SlideShare a Scribd company logo
Volume XV Part 3 May 10, 2016 19 Business Advisor
Basic tenets of GST
Dr Sanjiv Agarwal
Generally, the dealers registered under GST
(manufacturers, wholesalers and retailers and service
providers) charge GST on the price of goods and
services from their customers and claim credits for the
GST included in the price of their own purchases of
goods and services used by them. While GST is paid at
each step in the supply chain of goods and services,
the paying dealers don‟t actually bear the burden of
the tax because GST is an indirect tax and ultimate
burden of the GST has to be taken by the last customer.
Features of GST
GST can be divided into the following features to understand it better:
1. Charging tax
The dealers registered under GST (manufacturers, wholesalers and retailers
and service providers) are required to charge GST at the specified rate of tax
on goods and services that they supply to customers. The GST payable is
Volume XV Part 3 May 10, 2016 20 Business Advisor
included in the price paid by the recipient of the goods and services. The
supplier must deposit this amount of GST with the Government.
2. Getting credit for GST
If the recipient of goods or services is a registered dealer (manufacturers,
wholesalers and retailers and service providers), he will normally be able to
claim a credit for the amount of GST he has paid, provided he holds a
proper tax invoice. This “input tax credit” is set off against any GST (output),
which the dealer charges on goods and services which he supplies to his
customers.
3. Ultimate burden of tax on last customer
The net effect is that dealers charge GST but do not keep it, and pay GST
but get a credit for it. This means that they act essentially as collecting
agents for the Government. The ultimate burden of the tax falls on the last
and final consumer of the goods and services, as this person gets no credit
for the GST paid by him to his sellers or service providers.
4. Registration
Dealers will have to register for GST. These dealers will include the
suppliers, manufacturers, service providers, wholesalers and retailers. If a
dealer is not registered, he normally cannot charge GST and cannot claim
credit for the GST he pays and further cannot issue a tax invoice.
5. Tax period
The tax period will have to be decided by the respective law and normally it
is monthly and/or quarterly. On a particular tax period, which is applicable
to the dealer concerned, the dealer has to deposit the tax if his output credit
is more than the input credit after considering the opening balance, if any,
of the input credit.
6. Refunds
If for a tax period the input credit of a dealer is more than the output credit
then he is eligible for refund subject to the provisions of law applicable in
this respect. The excess may be carried forward to next period or may be
refunded immediately depending upon the provision of law.
7. Exempted goods and services
Certain goods and services may be declared as exempted goods and services
and in that case the input credit cannot be claimed on the GST paid for
Volume XV Part 3 May 10, 2016 21 Business Advisor
purchasing the raw material in this respect or GST paid on services used for
providing such goods and services.
8. Zero-rated goods and services
Generally, exports of goods and services are zero-rated and in that case the
GST paid by the exporters of these goods and services is refunded. This is
the basic difference between zero-rated goods and services and exempted
goods and services.
9. Tax invoice
Tax invoice is the basic and important document in the GST and a dealer
registered under GST can issue a tax invoice and on the basis of this invoice
the credit (input) can be claimed. Normally a tax invoice must bear the
name of supplying dealer, his tax identification nos., address and tax
invoice nos. coupled with the name and address of the purchasing dealer,
his tax identification nos., address and description of goods sold or service
provided.
10. GST administration
The Centre and the States would have concurrent jurisdiction for the entire
value chain and for all taxpayers on the basis of thresholds for goods and
services prescribed for the States and the Centre.
11. Accounts and GST credit
The Central GST and State GST are to be paid to the accounts of the Centre
and the States separately. It would have to be ensured that account-heads
for all services and goods would have indication whether it relates to Central
GST or State GST. Full input credit system would operate in parallel for the
Central GST and the State GST. Taxes paid against the Central GST shall be
allowed to be taken as input tax credit (ITC) for the Central GST and could
be utilised only against the payment of Central GST. The same principle will
The Centre and the States would have concurrent jurisdiction
for the entire value chain and for all taxpayers on the basis of
thresholds for goods and services prescribed for the States
and the Centre.
Volume XV Part 3 May 10, 2016 22 Business Advisor
be applicable for the State GST.
Cross utilisation of input tax credit for goods and services would be allowed.
However, no credit between CGST and SGST would be permitted, except in
the case of inter-State supply of goods and services under the IGST model.
12. Credit accumulation
The White Paper on GST states that refund/ adjustment of accumulated
credit should be completed in a time-bound manner. However, ideally, the
problem related to credit accumulation on account of refund of GST should
be avoided by both the Centre and the States except in the cases such as
exports, purchase of capital goods, input tax at higher rate than output tax
etc.
13. Collection procedure
To the extent feasible, uniform procedure for collection of both Central GST
and State GST would be prescribed in the respective legislation for Central
GST and State GST.
14. Periodical returns/PAN-based ID
The taxpayer would need to submit periodical returns, in common format as
far as possible, to both the Central GST authority and to the concerned
State GST authorities. Each taxpayer would be allotted a PAN-linked
taxpayer identification number with a total of 13/15 digits.
15. Assessment and scrutiny
Functions such as assessment, enforcement, scrutiny, and audit would be
undertaken by the authority which is collecting the tax, with information
sharing between the Centre and States.
(Dr Sanjiv Agarwal is Partner, Agarwal Sanjiv & Company, Jaipur.)
To the extent feasible, uniform procedure for collection of
both Central GST and State GST would be prescribed in the
respective legislation for Central GST and State GST.

More Related Content

What's hot

GST and transition provisions
GST and transition provisionsGST and transition provisions
GST and transition provisions
VIVEK NIGAM
 
Gst impact on manufacturer 21.07.2017
Gst impact on  manufacturer 21.07.2017Gst impact on  manufacturer 21.07.2017
Gst impact on manufacturer 21.07.2017
CA Dinesh Singhal
 
Input Credit Under GST & GST Presentation
Input Credit Under GST & GST PresentationInput Credit Under GST & GST Presentation
Input Credit Under GST & GST Presentation
CA-Amit
 
Impact of-gst-on-textile-industry
Impact of-gst-on-textile-industryImpact of-gst-on-textile-industry
Impact of-gst-on-textile-industry
TEXTILE VALUE CHAIN
 
Part 11- GST - REturn & AMP Refunds
Part 11- GST - REturn & AMP Refunds Part 11- GST - REturn & AMP Refunds
Part 11- GST - REturn & AMP Refunds
Hina juyal
 
Goods and service tax (gst) procedures
Goods and service tax (gst)  proceduresGoods and service tax (gst)  procedures
Goods and service tax (gst) procedures
MyGstMyTax
 
GST Input Tax Credit
GST Input Tax CreditGST Input Tax Credit
GST Input Tax Credit
MASOOM SEKHAR SAHOO
 
Are you ready to implement GST
Are you ready to implement GSTAre you ready to implement GST
Are you ready to implement GST
Ranga Swamy Singanamalla
 
Paradigm shift in compliances
Paradigm shift in compliancesParadigm shift in compliances
Paradigm shift in compliances
Shabbir Amreliwala
 
Pma 4 tax invoice
Pma 4 tax invoicePma 4 tax invoice
Pma 4 tax invoice
prakashnath
 
Demonetisation and income tax
Demonetisation and income taxDemonetisation and income tax
Demonetisation and income tax
oswinfo
 
Gst ppt-taxguru
Gst ppt-taxguruGst ppt-taxguru
Gst ppt-taxguru
Naatchammai Ramanathan
 
Migration to GST- Will a retailer get TAX Credit for the Excise duty?
Migration to GST- Will a retailer get TAX Credit for the Excise duty?Migration to GST- Will a retailer get TAX Credit for the Excise duty?
Migration to GST- Will a retailer get TAX Credit for the Excise duty?
Piyali Parashari
 
CV
CVCV
Gst - A Door Step Away
Gst - A Door Step AwayGst - A Door Step Away
Gst - A Door Step Away
Raghavapudi Avinash
 
Optitax's presentation on 'has gst stabilised, yes and no' 3 feb 18
Optitax's presentation on 'has gst stabilised, yes and no' 3 feb 18Optitax's presentation on 'has gst stabilised, yes and no' 3 feb 18
Optitax's presentation on 'has gst stabilised, yes and no' 3 feb 18
Nilesh Mahajan
 
Invoice & Payment of Tax under GST
Invoice & Payment of Tax under GSTInvoice & Payment of Tax under GST
Invoice & Payment of Tax under GST
Vijaya Kumar Kavilikatta
 
Tax Quest - November 2016 - GST Special
Tax Quest - November 2016 - GST SpecialTax Quest - November 2016 - GST Special
Tax Quest - November 2016 - GST Special
oswinfo
 
GST Transitional Period
GST Transitional Period GST Transitional Period
GST Transitional Period
B.H. Loh & Associates
 
GST Enrolment Process_ Spine Software Systems
GST Enrolment Process_ Spine Software SystemsGST Enrolment Process_ Spine Software Systems
GST Enrolment Process_ Spine Software Systems
Spine Software Systems Pvt. Ltd.
 

What's hot (20)

GST and transition provisions
GST and transition provisionsGST and transition provisions
GST and transition provisions
 
Gst impact on manufacturer 21.07.2017
Gst impact on  manufacturer 21.07.2017Gst impact on  manufacturer 21.07.2017
Gst impact on manufacturer 21.07.2017
 
Input Credit Under GST & GST Presentation
Input Credit Under GST & GST PresentationInput Credit Under GST & GST Presentation
Input Credit Under GST & GST Presentation
 
Impact of-gst-on-textile-industry
Impact of-gst-on-textile-industryImpact of-gst-on-textile-industry
Impact of-gst-on-textile-industry
 
Part 11- GST - REturn & AMP Refunds
Part 11- GST - REturn & AMP Refunds Part 11- GST - REturn & AMP Refunds
Part 11- GST - REturn & AMP Refunds
 
Goods and service tax (gst) procedures
Goods and service tax (gst)  proceduresGoods and service tax (gst)  procedures
Goods and service tax (gst) procedures
 
GST Input Tax Credit
GST Input Tax CreditGST Input Tax Credit
GST Input Tax Credit
 
Are you ready to implement GST
Are you ready to implement GSTAre you ready to implement GST
Are you ready to implement GST
 
Paradigm shift in compliances
Paradigm shift in compliancesParadigm shift in compliances
Paradigm shift in compliances
 
Pma 4 tax invoice
Pma 4 tax invoicePma 4 tax invoice
Pma 4 tax invoice
 
Demonetisation and income tax
Demonetisation and income taxDemonetisation and income tax
Demonetisation and income tax
 
Gst ppt-taxguru
Gst ppt-taxguruGst ppt-taxguru
Gst ppt-taxguru
 
Migration to GST- Will a retailer get TAX Credit for the Excise duty?
Migration to GST- Will a retailer get TAX Credit for the Excise duty?Migration to GST- Will a retailer get TAX Credit for the Excise duty?
Migration to GST- Will a retailer get TAX Credit for the Excise duty?
 
CV
CVCV
CV
 
Gst - A Door Step Away
Gst - A Door Step AwayGst - A Door Step Away
Gst - A Door Step Away
 
Optitax's presentation on 'has gst stabilised, yes and no' 3 feb 18
Optitax's presentation on 'has gst stabilised, yes and no' 3 feb 18Optitax's presentation on 'has gst stabilised, yes and no' 3 feb 18
Optitax's presentation on 'has gst stabilised, yes and no' 3 feb 18
 
Invoice & Payment of Tax under GST
Invoice & Payment of Tax under GSTInvoice & Payment of Tax under GST
Invoice & Payment of Tax under GST
 
Tax Quest - November 2016 - GST Special
Tax Quest - November 2016 - GST SpecialTax Quest - November 2016 - GST Special
Tax Quest - November 2016 - GST Special
 
GST Transitional Period
GST Transitional Period GST Transitional Period
GST Transitional Period
 
GST Enrolment Process_ Spine Software Systems
GST Enrolment Process_ Spine Software SystemsGST Enrolment Process_ Spine Software Systems
GST Enrolment Process_ Spine Software Systems
 

Similar to Basic tenets of GST - Dr Sanjiv Agarwal

GST -PPT
GST -PPTGST -PPT
GST -PPT
Ravinder Kumar
 
336799 46658 gst_and_its_impact
336799 46658 gst_and_its_impact336799 46658 gst_and_its_impact
336799 46658 gst_and_its_impact
Gyan Parkash
 
Overview of Goods and Services Tax (GST)
Overview of Goods and Services Tax (GST)Overview of Goods and Services Tax (GST)
Overview of Goods and Services Tax (GST)
BusinessWindo.com
 
Gst in india
Gst in indiaGst in india
Gst in india
prajwal chakrasali
 
GST in india
GST in indiaGST in india
GST in india
Adv. Rashmi Baliyan
 
GST in india
GST in indiaGST in india
GST in india
Adv. Rashmi Baliyan
 
Gs tin india
Gs tin indiaGs tin india
Gs tin india
Adv. Rashmi Baliyan
 
GST in India
GST in IndiaGST in India
GST in India
Mohd Uvaish Khan
 
GSTinIndia
GSTinIndiaGSTinIndia
GSTinIndia
arzoo agrawal
 
Goods and service tax in india
Goods and service tax in indiaGoods and service tax in india
Goods and service tax in india
Dev Shrivastava
 
Gst By CA Gopal Rathi
Gst By CA Gopal RathiGst By CA Gopal Rathi
Gst By CA Gopal Rathi
CA Gopal Rathi
 
Gst By CA Gopal Rathi
Gst By CA Gopal RathiGst By CA Gopal Rathi
Gst By CA Gopal Rathi
CA Gopal Rathi
 
Goods service tax_gst_
Goods service tax_gst_Goods service tax_gst_
Goods service tax_gst_
Ankur Mathur
 
Understanding GST and its implications.
Understanding GST and its implications.Understanding GST and its implications.
Understanding GST and its implications.
Anirudh Daga
 
Assignment of corporate tax planning
Assignment of corporate tax planningAssignment of corporate tax planning
Assignment of corporate tax planning
sksbatish
 
TDS and TCS under GST
TDS and TCS under GSTTDS and TCS under GST
TDS and TCS under GST
MuskanGarg66
 
Gst – an overview
Gst – an overviewGst – an overview
Gst – an overview
Kalpana Udhaya
 
Gst input tax credit ppt
Gst input tax credit pptGst input tax credit ppt
Gst input tax credit ppt
Jibin Varghese
 
GST-Mukesh Jha
GST-Mukesh JhaGST-Mukesh Jha
GST-Mukesh Jha
Mukesh Kumar Jha
 
VAT updates in the GCC - July 2017
VAT updates in the GCC - July 2017VAT updates in the GCC - July 2017
VAT updates in the GCC - July 2017
Alex Baulf
 

Similar to Basic tenets of GST - Dr Sanjiv Agarwal (20)

GST -PPT
GST -PPTGST -PPT
GST -PPT
 
336799 46658 gst_and_its_impact
336799 46658 gst_and_its_impact336799 46658 gst_and_its_impact
336799 46658 gst_and_its_impact
 
Overview of Goods and Services Tax (GST)
Overview of Goods and Services Tax (GST)Overview of Goods and Services Tax (GST)
Overview of Goods and Services Tax (GST)
 
Gst in india
Gst in indiaGst in india
Gst in india
 
GST in india
GST in indiaGST in india
GST in india
 
GST in india
GST in indiaGST in india
GST in india
 
Gs tin india
Gs tin indiaGs tin india
Gs tin india
 
GST in India
GST in IndiaGST in India
GST in India
 
GSTinIndia
GSTinIndiaGSTinIndia
GSTinIndia
 
Goods and service tax in india
Goods and service tax in indiaGoods and service tax in india
Goods and service tax in india
 
Gst By CA Gopal Rathi
Gst By CA Gopal RathiGst By CA Gopal Rathi
Gst By CA Gopal Rathi
 
Gst By CA Gopal Rathi
Gst By CA Gopal RathiGst By CA Gopal Rathi
Gst By CA Gopal Rathi
 
Goods service tax_gst_
Goods service tax_gst_Goods service tax_gst_
Goods service tax_gst_
 
Understanding GST and its implications.
Understanding GST and its implications.Understanding GST and its implications.
Understanding GST and its implications.
 
Assignment of corporate tax planning
Assignment of corporate tax planningAssignment of corporate tax planning
Assignment of corporate tax planning
 
TDS and TCS under GST
TDS and TCS under GSTTDS and TCS under GST
TDS and TCS under GST
 
Gst – an overview
Gst – an overviewGst – an overview
Gst – an overview
 
Gst input tax credit ppt
Gst input tax credit pptGst input tax credit ppt
Gst input tax credit ppt
 
GST-Mukesh Jha
GST-Mukesh JhaGST-Mukesh Jha
GST-Mukesh Jha
 
VAT updates in the GCC - July 2017
VAT updates in the GCC - July 2017VAT updates in the GCC - July 2017
VAT updates in the GCC - July 2017
 

More from D Murali ☆

Narayaneeyam metres
Narayaneeyam metresNarayaneeyam metres
Narayaneeyam metres
D Murali ☆
 
The good of all is what is good for oneself
The good of all is what is good for oneselfThe good of all is what is good for oneself
The good of all is what is good for oneself
D Murali ☆
 
Business Journos Chennai WhatsApp Group info
Business Journos Chennai WhatsApp Group infoBusiness Journos Chennai WhatsApp Group info
Business Journos Chennai WhatsApp Group info
D Murali ☆
 
On संस्कृत दिवस Sanskrit Day
On संस्कृत दिवस Sanskrit DayOn संस्कृत दिवस Sanskrit Day
On संस्कृत दिवस Sanskrit Day
D Murali ☆
 
On वरलक्ष्मी व्रतं Varalakshmi Vratam
On वरलक्ष्मी व्रतं Varalakshmi VratamOn वरलक्ष्मी व्रतं Varalakshmi Vratam
On वरलक्ष्मी व्रतं Varalakshmi Vratam
D Murali ☆
 
CAI Consumers Association of India & Consumer VOICE seminar on car safety
CAI Consumers Association of India & Consumer VOICE seminar on car safety CAI Consumers Association of India & Consumer VOICE seminar on car safety
CAI Consumers Association of India & Consumer VOICE seminar on car safety
D Murali ☆
 
CSIR-CECRI-Industrial Conclave - Energy
CSIR-CECRI-Industrial Conclave - EnergyCSIR-CECRI-Industrial Conclave - Energy
CSIR-CECRI-Industrial Conclave - Energy
D Murali ☆
 
CSIR-CECRI-Industrial Conclave - Water treatment
CSIR-CECRI-Industrial Conclave - Water treatmentCSIR-CECRI-Industrial Conclave - Water treatment
CSIR-CECRI-Industrial Conclave - Water treatment
D Murali ☆
 
FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation
FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation
FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation
D Murali ☆
 
FICCI Digital Disruption & Transformation Summit DDTS agenda
FICCI Digital Disruption & Transformation Summit DDTS agendaFICCI Digital Disruption & Transformation Summit DDTS agenda
FICCI Digital Disruption & Transformation Summit DDTS agenda
D Murali ☆
 
IIRSI-Intraocular Implant and Refractive Society, India
IIRSI-Intraocular Implant and Refractive Society, IndiaIIRSI-Intraocular Implant and Refractive Society, India
IIRSI-Intraocular Implant and Refractive Society, India
D Murali ☆
 
Knight Frank India Real Estate (Jan-June 2017) Report
Knight Frank India Real Estate (Jan-June 2017) ReportKnight Frank India Real Estate (Jan-June 2017) Report
Knight Frank India Real Estate (Jan-June 2017) Report
D Murali ☆
 
All India and Chennai ppt - India Real Estate (Jan-Jun 2017)
All India and Chennai ppt - India Real Estate (Jan-Jun 2017)All India and Chennai ppt - India Real Estate (Jan-Jun 2017)
All India and Chennai ppt - India Real Estate (Jan-Jun 2017)
D Murali ☆
 
Why Government is unfair to Indian Revenue Service officers who strenuously w...
Why Government is unfair to Indian Revenue Service officers who strenuously w...Why Government is unfair to Indian Revenue Service officers who strenuously w...
Why Government is unfair to Indian Revenue Service officers who strenuously w...
D Murali ☆
 
Supreme Court may kindly consider whether SIT appointed on its order needs to...
Supreme Court may kindly consider whether SIT appointed on its order needs to...Supreme Court may kindly consider whether SIT appointed on its order needs to...
Supreme Court may kindly consider whether SIT appointed on its order needs to...
D Murali ☆
 
Possibility of set-off of business loss against cash credit/ unexplained inve...
Possibility of set-off of business loss against cash credit/ unexplained inve...Possibility of set-off of business loss against cash credit/ unexplained inve...
Possibility of set-off of business loss against cash credit/ unexplained inve...
D Murali ☆
 
Irrationalities in giving Padma awards damage their sanctity - T. N. Pandey
Irrationalities in giving Padma awards damage their sanctity - T. N. PandeyIrrationalities in giving Padma awards damage their sanctity - T. N. Pandey
Irrationalities in giving Padma awards damage their sanctity - T. N. Pandey
D Murali ☆
 
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...
D Murali ☆
 
Updates on Circulars and Notifications - V. K. Subramani
Updates on Circulars and Notifications - V. K. SubramaniUpdates on Circulars and Notifications - V. K. Subramani
Updates on Circulars and Notifications - V. K. Subramani
D Murali ☆
 
Renewed hopes on GST - Dr Sanjiv Agarwal
Renewed hopes on GST - Dr Sanjiv AgarwalRenewed hopes on GST - Dr Sanjiv Agarwal
Renewed hopes on GST - Dr Sanjiv Agarwal
D Murali ☆
 

More from D Murali ☆ (20)

Narayaneeyam metres
Narayaneeyam metresNarayaneeyam metres
Narayaneeyam metres
 
The good of all is what is good for oneself
The good of all is what is good for oneselfThe good of all is what is good for oneself
The good of all is what is good for oneself
 
Business Journos Chennai WhatsApp Group info
Business Journos Chennai WhatsApp Group infoBusiness Journos Chennai WhatsApp Group info
Business Journos Chennai WhatsApp Group info
 
On संस्कृत दिवस Sanskrit Day
On संस्कृत दिवस Sanskrit DayOn संस्कृत दिवस Sanskrit Day
On संस्कृत दिवस Sanskrit Day
 
On वरलक्ष्मी व्रतं Varalakshmi Vratam
On वरलक्ष्मी व्रतं Varalakshmi VratamOn वरलक्ष्मी व्रतं Varalakshmi Vratam
On वरलक्ष्मी व्रतं Varalakshmi Vratam
 
CAI Consumers Association of India & Consumer VOICE seminar on car safety
CAI Consumers Association of India & Consumer VOICE seminar on car safety CAI Consumers Association of India & Consumer VOICE seminar on car safety
CAI Consumers Association of India & Consumer VOICE seminar on car safety
 
CSIR-CECRI-Industrial Conclave - Energy
CSIR-CECRI-Industrial Conclave - EnergyCSIR-CECRI-Industrial Conclave - Energy
CSIR-CECRI-Industrial Conclave - Energy
 
CSIR-CECRI-Industrial Conclave - Water treatment
CSIR-CECRI-Industrial Conclave - Water treatmentCSIR-CECRI-Industrial Conclave - Water treatment
CSIR-CECRI-Industrial Conclave - Water treatment
 
FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation
FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation
FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation
 
FICCI Digital Disruption & Transformation Summit DDTS agenda
FICCI Digital Disruption & Transformation Summit DDTS agendaFICCI Digital Disruption & Transformation Summit DDTS agenda
FICCI Digital Disruption & Transformation Summit DDTS agenda
 
IIRSI-Intraocular Implant and Refractive Society, India
IIRSI-Intraocular Implant and Refractive Society, IndiaIIRSI-Intraocular Implant and Refractive Society, India
IIRSI-Intraocular Implant and Refractive Society, India
 
Knight Frank India Real Estate (Jan-June 2017) Report
Knight Frank India Real Estate (Jan-June 2017) ReportKnight Frank India Real Estate (Jan-June 2017) Report
Knight Frank India Real Estate (Jan-June 2017) Report
 
All India and Chennai ppt - India Real Estate (Jan-Jun 2017)
All India and Chennai ppt - India Real Estate (Jan-Jun 2017)All India and Chennai ppt - India Real Estate (Jan-Jun 2017)
All India and Chennai ppt - India Real Estate (Jan-Jun 2017)
 
Why Government is unfair to Indian Revenue Service officers who strenuously w...
Why Government is unfair to Indian Revenue Service officers who strenuously w...Why Government is unfair to Indian Revenue Service officers who strenuously w...
Why Government is unfair to Indian Revenue Service officers who strenuously w...
 
Supreme Court may kindly consider whether SIT appointed on its order needs to...
Supreme Court may kindly consider whether SIT appointed on its order needs to...Supreme Court may kindly consider whether SIT appointed on its order needs to...
Supreme Court may kindly consider whether SIT appointed on its order needs to...
 
Possibility of set-off of business loss against cash credit/ unexplained inve...
Possibility of set-off of business loss against cash credit/ unexplained inve...Possibility of set-off of business loss against cash credit/ unexplained inve...
Possibility of set-off of business loss against cash credit/ unexplained inve...
 
Irrationalities in giving Padma awards damage their sanctity - T. N. Pandey
Irrationalities in giving Padma awards damage their sanctity - T. N. PandeyIrrationalities in giving Padma awards damage their sanctity - T. N. Pandey
Irrationalities in giving Padma awards damage their sanctity - T. N. Pandey
 
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...
 
Updates on Circulars and Notifications - V. K. Subramani
Updates on Circulars and Notifications - V. K. SubramaniUpdates on Circulars and Notifications - V. K. Subramani
Updates on Circulars and Notifications - V. K. Subramani
 
Renewed hopes on GST - Dr Sanjiv Agarwal
Renewed hopes on GST - Dr Sanjiv AgarwalRenewed hopes on GST - Dr Sanjiv Agarwal
Renewed hopes on GST - Dr Sanjiv Agarwal
 

Recently uploaded

1(17). NIS English March 1-15 (2021).pdf
1(17). NIS English March 1-15 (2021).pdf1(17). NIS English March 1-15 (2021).pdf
1(17). NIS English March 1-15 (2021).pdf
Ranjan Kumar Gupta
 
Know More About Bruce Wilpon Wife, Yuki Ikeda
Know More About Bruce Wilpon Wife, Yuki IkedaKnow More About Bruce Wilpon Wife, Yuki Ikeda
Know More About Bruce Wilpon Wife, Yuki Ikeda
Book My Blogs
 
Juan Orlando Hernández se opone a la confiscación de $15 millones
Juan Orlando Hernández se opone a la confiscación de $15 millonesJuan Orlando Hernández se opone a la confiscación de $15 millones
Juan Orlando Hernández se opone a la confiscación de $15 millones
AlexisTorres963861
 
1(14). NIS English January 16-31 (2021).pdf
1(14). NIS English January 16-31 (2021).pdf1(14). NIS English January 16-31 (2021).pdf
1(14). NIS English January 16-31 (2021).pdf
Ranjan Kumar Gupta
 
Lucknow Girls Call Chinhat 08630512678 Provide Best And Top Girl Service And ...
Lucknow Girls Call Chinhat 08630512678 Provide Best And Top Girl Service And ...Lucknow Girls Call Chinhat 08630512678 Provide Best And Top Girl Service And ...
Lucknow Girls Call Chinhat 08630512678 Provide Best And Top Girl Service And ...
bangaloreakshitakaus
 
BDSM Girls Call Mumbai 🛵🚡9833325238 💃 Choose Best And Top Girl Service And No...
BDSM Girls Call Mumbai 🛵🚡9833325238 💃 Choose Best And Top Girl Service And No...BDSM Girls Call Mumbai 🛵🚡9833325238 💃 Choose Best And Top Girl Service And No...
BDSM Girls Call Mumbai 🛵🚡9833325238 💃 Choose Best And Top Girl Service And No...
sanvi pandey
 
Amit Shah Biography , Education Qualification Early Life, Education, Family a...
Amit Shah Biography , Education Qualification Early Life, Education, Family a...Amit Shah Biography , Education Qualification Early Life, Education, Family a...
Amit Shah Biography , Education Qualification Early Life, Education, Family a...
VoterMood
 
VIP Nagpur Girls Call Nagpur 0X0000000X Doorstep High-Profile Girl Service Ca...
VIP Nagpur Girls Call Nagpur 0X0000000X Doorstep High-Profile Girl Service Ca...VIP Nagpur Girls Call Nagpur 0X0000000X Doorstep High-Profile Girl Service Ca...
VIP Nagpur Girls Call Nagpur 0X0000000X Doorstep High-Profile Girl Service Ca...
saroohilakhatariroy
 
Daniel Carrasco Unravels Alleged $1.5M Fraud Scheme.pdf
Daniel Carrasco Unravels Alleged $1.5M Fraud Scheme.pdfDaniel Carrasco Unravels Alleged $1.5M Fraud Scheme.pdf
Daniel Carrasco Unravels Alleged $1.5M Fraud Scheme.pdf
nathaniel leonard
 
For-Website-240710-CJP-complaint-to-NCM-on-lynchings-June-July2024.pdf
For-Website-240710-CJP-complaint-to-NCM-on-lynchings-June-July2024.pdfFor-Website-240710-CJP-complaint-to-NCM-on-lynchings-June-July2024.pdf
For-Website-240710-CJP-complaint-to-NCM-on-lynchings-June-July2024.pdf
bhavenpr
 
Administrative Reforms of sher shah(CSS)
Administrative Reforms of sher shah(CSS)Administrative Reforms of sher shah(CSS)
Administrative Reforms of sher shah(CSS)
Syed Adnan Shah
 
1(16). NIS English February16-28 (2021).pdf
1(16). NIS English February16-28 (2021).pdf1(16). NIS English February16-28 (2021).pdf
1(16). NIS English February16-28 (2021).pdf
Ranjan Kumar Gupta
 
THE SENTENCE STRUCTURE AND THE PLACE OF THE PARTICIPLE IN NEWS SENTENCES OF B...
THE SENTENCE STRUCTURE AND THE PLACE OF THE PARTICIPLE IN NEWS SENTENCES OF B...THE SENTENCE STRUCTURE AND THE PLACE OF THE PARTICIPLE IN NEWS SENTENCES OF B...
THE SENTENCE STRUCTURE AND THE PLACE OF THE PARTICIPLE IN NEWS SENTENCES OF B...
indexPub
 
Amish-Devgan-v.-Union-of-India-2021-1-SCC-1.pdf
Amish-Devgan-v.-Union-of-India-2021-1-SCC-1.pdfAmish-Devgan-v.-Union-of-India-2021-1-SCC-1.pdf
Amish-Devgan-v.-Union-of-India-2021-1-SCC-1.pdf
bhavenpr
 
Mysore Girls Call Mysore 0X0000000X Provide Best And Top Girl Service And No1...
Mysore Girls Call Mysore 0X0000000X Provide Best And Top Girl Service And No1...Mysore Girls Call Mysore 0X0000000X Provide Best And Top Girl Service And No1...
Mysore Girls Call Mysore 0X0000000X Provide Best And Top Girl Service And No1...
kalihasan429
 
The times are a-changin’: Assessing the political and economic outlook for th...
The times are a-changin’: Assessing the political and economic outlook for th...The times are a-changin’: Assessing the political and economic outlook for th...
The times are a-changin’: Assessing the political and economic outlook for th...
ResolutionFoundation
 
Lucknow Girls Call Balaganj 08630512678 Provide Best And Top Girl Service And...
Lucknow Girls Call Balaganj 08630512678 Provide Best And Top Girl Service And...Lucknow Girls Call Balaganj 08630512678 Provide Best And Top Girl Service And...
Lucknow Girls Call Balaganj 08630512678 Provide Best And Top Girl Service And...
bangaloreakshitakaus
 
Lucknow Girls Call Patrakarpuram 08630512678 Girls Call Service
Lucknow Girls Call Patrakarpuram 08630512678  Girls Call ServiceLucknow Girls Call Patrakarpuram 08630512678  Girls Call Service
Lucknow Girls Call Patrakarpuram 08630512678 Girls Call Service
anilsa9823
 
5 Surprising Facts About Beth Grosshans’ Husband
5 Surprising Facts About Beth Grosshans’ Husband5 Surprising Facts About Beth Grosshans’ Husband
5 Surprising Facts About Beth Grosshans’ Husband
Ahmad butt
 
Emerging Trends in Space Sensors and Actuators for Satellites.pdf
Emerging Trends in Space Sensors and Actuators for Satellites.pdfEmerging Trends in Space Sensors and Actuators for Satellites.pdf
Emerging Trends in Space Sensors and Actuators for Satellites.pdf
amrutmahajani
 

Recently uploaded (20)

1(17). NIS English March 1-15 (2021).pdf
1(17). NIS English March 1-15 (2021).pdf1(17). NIS English March 1-15 (2021).pdf
1(17). NIS English March 1-15 (2021).pdf
 
Know More About Bruce Wilpon Wife, Yuki Ikeda
Know More About Bruce Wilpon Wife, Yuki IkedaKnow More About Bruce Wilpon Wife, Yuki Ikeda
Know More About Bruce Wilpon Wife, Yuki Ikeda
 
Juan Orlando Hernández se opone a la confiscación de $15 millones
Juan Orlando Hernández se opone a la confiscación de $15 millonesJuan Orlando Hernández se opone a la confiscación de $15 millones
Juan Orlando Hernández se opone a la confiscación de $15 millones
 
1(14). NIS English January 16-31 (2021).pdf
1(14). NIS English January 16-31 (2021).pdf1(14). NIS English January 16-31 (2021).pdf
1(14). NIS English January 16-31 (2021).pdf
 
Lucknow Girls Call Chinhat 08630512678 Provide Best And Top Girl Service And ...
Lucknow Girls Call Chinhat 08630512678 Provide Best And Top Girl Service And ...Lucknow Girls Call Chinhat 08630512678 Provide Best And Top Girl Service And ...
Lucknow Girls Call Chinhat 08630512678 Provide Best And Top Girl Service And ...
 
BDSM Girls Call Mumbai 🛵🚡9833325238 💃 Choose Best And Top Girl Service And No...
BDSM Girls Call Mumbai 🛵🚡9833325238 💃 Choose Best And Top Girl Service And No...BDSM Girls Call Mumbai 🛵🚡9833325238 💃 Choose Best And Top Girl Service And No...
BDSM Girls Call Mumbai 🛵🚡9833325238 💃 Choose Best And Top Girl Service And No...
 
Amit Shah Biography , Education Qualification Early Life, Education, Family a...
Amit Shah Biography , Education Qualification Early Life, Education, Family a...Amit Shah Biography , Education Qualification Early Life, Education, Family a...
Amit Shah Biography , Education Qualification Early Life, Education, Family a...
 
VIP Nagpur Girls Call Nagpur 0X0000000X Doorstep High-Profile Girl Service Ca...
VIP Nagpur Girls Call Nagpur 0X0000000X Doorstep High-Profile Girl Service Ca...VIP Nagpur Girls Call Nagpur 0X0000000X Doorstep High-Profile Girl Service Ca...
VIP Nagpur Girls Call Nagpur 0X0000000X Doorstep High-Profile Girl Service Ca...
 
Daniel Carrasco Unravels Alleged $1.5M Fraud Scheme.pdf
Daniel Carrasco Unravels Alleged $1.5M Fraud Scheme.pdfDaniel Carrasco Unravels Alleged $1.5M Fraud Scheme.pdf
Daniel Carrasco Unravels Alleged $1.5M Fraud Scheme.pdf
 
For-Website-240710-CJP-complaint-to-NCM-on-lynchings-June-July2024.pdf
For-Website-240710-CJP-complaint-to-NCM-on-lynchings-June-July2024.pdfFor-Website-240710-CJP-complaint-to-NCM-on-lynchings-June-July2024.pdf
For-Website-240710-CJP-complaint-to-NCM-on-lynchings-June-July2024.pdf
 
Administrative Reforms of sher shah(CSS)
Administrative Reforms of sher shah(CSS)Administrative Reforms of sher shah(CSS)
Administrative Reforms of sher shah(CSS)
 
1(16). NIS English February16-28 (2021).pdf
1(16). NIS English February16-28 (2021).pdf1(16). NIS English February16-28 (2021).pdf
1(16). NIS English February16-28 (2021).pdf
 
THE SENTENCE STRUCTURE AND THE PLACE OF THE PARTICIPLE IN NEWS SENTENCES OF B...
THE SENTENCE STRUCTURE AND THE PLACE OF THE PARTICIPLE IN NEWS SENTENCES OF B...THE SENTENCE STRUCTURE AND THE PLACE OF THE PARTICIPLE IN NEWS SENTENCES OF B...
THE SENTENCE STRUCTURE AND THE PLACE OF THE PARTICIPLE IN NEWS SENTENCES OF B...
 
Amish-Devgan-v.-Union-of-India-2021-1-SCC-1.pdf
Amish-Devgan-v.-Union-of-India-2021-1-SCC-1.pdfAmish-Devgan-v.-Union-of-India-2021-1-SCC-1.pdf
Amish-Devgan-v.-Union-of-India-2021-1-SCC-1.pdf
 
Mysore Girls Call Mysore 0X0000000X Provide Best And Top Girl Service And No1...
Mysore Girls Call Mysore 0X0000000X Provide Best And Top Girl Service And No1...Mysore Girls Call Mysore 0X0000000X Provide Best And Top Girl Service And No1...
Mysore Girls Call Mysore 0X0000000X Provide Best And Top Girl Service And No1...
 
The times are a-changin’: Assessing the political and economic outlook for th...
The times are a-changin’: Assessing the political and economic outlook for th...The times are a-changin’: Assessing the political and economic outlook for th...
The times are a-changin’: Assessing the political and economic outlook for th...
 
Lucknow Girls Call Balaganj 08630512678 Provide Best And Top Girl Service And...
Lucknow Girls Call Balaganj 08630512678 Provide Best And Top Girl Service And...Lucknow Girls Call Balaganj 08630512678 Provide Best And Top Girl Service And...
Lucknow Girls Call Balaganj 08630512678 Provide Best And Top Girl Service And...
 
Lucknow Girls Call Patrakarpuram 08630512678 Girls Call Service
Lucknow Girls Call Patrakarpuram 08630512678  Girls Call ServiceLucknow Girls Call Patrakarpuram 08630512678  Girls Call Service
Lucknow Girls Call Patrakarpuram 08630512678 Girls Call Service
 
5 Surprising Facts About Beth Grosshans’ Husband
5 Surprising Facts About Beth Grosshans’ Husband5 Surprising Facts About Beth Grosshans’ Husband
5 Surprising Facts About Beth Grosshans’ Husband
 
Emerging Trends in Space Sensors and Actuators for Satellites.pdf
Emerging Trends in Space Sensors and Actuators for Satellites.pdfEmerging Trends in Space Sensors and Actuators for Satellites.pdf
Emerging Trends in Space Sensors and Actuators for Satellites.pdf
 

Basic tenets of GST - Dr Sanjiv Agarwal

  • 1. Volume XV Part 3 May 10, 2016 19 Business Advisor Basic tenets of GST Dr Sanjiv Agarwal Generally, the dealers registered under GST (manufacturers, wholesalers and retailers and service providers) charge GST on the price of goods and services from their customers and claim credits for the GST included in the price of their own purchases of goods and services used by them. While GST is paid at each step in the supply chain of goods and services, the paying dealers don‟t actually bear the burden of the tax because GST is an indirect tax and ultimate burden of the GST has to be taken by the last customer. Features of GST GST can be divided into the following features to understand it better: 1. Charging tax The dealers registered under GST (manufacturers, wholesalers and retailers and service providers) are required to charge GST at the specified rate of tax on goods and services that they supply to customers. The GST payable is
  • 2. Volume XV Part 3 May 10, 2016 20 Business Advisor included in the price paid by the recipient of the goods and services. The supplier must deposit this amount of GST with the Government. 2. Getting credit for GST If the recipient of goods or services is a registered dealer (manufacturers, wholesalers and retailers and service providers), he will normally be able to claim a credit for the amount of GST he has paid, provided he holds a proper tax invoice. This “input tax credit” is set off against any GST (output), which the dealer charges on goods and services which he supplies to his customers. 3. Ultimate burden of tax on last customer The net effect is that dealers charge GST but do not keep it, and pay GST but get a credit for it. This means that they act essentially as collecting agents for the Government. The ultimate burden of the tax falls on the last and final consumer of the goods and services, as this person gets no credit for the GST paid by him to his sellers or service providers. 4. Registration Dealers will have to register for GST. These dealers will include the suppliers, manufacturers, service providers, wholesalers and retailers. If a dealer is not registered, he normally cannot charge GST and cannot claim credit for the GST he pays and further cannot issue a tax invoice. 5. Tax period The tax period will have to be decided by the respective law and normally it is monthly and/or quarterly. On a particular tax period, which is applicable to the dealer concerned, the dealer has to deposit the tax if his output credit is more than the input credit after considering the opening balance, if any, of the input credit. 6. Refunds If for a tax period the input credit of a dealer is more than the output credit then he is eligible for refund subject to the provisions of law applicable in this respect. The excess may be carried forward to next period or may be refunded immediately depending upon the provision of law. 7. Exempted goods and services Certain goods and services may be declared as exempted goods and services and in that case the input credit cannot be claimed on the GST paid for
  • 3. Volume XV Part 3 May 10, 2016 21 Business Advisor purchasing the raw material in this respect or GST paid on services used for providing such goods and services. 8. Zero-rated goods and services Generally, exports of goods and services are zero-rated and in that case the GST paid by the exporters of these goods and services is refunded. This is the basic difference between zero-rated goods and services and exempted goods and services. 9. Tax invoice Tax invoice is the basic and important document in the GST and a dealer registered under GST can issue a tax invoice and on the basis of this invoice the credit (input) can be claimed. Normally a tax invoice must bear the name of supplying dealer, his tax identification nos., address and tax invoice nos. coupled with the name and address of the purchasing dealer, his tax identification nos., address and description of goods sold or service provided. 10. GST administration The Centre and the States would have concurrent jurisdiction for the entire value chain and for all taxpayers on the basis of thresholds for goods and services prescribed for the States and the Centre. 11. Accounts and GST credit The Central GST and State GST are to be paid to the accounts of the Centre and the States separately. It would have to be ensured that account-heads for all services and goods would have indication whether it relates to Central GST or State GST. Full input credit system would operate in parallel for the Central GST and the State GST. Taxes paid against the Central GST shall be allowed to be taken as input tax credit (ITC) for the Central GST and could be utilised only against the payment of Central GST. The same principle will The Centre and the States would have concurrent jurisdiction for the entire value chain and for all taxpayers on the basis of thresholds for goods and services prescribed for the States and the Centre.
  • 4. Volume XV Part 3 May 10, 2016 22 Business Advisor be applicable for the State GST. Cross utilisation of input tax credit for goods and services would be allowed. However, no credit between CGST and SGST would be permitted, except in the case of inter-State supply of goods and services under the IGST model. 12. Credit accumulation The White Paper on GST states that refund/ adjustment of accumulated credit should be completed in a time-bound manner. However, ideally, the problem related to credit accumulation on account of refund of GST should be avoided by both the Centre and the States except in the cases such as exports, purchase of capital goods, input tax at higher rate than output tax etc. 13. Collection procedure To the extent feasible, uniform procedure for collection of both Central GST and State GST would be prescribed in the respective legislation for Central GST and State GST. 14. Periodical returns/PAN-based ID The taxpayer would need to submit periodical returns, in common format as far as possible, to both the Central GST authority and to the concerned State GST authorities. Each taxpayer would be allotted a PAN-linked taxpayer identification number with a total of 13/15 digits. 15. Assessment and scrutiny Functions such as assessment, enforcement, scrutiny, and audit would be undertaken by the authority which is collecting the tax, with information sharing between the Centre and States. (Dr Sanjiv Agarwal is Partner, Agarwal Sanjiv & Company, Jaipur.) To the extent feasible, uniform procedure for collection of both Central GST and State GST would be prescribed in the respective legislation for Central GST and State GST.