Understanding Goods and Services Tax

Brief on earstwhile Constitutional

Provisions of Indirect Taxes
Following were the Major Central Indirect Taxes & State
Taxes:-

a) Central Excise Act, 1944:- Entry No. 84, of Union List of

7th Schedule
b) Customs Act, 1962:- Entry No. 83 “Duties of Customs
including export duties.”
c) Service Tax through Finance Act, 1994:- Entry “92C-
taxes on services” and Article 268A
d) VAT : through Entry No.54 of state list

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 Constitutional Amendments for GST
The following articles of Constitution are essential to understand
the genesis of GST
1. Article 246A
2. Parliament has exclusive power: Inter-State trade
or commerce.
3. Article 279A: Goods and Services Tax Council.
– 101st Amendment Act of Constitution
– different dates may be appointed for different
provisions of this Act.

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 Constitutional Amendments for GST( Contd…)

Amendment of 7th Schedule

1. In List I-Union List-
– In entry 84 only remains: petroleum crude; high speed diesel; motor spirit
(commonly known as petrol); natural gas; aviation turbine fuel; and tobacco
and tobacco products.
– entries 92 and 92C shall be omitted; These pertain to Central Sales Tax and
Service Tax
2. In List II-State List-
– entry 52 shall be omitted; [Octroi or entry Tax]
– for entry 54 only remains: Taxes on the sale of petroleum crude, high speed
diesel, motor spirit natural gas, aviation turbine fuel and alcoholic liquor for
human consumption,
– entry 55 shall be omitted; Taxes on Advertisement etc.
– for entry 62, the following entry shall be substituted, namely Taxes on
entertainments and amusements to the extent levied and collected by a
Panchayat or a Municipality or a Regional Council or a District Council.“.
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 Taxes Subsumed under GST
Taxes or levies which have been subsumed are in the nature of Indirect Taxes
and are part of the transaction chain.

Central Taxes State Taxes

1. Central Excise duty
(CENVAT)
2. Service Tax
3. Additional Excise Duties
4. Excise duty (Medicinal &
Toiletries Preparation
Act)
5. Additional duties of
Customs
-Countervailing Duty (CVD)
-Special Additional Duty (SAD)
 Central Surcharges & Cess
1. State VAT /Sales Tax
2. Central Sales Tax
3. Purchase Tax
4. Entertainment Tax (not
levied by local bodies)
5. Luxury Tax
6. Entry Tax (All forms)
7. Taxes on lottery, betting
& gambling
 State Surcharges & Cess
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 Dual GST
It Means Centre and States simultaneously levying it on a common tax base.

1. Central Tax (CGST) : The CGST is levied by the Centre on

intra-State supply of goods, or services or both.
2. State Tax (SGST) : is levied by the States
3. Union Territory Tax – UTGST- is levied by Union territories
without legislature i.e Andaman & Necobar Island, Laksahdweep,
Dadar & Nagar haveli, Daman & Diu & Chandigarah
4. Integrated Tax (IGST) is levied and administered by Centre
IGST- (CGST + SGST) applicable to:-
 Inter-State supplies of goods / services in India
 Inter-state stock transfers of goods
 Import of goods / services (in addition to Basic Customs
duties (BCD))
 Supply to or by a SEZ developer or an SEZ unit
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 International GST/VAT
• 160 Country, VAT in France(1954)
• VAT structures are either overly centralized where
tax is levied and administered by the Central
government (Germany, Switzerland, Austria),
• or dual GST structure wherein both Centre and
States administer tax independently (Canada)
• or with some co-ordination between the national
and sub-national entities (Brazil, Russia).

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 GST Rates
• While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to
popular uproar against it),
• Hungary has one of the highest rate of 27%.
• Australia levies GST at the rate of 10%
• whereas Canada has multiple rate slabs.
• The average rate of VAT across the EU is around 19.5%.
• Indian Tax Rates: Owing to unique Indian socio-economic milieu, four rates namely
5%, 12%, 18% and 28% have been adopted. Besides, some goods and services are
exempt also. Rate for precious metals: fixed at 3%. In addition, un worked diamonds,
preciouss tones, etc. attracts a rate of 0.25%.
• A cess over the peak rate of 28% on certain specified luxury and demerit goods, like
tobacco and tobacco products, pan masala, aerated water, motor vehicles is imposed to
compensate States for any revenue loss on account of implementation of GST.
• Dr. Arvind Subramanian on possible tax rates under GST suggested RNR (Revenue
Neutral Rate).

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 Guiding Principles of GST Acts

• Objective:
oClarity,
oEasy to administer,
oNon-adversarial and tax-payer friendly ,
oFair dispute resolution mechanism,
oImproving Ease of Doing Business
• SOURCE MATERIAL :Central Excise, Customs ,
Service Tax Law, State VAT Laws ,WTO Law, etc.

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 GST OVERVIEW
• Taxable Event: Supply (Taxable/Non-taxable/Exempted/Inter-Intrastate/composite/Mixed/RCM)
• Taxable Person, PPoB
• Registration : GSTIN Threshold (104 Million =64.42 Migrated+ 39.56 New)
– Aggregate Turnover, PAN Based
• Composition Levy/ Scheme (1.5 Cr)
• Tax Invoice/debit and Credit Note/Supplementary : By Registered Person & its Component
• Input Tax Credit (ITC)
• Electronic Ledger At GSTN
• Payment
• Returns (Filers/Non-filers/mismatch)
• Refunds (IGST/ITC)
• Assessment, HSN
• Job Work
• TCS
• TDS (TAN based)
• Transitional Provisions(Tran-1/2)
• E-way Bill (20 Cr generated). Supplier/Receiver/Transporter
• GSTN
• Adjudication/Advance Ruling/Appeal/Audit
• Antievasion/Arrest
• GST Compliance Rating?
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 GST OVERVIEW
• GST on Exports : Zero Rated and
– Refund (IGST and RFD 01A)
• Supply under Bond or LUT without payment of integrated tax and claim
refund of unutilised ITC; or
• Supply on payment of integrated tax and claim refund of such tax paid on
goods or services or both supplied
– Supplies of taxable goods by a registered supplier to
registered recipient for export. Total effective rate of tax =
Total 0.1%
– Deemed Exports
• Supply of goods by a registered person against Advance Authorisation (AA)
• Supply of capital goods by a registered person against Export Promotion
Capital Goods Authorisation (EPCG) Supply of goods by a registered person to
Export Oriented Unit (EOU)

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 Few Decisions
• The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under
sub-section (4) of section 5 of the IGST Act, 2017 has been suspended till 30.09.2019.
• Registration and operationalization of TDS/TCS provisions has been postponed till 30.09.2018
• E-Wallet Scheme shall be introduced for exporters from 01.10.2018
• All taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis.
• Taxpayers with turnover upto Rs. 1.5 Cr are required to file information in FORM GSTR-1 on a
quarterly basis. Other taxpayers would have to file FORM GSTR-1 on a monthly basis.
• Late fee for delayed filing of return in FORM GSTR-3B for the months of July, 2017 to September,
2017 has been waived. The amount of late fee already paid but subsequently waived off shall be re-
credited to the Electronic Cash Ledger of registered person under “Tax” head instead of “Fee” head.
• Migration window was opened once more time till 31.08.2018.
• Composition dealers to be allowed to supply services (other than restaurant services), for upto a
value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is
higher.
• The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal
Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.

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National Anti-profiteering Authority (NAPA)

• Constituted under GST by the Central

Government to examine the complaints of
non-passing the benefit of reduced tax
incidence.
• The Authority shall cease to exist after the
expiry of two years from the date on which
the Chairman enters upon his office unless the
Council recommends otherwise.

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 Return Filing During the year 2017-18
Till due date Cumulative
Required to
Return Period
file Returns % Returns %

July '17 6647581 3834877 57.69% 6388549 96.10%

Aug '17 7370102 2725183 36.98% 6851732 92.97%
Sep '17 7823806 3934256 50.29% 7109143 90.87%
Oct '17 7721075 4368711 56.58% 6777440 87.78%
Nov '17 7957204 4913065 61.74% 6765603 85.02%
Dec '17 8122425 5426278 66.81% 6747887 83.08%
Jan '18 8322611 5394018 64.81% 6694387 80.44%
Feb '18 8527127 5451004 63.93% 6562362 76.96%
Mar '18 8715163 5458728 62.63% 5630683 64.61%
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 Monthly collection figures of GST

Month GST Collection (Figures in Rs. Crore)

August 2017 93,590

September 93,029

October 95,132

November 85,931

December 83,716

January 88,929

February 88,047

March 89,264

Total 7,17,638

Avg. 89,885

April 2018 103459

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May 94016
 PERIODICITY OF RETURN FILING
Form Description last Date of Filling

GSTR-1 Outward Supplies 10th of next month (1st to 10th)

GSTR-2 Inward Supplies 15th of next month (11th to 15th)
GSTR-3 Monthly Return 20th of next month (18th to 20th)
GSTR-4 Composition Taxpayer 18th of the month next Q
GSTR-5 Non Resident Taxpayer Last date of Registration
GSTR-6 Return for ISD 13th of next month
GSTR-7 Return for TDS 10th of next month
GSTR-8 Return for TCS(for e-commerce 10th of next month
operator)
GSTR-9 Annual Return 31st December of Next FY
GSTR-10 Final Return Within 3 Months from date of
Cancellation(at the closure of
business)
CA Kirti Joshi Harish Khandelwal &
Company 9753974737
Benefits of GST (1/2)

1 Reduction in Cascading of Taxes

Decrease in
2 Overall Reduction in Prices Inflation

3 Common National Market

Ease of Doing
4 Benefits to Small Taxpayers Business

5 Self-Regulating Tax System

Decrease in “Black”
Non-Intrusive Electronic Tax System Transactions
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Benefits of GST (2/2)

7 Simplified Tax Regime

More informed
8 Reduction in Multiplicity of Taxes consumer

9 Consumption Based Tax

Poorer States
10 Abolition of CST to Gain

11 Exports to be Zero Rated

Make in India
12 Protection of Domestic Industry – IGST

13.
13 A unified common national market to boost Foreign Investment
 Help Desk: GST, GSTN, GST Council,
ICEGATE
• GSTN (For Registration, Return filing)
– Grievance Redressal Portal for GST : https://selfservice.gstsystem.in/
– Tele. No. 0124-4688999
– Twitter: @askGSTech for GSTN System related query
• GST Council Secretariat
– Email: contact.gstcouncil@gov.in
– Tele. No. 011-23762656
• ACES-GST help desk (CBEC) (for departmental Officers and Taxpayers)
– Email:cbecmitra.helpdesk@icegate.gov.in
– Toll free no. 18001200232
– Twitter: @askGST_GoI for GST related query
• ICEGATE portal issues faced by importers/exporters
– ICEGATE 1800-3010-1000 icegatehelpdesk@icegate.gov.in

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Search GST Rates and HSN codes on
GST Rate Finder App

HSN codes are also available at URL:- goo.gl/CBnu5t

or
https://cbec-gst.gov.in/gst-goods-services-rates.html
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 Don’t Pay more than MRP
• MRP is the HIGHEST price at which the product can be sold
in India. This includes the cost of production, transportation,
middlemen profit and also all applicable taxes.

• The Toll-Free number of Consumer Forum is

– 1800-11-4000. Timing: All Days Except National Holidays (09:30
AM To 05:30 PM).
• You can send SMS to 8130009809. They will get back to
you.
• complaint online and also can track your complaint.
Consumer Helpline portal http://www.consumerhelpline.go
v.in/index.php

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THANK YOU

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