The document provides an overview of the proposed GST framework in India, including: - The origin and development of GST over time from 2006-2016. - Key aspects of the proposed GST framework such as the types of taxes (CGST, SGST, IGST), the GST council and committees established, registration process, payment methods, and anticipated benefits. - Details on the registration process including obtaining registration, approval process, surrender and cancellation of registration. - An explanation of the various payment methods under GST particularly internet banking and over the counter payments.

1. GST – The Framework
Sales Tax Bar Association
Prepared by:
CA Gaurav Gupta
FCA, LLB, DISA
Partner
MGS & Co.

2. GST – The Origin

3. GST – The Origin
Practical Aspects of GST Gaurav Gupta 3
2006- GST
Announcement
2009- First
Discussion
Paper
2011 – First
Amendment Bill
2014 -
Second
Amendment Bill
May 2015 - Bill
Passed by
Loksabha
Aug 2015 –
Select
Committee
Report
April 2016 – Bill
proposed to be
passed by Rajya
Sabha

4. Constitutional amendments
proposed by 122nd Bill
Article246A
• Concurrent
jurisdiction for
levy of GST by
the Centre and
the States
Article269A
• Authority for Centre to
levy & collection of IGST
on supplies in the course
of inter-State trade or
commerce including
imports
• Import of goods or
provision of services
from outside India will be
treated as Inter-State
supplies
• ‘Place of supply’ of
goods & services to be
determined as per Rules
formulated by Centre
Article366(12A)
• GST defined as
any tax on supply
of goods or
services or both
other than on
alcohol for
human
consumption
Practical Aspects of GST Gaurav Gupta 4

5. The Stakeholders
Practical Aspects of GST Gaurav Gupta 5
GST
Central
Government
State
Government
GST
Council
GSTN
Commitees

6. The Committees
Practical Aspects of GST Gaurav Gupta 6
Committee on the Problem of Dual Control, Threshold and Exemptions
in GST Regime
Committee on Revenue Neutral Rates for State GST & Central GST
and Place of Supply Rules (A Sub-Committee has been constituted to
examine issues relating to the Place of Supply Rules)
Committee on IGST & GST on Imports (A Sub- Committee has been
set up to examine issues pertaining to IGST model
Committee to draft model GST Law (Three Sub-Committees have
been constituted to draft various aspects of the model law
Committee to examine Business Processes under GST Regime
(Three Sub-Committees have been constituted to examine issues
pertaining to Registration & Returns, Refunds and Payments)

7. GST Council
Practical Aspects of GST Gaurav Gupta 7
1. Counstituted under Constitution by President of India under Article 279A
2. The GST Council shall consist of the following members:
i. The Union Finance Minister:- Chairperson;
ii. The Union Minister of State in charge of Revenue or Finance – Member
iii. The Minister in charge of Finance or Taxation or any other Minister
nominated by each State Government....................Members.
3. Quorum – 50% of total members
4. Every decision of the GST Council shall be taken at a meeting, by a majority of
not less than three-fourths of the weighted votes of the members present and
voting, in accordance with the following principles, namely:
• Central Government Vote - shall have a weightage of 1/3, and
• All the State Governments - weightage of 2/3 of the total votes cast

8. GST Council
Practical Aspects of GST Gaurav Gupta 8
The GST Council shall make recommendations to the Union and the States on—
• The taxes, cesses and surcharges levied by the Union, the States and the local bodies
which may be subsumed in the GS Tax
• The goods and services that may be subjected to, or exempted from the goods and
services tax;
• Model Goods and Services Tax Laws, principles of levy, apportionment of IGST and the
principles that govern the place of supply;
• The threshold limit of turnover below which goods and services may be exempted from
goods and services tax;
• The rates including floor rates with bands of goods and services tax;
• Any special rate or rates for a specified period, to raise additional resources during any
natural calamity or disaster;
• Special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and
Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh
and Uttarakhand;
• Any other matter relating to the goods and services tax, as the Council may decide.

9. GST – Need?

10. Current Indirect Tax
Regime in India
Excise duty
on Medicinal
and Toiletries
Preparation
Central
Excise Duty
Central
Sales Tax
Service Tax
Tax on
lottery,
betting and
Gambling
Entertainment
Tax
State VAT/
Sales tax
Entry Tax
not in lieu of
Octroi
Luxury Tax
Practical Aspects of GST Gaurav Gupta 10

11. Need for GST
Problems in the present structure:
• Complex
• Cascading effects of taxes
• Multiple tax rates
• Multiple Compliances
GST – an answer to present problems:
“It should establish a tax system that is economically efficient and
neutral in its application, distributionally attractive and simple to
administer.”
- Working Paper No.1/2009 – DEA on GST Reforms and
Intergovernmental Considerations in India
Practical Aspects of GST Gaurav Gupta 11

12. Proposed GST
Framework

13. What is GST
• GST is the tax on Goods and Services
• It is a Value added, consumption based tax
• GST shall be levied on the supply of all goods and services except those
exempted
• GST will subsume many existing indirect Central and State taxes such as
Central Sales Tax, stamp duty, Excise duty, Service tax etc.
• It will be levied at a uniform rate on the supply of most goods and services
consumed in India.
Practical Aspects of GST Gaurav Gupta 13

14. GST – The Framework
Excise duty on
Medicinal and
Toiletries
Preparation
CGST
Central Excise
Duty
Central Sales
Tax
Service Tax
Tax on lottery,
betting and
Gambling
SGST
Entertainment
Tax
State VAT/
Sales tax
Entry Tax
Luxury Tax
Practical Aspects of GST Gaurav Gupta 14

15.  Exclusions
i. Petroleum crude;
ii. High speed diesel;
iii. Motor spirit (commonly known as petrol);
iv. Natural gas;
v. Aviation turbine fuel; and
vi. Tobacco and tobacco products.
GST – The Framework
Practical Aspects of GST Gaurav Gupta 15

16. Types of Taxes
Practical Aspects of GST Gaurav Gupta 16
State A
State A
IGST + Additional Tax @1%
State A
State B
Transaction Taxes
Intra State SGST , CGST
Inter State IGST = 1% Additional Tax
CGST + SGST
Proposed to be
removed

17.  IGST
- IGST which would be aggregate of CGST and SGST
for eg. If CGST is 10%, SGST is 10%, IGST would be
20%
- Input credits of IGST, CGST & SGST will be available as
offsets
- Central agency to act as a clearing house for funds
transfer amongst the States
- No forms (C, F, E-1, E-II, H etc) for interstate movement
- No Waybills
GST – The Framework
Practical Aspects of GST Gaurav Gupta 17

18. Types of Interstate transactions :
- Supply occasioning movement from one state to another
- Transfer of documents of title – during movement
- Transit pass of Goods through territory of other States but origin &
destination in same State
- Imports
- Supply by Transfer of documents on high seas
- Supply in the Course of Import
- Movement wherein goods to return to same state eg. Supply for
exhibition, fore repair etc
GST – The Framework
Practical Aspects of GST Gaurav Gupta 18

19. Benefits of GST
• Neutral: GST would seek to be neutral and equitable
between forms of commerce. Business decisions should
be motivated by economic rather than tax considerations.
• Efficiency: Compliance costs for taxpayers and
administrative costs for the tax authorities would be minimized
• Certainty and simplicity
• Effectiveness and fairness
• Technology based: Inline with technological developments;
• Fewer rates of Taxes
Practical Aspects of GST Gaurav Gupta 19

20. Input SGST
Input CGST
Input IGST
Output SGST
Output CGST
Output IGST
Levy Cenvatable against
SGST SGST , IGST
CGST CGST, IGST
IGST SGST, CGST, IGST
Credit of GST
Practical Aspects of GST Gaurav Gupta 20

21. Country Rate of VAT/GST
Australia 10%
Canada
5% Goods and Services Tax, plus Provincial Sales
Tax
China 17%
France 19.60%
Germany 19%
Hong Kong 0%
Russia 18%
Singapore 7% GST
United Kingdom 15%
United States
No national VAT / GST. State tax vary from 5 –
10.25%
Rate of VAT / GST around the world at present, some of which are enumerated as under:
GST Rates
General
Rate–
18%
Low rate –
8-10%
Luxury
Goods –
40%
Exemption
Precious
Metal – 2-
4%
India

22. Registration under GST

23. Who are liable to be registered
Practical Aspects of GST Gaurav Gupta 23
Registration
Existing
Dealers
Casual and
non resident
suppliers
Person making
inter state
supplies
Voluntary
Registration
Persons with
All-India Gross
Turnover more
than a
threshold

24. Types of Taxes
CA Gaurav Gupta 24
Laws2 States +
UTs
29+
7
Business
VerticalsN Number of
Registrations

25. Features of
Registration Process
• PAN based Registration: PAN will be mandatory
• Unified application to both tax authorities
• To be filed within 30 days
• State-wise registration for entities having presence in more than one State; Need not
apply separately for each State
• Deemed approval within three days
• Within a PAN, separate registration for separate business verticals within a State possible
Practical Aspects of GST Gaurav Gupta 25
GSTIN - Features
X X X X XX X X X X XXX X
State
Code
PAN Business
Vertical
X
Blank Checksum

26. Suppliers under
Composition Scheme
• Suppliers with turnover below a particular threshold eligible for composition scheme
• To pay tax on turnover with no input tax credit
• To opt at the beginning of the year – applicable till eligibility or opting out
• Switch from composition to regular scheme voluntarily or on crossing threshold
• Suppliers making interstate supplies not elligible.
Practical Aspects of GST Gaurav Gupta 26

27. Obtaining Registration
• Migration of existing tax payers to the GSTN database
• Taxpayers with valid PAN
• Online application form through Common Portal
• Applications not submitted through Digital Signature to be supported by sending a signed
copy of summary extract of the form
• Email and SMS based alerts to the applicants
• No application fee (advance tax in case of casual suppliers)
• Applications can be filed through Facilitation Centres (FCs) or through Tax Return
Preparers (TRPs)
Practical Aspects of GST Gaurav Gupta 27

28. Approval Process
• Online verification of certain details like PAN, CIN, Bank Account (if possible) and Adhaar
• Online communication of application to jurisdictional authority by the backend modules of
tax authorities
• 3 common working days for tax authorities to respond
• Deemed approval after 3 days
• Single opportunity to tax authorities to raise query, if any – 7 days for response and 7
days for action
• Mostly post registration visits based on risk profile
• Online grant of registration
• Log-in id and temporary password communicated to the tax payer
• Downloadable Registration Certificate to be provided by GSTN
• Refusal to register by one tax authority deemed as refusal by both
• Communication of reason for refusal of registration
Practical Aspects of GST Gaurav Gupta 28

29. Surrender & Cancellation
Practical Aspects of GST Gaurav Gupta 29
Surrender /
Cancellation
Closure of
business of tax
payer
Amalgamation
or de-merger
Non
commencement
of business
within the
stipulated time
Transfer of
business
Gross Annual
Turnover falling
below threshold
for registration

30. Surrender & Cancellation
• Cancellation by Tax authorities:
 Signed copy of the summary extract of submitted application form not received even after a reminder
 Tax payer contravenes specified provision of the GST law
 Taxpayer has not filed any return at all during a prescribed period as prescribed under GST Law
• Cancellation of registration to be prospective
• A person, whose registration was cancelled by tax authority on his own motion, may apply for
revocation of registration
• Substantial penalty in case registration obtained with fraudulent intentions
Practical Aspects of GST Gaurav Gupta 30

31. Payment Process under GST

32. Types of Taxes
Taxes
4 States
29 Business
VerticalsN
Number
of
Monthly
Challans
Practical Aspects of GST Gaurav Gupta 32
Internet
Banking
OTC (upto Rs.
10,000/- per
challan)
NEFT/RTGS
How to Pay

33. Internet Banking
 This mode of payment involves payment through Authorized Banks and through Credit
Card/Debit Card.
 It involves payments by the taxpayers that utilize the electronic network, right from the
generation of the challan by the taxpayer to the ultimate reconciliation of the data by the
Accounting authorities.
 The following stakeholders will pay a key role in establishing an effective e-payment
network in the proposed GST scenario:
• GSTN (Goods and Service Tax Network);
• e- FPBs (Electronic Focal Point Branches) of authorized banks;
• e-Kuber of RBI;
• Central Accounts Section (CAS) of RBI, Nagpur;
• e-PAOs (Electronic Pay and account Offices) / e-Treasuries of State Governments;
• Pr. CCA, CBEC (Principal Chief Controller of Accounts) / Accountant General of the
States;
• Tax authorities of Centre and States.
Practical Aspects of GST Gaurav Gupta 33

34. Internet Banking
Payment Process
Login
Filling of Basic details
Registered Taxpayer/
Authorized Person
GSTN Common Portal
Generation of Draft Challan Choose mode from drop down
Choose Mode
Fill in tax amounts
Save / Submit - CPIN
Practical Aspects of GST Gaurav Gupta 34

35. Internet Banking
 Since there are three modes of payment, the tax payer has to choose the e-payment mode.
This mode will also cover payment by Credit/Debit Card which can be used only after log in
on the GSTN.
 Once e-payment mode is selected, options will be shown to taxpayer to choose between
Internet Banking and Credit / Debit Cards for making payment.
 In case Internet Banking mode is selected, a field with drop down box detailing names of
various authorized banks from which one has to choose his preferred bank. Credit and
Debit Cards of all banks shall be accepted.
 The payments using credit cards can therefore be allowed without any monetary limit to
facilitate ease of doing business.
 GSTN will then direct him to the website of the selected bank.
 Taxpayer will make the payment using the USER ID and Password provided by the bank to
enter into the secured e- banking area of his bank.
Practical Aspects of GST Gaurav Gupta 35

36. Internet Banking
Payment Process
 Upon creation of the basic challan, the taxpayer will fill in the details of the taxes that are
to be paid.
 No mention of Jurisdictional location (e.g. Commissionerate, division and range) in the
challan. The Tax authorities would send the Taxpayers updated master data to GSTN as
well as to Accounting Authorities.
 The tax payer will have the option to pay CGST, IGST, Additional Tax and SGST
concurrently.
 Save option for challan for later available.
 The challan so generated will have a 14-digit (yymm followed by 10-digit) Unique
Common Portal Identification Number (CPIN), assigned only when the challan is finally
generated, this will help the portal and other authorities in identifying the challan.
 The CPIN/challan so generated would be valid for a period of seven days.
Practical Aspects of GST Gaurav Gupta 36

37. Internet Banking
Payment Process
 No change in the break up as well as the total amount would be allowed on the Bank’s
portal. In case the user wants to change the break up or the total amount, he should abort
the transaction and go back to GSTN portal from the bank’s portal and reinitiate the
process.
 Upon receipt of confirmation from the bank regarding successful completion of the
transaction, GSTN will inform the relevant tax authorities about payment of taxes.
Practical Aspects of GST Gaurav Gupta 37

38. Over the counter payment
 Every tax payer who wants to avail the facility of OTC payment (only for paying tax
upto Rs. 10,000/- per challan), will access GSTN for generation of a challan through
which payment is to be made.
 Upon creation of the draft challan, the taxpayer will fill in the details of the taxes that are to
be paid. Select from available payment options - cheque, DD or cash based payment.
 The tax payers can partially fill in the challan form and temporarily “save” the challan for
completion at a later stage. A saved challan can be “edited” before finalization.
 After the tax payer has finalized the challan, he will generate the challan, for use of
payment of taxes. The challan so generated will have a Unique Common Portal
Identification Number (CPIN), assigned only when the challan is finally generated, that will
help the portal and other authorities in identifying the challan.
 After the challan is generated, it will be frozen and will not be allowed to be modified. The
CPIN / challan so generated would be valid for a period of seven days within which
payment is to be tendered.
Practical Aspects of GST Gaurav Gupta 38

39. Over the counter payment
 Taxpayer will approach the branch of the authorized bank for payment of taxes along with
the instrument or cash. The taxpayer should preferably carry two copies of the challan,
one for the bank’s record and another for himself to get acknowledgement.
 The tax payer may make payment by cash or instruments drawn on the same bank or on
some other bank in the same city. In case of cash payments or same bank instruments,
the payment would be realized immediately and a transaction number (BTR/BRN) and CIN
will be generated immediately at the authorized bank’s system which will be unique for
each and every transaction.
Practical Aspects of GST Gaurav Gupta 39

40. NEFT/RTGS
 The payment through this mode will strictly be a matter of normal banking service of NEFT
/ RTGS provided by that bank to its customer.
 Every tax payer who wants to avail the facility of payment through NEFT/RTGS mode will
access GSTN for generation of a challan through which payment is to be made.
 Upon creation of the draft challan, the taxpayer will fill in the details of the taxes that are to
be paid.
 As a part of the challan preparation, a tax payer will have to choose the mode of payment
as NEFT / RTGS from any bank. The challan so generated will have a Unique Common
Portal Identification Number (CPIN), assigned only when the challan is finally generated.
The CPIN so generated would be valid for a period of seven days within which
payment is to be tendered but would remain live with RBI for a period of 30 days.
 NEFT/RTGS mandate would have the validity period of CPIN printed on it.
 Whereby any taxpayer using challan under this mode beyond the validity period of seven
days of the CPIN more than two times would be barred from availing this facility by GSTN.
Practical Aspects of GST Gaurav Gupta 40

41. NEFT/RTGS
 Upon successful saving of the challan details, the challan will be available on the
dashboard of the taxpayer in downloadable / printable form. of the CPIN more than two
times would be barred from availing this facility by GSTN.
 Besides the generation of challan, GSTN will also generate NEFT / RTGS mandate form
in prescribed format.
 Payment to Bank and not government - The CPIN generated at the portal shall be
incorporated in NEFT/RTGS mandate form in “Account Name” field. RBI would provide for
suitable validations for this field. The “Sender to Receiver” field shall carry the entry “GST
Payment”. In case of NEFT / RTGS payments, there shall also be a disclaimer on the
challan copy and the mandate form that the payment through NEFT / RTGS is a
transaction between the tax payer and his bank and the payment will be deemed to
be received by the government only when the amount is credited to the designated
account in RBI. The payments in this mode would be permitted only against cheques and
no cash payments would be permitted to initiate NEFT / RTGS transaction.
Practical Aspects of GST Gaurav Gupta 41

42. NEFT/RTGS
 The following details will be available in the NEFT / RTGS mandate form:
• Beneficiary IFSC : IFSC of RBI hosting the NEFT / RTGS account for GST;
• Beneficiary Account Number : Account Number of RBI’s pooled account for GST;
• Account Name : CPIN of relevant challan (suitable validation to be provided by RBI);
• Total Amount;
• Sender to Receiver Remarks: GST Payment.
 The form will have a provision to write the NEFT/RTGS charges manually and then record
the total amount to be collected by the bank (sum of challan amount and charges). The
entire NEFT/RTGS form will be auto-populated except the part relating to the charges.
 Thereafter taxpayer can print a copy of NEFT / RTGS mandate form and approach his
bank branch (any bank) for payment of taxes (within a period of seven days of the
generation of CPIN, so that when the amount is received by RBI, the CPIN is still valid.)
Practical Aspects of GST Gaurav Gupta 42

43. Payment across
Department Counter
 There is no need to provide for this mode i.e. payment across departmental counters.
 It was also stated that taxpayers have been provided various other modes to facilitate
anytime, anywhere payment and this mode would be retrograde especially when e-
payment is being declared as the preferred mode of payment. However, the
departmental officers will accept the deposit of taxes during the course of
enforcement and anti-evasion investigations including by flying squads, etc.
 While doing so, if the concerned person is not already registered, the departmental officer
will create a temporary GSTIN on the GSTN common portal. For this purpose, GSTN will
provide a separate module and a GSTIN series for giving temporary GSTIN.
 The officer will collect the amount in respect of all types of taxes payable by him in
cash/cheque/DD from the said person, issue a temporary receipt to him, generate the
challan from GSTN, fill up the challan (at a later stage, if not possible at that time) and
remit the amount using Mode2.
Practical Aspects of GST Gaurav Gupta 43

44. Other Features
 A challan can be generated even without requirement of USER ID and Password, for
enabling payment of GST by a registered or an unregistered person on behalf of a
taxpayer as per the directions of the tax authority using the GSTIN (like the present
provision under Service tax). In this method, GSTN would provide for a validation check
(like CAPTCHA) so that challan can be created by a person and not by machine.
 Credit time period - In respect of credit card payments, presently the acquiring bank is
permitted to transfer the amount to the merchant on T+3 basis. However, t was informed
by RBI that this time could be reduced to T+1 basis by suitable negotiations with the
payment gateways. It is recommended that suitable negotiations may be carried out by the
Accounting authorities and RBI with payment gateways to credit the amount on T+1 basis.
Practical Aspects of GST Gaurav Gupta 44

45. Other Features
 A system of incentives / penalties to be administered by the respective Accounting
Authority (i.e. if defaults arise in remission of CGST/IGST/Additional Tax, by Accounting
Authority of Centre and if defaults arise in remission of SGST, by Accounting Authority of
the concerned state) can be built-in, based on a transparent evaluation mechanism of the
quality of data of collection reported by banks for accounting and reconciliation purposes.
 The CGA has suggested that any bank found not having built capabilities to adhere to the
framework, should not be allowed to collect GST receipts. Due care should be taken so
that discontinuities arising from manual interventions in the banks’ internal processes are
removed. The Committee also recommends that, over a long term, Accounting Authority
should develop a service quality rating for the participating banks based on identified
transparent and quantifiable parameters.
Practical Aspects of GST Gaurav Gupta 45

46. Proposed Accounting
system under GST
Standardised Codes
 Four different Major Heads of accounts would be required to be opened for classifying
CGST, IGST, Additional Tax and SGST along with underlying minor heads and sub-
heads, wherever required, to account for various taxes.
 There is a need to standardize these accounting codes for all items covered under GST
regime among all the States and UTs, since settlement of IGST would be based on
centralized reporting. SGST will be accounted for by the States and credited to individual
State Treasuries, through the existing system followed in each State. SGST will not be
reflected in accounts of the Central Government.
 The challan will reflect only the net tax paid amount along with related bifurcations of
nature of tax liability, such as, Interest, Penalty, Fees, other charges, etc. Presently, the
Tax Payment Challan information forms the basis of accounting and reconciliation
between the banks, RBI, Tax authorities and Accounting authorities of the
Centre/States/UTs. A list of sample tax accounting codes under GST is proposed in the
table below:-
Practical Aspects of GST Gaurav Gupta 46

47. Proposed Accounting
system under GST
 A list of sample tax accounting codes under GST is proposed in the table below:-
Type of Tax
Liability Tax Interest Penalty Fees Other
CGST 00010001 00010002 00010003 00010004 00010005
IGST 00020001 00020002 00020003 00020004 00020005
SGST 00030001 00030002 00030003 00030004 00030005
Additional
Tax 00040001 00040002 00040003 00040004 00040005
Practical Aspects of GST Gaurav Gupta 47

48. Challan Correction Mechanism
 ERROR IN GSTIN:
• This may happen in situations where the payment of tax is being made by either
authorized representative such as CA or any other person on behalf of the taxpayer. Such
kind of error will have no impact on the transfer of the funds to the account of the
concerned governments as the money will be correctly transferred on the basis of the
CIN.
• Further once the payment confirmation is received by GSTN from the concerned bank
then the amount will be credited to the ledger of the taxpayer whose GSTIN is mentioned
in the electronic string that is relayed by the bank to GSTN (earlier the same GSTIN was
communicated by GSTN to bank).
• The authorized representative, acting as an agent for the taxpayer should be responsible
to the principal for any error committed while performing authorized acts and tax
administration should have no role to play in this matter.
Practical Aspects of GST Gaurav Gupta 48

49. Challan Correction Mechanism
 ERROR IN MAJOR HEAD:
• In such a scenario, the bank though has collected the correct amount but has credited the
wrong head of tax account.
• Bank would be required to withdraw funds from one account and credit the other
account(s). It is proposed to permit banks to rectify such error before the end of the day
during which the amount has been received by the bank as at the end of the day, the
amount would have been credited in respective government accounts and thereafter the
same would also have been accounted by Accounting Authorities of the Centre and State.
• No correction in the challan data is required even in this case. If the error is noted after
reporting of the credit on T+1 basis, the normal process should be used.
Practical Aspects of GST Gaurav Gupta 49

50. Challan Correction Mechanism
 ERROR IN TOTAL AMOUNT:
If the amount paid is in excess then there is provision for either claim of refund by the
taxpayer or the amount can be carried forward to the next period and therefore there is no
need to provide for correction mechanism.
In view of recommended maintenance of cash ledger, the fields relating to ‘Tax period’
and ‘purpose’ will not be captured in the challan as being done presently and therefore
correction mechanism for correcting these two fields has not been provided for.
Practical Aspects of GST Gaurav Gupta 50

51. Return under GST

52. Features of Proposed
Return Process
• Self-assessment of tax liability by the taxpayer
• Common e-Return for CGST, SGST, IGST & Additional Tax
• Separate returns for different categories of taxpayers
 Normal/Regular & Casual Taxpayer (GSTR-1, 2 ,3 & 8)
 Compounding Taxpayer (GSTR- 4 & 8)
 Foreign Non-Resident Taxpayer (GSTR-5)
 Input Service Distributor (GSTR- 6)
 Tax Deductor (GSTR-7)
• Returns by a normal / casual taxpayer to be filed in sequential manner with different cut-
off dates to allow auto-population of return & automated matching of invoices
Practical Aspects of GST Gaurav Gupta 52

53. Features of Proposed
Return Process
• Payment of due tax is must for filing valid return
 Returns can be submitted with short payment but shall be treated as invalid – not taken into account
for invoice matching & inter-Government fund settlement
• Provision for filing revised information
 Differential Tax liability to be captured through Debit Note / Credit Note/ Supplementary invoices /
correction mechanism
• Maintenance of electronic Cash Ledger
• Maintenance of electronic ITC Ledger
• Maintenance of electronic Tax liability Ledger
Practical Aspects of GST Gaurav Gupta 53

54. Periodicity of Return Filing
• Normal/Regular taxpayers – monthly return
 10th day of succeeding month: last date for uploading supply invoice details – GSTR -1
 15th day of succeeding month: last date for auto-population & uploading purchase
details – GSTR-2
 17th day of succeeding month: last date for finalizing supply & purchase details
 20th day of succeeding month: last date for filing GSTR-3
• Compounding taxpayers to file quarterly return: by 18th day of succeeding month of the
Quarter – GSTR-4
• Foreign Non-resident Taxpayers to file monthly return: within 7 days after expiry of
registration - GSTR-5
Practical Aspects of GST Gaurav Gupta 54

55. Periodicity of Return Filing
• Input Service Distributors (ISD) taxpayers to file monthly return:
by 15th day of succeeding month – GSTR-6
• Tax Deductors to file monthly TDS return: by 10th of succeeding
month – GSTR- 7
• Casual taxpayers to file same return as for normal taxpayer but
with monthly periodicity and / or linked to validity period of
registration
• UN agencies to file return for the month in which they make
purchases – to claim refunds
Practical Aspects of GST Gaurav Gupta 55

56. Periodicity of Return Filing
• Annual Return (GSTR-8)
 All Regular and Compounding taxpayers to file
Annual Return
 Last date - 31st December following the end of the
financial year
 Simpler Annual Return for Compounding taxpayers
& those taxpayers who are not required to get their
accounts audited
 Annual Return to be accompanied with a statement
showing reconciliation of information as per Returns
with information as per annual audited accounts
 Reconciliation statement to be filed by taxpayers
who are required to get accounts audited under
Section 44AB of the Income Tax Act, 1961
Practical Aspects of GST Gaurav Gupta 56

57. Filing of Return
• To be filed by taxpayer at GST Common Portal either:
by himself logging on to the GST System using his own user ID & password;
or
through his authorized representative using the user Id & password (allotted
to the authorized representative by the tax authorities), as chosen at the time
of registration, logging on to the GST System
• Filing may be done either directly or by using Applications developed by
accounting companies / IT companies which will interact with GST System using
APIs
• Filing may be done through TRPs / FCs also
Practical Aspects of GST Gaurav Gupta 57

58. Revision
• Revision of information permitted
• Changes in Tax liability / ITC amount to be handled through
Debit- Credit Notes
Revision of supply invoices
Post sales discount
Volume discount
Amendments / Corrections
Practical Aspects of GST Gaurav Gupta 58

59. Removing Roadblocks

60. Challenges
Some foreseeable challenges for implementation of proposed GST are as
under:
• Centre v State
• Administrative Infrastructure
• Changes in the constitution and respective laws
• Acceptability and Adaptability by India Inc
Practical Aspects of GST Gaurav Gupta 60

61. • States afraid of loss of fiscal autonomy
• GST requires new constitutional and legislative structure
• Compensation to States in lieu of GST replacing present
tax structure
• Difference in determining mode of compensation
methodology
• Individual wish list of States
Centre v State
Practical Aspects of GST Gaurav Gupta 61

62. • Amendment of Constitution
• New laws for state and Centre
• Present abatements and exemptions
• Pending assessments and other matters for past many years
• Awareness and consensus with representative bodies
Legislative changes
Practical Aspects of GST Gaurav Gupta 62

63. • Alignment with VAT and Service Tax still in progress
• Fast changes in past in a short span of time
• Softwares and ERP systems take time to adapt
• Training to personnels and professionals
• Change in law – deep hole in corporate pockets
Acceptability by India Inc.
Practical Aspects of GST Gaurav Gupta 63

64. Disclaimer
This presentation has been prepared for internal use of ICAI and its members. The contents of this document are
solely for informational purpose. It does not constitute professional advice or a formal recommendation. The
presentation is made with utmost professional caution but in no manner guarantees the content for use by any
person. It is suggested to go through original statute / notification / circular / pronouncements before relying on the
matter given. The presentation is meant for general guidance and no responsibility for loss arising to any person
acting or refraining from acting as a result of any material contained in this presentation will be accepted by us.
Professional advice recommended to be sought before any action or refrainment.
CA Gaurav Gupta
Partner
MGS & Co.
507 B, D-Mall, Netaji Subhash Palace, Delhi - 110034
+91 11 32962487
+91 11 2735 2487
+91 98110 13940
camgsco@gmail.com
Thank you