Goods and Service Tax

Mahajan& Aibara
Prepared and presented by – Shubham Bahety

It has been 18
years since
GST was first
conceptualized
in India.
Prison on Tax
Evasion –
above Rs. 5
crores will be
non-bailable.
States will be
compensated
for 5 years by
Cess
Today 160
countries have
GST/VAT.
France: The
first country to
implement
GST in 1954.
Some Facts about GST

Tax not to be subsumed under GST
Toll Tax Export Duty Property tax
Customs duties Stamp duty Electricity Duty

Goods not to be subsumed under GST
Alcohol
(Human Consumption)
Petroleum Product Electricity

Items included under Cess
Pan Masala (60%)
Tobacco (65% / 96% /
204% etc.)
Coal (Rs. 400 / tonne)
Aerated Waters (12%)
Motor Cars
(15%/1%/3%)
Cigarettes / Cigars /
Hookah etc (~21%)

Supply Includes…
• Sale, transfer, barter, exchange, license, rental, lease or disposal made or
agreed to be made for a consideration by a person in the course or
furtherance of business;
• (b) import of services for a consideration whether or not in the course or
furtherance of business;
• (c) the activities specified in Schedule I, made or agreed to be made
without a consideration; and (d) the activities to be treated as supply of
goods or supply of services as referred to in Schedule II.

Treated as supply even if made without consideration
1. Permanent transfer or disposal of business assets where input tax credit has been
availed on such assets.
2. Supply of goods or services or both between related persons or between distinct
persons as specified in section 25, when made in the course or furtherance of
business: Provided that gifts not exceeding fifty thousand rupees in value in a
financial year by an employer to an employee shall not be treated as supply of
goods or services or both.
3. Supply of goods— (a) by a principal to his agent where the agent undertakes to
supply such goods on behalf of the principal; or (b) by an agent to his principal
where the agent undertakes to receive such goods on behalf of the principal.
4. Import of services by a taxable person from a related person or from any of his
other establishments outside India, in the course or furtherance of business.

Supply does not includes..
Service by CG, SG or
any local authorities
Employee to
employer
Services by court or
tribunal
Services of funeral
Sale of land & sale of
building
Actionable claims
other than lottery

Composition Scheme
Type of Business CGST SGST Total
Goods 0.5% 0.5% 1%
Restaurant not
serving alcohol
2.5% 2.5% 5%
Service provider 3% 3% 6%
Supplier of
services other
than
restaurant
related
services
Manufacturer
of ice cream,
pan masala, or
tobacco
Casual taxable
person or a
non-resident
taxable person
Supply goods
through an e-
commerce
operator
Non Eligibility
Eligibility
Turnover is
below Rs 1.5
crore
North-Eastern
states and
Himachal
Pradesh - 75
lakh.
Rates
As per 32nd GST Council Meeting held on
10th Jan 2019, Service Providers can opt into
the Composition Tax Scheme, and the
Government has set the threshold turnover
for service providers at Rs. 50 lakhs to be
eligible for this scheme

Conditions for Composition Scheme
No
Input
Tax
Credit
No inter-
state
supply of
goods.
No
supply of
exempte
d goods
Pay tax at
normal
rates for
RCM
Mention
words
‘composition
taxable
person’ on
signboard
Mention
words
‘composition
taxable
person’ on
bill
*Update as on 10th Jan 2019
As per 32nd GST Council Meeting held on 10th
Jan 2019, Service Providers can opt into the
Composition Tax Scheme, and the Government
has set the threshold turnover for service
providers at Rs. 50 lakhs to be eligible for this
scheme

Structure of registration number

Place of Supply – Goods & Services
Place of
consumption
of Goods &
Services

Time of Supply
ReverseCharge
RCM
Normal Situation
GoodsServices
RCM
o Date of removal
o Date of delivery
o Issue of invoice
o Receipt of payment
o Receipt of goods
o Date of Payment
o Thirty from the date of issue
of invoice
o Date of Invoice, OR
o Date of Receipt of payment,
o Date of Provision of Service
(if invoice is not raised within
30 days from supply of
service
o Date of Payment, OR
o Date immediately following
60 Days from the date of
issue of invoice or any other
document (Self Invoice)

Input Tax Credit – conditions for availing it..
he is in possession of a
tax invoice
he has received the
goods or services or
both.
the tax charged in
respect of such supply
has been actually paid
to the Government
Payment not done in
180 Days
Lapse of ITC

Input Tax Credit – restrictions 
Credit to taken partially if suppliers
supply both exempted and taxable
goods
Motor Vehicle and Other conveyance
Food and beverages, outdoor catering,
beauty treatment, health services,
cosmetic and plastic surgery
Membership of club, health and fitness
center
Rent a cab, life insurance and health
insurance, except when it is mandatory
Travel benefits to employees
Works contract services / immovable
property (other than plant and
machinery)
Tax paid under composition scheme
Goods lost, stolen, destroyed, written
off or disposed of by way of gift or free
samples
Sale of capital goods - ITC availed minus the reduction of 5% for every quarter or part thereof shall have to be
paid. In case the tax on transaction value of the supply is more, the same would have to be paid.
Reco with GSTR2A- 38th GST Council Meeting concluded on 18th December 2019. Taxpayers can
now avail provisional ITC on invoices not reflecting on GSTR-2A only to the extent of 10% of ITC
reflecting in GSTR-2A and no longer 20%.

Some important point to be considered for ITC
Is there a time limit for the principal manufacturer to receive back the goods?
Yes. The principal manufacturer must receive the goods back within the following period:
1.Capital Goods- 3 years from effective date
2.Input Goods- 1 year from effective date
What happens if the goods are not received within the specified time?
In case goods are not received within the period as mentioned above, such goods will be deemed as
supply from effective date. The principal manufacturer will have to pay tax will on such deemed
supply.
The challan issued will be treated as an invoice for such supply.
Form ITC-04
FORM GST ITC-04 must be submitted by the principal every quarter. ITC-04 is a quarterly form. It must be
furnished on or before 25th day of the month succeeding the quarter.
Job Work Challan

Reverse Charge Mechanism
When is Reverse Charge Applicable?
Supply from an Unregistered
dealer to a Registered dealer -
Not yet notified
Services through an e-
commerce operator
Supply of certain goods and
services specified by CBEC
3. Time of Supply under Reverse Charge
In case of reverse charge, the time of supply shall
be the earliest of the following dates:
•the date of receipt of goods
•the date of payment*
•the date immediately after 30 days goods / 60
days services from the date of issue of
an invoice by the supplier
*This point is no more applicable based
this Notification No. 66/2017 – Central Tax issued
on 15.11.2017 for goods
What is Self Invoicing? - Self-invoicing is to be done when you have purchased from an unregistered
supplier AND such purchase of goods or services falls under reverse charge.

Return Flow
Return Form Particulars Frequency Due Date
GSTR-1 Details of outward supplies of taxable goods and/or services
affected
Monthly 11th* of the next month with effect from
October 2018
*Previously, the due date was 10
th
GSTR-2
Suspended
Details of inward supplies of taxable goods and/or services
affected claiming the input tax credit.
Monthly 15th of the next month
GSTR-3
Suspended
Monthly return on the basis of finalization of details of outward
supplies and inward supplies along with the payment of tax.
GSTR-3B Simple Return in which summary of outward supplies along with
Input Tax Credit is declared and payment of tax is affected by
taxpayer
GSTR-4 Return for a taxpayer registered under the composition levy Quarterly 18th of the month succeeding quarter
GSTR-5 Return for a Non-Resident foreign taxable person Monthly 20th of the next month
GSTR-6 Return for an Input Service Distributor Monthly 13th of the next month
GSTR-7 Return for authorities deducting tax at source. Monthly 10th of the next month
GSTR-8 Details of supplies effected through e-commerce operator and the
amount of tax collected
GSTR-9 Annual Return for a Normal Taxpayer Annually 31st December of next financial year*
GSTR-9A Annual Return a taxpayer registered under the composition levy
anytime during the year
Annually 31st December of next financial year*
GSTR-10 Final Return Once, when GST Registration
is cancelled or surrendered
Within three months of the date of
cancellation or date of cancellation order,
whichever is later.
Late Fees for not Filing Return on Time
If GST Returns are not filed within time, you will be liable to pay interest and a late fee.
Interest is 18% per annum. It has to be calculated by the taxpayer on the amount of outstanding tax to be paid. The time period will be
from the next day of filing to the date of payment. Late fees is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total
will be Rs. 200/day. Maximum is Rs. 5,000. There is no late fee on IGST.

Accounts
Mahajan& Aibara
Input CGST a/c
Output CGST a/c
Input SGST a/c
Output SGST a/c
Input IGST a/c
Output IGST a/c
Example of G/L Account
4. Period for Retention of Accounts
under GST
As per the GST Act, every registered
taxable person must maintain the accounts
books and records for at least 72 months (6
years). The period will be counted from the
last date of filing of Annual Return for that
year.

Refunds
Conditions
Dealer Exports
(including deemed
export) goods/services
under claim of rebate
or Refund
ITC accumulation due
to output being tax
exempt or nil-rated
Refund of tax paid on
purchases made by
Embassies or UN
bodies
Tax Refund for
International Tourists
What is the time limit for
claiming the refund?
The time limit for
claiming a refund is 2
years from relevant
date
Form for Claiming Refund
RFD – 01
Time period of getting refund
60 days

GST Invoice
Mahajan& Aibara
• Invoice number and date
• Customer name
• Shipping and billing address
• Customer and taxpayer’s GSTIN (if
registered)**
• Place of supply
• HSN code/ SAC code
• Item details i.e. description, quantity
(number), unit (meter, kg etc.), total value
• Taxable value and discounts
• Rate and amount of taxes i.e. CGST/
SGST/ IGST
• Whether GST is payable on reverse
charge basis
• Signature of the supplier Customer Address - xx

GST Invoice
Mahajan& Aibara
No of copies to be issued GST Invoicing under Special Cases?
In some cases, like banking, passenger transport,
etc., the government has provided relaxations on
the invoice format issued by the supplier.
Invoice serial number must be maintained
strictly
A debit note is issued by the seller when the
amount payable by the buyer to seller increases:
1.Tax invoice has a lower taxable value than the
amount that should have been charged
2.Tax invoice has a lower tax value than the
A credit note is issued by the seller when the
value of invoice decreases:
1.Tax invoice has a higher taxable value than the
2.Tax invoice has a higher tax value than the
3.Buyer refunds the goods to the supplier
4.Services are found to be deficient

E-way bill (When, what, who?????)

Sales Return under GST
Under ErstwhileLaw UnderGST
Sales return
Tobe returned before –
30th September of the
or
Filing of annual return
(upto 31st December)
(whichever isearlier)
Scenario
Mahajan& Aibara
No such time limit under
Excise Law
To be returned within 6
months under VATto reduce
the output liability.

Goods and Service Tax

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