GST Referencer - A2Z Academy · 487 MODULE 3 GST Referencer CONTENT Chapter 1 Overview of Pre-GST Indirect Taxation in India 489 Chapter 2 Overview of GST & its Benefits in solving

487

MODULE 3GST Referencer

CONTENT

Chapter 1 Overview of Pre-GST Indirect Taxation in India 489Chapter 2 OverviewofGST&itsBenefitsinsolving

Pre-GSTShortcomings 493Chapter 3 LevyandCollectionofGST-Intra-StateSupplyof

Goods and Services 497Chapter 4 LevyandCollectionofGST-Inter-StateSupplyof

Goods and Services 501Chapter 5 Exempted,NilRated&Non-GSTSupplyinGST 506Chapter 6 TaxableEventunderGST-MeaningandScopeofSupply 512Chapter 7 Meaningof‘Goods’and‘Services’inGST 521Chapter 8 ConceptofCompositeandMixedSupply 524Chapter 9 TaxablepersoninGSTandReverseChargeMechanism 526Chapter 10 CompositionlevyunderGST 541Chapter 11 InputtaxcreditunderGST 550Chapter 12 ValueofSupplyofGoodsandServices 578Chapter 13 TimeofSupply(PointofTaxation)ofGoodsand

Services in GST 589Chapter 14 PlaceofSupplyofGoodsandServicesinGST 597Chapter 15 ImportandExportofGoodsorServices 612Chapter 16 RefundsunderGST 626

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CONTENT






487


CONTENT






488 GST Law and Analysis - with Conceptual Procedures

Chapter 17 E-commerceinGST:TaxcollectionatSource(TCS) 641Chapter 18 JobWorkinGST 650Chapter 19 RegistrationprocessinGST 656Chapter 20 TaxInvoice,CreditandDebitNotes 675Chapter 21 PaymentofGST 691Chapter 22 TaxDeductionatSource 702Chapter 23 ReturnsunderGST 709Chapter 24 AccountsandRecordsinGST 722Chapter 25 AssessmentandAudit 729Chapter 26 DemandandRecoveryunderGST 737Chapter 27 Inspection,Search,SeizureandArrest 763Chapter 28 OffencesandPenalties 771Chapter 29 ProsecutionandCompoundingofOffences 779Chapter 30 AppealsandRevision 787Chapter 31 AdvanceRuling 797Chapter 32 Anti-ProfiteeringMeasure 805Chapter 33 OtherMiscellaneousProvisions 813Chapter 34 E-WayBill 829Chapter 35 TransitionalProvisionsinGST 844Chapter 36 GSTAnnualReturn 856Chapter 37 GSTAudit-ReconciliationStatement 860Chapter 38 ClassificationandRatesofGST 863Chapter 39 GSTCompensationCessunderGST 869Chapter 40 ExemptionsinGST 872Chapter 41 GoodsandServicesTaxNetwork(GSTN) 878Chapter 42 GoodsandServicesTaxCouncil 894Chapter 43 RelevantArticlesoftheConstitutionofIndia 898Chapter 44 ImportantTermsunderCustomsAct,1962 911Chapter 45 ImportantTermsunderGeneralClausesAct,1897 920

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MODULE 4

Guide to file GST Annual Return

A return is a statement of details relating to business activities undertaken by the taxable person during a prescribed tax period. A registered person has legal obligation to declare and discharge his tax liability, furnish details about the taxes paid and file correct, complete and valid return within the due date of filing the returns. Essentially, GST is a self-assessed destination/ consumption-based taxation system. Further, in addition to monthly returns, a registered person is also required to file annual return for every financial year in the form and manner prescribed under the GST Act and rules made thereunder.

4.1 OVERVIEW - CONCEPT, DUE DATE & FORMS

Purpose of filing GST ReturnsFiling of GST return is an important tool for:

• Compliance, verification program of tax administration• Providing necessary inputs for taking policy decision• Management of audit and anti-evasion programs• Finalizing the tax liabilities of the taxpayer for the specified period, etc.

Who is required to file annual return?As per the provisions of sec 44(1) of the CGST Act read with rule 80(1) of the CGST Rules, every registered person1 other than –

1 As per sec 2(94) of the CGST Act, a “registered person” means a person who is registered under sec 25 but does not include a person having a Unique Identity Number.

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MODULE 9Comparative insight into the

amended CGST and IGST Acts

The GST Council in its 32nd meeting held on 10.01.2019, gave approval that the changes made by the CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.

Pursuant to above, the government vide notification no. 2/2019 – central tax dated 29.01.2019, has appointed 01.02.2019 as the date on which the provisions of the CGST Amendment Act, 2018, except clause (b) of sec 8, sec 17, sec 18, clause (a) of sec 20, sub-clause (i) of clause (b) and sub-clause (i) of clause (c) of sec 28, shall come into force.

Similarly, in IGST, notification no. 01/2019 – integrated tax dated 29.01.2019 is issued to appoint 01.02.2019 as the date on which the provisions of the IGST Amendment Act, 2018 shall come into force.

Earlier, the Hon’ble President on 29.08.2018 has given its assent to these four crucial amendment bills of GST law, which got published in the official Gazette of India on 30.08.2018.

Now, since the various Amendment Acts are going to be effective from first day of February 2019, it is highly imperative to plunge into the changes and understand their implications on our business.

For the ease of understanding, this module summarises herewith section-wise tabular presentation of amended CGST Act and IGST Act in comparison with the pre-amendment Acts. This tabular also discusses the effect of these amendments along with suggestions as to further simplification of the GST Laws.

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MODULE 4

Guide to file GST Annual Return

A return is a statement of details relating to business activities undertaken by the taxable person during a prescribed tax period. A registered person has legal obligation to declare and discharge his tax liability, furnish details about the taxes paid and file correct, complete and valid return within the due date of filing the returns. Essentially, GST is a self-assessed destination/ consumption-based taxation system. Further, in addition to monthly returns, a registered person is also required to file annual return for every financial year in the form and manner prescribed under the GST Act and rules made thereunder.

4.1 OVERVIEW - CONCEPT, DUE DATE & FORMS

Purpose of filing GST ReturnsFiling of GST return is an important tool for:

• Compliance, verification program of tax administration• Providing necessary inputs for taking policy decision• Management of audit and anti-evasion programs• Finalizing the tax liabilities of the taxpayer for the specified period, etc.

Who is required to file annual return?As per the provisions of sec 44(1) of the CGST Act read with rule 80(1) of the CGST Rules, every registered person1 other than –

1 As per sec 2(94) of the CGST Act, a “registered person” means a person who is registered under sec 25 but does not include a person having a Unique Identity Number.


DETAILED ANALYSIS OF FORM GSTR-9

4.3 TABLE 1 TO TABLE 3 OF FORM GSTR-9 : BASIC DETAILS

4.3.1 Table 1: Financial Year

Pt. I Basic Details1 Financial year

This table requires disclosure of the “financial year” to which the annual return relates. As GST was introduced in July 2017, one may consider following aspects while filling Table 1 of GSTR-9:

• What should be filled in this table?• Whether filling financial year as 2017-18 would mean including details

pertaining to April to June 2017 period as well?In the absence of any explicit definition of ‘financial year’ in the GST law, we may refer the definitions as contained under the General Clauses Act, 1897, which defines “financial year” to mean the year commencing on the First day of April and closing on the 31st day of March.

There is no iota of doubt that understanding meaning of the term “financial year” holds its importance only in the first year of GST regime, considering the advent of GST in India w.e.f. 01.07.2017. It needs to be appreciated, that although annual return is to be prepared for the financial year 2017-18, but for all intents and purposes, the GST Laws stood applicable only for nine months commencing from 01.07.2017 to 31.03.2018, hence, in this table, one may mention “2017- 18”.

4.3.2 Table 2: GSTIN

Pt. I Basic Details2 GSTIN

GSTIN means the “Goods and Services Tax Identification Number” of the Registered Person. Each tax payer, on his successful registration are assigned a state-wise PAN based 15-digit GSTIN. The same is required to be reported here.

4.3.3 Table 3A and 3B: Legal Name and Trade Name

Pt. I Basic Details3A Legal name3B Trade name (if any)


4.19 TABLE 19: LATE FEE FOR BELATED FILING OF ANNUAL RETURN

In this table, late fees paid or payable must be reported. As per sec 47(2) of the CGST Act, any registered person who fails to furnish the return required under sec 44 by the due date, is liable to pay a late fee of Rs. 200 per day of delay (Rs.100 for CGST & Rs. 100 under SGST/UTGST), subject to a maximum amount of (0.25% CGST + 0.25% SGST/UTGST) of the turnover in the State or Union Territory.

19 Late fees payable and paidDescription Payable Paid

1 2 3A Central taxB state tax

Notice to the non-filers: Sec 46 of the CGST Act read with rule 68 of the CGST Rules, states that where a registered person fails to furnish a return under sec 44 (i.e. annual return), a notice shall be issued requiring him to furnish such return within 15 Days in such form and manner as maybe prescribed.

In this regard, rule 68 of GST Rules states that the notice shall be issued in Form GSTR 3A, electronically, to a registered person who fails to furnish return under sec 44.

Payment of additional liabilityTowards the end of the return, taxpayers shall be given an option to pay any additional liability declared in this form, through Form DRC-03. Taxpayers shall select ―”Annual Return” in the drop down provided in Form DRC-03. It may be noted that such liability can be paid through electronic cash ledger only.

4.20 KEY CHALLENGES AND PRECAUTIONS WITH WAY FORWARD FOR FILING GSTR-9

Form GSTR-9 and 9C need lot of changes either on the account of complexity or ambiguity. Few issues have been resolved in 31st GST council meeting by bringing into force amended formats of GSTR-9 and GSTR-9C. But still lot need be done. Inter alia following important issues that crops out are as under and need kind perusal and suitable action:

I. Increase in time period to avail ITC for FY 2017-18 and rectification of returns v. GST Annual Return formats

Vide Order No. 2/2018 – Central Tax dated 31.12.2018, the following position is clarified:

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MODULE 8Available Functionalities

on GSTN Portal

Available Functionality for Tax Payers on GSTN Portal are as under:

Sr. No

Module / Area FORM FORM Components/ Details

1 Registration Bank details not to be provided while filing registration applica-tion by Normal, OIDAR & NRTP Taxpayer

Normal, OIDAR & NRTP Tax-payers applying for a fresh registration application, are now not required to give bank details, while filing it. They can give this detail later on by filing a non-core amendment of registration application.

2 Registration Non-Core Amendment of Registration for GSTP

Facility has been provided on the GST Portal to GSTPs, for applying for Non-Core Amendments in their Reg-istration.

3 Composition Reply to SCN for com-pulsory withdraw-al from Composition Scheme

If proceedings for compul-sory withdrawal from Com-position Scheme is initiated by a Tax Official, against a

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1268

MODULE 8Available Functionalities

on GSTN Portal

Available Functionality for Tax Payers on GSTN Portal are as under:

Sr. No

Module / Area FORM FORM Components/ Details

1 Registration Bank details not to be provided while filing registration applica-tion by Normal, OIDAR & NRTP Taxpayer

Normal, OIDAR & NRTP Tax-payers applying for a fresh registration application, are now not required to give bank details, while filing it. They can give this detail later on by filing a non-core amendment of registration application.

2 Registration Non-Core Amendment of Registration for GSTP

Facility has been provided on the GST Portal to GSTPs, for applying for Non-Core Amendments in their Reg-istration.

3 Composition Reply to SCN for com-pulsory withdraw-al from Composition Scheme

If proceedings for compul-sory withdrawal from Com-position Scheme is initiated by a Tax Official, against a

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Module 9: Comparative insight into the amended CGST and IGST Acts 1339

Synopsis of the CGST Amendment Act, 2018

Provisions as per pre-amendment

CGST Act

Provisions of amended CGST Act

Effect of amendment along with analysis

as to comparisonSection 2(4) – Definition of ‘Adjudicating Authority’

“adjudicating authori-ty” means any authority, appointed or authorised to pass any order or de-cision under this Act, but does not include the Cen-tral Board of Excise and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Ap-pellate Authority and the Appellate Tribunal.

“adjudicating authori-ty” means any authority, appointed or authorised to pass any order or de-cision under this Act, but does not include the Central Board of Excise Indirect Taxes and Cus-toms, the Revisional Au-thority, the Authority for Advance Ruling, the Ap-pellate Authority for Ad-vance Ruling, the Appel-late Authority, and the Appellate Tribunal and the Authority referred to in subsection (2) of section 171.

Changes are made in pursuance of the change in name of CBEC to CBIC. Further, the National An-ti-Profiteering Authority constituted under Sec-tion 171 of the CGST Act is also excluded from the definition of ‘adjudicat-ing authority’.

Section 2(17)(h) – Definition of ‘Business’“business” includes––(h) services provided by a race club by way of to-talisator or a licence to book maker in such club; and

“business” includes––(h) services provided by activities of a race club including by way of to-talisator or a license to book maker or activities of a licensed book mak-er in such club; and

This change ensures that all activities related to a race club are included in definition of business.

Section 2(18) – Definition of ‘Business Vertical’“business vertical” means a distinguishable compo-nent of an enterprise that is engaged in the supply of individual goods or services or a group of re-lated goods or services which is subject to risks

“business vertical” means a distinguishable compo-nent of an enterprise that is engaged in the supply of individual goods or services or a group of re-lated goods or services which is subject to risks

Omitted in pursuance of amendment in registra-tion provisions which eliminates the require-ment of having multiple business vertical for ob-taining separate regis-tration in GST.

Documents

GST Referencer - A2Z Academy · 487 MODULE 3 GST Referencer CONTENT Chapter 1 Overview of Pre-GST Indirect Taxation in India 489 Chapter 2 Overview of GST & its Benefits in solving