WHAT IS GST?

Goods and Service Tax (GST) is a

comprehensive tax levy on manufacture,

sale and consumption of goods and

services at a national level under which

no distinction is made between goods

and services for levying of tax.

It has been implemented from 1st July

2017.

Removal of Multiple taxes

GST

VAT/CST

Other

Indirect

taxes

Excise Duty Service Tax

Octroi/Entry

Tax

Some of the indirect taxes on supply of

goods/services, that have been replaced by

GST are mentioned here.

This means there is 1 single tax.

Dual GST Model

Intra-State supply

The GST has two components – One levied by

the Centre i.e. Central GST (CGST) and the

other levied by the State/ Union Territory i.e.

State GST (SGST)/ UTGST. Both Centre and

States will simultaneously levy GST

Inter-State supply

In case of inter-State transactions, the Centre

would levy and collect the Integrated Goods

and Services Tax (IGST) which is roughly equal

to CGST plus SGST

Input Tax Credit

While calculating tax payable, sellers can take credit of input tax paid as per below:

Input tax credit can only be taken by dealers:

1. Who are registered under GST

2. Who have paid such taxes on their purchases.

*SGST credit can only be utilized if output SGST is of same state

• First use IGST credit

• Secondly use CGST credit

• Thirdly use SGST credit

To Pay

IGST

• First use CGST credit

• Secondly use IGST credit

• SGST credit not allowed

To Pay

CGST

• First use SGST credit*

• Secondly use IGST credit

• CGST credit not allowed

To Pay

SGST

Who needs to register?

Any dealer selling goods/services through an e-commerce

portal would mandatorily be required to get registered

under GST irrespective of threshold specified by the

Government.

Registration Procedure

Already registered taxpayers under Centre/State/UT

legislations:

For such taxpayers, 30th April was the last date to migrate to

GST. By now, they should be having a provisional certificate

downloaded from the GST website:

https://www.gst.gov.in/

New Taxpayers:

The rules and process of registration for new taxpayers can

be found in :

https://www.aces.gov.in/Documents/draft-formats-under-

registration-rules.pdf

GST Returns to be filed

Forms Description Due Date

Due date of 1st

Return under

GST

GSTR-1Details of outward supplies of taxable goods and/or

services effected

10th of the next

month10th August ‘17

GSTR-2Details of inward supplies of taxable goods and/or

services effected claiming input tax credit.

15th of the next

month15th August ’17

GSTR-3

Monthly return on the basis of finalization of details of

of outward supplies and inward supplies along with

the payment of amount of tax

20th of the next

month20th August ’17

GSTR-6 Return for Input Service Distributor13th of the next

month13th August ’17

GSTR-9 Annual Return31st December of

next financial year31st December ‘18

How merchants benefit with GST - I

Merchant receives

Rs.943 from

Shopclues after

deducting

commission.

Customer pays

Rs.1120 to

Shopclues

Merchant Customer

Pay GST of Rs.93 to Government

on income received from Customer

after deducting GST Credit.

Use GST credit of Rs.27 which

is included in commission

deducted by Shopclues.

Value of Good sold to customer : Rs.1000

GST @ 12% charged on Bill : Rs.120

SF & FF Fees paid to Shopclues: Rs.150

GST @ 18% charged on Bill : Rs.27

Customer InvoiceValue of goods Rs.1000Add: GST Rs. 120Total Rs.1120

Merchant InvoiceCommission Rs.150Add: GST Rs.27Total Rs.177

Tax Calculation

GST on Income Rs.120

Less: GST Credit Rs.27

Net tax payable Rs.93

How merchants benefit with GST - II

Particulars Current System GST System

Value of Goods sold to Customer 1,000 1,000

Add : VAT 120 -

GST 120

Total Receivable from Customer 1,120 1,120

Less: Commission paid to Shopclues-150 -150

Less : Service Tax/GST -23 -27

What Merchant receives from Shopclues947 943

Less : Tax to be paid -120 -93

Net Income 827 850

Net Benefit 23

Net Tax CalculationGST Payable Rs.120(-) Input GST Rs.27Net GST Payable Rs.93

Only a registered merchant can take benefit of the GST credit paid

on it’s purchases.

TCS and the credit for TCS

It has been proposed that under the GST Law, an E-

commerce operator is required to deduct 1% as tax

collected at source (TCS) from the amount payable to

any Merchant.

Merchants will be able to claim credit for such amount

and utilize it for paying off their output GST.

It is important to note that the credit will only be

available to Merchants who are registered under GST.

Please note official GSTIN of ShopClues

Name: Clues Network Pvt. Ltd.

GSTIN: 06AAECC3074B1Z6

What do you need to do?

You will be required to take separate registration for each State

from where you are supplying goods. Hence, multiple registrations

with unique GSTIN will be needed for every State, where you have

a pick up location.

Be ready with all the documents required for GST registration.

Some of the documents required are as below:

1. PAN Card

2. Proof of Place of Business

3. Photograph

4. Bank Account proof

Thank You!

Annexure: Central Government notified (28th June, 2017) rate of Integrated Goods and Services Tax (IGST)

S No. IGST Rate Schedule

1 5% In respect of goods specified in Schedule I

2 12% In respect of goods specified in Schedule II

3 18% In respect of goods specified in Schedule III

4 28% In respect of goods specified in Schedule IV

5 3% In respect of goods specified in Schedule V

6 0.25% In respect of goods specified in Schedule VI