The topic was written in July 2017 when GST was introduced . Several Act and laws were amended after that . Therefore it's upto the reader how he/she will utilize this write-up.

1. About Author
I am not that kind of writer who writes a lot. Due to my profession I read a lot and talks a lot, writing
comes third. And I usually write to the government with heavy words mostly applications or in form
complain.SoI have alwaysbeen inhurry to wind it up as soon as possible. Here I tried to explain all my
understating.I may not able to give 100% insight knowledge but I assure my readers that I will try my
level besttomake thiswrite upinformative and in from a managerial perspective. So read at your own
risk. And the writer was a visiting faculty at various management colleges.

2. GST
The first thing came anyone’s mind that why a management grad needs to study taxation kind
of thing in his study. For most of the people, it’s boring, complex, based on numerical & figures
and directly related to finance & accounts. The general conception if you don’t belong to
Finance background you don’t need to waste your time. But unfortunately, it’s wrong and
absurd.
You must have been confused, why this writer tries to treat as same to all background
management students. The core reason behind this write up is to put some knowledge, which is
essential for a future CEO or for a future entrepreneur who leads an organization. That’s why
the most of the management syllabus designed and developed as per the need of market a
management grad need to study every aspect of a business entity from Accounts to
Operations.Apart from that, it is a necessity for a layman to understand, what is a tax and how
does it affect our day to day life. Here GST is an abbreviation of Goods and Service Tax.
In India, taxations divide into subsection I;e Direct Tax and Indirect Tax. In layman sense, you
can say its Income tax or property tax which is collected by the government directly from you
when you earn something more than the limit prescribed in the act. In developed countries
where the Per capita income is quite high, the direct tax is the main source of income for the
government and tax rate is quite high compared to India. In India, the scenario is quite
different than others, our per capita income is quite low and our direct tax rate is as low as 10
to 30% with additional 10% if you fall under super-rich category. In a developed economy, it
starts from directly 40 to 50%. For that reason, our government’s main income source is
Indirect Tax, literally indirect tax collects from everyone either he or she is a person or a
company or a small business. And the income from direct tax belongs to central government
only.
So there is an obvious question comes to your mind that how this thing works in a complex
country like India, where various governments work (that’s called federalism), and they have
their autonomy to enforce various laws. And how does a state government run if they don’t get
any money from the taxpayer? The answer is Indirect Tax; both governments collect tax
through the indirect tax and split the revenue apart from that state got various income through
the budget allocation by the central government. For the state, an indirect tax is a major source
of income. But these Indirect taxes are multi-layered and complex. It consists of majorly VAT
(value added tax), Luxury tax, Entertainment Tax, octroi (from state government), Excise,
Cenvat and service tax (from central government). The current indirect tax has one major
problem -the cascading effect. When you buy something, you have to pay a tax on the tax itself.

3. Introduction of GST
Everyone in this dying world needs an introduction to establish his/her credentials. A person
who is mature enough introduces himself as Mr./Ms./Mrs. followed by his name and surname.
Then he/she describes his/her specialties to the audience.Like that, a concept or law needs an
introduction which may contain how it had coined and how it came to existence and lot more.
From writer’s point view, Histories are boring and dull but it is essential. As a reader, you must
be thinking that the writer became an insane one hand he is saying that its boring, dull and
wastage of time another hand, he describes it’s essential. Believe or not there is no choice, you
have to read, I read a lot for this. So let’s start the introduction in a very different way and if
you are not able to find any stimuli/upshot to read, I am not the culprit, the system is.
The Timeline
 Canada was one of the first countries who implemented GST on 1st January 1991.It
replaces multilayered tax system and it majorly replaced hidden Manufacture Sales tax
of 13.5%.Right now GST rate is almost 5%.
 In the year of 1986, the Govt. of Singapore formed a committee to restructure their
then financial tax structure. And as per recommendations of the committee, on 1st April
1994 Govt. of Singapore introduced indirect tax system i.e. GST at a single rate 3%.
 Apart from these countries Hongkong and Australia adapt GST in early 2000.The
objective behind is to minimize complexity in the Tax system.
 In India, during 1999 then Prime Minister Mr. Atal Vihari Bajpayee formed an economic
advisor council consist of three former RBI governors to draft a framework of GST. And
Vajpayee set up a committee headed by the then finance minister of West Bengal,
Asim Dasgupta an alumnus of prestigious MIT to design a GST model.
 In 2002, the Vajpayee government formed a task force under Vijay Kelkar to
recommend tax reforms. In 2005, the Kelkar committee recommended rolling out GST
as suggested by the 12th Finance Commission.
 In 2004 UPA LED government had formed and the new Finance Minister P
Chidambaram in February 2006 continued work on the same and proposed a GST rollout
by 1 April 2010.
 In 2014, NDA formed a government under leadership Of Mr. Narendra Modi and after
seven months Finance Minister Mr. Arun Jaitely introduced the GST Bill in the Lok
Sabha.
 After several amendments, GST bill was passed in August 2016 and out of 29 states 18
states ratified the GST Bill and then President Pranab Mukherjee gave his assent to it.

4. GST VS OLD VAT?
You can treat this line as a disclaimer that both
GST and Old VAT based on the same fundamental
concept but these are different. Previously I
mentioned about the direct tax where a person
directly pays his/her tax to the government and
he/she cannot be shifted his burden to anyone
else. In indirect taxes, it can be shifted to another
person. So, the person liable to pay the tax can
collect the tax from someone else and then pay it
to the government; thus shifting the tax burden.
The GST tax falls in this category.
Before moving to numerical and figures we need to understand the purchase and selling
procedure. As a management student, you may have come across with phrases like primary
sale and secondary sale. Here we only discuss the secondary sale, though primary sales contain
a tax, it is not necessary for our context.It is a typical supply chain related activities where the
selling procedure moves through various channels and ultimately ended with the consumer.
In our selling or purchase procedure, it is two types i.e. Interstate and Intrastate.
 Intra State: - when registered dealer purchases some goods from a registered dealer
from another state.
 Inter-State: - when registered dealer purchases some goods from a registered dealer
within the same state.
Obliviously some doubt must be popping up that why the writer uses registered dealer term
here and without clarifying the term. A registered dealer means that entity registered under
the sales tax act whether it’s person or a company or government.
And again a dealer has to follow some procedure to order goods from another dealer. These
are as follows.

5. Before GST Procedure (GOODS)
Intra-state
 When a dealer finalizes his/her order from another dealer he/she should give his
quantity details and the seller generates a bill along with his mentioning his TIN (Tax
identify number ) details.
 The purchaser needs to raise a waybill or road-permit through concerned state sales tax
website.
 That e-waybill contain all details of the bill no, amount, quantity and transporter details
along with entering point of the concerned state.
 And e-waybill must be present with the transporter when it entering the buyer’s state.
 At the entry point sales tax officials entered all details of the waybill and crosscheck the
details which are present with the transporter, they may require physical verification.
 Once all details being verified, the transporter was allowed to enter.
Before GST,everybill carries2%CST (Central SalesTax) ontotal value.Andthere isanother1% ET (Entry
Tax) which will be added with buyers’ TIN no. Graphical representation the process.
Inter-State
Interstate selling or buying is lesser painful than the intra-state. Here seller put all the details of
buyer along with his TIN no on a bill and he may generate a road permit by putting all details
mentioned on the bill.
In the bill, only VAT (Value Added Tax) was mentioned and the rate was fixed by the
government. And most of the products were in between 5% to 14.5%.
Bill Generation
E-waybill From
Buyer By
puuting Bill
Deatils
Seller Ships
along with
Ewaybill
Transporter
presentEway
Bill At Entry
Gate
Verification Of
the E-waybill

6. Before GST Procedure (Service)
It was introduced 01.07.1994. Around 120 services were covered.Service tax was under the Central
Govt. The tax can’t be carried forward. The service provider has to pay the tax for the service he/she
rendered. We did not need to go through the Service tax. Mostly the calculations of these taxes are
easy and simple comparing to the VAT.
Before movingtoGST calculation we need to understand the calculation of VAT, then we can compare
boththese system. Itmayraise some concernin yourmindthat whyauthor tries to omit the service tax
part and onlyfocusesonVATcalculation. The reason is its simple. Let’s have an example, if you have a
postpaid connection, you can see a tax amount directly drawn from the bill and it added with the
amount.That amount was collected&depositedbythe service provider.Thatmeansyouare ultimately
paying for the service usage. But in some cases, it comes with VAT, like in a restaurant. We also cover
that part.
It’s always been challenging task for anyone to move out of his comfort zone and entering into
a new phase. In our federal system where the states are having autonomy to decide their
financial structure, it was a challenging task for the central government to convince them for
GST. Previous calculation of VAT is as follows.
VAT
Vat is a tax on value addition. It’s confusing, is not it? Let’s move to our calculation part.
STAGE 1
Mr. A is the owner of Z Company who produces shoe. And Mr. A purchased leather of 100 and
the tax rate is 10 % and there is no loss or profit. Then he pays Rs10 as tax and the final product
sold at Rs 110 (Rs 100+Rs 10tax).
STAGE 2
Mr. B who is a wholesaler of shoes purchased from Company Z at Rs 110. And resale the
product with the profit margin of Rs 50. On that resale transaction, he has to pay another 10%
tax. Then the final value comes around (Rs 110 cost +50 profit) =160+ Rs 16 (10%tax) =176

7. STAGE 3
Mr. C who is an owner a retail shop purchased from Mr. B’s business at Rs 176 and he sold the
product by adding a margin of Rs 24. On his resale, he has to pay another 10% tax. That means
cost to consumer will be (Rs176 cost + 24profit) =Rs 200+20(10% tax on 200) = Rs 220
Here we saw that customer pays Rs220 where the actual value of the product is Rs 184 without
taxes.The tax liability passes through every stage and ultimately paid by the consumer. But at
value addition stages (Profit) tax increases. This is called the Cascading Effect of Taxes where a
tax is paid on tax and the value of the item keeps increasing every time this happens.
When Mr. B Files his return he claims Rs 10 tax which he paid to Mr. A’s company that means
he is liable to pay Rs 6 = Rs16 (what he collects)- Rs 10 (what he paid)
And Mr. C has to pay Rs 4 = Rs 20 (what he collects) - Rs 16(what he paid) on his tax return.
Apart from that Mr. A has to pay Rs 10. That means the total amount collected by the
government is Rs 20= (Rs10+Rs6+Rs 4).
It’s an interstate example. If we try to understand the calculation by graphics, it would be easier
to understand.
Transaction Actual Cost Tax Amount Actual Liability Total
Raw Material 100 10 10 110
Wholesaler
margin Rs 50
110 16 6 176
Retailer Margin
24
176 20 4 220
Total 176 20 220
If Mr. A is situated in Delhi and Mr. B is Odisha then the calculation would be totally different.
The calculations are as follows.
Stage 1
In this case, Mr. A has to register his firm under CST (Central Sales Tax) apart from Delhi vat. Mr
charged 2% CST on bill value. The Final value comes down to rs 102= 100+Rs 2(2%CSt).
Stage 2
Here Mr. B purchased the product from Mr. A at Rs 102 but he paid 1% ET (entry tax). That
means the valuation comes around Rs 103. He fixed the price of the product at Rs 153 excluding
tax. That means 10% tax ( Rs 15.30) will be added to the profit.The total Amount would be Rs
168.30.

8. Stage 3
When Mr. C purchased the product from Mr. B and adds his profit of Rs24. The retail value with
comes Rs 192.30 excluding tax. Inclusive all taxes it will be coming around Rs 211.53 (Rs 19.23
Tax).
Transaction Actual Cost Tax Amount Actual Liability Total
Raw Material 100 2 2 102
Wholesaler
margin Rs 50
102 16.30 16.30 168.30
Retailer Margin
Rs 24
168.30 19.23 2.93 211.53
Total 168.30 21.23 211.53
In this case, the wholesaler paid a hefty amount (Rs16.30) to the Govt of Odisha, whereas Delhi
government losses around Rs 10 in the process. Total tax burden increases overly.Though,
there are some processes where the Govt of Delhi can adjust his revenue losses. But still, there
is a huge gap. For that we need GST.

9. Why do we need GST?
It’s a million dollar question for the reader, why we migrated from old system to the new one?
If our GDP is increasing constantly then it’s not a necessity to migrate from old to GST. But the
answer lies in old taxation system itself. In India, we had 33 sales tax laws. Most are different
from one another. And the tax rate of the same product varies in each state. The disparity
attracts for unlawful business practice.
In some state, the tax on Apparels was 5% where the neighboring state was 13.5% on same
apparels. In that case, the dealer imports the product through another dealer where the tax is
5% and then smuggle the goods to that state where the tax was 13.5%. Ultimately the state lost
his revenue. And there was another huge problem was at entry gates. Trucks and Lorries were
waiting for a significant time to get in. And the level of corruption was quite high in those gates.
Usually, a truck which was originated from Delhi to Odisha needed minimum 10-12 days to
reach the destination. That means it takes 12 days to cover 1800kms at a speed 150km per day.
The loss of man-hour days is quieted significantly in all these processes. For tax professional,
it’s a hectic process to adjust CST along with State Vat. And he or she has to follow another set
of law for service.
To make it simple, we need a robust tax act which covers all India without any disparity in
taxable goods or services. In 122nd constitutional amendment Bill, the government introduced
GST in India it and it was applied from 1st of July 2017.
Why is GST so big deal?
GST is a comprehensive, multi-stage, destination-based consumption tax on levied at every
stage of value addition in the lifecycle of a product. To understand this better, let us look at
each of the terms in detail:
Comprehensive: GST will subsume all of the current indirect taxes. Plus, by bringing in a unified
taxation system, across the country, it will ensure that there is no more arbitrariness in tax
rates.
Multi-stage: GST is levied each stage in the supply chain, where a transaction takes place.
Value-addition: This is the process of adding to the value of a product/ service at each stage of
its production, exclusive of initial costs. Under GST, the tax is levied only on the value added.
This is done through.

10. Destination-based consumption: Unlike the current indirect taxes, GST will be collected at the
point of consumption. The taxing authority with appropriate jurisdiction in the place where the
goods/ services are finally consumed will collect the tax.
For example: Again Mr. A comes into the scenario who is having a shoe factory in Delhi and he
shipped his product to Odisha. Odisha is consumer state whereas Delhi is producer state.
And all tax revenue comes under GST.
The impact of GST on Import and Export is negligible. Imports mechanisms treat same as it’s
produced locally whereas Exports are not falling under GST due to the place of consumption is
outside of India. Though imported goods may draw some additional tax like a customs duty it’s
one time and it’s added with cost itself.
CGST/IGST/SGST
Before moving into technicality, we should familiar with process and terms. Examples are the
best way to convey your message.
To determine whether Central Goods & Services Tax (CGST), State Goods & Services Tax (SGST)
or Integrated Goods & Services Tax (IGST) will be applicable in a taxable transaction, it is
important to first know if the transaction is an Intra State or an Inter-State supply.
 Intra-State supply of goods or services is when the location of the supplier and the
place of supply i.e., location of the buyer are in the same state. In Intra-State
transactions, a seller has to collect both CGST and SGST from the buyer. The CGST gets
deposited with Central Government and SGST gets deposited with State Government.
 Inter-State supply of goods or services is when the location of the supplier and the
place of supply are in different states. Also, in cases of export or import of goods or
services or when the supply of goods or services is made to or by an SEZ unit, the
transaction is assumed to be Inter-State. In an Inter-State transaction, a seller has to
collect GST from the buyer.
CGST:- Under GST, CGST is a tax levied on Intra State supplies of both goods and services by the
Central Government and will be governed by the CGST Act. SGST will also be levied on the same
Intra State supply but will be governed by the State Government. The upper limit is 14% for the
time being.
SGST:-Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the
State Government and will be governed by the SGST Act. As explained above, CGST will also be
levied on the same Intra State supply but will be governed by the Central Government.

11. Note: Any tax liability obtained under SGST can be set off against SGST or IGST input tax credit
only.
IGST:-Under GST, IGST is a tax levied on all Inter-State supplies of goods and/or services and will
be governed by the IGST Act. IGST will be applicable on any supply of goods and/or services in
both cases of import into India and export from India.
Note: Under IGST,
 Exports would be zero-rated.
 The tax will be shared between the Central and State Government.
Example:-
Mr. A, who is a Delhi based manufacturer supplied goods worth Rs 1,00,000 to MR B who is a
Delhi based wholesaler. Mr. B supplied to MR C, who is a trader in Kolkata for RS 1,20,000. And
Mr. C sells to Mr. D (Darjeeling) who is a consumer for Rs 1,50,000.
Suppose CGST is 9%, And SGST is 9% then IGST 18% =CGST9%+SGST9% .
Since A is selling this to B in Delhi itself, it is an intra- state sale and both CGST and SGST will
apply, at the rate of 9% each.
B (Delhi) is selling to C (Bengal). Since it is an interstate sale, IGST will apply, at the rate of 18%.
C (Bengal) is selling to D also in Bengal. Once again it is an intra-state sale and both CGST and
SGST will apply, at the rate of 9% each.
First Case
A (Delhi) B(Delhi)
Rs 1,00,000 + TAX 18% (CGST 9%+SGST 9%) = 1,18,000
Here TAX 18% , RS 18,000 is an input tax for dealer B , and it would be subsequently adjusted
with his output tax. We already discussed about this effect.
Second Case
B (Delhi) C (Bengal)
Here B sold his product for Rs 1, 20,000 excluding taxes.

12. Rs 1, 20,000 + Tax 18 %( IGST) = Rs 1, 41,600
Here Tax is Rs 21,600. And B charged this TAX. When somebody collected tax for his product or
services, that tax is called output.
The total tax liability of dealer A is Rs 21,600-Rs 18,000= Rs3,600. But there are some
conditions, which we need to understand.
Any IGST credit will first be applied to set off IGST then CGST. The balance will be applied to
set off SGST. Since GST is a consumption-based tax, i.e., the state where the goods were
consumed will collect GST.
As I said, the objective behind this write up is to put some basic knowledge, that’s why we
didn’t need to go deep.
Third Case
C (Bengal) D(Bengal)
Here the consumer came into the scenario. Mr. C Sold his product at Rs 1, 50,000 excluding tax.
Rs1, 50,000 + TAX 18% (CGST 9%+SGST 9%) = Rs 1, 77,000
The tax paid by D is Rs 27,000. And C collected form D which is output tax for C. And his total
tax liability Rs27000 - RS21, 600= Rs 5400
Transaction Actual Cost Tax Amount Actual Liability Total
Manufacturer A 100000 18,000
(CGST+SGST)
18,000 1,18,000
Wholesaler(B)
margin Rs 20,000
120000 21,600 (IGST) 3,600 1,41,600
Retailer Margin
Rs 30,000
150000 27,000
(CGST+SGST)
5,400 1,77,000
Total 1,77,000
(consumer price)
27,000
Someone can draw an inference by looking at these figures that taxation on GST is simple
compared to previous VAT system .And all taxes are directly propionates with the profit.

13. When Tax is levied
A taxable event such as manufacture, sale, and provision of a good has to occur for the tax to
be collected. Under the current system, each taxable event is subject to multiple taxes such as
excise, VAT/ CST and service tax. But under GST, products will no longer have multiple taxes,
and will not incur excise duty as well as VAT at different points of time. There will no longer be
any difference between goods and services in terms of taxation.
An example of this is when we go out to eat at a restaurant. Earlier, the customer paid both
VAT and service tax on a single bill, but after GST is implemented there will be a single tax
charge on the bill amount.
This leads us to an important concept in GST - Time, Place, and Value of Supply of goods and
services.
Time, Place and Value of Supply under GST Explained
According to the law, the point of taxation means the point in time when goods have been
deemed to be supplied or services have been deemed to be provided. The point of taxation
enables us to determine the rate of tax, value, and due dates for payment of taxes.
The liability to pay CGST / SGST will arise at the time of supply as determined for goods and
services. There are separate provisions for time of supply for goods and time of supply for
services. The liability to pay CGST / SGST on the services shall arise at the time of supply as
determined by GST provisions.
How to Determine Time of Supply
The time of supply of goods/services shall be the earlier of the following dates: the date of
issuing an invoice (or the last day by which invoice should have been issued) OR the date of
receipt of payment, whichever is earlier. If the supplier of taxable goods/service receives an
amount up to INR 1000 in excess of invoice amount, the time of supply for the extra amount
shall be the date of issue of invoice (at the option of the supplier)
For both the above clauses, the supply shall be assumed to have been made to the extent it is
covered by the invoice or the payment (as the case may be). For the second clause, the date of
receipt of payment shall be the earlier of:
The date on which the dealer enters the payment in their books
OR
The date on which the payment is credited to their bank account.

14. For example, if the date of the invoice is 22nd September 2018, and date of receipt of payment
is 1st of November 2018. The date when the supplier recorded the receipt in his books is 2nd
November 2018.
Thus, the time of supply will be 22nd September 2018.
How to Determine Place of Supply
‘Place of Supply’ under GST is an important factor as it defines whether the transaction will
be counted as intrastate (i.e within the same state) or inter-state (i.e. between two states)
and accordingly the changeability of tax, i.e levy of SGST, CGST & IGST will be determined.
While determining the levy of taxes based on place of supply, two things are considered:
Location of Supplier: It is the registered place of business of the supplier
Place Of Supply: It is the registered place of business of the recipient
There are specific provisions for determination of the place of supply of goods which depend
on:
The place of supply of goods: where the supply involves movement of goods
The place of supply of goods: where the supply involves no movement of goods
The place of supply of goods: in case of export and import of goods
How to Determine the Place of Supply Of Services
GST is destination based tax i.e consumption tax, which means the tax will be levied where
goods and services are consumed and will accrue to that state.
Under GST, there are three levels of Tax, IGST, CGST and SGST and based on the ‘’place of
supply’’ so determined, the respective tax will be levied. IGST is levied where the transaction
is inter-state, and CGST and SGST are levied Where the transaction is intra-state.
It is almost same as Product but there are some conditions like if the recipient of services is
more than one recipient or physical establishment of the recipient is not available or vice a
versa.
REGISTERING UNDER GST
Here we already discuss basics of GST and calculation of GST.But we need to know whom
should come under this law and how they should fill their various forms. If you meet any of the
conditions listed below, you should obtain your GST registration.
 Your aggregate turnover in a financial year exceeds INR 20 lakhs (INR 10 lakhs for Special
category states)

15.  If your turnover includes supply of only those goods/services which are exempt under
GST, this clause does not apply
To calculate this threshold, your turnover should include the aggregate value of all taxable
supplies, exempt supplies, export of goods and/or services and inter-state supplies of a person
having the same PAN.
Points should be taken care Of
 Every person who is registered under an earlier law will take registration under GST too.
 Where a business which is registered has been transferred to someone, the transferee
shall take registration with effect from the date of transfer.
 Registration is mandatory for anyone who makes inter- state supply of goods and/or
services.
 Registration is mandatory for:
o Casual Taxable Person
o Non-Resident Taxable Person
o Agents of a supplier
o Taxpayers paying tax under reverse charge mechanism
o Input Service Distributors
o E-commerce operator or aggregator and their suppliers
o Person supplying online information and database access
o or retrieval services from a place outside India to a person
o in India, other than a registered taxable person
 A person with multiple business verticals in a state will need to obtain a separate
registration for each business vertical.
 PAN is mandatory to apply for GST registration (except for the non-resident person who
can get GST registration on the basis of other documents).
 A registration which has been rejected under CGST Act/SGST Act shall also stand
rejected for the purpose of SGST/CGST Act.
Exemption from GST Registration
The following shall not be required to obtain registration and will be allotted a UIN (Unique
Identification Number) instead. They can receive a refund of taxes on notified supplies of
goods/services received by them:
 Any specialized agency of UNO (United Nations Organization) or any multilateral
financial institution and organization notified under the United Nations Act, 1947
 Consulate or Embassy of foreign countries

16.  Any other person notified by the Board/Commissioner The central government or state
government may be based on the recommendation of the GST council, notify exemption
from registration to specific persons
Should You Opt for Voluntary Registration?
A person may opt for voluntary registration under GST even if he is not liable to be registered.
All the provisions of GST applicable to a registered taxable person will similarly apply to such a
voluntarily registered person also, i.e. he will be treated as a normal taxable person.
For example, assume there is a small shop owner with a limited turnover of Rs. 12-15 lakh. Such
a dealer may not be required to register under GST. However, he may be supplying inputs to a
nearby restaurant which has a turnover exceeding Rs. 20 lakh, is registered as a normal
taxpayer and is thus eligible for input credit. In such a scenario, a small dealer may register
voluntarily to pass on the benefit of input credit to his buyer.
Apart from this the government also introduced composition scheme for small manufacturers,
traders and for the restaurant business. And it is totally based on Levy, that means they paid a
certain amount on the total revenue.
And for the time being the composition scheme’s limit is 1 corer turnover and for the hilly area,
it’s 75 lac. The tax structure for this scheme is 2% for the manufacturer,1% for the trader and
5% for the restaurant business. It is helpful for those people who can not claim input tax and
paid the total amount.
GST Returns - How and When to File Them
A return is a document that a taxpayer is required to file as per the law with the tax
administrative authorities. Under the GST law, a normal taxpayer will be required to furnish
three returns monthly and one annual return. Similarly, there are separate returns for a
taxpayer registered under the composition scheme, taxpayer registered as an Input Service
Distributor, a person liable to deduct or collect the tax (TDS/TCS).
It is pertinent to note that there are 11 GST returns as under:
 3 returns - Outward supplies (GSTR 1), Inward supplies (GSTR 2) and Monthly return
(GSTR 3)
 Return for compounding dealers (GSTR 4)
 Return by non-resident taxpayer (GSTR 5)
 Input Service Distributor (ISD) return (GSTR 6)
 Tax deducted at Source (GSTR 7)
 Annual return (GSTR 8)
 E-commerce operator and the amount of tax collected (GSTR 9)
 Return for Non-Resident foreign taxable person (GSTR 10)
 Details of inward supplies to be furnished by a person having UIN (GSTR 11)

17. It is pertinent to note that GSTR-3 would be entirely auto-populated through GSTR-1 (of
counterparty suppliers), own GSTR-2, ISD return (GSTR-6) (of Input Service Distributor), TDS
return (GSTR-7) (of counterparty deductor), own ITC Ledger, own cash ledger, own Tax Liability
ledger. However, the taxpayer may fill the missing details, to begin with.
As there are multiple returns, for most of the organizations, in GST regime, compliances are
expected to increase dramatically. Take the example of a service tax assessee, who currently
files 2 returns on an annual basis. Now, in GST regime, Service tax assessee could be required to
file as many as 61 returns (5 returns per month plus 1 annual return).
Harmonized System of Nomenclature(HSN)
It’s a product code developed by world customs organization. It comprises about 5,000
commodity groups; each identified by a six-digit code, arranged in a legal and logical structure
and is supported by well-defined rules to achieve uniform classification. The system is used by
more than 200 countries and economies as a basis for their Customs tariffs and for the
collection of international trade statistics. Over 98 % of the merchandise in international trade
is classified in terms of the HS. The HS contributes to the harmonization of Customs and trade
procedures, and the non-documentary trade data interchange in connection with such
procedures, thus reducing the costs related to international trade.
What is GSTIN?
For any dealer registered under state VAT law, a unique TIN number is issued by the state tax
authorities. A service provider is assigned a service tax registration number by the Central
Board of Excise and Custom (CBEC).
Going forward, in the new GST regime, all these taxpayers will get consolidated into one single
platform for compliance and administration purposes and will be assigned registration under a
single authority. The government has set up GSTN–a special purpose vehicle to provide the IT
Infrastructure necessary to support GST digitally. All of these businesses will be assigned a
unique Goods and Services Tax Identification Number (GSTIN).
Each taxpayer will be allotted a state-wise PAN based 15-digit Goods and Services Taxpayer
Identification Number (GSTIN).
 The first two digits of this number will represent the state code as per Indian Census
2011
 The next ten digits will be the PAN number of the taxpayer The thirteenth digit will be
assigned based on the number of registration within a state.
 The fourteenth digit will be Z by default The last digit will be for check code.
Conclusion
It’s veryearlytogive a conclusion aboutGST. But itcan be implementedeffectivelyif governmentbuild
properIT infrastructure andcreate awareness amongstakeholders.Anyhow ithadachievedit’sobjective
One nation One Rate & One tax.