This document provides an overview of the Goods and Services Tax (GST) implemented in India. It discusses key aspects of GST including: - GST unifies multiple indirect taxes into a single tax applied to the manufacture and sale of goods and the provision of services. - It consists of three types of taxes - Central GST, State GST, and Integrated GST for inter-state transactions. - GST subsumes many central and state taxes such as excise duty, VAT, service tax, etc. - Under GST, taxes will be levied at both the central and state level for intra-state transactions, while inter-state transactions will be taxed under

1. GST (Goods And Service Tax)
By Yashu Jindal
(B.com Hons., Semi qualified C.A)
Phone no:7982814781

2. General Rule No Tax can be levied without Authority of
law
Constitution of India gives the authority to
levy/impose taxes to central/state Government
LIST 1 LIST 2 LIST 3
UNION
LIST
STATE
LIST CONCURRENT
LIST
a) Entry 83-Duties of custom
b) Entry 84-Duties of Excise
c) Entry 92-Taxes on sale or
purchase of good within two
state
d) Entry 92C-Service Tax
a) Entry54 :-Taxes on sale
and purchase of goods
where sale/purchase takes
place within the state.
b) Entry 62:-Taxes on
Luxuries, entertainment
Entry10-Trust
and Trustees
Entry26-
Legal, medical and
other professions
.
Schedule VII of constitution of India
contain 3 list containing the entries over
which Government can impose tax

3. (a) Multiplicity of taxes at centre and state level like VAT , Entry
Tax, Central Excise , Service tax etc
(b) Cascading effect of tax.
(c) No input tax credit of central government taxes against state
government taxes
(d) Sales vs. services transaction
(e) Compliance under various tax laws .
(f) Lack of uniformity in rate and definition
(g) Valuation procedure under different act.
(h) Confliction provision of laws like- Invoice book
(i) Different Taxable Events
(j) Input tax credit of goods and services

4. OVERVIEW OF GST –GOODS AND SERVICE TAX
(a) Comprehensive single indirect tax levy on –
- manufacture Goods
- sales &
- Service Services
(b) Under GST law , there shall be three types of taxes-
(i) Central Goods and Service Tax (CGST)
(ii) State Goods and Service Tax (SGST)
(iii) Integrated Goods and Service Tax (IGST)
(c) GST will subsumed 9(Nine) Central Taxes and 8 State taxes/Duties.

5. 1. State VAT/Sales Tax (other than on alcoholic liquor for human
consumption and specified petroleum goods)
2. Purchase tax
3. Entertainment tax (except when levied by the local bodies)
4. Luxury tax
5. Entry tax and Octroi
6. Taxes on lottery , betting and gambling
7. Taxes on advertisement other than those published in the
newspaper and advertisements broadcast by radio or television
8. Surcharges and cesses relatable to supply goods and services
CA(Dr) Rajneesh Gupta
(M.com ,LLB ,Ph.d ,CA, CMA)
Phone no:- 9811243053,9717027070
CA(Dr) Rajneesh Gupta
(M.com ,LLB ,Ph.d ,CA, CMA)
Phone no:- 9811243053,9717027070

6. Central taxes and duties-
1. Central exercise duty (other than tobacco and its product and
specified petroleum goods)
2. Additional excise duty(Goods of special importance)
3. Additional excise duty (textiles and textile product)
4. Exercise duty under the medicinal and toilet preparation.
5. Additional Customs Duty (CVD)
6. Special Additional Duty of Customs (SAD)
7. Service tax
8. Central sales tax (levied and collected by states).It may be
partially phased out since few commodities are outside the
GST .
9. Surcharges and cesses relatable to supply of goods and
services.

7. Place of Supply - Relevance
Supplier
Consumer
Consumer
CGST
+
SGST
Inter – State
Supply
Local Supply
State Border
Consumer
International
Border
Export
Determining Inter-state or
Intra-state
Determining Import and
Export
Import

8. d)Transaction within state shall suffer e)Interstate transaction shall suffer
both CGST & SGST . IGST only
Example :- Example :-
Tax Invoice A
Supply value = Rs 100
+SGST @ 10%= Rs 10
+CGST @ 10%= Rs10
Total= Rs 120
Tax Invoice B
Suply value = Rs 100
+IGST @20% = Rs 20
Total = Rs 120

10. GOODS & SERVICE TAX

11. s
(iv) E-way bill transaction exceeding 50,000/-
(V) TDS of 2% on a bill of 2,50,000 or
more
(vi) Invoice shall have particulars and online submission
including HSN
(vii) Stock lying as on 30/06/2017 Tax Return to take
benefit to be taken.
(Viii)Return and records
IGST
- TDS Return CGST
SGST
- Yearly 37 returns
-Revision of return not possible
IGST
CGST
SGST

12. INPUT TAX CREDIT

13. UTILISATION OF INPUT TAX CREDIT
Order of Preference for using ITC relating to different taxes i.e. IGST/ SGST/ CGST:
Type of
credit
First preference Second
preference
Third
preference
Comments
IGST IGST CGST SGST
CGST CGST IGST - Credit pertaining to CGST cannot be
used for payment of SGST and vice-
versa
SGST SGST IGST -

14. III. Credit of CGST against SGST is not allowed &vice versa
Input CGST 10,000
Input SGST 5,000
SGST Payable 8,000 .Find Net SGST Payable.
Answer= SGST Payable =8,000
Central input SGST =(5000)
Net SGST Payable =3,000
IV. DELHI Branch NOIDA BRANCH
Delhi CGST input credit 5000 CGST payable 3000
Delhi SGST input credit 2000
Delhi IGST Input credit 1000
SGST payable 1000
IGST payable 500

15. GST(Goods and service tax):Transaction within
State
1. Two types of taxes shall be applied ie.SGST(State) & CGST
(central) on every invoice for transaction within state.
Example-
Dual GST Within State: Working Example
State
SGST
@10%
Timber
Market
Furniture
Market
Furniture
Retail
Final
consumer
A
B C
Centre
CGST
@10%
CGST paid Rs10
{Rs 20-Rs10 input tax credit}
SGST PAID=Rs10
{Rs20-Rs10 Input Tax Credit}
SGST Paid =Rs 10
CGST Paid=Rs 10
Tax Invoice A
Cost of Goods = Rs 100
SGST @ 10%= Rs 10
CGST @ 10%= Rs10
Total= Rs 120
Tax Invoice B
Cost of Goods = Rs 200
SGST @ 10%= Rs 20
CGST @ 10%= Rs20
Total= Rs 240
Invoice C
Cost of Goods = Rs 300
SGST @ 10%= Rs 30
CGST @ 10%= Rs30
Total= Rs 360
CGST Paid= Rs10
{Rs 30-Rs20 input tax credit
SGST PAID=Rs10
{Rs30-Rs20 Input Tax Credit}
1. Two types of taxes shall be applied ie.SGST(State) & CGST (central) on
every invoice for transaction within state.
Example-

16. GST(Goods and service tax):Interstate
• IGST shall be applied on interstate Transaction
IGST Model : Working Example
State Border
State X
SGST@ 10%
State DELHI
SGST Paid= Rs 10
Timber
Market
A B C
Tax Invoice B
Cost of Goods = Rs 200
IGST @20% = Rs 40
Total = Rs 240
Furniture
Market (Delhi)
Furniture
Retailer(Goa)
Final
consumer
State Y
SGST@ 10%
State GOA
Payment of SGST
SGST(M) Payable = Rs 30
Less IGST ITC = Rs 10
SGST Paid = Rs 20
Centre
CGST@10%
IGST @20%
Payment of CGST
CGST Payable = Rs 30
Less CGST ITC = Rs 0.0
Less IGST ITC =RS 30
CGST Paid = Rs 0.0
Payment of IGST
IGST Payable = Rs 40
Less CGST ITC = Rs 10
Less SGST (G) ITC=Rs 10
IGST Paid in cash=Rs 20
CGST Paid=Rs 10
Tax Invoice A
Cost of Goods = Rs 100
SGST @ 10%= Rs 10
CGST @ 10%= Rs10
Total= Rs 120
Tax Invoice C
Cost of Goods = Rs 300
SGST(M) @ 10%= Rs 30
CGST @ 10 % = Rs30
Total= Rs 360
BALANCE
IGST(Rs40-Rs30)

17. EXISTING SYSTEM GST SYSTEM
1) Present Taxation (a)Two separate VAT
system centre & state,
Excise & VAT, Service Tax
Dual Tax CGST &
SGST ie.all services
and goods on common
platform.
(b) Different Tax for goods
and services
Dual Tax for both goods
and services.
2) Custom Duty Will be taxed by central
government under
separate Act
No Change in BCD
CVD & SAD replaced
by IGST
3) Tax Structure Central Government(9)
State government(8)
SGST,CGST,IGST
4)Different Tax at
different Event
Excise duty-Manufacturing
Service tax - Service
VAT/SST - Sale
Supply of goods and
services
5) Place of taxation Taxable at the place of
sale of goods or rendering
of service
Consumption Based
Tax (Destination)

18. 6) Tax on Import Custom Duties
(BCD,CVD,SAD,CESS)
No change
Subsumed in GST,
Liable to IGST
7)Tax on export of goods
and
services
Exempted / Zero rated No change
8) Branch transfer and
consignment sale
(interstate)
Exempt against form ‘F’ Taxable under CGST
9)Cross Input Tax credit
against goods and
services
Not allowed except
excise and service tax
allowed
10) Transit sale and High
seas sales
Exempt Transit sale Taxable
High seas sales -
subjective
11) Sales against statory
form like ‘C’ , I, J, H
allowed Form will be abolished
12) Classification code of
goods
Excise duty :HSN
VAT :Non
Service Tax: Accounting
Goods : HSN
Services : Accounting
code

19. 13)Sales against
statutory form like ‘C’ ,
I, J, H
allowed Form will be
abolished
14)Classification code
of goods
Excise duty:HSN
VAT:Non
Service Tax:
Accounting Code
Goods : HSN
Services :
Accounting code
15)VAT/GST
registration
Excise & Service
Tax:PAN Based
VAT: TIN
PAN based
16)Collection of tax
and filing of return
VAT: As per state Law
Service
Excise Uniform
Uniform
17) VAT/GST registration Excise & Service
Tax:PAN Based
VAT: TIN
PAN based

20. PARTICULARS
AMOUNT
DR. PA RTICULARS
AMOUNT
CR.
TO OPENING STOCK 1,200,000.00 BY SALES 5,000,000.00
TO PURCHASES 3,500,000.00 BY COMMISSION 500,000.00
TO DIRECT EXPENSES 500,000.00 BY CLOSING STOCK 1,000,000.00
TO GROSS PROFIT 1,300,000.00
6,500,000.00 6,500,000.00
TO SALARIES 600,000.00BY GROSS PROFIT 1,300,000.00
TO CONVEYANCE TO STAFF 50,000.00
TO PHTOCOPIES 10,000.00
TO STAFF WELFARE 5,000.00
TO DEPRICIATION 80,000.00
TO MISC. EXPENSES 3,000.00
TO ADVERTISEMENT 2,000.00
TO OFFICE RENT 80,000.00
TO NET PROFIT 470,000.00
1,300,000.00 1,300,000.00
Assume all figures are excluding of duties and taxes
Calculate Output Tax and duty if a)Excise duty @10%
b)VAT /CST @ 12.00%
Particulars of A ltd for year ended 31st March
2017

21. Ans: Sales 5,000,000.00
Add: Excise Duty @ 10% ( A) 500,000.00
5,500,000.00
Add: VAT / CST @ 12.00% (B)
6,60,000.00
Total 61,60,000.00
Value of Services 500,000.00
Add: Service Tax @ 15% © 75,000.00
Total 575,000.00
Total Tax & duty to be paid (A)+(B)+©
12,35,000.00

22. Q 2. Calculate Tax under GST if
GST on Service : 15%
GST on Goods : 22%
Intra -State supply Amount
Value of Supply 5,500,000.00
Add: CGST 5,87,500.00
(5,00,000 x 7.5% +
50,00,000 X 11%)
Add: SGST 5,87,500.00
(5,00,000 x 7.5% +
50,00,000 X 11%)
66,75,000.00
Total Tax to be
paid 11,75,000.00
Inter -State
supply Amount
Value of Supply 5,500,000.00
Add: IGST 11,75,000.00
(5,00,000 x 15% +
50,00,000 x 22%)
66,75,000.00
Total Tax to be paid 11,75,000.00

23. (a) Planning for GST
- Stock lying as on 30/06/2017
- - 12 Months Bill to be kept
- 40% Benefit without bill
- Input tax C/F in vat Return Tax
- contract need to be reviewed
(b) Import of Services
(c) Sales tax on Sales of Fixed Assets
(d) Match your stock with Books of Accounts
(e) TDS/TCS to be deducted on transactions
(f) Working capital requirement--- Branch Transfer, consignment sales etc
(g) Compare your Tax rate with existing Rate and keep your stock properly .
(h) GST Number i.e. provisional registration
(i) Training of Staff, appointment of new staff
(i) Accountant Training
(ii) Interstate vs Intra state supplies need to under stand
(iiI) Interact with your consultant
(j) Maintenance of state-wise accounts and Trial Balance
(k) Need to understand Interstate and Intra state supply

24. ASSESS YOUR ADDITIONAL WORKING
CAPITAL REQUIREMENT