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GST – Benefits and Salient Features
GST – Updates on legal front
GST - Registration, Returns, Refunds, Rates, Others
GST - Trade-friendly features
GST - Myths vs Reality
GST – Awareness and Preparedness
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Central taxes
➢ Excise duty
➢ Additional Excise Duty
➢ Service tax
➢ CVD (Counter Veiling Duty)
➢ SAD (Special Additional Duty)
➢ Central Cesses & Surcharges
State taxes
➢ VAT
➢ CST
➢ Entertainment Tax.
➢ Luxury tax.
➢ Tax on Lottery, betting, gambling.
➢ Entry tax.
➢ Purchase tax
➢ State Surcharges & Cesses.
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➢ Single tax replacing multiple taxes
➢ Single Authority & Single interface for Trade
➢ Mitigates ill-effects of cascading
➢ Tax burden decreases - benefits common man
➢ Makes products and services competitive
➢ Boosts economic activity, GDP and jobcreation
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Destination-based consumption tax
Present concepts of “sale”, “manufacture”, “provision of service” will be
replaced by the concept of “supply”
Applicable on supply of all goods or services, barring a few
“Supply” includes sale, transfer, barter, exchange, licence, rental, lease or
disposal for a consideration in the course or furtherance of business; all
import of services; the activities specified in Schedule I & II
Tax liability depends on:
▪ Time of Supply
▪ Place of Supply
▪ Location of Supplier and Location of Receiver
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Coverage
Traders
Manufacturers
Service Providers
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Commodities not covered by GST
Alcohol for human
consumption
Five Petroleum Products
Electricity
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Central GST
SGST/UT
GST
IGSTIntegrated GST
➢ Levied by Parliament on intra-State
Supply of Goods & Services
➢ Revenue accrues to Central Govt.
➢ CGST Act, 2017 enacted
➢ Referred as “Central Tax” in the Act
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State GST
SGST/UT
GST
IGSTIntegrated GST
➢ On intra-State Supply of Goods &
Services
➢ Revenue accrues to consuming State
➢ SGST Acts passed by 24 states so far
➢ Referred as “State Tax”
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Integrated GST
SGST/UT
GST
IGSTIntegrated GST
➢On Inter-State Supply of Goods &
Services
➢Rate is a combination of CGST & SGST
➢Apportionment of Tax & Settlement of
funds between Centre and States
➢IGST Act, 2017 enacted
➢Referred to as “Integrated Tax”
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16/4: Telengana
24/4: Bihar
26/4: Rajasthan
27/4: Jharkhand
28/4: Chattisgarh
2/5: Uttarakhand
3/5: Madhya Pradesh
4/5: Haryana
9/5: Goa
9/5: Gujarat
11/5: Assam
12/5: Arunachal Pradesh
16/5: Andhra Pradesh
16/5: Uttar Pradesh
17/5: Puducherry
19/5: Orissa
22/5: Maharashtra
24/5: Sikkim
25/5: Tripura
25/5: Mizoram
27/5:Nagaland
27/5:Himachal Pradesh
31/5:Delhi
5/6:Manipur
Total 24 States till 5/613
➢All registered persons under ExistingLaws
➢If aggregate turnover in a financialyear exceeds Rs. 20 lakhs
➢The threshold turnover is Rs. 10Lakhs in case of special categorystates
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any person making supplies not
liable to tax or wholly exempt
under the Acts
an agriculturist, to the extent of
supply of produce out of
cultivation of land
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➢Persons making inter-State taxable supply➢Persons required to pay tax under reverse charge➢E-Commerce operators➢Persons who supply goods through e-commerceoperator
➢Persons who supply goods and/or services on behalfof a registered taxable person
➢Input Service Distributor (ISD)➢Persons required to deduct tax at source (TDS)➢Casual taxable persons➢Non-resident taxable persons
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PAN is mandatory statutory requirement for GSTRegistration
A person, though not liable to be registered, may takeregistration voluntarily
Registration is to be granted State-wise.
Person having multiple “business verticals” in a State mayobtain separate registration
Time-bound grant of Registration (within 3 working days)
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Simpler option given to small taxpayers
Aggregate turnover LESS THAN 75 lakh rupees in the preceding financial
year
Amount payable in lieu of tax (as per draft Composition Rules):
▪ (a) 2 per cent of turnover – manufacturers (1% under CGST & 1% under
SGST)
▪ (b) 5 per cent of turnover- restaurants (2.5% under CGST & 2.5% under
SGST)
▪ (c) 1 per cent of turnover – for other suppliers (0.5%under CGST & 0.5%
under SGST)
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Suppliers making Inter-state supplies
E-Commerce operators
Manufacturers of Certain Notified goods
All service providers [except restaurants]
Supplies through e-commerce operators
Casual or non-resident taxable persons
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GST Returns for normal taxpayer
Return Nature Periodicity Remarks
GSTR 1Details of outward
supplies
Monthly by
10th
Data to be filled
by user
GSTR 2 Details of inward
supplies
Monthly by
15th
Most Data will be
auto-populated
GSTR 3 Monthly returnMonthly by
20th
Most Data will be
auto-populated
GSTR 9Consolidated details in
a financial year
Annual by 31st
December
Data to be filled
by user
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Return Nature Periodicity
GSTR 4
Quarterly Return for
compounding Taxable
persons
18th of the month succeeding
Quarter
Many data will be auto-populated
GSTR 5Return for Non-Resident
foreign taxable person
20th of the Month succeeding the
tax period and 7 days from expiry of
registration
GSTR 6 Return by ISD13th of the Month succeeding the
tax period
GSTR 7 Return by TDS 10th of succeeding Month
GSTR 8 Return by TCS 10th of succeeding Month
GSTR 10
Final Return by RTP on
winding up of businessWithin 3 months from date of
cancellation of registration
GSTR 11Details of Inward supply be
a person having UIN
28th of the month following the
month for which statement is filed
GST Returns for other categories
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GST Returns – Key features
“Valid return”: Return valid only if self-
assessed tax is paid in full
Return once filed cannot be revised.
Rectification/amendment can be effected in
subsequent return
Separate returns for composition tax
payer, TDS, TCS, ISD which are not
relevant to normal taxpayer.22
➢Can be claimed within 2 years
➢Refund of Input tax Credit allowed
- in case of exports or
- where the input credit accumulation is on
account of inverted duty structure
➢Refund shall be granted within 60 days from the
date of receipt of application and Interest
payable thereafter
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➢In case of refund claim on exports, 90%
of the claim can be given immediately
within 7 days, on provisional basis.
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USAGE OF INPUT TAX
CREDIT
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Input Tax Credit – Key restriction
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Invoice under GST
Tax
Invoice
For taxable supplies - to be
issued by
regular taxpayers
Bill of
Supply
To be issued by
suppliers of exempted goods
and Composition taxpayers
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For movement of goods of consignment value exceeding Rs. 50,000/-:
(i) in relation to a supply; or (ii) for reasons other than supply; or (iii) due to inward supply from an unregistered
personbefore commencement of movement,
furnish information relating to the said goods electronically, on the common portal OR Facilitation Centres or by SMS
- Same procedure for cancellation also
- Can be generated by consignor, consignee or transporter
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“Job work” means any treatment or process
undertaken by a person on goods belonging to
another registered person
Value of goods after completion of job work is
not includible in the job worker’s turnover but
includible in the Principal’s turnover
Job worker is deemed as supplier of
“service”
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Through Credit Cards, Debit Cards,
Internet Banking (NEFT/RTGS)
Over the Counter [Upto Rs. 10000/-
per tax period]
Single Challan for all types of payment
Real Time entry into Cash Ledgers
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All Existing Registered Traders,Manufacturers, Service Providers to bemigrated automatically to GST
All eligible ITC balances and credits and allITC credits on stock held under existing lawsare transferrable to GST credit ledgers
All refunds in the existing law will continue tobe sanctioned under existing laws.
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0%: On essential items
3%:Jewellery,Rough Precious & Semi-
precious rates,etc
5%: On items of mass consumption
12% & 18%: Covering majority of
manufactured items and Services
28%: Certain Luxury goods and services32
Seamless credit flow across
the supply chain in the country
IT-driven – minimal physical
interface with tax authorities
Uniform laws, rules, rates,
procedures across the country
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GST Compliance Rating of all GST registrants on public
domain facilitates informed decisions about prospective
suppliers and customers by Trade
Assistance through recognised GST Practitioners
Complete ‘zero rating’ of exports and supplies to SEZ
Units & Developers
Flexibility of decision-making with government
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Interlocking of every tax payer
in the network ensures enhanced
compliance
No incentive for anyone
staying outside tax net
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Description Of Services GST Rate
Judicial, Non judicial stamp papers Exempted
Printed books, including Braille books [4901]
and newspaper, periodicals & journals [4902],
maps, atlas, chart & globe [4905] Exempted
Newspapers, journals and periodicals,
whether or not illustrated or containing
advertising material.
Exempted
Exempted
Maps and hydrographic or similar charts of all
kinds, including atlases, wall maps,
topographical plans and globes, printed Exempted
Description Of Services GST Rate
Newsprint, in rolls or sheets [4801] 5%
Brochures, leaflets and similar printed matter,
whether or not in single sheets5%
Uncoated paper and paperboard, uncoated kraft
paper, greaseproof paper, glassine paper,
composite paper etc.
12%
Boxes, pouches, wallets and writing
compendiums, of paper or paperboard,
containing an assortment of paper stationery
including writing blocks
12%
Cartons, boxes and cases of corrugated paper
or paper board
12%
12%
Exercise book, graph book, & laboratory note
book12%
Calendars of any kind, printed, including
calendar blocks12%
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Description Of Services GST Rate
Carbon paper, self-copy paper and other copying or
transfer papers18%
Printing ink, writing or drawing ink and other inks,
whether or not concentrated or solid18%
Envelopes, letter cards, plain postcards and
correspondence cards, of paper or paperboard;18%
Registers, account books, note books, order books,
receipt books, letter pads, memorandum pads,
diaries and similar articles, exercise books,
blotting-pads, binders (loose-leaf or other), folders,
file covers, manifold business
18%
Paper or paperboard labels of all kinds, whether or
not printed18%
Printing Machinery 18%
Wall paper and similar wall coverings 28%38
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SL NO Description Of Services GST Rate
12 Selling of space for advertisement in print
media
5% with
Full ITC
13 Services by way of job work in relation to
printing of newspapers;
5% with
Full ITC
13 A Services by way of job work in relation to –
c) Printing of books (including braille
books), journals and periodicals
5% with
Full ITC
CBEC & Karnataka VAT Dept. conducted extensive
outreach and awareness programs for trade and
industry on GST
FAQs in Kannada on GST available on
http://cbec.gov.in > GST > My GST > FAQs
GST Seva Kendras are operational for benefit of trade
and industry in all CBEC & KVAT offices
All offices and officers are ready for roll out of GST
by 1st July 2017 40
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http://cbec.gov.in > GST > Migration to GST
Let’s welcome the
Good and Simple Tax !!!
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THANK YOU!
Slide 43
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