and
it is super simple. This has been beneficial for start-ups especially, as they do not
have to run from pillar to post to get different registrations such as VAT, excise,
and service tax.
•The number of compliances is lesser
Earlier, there was VAT and service tax, each of which had its own returns and
compliances. Below table shows the same

11
GOODS & SERVICES TAX

Tax Return Filing

Excise Monthly

Service Tax Proprietorship / Partnership – Quarterly

Company / LLP – Monthly

VAT * Different for different states *

Some states require monthly returns over a threshold limit.
Some states like Karnataka require a Monthly return.
Under GST, however, there is just one, unified return to be filed. Therefore, the
number of returns to be filed has come down. There are about 11 returns under
GST, out of which 4 are basic returns that apply to all taxable persons under GST.
The main GSTR-1 is manually populated and GSTR-2 and GSTR-3 will be auto-
populated.
•Defined treatment for E-commerce operators
Earlier to the GST regime, supplying goods through the e-commerce sector was
not defined. It had variable VAT laws. Let us look at this example:
•Online websites (like Flipkart and Amazon) delivering to Uttar Pradesh had to file
a VAT declaration and mention the registration number of the delivery truck. Tax
authorities could sometimes seize goods if the documents were not produced.
Again, these e-commerce brands were treated as facilitators or mediators by
states like Kerala, Rajasthan, and West Bengal which did not require them to
register for VAT.
All these differential treatments and confusing compliances have been removed
under GST. For the first time, GST has clearly mapped out the provisions
applicable to the e-commerce sector and since these are applicable all over India,
there should be no complication regarding the inter-state movement of goods
anymore.

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GOODS & SERVICES TAX

•Improved efficiency of logistics

Earlier, the logistics industry in India had to maintain multiple warehouses across
states to avoid the current CST and state entry taxes on inter-state movement.
These warehouses were forced to operate below their capacity, giving room for
increased operating costs.
Under GST, however, these restrictions on inter-state movement of goods have
been lessened.
As an outcome of GST, warehouse operators and e-commerce aggregators players
have shown interest in setting up their warehouses at strategic locations such as
Nagpur (which is the zero-mile city of India), instead of every other city on their
delivery route.
•Reduction in unnecessary logistics costs is already increasing profits for
businesses involved in the supply of goods through transportation.
•Unorganized sector is regulated under GST
In the pre-GST era, it was often seen that certain industries in India like
construction and textile were largely unregulated and unorganized.
Under GST, however, there are provisions for online compliances and payments,
and for availing of input credit only when the supplier has accepted the amount.
This has brought in accountability and regulation to these industries.
Let us now look at the disadvantages of GST. Please note that businesses need to
overcome these disadvantages to run the business smoothly.

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GOODS & SERVICES TAX

Disadvantages of GST
•Increased costs due to software purchase
Businesses have to either update
their existing accounting or ERP
software to GST-compliant one or
buy GST software so that they
can keep their business going.
But both the options lead to the
increased cost of software
purchase and training of
employees for efficient utilization
of the new billing software.
is the first company in India to
have launched a ready-to-use GST software called GST software. The software is
currently available for free for SMEs, helping them transition to GST smoothly. It
has truly eased the pain of the people in so many ways.
•Not being GST-compliant can attract penalties
Small and medium-sized enterprises (SME) may still not be able to grasp the
nuances of the GST tax regime. They will have to issue GST-complaint invoices, be
compliant with digital record-keeping, and of course, file timely returns. This
means that the GST-complaint invoice issued must have mandatory details such
as GSTIN, place of supply, HSN codes, and others.
It has made it easier for SMEs with the Bill Book web application. This application
is available for FREE until the end of September and is an easy solution to this
problem. This will help every business to issue GST-compliant invoices to its
customers. These same invoices can then be used for return filing through the
GST platform.
•GST will mean an increase in operational costs
As we have already established that GST is changing the way how tax is paid,
businesses will now have to employ tax professionals to be GST-complaint. This
will gradually increase costs for small businesses as they will have to bear the
additional cost of hiring experts.

14
GOODS & SERVICES TAX

Also, businesses will need to train their employees in GST compliance, further
increasing their overhead expenses.
•GST came into effect in the middle of the financial year
As GST was implemented on the 1st of July 2017, businesses followed the old tax
structure for the first 3 months (April, May, and June), and GST for the rest of the
financial year.
Businesses may find it hard to get adjusted to the new tax regime, and some of
them are running these tax systems parallelly, resulting in confusion and
compliance issues.
•Adapting to a complete online taxation system
Unlike earlier, businesses are now switching from pen and paper invoicing and
filing to online return filing and making payments. This might be tough for some
smaller businesses to adapt to. Cloud - based GST billing software like the GST
Billing Software is definitely an answer to this problem.
The process for return filing on GST is very simple. Business owners need to only
upload their invoices, and the software will populate the return forms
automatically with the information from the invoices. Any errors in invoices will
be clearly identified by the software in real-time, thus increasing efficiency and
timeliness.
••SMEs will have a higher tax burden
Smaller businesses, especially in the manufacturing sector will face difficulties
under GST. Earlier, only businesses whose turnover exceeded Rs 1.5 crore had to
pay excise duty. But now any business whose turnover exceeds Rs 20 lakh will
have to pay GST.
However, SMEs with a turnover up to Rs 75 lakh can opt for the composition
scheme and pay only 1% tax on turnover in lieu of GST and enjoy lesser
compliances. The catch though is these businesses will then not be able to claim
any input tax credit. The decision to choose between higher taxes or the
composition scheme (and thereby no ITC) will be a tough one for many SMEs.
(cleartax, 2021)

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GOODS & SERVICES TAX

Input Tax Services

Provisions have been made for the smooth transition of Input Tax Credit available
under VAT, Excise Duty or Service Tax to GST. A registered dealer opting
for composition scheme will not be eligible to carry forward ITC available in the
previous regime.
Here are some of the cases where ITC transition provisions will be applicable:
Closing balance of credit on Inputs:
The closing balance of ITC as per the last return filed before GST can be taken as
credit in the GST regime.
The credit will be available only if the returns for the last 6-months i.e., from
January 2017 to June 2017 were filed in the previous regime (i.e., VAT, Excise and
Service Tax returns had been filed).
Form TRAN 1 has to be filed by 27th December 2017 to carry forward the Input
Tax Credit. Also, TRAN 1 can be rectified only once.
Credit on Capital Goods:
Before GST, only a part of input tax paid on Capital Goods could be taken as
credit.

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GOODS & SERVICES TAX

• For example, if ITC on a Capital Good purchased in the year 2016-17 is Rs

10,000,
50% i.e., Rs 5,000 can be claimed as ITC in the same year and balance Rs 5000 can
be claimed in the next year.
In such cases, there could be some amount of un-utilized credit available on the
capital goods. This credit can be carried forwarded to GST by entering the details
in Form TRAN 1.
Credit on Stock:
A manufacturer or a service provider who has goods lying in the closing stock on
which duty has been paid can also take the credit for the same. The dealer has
to declare the stock of such goods on the GST Portal.
The dealer should have the invoices for claiming this credit. Also, the invoices
should be less than 1 year old.
Invoices
If there are no invoices, Manufacturers or service providers who do not have an
invoice evidencing payment of duty, cannot claim the credit under the GST
regime. Only traders can claim credit in case invoice is unavailable, subject to the
following conditions:
• The stock should be identified separately
• The credit can be taken by the trader only if the benefit of the same is
passed on to the final consumer
How will credit be taken in case of no invoice?
Manufacturers or service providers who do not have an invoice evidencing
payment of duty, cannot claim the credit under the GST regime. Only traders can
claim credit in case invoice is unavailable, subject to the following conditions:
• The stock should be identified separately
• The credit can be taken by the trader only if the benefit of the same is
passed on to the final consumer

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GOODS & SERVICES TAX

Registered persons
Registered Person who was not registered under previous law. Every person who
is:
A registered dealer and was unregistered under previous law
Who was engaged in the manufacture of exempted goods or provision of
exempted services?
Who was providing works contract service and was availing abatement?
A first stage dealer or a second stage dealer.
A registered importer can also enjoy ITC of inputs in stock held on 1st July. The
following conditions must be fulfilled –
Inputs or goods are used for making taxable supplies
Such benefit is passed on by way of reduced prices to the recipient
Taxable person is eligible for input tax credit on such inputs
The person is in possession of invoices evidencing payment of duty under
the earlier the law
The invoices are not older than 12 months
If services are not eligible for any abatement under GST.

Rate of GST on Goods Intra-state Credit to CGST Inter-state Credit to IGST

18 % or more 60% 30%

Less than 18% 40% 20%

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GOODS & SERVICES TAX

ITC on Goods Sent Before 1st July

Input tax credit can be claimed by the manufacturer/dealer for those goods
received after the appointed day, the tax on which has already been paid
under previous law. Above credits would only be allowed if the invoice/tax
paying document is recorded in the accounts of such person within 1st August
2017. A thirty-day extension may be granted by the competent authority on
grounds of sufficient cause for delay.
Refunds and Arrears
Any claims/appeals pending for the refund on the due amount of CENVAT
credit, tax or interest paid before 1st July shall be disposed of according to the
previous laws.
Any amount found to be payable under previous law will be treated as arrears
of GST and be recovered according to GST provisions

Composition Dealer
When a registered dealer who was paying tax under composition
scheme previously but is a normal taxpayer under GST can claim credit of
inputs available as on 1st July by satisfying certain conditions. The Input is used
for taxable supply, Registered Person is eligible for ITC under GST, Invoice or
other duty payment documents are available, such invoices are not more than
twelve months old (ICAI, 2020)

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GOODS & SERVICES TAX

Supply Of GST
Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal.
If a person undertakes either of these transactions during the course or
furtherance of business for consideration, it will be covered under the meaning of
Supply under GST.

Time of Supply:
Goods:
Time of supply of goods is
earliest of:
1. Date of issue of
invoice
2. Last date on which
invoice should have
been issued
3. Date of receipt of advance/ payment

Services:
Time of supply of services is earliest of:
1. Date of issue of invoice
2. Date of receipt of advance/ payment.
3. Date of provision of services (if invoice is not issued within prescribed
period)

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GOODS & SERVICES TAX

Under Reverse Charge

In case of reverse charge, the time of supply for service receiver is earliest of:
1. Date of payment1
2. 30 days from date of issue of invoice for goods (60 days for services)
Place of Supply:

Goods
Usually, in case of goods, the place of supply is where the goods are delivered. So,
the place of supply of goods is the place where the ownership of goods changes.
What if there is no movement of goods? In this case, the place of supply is the
location of goods at the time of delivery to the recipient.
For example: In case of sales in a supermarket, the place of supply is the
supermarket itself. Place of supply in cases where goods that are assembled and
installed will be the location where the installation is done.

w.e.f. 15.11.2017 ‘Date of Payment’ is not applicable for goods and applies only to
services. Notification No. 66/2017 – Central Tax

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GOODS & SERVICES TAX

Services
Generally, the place of supply of services is the location of the service recipient.
In cases where the services are provided to an unregistered dealer and their
location is not available the location of service provider will be the place of
provision of service. Special provisions have been made for some services.

Value of Supply of Goods or Services

Value of supply means the money that a seller would want to collect the goods
and services supplied. The amount collected by the seller from the buyer is
the value of supply. But where parties are related and a reasonable value may not
be charged, or transaction may take place as a barter or exchange; the GST law
prescribes that the value on which GST is charged must be its ‘transactional
value’. This is the value at which unrelated parties would transact in the normal
course of business. It makes sure GST is charged and collected properly, even
though the full value may not have been paid.

Value of Supply2 = (Monetary Consideration + In-kind Consideration)

- GST on Total Consideration

2
The value of supply includes cess, billable expenses, subsidies, penalties, and all
taxes except GST (and any other charges that may or may not be included in the
price of the goods and services supplied).

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GOODS & SERVICES TAX

Types of taxes under GST

GST
Intra state
Supply
Inter State
supply
SGST
CGST
IGST
UTGST
Where IGST = INTEGRATED Goods and Services Tax
CGST = Central Goods and Services Tax
SGST = State Goods and Services Tax
UTGST = Union Territory Goods and Services Tax

Integrated Goods and Services Tax or IGST

The Integrated Goods and Services Tax or IGST is a tax under the GST regime that
is applied on the interstate (between 2 states) supply of goods and/or services as
well as on imports and exports. The IGST is governed by the IGST Act. Under IGST,
the body responsible for collecting the taxes is the Central Government. After the
collection of taxes, it is further divided among the respective states by the Central
Government

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GOODS & SERVICES TAX

State Goods and Services Tax or SGST

The State Goods and Services Tax or SGST is a tax under the GST regime that is
applicable on intrastate (within the same state) transactions. In the case of an
intrastate supply of goods and/or services, both State GST and Central GST are
levied. However, the State GST or SGST is levied by the state on the goods and/or
services that are purchased or sold within the state. It is governed by the SGST
Act. The revenue earned through SGST is solely claimed by the respective state
government.

Central Goods and Services Tax or CGST

Just like State GST, the Central Goods and Services Tax of CGST is a tax under the
GST regime that is applicable on intrastate (within the same state) transactions.
The CGST is governed by the CGST Act. The revenue earned from CGST is collected
by the Central Government.

Union Territory Goods and Services Tax or UTGST

The Union Territory Goods and Services Tax or UTGST is the counterpart of State
Goods and Services Tax (SGST) which is levied on supply of goods and/or services
in Andaman and Nicobar Islands, Chandigarh, Daman Diu, Dadra, and Nagar
Haveli, and Lakshadweep. The UTGST is governed by the UTGST Act. The revenue
earned from UTGST is collected by the Union Territory government. The UTGST is
a replacement for the SGST in Union Territories. Thus, the UTGST will be levied in
addition to the CGST in Union Territories (bankbazaar.com, 2019)

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 GOODS & SERVICES TAX

Input credit
Input credit means at the time of paying tax on output, you can reduce the tax
you have already paid on inputs. Say, you are a manufacturer – tax payable on
output (FINAL PRODUCT) is Rs 450 tax paid on input (PURCHASES) is Rs 300. You
can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes.

• Take itc from IGST,

TO PAY IGST SGST AND CGST

• Take itc from CGST,

TO PAY CGST IGST only

• Take itc from SGST,

TO PAY SGST IGST only

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GOODS & SERVICES TAX

Filing of GST Return

A GST return is a document containing details of all income/sales and/or
expense/purchase which a taxpayer (every GSTIN) is required to file with the tax
administrative authorities. This is used by tax authorities to calculate net tax
liability.
Under GST, a registered dealer has to file GST returns that broadly include:
Purchases
Sales
Output GST (On sales)
Input tax credit (GST paid on purchases)

Who should file GST Returns?

In the GST regime, any regular business having more than Rs.5 crore as annual
aggregate turnover has to file two monthly returns and one annual return. This
amounts to 26 returns in a year.
The number of GSTR filings vary for quarterly GSTR-1 filers under QRMP scheme.
The number of GSTR filings online for them is 9 in a year, including the GSTR-3B
and annual return. There are separate returns required to be filed by special cases
such as composition dealers whose number of GSTR filings is 5 in a year.
Individual taxpayers will be using 4 forms for filing their GST returns such as the
return for supplies, return for purchases, monthly returns, and annual return.
Small taxpayers who have opted for a composition scheme will have to file
quarterly returns. All filing of returns will be done online.

Late Fees for not Filing Return on Time

If GST Returns are not filed within time, you will be liable to pay interest and a
late fee. Interest is 18% per annum. It has to be calculated by the taxpayer on the
amount of outstanding tax to be paid. The time period will be from the next day
of filing to the date of payment. Late fees is Rs. 100 per day per Act.

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So, it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day. Maximum is
Rs. 5,000. There is no late fee on IGST. However, currently, a reduced late fee of
Rs 50 per day of delay (Rs 20 for NIL return) is applicable for those who file GSTR-
1 and GSTR-3B. There are prescribed formats for each of the above of the returns.
The forms may seem complex and difficult to understand.

GST and The Government

GST Council structure

As per Article 279A of the

amended Constitution, the
GST Council is a joint forum of
the Centre and the States, and
consists of the following
members: -

Union Finance Minister Chairperson

The Union Minister of State, in-charge of Revenue, Min. of Member
Finance
The Minister In-charge of Finance or Taxation or any other Members
Minister nominated by each State Government

The mechanism of GST Council would ensure harmonization on different aspects

of GST between the Centre and the States as well as amongst the States. It has
been provided in the Constitution (One Hundred and First Amendment) Act, 2016
that the GST Council, in discharge of various functions, shall be guided by the
need for a harmonized structure of GST and for the development of a harmonized
national market for goods and services.
The Constitution (One Hundred and First Amendment) Act, 2016 provides that
every decision of the GST Council shall be taken at its meeting by a majority of not

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less than 3/4th of the weighted votes of the Members present and voting. The
vote of the Central Government shall have a weightage of 1/3rd of the votes cast
and the votes of all the State Governments taken together shall have a weightage
of 2/3rd of the total votes cast in that meeting. One half of the total number of
members of the GST Council shall constitute the quorum at its meeting.
GST Suvidha Provider
GST Suvidha Provider (GSP) is considered as an enabler or authorized
intermediary for businesses to access GST portal services. It helps comply with the
provisions of GST law through their GST Software applications and APIs

GST Common Portal

The Portal has been designed for lodging complaints by taxpayers and other
stakeholders. They can lodge Complaint here indicating issues or problems faced
by them while working on GST portal instead of sending emails to the Helpdesk. It
has been designed in a manner that the user can explain issues faced and upload
screenshots of pages where they faced the problem, for quick redressal of
grievances This portal has the following advantages.

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this portal has the following advantages:

Enable the user to lodge his complaint and raise tickets himself.

To provide all required information and reducing to and fro communication

between helpdesk and the tax payers, helping to reach a faster resolution.

Enable the tax payer to check the progress of resolution of his complaint by using
the ticket number (acknowledgement number generated after a complaint is
lodged).

Check the resolution comments in case the complaint/ticket is closed.

Based on selection of category/subject and sub-category, portal provides relevant

FAQ/pages of User manual to help the user resolve the problem faced by him.

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GST Certificate
A GST Certificate is an official document that is issued by the concerned
authorities for a business that has been enrolled under the GST system. Any
business with an annual turnover of Rs.20 lakh or more and certain special
businesses are required to be registered under this system. The GST registration
certificate is issued in Form GST REG-06. If you are a registered taxpayer under
this system, you can download the GST Certificate from the official GST Portal.
The certificate is not issued physically. It is available in digital format only. GST
Certificate contains GSTIN, Legal Name, Trade Name, Constitution of Business,
Address, Date of liability, Period of Validity, Types of Registration, Particulars of
Approving Authority, Signature, Details of the Approving GST officer, and Date of
issue of a certificate.
GSTN - Goods and Service Tax Network
The GSTN is the Goods and Services Tax Network which is responsible for
managing the IT system concerning the GST Portal. It is a non-profit, non-
government organization and is the database for the official GST Portal.
The main functions of the GST Network or GSTN can be summed up as follows:
• It is responsible for handling the invoices
• It is responsible for handling the registrations
• It is responsible for handling the payments and refunds (if any)
• It is responsible for handling different types of returns.
GST App
There are a handful of GST applications which have been designed to run on
smartphones. Out of all the apps, there is a Government-issued application as
well which is called the CBEC GST. It can be downloaded from the Google Play
Store for your Android smartphone. In addition to that, there are a host of third-
party applications as well. The main aim of these applications is to help taxpayers
familiarize themselves with the idea of GST and in turn, ensure that they smoothly
transit to the new taxation system.

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GST Helpline
Taxpayers who have any confusions or doubts in regard to their GST filing can get
in touch with the concerned authority through the GST Helpline. Earlier, taxpayers
could get in touch through the helpdesk email ID – helpdesk@gst.gov.in.
However, it should be noted that this email ID has been discontinued

E-Way Bills
GST introduced a centralized system of waybills by the introduction of “E-way
bills”. This system was launched on 1st April 2018 for inter-state movement of
goods and on 15th April 2018 for intra-state movement of goods in a staggered
manner. Under the e-way bill system, manufacturers, traders and transporters
can generate e-way bills for the goods transported from the place of its origin to
its destination on a common portal with ease. Tax authorities are also benefited
as this system has reduced time at check -posts and helps reduce tax evasion.
E-invoicing
The e-invoicing system was made applicable from 1st October 2020 for businesses
with an annual aggregate turnover of more than Rs.500 crore in any preceding

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financial years (from 2017-18). Further, from 1st January 2021, this system was
extended to those with an annual aggregate turnover of more than Rs.100 crore.
These businesses must obtain a unique invoice reference number for every
business-to-business invoice by uploading on the GSTN’s invoice registration
portal. The portal verifies the correctness and genuineness of the invoice.
Thereafter, it authorizes using the digital signature along with a QR code.

Conclusion:
The Government has introduced a GST system to smoothen tax
processes and bring businesses into the formal economy. Being GST-compliant,
businesses can experience the merits of having a unified tax system and easy
input credits. Stakeholders welcome GST implementation as a new change as it
helps boost the economy. Even though GST serves as a historical tax reform in
India, there are several downsides that make this tax challenging to implement. It
is a destination-based tax on consumption of goods and services. It is proposed to
be levied at all stages right from manufacture up to final consumption with credit
of taxes paid at previous stages available as set off. In a nutshell, only value
addition will be taxed and burden of tax is to be borne by the final consumer.
Introduction of GST is a very significant step in the field of indirect tax
reforms in India. By amalgamating a large number of Central and State taxes into
a single tax and allowing set-off of prior-stage taxes, it would mitigate the ill
effects of cascading and pave the way for a common national market. For the
consumers, the biggest gain would be in terms of a reduction in the overall tax
burden on goods, which is currently estimated at 25%-30%. Introduction of GST
would also make our products competitive in the domestic and international
markets. Studies show that this would instantly spur economic growth. There may
also be revenue gain for the Centre and the States due to widening of the tax
base, increase in trade volumes and improved 10 11 tax compliance. Last but not
the least, this tax, because of its transparent character, would be easier to
administer.

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Bibliography

bankbazaar.com. (2019, jan 1). bank bazaar. Retrieved from bank bazaar:
https://www.bankbazaar.com/tax/gst.html
cleartax. (2021, april 1). cleartax. Retrieved from https://cleartax.in/:
https://cleartax.in/
gst.gov.in. (2017, july 1). gst.gov.ingst.gov.in. Retrieved from gst.gov.in:
https://selfservice.gstsystem.in/
ICAI. (2020). INDIRECT TAXES SECTION 4 - B. Mumbai: ICAI.

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