Goods and Services Tax

Centre Name: Bhayander Branch Presented by Group 5:

Batch Timing: 2:30PM to 8:30PM 1. Hanna Mary George – WRO0766682
Batch Commencement Date: 23rd May, 2023
2. Namita Suhas Dhuri – WRO0709696

3. Pranav Sanjay Jain – WRO0777893

4. Neeraj Aravind Yadav – WRO0746928

5. Darshan Kamlesh Waghela – WRO0742461

TABLE OF CONTENTS:

1 Problem with sales tax and need for GST

2 Concept of supply
3 Time of supply
4 Value of supply
5 Input tax credit (ITC)
6 Registration of gst
7 Payment of gst
8 GST Returns
 WHAT WAS THE PROBLEM WITH SALES TAX?

The cost sheet of a transaction is as given: Lets analyse the price of Rs 355.08:

Major problems with existing sales

tax system
To eliminate -> “VAT” -> introduced in 2005.
As per VAT, the tax was supposed to be
levied only the “value addition” at each
Double taxation Tax on tax
stage.
passed in parliament on 29th March, 2017 and
it came into effect on 1st July, 2017
 ADVANTAGES OF GST

Article Article
CONSTITUTIONAL 246
265 No tax unless 1. Union list
PROVISION authorized by 2. State list
law 3. Concurrent list

CGST

Components of COMPONENTS OF GST

SGST/UTGST
GST

IGST
 CONCEPT OF SUPPLY
• Taxable event = supply of goods and service or both
• No supply = No GST

Parameters of supply under GST:

Supply must be of goods or service

made in the course or made for a
furtherance of business consideration

made by a should be a made within

taxable person taxable supply taxable territory
SCH I: Activities to be treated as supply even if made without consideration
Permanent transfer of business ITC on business asset is already
availed( reverse ITC) = supply

Supply of goods or services Made in course of business = supply

between related or distinct
person
Supply of goods by a principle
to agent
Import of service
Gift by employer to employee up to
50000 =not a supply
Where the agent undertakes to
supply on behalf of principal
invoicing is done in the name =
supply
In the course of furtherance of
business = supply

 
SCHEDULE III: Activities To be treated as neither goods nor supply of services (Negative lists)
Services of funeral, burial, crematorium, transportation of deceased
Actionable claim other than lottery
Services by court or tribunal except arbitral tribunal
Services by employer to employee in relation of employment

Supply of goods from a place in non taxable territory to another non taxable territory without
the goods entering into India
SCHEDULE II: Activities to be treated as supply of goods or services
SR TRANSACTION SUPPLY OF:
NO.
1 TRANSFER:  
a) Transfer of Title in goods Goods
b) Transfer of rights in goods Service
c) Transfer of title in goods under an Goods
agreement
2 Land and building:  
a) Lease, tenancy, license Service
b) Lease of building including for business or Service
commerce
3 Treatment or process (Job work/work contract) Service

4 Transfer of business assets Goods

The owner uses or allows to uses Service
5 Supply of services  
a) Renting of Immovable property Service
b) Construction of building Service
Except consideration after issue of  
completion certificate.  
c) Transfer of intellectual property rights Service
d) Information technology software Service/goods if sold
e) Obligation to refrain from an act (non- service
compete agreement )

6 Composite supply:  
a) Works contract Service
b) Goods contain foods or for human Service
consumption
 CONCEPT OF COMPOSITE SUPPLY AND MIXED SUPPLY:

Composite supply :- Consist of two or more
supplies naturally bundled
Conjunction with each other one of which is
principal supply
E.g. Charger with mobile.
MIXED SUPPLY :- consists of two or more
supply not naturally bundled though can be
supplied independently
E.g. A gift pack consist of chocolate,
candies, sweets etc.

CONCEPT OF REVERSE CHARGE MECHANISM

Reverse charge
means the liability to
pay tax is on the
recipient of supply of
goods or services
instead of the supplier of
such goods or services
in respect of notified
categories of supply.
 TIME OF SUPPLY

Relevant Provisions
Time of supply helps to
select a date based on
which GST is payable to
Government. Time of supply
Time of supply Due date/Time
for goods to
for Service limit
Issue Invoice
Sec. 12 of CGST Act Sec. 13 of CGST Act Sec. 31 of CGST Act

CASE TOS (TIME OF SUPPLY)

A) If the invoice is issued within 30
days from date of competition
B) If the Invoice is not issued with
in 30 days* from date of
completion.
A ) Date of Invoice or,
Date of receipt of payment, 1. TIME OF SUPPLY FOR
whichever is earlier.
SERVICES - FORWARD CHARGE
Date of Completion or,
Date of receipt of payment,
whichever is earlier.

 *30 Days Is Replaced by 45 days for Bank, Financial Institution and Insurance Company.
2. TOS FOR GOODS - FORWARD CHARGE

The Due date to Issue Invoice as per section 31 as follows:-

a) Supply Involves Movement → Date of Removals
b) Supply does not Involve Movement → Date of making available.
c) Sale on Approval Basis → Date of Acceptance /6m from Date of Removal

Due date to issue TOS TOS does TOS for sale

invoice as per Sec. involves not involve on approval
31 movement movement basis

3A. TOS FOR SERVICES – RCM 3B. TOS FOR GOODS – RCM

[I] The TOS will be: TOS will be-

a) Date of payment a) Date of Receipt at Goods or,
or, b) 31St day from Date of Invoice or,
b) 61st day from date of Invoice, c) Date of Payment;
whichever is earlier whichever is earlier
VALUE OF SUPPLY

• Transaction Value is accepted only if the following two condition are satisfied:
(a) Price is the sole consideration
(b) Suppliers and Recipient are not related person
Inclusions Exclusions
1) Any Taxes other than GST and compensation loss 1) CBIC has clarified that TCS
(Tax collected at source) under
IT Act 1961, will not be liable to
GST.
2) Any third party payment mode by the recipient on behalf 2) -
of supplier.

3 ) Any Subsidies directly linked to the supply 3) Government subsidy

4) Any charges Incidental or ancillary to the supply 4) -

E.g. Transfer, packing, installations

5) Interest on delayed payment of consideration for a 5) Pre supply Discount shown /

taxable supply recorded on the Invoice
INPUT TAX CREDIT (ITC)
On goods, capital
goods & services
in one go
What is ITC?
No set-off Include tax on
between RCM
CGST & Excludes
SGST composition levy

ITC in
respect of
IGST, CGST
& SGST
Claim to be Subject to
taken certain
state-wise restrictions

Due date to avail ITC on

ITC claim can be invoice:
claimed in GST law
only where taxable 30 Nov after F.Y. or
th

supplies exist Date of filing Annual

return
REGISTRATION OF GST Benefits of GST Registration:

Procedure:
Simplifies Reduction
Helps in avoiding
in costs of
taxation products
lengthy taxation
services services
& services

Uniformity Minimizing
Aimed at reducing
in
corruption and sales
taxation
tax
without receipts evasion
process

Higher Simple
threshold and easy Compliances in
for online lesser in number
registration procedure
 PAYMENT OF SUPPLY
There are three ledgers:

E-Cash Ledger E-Liability Ledger

(Output tax, RCM payable) (Deposit money)
               
Major/ IGST CGST S/UTGST Cess Major/ IGST CGST S/UTGST Cess
Minor Minor
Heads E-credit Ledger Heads
(Input tax Credit)
Tax         Tax        
       
Major IGST CGST S/UTGST Cess
Interest         / Interest        
Minor These can be paid
Penalty         Heads Penalty        
through E-Cash
Fees         Fees        
Tax         ledger only
Others        
Interest         Others        

Amounts which are always to Penalty        

be paid through E-cash Ledger
Fees        
• RCM Payable
• Money to be paid in Others        
Composition scheme
• TDS, TCS (GST)
 • CPIN is created for every challan successfully generated by taxpayer
Common Portal • 14 digit unique number to identify the challan
Identification Number
• Remains valid for a certain number of days
• CIN is is generated by banks
Challan Identification • Generated once payment in lieu of a generated challan successful
Number
• CIN = 17- digit CPIN plus 3- digit Bank code

RULE 86A RULE 86B

Exceptions to Rule 86B:

Reason to believe:
1. Invoices issued
2. Tax charged
3. Person availing the credit
has been found non
conducting business
4. Person availing credit is
not in possession. of a tax
invoice/debit note
1. Person has paid income tax of more than Rs. 1 lakh
in the last 2 years
2. Person has received GST refund of more than 1 lakh
rupees in PFY.
3. He has discharged his liability through E-cash in
excess of 1% of the total output liability cumulatively.
4. Registered person is:
• Government Department
• Public sector undertaking
• Local authority
• Statutory body
 GST RETURNS Option A
Self-assessed (Output ITC)
Quarterly Return Monthly Payment Interest u/s 50 @18% p.a.
 It is available up to 5 crores in Current Financial Year for delayed payment
 GSTR – 1 has to be filled up to 13th after each quarter
 GSTR – 3B has to be filled up to 22nd/24th after each quarter
 Payment of tax in first 2months: (deposit in E – cash ledger)
Option B
GSTR – 1 (details of outward supplies) Fixed Sum
Month 1 & 2
GSTR – 2B (auto generated details of Inward 35% of Tax paid in previous quarter/
supplies) 100% of tax paid in previous month
Date: 25th of next month
GSTR – 3B (furnishing of returns) [Output-ITC]:
No Interest for shortfall compared
to actual tax
GSTR – 4 ( for composition dealers)

GSTR – 5 (Non resident taxable person)(NRTP)

GSTR – 9/9A (Annual return)

GSTR – 10 (final return)

BIBLIOGRAPHY

• https://cleartax.in/s/returns-under-the-gst-law. (n.d.). GST Returns.

• https://cleartax.in/s/supply-under-gst-scope (n.d.). Scope of Supply.
• https://cleartax.in/s/time-supply-goods-gst (n.d.). Time of Supply.
• https://resource.cdn.icai.org/72482bos58405-cp7.pdf (n.d.). CA-Inter Taxation book.
• https://tallysolutions.com/gst/gst-input-tax-credit/. (n.d.). Input Tax Credit.
• https://www.zoho.com/in/books/gst/how-to-determine-the-value-of-supply-under-gst.html.
(n.d.). Valuation of supply.
ANY QUERIES?
THANK YOU