A Beginners Guide to GST 2017

Goods and Services Tax (GST) is an indirect tax
applicable throughout India which replaced
multiple cascading taxes levied by the central and
state governments.
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Excise Duty on Manufacturing
Rs.
Manufacturer (Factory) Sale value 100
Excise Duty paid on
removal of goods from
the factory @ 12.5%
12.5
Third Party Distributor Total 112.5
Excise duty charged on either on the sale value of the goods to the distributor
or on the Maximum Retail Price (MRP)

VAT on within the State Sale of Goods
Rs.
Retailer (Karnataka) Sale value 100
VAT paid in the State of
Karnataka on transfer of
property from the
retailer to the customer
@ 14.5%
14.5
Customer (Karnataka) Total 114.5
VAT charged on the transaction value/sale value between the retailer &
customer after the eligible discounts.

CST on between the States Sale of Goods
Rs.
Manufacturer
(Karnataka)
Sale value 100
CST paid in the State of
Karnataka (origin state)
on transfer of property
from the manufacturer
to the distributor @ 2%
2
Distributor
(Maharashtra)
Total 102
CST charged on the transaction value/sale value between the manufacturer and
the distributor, after the eligible discounts.

Service Tax on Provision of Service
Rs.
Service Provider
(Karnataka)
Service Value 100
Service Tax paid by
service recipient on
provision of services to
another person @
(14.5% +0.5% +0.5%)
15
Service Recipient
(Maharashtra)
Total 115
Service tax charged on value of the transaction between the service provider
and the service recipient)

Input Excise Duty/Service Tax
Credit Mechanism
Rs.
Vendor (Seller of Inputs) Sale of inputs 100
Excise Duty 12.5
Manufacturer (Producer
of Finished Goods)
Cost of input 112.5
Cost of manufacture &
Profits
87.5
Dispatch of Finished
Goods
200
Excise Duty 25
Wholesaler (Buyer of
Finished Goods)
Cost of Purchase 225
*Input excise duty of 12.5 paid by the manufacturer allowed as credit against
his output excise duty of 25. Manufacturer to pay only 12.5 to excise authorities
on dispatch of Finished Goods.

Input VAT Credit Mechanism
(same state transaction)
Rs.
Vendor (Seller of Inputs) Sale of inputs 100
VAT 14.5
Manufacturer (Producer
of Finished Goods)
Cost of input 114.5
Cost of manufacture &
Profits
85.5
Sale of Finished Goods 200
VAT 29
Wholesaler (Buyer of
Finished Goods)
Cost of Purchase 229
*Input VAT of 14.5 paid by the manufacturer allowed as credit against his
output VAT of 29. Manufacturer to pay only 14.5 to VAT authorities on sale of
Finished Goods.

Custom Duties on Import of Goods into
India
Rs.
Seller (USA) Assessable value 100
Custom Duties paid by
the buyer on imported
goods @ 29.44%
29.44
Buyer (India) Total 129.44
BCD charged on the assessable value. CVD charged on the assessable value or
MRP. SAD charged on assessable value +BCD +CVD + Cess

Indirect Tax Regime
Manufacturer 
+ Excise Duty + VAT/CST
Wholesaler 
+ VAT/CST
Retailer 
+ VAT/CST
Consumer (Pays all the taxes)

Example of Cascading Amount
of Tax Paid
Particulars Amount (Rs.)
Transaction 100,000
Central Sales Tax % 2%
Central Sales Tax 2000
Purchase Price 102,000
Margin Added by Seller 13,000
Sales Price 115,000
State Sales Tax (VAT)% 14.5%
State Sales Tax (VAT) 16,675
Final Price 131,675
Cascading amount of tax paid 290

Indirect Tax Regime –
Origin Based
ORIGIN STATE A CONSUMPTION STATE B
Seller (Karnataka) Inter State Sale/
Central Sales Tax
Buyer (Tamil Nadu)
CST payable in the state of Karnataka (The state from which the goods start
the movement collects CST)

GST Regime –
Consumption Based
ORIGIN STATE A CONSUMPTION STATE B
Seller (Karnataka) Inter State Supply/
Goods & Service Tax
Buyer (Tamil Nadu)
GST on supply of goods accrues to State B (consumption state) where the
goods are consumed.

Taxable Events–
Indirect Tax Vs GST
IDT
TAXABLE EVENTS
GST
TAXABLE EVENT
Manufacture
Sale of Goods
Provision of Service
Shift in Taxable Events Supply

In a nutshell:
Current Central
Govt. Taxes
Subsumed
under GST
Regime
Comments
Excise Yes
Customs Only CVD & SAD Basic Duty to
Continue
Service Tax Yes
Central Sales Tax Yes

In a nutshell:
Current State
Govt. Taxes
Subsumed under
GST Regime
Comments
VAT Yes
Excise No. Except on Industrial
Alcohol
Alcohol for human
consumption will be
subjected to State Excise
Entry Tax & Octroi Yes
Entertainment &
Luxury Tax
Yes
Stamp Duty No
Taxes on Vehicles No
Tax on Electricity No
Professional Tax No

In a nutshell:
Existing Central Taxes Existing State Taxes Taxes Under GST
Excise Duty
Service Tax
*BCD
CVD
SAD
Central Sales Tax
VAT
Entry Tax
Luxury Tax
Entertainment
Tax
CGST
SGST
IGST
*Basic Customs Duty (BCD) and other taxes such as property tax,
stamp duty, professional tax, electricity duty, municipal octroi etc. will
not be consolidated into GST and shall continue under their respective
existing legislations.

GST Tax Regime
Manufacturer 
+ SGST/UGST/CGST/IGST
Wholesaler 
Retailer 
Consumer (Pays GST)

Warning!
•Municipal level octroi & other
taxes will continue!
• GST only subsumes central and state taxes and the levies
charged by local bodies are still outside its ambit.
• Using this loophole, the Tamil Nadu government has
allowed its local bodies to charge 30% tax on movie tickets
over and above GST. GST is 18% for movie tickets up to Rs
100 and 28% for tickets that cost more than Rs 100.
• But because of local body levies, tax in Tamil Nadu will be
48% for tickets up to Rs 100 and 58% for tickets that cost
more. Not surprisingly, the cinema hall owners in the state
went on strike.

GST Rates
GOODS SERVICES
Nil Nil
5% 5%
12% 12%
18% 18%
28%* 28%

TOTAL TURNOVER 20 Lakhs
For Special Category States the Limit is Rs. 10 Lakhs
Arunachal Pradesh,
Assam, Manipur,
Meghalaya, Mizoram,
Nagaland, Tripura,
Himachal Pradesh,
Uttarakhand, Jammu &
Kashmir, Sikkim.
>

AGGREGATE TURNOVER
TAXABLE SUPPLIES
EXEMPT SUPPLIES
EXPORTS OF
GOODS/SUPPLIES
INTER STATE SUPPLIES
✚
✚
✚

REGISTRATION
NO YES
1. Restriction to
collect tax
2. ITC & CENVAT
Lapses
1. Authorised to collect
tax and pass on the
credit
2. Claim ITC and utilise
the same against
payment of taxes

ILLUSTRATION:
A Manufacturer has 6 Factories in Karnataka &
Sales Offices in 4 States (including Karnataka). He
also has a centralized Service Tax Registration in
Karnataka.
IDT
REGIME
GST
REGIME
6 Excise Registrations
4 State VAT Registrations
1 Service Tax Registration
4 GST Registrations
( 1 for each State)

Compulsory Registration
• Person making any inter state taxable supply
• Casual taxable person
• Person who are required to pay tax under
reverse charge
• Person who supply goods or services through e-
commerce operator
• Every electronic commerce operator
• Input service distributor

COMPOSITION SCHEME
•Conditions for availing Composition
Levy.
•Composition Scheme is Optional.
•Minimum prescribed rate of tax
under Composition scheme (% of
turnover in a state during the year)

Conditions
TURNOVER IN THE PRECEDING FINANCIAL YEAR
< 75 LAKHS (< 50 lakhs for special category states)
PAN LINKED
NO TAX COLLECTIONS
NO INPUT TAX CREDIT
ONLY INTRA STATE SALES

Conditions
• NEGATIVE LIST:
• No Composition Scheme for Manufacturer of:
• ICE CREAM
• PAN MASALA
• TOBACCO PRODUCTS

Prescribed Rates
TRADER MANUFACTURER RESTAURANT
CGST 0.5% CGST 1% CGST 2.5%
SGST 0.5% SGST 1% SGST 2.5%
Total 1% Total 2% Total 5%

Tax Credits
Particulars Manufacturer Wholesaler Retailer
Sales 10,000 12,000 15,000
Purchases 0 10,000 12,000
Value Added 10,000 2,000 3,000
Tax on Sales (10%) 1,000 1,200 1,500
Tax on Purchases (10%) 0 1,000 1,200
Tax to be paid 1,000 200 300

WHAT IS INPUT TAX?
(Available to Registered Dealer)
SGST UGST IGSTCGST
Includes Tax
Paid on
Reverse Charge
Does not
include Tax
Paid on
Composition
Levy

ADJUSTMENT OF TAXES - SUMMARY
CGST
1.
CGST
2.
IGST
SGST
1.
SGST
2.
IGST
IGST
1.
IGST
2.
CGST
3.
SGST
 
 
  

ADJUSTMENT OF TAXES - SUMMARY
CGST SGST
SGST CGST
✗
✗

‘Supply’ includes all forms of
supply of goods and/or
services such as sale, transfer,
barter, exchange, licence,
rental, lease or disposal made
or agreed to be made for a
consideration by a person in
the course or furtherance of
business.

Deemed Supply of Goods &
Services
• In case of Transfer of title in goods, OR, Right in goods, OR of
undivided share in goods without the transfer of title, OR,
transfer under an agreement which stipulates that property
will pass at a future date upon payment of full consideration
• In case of Land & Building, – Any lease, tenancy, easement,
license to occupy land or building ( both for commercial or
residential purpose, fully or partly)
• Treatment or Process , which is being applied to another
person’s goods is a supply

Deemed Supply of Goods &
Services
• Transfer of Business Assets –
• Where goods forming part of the assets of a business are transferred or
disposed of, and are no longer forming part of business OR Where goods
held for business are put to use for any private use, in such a way, as not
for business OR Where any person ceases to be a taxable person, any
goods earlier forming part of business, unless (a) the business is
transferred as a going concern to another person, or (b) the business is
carried on by a personal representative who is deemed to be a taxable
person With or Without for a Consideration
• Supply of Services – Following shall be treated as deemed “supply of
Services” :
• Renting of immovable property;
• Construction of a complex, building, civil structure or a part thereof,
including a complex or building intended for a sale to a buyer, wholly or
partly, except where the entire consideration has been received after
issuance of completion certificate;
• Temporary transfer or permitting the use or enjoyment of any intellectual
property right;

Activities which are not Supply
• Services by an employee to the employer in the course of or
in relation to his employment;
• Services of funeral, burial, crematorium or mortuary
including transportation of the deceased.
• Actionable claims, other than lottery, betting and gambling
• Sale of land / Sale of building after occupation or completion
will not attract GST. Thus, sale of building before completion
or before occupancy will attract GST.
• Such activities or transactions undertaken by the Central
Government, a State Government or any local authority in
which they are engaged as public authorities, as may be
notified by the Government on the recommendations of the
Council.

Composite Supply
• Composite supply means a supply is comprising two or more
goods/services, which are naturally bundled and supplied in
with each other in the ordinary course of business, one of
which is a principal supply. The items cannot be supplied
separately.
• Conditions for composite supply-
• Any supply of goods or services will be treated as composite
supply if it fulfills BOTH the following criteria:
1. Supply of 2 or more goods or services together, AND
2. It is a natural bundle, i.e., goods or services are usually
provided together in normal course of business. They
cannot be separated.

Composite Supply
• Where goods are packed, and transported with insurance, the
supply of goods, packing materials, transport and insurance is
a composite supply. Insurance, transport cannot be done
separately if there are no goods to supply. Thus, the supply of
goods is the principal supply.
• Tax liability will be the tax on the principal supply i.e., GST
rate on the goods.
• If the second condition is not fulfilled it becomes a mixed
supply.

Mixed Supply
• Mixed supply under GST means two or more individual supplies of
goods or services, or any combination, made together with each other
by a taxable person for a single price.
• Each of these items can be supplied separately and is not dependent on
any other.
• It shall not be a mixed supply if these items are supplied separately.
• For tax under GST, a mixed supply comprising two or more supplies
shall be treated as supply of that item which has the highest rate of
tax.
• A supply of a package consisting of canned foods, sweets, chocolates,
cakes, dry fruits, aerated drink and fruit juices when supplied for a single
price is a mixed supply. All can be sold separately. Assuming aerated
drinks have the highest GST rate, aerated drinks will be treated as
principal supply.

WORKS CONTRACT UNDER GST
• Works contract is a mixture of service and transfer of goods. Examples of works
contract are construction of a new building, erection, installation of plant and
machinery.
• Indirect Tax Regime
• Works contracts consists of three kinds of taxable activities as per the current
law. It involves supply of goods as well as supply of services. If a new product is
created during the works contract, then such manufacture becomes a taxable
event.
• Currently, the supply of goods is taxable in the form of VAT and the service is
taxable under service tax.
• If a new product appears in the process of completing a works contract, Central
Excise duty is levied.
• So, different aspects of one a single activity are taxed by different laws. This
causes a lot of confusion regarding treatment and taxability which is why there
are so many legal disputes in related to works contracts.

• GST Schedule II clearly mentions that the following are supply of
service–
• Construction of a complex, building, civil structure or a part thereof,
including a complex or building intended for sale to a buyer, wholly
or partly,
• Works contract including transfer of property in goods (whether as
goods or in some other form) involved in the execution of a works
contract
• Thus GST with its “One Nation One Tax” has removed the confusion
regarding the tax treatment.
• This means works contract will be treated as service and tax would
be charged accordingly (not as goods or part goods/part services).

• Input Tax Credit is NOT available
• GST Law mentions that input tax credit is not available for-
• Works contracts services when supplied for construction of
immovable property, other than plant and machinery, except
where it is an input service for further supply of works
contract service.
• Goods or services received by a taxable person for
construction of an immovable property on his own account,
other than plant and machinery, even when used in course or
furtherance of business.

• Composition Scheme is not Available
• Composition scheme is not available to works
contractors as it is treated as service under GST.
Composition scheme is only available to
suppliers of goods

Place of supply of Goods in
case of export and import:
S No. Particulars Place of Supply Example
1 Goods Imported into
India
Location of the
Importer
M/S XYZ of Rajasthan
has imported Granite
from Italy. Here, the
place of supply will be
Rajasthan
2 Goods Exported from
India
Location outside
India
M/S XYZ of Rajasthan
has exported goods to
United Kingdom.
Here, the place of supply
will be outside India i.e.
United Kingdom.

Place of supply of Goods in case
of domestic sale:
S. No Particulars Place of Supply Example
1 In case where
supply
involve
movement of
goods
Location where
movement
terminates for
delivery
M/S XYZ of Rajasthan has sold
goods to M/S ABC of Gujarat.
M/S XYZ has delivered the goods
to the godown of M/s ABC in
Gujarat.
Here, the place of supply will be
Gujarat.
2 In case where
supply does
not involve
movement of
goods
Location of goods at
the time of delivery
Authorized manager of M/S ABC
has come to Rajasthan and taken
delivery of goods from M/S XYZ.
He then transport these goods to
Gujarat. In this case as the goods
were handed over in Rajasthan,
the place of supply will be
Rajasthan.

INTRA - STATE SUPPLY
LOCATION OF SUPPLIER – KERALA
=
PLACE OF SUPPLY – KERALA
TAX = SGST ✚ CGST

INTRA – STATE SUPPLY
KERALA
Selling Price 1000
CGST @ 9% 90
SGST @ 9% 90
Total 1180
Total Tax 180
KERALA
Selling Price 2000
CGST @ 9% 180
SGST @ 9% 180
Total 2360
Total Tax Paid 180
(360 – 180)
ITC AVAILABLE ON PURCHASE
CGST 90
SGST 90
OUTPUT LIABILITY
CGST 180
SGST 180
NET LIABILITY PAID
CGST 180 – 90 = 90
SGST 180 – 90 = 90

INTER - STATE SUPPLY
LOCATION OF SUPPLIER – KERALA
≠
PLACE OF SUPPLY – ANDHRA PRADESH
TAX = IGST

INTER – STATE SUPPLY
Selling Price 1000
IGST @ 18% 180
Total 1180
Total Tax 180
Selling Price 2000
IGST @ 18% 360
Total 2360
Total Tax Paid 180
(360 – 180)
IGST 180
OUTPUT LIABILITY
IGST 360
NET LIABILITY PAID
IGST 360 – 180 = 180
KERALA  KARNATAKA  ANDHRA PRADESH

Selling Price 1000
CGST @ 9%
90
SGST @ 9%
90
Total 1180
Total Tax 180
Selling Price 2000
IGST @ 18% 360
Total 2360
Total Tax Paid 180
(360 – 180)
CGST 90
SGST 90
OUTPUT LIABILITY
IGST 360
ADJUSTMENT
IGST 0
CGST 90
SGST 90
Net = 360 -180 =180
KERALA  KERALA  KARNATAKA

Selling Price 1000
IGST @ 18% 180
Total 1180
Total Tax 180
Selling Price 2000
CGST @ 9% 180
SGST @ 9% 180
Total 2360
Total Tax Paid 180
(360 – 180)
IGST 180
OUTPUT LIABILITY
CGST 180
SGST 180
ADJUSTMENT
CGST – 180 -180 = 0
SGST – 180
Net Liability Paid=180
KERALA  KARNTAKA  KARNATAKA

case of domestic sale:
3 In case goods are
supplied on the
instruction of
third party.
.
Deemed place of
supply is principal
place of business of
third party. This is a
Bill to-Ship-to type
transaction.
M/S ABC of Gujarat has
directed M/S XYZ of
Rajasthan to deliver goods
to Mr. P in Kerala. Then as
per this deemed provision
treated as place of business
of M/S ABC i.e. Gujarat as
goods are moved on their
direction.

BILL TO SHIP
TO MODEL
UNDER GST

ABC LTD
MAHARASHTRA
PQR LTD
TAMIL NADU
Order to deliver the
goods XYZ LTD
KARNATAKA
Place of Supply =
KARNATAKA
Delivery of
Goods
ALL
BIILINGS
ON IGST
BASIS
Scenario 1

Supplier (Maharashtra) ABC LTD
Recipient (Tamil Nadu) PQR LTD
Third Person
(Karnataka)
XYZ LTD
Place of Supply Karnataka
ABC LTD to XYZ LTD IGST
XYZ LTD to PQR LTD IGST

ABC LTD
KERALA
PQR LTD
KARNATAKA
goods XYZ LTD
KERALA
Place of Supply =
KERALA
Delivery of
Goods
BILLINGS
ABC LTD
to XYZ
LTD –
CGST &
SCGST
BILLINGS
XYZ LTD
to PQR
LTD -
IGCST
Scenario 2

Supplier (Kerala) ABC LTD
Recipient (Karnataka) PQR LTD
Third Person (Kerala) XYZ LTD
Place of Supply Kerala
ABC LTD to XYZ LTD CGST + SGST
XYZ LTD to PQR LTD IGST

ABC LTD
KERALA
PQR LTD
KARNATAKA
goods XYZ LTD
KARNATAKA
Place of Supply =
KARNATAKA
Delivery of
Goods
BILLINGS
ABC LTD
to XYZ
LTD –
IGST
BILLINGS
XYZ LTD
to PQR
LTD –
CGST +
SGST
Scenario 3

Supplier (Kerala) ABC LTD
Recipient (Karnataka) PQR LTD
Third Person
(Karnataka)
XYZ LTD
Place of Supply Karnataka
ABC LTD to XYZ LTD IGST
XYZ LTD to PQR LTD CGST + SGST

case of domestic sale:
4 Where the goods
are assembled or
installed at site
Place of supply shall
be the location of
such installation or
assembly.
M/s ABC has ordered a
machine to be installed in
their plant in Gujarat from
M/S XYZ of Rajasthan. In
this case, the place of
supply will be Gujarat
irrespective of where the
goods are delivered.
5 Where the goods
are supplied on a
board the
conveyance such
as vessel,
aircraft, train or
motor vehicle
Place of supply shall
be the location at
which such goods
are taken on board
M/S XYZ of Rajasthan has
delivered water bottles to a
Mumbai bound flight at the
Jaipur airport. In this case,
Jaipur i.e. Rajasthan

Place of Supply of Service:
Location of the recipient of services
S. No Case Location of Recipient of Service
A Where a supply is received at a
place of business for which the
registration has been obtained
Such place of business
B Where a supply is received at a
place other than the place of
business for which registration has
been obtained (a fixed
establishment elsewhere)
Such fixed establishment
C Where a supply is received at more
than one establishment, whether
the place of business or fixed
establishment
The location of the
establishment most directly
concerned with the receipt of
the supply
D In absence of such places The location of the usual place
of residence of recipient

Placeof supplyService:
Locationof the provider/supplierof services
S. No Case Location of Recipient of Service
A Where a supply is made from a
place of business for which the
registration has been obtained
The location of such place of
business
B Where a supply is made from a
place other than the place of
business for which registration has
been obtained (a fixed
establishment elsewhere)
The location of such fixed
establishment
C Where a supply is made from more
than one establishment, whether
the place of business or fixed
establishment,
The location of the
establishment most directly
concerned with the provision
of the supply
D In the absence of such places The location of the usual place
of residence of the supplier

Time of Supply
• In GST regime, the tax collection event will be earliest of the
dates as given above. The various events like issuing
invoice/making payment in case of supply of goods /services
or completion of event-in case of supply of service triggering
the tax levy, confirms that the Government wants to ensure
tax is collected at the earliest point of time.
• This will be altogether a new concept for the current VAT and
Central Excise taxpayers.
• There are multiple parameters in determining ‘time’ of supply.
Thus, businesses will face a challenge in maintaining and
reconciling between revenue as per financials and as per GST.

TIME OF SUPPLY
a. The date of issuing of invoice
(or the last day by which
invoice should have been
issued)
b. The date of receipt of payment
Whichever is Earlier
For (a) & (b) 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 (b)- the date of receipt of
payment shall be earlier of-
1. The date on which he entered
the payment in his books
OR
2. The date on which the
payment is credited to his
bank account

Illustration
Date of Invoice 15/5/2018
Date of Receipt of Payment
10/7/2018
Date when Supplier recorded
receipt in books 11/7/2018
15/5/2018

When time of supply cannot be determined
(a) The date on which a periodical return has to be filed
(b) The date on which the CGST/SGST is paid, in any other
case.
OR

REVERSE CHARGE
• Meaning:
• Reverse charge means the liability to pay
tax by the recipient of supply of goods or
services or both instead of the supplier.
SUPPLIER RECEIPIENT
PAY TAX

APPLICABILITY OF RC
• Reverse charge may be applicable in case
of :
1. Supply of notified goods or services or
both. (12 services covered)
2. In case of supply by an UNREGISTERED
person to a REGISTERED person, where
such supply is of taxable goods or
services like RENT

Applicability of RC - Goods
•Cashew nuts, not shelled or
peeled
•Bidi wrapper leaves (tendu)
•Tobacco leaves
•Silk yarn
•Supply of lottery

Applicability of RC - Services
• Supply of Services by a goods transport agency
• Services supplied by an individual advocate
including a senior advocate by way of
representational services before any court, tribunal
or authority by way of legal services, to a business
entity.
• Services supplied by an arbitral tribunal to a
business entity.
• Services provided by way of sponsorship to a body
corporate or partnership firm.

Applicability of RC - Services
• Services supplied by a director of a company or a body
corporate to the said company or the body corporate.
• Services supplied by an insurance agent to any person
carrying on insurance business
• Services supplied by a recovery agent to a banking company
or a financial institution or a nonbanking financial company
• Supply of services by an author, music composer,
photographer, artist or the like by way of transfer or
permitting the use or enjoyment of a copyright covered
under clause (a) of sub-section (1) of section 13 of the
Copyright Act, 1957 relating to original literary, dramatic,
musical or artistic works to a publisher, music company,
producer.

WHAT ABOUT TAX PAID UNDER REVERSE
CHARGE
AVAILABLE AS
ITC
TO THE REGISTERED RECIPIENT PERSON
TAX PAID UNDER REVERSE CHARGE

Invoicing
REGISTERED DEALER UNREGISTERED
DEALER
Issue Invoice*
Issue Payment
Voucher
Purchase of Goods
*However the
Registered
Dealer can issue
a single invoice
for the
purchases at the
end of the
month.

Exemption from Reverse Charge Liability
REGISTERED DEALER UNREGISTERED
DEALER
Not liable to
pay tax under
Reverse
Charge
Mechanism
Intra State Purchase of Goods
Rs.
5,000/day
from all
suppliersIf amount is Rs. 6,000, liability will arise on total Rs. 6,000

Who is liable to deduct TDS under GST?
Following people are responsible for deducting tax-:
a. a department or establishment of the Central or State Government,
or
b. local authority, or
c. governmental agencies, or
d. such persons or category of persons as may be notified, by the
Central or a State Government on the recommendations of the
Council.

What is the rate of TDS to be deducted under GST?
The rate of TDS is 1% under GST.
Is there any limit for deducting TDS under?
If the total value of supply under a contract exceeds Rs 2.5 lakhs then the
person/entity would be liable to deduct TDS.
Time limit for payment of TDS?
The deductor would be liable to make the payment of TDS by the 10th day
of the next month.

TCS compliance for e-commerce sector*
• A clause has been inserted under GST law for all the e-commerce
aggregators.
• E-commerce aggregators are made responsible under the GST law for
deducting and depositing tax at the rate of 1% from each of the
transaction.
• Any dealers/traders selling goods/services online would get the payment
after deduction of 1% tax. It is a significant change which would increase
a lot of compliance and administration cost for online aggregators like
Flipkart, Snapdeal, Amazon etc.
• They would need to deposit the tax deducted by the 10th day of the next
month.
• All the traders/dealers selling goods/services online would need to get
registered under GST even if their turnover is less than 20 Lakhs for
claiming the tax deducted by Ecommerce operators.
* Held in abeyance temporarily

Return Form What to File? By Whom? By When?
GSTR 1 Details of
outward supplies
of taxable goods
and/or services
effected
Registered
Taxable Supplier
10th of the next
month
GSTR 2 Details of inward
supplies of
taxable goods
and/or services
effected claiming
input tax credit
Registered
Taxable Recipient
15th of the next
month
GSTR 3 Monthly return
on the basis of
finalization of
details of outward
supplies and
inward supplies
along with the
payment of
amount of tax.
Registered
Taxable Person
20th of the next
month

GSTR 4 Quarterly return
for compounding
taxable person.
Composition
Supplier
18th of the month
succeeding
quarter
GSTR 5 Return for Non-
Resident foreign
taxable person
Non-Resident
Taxable Person
20th of the next
month
GSTR 6 Return for Input
Service
Distributor
Input Service
Distributor
13th of the next
month
GSTR 7 Return for
authorities
deducting tax at
source.
Tax Deductor 10th of the next
month

GSTR 8 Details of supplies
effected through
e-commerce
operator and the
amount of tax
collected
E-commerce
Operator/Tax
Collector
10th of the next
month
GSTR 9 Annual Return Registered
Taxable Person
31st December of
next financial year
GSTR 10 Final Return Taxable person
whose
registration has
been surrendered
or cancelled.
Within three
months of the
date of
cancellation or
date of
cancellation order,
whichever is later.

GSTR 11 Return of Details
of Supply.
Every person who
has been issued a
Unique Identity
Number under
GST
The 28th of the
next month.

GSTR 1 10th of Next
Month
GSTR 2
GSTR 3
15th of Next
Month
20th of Next
Month
DETAILS OF SALES
DETAILS OF PURCHASE
MONTHLY RETURNS

GSTR 4
18th of Next
Following
Quarter
GSTR 6
GSTR 9
13th of Next
Month
31st
December
QUARTERLY RETURN FOR
COMPOSITION DEALERS
INPUT SERVICE
DISTRIBUTOR
ANNUAL RETURN

FILING OF LATE RETURNS
PENALTY OF RS. 100 per day
(Maximum of Rs. 5,000)

RETURN FLOW
10th 15th 20th
Of Next Month Of Next Month Of Next Month
Details of Outward Supply
of Taxable Goods &
Services
Details of Inward Supply
of Taxable Goods &
Services
Monthly Return
GSTR 1 GSTR 2 GSTR 3
GSTR 2A GSTR 1A
11th 17th
Of Next Month Of Next Month
Details of Supplies Auto
Drafted from GSTR1 & GSTR5
to recipient
Details of Auto Drafted
Supplies of Goods & Services

ELECTRONIC LEDGERS UNDER GST
E CASH LEDGER E CREDIT LEDGER
E LIABILITY
LEDGER
This ledger will serve as
an electronic wallet.
Where, the taxpayer
needs to make any
payment such as tax,
interest, penalty etc. and
he does not have enough
credit in his E-Credit
ledger, he will have to
simply add money to the
wallet and the money
will be utilized to make
the payment.
The input tax credit that
is self-assessed in the
monthly returns will be
reflected here under
three categories i.e IGST,
CGST & SGST. The
taxpayer will be able to
utilize the balance
shown in this account
only for payment of tax
as per the credit
utilization rules and no
other amount such as
interest, penalty etc.
This ledger will
show the total tax
liability of a
taxpayer after
netting off for the
particular month.
This ledger will be
auto populated.

Since GST will replace all other taxes on all goods and
services, we are in a single tax regime?
The life of small businessmen will become difficult under
GST because of computerised billing, need for Internet
connectivity?
Personal expenses will go up on account of GST making it
inflationary because tax rates have been fixed at higher
levels—18%, 28%?

Business will try to rob you of the GST benefits, but the
government won’t make money at your expense?
*What about the Maharashtra Motor Vehicle Regn. Tax?
For every good or service that has been brought under
GST, there won’t be any additional tax?
*The levies charged by local bodies are still outside its ambit?

GST will push up the economic growth?
GST will be charged twice, if you make payments via credit
card?
What will happen to the decision in Jindal Stainless Ltd &
Anr. Vs. State of Haryana & Ors. (2016)?

A Beginners Guide to GST 2017

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A Beginners Guide to GST 2017