7/10/2017 1 [email protected]www.arsconsultants.net 1 10-Jul-17 S. No Topics Covered 1. Introduction to GST 2. Levy, Composition and Supply 3. Registration 4. Valuation 5. Input Tax Credit 6. Payment of Tax 7. Returns under GST Topics Covered [email protected]www.arsconsultants.net 2 10-Jul-17 8. Transition Provisions 9. Documentation Under GST 10. Accounts and records under GST ST Article 366 clause (12A) of the Constitution of India, defines goods and services tax as – “goods and services tax” means any tax on supply of goods or services or both except taxes on the supply of . Introduction to GS [email protected]www.arsconsultants.net 3 10-Jul-17 goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption 1. Concept of Dual GST I S S l I S S l ST Intra‐State Supply CGST (9%) SGST (9%) Inter‐State Supply IGST (18%) CE Duty, Service Tax, etc. VAT, Entry Tax, Entertainment Tax, etc CE Duty (Hidden)+ CST / Service Tax Introduction to GS [email protected]www.arsconsultants.net 4 10-Jul-17 CENTER STATES SHARED b/w CG & SG 1.
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S. No Topics Covered1. Introduction to GST2. Levy, Composition and Supplyy, p pp y3. Registration4. Valuation5. Input Tax Credit6. Payment of Tax7. Returns under GSTTo
Levy CGST on intra-state supplies, except on alcoholic liquor, of value determined under Sec 15, at a rate not exceeding 20%, payable by taxable person
If E-Commerceoperator have no
1
CGST Act
Section 9
Supp
ly
Specify categories of G/S - taxpayable on Reverse Chargeb i
central tax on petroleum crude, high speed diesel, petrol, natural gas and aviation turbine fuel shall be levied from such date as may be notified
permission to be granted , if such person is not :‐a. Supplying service, other than supply of food, article of
human consumption except alcoholic liquorb. Supplier of non‐taxable goodsc. Making inter‐state outward supplies of goodsd. Supplying goods through an E‐ Commerce operatore. Manufacturing such goods as may be notified
All assessee regd. with same PAN to opt simultaneously for composition levyPR
OVIDED
FURT
HER
2. Levy
Sec – 10 Composition Levy( Contd…..)
Supp
ly
Taxable Person
‐shall not collect any tax‐nor be entitled to any creditof Input tax
If Taxable person not eligible forcomposition Levy , he shall be liable to:‐1. Tax (if any)2. Penalty , along with provisions of Sec
supply goods and/or services on behalf of other taxable persons
8. Input service distributor
9. Persons making supplies through
electronic commerce operator, who is
required to deduct tax U/S 52
10. Every E‐commerce operator
25(1): Person liable to be registered shall within 30 days of hisbecoming liable shall apply for registration
25(1): Person liable to be registered shall within 30 days of hisbecoming liable shall apply for registrationbecoming liable, shall apply for registration,
However a casual taxable person or a non‐resident taxable personshall apply for registration at least five days prior to thecommencement of business.
25(2): Registration ‐ state‐wise compulsoryb l l
becoming liable, shall apply for registration,
However a casual taxable person or a non‐resident taxable personshall apply for registration at least five days prior to thecommencement of business.
Revocation of Cancellation of Registration – within 30 days from cancellation – to Proper Officer. [Sec 30]
Section 15 (2)‐ Value of taxable supplyValue of supply = Transaction value
Inclusions (DATES)
Taxes, duties, cess, fees and chargeslevied under any statute other thanCGST / SGST / UTGST / GST(Compensation to states) Act ifcharged separately by the supplier. (a)
Subsidies directlylinked to the priceexcluding subsidies byCentral/StateGovernment. (e)
Expenses (Incidental)charged by supplierbefore or at the time ofdelivery/supply of thegoods/services. (c)4.
Provided discount has been duly recorded in the invoice issued
Discount is in terms of agreement entered into at or before the time of such supply.
ITC has been reversed by the recipient as is attributable to the discount on the basis of document issued by the supplier.
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Rule 1Consideration not wholly in money, Value =•Open market Value of such supply (a)
• consideration in money+ money value of other consideration (b)
• Value of supply of like kind and quality (c)
Rule 2B/w related and distinct person,Value =•Open market Value of such supply (a)
• Value of supply like kind and quality (b)
• As per rule 4 or 5 (c)
Rule 3Supply made/received through agent,Value= •Open market Value of such supply or 90% of the price charged by the supplier when sold to unrelated person (a)
Value of supply of goods or services or both based on costIf Value is not determinable under previous three rules, then it shallp ,be 110% of Cost of production or manufacture or cost of acquisitionof such goods or cost of such services.
Rule 5.
Residual methodWhere the value cannot be determined under rules 1 to 4, then ith ll b d t i d i bl d i i f
shall be determined using reasonable means under provisions ofsection 15 and these rules:Provided that in case of supply of services, the supplier may opt forthis rule, disregarding rule 4.
Some Definitions – for the purpose of this rule
(a) “open market value” of a supply of G/S ‐ means the full value in money,excluding the IGST, SGST, CGST. UTGST and the cess payable by a person in atransaction, where1. the supplier and the recipient of the supply are not related and2. price is the sole consideration,to obtain such supply at the same time when the supply being valued is made.
(b) “supply of goods or services or both of like kind and quality” means anyth l f G/S d d i il i t th t i t f th
other supply of G/S made under similar circumstances that, in respect of thecharacteristics, quality, quantity, functional components, materials, andreputation of the G/S first mentioned, is the same as, or closely or substantiallyresembles, that supply of goods or services or both.
Taxable l ITC Available
Section 16‐ Eligibility and conditions for taking inputtax credit (read with Rule 1,2 of ITC Rules)
t
Credit of input tax charged on supply of goods or services
16(2): If input recd in lots ‐ credit will be allowed on receipt of last lot
S 16(2) d R l 2 If t i t id b li ithi 180 d f i f i it Sec 16(2) and Rule 2: If tax is not paid by supplier within 180 days of issue of invoice, ITC claimed shall be added in output liability of recipient
16(3): If depreciation is claimed in tax component of cost of capital goods under Income Tax Act, 1961 – credit
16(4): Time limit to avail ITC – due date of furnishing of return U/s 39 for Sept of 5. Inpu
account of Fraud,detention & releaseof goods andconfiscation
destroyed, written off ordisposed of by way ofgift or free samples
Section 49‐ Payment of tax, interest, penalty and other amounts, read with Rule 1,2,3 of Payment of Tax Rules
x Electronic Cash Ledger (FORM GST PMT‐05)
Credited:Deposit of tax, interest, penalty, fee or other amount by a taxable person through internet banking, NEFT, RTGS, Debit/ Credit Cards or any other mode
(i) Internet Banking through authorized banks;(ii) Credit card or Debit card through the authorised bank;(iii) NeFT or RTGS from any bank;(iv) Over the Counter payment (OTC) through authorized banks for deposits up to Rs. 10,000/‐ per challan per tax period.
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Sec. 49(5) Manner of utilization of ITCInput Tax Credit
Step 1Every registered taxable person shall furnish the details ofST Every registered taxable person shall furnish the details ofoutward supplies (in FORM GSTR ‐1) of goods or services on orbefore the 10th day of the month succeeding the tax period andsuch details shall be communicated to the recipient of the saidsupplies (in Part A of FORM GSTR – 2A). [Ref: Sec 37(1) readwith Rule 1]
Details of outward supplies shall include the details of. Returns und
Details of outward supplies shall include the details of Invoices Debit notesCredit notes Revised invoices
7.
Step 2
1. Every registered taxable person (recipient) shall verify, validate, modify or, delete the details relating to outward supplies communicated toST relating to outward supplies communicated to prepare the details of his inward supplies. [Sec. 38(1)]
2. Every registered taxable person (recipient) shall furnish the details of inward supplies (in FORM GSTR 2) of goods or services including tax payable on reverse charge basis and under the IGST Act, between 10th and 15th of the month
3. The details of supplies modified, deleted, included or furnished by the recipient shall be communicated to the supplier (in FORM GSTR 1A). [Sec 38(3), Rule 1(3)]
7.
Step 3
ST
Every registered taxable person whohas been communicated the detailsshall either accept or reject thedetails on or before 17th day of themonth succeeding the tax periodand the details furnished by him inFORM GSTR ‐1 shall stand amended. R
FORM GSTR 1 shall stand amendedaccordingly [Sec. 37(2), Rule 1(1)]7.
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Every registered taxable person shall furnish the details of
Step 4
ST Every registered taxable person shall furnish the details of– inward and outward supplies of goods and/or services,–input tax credit availed,–tax payable,–tax paid and–other particulars. R
Entitled to credit of eligible duties /taxes on inputs held in stock
Conditions
8.
i. Inputs to be used for making taxable supplies;ii. Eligible for ITC under this Act;
Conditions:
ons
iii. Invoice/documents to be in possession; if not in possession ofinvoice then he may take credit at the rate and in themanner prescribed subject to certain limitation andsafeguards.
iv. Invoice/documents issues not earlier than twelve monthspreceding the appointed day.
v. Supplier of service is not eligible for any abatement under theact.Tr
iv. Invoice/documents to be in possession; if not in possession ofinvoice then he may take credit at the rate and in the mannerprescribed subject to certain limitation and safeguards.
v. Invoice/documents issued not earlier than twelve monthspreceding the appointed day.
8.
Sec 142(1): Duty paid goods returned to place of business on or after the ons
Duty/tax, if any paid goods removed (earlier law)
Appointed dayAppointed day
Returned to any place of business Eligible
for refund
Max 6 monthsMax 6 months
Sec 142(1): Duty paid goods returned to place of business on or after the appointed day