GST.

GST

Intra State Inter State

Central Integrated
State GST
GST GST
(SGST)
(CGST) (IGST)
Determination of whether taxable transaction is CGST,
SGST or IGST.

• The transaction should be:

– Intra-State supply of goods or services is when
the location of the supplier and the place of
supply are in the same state, or,
– Inter-State supply of goods or services is when
the location of the supplier and the place of
supply are in different states.
 An example for CGST and SGST:

• Let’s suppose A is a dealer in Mizoram who

sold goods to B in Mizoram worth Rs.
10,000. The GST rate is 18% comprising of
CGST rate of 9% and SGST rate of 9%. In such
case, the dealer collects Rs. 1,800 of which Rs.
900 will go to the Central Government and Rs.
900 will go to the Mizoram Government.
 An example for IGST:

• Consider that a businessman X in Mizoram

had sold goods to Y of Assam worth Rs.
1,00,000. The GST rate is 18% comprised of
18% IGST. In such case, the dealer has to
charge Rs. 18,000 as IGST. This IGST will go to
the Centre.
 REGISTRATION OF DDO.

• Deductor, i.e., DDO is required to be

registered in GSTN under Section 24 (vi) of the
CGST Act, 2017 and get GST Identification
Number (GSTIN).
• Registration is to be done in the common
portal www.gst.gov.in by using PAN/TAN. The
entire process is online.
Registration of Contractor/Supplier under GST
as per Section 22 (1) of the CGST Act, 2017.

• Supplier whose aggregate turnover in a

financial year exceeds Rs 20 lakh, or Rs 10
lakh in the case of special category States.
 Why TDS?
• To enable the Govt to have a trail of
transaction and to monitor and verify the
compliance. It is a powerful instrument to
prevent tax evasion and provides for an audit
trail.
 When TDS is to be deducted ?

• At the time of payment made or credit to the

supplier as per Sec. 51(1) of CGST Act, 2017.
 SUPPLY
• “Supply” under Section 7 of the CGST/SGST Acts 2017
simply means all forms of supply of goods/ services.
– Sale
– Transfer
– Barter
– Exchange
– License
– Rental
– Lease
– Disposal
– Import of services for a consideration (if even it is not in
the course or furtherance of business)
 Kind Of Supply.

• Different kinds of Supply:

1) Supply of Goods
2) Supply of Service
3) Composite Supply
 1. Supply Of Goods.

• Examples of supply of goods:

– Procurement of stationery items, toilet articles,
towels, furniture, air-conditioning machines,
electrical goods, books and periodicals &
medicines, etc.
 2. Supply Of Service

• Examples of supply of services:

– Procurement of security services, car rental
services, generator rental services, rental services
like office building/land taken on rent,
maintenance services, rental of machinery, etc.
 3. Composite Supply

• Examples of Composite supplies:

– Works Contract services such as road, bridge,
building development / renovation / repairing /
maintenance services
 Rates of GST for Works Contract

• Two GST rates have been prescribed for

services provided under Works contract i.e,
18% and 12%.
 GST @ 18%

• Construction of complex, building, civil

structure or a part thereof, including a
complex or building intended for sale to a
buyer, wholly or partly, except where the
entire consideration has been received after
issuance of completion certificate.
 GST @ 12%

• Composite supply of Works contract to the

Government, local authority or a
Governmental authority by way of
construction, erection, commissioning,
installation, completion, fitting out, repair,
maintenance, renovation, or alteration
On which transaction is TDS under
GST required to be deducted ?
• Section 51(1) prescribes that the TDS is to be
deducted from the payment made or credited to
the supplier of taxable goods or services or
both, where the total value of such supply, under
a contract, exceeds INR 2,50,000/- (2,80,001).
• This value shall exclude the taxes leviable under
GST (i.e. ‘Central tax’, ‘State tax’, ‘UT tax’,
‘Integrated tax’ & Cess).
• Taxable value.
 How Taxable value is worked out.

Bill-A Bill-B Formula

Bill Amount INR 2,60,000/- 2,80,001/-

2,60,000 ÷ 1.12 2,80,001 ÷ 1.12 Bill Amount × 100

Taxable Value of Bill = 2,32,142.86 = 2,50,000.89 112
Rounded 2,50,001
OR
As the Taxable As the Taxable
2% TDS value is below Rs value is above Rs Bill Amount ÷ 1.12
2.5 lakh, no TDS will 2.5 lakh, 2% TDS =
be recovered. Rs 5,000/- will be
recovered.
 When TDS is required to be paid ?
• As per Sec. 51(2) of CGST Act, 2017, TDS is
required to be paid by using Form GSTR-7
within ten days of the following month in
which such deduction is made.
• TDS Certificate generated in Form GSTR-7A
have to be given by the deductor to the
deductee ( i.e. within 5 days of crediting the
amount so deducted to the Government
 Late fee.
1. Fail to furnish the return in Form GSTR-7 within
10 days of the following month - late fee of Rs
100/- per day to a maximum of Rs 5,000/-
[Section 47 (1) of the CGST Act, 2017].
2. Fail to furnish the Certificate of TDS deduction
in Form GSTR-7A to the deductee ( i.e. within 5
days – same as No 1 above.
3. TDS not deducted - Interest (@ 18% p.a.) to be
paid or recover as per the law.
4. TDS deducted but not paid to the Government
or paid later than 10th of the succeeding month
– as No 3 above.
 Recovery of excess payment.

• As per Sec. 51(8) of CGST Act, 2017, excess

amount so deducted shall be refunded in
accordance with the provisions of Sec. 54.
 3 (Three) MODES of PAYMENTS.

1) Mode-1: Payment through Internet

Banking/Credit Card (CC)/ Debit Card (DC)
2) Mode-2: Over the Counter (OTC). Limited to
Rs 10,000/- .
3) Mode-3: NEFT/RTGS Transfer.
 Expenditure Sanction.
• Following process shall be followed by the
DDO in this regard:
The Expenditure Sanction shall contain the:
a) Total amount;
b) net amount payable to the
Contractor/Supplier/Vendor and
c) the 2% TDS amount of GST.
 DDO Record.
• Deductee (DDO) shall maintain Annexure ‘A in
the format below:
Annexure A

Record to be maintained by the DDO for filing of GSTR7

GSTIN of Trade Amount Integrated Central State/UT Total
Sl. No. the Name paid to the Tax Tax Tax
Deductee Deductee
on which
tax is
deducted
 BILL PREPARATION.

DDO shall prepare the Bill based on the

Expenditure Sanction. In the Bill, it will be
specified;
i. the net amount payable to the Contractor; and
ii. 2% as TDS to be parked/booked in the Suspense
Head-8658.
iii. Sample Bill.
iv. GST Challan may be attached in the Bill, if
instructed.
 Treasury.
• Bill submitted by DDO, after necessary checks,
will be passed by the Treasury Officer, keeping
2% TDS amount under the Suspense Head
operated against that particular DDO.
 TDS BILL.
• At any periodic interval, when DDO needs to
deposit the TDS amount, he will generate the
CPIN (Common Portal Identification Number) on
the GSTN Portal (www.gst.gov.in) for the amount
(already booked under the Suspense Head).
• While generating the CPIN, the DDO will have to
select mode of payment as either (a) NEFT/RTGS
or (b) OTC.
• In the OTC mode, the DDO will have to select the
Bank where the payment will be deposited
through OTC mode.
• The DDO shall prepare for the bunched TDS
amount already parked under 8658.
• In the Bill, the DDO will give reference of all the
earlier paid bills (TV No may be convenient) from
which 2% TDS was deducted.
• The DDO may also attach a certified copy of the
record maintained by him in this regard. (i.e
Annexure ‘A’)
• The Bill
 NEFT/RTGS MODE

• In case of NEFT/RTGS MODE, the DDO will

have to mention the CPIN Number (as
beneficiary’s account number), RBI (as
Beneficiary) and the IFSC Code of RBI with the
request to Payment Authority (Bank?) to make
payment in favour of RBI with these
credentials.
 OTC MODE

• In case of the OTC mode, the DDO will have to

request the Treasury Officer to issue ‘A’
Category Government Cheque in favour of one
of the 25 authorized Banks.
• The Cheque may then be deposited along with
the CPIN to the Bank Branch so selected.
• Upon successful payment, a CIN (Challan
Identification Number) will be generated by
the RBI/Authorized Bank and will be shared
electronically with the GSTN Portal.
• This can be viewed and the details of CIN can
be noted by the DDO anytime on GSTN portal
using his Login credentials. (Circular No.65)
 STAKEHOLDERS IN GST.
• The following are the stakeholders in the GST scenario:

1) GSTN (Goods and Service Tax Network);

2) e- FPBs (Electronic Focal Point Branches) of authorized
banks;
3) e-Kuber of RBI;
4) Central Accounts Section (CAS) of RBI, Nagpur;
5) e-PAOs (Electronic Pay and account Offices)/ e-
Treasuries of State Governments;
6) Pr. CCA, CBEC (Principal Chief Controller of Accounts) /
Accountant General of the States;
7) Tax authorities of Centre and States.
• Role of e-Treasuries.
 Flow of Accounting information.
• In the case of OTC Mode, the Taxpayer would
have to carry 2 copies of the challan or fill a
pay-in-slip with CPIN details.
• In the case of NEFT/RTGS Mode, the taxpayer
shall take the pre-filled NEFT/RTGS challan to
his bank. Only cheque can be used in this
mode.
 Flow of Accounting information.
• On successful payment, the e-FPB of the bank
would create unique CIN. Real time data
would be relayed to the GSTN through
electronic string containing CIN, GSTIN, BRN,
Challan amount, date and time of payment.
From this point onwards, CIN would be used
as the primary identifier.
 Flow of Accounting information.
• GSTN would send End of Day (EOD) report of
CPINs generated during the day to Accounting
Authorities to facilitate estimation of revenue
and fund management.
• On end of T+1 day, each e-FPB would send
daily luggage files [39 files, one each for CGST,
IGST, Additional tax and every State
Government and UT (SGST)] simultaneously to
RBI and Accounting Authorities.
Flow of Accounting information.(cont.)
• On the first day of every month, e-FPB will
provide Date-wise Monthly Statements (DMS)
for each tax and government separately to RBI
for the preceding month.
• These statements will be simultaneously
communicated to the respective Accounting
Authorities.
 ABBREVIATIONS.
• BRN – Bank Reference Number.
• CIN – Challan Identification Number is a 18 digit
number that is 14-digit CPIN plus 4-digit Bank Code.
• CIN is generated by the authorized banks/ Reserve
Bank of India (RBI) when payment is actually received
by such authorized banks or RBI and credited in the
relevant government account held with them. It is an
indication that the payment has been realized
and credited to the appropriate government account.
CIN is communicated by the authorized bank to
taxpayer as well as to GSTN.
 ABBREVIATIONS.
• CPIN – Common Portal Identification Number,
given at the time of generation of challan. It is
a 14 digit unique number (yymm followed by
two digits state Code and then 8-digit
number) to identify the challan. The CPIN
remains valid for a period of 15 days.
 ABBREVIATIONS.
• GSTIN – Goods & Services Tax Identification
Number. (Specify to which the State belongs-
Mizoram State Code is 15
e.g 15SHLD02049F1DI).
• GSTN – Goods & Services Tax Network.

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