KIET GROUP OF INSTITUTIONS

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.

In SINGLE GST model, Central Government has right to levy tax.

The Dual GST model is proposed by the Empowered Committee and accepted by the
Centre. Dual GST Model shall have two components i.e.
Supply under GST means
• Central GST Lease , exchange,
• State GST transfer , barter, license
,rental , sale, disposal
 WHY DO WE NEED GST TODAY?
• In Indian economy the service sector contributes over 55%.
• Separate taxation of goods and services is neither viable nor desirable
• Value added in manufacture and sale of goods require inputs of both — goods and services
and  vice versa , which is often not separable

GST-KNOW TAXES PAID BY YOU

• We all will pay GST on every product or service we buy.
• Since all indirect taxes levied by the States and the Centre will be merged into one GST, we
would exactly know how much tax we pay which at present is difficult to understand.
• No distinction would be made between imported or Indian goods and they would be taxed
at the same rate.
• The sellers or service providers collect the tax from their customer. Before depositing the
same to the exchequer, they deduct the tax they have already paid. The success of GST
would rest upon efficiency, equity and simplicity.
LEVY OF GST ON INTRA-STATE
TRANSACTIONS

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

Features of GST. GST Council

1. One Nation & One Tax & One Market
2. Events are based on Concept of Supply.
3. Streamlining & Cross Utilization of Input
Tax Credits.
4. Revolutionary Invoice Matching Concept.
GST Governing Body with power to take
decision on rates, exemption, threshold
exemptions, etc with 33.33% voting power
of Union Government & 66.66% power lies
with the State Government.
 Registrations

Registration not required upto

turnover upto 20 Lacs & 10 Lacs for
Special Category States(Current
Limit Proposed in Law.) • Single Registration for
IGST/SGST/CGST/UGST
No threshold Exemption applicable per state.
to following Items, • Registration required in
• Inter-State Taxable Supply each state from where
• Casual Taxable Person supplies made – No
• Liability to Pay Under RCM.
Centralized Registration.
• ECOs
• Multiple Business
• NRIs
• GST TDS Deductors. Verticals in a State –
• ISD May opt for separate
• Online Information & Data registration for each
Retrieval Services. Business Vertical.
• Others, as maybe notified.
 Registrations

●
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.

Format of Prov. GST

Reg.
 Levy of GST on purchases from URD Sec 9(4)

• On purchase of taxable goods and services from URD, buyer liable to GST on Reverse Charge
basis

• No definition of taxable goods and services.

• Illustrations: (Areas could possibly be covered)
• Purchases from suppliers falling below threshold limit
• Trader purchasing office supplies like stationery, tea, cleaning services from URD
• A company purchasing cold drinks, cigarettes or sweets from nearby shops

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

For Pradeep Singhi &

 Composition Levy for Turnover < 50 Lacs
(May Increase upto 1 Cr)

CONDITION FOR RATE OF TAX

WHO CAN OPT WHO CANNOT OPT RATE OF TAX
WHO CAN OPT WHO CANNOT OPT CONDITION
ELIGIBILITYFOR • 1% of turnover in a
• A registered taxable • Supplier of Services • 1% of turnover in a
• A registered taxable • Supplier of Services ELIGIBILITY (State/UT) in Case of a
person whose turnover • Supplier of Exempted • The person shall not (State/UT) in Case of a
Manufacturer
inperson
precedingwhose turnover
financial • Supplier of Exempted
Goods • collect
The person shall
tax from thenot Manufacturer
in preceding financial Goods collect tax • 2.5% of turnover in a
year did not exceed • Who makes inter-state recipient on from the
supplies • 2.5% of turnover in a
(State/UT) in case of a
year
fifty didrupees
lakh not exceed • Who makes inter-state recipient onnor
supplies
supply of goods (IGST) made by him he (State/UT)
supply of foodin &
case of a
non-
• If fifty lakh rupees
the turnover in the supply of goods (IGST)
• Supplies goods through shall be eligible for he
made by him nor any supply of foodfor
& non-
• If the turnover in the • Supplies goods through shall be eligible for any alcoholic liquor
current financial year ECO. input tax credit. alcoholic
human liquor for
consumption.
currentfifty
exceeds financial
lakh year ECO. input tax credit. human consumption.
exceeds • Unless all units • 0.5% of the turnover
rupees, thefifty lakh
permission • registered
Unless allfor
units
Same • 0.5% of the turnover
rupees,
shall standthe permission
withdrawn registered for Same (State/UT) in case of a
shall stand withdrawn PAN (State/UT)
others in case of a
suppliers.
PAN others suppliers.
 Payment of Taxes
• Tax
ELECTRONIC • Interest
CASH • Penalty
REGISTER • Arrears
• Fees or any
LIABILITY AS other amount
AVAILABLE payable
IN CAN BE under the act
ELECTRONIC DISCHARGED IGST
LIABILITY THROUGH IGST CGST
REGISTER SGST
ELECTRONIC
CREDIT CGST CGST
REGISTER IGST
SGST
SGST
IGST
UGST
UGST
IGST

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

MONTHLY RETURN IN GSTR 3 OF TAX BY 20TH OF

SUCCEEDING MONTH

Final Turnover of Input Autopopulated based on GSTR-2 Final Turnover of Output Autopopulated based on GSTR 1

INWARD GSTR 2 TAXABLE GSTR 1 OUTWARD

SUPPLIER TAXABLE
PERSON RECEIPIENT
15TH OF SUCCEEDING PERSON 10TH OF SUCCEEDING
MONTH MONTH

ANY ALTER, REJECT, MODIFY,

UNDER GSTR – 2 TO BE INTIMATED AUTOPOPULATED UNDER
UNDER GSTR –1A PART A OF GSTR-2A

INVOICE WISE DETAILS TO BE UPLOADED IN THE RETURNS UNDER GSTR-I.

CANNOT FILE GSTR-1 FROM 11TH
TH TO 15TH
TH OF THE SUCEEDING MONTH.

CONCEPT OF INVOICE MATCHING INTRODUCED IN THE RETURNS

 GSTN – Return Compliances

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

• Late fee prescribed for late filing of returns

• Furnishing Details/Monthly Returns – 100/day or 5000/- .
• Annual Returns - 100/day or 0.25% of the Annual Turnover in that State.
RETURNS: GSTN PORTAL - LEDGER
BALANCE
GSTR-1 – INVOICE DETAILS
GSTR-2 - INWARD SUPPLIES
GSTR-3 - DETAILS OF MONTHLY RETURN
GSTR-3 – TURNOVER DETAILS
 Refunds
Refund of Unutilized ITC
• For exempted exports including zero rated supplies
• Rate of Tax on inputs is higher than on output supplies
(Inverted Levy)
• No Refund if Duty Drawback claimed.

Refund of Tax & Interest

• Application shall be filed before expiry of 2 years.
• Special category persons shall file before expiry of 6 months.
• Refund filed for tax, duty, cenvat credit or interest paid in earlier law shall be disposed of as per earlier law & if
admissible shall be paid in Cash. (Transitional Provision)

Procedure & Timings for Sanctioning Refunds

• Provide documentary evidence as prescribed
• If refund is < Rs.2 Lac, than he shall only file a declaration that incidence of tax has not been passed.
• If refund Zero rated supplies of G/S is claimed, 90% of claim shall be refunded on provisional basis.
• Officer shall issue order within 60 days of receipt of application
• Interest not exceeding 6%shall be paid if not refunded within 60 days
For Pradeep Singhi &
 Penalty & Prosecution Provisions
Reasons other than fraud,etc (S.73)
Tax has been paid or short paid or erroneously refunded or ITC wrongly availed
By reason of fraud,etc (S.74)
TYPES OF OFFENSES
Particulars U/s 73 U/s 74
1. Supplies G/S without issue of any invoice
Maximum Penalty 10% of tax OR 100% of > Rs.5Cr.
Rs.10,000 WEH tax 2. Issue of invoice without supply of G/S > Rs.5Cr.
Cognizable
Period covered 3 yrs. 5 yrs.
3. Collects tax but fails to pay to the credit of Govt. &Cognizable
Non-
& Non-
Bailable.
4. Takes/utilizes ITC point # 2 above. Bailable.
Paid before SCN - 15% of tax
5. Collects tax in contravention of provisions but fails
After SCN but - 25% of tax to pay to the credit of Govt.
within 30 days
6. Evades tax, wrongly avails ITC or refund
After Order issued 10% of tax OR 50% of tax
but within 30 days Rs.10,000 WEH 7. Falsifies financial records
Imprisonment
8. Prevents officer in discharge of his duties Imprisonment
upto 6 month
Amount of Evasion Imprisonment with/or6Fine.
upto month
9. Tampers or destroys any evidence with/or Fine.
> Rs. 5 Cr Upto 5 yrs. with Fine
10. Engages in services which are in contravention
Rs. 2 Cr - 5 Cr Upto 3 yrs. with Fine
11. Engages in goods liable for confiscation
Rs. 1 Cr - 2 Cr Upto 1 yr. with Fine
12. Fails to supply information under this Act
13. Attempts to commit any of the above
 Hope you
are Ready
for GST.
NOW!
Thank
You!