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Presentation on…
GST
(GOODS AND SERVICES TAX)
BY:
Prajjwal Gupta
Vikas Sinha
Srishti Garg
Yash Singhal
Are you
Ready for
GST?
INTRODUCTION
•GST is the biggest reform proposed in the Tax Regime of our
country after Independence. The Modi Government introduced
the Constitution (122nd) Amendment Bill, 2014 in the Lok Sabha
on 19th December, 2014 for amending the Constitution of India.
•In India officially in the midnight on 30th June -1st July 2017 a
ceremony was organized in the central hall of parliament for the
introduction of GST.
WHAT IS GST?
GST is going to be a destination based tax. It will be charged on the supply of Goods and
Services. Since the word used is supply, hence the Branch t/f and Stock T/f will also be
covered under the ambit of GST.
Petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead
are taxed separately by the individual state governments, as per the previous tax regime.
The dual GST model shall have two components i.e. Central GST and State GST.
Both will be charged on a common base at the rates decided by the GST
Council. There will be two parallel Statutes – one at the Centre and other
under the respective State GST Act – governing the tax liability of the same
transaction.
Cross utilization of ITC both in case of Inputs and capital goods between the
CGST and the SGST would not be permitted except in the case of inter-State
supply of goods and services (i.e. IGST).
LEVY OF GST ON INTER-STATE
TRANSACTIONS
The existing CST will be discontinued. Instead, a new statute known
as IGST will come into place. It will empower the CG to levy and collect the tax
on the inter-state transfer of the Goods and Services. Rate of IGST will
roughly be equal to the sum of CGST and SGST. Revenue from interstate
transactions will accrue to the destination state and not to the Origin state.
Supplier in the origin State will charge IGST on Inter State transactions, which
will be aggregate of CGST & SGST, i.e., IGST = CGST+SGST. Inter-State Supplier
shall use his input CGST and input SGST for payment of IGST, i.e., he shall pay
net IGST.
IMPACT OF GST ON THE INDIAN
ECONOMY?
• Improve competitiveness - export – 5-7%
• Boost FDI investment in India
• Increase in value of Indian Rupee – higher ROI for Investor
• Rate of 18% for Manufacturer and Traders could reduce costs
• Rate of 18% equals present 15% rates (services credit)
• Push GDP growth by 1.5-2%
Overview of GST
Service State
Tax Goods & Excise Duty
Service Tax
Excise (GST) Entertai
Duty nment
Tax
VAT
CST
Luxury Octroi
Tax Duty
●
PROOF OF CONSTITUTION OF BUSINESS
●
DETAILS OF ALL BANK ACCOUNTS
●
PROOF OF PRINCIPAL AND ADDITIONAL PLACE OF BUSINESS
Documents Required ●
DETAILS OF PARTNERS/ PARTNERS/ DIRECTORS
●
DETAILS OF GOODS OR SERVICES TO BE SUPPLIED
for Registration ●
HSN CODE OF GOODS AND SERVICES
●
PHOTOGRAPHS OF PARTNERS/ DIRECTORS/ PROPRIETOR
●
ANY OTHER DOCUMENTS AS MAY BE PRESCRIBED.
• On purchase of taxable goods and services from URD, buyer liable to GST on Reverse Charge
basis
URD is
Unregistered
Dealer
Tax Invoices / Rates
•• Single
Single Goods
Goods // Services
Services // Commodity
Commodity shall
shall % Nil Rate Items
00 %
have Rates
have Rates Prescribed
Prescribed inin CGST
CGST // SGST
SGST & & 5/6 Tier
5/6 Tier Rate
Rate
IGST.
IGST. Structure Proposed
Structure Proposed for
for 55 %
% Essential Items
•• IfIf the
the Receiver
Receiver is
is Located
Located within
within the
the State
State •• CGST
CGST (20%)
(20%)
12 %
12 % Standard Rate
CGST &
CGST & SGST
SGST both
both shall
shall be
be made
made •• SGST
SGST (20%)
(20%)
applicable.
applicable. •• IGST
IGST (40%)
(40%) 18 %
18 % Standard Rate
•• IfIf the
the Receiver
Receiver is
is Located
Located inin other
other State,
State, •• UGST
UGST (20%)
(20%)
IGST shall
IGST shall be
be made
made applicable.
applicable. 28 %
28 % Luxury Items
Addon Tax on Ultra Lux,
Proposed Format of the Tax Invoices Add. Levy
Add. Levy %
% Sin & Demerits Items
LIABLITY TO BE DISCHARGED ON REVERSE CHARGE BASIS WILL BE DISCHARGED THROUGH CASH REGISTER
Filling of Returns
ANNUAL RETURN IN GSTR 9 BY 31ST
DECEMBER OF SUCCEEDING FINANCIAL YEAR
Final Turnover of Input Autopopulated based on GSTR-2 Final Turnover of Output Autopopulated based on GSTR 1
Step 4
GSTR-1A : The details of inward
Step 1
16 10
supplies added, corrected or Step 8 20
GSTR 1: Details
deleted by the recipient shall be
of Outward
made available to the supplier
supplies Step 2 GSTR 3
GSTR 2A: Auto-
Step 5 11
populated in
17 Step 3 part A of the
Supplier will accept or Part B of
reject the modifications GSTR 2: On the basis of GSTR-2A of GSTR 3
above GSTR-2A, details recipients
Step 7
of inward supplies
added, corrected or 15 Make
Step 6 deleted by recipient to
17 Part A of GSTR 3
Payment
GSTR-1 will be amended be disclosed under
to the extent GSTR-2, including RCM
details 20
modifications are Part A of GSTR 3
accepted by supplier.
Filling of Returns……. continued
OTHER RETURNS FORM DUE DATE
QUARTERLY RETURN FOR COMPOSITION LEVY GSTR -4 18TH
MONTHLY RETURN FOR NON-RESIDENT FOREIGN TAXABLE PERSON GSTR -5 20TH
ISD RETURN GSTR -6 13TH
RETURN FOR PERSONS DEDUCTING TAX AT SOURCE GSTR -7 10TH
OTHER FEATURES
• Annual return to be submitted along with copy of audited annual accounts and a
reconciliation statement, reconciling the values of supplies declared in the return furnished
in the year
• Filing of Nil return (Regular / Composition) also mandatory under GST
• No Returns can be filed if previous period returns pending.
• If GSTR-1 10th Deadline missed – Min. Penalty of Rs.500