KCES’s Institute of Management and

Research, Jalgaon

Subject: A 4.2

indirect taxes in India

BBA - SEM IV

Chapter 2 : - Goods & Service Tax (GST)-

II

Complied By: Miss. Manasi Bhangale

M. N. Bhangale – IMR Institute

 Types of GST
As per the newly implemented tax system, there are 4 different types
of GST:
1. Integrated Goods and Services Tax (IGST)
2. State Goods and Services Tax (SGST)
3. Central Goods and Services Tax (CGST)
4. Union Territory Goods and Services Tax (UTGST)

Difference Between Different Types Of GST

Transactions
Authority which is Priority of Tax Who is it collected which are
Types of GST
benefitted Credit use by? applicable (Goods
and Services)

Within a single
Central Central
CGST CGST IGST state, i.e.
Government Government
intrastate

Within a single
State State
SGST SGST IGST state, i.e.
Government Government
intrastate

Between two
Central
different states or
Government and Central
IGST IGST CGST SGST a state and a
State Government
Union Territory,
Government
i.e. interstate

Within a single
Union Territory Union Territory
UTGST/UGST UTGST IGST Union Territory
(UT) Government (UT) Government
(UT)

M. N. Bhangale – IMR Institute

1. 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. For instance, if a trader from West
Bengal has sold goods to a customer in Karnataka worth Rs.5,000, then
IGST will be applicable as the transaction is an interstate transaction. If
the rate of GST charged on the goods is 18%, the trader will charge
Rs.5,900 for the goods. The IGST collected is Rs.900, which will be going
to the Central Government.

2. State Goods and Services Tax or SGST

The State Goods and Services Tax or SGST is a tax under the GST regime
which is applicable on intrastate (within the same state) transactions. In
case of 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. For instance,

M. N. Bhangale – IMR Institute

if a trader from West Bengal has sold goods to a customer in West
Bengal worth Rs.5,000, then the GST applicable on the transaction will
be partly CGST and partly SGST. If the rate of GST charged is 18%, it will
be divided equally in the form of 9% CGST and 9% SGST. The total
amount to be charged by the trader, in this case, will be Rs.5,900. Out
of the revenue earned from GST under the head of SGST, i.e. Rs.450,
will go to the West Bengal state government in the form of SGST.

3. 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 which 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.

As mentioned in the above instance, if a trader from West Bengal has

sold goods to a customer in West Bengal worth Rs.5,000, then the GST
applicable on the transaction will be partly CGST and partly SGST. If the
rate of GST charged is 18%, it will be divided equally in the form of 9%
CGST and 9% SGST. The total amount to be charged by the trader, in
this case, will be Rs.5,900. Out of the revenue earned from GST under
the head of CGST, i.e. Rs.450, will go to the Central Government in the
form of CGST.

M. N. Bhangale – IMR Institute

4. 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
the supply of goods and/or services in the Union Territories (UTs) of
India. The UTGST is applicable on the 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.

GST Council: Rights & Constitution of GST Council

GST council is a governing body to regulate and direct each and every
step for the implementation of goods and service tax in the nation with
decisions over tax rates and further implementation measures. GST
council assimilates suggestions and regulation into one form and
improvise the changes formally through notifications and circulars with
its departments and finance ministry.

M. N. Bhangale – IMR Institute

 GST Council Constitution

According to Article 279A, it is on the part of the president to give the

order to constitute the council of GST within the 60 days from the 12th
September 2016 which is already notified by the Government.

Following are the designated personnel, who will form the GST Council
together:-

 The Union Finance Minister who will be the chairman of the

council;
 The Union Minister of State in charge of Revenue or Finance who
will be the member of council;
 one member from each state who is minister in charge of finance
or taxation or any other minister and anyone of them will be vice
chairman of the GST council who will be mutually elected by
them.

 Note

 the secretary of revenue department will work as ex-officio

secretary to the GST council,

M. N. Bhangale – IMR Institute

  the chairperson of central board of excise and customs will be the
permanent invitee in all the proceedings of the GST council who
will not have the voting rights.

Functions of the GST Council

The GST council will be supposed to make the recommendation to the

Union and State on the following matters:-

 On subsuming of various taxes, cess, and surcharge in GST.

 Details of services and goods that will be subjected to GST or
which will be exempted from GST.
 On Threshold limit below which, services and goods will be
exempted from GST.
 On GST rates including floor rate with bands of GST and any
special rate for time being to arrange resources to face any
natural calamity.
 Making special provisions for the following states: Arunachal
Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and
Uttarakhand.
 On model law on GST, Principal of levy of GST and the principals
which will govern the place of Supply.

M. N. Bhangale – IMR Institute

 Registration under GST

GST Registration is a process by which a taxpayer gets himself

registered under GST. Once a business is successfully registered, a
unique registration number is assigned to them known as the Goods
and Services Tax Identification Number (GSTIN). This is a 15-digit
number assigned by the central government after the taxpayers obtain
registration.

Who Is Eligible to Register Under GST?

All the businesses supplying goods whose turnover exceeds Rs 40

lakh in a financial year are required to register as a normal taxable
person. However, the threshold limit is Rs 10 lakh if you have a business
in north-eastern states, J&K, Himachal Pradesh and Uttarakhand.
The turnover limit is Rs 20 lakh, and in case of special category States,
Rs 10 lakh, for the service providers.

Documents Required for GST registration

Take a look at the list of documents that you will need for registering
your business under GST:
 Permanent Account Number (PAN) of the applicant
 Copy of the Aadhaar card

M. N. Bhangale – IMR Institute

  Proof of business registration or incorporation certificate
 Identity and address proof of promoters/directors with a
photograph
 Bank account statement/cancelled cheque
 Authorization letter/board resolution for authorized signatory
 Digital signature

Procedure for GST Registration

The step-by-step procedure that individuals must follow to complete

GST Registration is mentioned below:

 Step - 1: Visit the GST portal - https://www.gst.gov.in

 Step - 2: Click on the ‘Register Now’ link which can be found
under the ‘Taxpayers’ tab
 Step - 3: Select ‘New Registration’.
 Step - 4: Fill the below-mentioned details:
 Under the ‘I am a’ drop-down menu, select ‘Taxpayer’.
 Select the respective state and district.
 Enter the name of the business.
 Enter the PAN of the business.
 Enter the email ID and mobile number in the respective
boxes. The entered email ID and mobile number must be
active as OTPs will be sent to them.
M. N. Bhangale – IMR Institute
  Enter the image that is shown on the screen and click on
‘Proceed’.
 Step - 5: On the next page, enter the OTP that was sent to the
email ID and mobile number in the respective boxes.
 Step - 6: Once the details have been entered, click on ‘Proceed’.
 Step - 7: You will be shown the Temporary Reference Number
(TRN) on the screen. Make a note of the TRN.
 Step - 8: Visit the GST portal again and click on ‘Register’ under
the ‘Taxpayers’ menu.
 Step - 9: Select ‘Temporary Reference Number (TRN)’.
 Step - 10: Enter the TRN and the captcha details.
 Step - 11: Click on ‘Proceed’.
 Step - 12: You will receive an OTP on your email ID and registered
mobile number. Enter the OTP on the next page and click on
‘Proceed’.
 Step - 13: The status of your application will be available on the
next page. On the right side, there will be an Edit icon, click on
it.
 Step - 14: There will be 10 sections on the next page. All the
relevant details must be filled, and the necessary documents
must be submitted. The list of documents that must be
uploaded are mentioned below:

M. N. Bhangale – IMR Institute

  Photographs
 Business address proof
 Bank details such as account number, bank name, bank
branch, and IFSC code.
 Authorization form
 The constitution of the taxpayer.
 Step - 15: Visit the ‘Verification’ page and check the declaration,
then submit the application by using one of the below
mentioned methods:
 By Electronic Verification Code (EVC). The code will be
sent to the registered mobile number.
 By e-Sign method. An OTP will be sent to the mobile
number linked to the Aadhaar card.
 In case companies are registering, the application must
be submitted by using the Digital Signature Certificate
(DSC).
 Step - 16: Once completed, a success message will be shown on
the screen. The Application Reference Number (ARN) will be
sent to the registered mobile number and email ID.
 Step - 17: You can check the status of the ARN on the GST portal.

M. N. Bhangale – IMR Institute

 GST Rate Structure

Slab Popular Goods Popular Services

Rates
5% Frozen vegetables, Newspaper printing,
Fertilizers, Spices, Takeaway Food, Restaurants
Plastic waste
12% Ghee, Nuts, Fruits, Temporary basis IP rights,
Pouches, purses and Building construction for
Handbags sale
18% Washing Machine, Outdoor Catering, IT
Camera, Shampoo services, Telecom services
28% Sunscreen, Cinema, Food/Drinks/Stay at
Motorcycles, Pan AC Five Star Hotels
Masala

M. N. Bhangale – IMR Institute