Professional Documents
Culture Documents
Date: 24.04.2017
CONTENTS
Introduction
Tax structure: Existing and proposed & Example
GST Law
CGST and SGST (On intra-state transactions) IGST (on Inter
State Transactions), UTGST
Taxable person
Registration
Important definitions
Time of supply
ITC
TDS
Returns
INTRODUCTION
GST is the single most important tax reform after 1947
Goods and Service Tax is a comprehensive nationwide
indirect tax.
A common tax on
Goods Services
It shall extend to the whole of India excluding Jammu and
Kashmir.
GST is a destination based tax. This means that goods and
services would be taxed at the point they are consumed.
PROBLEMS WITH CURRENT TAXATION
SYSTEM
Multiplicity of taxes
and their cascading effects.
Difficulty in compliance
No ITC available between taxes levied by
central and state government.
BACKGROUND
Idea of GST dates back to year 2000, when Atal Bihari Vajpayee led
government initiated the discussion on GST by setting up an empowered
committee headed by Asim Dasgupta (Finance Minister, Govt. of West
Bengal). Then it was suggested by The Kelkar Committee in 2004. Dr. Vijay
Kelkar recommended national GST.
To Rajya Sabha
EXISTING GST
In India, GST will have a 'dual' structure, which means it will have 2
components
Central GST (CGST)
State GST (SGST).
They will both have separate powers to legislate and administer their
respective taxes, thus, equally empowering both Centre and state.
Introduction
CONTENTS
Tax structure: Existing and proposed & Example
GST Law
CGST and SGST (On intra-state transactions) & IGST (on Inter
State Transactions) & UTGST
Taxable person
Registration
Important definitions
Time of supply
ITC
TDS
Returns
PRESENT INDIRECT TAX STRUCTURE IN INDIA
Indirect
Tax
Central
State Tax
Tax
Entry Tax,
Service Sales tax/
Excise Customs luxury tax,
Tax VAT
etc.
Taxable Taxable
Taxable event Taxable event is
event is event is Taxable
is entertainment/
manufacture Provision of event is sale
Import/Export entry of goods
service
Proposed GST Regime
Proposed GST will replace the terms Manufacture, Sale, Provision of Service , Import
and Export, Entry of goods with one term Supply
Central goods and services tax(Central GST) (CGST)- Levy by Central Government on
Intra-State Supply of Goods and/ or Services
State goods and services tax(State GST) (SGST)- Levy by State Government Intra State
Supply of Goods and/ or Services
Integrated Goods and Service Tax (Integrated GST) (IGST)- Levy by Central Government
on Inter-State Supply of Goods and/ or Services
TAXES SUBSUMED IN GST
Imports Exports
at the rate specified in the Schedule to this Act and collected
in such manner as may be prescribed.
TAXABLE PERSON
(SECTION-2(107) READ WITH SEC 22 & 24)
Taxable services shall issue a tax invoice within the prescribed time.
Details- description, the tax charged thereon etc.
Amount of tax to be indicated in tax invoice and other documents.
Sec 34- Any registered taxable person who issues or receives a credit
or debit note in relation to a supply of goods and/or services shall
declare the details of such credit or debit note, in the return for the
month during which such credit or debit note has been issued or
received or in the return for any subsequent month but not later than
September following the end of financial year
(Section-9) Levy of and Exemption from GST:
Date of Date of
receipt of making
goods payment
Time of Supply
30 days from
the date of Date of entry
issue of in books of
invoice by the recipient
supplier
TIME OF SUPPLY OF SERVICES (FORWARD CHARGE)
Time of Supply
Incase of Associated
Enterprises where
supplier of service is
Date of debit outside India, date of
entry in books by
in books
recipient or date of
payment, whichever
is earlier.
INPUT TAX
CREDIT
PRESENT SYSTEM OF ITC
(basic)
PROPOSED SYSTEM OF ITC
AND
ORDER OF UTILIZATION OF CREDIT
Tax Utilization of ITC
(in order of preference)
1st preference - CGST
CGST
2nd preference - IGST
1st preference - SGST
SGST
2nd preference -IGST
1st preference - IGST
IGST
2nd preference -CGST
3rd preference -SGST
ASSESSEE CAN CLAIM ITC ONLY WHEN THE
FOLLOWING CONDITIONS ARE SATISFIED:
Taxpayer must
possess tax
invoice/any other
taxpaying document
He has
Tax has
received the
goods or Conditions been paid
to Govt.
services
He has filed
return u/s 39
UTILIZATION OF ITC
CGST
1st preference
Input tax credit
CGST SGST
IGST
2nd preference
UTILIZATION OF ITC
CGST
SGST
SGST 1st preference
IGST
2nd preference
UTILIZATION OF ITC
CGST
2nd preference
SGST
IGST 3rd preference
IGST
1st preference
INPUT TAX CREDIT
(SECTION-16)
All existing returns under VAT/ Sales Tax, CST at political state for Non-GST
products
EXCISE RETURN FOR REFINERY UNITS FOR NON-GST PRODUCTS
GST RETURNS FOR EACH STATE
Details of outward supplies (Within 10 days after the end of such month)
Details of Inward supplies (Within 15 days after the end of such month)
GST Return - 20th day of the succeeding month
Compounding Taxpayer - 18th day after the end of quarter
Input Service Distributor - 13th day of the succeeding month
Tax Deductor - 10th day of the succeeding month
Annual Return- On or before 31st December following the end of FY
Late fees=
Failure to furnish
Rs. 100 for every day
details of outward/inward
during which such
supplies (u/s 37 & 38)
failure continues
returns u/s 39
(max of Rs. 5,000.)
returns u/s 45(final return)
Late fees=
Rs. 100 for every day during
which such failure continues
Failure to furnish Annual return (maximum of an amount
calculated at a % of his
aggregate turnover)
TDS
(SECTION-51)
CG or SG may mandate certain Departments,
Who Local Authority, Governmental agencies etc.
1% on payment or credit to supplier of taxable
Rate goods or services
The total value of such supply, under a
When contract, exceeds Rs.2.50 lakhs.
Within 10 days after the end of the month in
Deposit which such deduction is made.
The deductee shall claim ITC of the TDS
ITC reflected in the return of the deductor.
TDS Return Within 10 days from the end of the month in which
tax is deducted
GAURAV GUPTA, DFM PLHO