GST Training

Page 1
GST- What it is?

Page 2 Page 2
Draft for Discussion only
Goods and Services Tax
Key Objectives of GST

One Nation, One Tax - Single Eliminating cascading effect of

common National Market Indirect taxes

Uniformity in compliance
framework - registration, Ease in doing business
payments and credits

Page 3
GST Framework
GST snapshot Points for Consideration – Key Take Away

► Tax on “Supply” of goods and services ► Concept of Place of Supply becomes relevant for domestic supplies
► Destination Based Tax ► Myraid Compliances and hence Role of Technology significant
► Local Supply ► Process and Control based compliances
► CGST plus SGST (rates may vary) ► Service Companies would need substantial change in the existing IT
► Interstate Supply systems
► IGST (single rate) ► The ambit of GST law covers whole of India
► Imports
► Basic customs duty (unchanged) ► Supply by unregistered person to a registered person would now be liable
► IGST (single rate)
to GST under Reverse Charge Mechanism and the same shall be
► Stock transfers i.e. on self supplies
available to the registered person as input tax Credit.
► Supply of goods and services taxable
► GST Valuation Rules to apply on such
supplies

Page 4
GST – Present vs. Proposed
GST
GST – A Bird’s eye view Taxes to be subsumed Taxes applicable today
Central Levies State Levies ►Service Tax (both output and
GST is : input service)
Centre Taxes State Taxes
Excise Duties including
►a destination based Tax the additional excise VAT/ Sales tax ►Excise Duty (on procurement
duties of inputs)
Entry tax not in lieu of
►Levied on value octroi ►VAT/CST (on procurement of
Additional duties of
addition – at each stage customs (ie CVD and Entertainment tax (unless goods)
SAD) levied by the local
►Entry Tax (on entry of goods
►Local Supply – CGST bodies)
Taxes in specified State)
plus SGST (rates may CST (to be phased out)
vary) subsumed Luxury tax
►Basic Customs Duty (on
import of goods)
►Interstate Supply – Taxes on lottery, betting
Service tax and gambling ►Additional Duty of Customs
IGST (single rate) Purchase tax to
be subsumed and Special Additional
Cesses and surcharges Duty (on import of goods)
Cesses and surcharges
What it excludes : levied by Union levied by States
Taxes applicable post GST
►Petroleum and Real
► CGST
Estate Property are
excluded • Municipal levies - likely to continue ► SGST
• Stamp duty - likely to continue
CGST SGST ► IGST

Page 5
GST design ushers in a “dual levy”, and stakeholdership
from States to tax supplies
Alignment of powers of taxation on supply of goods and services
Dual GST: Exclusions/ Exceptions: Other features: GST Compensation cess:
► Stamp duty and real ► State level compliance: ► Rate of cess to be notified
► CGST and SGST property excluded Cess will be levied on
► Place of supply ►
on local intra ► Alcohol for human transaction value with
state supplies ► Larger pool of credits
consumption excluded ► Matching concept availability of credit
► IGST on inter ► Impose excise duty and ► Not applicable for dealers
state supplies VAT: opting for composition
► Petroleum (for a scheme
moratorium period) ► Cess can be utilized against
► Tobacco payment of such cess only

Rates discussed by GST Council

Rates 0% 5% 12% 18% 28%
Goods and Essential Food, Precious metals, Standard Rate for Standard Rate for Demerit goods.
services covered medicines, Common use services and goods services and Additional cess to be
services items goods imposed on luxury
goods

Page 6
Incidence of tax

Page 7
Charge of GST
SUPPLY OF
Goods/ Deemed Supply In the course or
by taxable
Services of Goods/ furtherance of
person
Services business

PLACE OF SUPPLY
India Outside India If export then
zero rated
supply, else
IGST

Intra-State Inter-State
► Requirement of registration in relevant ► Requirement of registration in the
State origin State
► Liable to CGST + respective State’s ► Liable to IGST
SGST
Page 8
Liability to pay Tax
Supply of
Goods/ Services

L1 and L2 are in same

State
LOCAL STATE
Location Intra-State Sale GST
of Service CGST
Provider SGST
(L1)

L1 and L2 are in different

States
INTEGRATED
Place of GST
Supply Inter-State Sale
(L2) IGST
(State)

Page 9
Set off from output liabilities
Input tax credits widened

GSTN
Electronic Registers for Credits - CGST/ SGST/ IGST
(qua each registration held)

Vendor populates sales to Reverse charge tax Allocation through ISD

TDS provisions
taxable person payment mechanism

Reconciliation Limitation Period Vendor Blacklisting

Order for utilisation of credits and payment of taxes

CGST Output SGST Output IGST Output

CGST Input SGST Input IGST Input

IGST Input IGST Input CGST Input

SGST Input

Page 10
Registrations

Page 11
Registration
Registration

Taxpayer under Fresh Registration

existing laws
Person Liable to Optional
Register
Mandatory Registration
Voluntary registration
Threshold Interstate supply below threshold limit
Provisional RC (valid
for 6 months) Aggregate turnover of Casual taxable person Compounding scheme
all supplies exceeds INR (applicable in case where
Tax payable under reverse charge intra-state supplies in a
20 Lakh
Non-resident taxable person financial year does not
INR 10 Lakh in North exceed INR 50 lakh)
Input Service Distributor (ISD)
Eastern States
Final RC on E-commerce Operators

submission of Persons supplying goods/services

through E-Commerce operators
prescribed documents
Tax Deduction at Source (TDS)
Tax Collection at Source
Person supplying goods/ services on
behalf of other registered taxable
A person having multiple business verticals in a state MAY persons
obtain a separate registration for each business vertical Person supplying online information and
database access or retrieval services
from a place outside India

Page 12
 GST Enrolment

Migration process Documents

Steps to be followed for completing provisional registration on GST web portal

Enter information and

Login to the GST website and Enter Mobile Number and Email Address
Obtain Provisional User Enter OTP sent upload scanned
enter the of the authorized signatory of the
ID and password from on Mobile and images as mentioned
Username/Password provided business entity for all future
current tax jurisdiction Email address in Enrolment
by your jurisdiction correspondence
registration form

► On the appointed day, certificate of registration to be issued on provisional basis which will be valid for a period of 6 months
► Final certificate of registration shall be granted on furnishing of information
► BSNL shall not be required to take any new registration, its existing registrations shall automatically migrate to GST
registration

Page 13
Registration
• Obtain the provision id and password from the existing indirect tax department
• Login at GSTN portal with provisional ID, fill the enrolment form and generate
acknowledgement
Enrolment

• On the appointed date, all the enrolled assesse will be given a provision al registration
certificate in FORM GST REG-25
Provisional • Provisional certificate will be valid for a period of 6 months
Certificate

• Submit application in FORM GST REG-26 along with the required information duly signed or
verified within a period of 3 months (or extended)
Certificate of • After
REG-6
verification, Proper officer, if satisfied, will grant certificate of registration in FORM GST
registration

Page 14
Amendment of Registration
• Application in FORM GST REG-14 to intimate the changes/amendments
• Application should be filled within a period of 15 days of such changes/amendments
Application

• After verification, Proper officer shall approve the amendment within 15 days and issue a
order in FORM GST REG-15
Order

• Proper officer(PO) would issue a SCN in FORM GST REG-03 within 15 days where is of the
opinion that amendment is not warranted or document are incomplete
• Reply to SCN should be filled within 7 days in FORM GST REG-04
Discrepancy • If reply is found to be unsatisfactory, PO shall reject the amendment and pass a order in
FORM GST REG-05

Page 15
Amendment of Registration

Deemed to be amended

Any change in certificate of registration shall be accepted upon submission of application in FORM GST REG-14
except the following changes related to :
► Legal name of business;
► Address of principal place of business or any additional place(s) of business;
► addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of Trustees,
Chief Executive Officer or equivalent, responsible for the day to day affairs of the business;
Which does not warrant cancellation of registration.

Page 16
Cancellation of Registration
Grounds of cancellation

Proper officer may cancel the registration where :

► The business has been discontinued, transferred fully for any reason including death of the proprietor,
amalgamated with other legal entity, demerged or otherwise disposed of;
► There is any change in the constitution of the business;
► The taxable person, other than voluntarily registered person, is no longer liable to be registered;
► Registered person has contravened such provisions of the Act or the rules made thereunder as may be
prescribed;
► The registered person has not furnished returns for a continuous period of 6 months;
► Voluntarily registered person has not commenced business within 6 months from date of registration;
► registration has been obtained by means of fraud, wilful misstatement or suppression of facts
► The registered person does not conduct any business from declared place of business;
► The registered person issue invoice or bill of supply without supply of good or services

Page 17
Cancellation of Registration

• Furnish FORM GST REG-16 within 30 days of occurrence of event

Application fro warranting cancellation
cancellation • Voluntarily registered person shall not apply for cancellation before
expiry of 1 year from effective date of registration

• Input held in stock;

• Input contained in semi-finished goods;
Details to be • Finished goods held in stock;
furnished with • Capital goods held in stock;
application • Liability of tax thereon;
• Payment made, if any, against such liability;
• Other relevant documents in support thereon;

Page 18
Cancellation of Registration
• SCN shall be issued in FORM GST REG-17 if proper officer believe that registration is liable to
be cancelled
• Reply to SCN shall be filled in FORM GST REG-18 within 7 days of date of services of SCN
SCN

• Where reply filled by registered person are satisfactory, proceeding shall be dropped and
order shall be passed in FORM GST REG-20
SCN dropped

• Proper officer shall issue a order of cancellation in FORM GST REG-19 within 30 days of
receipt of application or date of reply to SCN:
• Where person submitting application is no longer liable for registration or
Cancellation
• Where registration is liable to be cancelled,
granted

Page 19