WHAT IS GST?cdn.shopclues.com/images/ui/Basics of GST (Revised).pdf · Goods and Service Tax (GST)...
Transcript of WHAT IS GST?cdn.shopclues.com/images/ui/Basics of GST (Revised).pdf · Goods and Service Tax (GST)...
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goods/services, that have been replaced by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