The document discusses key aspects of the Goods and Services Tax (GST) implemented in India, including: 1) It outlines the major central and state taxes that were subsumed under GST. 2) It describes the structure of the GSTIN (GST registration number), including the 15-digit alphanumeric format and what each digit represents. 3) It provides details on the liability for GST registration, including the threshold limits and categories of businesses and persons required to register. 4) It summarizes some key aspects of filing GST returns, including the information required to be reported in FORM GSTR-1 for outward supplies.

3. Central Taxes State Taxes
Central Excise duty
•Additional duties of excise
•Excise duty levied under Medicinal
& Toiletries Preparation Act
•Additional duties of customs (CVD &
SAD)
•Service Tax
•Surcharges & Cesses
•State VAT / Sales Tax
•Central Sales Tax
•Purchase Tax
•Entertainment Tax (other than
those levied by local bodies
•Luxury Tax
•Entry Tax (All forms)
•Taxes on lottery, betting &
gambling
•Surcharges & Cesses
GST

4. Foreign Territory
CGST
+
SGST
IGST
CGST
+
UTGST
CGST
+
SGST
State 2
State 1
Union territory
IGST
IGST
IGST
IGST Credit can be used for payment of IGST, CGST, SGST / UTGST in that order

5. 15 digit Alphanumeric structure
State-wise
Based on PAN
13th Digit for Business Verticals of entities with
same PAN in same State
14th digit left blank for future use
15th digit – Checksum
Structure of GSTIN
21 3 764 5 8 9 10 151411 12 13
STATE PAN ENTITY BLANK CHECK

6. What is the liability for GST registration in India?
AS PAR SCHEDULE III, EVERY SUPPLIER SHALL BE
LIABLE TO BE REGISTERED UNDER GST IN THE STATE
FROM WHERE HE MAKES TAXABLE SUPPLY OF
GOODS AND/OR SERVICES IF HIS AGGREGATE
TURNOVER IN A FINANCIAL YEAR EXCEEDS
THRESHOLD LIMIT AS ANNOUNCED BY GST COUNCIL :
 20 LAKH
 10 LAKH IN NORTH EASTERN STATES

10. COMPULSORY REGISTRATION
Following person are required to get register irrespective of turnover :-
1. Person making inter-state supplies
2. Casual taxable person
3. Non-resident taxable person
4. Person paying tax under reverse charge
5. E-commerce aggregator where specified services are provided through it u/s
8(4)
6. Person who supply goods/ services through e-commerce operator who is
required to collect tax u/s 56.
7. E-Commerce operator
8. Person supplying online information and database access or retrieval services
from a place outside India to a person in India, other than a registered taxable
person.
9. Person who supply goods/ services on behalf of other such as agents.
10. Person required to deduct tax u/s 46 – separate registration
11. Person required to collect tax u/s 56 – separate registration
12. Input Service Distributor – separate registration
13. Other person as may be notified

11. (a) Person engaged exclusively in supply of non-taxable
or wholly exempt goods/ services.
(b) An agriculturist, for the purpose of agriculture
Not liable to registration
Following person are not liable to register :-

12. Composition Scheme
Q1. Who can opt for Composition Scheme? And What is the tax rate applicable on a
composition dealer?
Ans. Businesses dealing only in goods can only opt for composition scheme. Services
providers have been kept outside the scope of this scheme. However, restaurant sector
taxpayers may also opt for the scheme.
Q2. Must a Composition Dealer maintain detailed records?
Ans. No, a dealer registered under composition scheme is not required to maintain detailed
records as in the case of a normal taxpayer.
Q3. Do Composition Dealers have the option to avail Input Tax Credit?
Ans. No, a Composition Dealer is not allowed to avail input tax credit of GST paid to their
supplier.

13. Q4. Can a Composition Dealer issue Tax Invoice?
Ans. No. Since a Composition Dealer is not allowed to avail input tax credit, such a dealer
cannot issue a tax invoice as well. A buyer from composition dealer will not be able to claim
input tax on such goods.
Q5. Is liability to pay taxes under Reverse Charge Mechanism covered under the
Composite Scheme?
Ans. Any tax payable under Reverse Charge Mechanism will not be covered under the
scheme. These taxes will be liable to be paid as a normal tax payer.
Q6. Can a Composition Dealer collect composition tax separately?
Ans. No, a Composition Dealer is not allowed to collect composition tax from the buyer.
Q7. Can a dealer involved in interstate supplies opt for Composition Scheme?
Ans. No, Composition Scheme is available only for intra-state supplies. If a dealer is involved
in inter-State supplies, then he cannot opt for the scheme.
Composition Scheme

14. REVERSE CHARGE
Reverse charge is applicable in case of supply by an UNREGISTERED person to a
REGISTERED person, where such supply is of taxable goods or services i.e. exempt
supply received from an un-registered person is not covered under reverse charge
mechanism.
REVERSE CHAGRE ( GTA SERVICES)
Services provided or
agreed to be
provided by a goods
transport agency
(GTA) in respect of
transportation of
goods by road
Goods
Transport
Agency
(GTA)
Recipient of Service
a) any factory registered under or governed by the Factories
Act, 1948;
(b) any society registered under the Societies Registration Act,
1860 or under any other law for the time being in force in any
part of India;
(c) any co-operative society established by or under any law;
(d) any person registered under CGST/SGST/UTGST Act;
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any
law including association of persons.
(g) Casual taxable person
% of
service
tax
payable
by any
person
other
than the
service
provider
100%
i.e by
recipient

15. CREDIT MECHANISM
“Input” Means Any Goods Other Than Capital Goods Used Or Intended To Be Used By
A Supplier In The Course Or Furtherance Of Business;
“Input Service” Means Any Service Used Or Intended To Be Used By A Supplier In The
Course Or Furtherance Of Business;
“Capital Goods” Means Goods, The Value Of Which Is Capitalised In The Books Of
Account Of The Person Claiming The Input Tax Credit And Which Are Used Or Intended
To Be Used In The Course Or Furtherance Of Business;

16. 1. Possession Of A Tax Invoice Or Debit Note Or Document Evidencing Payment
2. Receipt Of Goods And/or Services
3. Goods Delivered By Supplier To Other Person On The Direction Of Registered
Person Against A Document Of Transfer Of Title Of Goods
4. Furnishing Of A Return
5. Where Goods Are Received In Lots Or Installments ITC Will Be Allowed To Be
Availed When The Last Lot Or Installment Is Received.
6. Failure To The Supplier Towards Supply Of Goods And/Or Services Within 180
Days From The Date Of Invoice, Itc Already Claimed Will Be Added To Output
Tax Liability And Interest To Paid On Such Tax Involved. On Payment To
Supplier, ITC Will Be Again Allowed To Be Claimed
7. No ITC Will Be Allowed If Depreciation Have Been Claimed On Tax Component
Of A Capital Good
CONDITIONS:

17. NO ITC
• NO ITC WOULD BE AVAILABLE TO THE PERSON WHO HAS MADE THE PAYMENT
OF TAX UNDER COMPOSITION SCHEME IN GST LAW.
• GOODS LOST, STOLEN, DESTROYED, WRITTEN OFF OR DISPOSED OF BY WAY OF
GIFT OR FREE SAMPLES ARE NOT AVAILABLE FOR CLAIMING ITC UNDER GST.
• NO ITC SHALL BE AVAILABLE FOR THE GOODS AND SERVICES OR BOTH USED
FOR PERSONAL CONSUMPTION AND NOT FOR BUSINESS PURPOSES.
• NO ITC WILL BE PROVIDED FOR MATERIALS USED IN THE CONSTRUCTION OF
IMMOVABLE PROPERTY OF FOR FURTHERANCE OF BUSINESS. ITC WILL NOT BE
AVAILABLE FOR THE GOODS OR SERVICES OR BOTH PROVIDED TO A TAXABLE
PERSON USED IN THE CONSTRUCTION OF AN IMMOVABLE PROPERTY ON HIS
OWN ACCOUNT INCLUDING WHEN SUCH GOODS OR SERVICES OR BOTH ARE
USED IN THE COURSE OR FURTHERANCE OF BUSINESS.
• ITC IS NOT AVAILABLE FOR MOTOR VEHICLES AND CONVEYANCES
• FOOD AND BEVERAGES
ETC………..
As par list issued by GST COUNCIL

18. GST ON ADVANCES RECEVIED
At the time of receiving advance, supplier will have to give the Receipt voucher. The
receipt voucher should contain:
1. Name of supplier,
2. Address,
3. GST number,
4. unique alphanumeric receipt voucher number of less than 16 characters,
5. date of issue,
6. name of the person who gave advance,
7. his/her address,
8. GST number,
9. description of goods or services,
10. amount of advance,
11. rate of GST,
12. amount of GST, and
13. Signature of supplier, at the time of filing of GST return the details of such receipts
are to be mentioned in the return.

19. Supplier have to prepare a tax invoice after supplying of goods/ services and deduct the amount
of advance received from it. GST will be charged on the remaining amount. For Example, If a
supplier supplied stationery of Rs. 5 Lakhs and have already received an advance of Rs. 3 Lakhs
before 3 months, then he/she have to charge GST on remaining amount of Rs. 2 Lakhs in the tax
invoice also. He/she should mention the information about Advance already received in tax
invoice.
After giving the advance to the supplier, the buyer will not get the credit of GST. Whenever,
supplier supplies goods or services and gives the tax invoice to the receiver then only he/she gets
credit of GST. Example If ‘A’ gives Rs. 10 Lakhs as advance on 5th July to “B” for buying
machinery of Rs. 15 Lakhs and 1 Lakh GST is chargeable on Rs. 10 lakhs. On 10th October, ‘B’
supplies the Machinery and in tax invoice mentions Rs. 15 Lakhs as cost and will charge GST of
Rs. 50,000/- on the remaining payment of Rs. 5 Lakhs. Then ‘A’ will get credit of Rs. 1.5 Lakh.
If the rate is not determine at the time of advances, then GST should be chargeable at 18%.
Above provisions shows that, tax is payable even if the advance payment is made against any
supply. Even, if the recipient has not received goods/services or the supplier has not supplied
goods/services yet.
Supplier has to pay tax and need to mention it in the statement of outward supplies.
When the supply is deliver to the recipient and final invoice is issued, after that recipient can
claim ITC.

20. The details of outward supplies of goods or services or both furnished in FORM GSTR- 1
shall include, inter alia, –
(a) invoice wise details of all –
(I) inter-State and intra-State supplies made to registered persons; and
(ii) inter-State supplies with invoice value more than two and a half lakh rupees
made to unregistered persons;
(b) consolidated details of all –
(I) intra-State supplies made to unregistered persons for each rate of tax; and
(ii) State wise inter-State supplies with invoice value up to two and a half lakh
rupees made to unregistered persons for each rate of tax;
(c) debit and credit notes, if any, issued during the month for invoices issued previously.

21. Return Description Who Files? Date For Filing
GSTR-1 Monthly Statement of Outward supplies of
Goods or Services
Registered Person 10th of the next month
GSTR-2 Monthly Statement of Inward supplies of
Goods or Services
Registered Person 15th of the next month
GSTR-3 Monthly Return for a normal taxpayer Registered Person 20th of the next month
GSTR-4 Quarterly Return Taxable Person opting for
Composition Levy
18th of the month
succeeding the quarter
GSTR-6 Monthly Return for an Input Service
Distributor (ISD)
Input Service Distributor 13th of the next month
GSTR-7 Monthly Return for authorities deducting tax
at source
Tax Deductor 10th of the next month
GSTR-9 Annual Return Registered Person other than an
ISD, TDS/TCS Taxpayer, Casual
Taxable Person and Non-
resident Taxpayer
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 order of cancellation,
whichever is later.

23. 1. Name, Address And GSTIN Of The Supplier;
2. A Consecutive Serial Number Not Exceeding Sixteen Characters, In One Or Multiple Series,
Containing Alphabets Or Numerals Or Special Characters Hyphen Or Dash And Slash
Symbolised As “-” And “/” Respectively, And Any Combination Thereof, Unique For A Financial
Year;
3. Date Of Its Issue;
4. Name, Address And GSTIN Or UIN, If Registered, Of The Recipient;
5. Name And Address Of The Recipient And The Address Of Delivery, Along With The Name Of
State And Its Code, If Such Recipient Is Un-registered And Where The Value Of Taxable Supply
Is Fifty Thousand Rupees Or More;
6. HSN Code Of Goods Or Accounting Code Of Services;
7. Description Of Goods Or Services;
8. Quantity In Case Of Goods And Unit Or Unique Quantity Code Thereof;
9. Total Value Of Supply Of Goods Or Services Or Both;
10. Taxable Value Of Supply Of Goods Or Services Or Both Taking Into Account Discount Or
Abatement, If Any;
11. Rate Of Tax (Central Tax, State Tax, Integrated Tax, Union Territory Tax Or Cess);
12. Amount Of Tax Charged In Respect Of Taxable Goods Or Services (Central Tax, State Tax,
Integrated Tax, Union Territory Tax Or Cess);
13. Place Of Supply Along With The Name Of State, In Case Of A Supply In The Course Of Inter-
state Trade Or Commerce;
14. Address Of Delivery Where The Same Is Different From The Place Of Supply;
15. Whether The Tax Is Payable On Reverse Charge Basis; And
16. Signature Or Digital Signature Of The Supplier Or His Authorized Representative:

24. HSN/ SAC codes
HSN/SAC code shall be mentioned in Tax Invoice as well as furnished in Table 12 of
FORM GSTR-1. The taxpayers who have turnover below the limit of Rs 1.5
Crore will have to mention the description of goods/service in place of code.
Whereas, the description is optional for taxpayers who are required to furnish
HSN/ SAC codes on the basis of aggregate turnover as below:
•Less than Rs. 1.5 crores – HSN/SAC code is not mandatory (Hence, composition
dealers may not be required to specify HSN at 2-digit level also).
•Rs. 1.5 crores to Rs. 5 crores – HSN code at minimum 2 digit chapter
level is mandatory. SAC code is mandatory.
•Above Rs. 5 crores – HSN code at minimum 4 digit chapter level is mandatory. SAC
code is mandatory.
•For export turnover, 8-digit HSN code is mandatory irrespective of any of the
above 3 categories.

25. Every registered person shall keep and maintain, at his principal place of business,
as mentioned in the certificate of registration, a true and correct account of—
(a) production or manufacture of goods;
(b) inward and outward supply of goods or services or both;
(c) stock of goods;
(d) input tax credit availed;
(e) output tax payable and paid; and
(f) such other particulars as may be prescribed:
Provided that where more than one place of business is specified in the certificate
of registration, the accounts relating to each place of business shall be kept at such
places of business: Provided further that the registered person may keep and
maintain such accounts and other particulars in electronic form in such manner as
may be prescribed.
Every registered person required to keep and maintain books of account or other
records in accordance with the provisions of sub-section (1) of section 35 shall
retain them until the expiry of seventy-two months (6 YEARS) from the due date
of furnishing of annual return for the year pertaining to such accounts and records.

26. 1. A record of goods lost, stolen or destroyed as well as those given as free sample and gifts will have to
be maintained under the new goods and services tax regime.
2. Maintaining separate account or records for each activity, including manufacturing, trading and
provision of services.
3. SGST of one state can not be adjusted with another state SGST. Ex: Rajasthan SGST can not be
adjusted with Gujarat SGST.
Penalty
4. For cases with no intention of fraud or tax evasion : An offender not paying tax or making short
payments has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000.
5. For cases of fraud : An offender has to pay a penalty amount of tax evaded/short deducted etc.,
i.e., 100% penalty, subject to a minimum of Rs. 10,000.
Additional penalties as follows-
Tax amount involved 50 lakhs 100 lakhs 250 lakhs
Jail term Upto 1 year Upto 3 years Upto 5 year
Fine In all three cases

27. BY
CHARTERED
ACCOUNTANT