What is GST, Framework, Benefits, Highlights of GST, Rate classification of Services, Rate classification of Goods, Payment by credit, Conditions for claiming credit, Features of registration process, Meaning of Supply, Salient features of supply(deemed supply), Time of supply-NCM, Time of supply-RCM, Content of Invoice, Returns, Records Import, Impact on Business

1. GOOD AND SERVICE TAX(GST)
“A tax system that is economically efficient, and
neutral in its application, distributionally attractive and
simple to administer.”
- DEA on GST reforms and intergovernmental consideration in India
By-AshishVerma

2. WHAT IS GST?
By-AshishVerma
 A comprehensive value added tax on goods and services levied at national level
 Collected on value added at stage of sale or purchase in the supply chain
 Destination based tax i.e. tax to be levied in receiving state
 No differentiate between goods and services as GST is levied at each stage in the supply
chain
 At all stages of production and distribution, taxes are passed through and tax is borne by the
final consumer
 All sectors and taxes with very few exceptions/exemptions
 Full tax credit on inputs- 100% setoff
 India will follow dual GST i.e. states and centre will tax simultaneously (only Canada and
Brazil follow this system)
 GST exists in over 150 countries

3. GST- THE FRAMEWORK
By-AshishVerma
Central levy
Excise Duty
Custom duty
(BCD,CVD, SAD)
Excise Duty under Medical and
toilet preparation act
Service Tax
Cesses and surcharges
State levy
Entertainment tax, Luxury tax
Taxes on betting and gambling
Taxes on advertisement
State cesses and surcharges
VAT/Sales Tax
Octrio/Entry tax
CGST SGST

4. BENEFITS OF GST
By-AshishVerma
 Easy compliance- a single platform to view registrations, returns, and payments for the
taxpayers
 Uniformity- A uniform tax structure all through out the supply chain
 Improved competition
 Relief in overall tax burden
 Better control
 Lower transaction cost because of availability of credit of tax paid
 Improved tax revenue
 Cross utilization allowed
 Destination based tax
 No cascading effects of Central or state tax i.e. no tax on tax

5. PROPOSED GST TAXATION
By-AshishVerma
Supply of Goods/Services
Intra-state supply
Inter-state supply
Export
Delhi
Delhi
Gurugram
Delhi
Gurugram
America
CGST+SGST
IGST
No taxes

6. PROPOSED GST TAXATION
By-AshishVerma
Import of Goods/Services
Goods
Services
America
America
Delhi
Delhi
BCD+IGST
IGST

7. RATE CLASSIFICATION FOR SERVICES (ILLUSTRATIVE)
By-AshishVerma
Exempt 5% 12% 18% 28%
Education Goods transport Works contract IT services,
Financial services
Cinema tickets
Healthcare Rail tickets (other
than sleeper
class)
Business Class air
travel
Branded
Garments
Betting
Residential
accommodation
Economy class air
tickets
Telecom services Gambling
Hotel/ Lodges with
tariff below INR 1000
Small restaurants Non-AC hotels,
Restaurant
services
AC-hotel serving
liquor
5 Star hotels
Cab aggregators Hotel/ Lodges with
tariff between INR
1000 and 5000
Hotel/ Lodges with tariff above INR 5000

8. RATE CLASSIFICATION FOR GOODS (ILLUSTRATIVE)
Exempt 5% 12% 18% 28% 28%+Cess
Fruits & Vegetables Frozen vegetables,
Packed food items
Frozen meat products,
Fruit Juices, Vegetable
Juices
Preserved vegetables,
Jams, Flavored refined
sugar
Water heater, TV,
Fridge, AC,
Oven, Washing
machine, ATM,
Weighing
machine,
Vacuum cleaner,
Shaver, Hair
clipper
Small cars(1%/3%cess)
Cereals Sugar Dry fruits, Namkeen Pasta, Cornflakes,
pastries, Cakes, Biscuits
Automobiles,
Motorcycle,
Aircraft
Luxury cars(15%cess)
Milk, Butter milk,
Curd
Skimmed milk, Tea &
Coffee
Beverages containing
milk
Mineral water, Chocolate,
aerated water,
Jaggery Drugs & Medicine Bio-gas fuel
Common salt Edible Oil Fertilizers Hair oil, Soap, Toothpaste Shampoo,
shaving creams,
after shave,
sunscreen, dye,
hair color, deo
Printed Books,
Newspapers,
Stamps
Indian Sweets Picture books, coloring
books
Note books, Capital
Goods, Industrial
intermediaries
Wall papers,
Ceramic tiles,
Chicken, Eggs,
Bread
Pizza bread, Rusk,
spices , cream
Sausage, Animal fat Sauces, soups, instant
food mix
Bangles, Bindi,
sindoor
Foot ware below Rs 500 Apparels above Rs 1000 Foot ware above Rs500
Coal Cell Phones Camera, Speakers,
Monitors
By-AshishVerma

9. PAYMENT BY CREDIT
By-AshishVerma
OUTPUT Liability Input credit IGST Input credit CGST Input credit SGST
SGST Available Not available Available
CGST Available Available Not available
IGST Available Available Available

10. CONDITIONS FOR CLAIMING INPUT TAX CREDIT
By-AshishVerma
Following conditions:
 He is in possession of tax invoice/ debit note issued by a registered
supplier or any other tax paying documents;
 He has received the goods and /or services or both;
The tax charged on such supply is paid to the Government (by way of
cash or by utilizing input tax credit)
He has furnished a valid return

11. FEATURES OF REGISTRATION PROCESS
By-AshishVerma
 PAN Based Registration: PAN will be Mandatory.
To be filled within 30days
 Deemed approval within 30days
 State wise registration of entities having presence in more than one
state
 Within a PAN, separate registration for separate business verticals
within a state possible

12. MEANING OF SUPPLY
By-AshishVerma
As per Sub-section (1) of Section 7, Supply includes:
1. all forms of supply of goods or services or both such as sale, transfer, barter,
exchange, license, rental, lease or disposal made or agreed to be made for a
consideration by a person in the course or furtherance of business;
2. import of services for a consideration whether or not in the course or furtherance
of business;
3. the activities specified in Schedule I, made or agreed to be made without a
consideration; and
4. the activities to be treated as supply of goods or supply of services as referred to
in Schedule II.

13. SALIENT FEATURES OF ‘SUPPLY’(DEEMED SUPPLY)
By-AshishVerma
 gift for a value exceeding Rs50000 by employer to employee
import of services for a consideration
import of service by a taxable person from a related person or from any of his
other establishments outside India, in the course or furtherance of business
supply of goods to a branch / unit located within the same State having separate
registration would also be liable to tax
Supply of goods by a principal to his agent where the agent undertakes to supply
such goods on behalf of the principal; or Supply of goods by an agent to his principal
where the agent undertakes to receive such goods on behalf of the principal

14. TIME OF SUPPLY-NCM
By-AshishVerma
Earliest of the following:
(a) date of issue of invoice; or
(b) due date of issue of invoice; or
(c) date on which supplier receives the payment;
(d) date on which *payment is entered in books of accounts of the supplier;
(e) date on which payment is credited to the bank account.
*earliest of the following dates: (a) The date on which supplier receives the payment; or (b) Date on which
payment is entered in books of accounts of the supplier; or (c) Date on which payment is credited to the bank
account.

15. TIME OF SUPPLY- RCM
By-AshishVerma
Earliest of the following:
(a) date of receipt of goods by the recipient; or
(b) date on which the payment is entered in the books of accounts of the recipient;
or
(c) date on which payment is debited in the bank account of the recipient; or
(d) date immediately following thirty days from the date of issue of invoice by the
supplier.

16. CONTENT OF TAX INVOICE
By-AshishVerma
(a) Name, address, GSTIN of the supplier
(b) Consecutive Serial Number unique for a financial year having alphabets, numerals and special characters being “-“ or “ / “
only
(c) Date of Issue
(d) Name and address of the recipient
(e) GSTIN/UID of the recipient, if registered
(f) HSN code of Goods or Accounting Code of Services
(g) Description of Goods / Services
(h) Quantity and Unit(or Unique Quantity Code) in case of Goods
(i) Total Value of Goods and Services
(j) Post discount/abatement taxable value of Goods and Services
(k) Rate of Tax, Separately for each type of tax (Central tax, State tax, Integrated tax, Union territory tax)
(l) Amount of Tax Charged
(m) Place of Supply along with the name of the State if the supply is an inter-State supply
(n) Place of delivery if different from place of supply
(o) Whether tax is payable on reverse charge
(p) Signature/Digital Signature of the Suppler or his authorized representative.

17. WHO IS REQUIRED TO FURNISH RETURNS FOR
OUT/INWARD SUPPLY
By-AshishVerma
All registered taxable persons are required to furnish the details of outward supplies of goods
and services effected during the tax period, except:
(a) Input Service Distributors
(b) Composition suppliers
(c) Non-resident taxable persons
(d) Persons liable to deduct tax at source as per Section 51
(e) Persons liable to collect tax at source as per Section 52
The details should be furnished electronically in the format prescribed in Form GSTR-1 Such
returns should be furnished on or before 10th of the succeeding tax period.

18. RECORDS TO BE MAINTAINED
By-AshishVerma
Following records:
a) Goods or services imported or exported.
b) Supplies attracting reverse charge along with documents (including invoices, bill of supply,
c) delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-
way bills;
d) Accounts of stock for each commodity received and supplied – containing particulars of opening
balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free
samples and balance of stock including raw materials, finished goods, scrap and wastage thereof (these
details need not be maintained by a composition dealer)
e) Advances received, paid and adjustments thereto;
f) Tax payable on reverse charge basis;
g) Tax payable, tax collected and paid, input tax, input tax credit claimed, together with a register of tax
invoice, credit note, debit note, delivery challan issued or received during any tax period;
h) names and complete addresses of suppliers from whom he has received the goods or services;
i) names and complete addresses of the persons to whom he has supplied the goods or services; and
j) the complete addresses of the premises where the goods are stored by him, including goods stored
during transit along with the particulars of the stock stored therein.

19. BENEFITS TO BUSINESS, STARTUPS
By-AshishVerma
 Higher Thresh hold limit of Rs 20 lakhs per annum for registration
 Central Registration with uniform procedure for all states
 Registration valid across India
 Uniform tax compliance requirements for each state
 Lower rate of tax for Business with turnover up to Rs 50lakhs per annum
 Invoicing will be easier for businesses as one rate would be adopted for all good and
services
 No need to pay VAT & Service tax instead only one tax i.e. GST
Lower transaction cost

20. By-AshishVerma
THANK YOU
By- Ashish Verma
Email id- aashish.verma08@hotmail.com