GOODS AND SERVICE TAX

• SGST STATE GOODS AND SERVICE TAX

• CGST CENTRAL GOODS AND SERVICE TAX
• IGST INTEGRATED GOODS AND SERVICE TAX
• UTGST UNION TERRITORY GOODS AND
SERVICE TAX
Businesses with turnover above the threshold limit
of Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern
States, J&K, Himachal Pradesh and Uttarakhand)
 INTRA STATE TRANSACTION
• Intra state transactions are transaction
between two assessee in the same state

Example : GOODS SOLD BY A (Registered Dealer

in Tamil Nadu) To B(Registered Dealer in
Tamilnadu)

TAMILNADU TAMILNADU
 INTER STATE TRANSACTION
• Inter state transactions are transaction
between two assessee in the different state

Example : GOODS SOLD BY A (Registered Dealer

in Tamil Nadu) To B(Registered Dealer in
Andhra pradesh)

TAMILNADU ANDHRA PRADESH

 TAX COLLECTIONS
CGST CENTRAL GOVT

SGST STATE GOVT

IGST CENTRAL GOVT

UTGST CENTRAL GOVT

 TAX CALCULATIONS
A (TAMILNADU) B (TAMILNADU)

Example : Car tyre sold by A Rs.10,000 to B

GST for Car tyre = 28%

Basic Rate of Tyre : = Rs.10,000

CGST @14% = Rs. 1,400
SGST @14% = Rs. 1,400
Total 12,800
 A(TAMILNADU) C(ANDHRA PRADESH)

Example : Car tyre sold by A Rs.10,000 to C

GST for Car tyre = 28%

Basic Rate of Tyre : = Rs.10,000

IGST @28% = Rs. 2,800
Total 12,800
OUTPUT LIABILITY CALCULATION TO DEALER
A
Output Liability Calculation
CGST @ 14% = Rs.1,400
SGST @ 14%= Rs. 1,400
IGST @ 28% = Rs. 2,800
Total Liability 5,600
 INPUT & OUTPUT TAX ADJUSTMENTS
B (TAMILNADU) D(TAMILNADU)

Example :Car tyre sold by B Rs.12,000 to C

GST for Car tyre = 28%
Basic Rate of Tyre : = Rs.12,000
CGST @14% = Rs. 1,680
SGST @14% = Rs. 1,680
Total 15,360
 TAX LIABILITY –B (Dealer)
Output Liability Calculation
CGST Output @14% = Rs.1,680
Less :CGST Input @14% = Rs. 1,400
CGST Liability Rs. 280

SGST Output @14% = Rs.1,680

Less :SGST Input @14% = Rs. 1,400
SGST Liability Rs. 280

Total Liability
Net CGST =Rs. 280
Net SGST =Rs. 280
Total Rs. 560
 C(ANDHRA PRADESH) E(ANDHRA PRADESH)

Example :Car tyre sold by C Rs.13,000 to E

GST for Car tyre = 28%

Basic Rate of Tyre : = Rs.13,000

CGST @14% = Rs. 1,820
SGST @14% = Rs. 1,820
Total 16,640
 TAX LIABILITY –C (Dealer)
Output Liability Calculation
CGST Output @14% = Rs.1,820
Less :IGST Input @14% = Rs. 1,820
CGST Liability Rs. NIL

SGST Output @14% = Rs.1,820

Less :IGST Input @14% = Rs. 980
SGST Liability Rs. 840

Total Liability
Net CGST = NIL
Net SGST =Rs. 840
Total Rs. 840
INPUT TAX CREDIT SET OFF
INPUT/ CGST SGST IGST
OUTPUT
CGST Allowed Not Allowed Allowed

SGST Not Allowed Allowed Allowed

IGST Allowed(2) Allowed(3) Allowed(1)

*OUTPUT GST- INPUT GST

RETURNS
 GST FORMS
• GSTR -1
It is a monthly Statement of Outward Supplies to be
furnished by all normal and casual registered taxpayers
making outward supplies of goods and services or both and
contains details of outward supplies of goods and services.
If your turnover during the preceding financial year was upto
Rs. 1.5 Crore; or if you are registered during the current
financial year and expect your aggregate turnover during FY
2017-2018 to be upto Rs. 1.5 Crores
Due Date :The due date to file GSTR-1 for a given tax period is
10th day of the succeeding month.
 GSTR-2
GSTR 2 or return of inward supplies must be filed before the
15th of each month. In GSTR 2, the return for outward supplies
filed by the supplier the receiver is required to match his
receipts with the details of supplies filed by the supplier. The
receiver is required to – verify, validate, modify or even delete,
if necessary – the details furnished by the suppliers.
Any modification, deletion or inclusion of inward supplies by
the receiver in his inward return i.e. FORM GSTR-2 will be
communicated to the Outward supplier.
Due Date :The due date to file GSTR-2 for a given tax period is
15th day of the succeeding month.
 GSTR-3 Return

GSTR 3 or monthly GST return is due on the 20th of

every month. Part A of GSTR 3 return will be
automatically generated based on information
furnished through FORM GSTR-1, FORM GSTR-2
and based on other liabilities of preceding tax
periods. The taxpayer can discharge his liability
towards tax, interest, penalty, fees or any other
amount payable under the Act or the provisions of
this Chapter by debiting the electronic cash ledger
or electronic credit ledger and include the details
in Part B of the return in FORM GSTR-3.
Due date : 20th of every Month
 GSTR-4 Return Quarterly Return for Composition Suppliers 
The GST Composition Scheme makes it easy for small businesses to
maintain GST compliance by providing a simpler GST filing form, quarterly
GST returns filing and no responsibility on the business for collecting GST
on supplies. GSTR 4 return must be filed by persons registered under the
GST Composition scheme every quarter. Dealers enrolled under the GST
Composition Scheme file one GST return every 3 months instead of 3 GST
returns every month. Since composition scheme dealers cannot claim GST
input tax credit, GSTR 4 is a consolidated form and details of purchases
and supplies are filed in the same form. In this article, we look at GSTR 4
return in detail along with the procedure for filing GSTR 4 return.
Due date : GSTR 4 Return must be filed between the 11th and 18th of every
April, July, October and January.
*A taxpayer whose turnover is below Rs 1.0 crore* can opt for
Composition Scheme. In case of North-Eastern states and Himachal
Pradesh, the limit is now Rs 75* lakh.
 GSTR-5

The return must be filed by persons registered

under GST as non-resident taxable persons. Non-
resident taxable persons are persons who
occasionally undertakes transactions involving
supply of goods or services or both, whether as
principal or agent or in any other capacity, but who
has no fixed place of business or residence in India.
All non-resident taxable persons are required to
obtain GST registration and file GSTR-5 returns.
Due Date : GSTR-5 return must be filed every month,
on or before the 20th day
 GSTR-6
Return for Input Service Distributors

GSTR-6 return must be filed by persons

registered as an Input Service Distributor on or
before the 13th of every month. Based on
FORM GSTR-6A, the taxpayer can file the return
after adding, correcting or deleting the details,
furnish return, containing the details of tax
invoices on which credit has been received and
those issued
 GSTR-7

GSTR 7 is a return to be filed by the persons

who is required to deduct TDS (Tax deducted
at source) under GST. GSTR 7 contains the
details of TDS deducted, TDS liability payable
and paid, TDS refund claimed if any etc.
• Ex :  A department or establishment of the
Central or State Government,  Local authority,
or Governmental agencies
 GSTR-8

GSTR-8 return must be filed by E-Commerce

Operator on or before the 10th of every
month. E-Commerce operators must provide
details of outward supplies of goods or
services or both made through it, including
the supplies returned through it and the
amount collected by it.
 GSTR-9

GSTR-9 return or annual GST return must be

filed by taxpayers on or before the 31st of
December. GSTR-9 return need not be filed by
those registered under composition scheme,
non-resident taxable persons, casual taxable
persons, TDS deductors, TCS collectors. In case
the annual turnover is more than Rs.2 crores
the annual return filed by the taxpayer must be
audited by a Chartered Accountant or Cost
Accountant.
GST PAYMENT
 Reverse Charge Mechanism 
If a vendor who is not registered under GST,
supplies goods to a person who is registered under
GST, then Reverse Charge would apply. This means
that the GST will have to be paid directly by the
receiver to the Government instead of the
supplier.
The registered dealer who has to pay GST under
reverse charge has to do self-invoicing for the
purchases made.
For Inter-state purchases the buyer has to pay
IGST. For Intra-state purchased CGST and SGST has
to be paid under RCM by the purchaser
 GST ADMINISTRATION -SGST
• a) Commissioner of SGST,
• b) Special Commissioners of SGST,
• c) Additional Commissioners of SGST,
• d) Joint Commissioners of SGST,
• e) Deputy Commissioners of SGST,
• f) Assistant Commissioners of SGST, and
• g) such other class of officers and persons as
may be appointed for the purposes of this Act.
[List is indicative]
 GST ADMINISTRATION -CGST
(a) Principal Chief Commissioners of CGST or Principal Directors General of
CGST,
(b) Chief Commissioners of CGST or Directors General of CGST,
(c) Principal Commissioners of CGST or Principal Additional Directors General of
CGST,
(d) Commissioners of CGST or Additional Directors General of CGST,
(e) First Appellate Authority,
(f) Additional Commissioners of CGST or Additional Directors of CGST,
(g) Joint Commissioners of CGST or Joint Directors of CGST,
(h) Deputy Commissioners of CGST or Deputy Directors of CGST,
(i) Assistant Commissioners of CGST or Assistant Directors of CGST, and
(j) such other class of officers as may be appointed for the purposes of this Act.
 Types of Assessment under GST

Self-Assessment
Every registered taxable person shall himself
assess the taxes payable and furnish a return
for each tax period. This means GST continues
to promote self-assessment just like the
Excise, VAT and Service Tax under current tax
regime
 Provisional Assessment

An assessee can request the officer for

provisional assessment if he is unable to
determine value or rate.
 Scrutiny of Returns

The proper officer can scrutinize the return to

verify its correctness. It is a non-Compulsory
pre-adjudication process. In simple words, it is
not mandatory for the officer to scrutinize
return. Scrutiny of  returns is not a legal or
judicial proceeding,i.e., no order can be
passed. The officer will ask for explanations on
discrepancies noticed.
 Summary Assessment

Summary Assessment is done when the

assessing officer comes across sufficient
grounds to believe any delay in showing a tax
liability can harm the interest of the revenue.
To protect the interest of the revenue, he can
pass the summary assessment with the prior
permission of the additional/joint
commissioner.
  Best Judgment Assessment

Assessment of non-filers of returns

If a registered taxable person does not file his return
even after getting a notice, the proper officer will
assess the tax liability to the best of his
judgment using the available relevant material.
 Assessment of unregistered persons
This assessment is done when a taxable person fails
to obtain registration even though he is liable to do so.
The officer will assess the tax liability of such persons
to the best of his judgement. The taxable person will
receive a show cause notice and an opportunity of
being heard.
 Demand and Recovery

Demand and recovery provisions are applicable

when a registered dealer has paid tax incorrectly
or not paid tax at all. It is also applicable when an
incorrect refund or ITC is claimed by the dealer.
Demands can arise in the following cases:
1. Unpaid or short paid tax or wrong refund
2. Tax collected but not deposited with the Central
or a State Government
3. CGST/SGST paid when IGST was payable and vice
versa.
THANK ‘U’