“One Nation One Tax??”-

Goods and Service Tax (GST)

Compliance and Impact

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Registration

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Who’s liable ?Aggregate Turnover based• Exceeding Rs. 4 Lacs in NE states and Sikkim• Exceeding Rs. 9 Lacs for Rest of India

Aggregate Turnover on all India basis includes:

• All taxable and non taxable supplies;

• Exempt supplies;

• Export of goods and services having same PAN

Aggregate Turnover excludes:

• Supplies on which tax charged on RCM

• Inward Supplies

• Taxes namely IGST, CGST and SGST

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Who’s liable ?Mandatory Registration

• Persons making any inter-State taxable supply;

• casual taxable persons;

• Persons who are required to pay tax under reverse charge;

• Non-resident taxable persons;

• Persons who are required to deduct tax;

• Persons who supply goods and/or services on behalf of other registered taxable persons whether

as an agent or otherwise;

• Input service distributor;

• Persons who supply goods and/or services, other than branded services, through electronic commerce

operator;

• Every electronic commerce operator

• An aggregator who supplies services under his brand name or his trade name;

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Forms for obtaining RegistrationForm Number Purpose

GST REG-01 Application for registration by persons other than Non-resident, Tax Deductor and Tax Collector

GST-REG-06 Certificate of Registration

GST-REG-07 Application for registration by Tax Deductor and Tax Collector.

GST-REG-09 Application for obtaining Unique ID by UN, Govt. Authorities, PSUs etc.

GST-REG-10 Application for registration by Non resident (5 days before commencment)

GST-REG-11 Application for amendment in registration

GST-REG-14 Application for cancellation of registration

GST-REG-20 Application by existing assesse/dealer for obtaining permanent registration

GST-REG-21 Provisional Certificate of Registration for existing assesse/dealer

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Features of Registration

PAN based registration number except for non-resident taxable person. Mobile number and e-mail ID also critical.

Voluntary registration permissible. Agriculturist not taxable person.

Automatic migration of existing assesse/dealers to GST

Registration within thirty days from the date on which he becomes liable to registration. Fast TAT for registration.

Separate State, separate registration

Multiple business verticals, may take separate registration

Unique ID number for UN, Govt. authorities, PSUs not making outward supply

No Centralized registration for services. No registration fee.

Mandatory to file with DSC for company, LLP and PSU.

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Why to register ?• Legally recognized as supplier.

• Proper accounting of taxes paid on the input goods or services.

• Legally authorized to collect tax from his purchasers.

• Unregistered person can neither collect GST from his customers nor claim any input tax credit.

Advantages

Dis-Advantage

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Invoice

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Contents of Tax Invoice• name, address and GSTIN of the supplier;

• a consecutive serial number containing only alphabets and/or numerals, unique for a financial year;

• date of its issue;

• name, address and GSTIN/ Unique ID Number, if registered, of the recipient;

• name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is unregistered and where the taxable value of supply is fifty thousand rupees or more;

• HSN code of goods or Accounting Code of services;

• description of goods or services;

• quantity in case of goods and unit or Unique Quantity Code thereof;

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Contents of Tax Invoice (Cont..)

• Taxable value of goods or services taking into account discount or abatement, if any;

• Rate of tax (CGST, SGST or IGST);

• Amount of tax charged in respect of taxable goods or services (CGST, SGST or IGST);

• Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce;

• Place of delivery where the same is different from the place of supply;

• Whether the tax is payable on reverse charge;

• The word “Revised Invoice” or “Supplementary Invoice”, as the case may be, indicated prominently, where applicable along with the date and invoice number of the original invoice.

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How to Issue Invoice ?

Triplicate in case of Supply of Goods as under:

• The original copy being marked as ORIGINAL FOR RECIPIENT;• The duplicate copy being marked as DUPLICATE FOR TRANSPORTER;

and• The triplicate copy being marked as TRIPLICATE FOR SUPPLIER.

Duplicate in case of Supply of Service as under:

• The original copy being marked as ORIGINAL FOR RECIPIENT;• The duplicate copy being marked as DUPLICATE FOR SUPPLIER;• Invoice shall be issued within a period of thirty days from the date of

supply of service and forty five days for Banking and financial company.

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Other Features• Registered taxable person may obtain an Invoice Reference Number from the

Common Portal by uploading, on the said Portal, a tax invoice issued by him in FORM GST INV-1.

• Invoice Reference Number valid for 30 days. No requirement of carrying Duplicate Invoice by Transporter in this case.

• Separate Bill of Supply format in case of supply of non-taxable goods or services or paying tax under composition scheme.

• Separate format for supplementary tax invoice, Credit/Debit Notes and invoice issued by ISD.

• Taxable person may not issue a bill of supply if the value of the goods or services supplied is less than Rs. 100

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Returns

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Which returns to be filed ?Form Number Purpose Due Date

GSTR-1 Outward Supplies on or before 10th of the succeeding month

GSTR-2 Inward Supplies on or before 15th of the succeeding month

GSTR-3 Monthly Return on or before 20th of the succeeding month

GSTR-4 Quarterly Return by composition supplier

Within 18 days of end of quarter

GSTR-5 Non- Resident Taxable Person

Within 20 days after the end of a tax period or within 7 days after the last day of the validity period of registration, whichever is earlier

GSTR-6 Input Service Distributor

Within 13 days after the end of such month

GSTR-7 TDS Deductor Within 10 days after the end of month in which deduction is made.

GSTR-8 E-Commerce TCS Within 10 days after the end of month in which collection is made

GSTR-9, 9A Annual Return before the 31st day of December following the end of such financial year

GSTR-10 Final Return within three months of the date of cancellation or date of cancellation order, whichever is later

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Who is to file what ?Every taxable person except ISD, Composition scheme and TDS deductor

GSTR-1, GSTR-2, GSTR-3, GSTR-9

Taxable person Composition scheme. GSTR-4, GSTR-9A

Non Resident Taxable Person GSTR-5

Input Service Distributor GSTR-6

Person liable to TDS GSTR-7

E-Commerce Dealer GSTR-1, GSTR-2, GSTR-3, GSTR-8GSTR-9

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Features of GST Returns

• GSTR-1 to contain details namely outward supplies to registered persons, outward supplies to unregistered persons (consumers), details of Credit/Debit Notes, zero rated, exempted and non-GST supplies, exports, and advances received in relation to future supply.

• Large part of GSTR-2 will be auto-populated. Matching Concept.

• All B2B invoices detail to be uploaded. Inter-state B2C supplies valuing more than Rs. 2.5 Lacs to be uploaded. For rest all, state wise summary to be given.

• No description to be entered. Only HSN code in respect of supply of goods and Accounting code in respect of supply of services.

• Revision not permitted. System will allow change to the respective transactions which are to be amended.

• Online facility and Offline Utility for return filing. TRPs available for return filing.

• Allow uploading of invoices on real time basis.

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Tax Payment Process

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Who is liable to pay GST ?• Generally Supplier of goods and services who needs to be a

taxable person.

• Recipient of goods or services under RCM in specified cases (Imports and other notified supplies).

• Tax deductor or Tax collector in specific cases (Government and E-Commerce Operator).

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When to pay GST ?• At the time of supply of Goods as explained in Section 12 and at the time of supply of

services as explained in Section 13.

• The time is generally the earliest of one of the three events:

• Receiving payment;• issuance of invoice;• completion of Supply

• On monthly basis by the 20th of the succeeding month.

• Composition tax payers will need to pay tax on quarterly basis.

• Tax deductor or Tax collector to deposit same within 10 after the end of the month.

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How to pay GST ?

‣ Cash payment needs to be deposited in cash ledger and taxpayer shall debit ledger while making GST payment.

Through Cash Ledger

Through Credit Ledger‣ Tax payers allowed to make only tax payment by

taking credit of taxes paid on inputs.‣ Interest, Penalty and Fee can not be paid through this

mode.

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Features of GST Payment

• Electronically generated challan from GSTN Common Portal in all modes of payment and no use of manually prepared challan;

• Facilitation for the taxpayer by providing hassle free, anytime, anywhere mode of payment of tax;

• Tax Payment Hours from 0000 Hrs to 2000 Hrs. Electronic Tax liability register to reflect total tax liability of month. Unique CPIN (14 digit) and CIN system (17 digit).

• Convenience of making payment online;

• Logical tax collection data in electronic format;

• Faster remittance of tax revenue to the Government Account;

• Simplified procedure for banks.

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Audit

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Features of Audit under GST

‣ If aggregate turnover of registered taxable person exceeds Rs. 1 crore, then audit by Chartered Accountant or Cost Accountant

‣ Audit to be completed till December 31 and duly certified reconciliation statement GSTR-9B to be issued.

Turnover based Audit

Special Audit‣ Chartered Accountant or Cost Accountant nominated by Commissioner

can conduct this audit in limited circumstances where case is complex or stake in high.

‣ Report of this audit to be given in 90 days extendable to another 90 days.

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GST Rate Slabs

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GST Rates• Lowest Slab @5% – Food items and other mass essentials. • Standard Slab @ 12% – Substantial Goods & Services. • Middle Slab @ 18% – Rest Of Goods & Services.• Highest Slab @28% – Luxury & Demerit goods.• Clean Environment Cess – An Additional Cess will be imposed on luxury and

demerit goods . It shall be levied on goods like selected luxury cars, aerated drink , alcohol, tobacco , pan masala etc .

• Zero Rate -There will be zero rate on 50% of items under CPI index basket and which includes food grain as well. This is not to be treated at par exempted goods as was clarified by Mr Jaitley during his press meet after the meeting of GST Council.

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Thanking You

Nitisha Malpani