Workshop on GST - Advantage Austria...• GST is applicable on the supply of goods or services • It is a destination based consumption tax • It is a dual GST with the Centre and

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CONFIDENTIAL - RESTRICTED

Workshop on GSTFor Austrian Trade CommissionMember Companies

By Nidhi Goyal | October 05, 2017


CONFIDENTIAL - RESTRICTED2

Contents

Sr. No. Contents Pg. No.

1 General overview of GST 03

2 Supply and Reverse Charge 22

3 Place and Time of supply 26

4 Input tax Credit 38

5 Imports, Exports and refunds 40

6 Invoices, compliances and records / ledgers 49

7 Two Sectors 70

8 Impact Areas 72



About GST



What is GST

One Tax For

Manufacturing

Trading

Services



GST Regime

5

State TaxesCentral Taxes

Excise Duty /

Countervailing

Service Tax

Central Sales Tax

Surcharge

and Cess

VAT

Entertainment

Tax

Luxury Tax

Entry Tax &

Octroi

Purchase Tax

Taxes on

Lottery

Taxes to be subsumed

under GST

Taxes not subsumed

under GST

Security

Trans. Tax

Basic Custom

Duty

Export Duty

Property Tax

Stamp Duty

Electricity

Duty

Tax Structure under GST

Tax on items

containing

alcohol Tax on

petroleum

products

Special

Additional Duty

of Customs



Impact of Tax on Manufacturing Business

Local Procurement

Taxes Goods Services

Earlier

Taxes

Excise Duty, VAT Service Tax

GST CGST, SGST CGST, SGST

Inter-State Procurement


Earlier

Taxes

Excise Duty, CST Service Tax

GST IGST IGST

Import


Earlier

Taxes

BCD, CVD, SAD Service Tax

(Reverse Charge)

GST BCD, IGST IGST

Customer

Taxes Same State Different State

Earlier

Taxes

Excise Duty,

VAT

Excise Duty, CST

GST CGST, SGST IGST

Creditable Taxes

Non Creditable Taxes



Impact of Tax on Trading Business

Local Procurement


Earlier

Taxes

Excise Duty, VAT Service Tax

GST CGST, SGST CGST, SGST

Inter-State Procurement


Earlier

Taxes

Excise Duty, CST Service Tax

GST IGST IGST

Import


Earlier

Taxes

BCD, CVD, SAD Service Tax

(Reverse Charge)

GST BCD, IGST IGST

Customer

Taxes Same State Different State

Earlier

Taxes

VAT CST

GST CGST, SGST IGST

Creditable Taxes

Non Creditable Taxes



Present vs. Pre GST – Manufacturing & Trading of

goods within same State

Steps Transactions Particulars

Present Scenario GST Regime

Value Tax

Cenvat

Credit

Tax after

cenvat credit Value Tax

Cenvat

Credit

Tax after cenvat

credit

1 Manufacturer – 1 (Delhi)

Manufacture of goods

in Delhi

Sale value of Goods 1,000 1,000

Excise Duty/CGST

@10% 100 100 - 100 100 100 - 100

1,100

VAT/SGST @ 10% 110 110 - 110 100 100 - 100

1,210 1,200

2 Manufacturer – 2 (Delhi)

Purchase of goods

within Delhi from

manufacturer - 1 and

sold to dealer in Delhi

Cost of purchase 1,000 1,000

Value addition 100 100

Total 1,100 1,100

Sale value of goods 1,300 1,300

Excise Duty/CGST

@10% 130 130 100 30 130 130 100 30

1,430

VAT/SGST @ 10% 143 143 110 33 130 130 100 30

1,573 1,560

3 Dealer (Delhi)

Purchase of goods within

Delhi from manufacturer -

2 and sold to consumer in

Delhi


Packing cost 20 20

Total 1,450 1,320


VAT/SGST @ 10% 150 150 143 7 137 137 130 7

CGST @10% - - - 137 137 130 7

Value to Consumer 1,650 280 1,644 274

Excise Duty/CGST/IGST 130 137

VAT/SGST 150 137

Total taxes 280 274



Present vs. Pre GST –

Manufacturing & Trading of Goods between States



Value Tax

Cenvat

Credit Cenvat credit c/f

Tax after cenvat

credit Value Tax

Cenvat

Credit

Tax after cenvat

credit

1 Manufacturer - 1 (Delhi)

Manufacture of goods in

Delhi and sold to

manufacture-2 within

Delhi

Sale value of Goods 1,000 1,000

Excise Duty/CGST @10% 100 100 - - 100 100 100 - 100

1,100

VAT/SGST @ 10% 110 110 - - 110 100 100 - 100

1,210 1,200

2 Manufacturer - 2 (Delhi)

Purchase of goods from

Delhi manufacturer - 1

and sold to AP dealer


Value addition 100 100

Total 1,100 1,100


Excise Duty@10%/IGST @20% 130 130 100 - 30 260 260 200 60

1,430 1560

CST @ 2% 29 29 29 - - - - -

VAT credit available - - 81 -

1,459 1,560

3 Dealer (AP)

Purchase of goods from

Delhi manufacturer - 2

and sold to consumer in

AP


Packing cost 20 20

Entry Tax* @ 1% 15 15 - 15 -

Total 1,465 1,320


VAT/SGST @ 10% 151 151 - - 151 137 137 123 14

CGST @10% - - - - 137 137 137 -

Value to Consumer 1,666 81 406 1,644 274

Excise Duty/CGST/IGST 130 160

VAT/CST/Entry Tax/SGST 276 114

Total Taxes 406 274

* Entry tax veries from 0.5% to 14.5%



Present vs. Pre GST – Supply of services



Value Tax Cenvat Credit

Tax after cenvat

credit Value Tax

Cenvat

Credit

Tax after cenvat

credit

1 Service Provider – 1 (Delhi)

Service provided in Delhi

Sale value of service 1,000 1,000

Service Tax @ 15%/CGST

@10% 150 150 - 150 100 100 - 100

SGST @ 10% 100 100 100

1,150 1,200

2Service Provider – 2 (Delhi)

Service provided in Delhi

Cost of service 1,000 1,000


Service Tax @ 15%/CGST

@10% 195 195 150 45 130 130 100 30

SGST @10% - - - 130 130 100 30

Value to Consumer 1,495 1,560

3Service Receiver (Delhi)

Service provided to

consumer in Delhi

Cost of service 1,300 1,300


Service Tax @ 15%/ CGST

@ 10% 240 240 195 45 160 160 130 30

SGST @10% - - - 160 160 130 30

Value to Consumer 1,840 240 1,920 320

Service Tax/CGST/IGST 240 160

SGST - 160

Total Taxes 240 320



Pre GST Regime

Particulars Duty rate Input Value addition Product cost

Import Local

Input cost 70.00 15.00 15.00 100.00

Basic Customs Duty 10% 7.00

Additional Customs Duty 12.50% 9.63

Education cess 3.0% 2.60

Special Additional Duty 4.0% 3.57

Excise Duty 12.50% 1.87

VAT 12.50% 1.87

Total Cost of Production 93.11 16.88 16.87 126.86

Tax on Finished Goods

Excise Duty 12.50% 15.86

Cenvat Credit (17.61)

VAT / CST 12.50% 17.61

Credit for VAT (1.87)

Product cost 140.85



GST Regime

Particulars Duty rate Input Value addition Product cost

Import Local

Input cost 70.00 15.00 15.00 100.00

Basic Customs Duty 10% 7.00

IGST 18% 13.86

CGST 9% 1.35

SGST 9% 1.35

Total Cost of Production 90.86 16.35 16.35 123.56

Tax on Finished Goods

IGST 18% 22.24

ITC (16.56)

Product cost 128.80



Job work vs. Manufacturing

Job Work

• “Job work” means any treatment or process undertaken by a person on goods belonging to another registered

person and the expression “job worker” shall be construed accordingly

• The principal is eligible to avail the input tax credit on inputs sent to job worker for job work. The principal has

to reverse the credit along with interest on inputs which have not been received back from the job worker

within one year but he can reclaim the credit on receipt of inputs

• Where capital goods are sent to the job worker which have not been received back within 3 years from the

date of being sent then the principal has to pay an amount equal to credit taken on such capital goods along

with interest. But he can reclaim the credit on receipt of inputs

Manufacturing Services

• “Manufacturer” means processing of raw material or inputs in any manner that results in emergence of a new

product having a distinct name, character and use and the term “manufacturer” shall be construed accordingly

• Manufacturing services are provided on physical inputs (goods) owned by others

• No requirement of returning inputs or capital goods to the principal by manufacturer

http://taxheal.com/model-gst-law-released-by-govt-2.html



Salient features of GST

• GST is applicable on the supply of goods or services

• It is a destination based consumption tax

• It is a dual GST with the Centre and States simultaneously levying it on a

common tax base

• GST is levied by the Centre, called Central GST (CGST) and levied by

States called State GST (SGST)

• GST is applicable on all goods other than alcoholic liquor for human

consumption and five petroleum products

• GST is applicable on all services barring a few as specified




• Tobacco and tobacco products are subject to GST. In addition, the Centre

could levy excise duty on these products

• CGST and SGST is levied at rates to be jointly followed by the Centre

and States

• Exemption list is common for the Centre and the States




• Tax payers with an aggregate turnover in a financial year up to [Rs.20 lakhs]

would be exempt from tax. For NE States and Sikkim, the threshold

exemption shall be [Rs. 10 lakhs]

• Tax payers making inter-State supplies or paying tax on reverse charge

basis are not eligible for threshold exemption

• HSN and SAC code to be used for classifying goods and services

• Exports shall be treated as zero-rated supply. No tax is payable on exports

but Input tax credit (ITC) related to the supply shall be refunded to exporters

• Import of goods/services is subject to IGST in addition to basic custom duty

and cesses

• IGST paid is available as ITC for further transactions



GST Registration

Compulsory Registration for

Each State where business

situated

Option to take multiple registration for each business vertical within the same State

Registration



GST Rates structures – goods and services

Category of

Goods/

Services

Tax Rate Goods & Services

Exempt 0 Basic Necessity e.g. Food Grains

Lower 5% Mass consumption items like spices, mustard oil, tea, coffee

Standard 1 12% Processed Foods, computers, mobile phones

Standard 2 18% Soaps, oil, Toothpaste

High Rate 28% Consumer goods like refrigerator, washing machine, small cars

High + Cess 28% + Cess Luxury items, sin & de-merit goods like luxury cars, tobacco,

ServicesNil, 5%, 8%,

12%, 18%Services of any nature (except exempted category)

• CERTAIN SERVICES ARE COVERED UNDER

REVERSE CHARGE WHERE RECIPIENT OF

SERVICES ARE LIABLE TO PAY GST

• RECIPIENT IS ALSO LIABLE TO DEPOSIT GST

ON RECEIVING SERVICES FROM

UNREGISTERED PERSON

• CENTRAL GOODS AND SERVICES TAX ACT

• INTEGRATED GOODS AND SERVICES TAX ACT

• GOODS & SERVICES TAX (COMPENSATION TO STATES)

ACT

• STATE GOODS & SERVICES TAX ACT (FOR EACH

STATE)

• U.T. GOODS & SERVICES TAX ACT (FOR EACH U.T.)

• RULES



GST Structure

Goods supplied

or services provided

Intra State Supply

(within same state)

CGST

(Central GST)

Input CGST against

CGST

IGST

SGST/UTGST

(State GST/ Union Territory GST)

Input SGST/ UTGST against

SGST/ UTGST

IGST

Inter State Supply

(outside the state or between two or

more states)

IGST

(Integrated GST)

Input IGST against

IGST

CGST

SGST/ UTGST

supply of goods/services

where the location of

supplier & place of supply

are in same state

supply of goods/services

where the location of

supplier & place of supply

are in diff. states



GST Composition Scheme

Composition Scheme

• Small taxpayers with an aggregate turnover in a financial year up to [Rs. 75 lakhs] is

eligible for composition levy scheme [Rs. 50 lakhs for special category states]

• Under the aforesaid scheme, a taxpayer is liable to tax as a percentage of his

turnover during the year without the benefit of input tax credit (ITC)

• Tax payers making inter-State supplies or paying tax on reverse charge basis shall

not be eligible for composition scheme

• Supplier of Services are not eligible for Composition scheme (except in case of

supplies referred to in clause (b) of paragraph 6 of Schedule II)

• Supplier engaged in making supply through electronic commerce operator not eligible

for composition scheme

• Supplier is not engaged in making supply of goods which are not taxable

Tax rates

• 2% of turnover in case of manufacturing

• 5% of turnover of supplies referred to in clause(b) of paragraph 6 of Schedule II

• 1% in case of other suppliers



Applicability – Taxable person

Taxable Person means a person who is registered or liable to be registered under

section 22 or section 24 of the Act

Section 22 and 24 provides for the persons who are required to be registered and

considered as a taxable person:

− Person with an aggregate turnover of more than INR 20,00,000 in a financial year (INR

10,00,000 for states specified in sub-clause (g) of clause (4) of Article 279A of the Constitution)

− Persons involved in any inter-state taxable supply

− Persons required to pay tax under reverse charge

− Non-resident taxable person

− Input service distributor

− Electronic commerce operator

− Person supplying online information and database access/ retrieval services from outside India

to a person in India, other than a registered taxable person

Section 23 : Exempted category

States as per Article 279A (4)(g) of the Constitution

• Arunachal Pradesh

• Assam

• J&K

• Manipur

• Meghalaya

• Mizoram



Supply under GST

Supply Supplies for consideration

Supplies without consideration (Schedule I)

Import of services

Deemed supply of goods/ deemed supply of services (Schedule II)

Composite supply or mixed supply

Broad Category GST

Law

Particulars/ Examples

Supply for Consideration Taxable All forms of supply of goods and/or services such as sale, transfer, barter, exchange,

license, rental, lease or disposal made or agreed to be made for a consideration by a

person in the course or furtherance of business (Section 3(1)(a))

Supply without

Consideration

Taxable • Inter branch adjustment for services availed at Head Office

• Supply between principal and agent

• Supply between related persons

Deemed supply of goods/

services

Taxable Deemed Services:

• Works Contract

• Services involving supply of foods/ drinks

• Any transfer of goods or of right in goods or of undivided share in goods without the

transfer of title thereof

• Refrain from an act, or to tolerate an act or a situation, or to do an act

Deemed Goods: Supply of goods by any unincorporated association or body of persons

to a member

Import of services Taxable whether or not for a consideration and whether or not in the course or furtherance of

business

Composite Supply or

Mixed Supply

Taxable Explained in the subsequent slide



Supply under GST

Broad Category Sub-section of

Section 7

Particulars/ Examples

Supply of goods v/s

Supply of services1

Schedule II (Matters to be treated as supply of goods or services), in respect

of matters mentioned therein, shall apply for determining what is, or is to be

treated as either supply of goods or supply of services.

Principal - Agent

Transaction1

Where a person acting as an agent who, for an agreed commission or

brokerage, either supplies or receives any goods and/or services on behalf of

any principal, the transaction between such principal and agent shall be

deemed to be a supply.

Power(s) of

Central/State

government

3

Subject to sub-section 2, the Central or a State Government may, upon

recommendation of the GST council, specify, by notification, the transactions

that are to be treated as:-

(i) a supply of goods and not as a supply of services; or

(ii) a supply of services and not as a supply of goods; or

(iii) neither a supply of goods nor a supply of services.



Transactions not treated as supply of goods & services

− Services provided by an employee to the employer

− Services by any Court or Tribunal

− Services of funeral, burial, crematorium or mortuary including transportation of the deceased

− Sale of land and sale of building where the entire consideration has been received after

completion certificate is issued or after its first occupation

− Actionable claims, other than lottery, betting and gambling

− The functions performed by the Members of Parliament/ State Legislature/ Panchayats/

Municipalities/ other local authorities

− The duties performed by any person as a Chairperson/ Member/ Director in a body established

by the Central/ State Government/ local authority and who is not deemed as an employee

before the commencement of this clause



Composite / Mixed Supply

A composite supply means a supply made by a taxable person to a recipient comprising two or

more supplies of goods or services or any combination thereof, which are naturally bundled and

supplied in conjunction with each other in the ordinary course of business, one of which is a

principal supply.

For instance, a travel ticket from Mumbai to Delhi may include service of food being served on

board, free insurance, and the use of airport lounge. In this case, the transport of passenger,

constitutes the pre-dominant element of the composite supply, and is treated as the principal

supply and all other supplies are ancillary.

The GST Law lays down the tax liability on a composite or mixed supply in the following manner.

1. Composite Supply comprising two or more supplies one of which, is a principal supply, shall be

treated as supply of such principal supply.

2. Mixed Supply comprising two or more supplies, shall be treated as supply of that particular

supply which attracts the highest rate of tax.



Place of Supply for Goods

Situation GST law

When movement of goods involved Location of goods at the time movement terminates for

delivery

When movement of goods not involved Location of goods at the time of delivery

Where the goods are delivered by the supplier to a

recipient or any other person, on the direction of a

third person, whether acting as an agent or

otherwise, before or during movement of goods (Bill

to ship to Model or EI-EII Model)

Place of supply of such goods shall be Principal place of

business of third person on whose direction goods were

supplied to another person

Goods supplied on board a conveyance like aircraft,

train, vessel or motor vehicle

Place where goods taken on board

When goods assembled or installed at site Place of installation or assembly

Import of goods into India Location of the importer

Export of goods outside India Location outside India



Place of supply for services

Type of services GST law

General Service B2B: Location of registered person

B2C: Location of the recipient where the address on record exits, and The

location of the supplier of services in other cases

Supply of services in relation to immovable

property

Location at which immovable property is situated

Where property/ vessel located in more than on state: proportionate

allocation amongst states as per the contract or on reasonable basis

Supply of Restaurant services, catering

services, personal grooming, fitness etc.

Location where the services are actually performed

Supply of services in relation to training

and performance appraisal

B2B: Location of registered person receiving the service

B2C: Location where the services are actually performed

Supply of services related to admission to

event or amusement park or any other

place

B2B: Place where the event is actually held

B2C: where the park/ other place is located

Supply of services by way of organization

of event


B2C: the place where event actually held

Where event is held in more than on state: proportionate allocation

amongst states as per the contract or on reasonable basis

Location of supplier or recipient is in India





Supply of services by way of

transportation of goods including by

mail or courier


B2C: Location at which such goods are handed over for their transportation

Supply of passenger transportation

service


B2C: Place where the passenger embarks on the conveyance for a continuous

journey

Supply of banking and other financial

services

Location of the recipient of services on the records of the supplier of services

Supply of insurance services B2B: Location of registered person receiving the service

B2C: Location of the recipient of services on the records of the supplier of

services

Supply of telecommunication services In case of services by fixed communication line, leased circuit, cable, dish

antenna: location where the connection is installed

Post-paid connection : location of billing address of recipient

Pre-paid connection through selling agent/ distributor, etc.: location of

address of selling agent/ distributor, etc. as per records

Pre-paid connection sold by any other person to final subscriber : location

where such pre-payment is received/ voucher is sold

Recharge through electronic mode of payment : location of recipient of

services on record

Location of supplier or recipient is in India





General Service Location of recipient of service

In case recipient location not available, location of supplier of service

Supply of services in relation to immovable

property

Location at which immovable property is situated

Service supplied at more than one location: place of supply shall be the

location in the taxable territory where the greatest proportion of the service

is provided

1. Supply of services in respect of goods

that are required to be made physically

available by the recipient of service to

the supplier of Service

2. services supplied to an individual, which

require the physical presence of the

receiver

Location where the services are actually performed



is provided

Supply of services related to admission to

event or entertainment event or conference,

etc.

Place where the event is actually held



is provided

Location of supplier or recipient is outside India





Special Cases:

1. Banking Company/ financial institution/

non-banking financial company

2. Intermediary services

3. Service of hiring means of transport

other than aircrafts and vessels

Location of supplier of service

Supply of services of transportation of

goods

Place of destination of goods

Passenger transport services Place where passenger embarks on the conveyance for a continuous

journey

Supply of services provided on board a

conveyance during the course of a

passenger transport operation

Place of supply shall be the first scheduled point of departure of that

conveyance for the journey

Location of supplier or recipient is outside India



Valuation of taxable supplies of goods and services

Value of supply shall be ‘transaction value’ where supplier and recipient are unrelated and price is

the sole consideration

Transaction value shall include:

− Any amount paid by recipient instead of supplier and value not included in price

− Taxes, duties, cesses, fees and charges other than GST

− Incidental costs/ expenses (such as commission, packing, etc.)

− Interest or late fee or penalty for delayed payment of consideration

− Subsidies directly linked to price

Exclusions:

- Subsidies given by Central/ State government

- Discount given before or at the time of the supply provided duly recorded in the invoice

- Discount given after the supply provided

- such discount is established from agreement and linked to relevant invoices; and

- input tax credit has been reversed by the recipient of the supply as is attributable to the discount

Where value of supply cannot be determined according to above provision then it shall be

determined according to Determination of Value of Supply rules



Definition of related person

The term “related person” has been defined under GST Law vide section 2(82) as under

(a) They are officers or directors of one another's businesses;

(b) They are legally recognized partners in business;

(c) They are employer and employee;

(d) Any person directly or indirectly owns, controls or holds five per cent or more of the outstanding

voting stock or shares of both of them;

(e) One of them directly or indirectly controls the other;

(f) Both of them are directly or indirectly controlled by a third person;

(g) Together they directly or indirectly control a third person; or

(h) They are members of the same family;

The term “person” also includes legal persons

Persons who are associated in the business of one another in that one is the sole agent or sole

distributor or sole concessionaire, howsoever described, of the other, shall be deemed to be related



TDS Provisions

Tax Deducted at Source

• Following persons are required to deduct tax at source @ 1% on credit or payment made to supplier

of goods and/or services.

− Department or establishment of Central or State Govt.

− Local authority

− Government agencies

− Such person or category of person as may be notified by the Central or State Government

i. an authority or a board or any other body, set up by an Act of Parliament or a State Legislature; or

ii. established by any Government, with fifty-one percent or more participation by way of equity or control, to

carry out any function;

iii. society established by the Central Government or the State Government or a Local Authority under the

Societies Registration Act, 1860;

iv. public sector undertakings

• The above provision will be applicable when the value of supply under contract exceeds Rs. 5 lacs.

For TDS, only value of supply shall be considered excluding the tax shown in invoice

• The amount so deducted to be deposited in Government account within 10 days from the end of the

month in which it is deducted

• Deductor to issue certificate to the deductee mentioning the contract value, rate and amount of tax

deducted and paid

• Deductee shall take credit of TDS in Electronic Cash Ledger



TCS Provisions

Collection of Tax at Source

• Every electronic commerce operator not being agent, shall collect 1% of the net

value of taxable supplies, where the consideration for such supplies is collected by

operator

“ Net value of taxable supplies“ means aggregate taxable value of goods or services

other than services notified in Section 8[4], made during any month by registered

taxable person, reduced by aggregate of taxable supplies return to the supplier during

the said month

• Amount collected above shall be deposited in Government account within 10 days

from the end of the month in which it is deducted

• Supplier shall take credit of TCS collected in his Electronic Cash Ledger

Direct Sales Model (Titan, Nike), Marketplace Model (ebay, Naaptol), Managed

Marketplace Model (Amazon India), Fulfillment Model (SnapDeal), Inventory Model

(Jabong), Hybrid Model (Myntra), Aggregators (Uber, Ola and Oyo Rooms) – Covered

under Levy of GST under Section 9 (5) of the Act – reverse charge



GST under Reverse Charge

SECTION PARTICULARS

9(3) of CGST Notified Categories

• Services Provided by Goods Transport Agency

• Online Information and Database Access and Retrieval (OIDAR) Services

• Services Provided by an Individual Advocate or Firm of Advocates

• Arbitral Tribunal Services

• Sponsorship Services

• Services Provided by Government of Local Authority

• Services Provided By a Director to Company

• Transfer or permitting the use or enjoyment of a copyright relating to original literary,

dramatic, musical or artistic works

• Radio taxi or Passenger Transport Services provided through ECO

• Services provided or agreed to be provided by an insurance agent to any person carrying

on insurance business

• Services by way of transportation of goods by a vessel from a place outside India up to the

customs station of clearance in India

• Services provided or agreed to be provided by a recovery agent to a banking company or a

financial institution or a non-banking financial company

9(4) of CGST • Taxable supplies by an unregistered person to a registered person

• However, exemption is provided where aggregate value of such supplies received by the

registered person from any or all the unregistered suppliers, does not exceed %s. 5,000/-

in a day. Similar exemption is not provided under the Integrated Tax Act.

21 of IGST • Import of Services



Tax Liability arises at the time of supply

S. No. Situation GST law

1 General Rule Earliest of the following:

1. Date of invoice/ last date on which he is required

to issue invoice

2. Date of receipt of payment

2 Reverse Charge Earliest of the following:

1. Date of receipt of goods

2. Date of payment made

3. Date immediately following 30 days from date of

issue of invoice

Note : Where it is not possible to determine the time of supply under the above clauses, the

time of supply shall be the date of entry in the books of account of the recipient of supply

3 Supply of voucher 1. If supply is identifiable: date of issue of voucher

2. Other case: date of redemption of voucher

4 Time of supply not determinable

under aforesaid cases

1. In case where periodical return has to be filed:

date on which return is to be filed

2. Other case: date on which CGST/SGST is paid

Time of Supply of Goods



Tax Liability arises at the time of supply

Time of Supply of Services

S. No. Situation GST law

1 General Rule Earliest of the following:

1. Date of invoice/ last date on which he is required to

issue invoice

2. Date of receipt of payment

2 Reverse Charge Earliest of the following:

1. Date of payment made

2. Date immediately following 60 days from date of issue

of invoice

Note : Where it is not possible to determine the time of supply under the above clauses, the

time of supply shall be the date of entry in the books of account of the recipient of supply

3 Reverse Charge – associated

enterprises

Earliest of the following:

1. Date of entry in books of account

2. Date of payment

4 Supply of voucher 1. If supply is identifiable: date of issue of voucher

2. Other case: date of redemption of voucher

5 Time of supply not determinable

under aforesaid cases

1. In case where periodical return has to be filed: date on

which return is to be filed

2. Other case: date on which CGST/SGST is paid



Input tax credit

Definition

Inputs/ Input Services • Goods/ Service

• Used or intended to be used

• By a supplier

• In the course or furtherance of business

Capital Goods • Goods, value of which is capitalized

• In books of accounts

• Of the person claiming the credit

• Used or intended to be used

• In the course or furtherance of business

Input Tax Credit (ITC) is available in respect of defined inputs, input services and capital goods

(including GST paid under reverse charge)

Conditions for availing ITC: Valid documents viz. invoice

Taxpayer has received goods and/ or services

ITC only on last lot or instalment

Supplier has actually paid the tax

Buyer has filed the return

Monthly return to be filed within 20 days after the end of such month

Payment to supplier is made within 180 days from invoice date

ITC to be availed on any invoice prior to filing of return for the month of September following end of FY or filing

relevant annual return, whichever is earlier



Input tax credit – Negative list of items

Motor vehicles and other conveyances, except when used for providing specified taxable supplies viz.

transportation of passengers/ goods; imparting training on driving, flying, navigating; supply of such

vehicle;

supply of goods and services, namely,

(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except

where such inward supply of goods or services of a particular category is used by a registered taxable person for

making an outward taxable supply of the same category of goods or services;

(ii) membership of a club, health and fitness centre,

(iii) rent-a-cab, life insurance, health insurance except where the Government notifies the services which are obligatory

for an employer to provide to its employees under any law for the time being in force; and

(iv) travel benefits extended to employees on vacation such as leave or home travel concession.

Works contract services when supplied for construction of immovable property, other than plant &

machinery, except where it is an input service for further supply of works contract;

Goods or services received by a taxable person for construction of immovable property on his own

account, other than plant & machinery, even when used in course or furtherance of business;

Goods and/or services on which tax has been paid under composition scheme;

Goods and/or services used for private or personal consumption, to the extent they are so consumed;

Goods lost, stolen, destroyed, written off, gifted, or free samples;

Any tax paid due to short payment on account of fraud, suppression, mis-declaration, seizure,

detention.



Import of Goods

Indian company importing goods from overseas to pay IGST on the value of the imported goods

(including the basic Customs Duty). IGST can then be claimed as input tax credit

Pre GST Regime (Rs.) GST Regime (Rs.) Comparison

CIF Value plus landing

charges

101 CIF Value plus landing

charges

101

Basic Custom duty 10.10 Basic Custom duty 10.10 No change in basic custom

duty

- - Custom duty cess 0.30 Cess on customs to continue

Countervailing duty 13.89 Integrated GST 5.57 New GST replacing CVD and

SAD

Customs duty cess 0.72 No cess on IGST - No Cess on IGST

Special Additional duty 5.03 No Special Additional duty - No SAD

Total Value 130.74 Total Value 116.97

Effective custom duty

rate

29.74 Effective customs duty rate 15.97



Import of Services

• If an Indian company will have to pay IGST under reverse charge on import of

services from a foreign company

• Online Information and Database Access or Retrieval (‘OIDAR’) services

provided to unregistered recipient in India person through information technology

over internet or electronic network are subject to GST in the hands of non resident

person. Foreign companies can appoint a representative in India for GST

registration, filing GST returns and paying GST

Where the foreign supplier provides services to a registered Indian entity such

recipient would be liable to GST under reverse charge mechanism and undertake

necessary compliances



Non-Resident Taxable Person

Definition

• “Non-Resident taxable person” means a person who occasionally

undertakes transactions involving supply of goods and/or services

whether as principal or agent or in any other capacity but who has no fixed

place of business or residence in India;

(Such taxpayers are typically providing some form of services – consulting,

specialized skills, education, or the like in India)

• Section 24 (Registration Provisions w.r.t Non Resident Taxable person)

a non-resident taxable person shall apply for registration at least five days

prior to the commencement of business

a non-resident taxable person may be granted registration under sub-

section (1) on the basis of any other document as may be prescribed



Export of Services

• GST shall not be charged on goods/services exported from India.

• For claiming nil tax on exports, either a bond or letter of undertaking has to

be submitted to the Jurisdictional Commissioner



Exports- LUT / Bond

Export bonds and letter of undertaking can be submitted to the jurisdictional Deputy Commissioner or

Assistant Commissioner of the concerned jurisdiction. However, once FORM RFD-11 is made live on

the GST Portal, the document can be submitted online

Forms PARTICULARS

Letter of

Undertaking

(LUT)

Following types of persons registered under GST will be allowed to submit a letter of

undertaking and undertake export transactions.

• Status holder as specified in the Foreign Trade Policy; or

• Entities that have received the due foreign inward remittances amounting to a minimum of

10% of the export turnover, which should not be less than Rs. 1 crore, in the preceding

financial year, and he has not been prosecuted for any offence under the Central Goods

and Services Tax Act, 2017 or under any of the existing laws in case where the amount of

tax evaded exceeds Rs. 250 lakhs.

LUT is valid for 12 months from the date of submission. If the exporter fails to comply with the

conditions of the LUT, the privileges could be revoked and the exporter would be required to

furnish a bond

BOND • Entities not eligible to submit LUT would have to furnish an export bond along with bank

guarantee. The bond to cover amount of tax involved in the export based on estimated tax

liability as assessed by the exporter himself.

• Export bond should be furnished on non-judicial stamp paper of the value applicable in

that State

• The value of bank guarantee should normally not exceed 15% of the bond amount.

• However, based on the track record of the exporter, the bank guarantee required to be

submitted with export bond can be waived off by the jurisdictional GST Commissioner



Refund of GST

Particulars Due Date

Export of goods or services (NUE) Refund arising on account of judgment, decree, order

or direction of the Appellate Authority, Appellate

Tribunal or any court

Supplies to SEZs units and developers

(NUE)

Finalisation of provisional assessment

Deemed exports Refund of pre-deposit

Refund of taxes on purchase made by UN or

embassies etc.

Excess payment due to mistake (NUE)

Refund of accumulated Input Tax Credit on

account of inverted duty structure

Refund on account of issuance of refund vouchers for

taxes paid on advances against which, goods or

services have not been supplied (NUE)

Refunds to International tourists of GST paid

on goods in India and carried abroad at the

time of their departure from India

Refund of CGST & SGST paid by treating the supply

as intra State supply which is subsequently held as

inter-State supply and vice versa (NUE)

Every claim for refund is to be filed within 2 years from the relevant date



Refund

• State Tax authorities deal with refund of SGST

• Tax authorities to deal with refund of CGST & IGST

• E-application to be filed within two years from relevant date

• Return itself may be treated as a refund application in specified cases

• On filing of the electronic application, a receipt/ acknowledgement number to

be generated & communicated to the applicant via SMS and email for future

reference

• Preliminary scrutiny within 15 common working days and deficiency, if any, to

be communicated to the applicant

• Provisional sanction of 90% of refund claim on account of zero-rated supplies

within 7 days



Refund

• Refund application found to be complete in all respect to be communicated to

applicant via SMS and e-Mail

• Date of such communication to be considered as the relevant date for

calculation of 60 days

• Refund to be sanctioned within 60 days from the date of the system

generated acknowledgment of refund application

• Interest clause to start automatically once the time limit of 60 days is

breached

• Once sanctioned, the amount of refund would be transferred to the applicant

electronically through NEFT /RTGS/ECS



No Deemed Exports

Deemed Exports

Refers to those

transactions in which

goods supplied do not

leave country, and

payment for such supplies

is received either in Indian

rupees or in free foreign

exchange

• No Terminal excise duty refund since central excise duty is

subsumed under the GST. However, for the items covered under

Schedule four of Central Excise Act, 1944, the TED refund would

be available, provided the items are eligible for supply under the

said category of the deemed exports under chapter 7 of the FTP,

and there is no exemption from payment of excise duty

• The drawback as provided under Chapter 7 would be limited to the

refund of basic custom duty only

Deemed export benefits are presently available to the Manufacturers or Main - Contractors / Sub-

Contractors of a project on the following conditions amongst others:-

Supply made directly to the entities / projects/ Main Contractors listed in Para 7.02 of the FTP.

The recipient of goods does not avail CENVAT Credit



Types of Invoices

Type of Invoices

Tax Invoice

Bill of Supply

Revised Tax Invoice

Credit Note/ Debit Note

Receipt Voucher

Refund Voucher

Payment Voucher

A registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9

i.e. under Reverse charge shall issue a payment voucher at the time of making payment to the

supplier

Purpose

A registered person supplying taxable goods/ services shall issue a tax invoice including in case of

zero rated supplies

A registered person supplying exempted goods or services or both or paying tax under composition

scheme shall issue a bill of supply instead of a tax invoice

Revised tax invoices can be issued by a registered taxable person within one month from issuance

of certificate of registration i.e. GST Registration. It will be issued against the invoice already

issued during the period starting from the effective date of registration till the date of issuance of

certificate of registration to him

Where original tax invoice has been issued and taxable value/GST tax amount in the invoice

exceeds/falls shorter than the actual taxable value/tax amount, in such cases the supplier can

issue debit/credit note

A registered person shall issue a receipt voucher on receipt of advance payment with respect to

any supply of goods or services or both

A registered person who has receipt the advance payment with respect to any supply of goods or

services or both but subsequently no supply is made and no tax invoice is issued then the said

registered person may issue to the person who had made the payment, a refund voucher against

such payment



Format of Tax Invoice

Original/Duplicate

TAX INVOICE

………………………………………………….…………………………………….State: Delhi; State Code : 07PAN: ………………….GSTIN: 07……………………………Tax is payable under reverse charge (Yes/No): No

Company Logo

Bill To: Invoice No.: …../I/2017-18/001 INVOICE DATE: 18.08.2017

…………………………………….State: …………………………………….State Code: 27 PAN: GSTIN:

Remittance Details:Account Name: …………………………. Bank and Address -Account No - ……………………….IFSC Code - …………………………MICR: ………………………..

S. No.Description of Goods or

ServicesSAC Code Quantity Rate

Total Amount (Indian Rupees)

Discount/ Abatement

Taxable Amount(Indian Rupees)

CGST SGST IGSTTotal Amount

(Indian Rupees)Rate Amount Rate Amount Rate Amount

1 Technical services - 9983 - - 100000 - 100000 - - - - 18% 18000 118000

GST 18000

Grand Total 118000

Total Invoice value (in words): Indian Rupees one lakh eighteen thousand only

Payment Terms: Pay amount on receipt of the invoice

For …………………………………………………………

Authorised Signatory



Format of Tax Invoice for Exports

Original/Duplicate/Triplicate

TAX INVOICE……………………………………………………………Ventures Private Limited…………………………………………..Delhi ……………………………., INDIAState: E-Mail:WEBSITE:GSTIN No:CIN :Tax is payable under reverse charge (Yes/No) – No

Global Logo

Consignee (Name of Buyer) Invoice No.: INVOICE DATE:

Name:Address: …………………………………………………………………………………… Dubai UAE

Exporter Reference : ……………………..Country of Origin of Goods : India Country of Final Destination : ……..Terms of Delivery : ……………………………………..Pre-Carriage By : …………………….Place of Receipt by Pre-Carrier: Port of Loading : Final Destination :Terms of Reference : A/C No. : RTGS Code :

Consignee (If other than Consignee)

Name:Address:Name of the Country: Dubai, UAEE-Mail: FAX:DATE:

S. No. Description of Goods HSN Code Contract No. QuantityTotal Net

Weight (MTS)

Total Gross

Weight (MTS)

RateTotal

Amount

Discount/ Abatemen

t

Taxable Amount

CGST SGST IGST

Total Amount Rate Amount Rate Amount Rate Amount

- - - -

Freight ChargesInsurance ChargesGrand TotalAmount of tax subject to reverse charge

Total Invoice value (in words):“SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX" iSUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX p

Terms & Conditions: Signature of Authorised signatory



Delivery Challan

Instead of a tax invoice, a delivery challan is issued for transportation of goods. The following are the instances when

delivery challan can be issued for transportation of goods without an invoice:

• Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not

known.

• Transportation of goods for job work.

• Transportation of goods for reasons other than by way of supply.

• Other supplies as notified by the Board.

• After the goods have been transported using a delivery challan, the supplier is required to issue a tax invoice on

delivery of goods.

Delivery Challan Format

• Delivery challans must be serially numbered not exceeding sixteen characters, in one or multiple series. The

following information must be mentioned in all delivery challan formats:

• Date and number of the delivery challan.

• Name, address and GSTIN of the consigner, if registered.

• Name, address and GSTIN or Unique Identity Number of the consignee, if registered. If unregistered, name,

address and place of supply.

• HSN code for the goods.

• Description of goods.

• Quantity of goods supplied (provisional, where the exact quantity being supplied is not known).

• Taxable value of supply.

• GST tax rate and tax amount broken down as CGST, SGST, IGST and GST Cess – where the transportation is for

supply to the consignee.

• Place of supply, in case of inter-state movement of goods.

• Signature. In case of supply of goods with a taxable value of more than Rs.50,000, a GST E-way bill must be

issued by the supplier.



E-Way Bill

E-Way Bill is a document issued for any transfer of goods of consignment with a value of over

Rs.50,000. Any person having a GST registration and causing movement of goods of

consignment for any of the following reasons is required to generate a EWay Bill:

• In relation to a supply; or

Where taxable person supplies any goods of value of over Rs.50,000

• Reasons other than supply;

Where a taxable person transfers goods from one godown to another and the value of

the consignment is over Rs.50,000

• Due to inward supply from an unregistered person.

• Where a taxable person purchases any goods from an unregistered person and the

value of the consignment is over Rs.50,000

• EWay Bill can be generated by a taxable person registered under GST or a transporter or a

person not registered under GST using GST Common Portal

• Where a transporter is involved in transfer of Goods, then the registered taxable person

must furnish information about the consignment in Part B of FORM GST INS-01 on the

GST Common Portal. Using this information, transporter would generate a EWay Bill in

Part A of FORM GST INS-01. Transporters are allowed to generate and carry E-Way bill

even if the value of the consignment is less than Rs.50,000.



E-Way Bill

• On submission of the necessary documents on the GST Common Portal in FORM

GST INS-01, a unique e-way bill number (EBN) would be provided to the supplier,

the recipient and the transporter

• Any registered taxable person would be intimated about the issue of E-Way Bill or

EBN on the common portal. Registered taxable person would have the option to

accept or reject the consignment covered by the e-way bill. If a taxable person

registered under GST does not communicate acceptance or rejection within 3 days of

the details being made available on the GST Common Portal, then the GST E-Way

Bill would be considered as accepted. Finally, all accepted GST EWay Bill would be

reconciled automatically on GSTR-1 during the filing of monthly GST Returns

• If an unregistered person generated EWay Bill, then the status of the E-Way Bill

would be updated to the registered mobile number or email of the unregistered

person

• Validity of EWay bill is dependent on the distance. For example, a GST e-way bill

generated for transportation of goods for less than 100 kilometers are valid for a period of 1

day

• Once E-Way Bill is generated but goods were not transported or are not being

transported, then the e-way bill can be cancelled through the GST portal or through a

GST Facilitation Centre within 24 hours of generation of the e-way bill

• Similarly, for 100-300 km, validity is 3 days; 300-500 km, validity is 5 days; 500-1000km,

validity is 10 days; more than 1000km, it is 15 days



GST Return filing process

55

GSTR-1 (Statement of

Outward Supplies):

a. This return signifies the tax liability of the supplier for the supplies effected during

the previous month.

b. It needs to be filed by the 10th of every month in relation to supplies effected

during the previous month. For example, a statement of all the outward supplies

made during the month of July 2017 needs to be filed by 10th August, 2017

GSTR-2 (Statement of

Inward Supplies)

a. This return signifies accrual of ITC (Input Tax Credit) from the inputs received

during the previous month

b. It is auto-populated from the GSTR-1s filed by the corresponding suppliers of the

Taxpayer except for a few fields like imports, and purchases from unregistered

suppliers

c. It needs to be filed by the 15th of every month in relation to supplies received

during the previous month. For example, a statement of all the inward supplies

received during the month of July 2017 needs to be filed by 15th August, 2017

GSTR-3: This is a

consolidated return.

It needs to be filed by the

20th of every month.

It consolidates the following details:

a. Outward Supplies (Auto-Populated from GSTR-1)

b. Inward Supplies (Auto-Populated from GSTR-2)

c. ITC availed

d. Tax Payable

e. Tax Paid (Using both Cash and ITC)

NOTE: Payment should be made on or before 20th of every month

Penal Provisions Relating to Returns:

Any registered person who fails to furnish form GSTR-1, GSTR-2, GSTR-3 or Final Return within the due dates, shall be

liable to pay a late fee of Rs. 100 per day, subject to a maximum of Rs. 5,000



GST – Accounts and Records

• Section 35 provides that every registered taxable person shall be required to keep and maintain at his

place of business [including the principal place of business] a true and correct books of account

including the following:

− Production or manufacture of goods

− Inward or outward supply of goods and/or services

− Stock of goods

− Input tax credit availed

− Output tax payable and paid

− such other particulars as may be prescribed in this behalf

• In addition, the rules also provide that the registered person shall keep and maintain records of-− Goods or services imported or exported or

− supplies attracting payment of tax on reverse charge along with the relevant documents, including invoices, bills of

supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way

bills.

• Following accounts and records will have to be maintained by every registered person:a) accounts of stock in respect of goods received and supplied; and such account shall contain particulars of the

opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free

samples and balance of stock including raw materials, finished goods, scrap and wastage thereof

b) a separate account of advances received, paid and adjustments made thereto

c) an account containing the details of tax payable, tax collected and paid, input tax, input tax credit claimed together

with a register of tax invoice, credit note, debit note, delivery challan issued or received during any tax period



GST Accounts and Records

d) names and complete addresses of suppliers from whom goods or services chargeable to tax under the Act, have

been received

e) names and complete addresses of the persons to whom supplies have been made

f) the complete addresses of the premises where the goods are stored including goods stored during transit along with

the particulars of the stock stored therein

g) monthly production accounts showing the quantitative details of raw materials or services used in the manufacture

and quantitative details of the goods so manufactured including the waste and by products thereof

h) accounts showing the quantitative details of goods used in the provision of services, details of input services utilised

and the services supplied

• Every registered taxable person whose turnover during a financial year exceeds the prescribed limit

shall get his accounts audited by a chartered accountant or a cost accountant

• The time period for retaining accounts is prescribed as follows:

Particulars Time Limit

Records including books of accounts pertaining to the

appeal [or revision] or any other proceeding before any

Appellate Authority or Tribunal or Court

One year after final disposal of such appeal or revision or

proceeding or for a time period, as may be prescribed,

whichever is later

Any other case 72 months [i.e. 6 years] from the date of filing of annual

return for the year



GST Ledgers

These 3 ledgers will be maintained for all the taxpayers and can be collectively known as Taxpayer

ledgers, which are as follows:

I. Electronic Cash ledger

II. Electronic Input Tax Credit ledger

III. Electronic Tax liability ledger

Electronic Cash ledger

• All the payments deposited via challan under the minor head Tax, Interest, Penalty, Fees and others of

the respective Major head like CGST, SGST and IGST shall be credit under the electronic cash ledger of

the taxpayer

• Any utilization of the available credit towards payment w.r.t. liability arising out of the return or any other

demand will be debited to such cash ledger

Note: The cash ledger will display balance as on date under various major-minor head combination will CGST Tax, CGST

Interest, CGST penalty etc.

• All the payments deposited via challan under the minor head Tax, Interest, Penalty, Fees and others of

the respective Major head like CGST, SGST and IGST shall be credit under the electronic cash ledger of

the taxpayer which can be utilized only with respect to the same category of liability of tax, i.e. Liability of

CGST Tax can only be paid from the Credit balance of CSGT Tax in cash ledger, which means no cross

adjustments of the available credit balance w.r.to liability under other major heads shall be allowed.



GST ledgers

Electronic Input Tax Credit ledger

• All the input taxes under various major heads i.e. CGST, SGST and IGST shall be credited to

electronic ledger also known as Input tax credit or ITC ledger in the following situations: (All or any of

them will form part of ITC ledger)

• ITC for taxes paid on Inward supplies from registered taxpayers

• ITC available to unit based on the distribution of credit done by the ISD as per manner prescribed in

section 19 of the Draft law

• Permissible ITC on inputs held in stock and inputs contained in semi-finished or finished goods held in

stock on the day immediately preceding the date from which the taxpayer becomes liable to pay tax,

provided he applies for registration within 30 days from the date of its liability.

• Permissible ITC on inputs held in stock and inputs contained in semi-finished or finished goods held in

stock on the day of conversion from compounding taxpayer to normal taxpayer.

• ITC w.r.to taxes paid under reverse charge shall be credited to the Electronic credit ledger also known

as Input tax credit ledger of the Taxpayer

• If the goods and/or services are used by the registered taxable person partly for the purpose of his

business and partly for any other purposes, the amount of credit shall be allowed for the goods and/or

services used for the purpose of his business



GST ledgers

Electronic Input Tax Credit ledger

• If the goods and / or services are used by the registered taxable person partly for effecting taxable

supplies and partly for effecting non-taxable supplies which are exempt and not zero-rated, the

amount of credit shall be restricted to so much of the input tax as is attributable to the taxable

supplies including zero-rated supplies.

• In cases of change in the constitution of business of the registered taxable person on account of

sale, merger, demerger, amalgamation, lease or transfer of the business with the specific provision

for transfer of liabilities, the said registered taxable person shall be allowed to transfer the input tax

credit that remains unutilized in its books of accounts to such sold, merged, demerged,

amalgamated, leased or transferred business in the manner prescribed.

• Input tax credit shall be available on provisional basis even when the supplier has not paid tax for a

particular tax invoice.

Electronic Tax liability ledger

• Tax liability ledger shall also be electronically maintained which will display the amount of liability

arising out the regular return of the taxpayer or any other liability arising out of demand notice,

penalty etc.

• And shall also display the amount of liability paid by utilization of the available credit balance in

Cash ledger or Input tax credit ledger.



GST Payment of tax and Interest on delayed payments

• All deposits /payment made with respect to tax, interest, penalty, fee or any other amount by a taxable

person shall be through electronic means and shall be credited to the electronic cash ledger of such

person.

• The date of credit to the account of the appropriate Government in the authorized bank shall be

deemed to be the date of deposit.

• The input tax credit as self-assessed in the return of a taxable person shall be credited to his electronic

credit ledger to be maintained in the manner as may be prescribed.

• Every taxable person shall discharge his tax and other dues in the following order:

− self-assessed tax, and other dues related to returns of previous tax periods;

− self-assessed tax, and other dues related to return of current tax period;

− any other amount payable under the applicable provisions.

• The rate of applicable interest shall be notified, on the recommendations of the GST Council, by the

Central and State Government.



Advance Ruling

ADVANCE RULING

• Advance ruling may be sought for classification, method of valuation, rate of tax,

admissibility of ITC, taxability, registration required or not, “supply”

• Advance ruling is not to be given where the issue is

– already pending in the applicants’ case before any appellate forum.

– the same as in a matter already decided by the Appellate Tribunal or any Court.

• Advance ruling to be issued within 90 days.

• Advance ruling shall be binding only on the applicant and concerned officer or jurisdictional

officer in case of applicant

• Advance Ruling can be sought even for a running business

• Advance ruling shall be void if it is obtained by – Fraud

– Suppression of material facts

– Misrepresentation of facts



GST Return

Compliance



GST Returns

• Under GST, a regular taxpayer needs to furnish monthly returns and one annual return.

• There are separate returns for a taxpayer registered under the− composition scheme,

− non-resident taxpayer,

− taxpayer registered as an Input Service Distributor,

− a person liable to deduct or collect the tax (TDS/ TCS) and

− a person granted Unique Identification Number.

• It is important to note that a taxpayer is NOT required to file all types of returns. In fact, taxpayers are

required to file returns depending on the activities they undertake.

• All the returns are to be filed online. Returns can be filed using any of the following methods:1. GSTN portal (www.gst.gov.in )

2. Offline utilities provided by GSTN

3. GST Suvidha Providers (GSPs) - If you are already using the services of ERP providers such as Tally, SAP, Oracle

etc., there is a high likelihood that these ERP providers would provide inbuilt solutions in the existing ERP systems



GST Return

Returns

Monthly

ReturnsAnnual Returns Misc. Returns

Normal

AssesseeOther

Assessee

Outward

DetailsInward

Details

Monthly

Details

GSTR 1 & 1A

(10th of next

month) GSTR 2 & 2A

(15th of next

month)

GSTR 3

(20th of next

month)

Penalties:

- INR 100 per day

- Upto maximum INR 5,000/-



GST Return

Taxpayer

Upload outward supply details by 10th

of the succeeding month

File GSTR-1 by 10th of the succeeding month

Inward supply details in GSTR-2 auto

generated on the basis of GSTR-1 filed

by other suppliers

Add / modify details and file GSTR-2 by

15th of the succeeding month

Reconcile details by 17th of succeeding

month

Pay tax and file GSTR-3 by 20th of succeeding month



GST Return Filing Process

GSTR-1 (Statement of Outward Supplies):a. This return signifies the tax liability of the supplier for the supplies effected during the previous month.

b. It needs to be filed by the 10th of every month in relation to supplies effected during the previous month. For

example, a statement of all the outward supplies made during the month of July 2017 needs to be filed by 10th

August, 2017.

GSTR-2 (Statement of Inward Supplies):a. This return signifies accrual of ITC (Input Tax Credit) from the inputs received during the previous month.

b. It is auto-populated from the GSTR-1s filed by the corresponding suppliers of the Taxpayer except for a few fields

like imports, and purchases from unregistered suppliers.

c. It needs to be filed by the 15th of every month in relation to supplies received during the previous month. For

example, a statement of all the inward supplies received during the month of July 2017 needs to be filed by 15th

August, 2017.

GSTR-3: This is a consolidated return. It needs to be filed by the 20th of every month. It consolidates the

following detailsa. Outward Supplies (Auto-Populated from GSTR-1)

b. Inward Supplies (Auto-Populated from GSTR-2)

c. ITC availed

d. Tax Payable

e. Tax Paid (Using both Cash and ITC)

NOTE: Payment should be made on or before 20th of every month.

Penal Provisions Relating to Returns:

Any registered person who fails to furnish form GSTR-1, GSTR-2, GSTR-3 or Final Return within the due dates, shall

be liable to pay a late fee of Rs. 100 per day, subject to a maximum of Rs. 5,000



GST Compliance

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31 Notes:

tax pay er tax pay er

Monthly Return

rev eiv ed by compounding

Inw ard Supplies Quartely Return for

GSTR 2 GSTR 4 GSTR 3

Serv ice Distributor

Return for TDS

made by tax pay er

GSTR 6

Outw ard Supplies Return by Input

GSTR 1/ GSTR 7

August 2017Sunday Monday Tuesday Wednesday Thursday

GSTR 8 Annual Return to be f iled by 31st December of

next FY

GSTR 5 Periodic return by Non- resident foreign

taxpayer - last day of registration

Friday Saturday



GST Compliance

Returns Particulars Due Date

GSTR-1 Outward

Supplies

Every registered taxable person is required to furnish the

details of outward supplies of goods/ services

10th of next month

GSTR-2 Inward Supplies Every registered taxable person I required to verify, validate,

modify, delete the details relating to outward supplies already

communicated and shall include inward supplies not

disclosed

15th of next month

GSTR-3 Monthly Returns Monthly Return by every registered taxable person (dealer)

for inward and outward supplies of goods and / or services,

input tax credit availed, tax payable, tax paid, etc. shall be

filed on or before 20th of next month

20th of next month

GSTR-4 Composition

Levy

Dealers paying tax under composition scheme shall file

quarterly return

18th of next quarter

GSTR-5 Non-resident

taxable person

Every registered non-resident taxable person is required to

file monthly return

20th of next month/ 7 days after last

day of registration due date

GSTR-6 Input Service

Distributer (ISD)

Every ISD shall file monthly return 13th of next month

GSTR-7 TDS Return Dealer who is required to deduct tax at source shall file

return for the month in which deduction is made

10th of next month

GSTR-8 E-commerce

Operator

Monthly Statement for E-Commerce Operator depicting

supplies

Above Due dates applies Mutatis

mutandis

GSTR-9 Annual Return Annual return for every financial year shall be filed On or before 31st December following

the end of such financial year

GSTR-10 Final Return Every dealer who applies for cancellation of registration shall

furnish a final return

within 3 months of the date of

cancellation or date of cancellation

order, whichever is later



GST on IT Sector

Pre-GST regime

The sale of packaged software attracted both VAT @ 5% and service tax @15%. Excise

duty was also applicable on manufacturing of IT products.

GST Regime

• IT, Software development services attract 18% GST

• Freelancers offering software services such as designing, app development, website

designing etc., is liable to 18% GST

• Export of information technology continues to be exempt from GST with claim of

refund on tax paid on local inputs and input services



GST on Electronics Equipment

HSN Chapter 85 contains the HSN code for all electrical machinery and equipment and parts thereof;

sound recorders and re-producers, television image and sound recorders and reproducers, and parts

and accessories of such articles. Items under chapter 85 of HSN are taxed 5% to 28% GST

GST Rates Goods

5% Electronics

• Bio-gas plant, Solar power based devices

• Solar power generating system

• Wind mills and wind operated electricity generator

• Waste to energy plants/devices

• Solar lantern/solar lamp

• Ocean waves/tidal waves energy devices/plant

12% cellphones and mobile phones

18% • Electric motors and generators (excluding generating sets)

• Electric generating sets and rotary converters

• Electromagnets; Electrical capacitors, Electrical resistors, Printed Circuits

• Electrical apparatus for switching or protecting electrical circuits,

• Electrical machines and apparatus, having individual functions, not specified or included

elsewhere in this Chapter.

• Electrical insulators of any material.

• Waste and scrap of primary cells, primary batteries and electric accumulators;

28% • Static converters, inductors, Primary cells and primary batteries

• Electric accumulators, including separators therefor, whether or not rectangular (including square)

• Vacuum cleaners, Electro-mechanical domestic appliances, with self-contained electric motor,

other than vacuum cleaners

• Sound recording or reproducing apparatus, Video recording or reproducing apparatus,



GST Impact

Areas



Key Impact Areas under GST Regime

GST is likely to transform all realms of

business and extend well beyond Tax

GST affects every part of your business in India

with regards to cash flow, costing of capital, pricing

of products and services, financial reporting, tax

accounting, compliance processes, supply chain,

procurements and contracts and all technology

currently enabling this ecosystem.

The transition to GST will have to be managed

in a phased manner and will require proactive

and timely planning. Companies will have to start

by understanding key areas of impact to their

business model and prepare different scenarios

for the design and application of GST.

Implementation of changes will have to be

managed through robust program management

across various company stakeholders in the entire

value chain.

Legal and

Statutory

compliance

Procurement

and

Manufacturing

Financial

Accounting

and Reporting

Sales and

Distribution

Inventory

Management

and Logistics

IT systems

GST Impact

on various

business

domains



Key Impact Areas under GST Regime

Areas

of review

Transfer

of credits

Point of

Taxation

Incentives /

exemptions

Payment

of taxOthers

Others

Changes in

IT Systems

Industries

Financials

Transfer of Credits for taxable input

or capital goods or input services

- Point of taxation on overlapping

transactions- Service tax, excise duty,

value added tax, central sales tax, etc.

- Treatment of units under Industrial

incentives/exemptions

• Payment of tax under composition/ compounded levy

scheme;

• Purchase tax / reverse charge on services – rate and

carry forward of credit

• Tax paid on goods in transit or pending approval

- Goods and services taxed at lower rate

- Declaration for purchase of goods and services at concessional rate

- Pending refund claims

- Price revisions

- Branch transfer

- Treatment of existing tax incentives

- Treatment of existing excluded sectors

- Transaction issues

- Changes in agreements wrt bearing of GST

- Tax compliance – registrations, maintenance

of registers, payment of taxes, availment of credit,

submission of returns, etc.

- Recognition of duties, taxes on stock, transfer

of credit, refund etc.

- Pending litigations & assessments

Changes in IT systems -dependency on GST

Impact on pricing, costing and margins, supply chain management Transfer of Credits for taxable input or capital goods

or input services

Transitional IssuesImpact Areas for Businesses

Compliances IT SystemsAccounting



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