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U.P. State Conference on the theme SEIZING OPPORTUNITIES & CONQUERING CHALLENGES-GST
GSTIndia.biz
Northern India Regional Council of the Institute of Company Secretaries of IndiaIndian Industries Association, IIA Bhawan, Lucknow
Ashu DalmiaConsultant: GCC VAT & INDIA GST, TRAINER & AUTHORMob: +91-9810893243, E-Mail: [email protected]
TAX SCHEMA-STRUCTURE
Tax Administration
•Registration•Migration•Information
Analysis•Assessment and
other compliance procedures
Tax Applicability
•Goods/•Services•Exempted•On Whom•Receiver or
Supplier•On Which
Transaction-Supply
Tax Calculation
• Taxable Value•Nil Rated• Tax Rate•Applicability of
Refunds
Documentation
• Tax Invoice• Bill of Supply• Invoice Cum
Bill of Supply• Challan
Accounts
•Recording of transactions
•Maintenance of Books of Accounts as per Statutory Requirements
•Reconciliations
Tax Settlement
•Tax Payments•Submission of
Returns & Reports
EXISTING INDIRECT TAXES
On Manufacturing
•Excise Duty
On Trading
•VAT
On Services
•Service tax
GST LAWS
GST Acts
CGST Act
Apply to whole of
India
IGST Act
Apply to whole of
India
SGST Acts
Apply to the
respective State
UTGST Act
Andaman &Nicobar
Islands
Lakshadweep
Dadra & Nagar Haveli
Daman and Diu
Chandigarh
& Other Territory
GST (Compensation to the States)
Act
Apply to whole of
India
NOTIFIED GST RULES
Composition RegistrationDetermination
of Value of Supply
Input Tax Credit
Tax Invoice, Credit & Debit
Notes
Accounts & Records
ReturnsPayment of
TaxRefund
Assessment & Audit
Advance Ruling
Appeals & Revision
Transitional Provisions
Anti-Profiteering
E-way Rules
REG.
Taxable person” means a person who is registered or liable to be registered under section 22 or section 24
TAXABLE PERSON
• A person who has obtained or is required to obtain more than oneregistration, whether in one State or Union territory or more than one Stateor Union territory shall, in respect of each such registration, be treated asdistinct persons for the purposes of this Act.
• Where a person who has obtained or is required to obtain registration in aState or Union territory in respect of an establishment, has an establishmentin another State or Union territory, then such establishments shall be treatedas establishments of distinct persons for the purposes of this Act.
DISTINCT PERSON
WAYS OF REGISTRATION
MANDATORY REGISTRATION
Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special
category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a
financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of goods or services or both from any of the special
category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh
rupees.
Special category States are Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram,
Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
AGGREGATE TURNOVER
Aggregate turnover” means the aggregate value of all taxable supplies (excluding the
value of inward supplies on which tax is payable by a person on reverse charge basis),
exempt supplies, exports of goods or services or both and inter-State supplies of
persons having the same Permanent Account Number, to be computed on all India
basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;
Aggregate turnover “include
-taxable supply
-exempt supplies
-export of Goods and/or services
-inter state supplies of a person having same PAN to be computed on all India basis
-excludes taxes paid under GST and
-Supplies on which tax has been paid under reverse charge.
TIME TO APPLY FOR REGISTRATION
Registration to applied with in 30 days of becoming taxable person
except for Casual and Non Resident Taxable Person
EFFECTIVE DATE OF REGISTRATION
Apply for Registration with in 30 days
Registration shall be effective from the date on which the person becomes liable to registration
Not Applied for Registration with in 30 days
Registration shall be effective from the date of grant of Registration
LEVY
CGST to be levied on all intra-State supplies of goods or
services or both.
CGST shall not be applicable on the supply of alcoholic liquor
for human consumption.
CGST shall be payable on the value determined under
section 15 of the act at such rate to be notified by the
Government on the recommendations on the
Council NOT EXCEEDING 20%
CGST Shall be paid by the Taxable Person.
Tax also to be paid by recipient in certain situations.
LEVY-CGST ACT
IGST to be levied on all inter-State supplies of goods or
services or both.
IGST shall not be applicable on the supply of alcoholic liquor
for human consumption.
IGST shall be payable on the value determined under
section 15 of the act at such rate to be notified by the
Government on the recommendations on the
Council NOT EXCEEDING 40%
IGST Shall be paid by the Taxable Person.
Tax also to be paid by recipient in certain situations.
LEVY-IGST ACT
TAXES : GST REGIME
Charged and Paid
CGST and SGST/UTGST
in place of
IGST
or vice versa
Impact
Pay Correct Tax
and
take Refund
of
wrong Taxes Paid
INTRA STATE/INTER STATE SUPPLY-WRONG CLASSIFICATION-IMPACT
www. gstindia.biz
19CLASSIFICATION-INTERSTATE/INTRASTATE
Location of
Supplier
Place of Supply
Same State /Same
UT
Intra State
Supply
CGST plus
SGST /UTGST
Location of
Supplier
Place of Supply
Two different States/UT/State and UT
Inter State
SupplyIGST
Place of Supply
Goods
Other than import or export
Import
or
export
Services
Location of Supplier
Location of Recipient
Both in India
Either one is outside India
CGST/SGST Act –Section 9(1)
IGST Act-Section 5(1)
UTGST Act-Section 7(1)
CGST/SGST Act –Section
9(3)
IGST Act-Section 5(3)
UTGST Act-Section 7(3)
CGST/SGST Act –Section
9(4)
IGST Act-Section 5(4)
UTGST Act-Section 7(4)
CGST/SGST Act –Section
9(5)
IGST Act-Section 5(5)
UTGST Act-Section 7(5)
LEVY
Levy of GST-Forward Charge
Levy of GST on Reverse charge
Reverse charge on specified Goods and or
Services notified
Reverse Charge on Inward supply from
unregistered person.
LEVY on Ecommerce Operator for specified
services.
DOCUMENTS
DOCUMENTS UNDER GST
Tax Invoice
Bill of Supply
Receipt Voucher
Payment Voucher
Credit Note
Debit Note
Refund Voucher
Challan
24
Shall be debited for Any amount payable as
per returned furnished Any amount payable as
determined by proper officer
Tax and interest payable as a result of mismatch u/s 42 or u/s 43 or u/s 50
Accrued interest
DebitPayment ofliability to taxinterest,penalty, late feeor any otheramountClaim ofpayment fromcash ledger
Credit
ITC as self assessment
Debit
For making payment towards
amount of tax
Electronic credit ledger GST PMT - 02
Credit•Amount depositfor pay tax ,interest, penalty,late fee or anyother amount•Amountdeducted /s 51• Amountcollected u/s 22
Electronic liability register GST PMT - 01 Cash ledger GST PMT - 05
ELECTRONIC LEDGER
TAX INVOICE
TIME OF ISSUE OF INVOICE FOR SUPPLY OF GOODS
When Movement of Goods Required
Before orat the timeof removalof goods
When movementof goods notrequired
Before orat the timeof deliveryof goods
Continuous supplyof goods
Earliest of thefollowing;
Time when each payment is received
Time when each statement is issued
Goods taken on approval
Earliest ofthe following;
On approval
Six month from the date of approval
In case supply to unregistered person is for Rs. 50,000/- or more
tax invoice should contain :
Name
Address of the recipient
Address of delivery
Name of State
TIME OF ISSUE OF INVOICE FOR SUPPLY OF SERVICES
Normal Supply
With in 30 daysfrom the dateof supply ofservices
Continuous supply of Services
On or before the due date of payment, incase of continuous supply of services wheredue date is ascertainable.
On or before the date of payment ,in case of continuous supply of services where due date is not ascertainable
On or before that completion, in case of continuous supply where payment is linked to completion of an event.
Cessation of Service
Time when supply ceases to the extend supply made before such
cessation
ITC
ITC-FORMS
• ITC by Registered person can be claimed only Relevant information as per Tax Invoice Rules is furnished in FORM GSTR-2 Except in Situation Below..
GSTR-2
•Migration CreditsTRANS-1,2,3
•First Time Credits –Section 18(1) & Rule 40ITC-01
• sale, merger, amalgamation, lease or transfer of a business -Section18(3) & Rule 41.ITC-02
• ITC reversal on input, input contained in semi finished goods, finished goods and Capital goods in stock –Section 18(4) & Rule 44
ITC-03
• Goods/Capital goods sent to job worker and received back –Section 19 & Rule 45
ITC-04
Monthly returns are filed by 20th u/s 39
He is in possession of;
- Tax Invoice.
- Debit note.
-Other Document as may be prescribed[(Rule- 36(1)].
Payment of tax charged in respect of suchsupply has been actually paid to government:
- In Cash; or
- Through Utilization of ITC.
Receipt of goods or services or both.
Registered person shall not beentitled to take credit of any input taxin respect of any supply of goodsand/or services to him unless:
CONDITIONS-TO CLAIM ITC
ITC shall be availed by Registered person/ISD on the basis of following documents
Invoice issued for outward supply
Invoice Issued for inward supply where tax is paid under reverse charge
Debit Note Issued by supplier
Bill of entry or any similar document prescribed under the Customs Act,1962 or Rules made there under for assessment of integrated tax on imports
An ISD invoice or ISD credit note or any document issued by an InputService Distributor
DOCUMENTS-TO CLAIM ITC
In respect of Motor Vehicle and Other Conveyance
except when they are used for:
Making the following taxable supplies
Further supply of such vehicles or conveyance; or
Transportation of passengers ; or
Imparting training on driving, flying, navigating such
vehicles or conveyance
Transportation of goods
EXCLUSIONS-ITC
• - Food and beverages
• - Outdoor catering
• - Beauty treatment
• - Health services
• - Cosmetic and plastic surgery
- Rent-a-cab
- Life insurance
- Health insurance
- Membership of a club, health and fitness center
- Travel benefits extended to employees on
vacation such as leave or home travel
concession
Specified supplies
Except where said category of
inward supply of goods or
services are used for making an
outward supply of goods or
service of same category or as
an element of Composite or
Mixed Supply of same category.
Except where the government
notifies the services which are
obligatory for an employer to
provide to its employees &
where said category of inward
supply of goods or services are
used for making an outward
supply of goods or service of
same category or as an element
of Composite or Mixed Supply
of same category
EXCLUSIONS-ITC
Works Contract Services
• When supplied for construction
of immovable property (other
than plant and machinery)
• except where it is an input
service for further supply of
works contract service
Goods or Services or Both
• When it is received by a taxable
person for construction of an
immovable property on his
own account (other than plant
and machinery)
• even when used in course or
furtherance of business
Explanation to Section 17(5): the expression “Construction” includes re-construction,
renovation, additions or alterations or repairs to the extent of capitalization, to the
said immovable property.
EXCLUSIONS-ITC
Tax paid under composition levy
Goods or services or both used for personal consumption
Tax paid u/s 74, 129 and 130
Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
Goods or services or both received by a non-resident
taxable person (except import) 74: Tax not paid, short paid,
erroneously refunded, ITC
wrongly availed or utilized by
reason of fraud or any willful
misstatement or suppression
of facts
129: Detention, seizure &
release of goods and
conveyances in transit
130: Confiscation of goods or
conveyances & levy of penalty
EXCLUSIONS-ITC
RETURN &
PAYMENT OF
TAXES
GST RETURN AS PER NATURE OF ASSESSEE
Sl. No. Nature of Assessee GST Return1. Normal Assessee & Casual Taxpayer GSTR-1, GSTR-2, GSTR-3,
GSTR-9
2. Composition Dealer GSTR-4, GSTR-4A, GSTR-9A
3. Non-resident Taxpayer GSTR-5
4. Online Data Base Access or Retrieval
Services
GSTR5A
5. Input Service Distributor GSTR-6, GSTR-6A
6. TDS Deductor GSTR-7, GSTR-7A
7. E-Commerce Operator GSTR-8
8. UIN Holder GSTR-11
Month Due Date
July 25.08.2017 (28.08.2017 for TRAN-1
Cases)
August 20.09.2017
September 20.10.2017
October 20.11.2017
November 20.12.2017
December 20.01.2018
GSTR 3B DATES
Due dates GSTR 1,2 & 3
for the months of August
& September have not
been notified yet
GSTR –DUE DATES
FORM GSTR MONTH DUE DATE
1 JULY ‘2017 10TH Oct, 2017
2 JULY ‘2017 31ST Oct,2017
3 JULY ‘2017 10th Nov,2017
4 JULY-SEPT’2017 15th Nov.2017
5A JULY-SEPT’2017 20th Nov,2017
6 JULY-SEPT’2017 15th Nov,2017
SUMMARY OF GST RETURNS
Monthly Returns
Annual Returns
Miscellaneous Returns
SUMMARY OF GST RETURNS
Monthly Return
Normal Assessee
GSTR-1(10th of
Next Month)
GSTR-2(15th of
Next Month)
GSTR-3(20th of
Next Month)
Other Assessee
Composition Dealer
GSTR-4 & 4A
(18th of Next
Quarter)
ISD
GSTR-6 & 6A
(13th of Next
Month)
Non-resident
GSTR-5 (20th of
Next Month & within 7
Days of Expiry of
RC)
ODAR
GSTR -5A
( 20thof Next
Month
TDS Deductor
GSTR-7 & 7A
(10th of Next
Month)
E-Commerce Operator
GSTR-8(10th of
Next Month)
SUMMARY OF GST RETURNS
Annual Return
Normal Taxable person
GSTR-9 (31st Dec of Next Year)
Composite Dealer
GSTR-9A (31st Dec of Next Year)
Audit Report
GSTR-9C (with Annual Return if Total
Turnover > 2 Cr. in the FY
SUMMARY OF GST RETURNS
Miscellaneous Return
Notice for Not Filing Return
GSTR-3A
Final Return
GSTR-10 (within 3 months of Cancellation
Order)
Inward Supplies by UIN Holder
GSTR-11 (28th
of Next Month)
GSP’s
PCT-1 to PCT-7
GSTR
NIL RETURN
Even in the case of no
transactions, nil return are required to be filed for GSTR-3 & GSTR-4.
Date of Payment of
Tax
Last date of payment of tax is due
date of furnishing of
returns
Rectification of Return
Returns cannot be revised however the returns can be rectified on
earliest of the following :
1. Due date of filing of return for the month of:
- September
- Second Quarter
following the end of the financial year.
2. Actual Date of furnishing Annual Return
Return of a tax period cannot be
filed if return for any of the previous tax period has not been furnished
DERETMINATION OF NET TAX LIABILITY
Output Tax
Input Tax
Net Tax Liability
GSTR 1
GSTR 2
GSTR 3
GSTR-1,2,3
GSTR-1
B2B
B2C
B2BForm GSTR-1
GSTIN/
UIN
No.
Date
Valu
e
Goods/ S
erv
ices
HS
N/ S
AC
Taxable
valu
e
Rate
Am
t
Rate
Am
t
Rate
Am
t
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
POS
(only if
different
from the
location
of
recipient)
Indicate if
supply
attracts
reverse
charge
Tax on this
Invoice is paid
under
provisional
assessment
Taxable outward supplies to a registered person SGSTCGSTIGSTInvoice
B2C
INTERSTATE
1. 0< Invoice ≤ 2.5 Lacs
Consolidated Data
a. State-wise
b. Rate-wise
2. Invoice > 2.5 lacs
Invoice wise details
INTRASTATE
Consolidate for all invoices irrespective of the invoice value on the basis of each rate of tax.
SUMMARY OF GST RETURNS
GSTR-1
To be filed by
10th of next
month
Cannot be filed
between 11th to
15th
On the basis of
GSTR-2
GSTR-1A
PART A of GSTR-
2A
Statement of
Outward Supplies
Form GSTR-4A
Return for
composition dealer
Form GSTR 6A
Return of ISD
ACCEP
T OR
REJECT
After 15th on or before 17th
GSTR-2
Auto Populated
Information
To be furnished Separately
Supply under Reverse Charge
IGST on Imports
GSTR-2 DETAILS AUTOPOPULATED
•Details of outward supplies by supplier in GSTR-1
PART A OF FORM GSTR 2A
•Details of invoices by ISD in GSTR-6
PART B OF FORM GSTR 2A
•Details of TDS by deductor in GSTR-7
PART C OF FORM GSTR 2A
•Details of TCS by Collector in GSTR-8
PART C OF FORM GSTR 2A
To be included in FORM GSTR-2
INPUT TO GSTR-2
TO BE FURNISHED SEPARATELY
AUTOPOPULATED
GSTR-2
GSTR-1 & GSTR-5
Same of inward supplies
PART-A
GSTR-2A
GSTR-6
ISD
GSTR-7
TDS
GSTR-8
TCS
PART-C
GSTR-2A
PART-B
GSTR-2A
PART-C
GSTR-2A
GSTR-1,2,3
• Upload details of outward supply on or before 10th of following month
GSTR-1
• Data will be auto populated in 2A of Recipient tax payer
GSTR-2A
• Actions of Accept, Reject or Modify has to be taken
• Additions can be made
• Return needs to be filed after 10th and on or before 15th of following month
GSTR-2
• Rejections, modifications and additions in GSTR-2 will be made available to supplier in 1A
• Supplier has to take action by 17th
GSTR-1A• Auto-
populated return will be available for submission along with the payment on 20th of Next Month
GSTR-3
RECENT
DEVELPOMENTS
Threshold is Rs. 1 Crore
• In All States
Threshold is Rs. 1 Crore
• Jammu & Kashmir
• Uttarakhand
Threshold is Rs. 75 Lacs
•Arunachal Pradesh
•Assam
•Manipur
•Meghalaya
•Mizoram
•Nagaland
•Sikkim
•Tripura
•Himachal Pradesh
COMPOSITION SCHEME-INCREASE IN THRESHOLD LIMIT
COMPOSITION SCHEME-TIME LIMIT EXTENDED
Migrated New Taxpayer
Option
available to
Option is available up to 31.03.2018
as per CGST Notification No. 45/2017
dtd. 13.10.2017.
Relevant Forms:
CMP-02 till 31.03.2018
GST ITC-03 within 90 days
of applicability of Sec 10
INVOICE CUM BILL OF SUPPLY
Invoice Rules are modified for certain Registered
Persons
Invoice-cum-Bill of Supply can be issued for taxable
and exempted supply
New Rule 46A vide CGST Notification No. 45/2017
dtd. 13.10.2017
REGISTRATION-SUPPLY OF INTERSTATE SERVICES
Service Providers making Inter-State supply of services
Annual Aggregate Turnover is Rs. 20 Lacs (Rs. 10 Lacs in special category states except J & K)
Registration is not mandatory
REVERSE CHARGE-SUSPENDED
Reverse Charge
Normal U/S 9(3) (like GTA)
Still Applicable (No Change)
Supply to Unregistered Persons U/S
9(4)
Suspended till 31.03.2018.
As per CGST Rate Notification No. 38/2017
dtd. 13.10.2017 limit of Rs. 5,000/- is
removed for intra-state supplies from un-
registered persons [Refer Original
Notification No. 8/2017] and the said
exemption shall apply till 31.03.2018
As per IGST Rate Notification No. 32/2017
dtd. 13.10.2017, inter-state supply from un-
registered persons are exempt and the said
exemption shall apply till 31.03.2018
NO GST ON ADAVANCE
For Registered Taxpayers having Annual Aggregate Turnover up to Rs. 1.5 Crores in preceding FY or for new registration likely turnover is less than Rs.
1.5 Crores
No requirement to pay GST on
advance receipts
GST will be paid only at the time of
issue of invoice
CGST Notification No. 40/2017 dtd.
13.10.2017
TDS AND TCS-POSPOTNED
Registration and Operationalization of
TDS/TCS provisions shall be postponed
till 31st March, 2018