Understanding gst

1. S N G P & Co. +91 – 98500 08995sankhla.jignesh@gmail.com
CA Jignesh Patel
CHANGE PHOTO

3. Present Tax Structure
Customs Duty Excise Duty
CST Service Tax
Central Tax
State
Tax
VAT
Purchase
Tax
Luxury
Tax
Electricity
Duty
Enter-
tainment
Tax
Entry Tax
& Octroi

4. Taxes Subsumed
GST
VAT,
CST
Service
Tax
Excise
Duty

5. GST
CGST SGST IGST UTGST

6. Seller -
Maharashtra
Buyer -
Maharashtra
CGST +
SGST Seller –
Maharashtra
Buyer –
Gujarat
IGST

7. Within Maharashtra Sale
Present
VAT
GST Regime
CGST + SGST

8. Out of Maharashtra Sale
Present
CST
GST Regime
IGST

9. Levy of GST

10. Supply = Sale
Sale
Transfer
Barter
Exchange
Without consideration
Schedule I

11. Supply = Sale
Schedule I
Permanent transfer of
Asset (If ITC availed)
Related party transactions
Transactions between
Distinct Persons

12. No Levy of GST
Schedule III
Services by Employee
• Gift below Rs. 50,000/-
Sale of land and building
after completion

13. CHARGE MECHANISM

14. Reverse Charges Mechanism (RCM)
 Items specified by Government
Goods Transportation
@ 5%
• Any Factory
• Society
• Registered under
GST
• Company
• Partnership Firm
• 100%
Legal Service from
Advocate @ 18%
• Any business entity
• 100%
Services of Director
@ 18%
• Company
• 100%

15. Reverse Charges Mechanism (RCM)
 Purchase from Unregistered Person
 Example,
 Tea Expenses
 Labour Charges
 Rent
 Professional Charges
 Issue Invoice on receipt
 Voucher on payment

16. GST Liability
Liability to
pay GST
Invoice Raised
Due date of
raising Invoice
Payment
recorded
Payment
credited in
bank

17. Time of Issue of Invoice
Movement of
Goods
Before or
at time of
removal
No Movement
of Goods
Time of
delivery
or Making
goods
available
Continuous
Supply
Issue of
Statement
Services
Within 30
days

18. Value of Supply
 Bill Amount
 Including, any late payment charges

19. GST Liability - Material
Invoice Date
10.07.2017
15.07.2017
16.07.2017
01.08.2017
Material
Supplied
12.07.2017
13.07.2017
16.07.2017
01.08.2017
Payment
recorded
01.08.2017
01.08.2017
11.07.2017
02.08.2017
Payment
credited in
bank
03.08.2017
03.08.2017
13.07.2017
31.07.2017
GST Liability

20. GST Liability - Service
Invoice Date
10.07.2017
15.07.2017
16.07.2017
01.08.2017
Due Date (30
Days)
12.07.2017
13.07.2017
16.07.2017
01.08.2017
Payment
recorded
01.08.2017
01.08.2017
11.07.2017
02.08.2017
Payment
credited in
bank
03.08.2017
03.08.2017
13.07.2017
31.07.2017
GST Liability

21. Invoice
 Tax Invoice
• Name, address and GSTIN
• Serial Number
• Description goods
• HSN Code
• Value
• GST Rate
• Place of delivery
• Whether tax payable under Reverse Charge

23. Composition
 Turnover below Rs. 75 Lakhs
 No Exempt Supply
 No Inter-state sale
 Bill of Supply
 Sale inclusive of Tax
 Not ITC allowed
Manufacture
1% CGST +
1% SGST
Restaurant
2.5% CGST +
2.5% SGST
Others (Traders)
0.5% CGST +
0.5% SGST

25. Input Tax Credit
Tax paid on Purchase
Tax paid on RCM
Used in business
Conditions
• Tax Invoice
• Goods received
• Return filed
• Paid within 180 days

26. Input Tax Credit
 Partial disallowed
o Personal use
o Exempt Sale
Taxable -
90%
Exempt -
10%
Sales
Taxable -90% Exempt - 10%

27. Motor Vehicles
Food & beverages and Outdoor catering
Beauty treatment, Health services and Cosmetic & plastic surgery
Membership of club
Works contract services
ITC on construction of immovable property for own use
Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
No Input Tax Credit

28. ITC Set-off
CGST
CGST
IGST
SGST
SGST
IGST
IGST Input
IGST
CGST
SGST

30. MINIMUM OF 37
GST RETURNS

31. Details of Sales –
10th
Details of Purchases
– 15th
Reconciliation of
differences – 16 &
17
Payment of Tax and
filing of Final Return
– 20th

32. Monthly Return
by Supplier
Matching with
Return of Buyer
Matched claims
accepted
Unmatched claims
communicated
Discrepancy solved –
credit allowed
Discrepancy not solved –
added to liability
Matching Concept
10th 15th
16 &
17th
Credit to Customer &
Liability of Supplier
Liability added to
Customer

33. Matching Concept
Sr. No. Date Bill No. Basic Tax @ 18% Total
1 01.07.2017 1 10,000 1,800 11,800
2 05.07.2017 5 10,000 1,800 11,800
3 10.07.2017 10 10,000 1,800 11,800
ABC Pvt. Ltd. - Seller
Sr. No. Date Bill No. Basic Tax @ 18% Total
1 01.07.2017 1 10,000 1,800 11,800
2 05.07.2017 5 10,000 1,800 11,800
3 10.07.2017 10 10,000 1,800 11,800
4 15.07.2017 15 5,000 900 5,900
XYZ Pvt. Ltd. - Buyer

34. Matching Concept
Sr. No. Date Bill No. Basic Tax @ 18% Total
1 01.07.2017 1 10,000 1,800 11,800
2 05.07.2017 5 10,000 1,800 11,800
3 10.07.2017 10 10,000 1,800 11,800
ABC Pvt. Ltd. - Seller
Sr. No. Date Bill No. Basic Tax @ 18% Total
1 01.07.2017 1 10,000 1,800 11,800
2 05.07.2017 5 10,000 1,800 11,800
3 10.07.2017 10 10,000 1,800 11,800
4 15.07.2017 15 5,000 900 5,900
XYZ Pvt. Ltd. - Buyer

35. Penalty
 Rs. 100/- per day
 Maximum Rs. 5,000/-

36. GST

37.  Registration ?
 VAT credit ?
 Stock ?
 Excise credit ?

38. Old VAT Credit
 All credits will be carried forward
 Conditions;
o File old returns
o Application within 90 days

39. Excise Duty Credit
 Conditions;
o Other than manufacturer
• Bill available
• Application within 90 days
• Separate form of sale for next 6
months
• Separately identifiable
o Manufacturer
• Excise duty invoice
Excise Duty
Credit
GST Rate <
18%
40% of CGST
GST Rate
18% or more
60% of CGST

40. Unfinished Projects
Taxes Paid
Agreement
Registered
1% VAT
4.5% Service
Tax
Agreement
not Registered
Only 4.5%
Service Tax

41. Unfinished Projects
 Pay GST on complete amount
 Set-off of old tax paid available

42. Unfinished Projects
Section 142(11):
a) notwithstanding anything contained in section 12, no tax shall be payable on goods
under this Act to the extent the tax was leviable on the said goods under the Value
Added Tax Act of the State;
b) notwithstanding anything contained in section 13, no tax shall be payable on services
under this Act to the extent the tax was leviable on the said services under Chapter V of
the Finance Act, 1994;
c) where tax was paid on any supply both under the Value Added Tax Act and under 32 of
1994. 45 Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the
taxable person shall be entitled to take credit of value added tax or service tax paid
under the existing law to the extent of supplies made after the appointed day and such
credit shall be calculated in such manner as may be prescribed.

43. Anti-Profiteering
Sr.
No.
Particulars Present
System
1 Basic Rate 1,000
2 Excise Duty @ 12.50% 125
3 Cost 1,125
4 VAT @ 13.50% 152
5 Total 1,277
7 Profit Margin @ 10% (3) 113
8 Taxable Prices (3+7) 1,238
9 VAT @ 13.50% 167
10 Bill Amount 1,405
VAT Payable
11 Output VAT (9) 167
12 Input VAT (4) 152
13 Net VAT Payable 15
Sr.
No.
Particulars GST
1 Basic Rate (Cost) 1,000
2 Excise Duty @ 28% 280
3 Total 1,280
4 Profit Margin @ 10% 100
5 Selling Price 1,100
7 GST @ 28% 308
8 Bill Amount 1,408
GST Payable
9 Output GST 308
10 Input GST 280
11 Net GST Payable 28

44. GST Rates

45. Income Tax amendment
 Section 269ST
 Applicable from 01.04.2017
 No cash receipt exceeding Rs. 2.00 Lakhs
a) In aggregate from a person in a day;
 Received Rs. 2.25 Lakhs against two different bills
b) In respect of single transaction;
• Bill amount Rs. 3.10 Lakhs received 1.60 Lakhs & Rs. 1.50 Lakhs on different dates
c) In respect of transaction relating to one event or occasion from a person
• Occasion – Marriage

46. Specified Financial Transactions
Return
 Applicable to all audit cases
 Due Date 30.06.2017

48. Questions / Suggestions

49. Why worry and have wrinkles
When you can smile and have
Than
k
You..