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GST Introduction

This document provides an overview of key concepts and provisions under the Goods and Services Tax (GST) in India, as presented by Dr. RamSingh from Quantum University, Roorkee India. It covers topics such as the concept of supply, registrations, tax invoices and rates, input tax credits, tax deduction at source, payment of taxes, and transitional provisions for migrating to GST. Some key points include that GST is based on the concept of supply rather than individual taxes, there will be a single registration system across states, tax credits can be claimed across goods and service taxes, and the document provides guidance on carrying forward credits and assets from prior tax regimes to GST.

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Dr. RamSingh Sr. Assistant Professor School of Business & Management Quantum University, Roorkee India
Table of Contents Overview of GST. Concept of Supply Time Of Supply (TOS) Registrations Tax Invoices / Rates Composition Levy Input Tax Credits (ITC) TDS under GST Payment of Taxes Filling of Returns Refunds Audits Penalty & Prosecution Provisions Transitional Provisions
Overview of GST Goods & Service Tax (GST) Service Tax Excise Duty VAT Luxury Tax Entertainment Tax CST Octroi Duty State Excise Duty Features of GST. 1. One Nation & One Tax & One Market 2. Events are based on Concept of Supply. 3. Streamlining & Cross Utilization of Input Tax Credits. 4. Revolutionary Invoice Matching Concept. GST Governing Body with power to take decision on rates, exemption, threshold exemptions, etc with 33.33% voting power of Union Government & 66.66% power lies with the State Government. GST Council
Concept of Supply All the Earlier Laws, Taxes were based on Events like  Manufacturing, Provision of Service, Sales, Contract entered, Agreement made, etc. Under GST, the Concept of Supply has tremendously increased the Scope of Taxable events. Sale / Barter / Exchange / Transfer / License / Rental / Lease / Disposal of Goods. Transfer of Title in Goods / Rights in Goods. Electronic Commerce Operator IT Services – Designing, Development, etc Construction Services Transfer of Business Assets An Act of Refraining / Tolerating / Obligating, etc Land Lease, Tenancy, or Letting out of Any Building for Commerce Treatment of Goods. Import of Goods / Services.
Concept of Supply……….. Continued • What is “NOT” a Supply? • Any Exemption provided vide Notification of the Council. • Proportion of Abatement as notified by the Council. • Employer – Employee Services. • Services By Courts & Tribunal • Services of Government (State/Central/Local Authority). • Statutory Duty to be performed by Government. • Supply without Consideration. • Disposal of Assets of Business where Input Tax Credit has been availed. • Supply undertaken between Related Person. • Import of Services from a Related Person. • Supply of Goods – Agent Principal Relationship. • Business Assets utilized for personal used. • Inter-state Stock Transfer shall be treated as supply of Goods.
Schedule I – Supply without Consideration • Transfer of business assets, where ITC has been availed • Business Assets transferred w/o consideration to third party – taxable only if ITC availed • Gift upto Rs. 50,000 in a year to employee – not a supply • Services by an employee to an employer in the course of employment – in the negative list (Sch. III) • All perquisites which are part of employment contract are not supplies e.g. bonus, LTC, rent free accommodation or car, medical reimbursement, etc. • Gift of any goods or services beyond contractual terms – is covered under this entry e.g. Diwali gifts or vouchers • Litigation prone as activities like free lunch or free car or parties or foreign trips
Registrations Registration not required upto turnover upto 20 Lacs & 10 Lacs for Special Category States(Current Limit Proposed in Law.) No threshold Exemption applicable to following Items, • Inter-State Taxable Supply • Casual Taxable Person • Liability to Pay Under RCM. • ECOs • NRIs • GST TDS Deductors. • ISD • Online Information & Data Retrieval Services. • Others, as maybe notified. • Single Registration for IGST/SGST/CGST/UGST per state. • Registration required in each state from where supplies made – No Centralized Registration. • Multiple Business Verticals in a State – May opt for separate registration for each Business Vertical.
Registrations • PROOF OF CONSTITUTION OF BUSINESS • DETAILS OF ALL BANK ACCOUNTS • PROOF OF PRINCIPAL AND ADDITIONAL PLACE OF BUSINESS • DETAILS OF PARTNERS/ PARTNERS/ DIRECTORS • DETAILS OF GOODS OR SERVICES TO BE SUPPLIED • HSN CODE OF GOODS AND SERVICES • PHOTOGRAPHS OF PARTNERS/ DIRECTORS/ PROPRIETOR • ANY OTHER DOCUMENTS AS MAY BE PRESCRIBED. Documents Required for Registration • Format of Prov. GST Reg.
Time Of Supply (TOS) Time of Supply shall decide the liability to Pay Goods & Service Tax (GST). Inputs/services received or Non- Registered Person. TAXABLE PERSON OUTPUT SALES / SERVICES PROVIDED. Inward Supply of Goods/ Services Outward Supply of Goods/Services Earlier of , - Date of Receipts of Goods. - Date of Payment of Goods / Services - Date immediately following 30 days (Goods) & 60 days (Services) from date of Issuance of Invoice. - For Service, if neither applicable then date of receipt of service in Books. Earlier of , - Date of Issue of Invoice, or - Last Date of Issuance of Invoice in case of Goods - Provision of Service if Invoice Not issued within prescribed time - Date on which the payment is received. - For Service, if neither applicable then date of receipt of service in Books.
Levy of GST on purchases from URD Sec 9(4) • On purchase of taxable goods and services from URD(Unregistered Dealer), buyer liable to GST on Reverse Charge basis • No definition of taxable goods and services. • Illustrations: (Areas could possibly be covered) • Purchases from suppliers falling below threshold limit • Trader purchasing office supplies like stationery, tea, cleaning services from URD • A company purchasing cold drinks, cigarettes or sweets from nearby shops
Tax Invoices / Rates • Single Goods / Services / Commodity shall have Rates Prescribed in CGST / SGST & IGST. • If the Receiver is Located within the State CGST & SGST both shall be made applicable. • If the Receiver is Located in other State, IGST shall be made applicable. 5/6 Tier Rate Structure Proposed for • CGST (20%) • SGST (20%) • IGST (40%) • UGST (20%) 0 % 5 % 12 % 28 % Add. Levy % Nil Rate Items Essential Items Luxury Items Addon Tax on Ultra Luxury, Sin & Demerits Items Standard Rate 18 % Standard Rate
Composition Levy for Turnover < 50 Lacs (May Increase upto 1 Cr) WHO CAN OPT • A registered taxable person whose turnover in preceding financial year did not exceed fifty lakh rupees • If the turnover in the current financial year exceeds fifty lakh rupees, the permission shall stand withdrawn WHO CANNOT OPT • Supplier of Services • Supplier of Exempted Goods • Who makes inter-state supply of goods (IGST) • Supplies goods through ECO. RATE OF TAX • 1% of turnover in a (State/UT) in Case of a Manufacturer • 2.5% of turnover in a (State/UT) in case of a supply of food & non- alcoholic liquor for human consumption. • 0.5% of the turnover (State/UT) in case of a others suppliers. CONDITION FOR ELIGIBILITY • The person shall not collect tax from the recipient on supplies made by him nor he shall be eligible for any input tax credit. • Unless all units registered for Same PAN
A B C D CGST @ 10% SGST @ 10% T2T1 T3 CGST paid = Rs. 10 SGST paid = Rs. 10 CGST paid = Rs. 10 (Rs. 20 – 10 (Input Tax Credit) SGST paid = Rs. 10 (Rs. 20 – 10 (Input Tax Credit) CGST paid = Rs. 10 (Rs. 30 – 20 (Input Tax Credit) CGST paid = Rs. 10 (Rs. 30 – 20 (Input Tax Credit) Input Tax Credits (ITC)
Taxes Manufacturer Trader Service Provider Contractors Excise Duty VAT Octroi CST SAD Service Tax (General) Luxury Tax Various Taxes and its Credit aspect.
Input Tax Credits (ITC)……… continued What are the Credits available? • All Input tax Charged on supply of Goods / Services on the Goods & Services intended to be used in course of furtherance of Business or Commerce including GST paid on RCM basis. • Credits available for WCS in relation to Plants and Machinery other than Land, Buildings & other Civil Structures, Telecommunication Towers, Pipelines outside the factory premises. What are the conditions for availing Input Credits in General? • Registered person should be in possession of tax invoices or debit notes. • Should have received the goods and services or both. • Tax charged in respect of such supply has been actually paid to the government, subject to provisional availment of credit by supplier, and, • Supplier has furnished the Monthly Return. • If the recipient fails to pay the supplier within 180 days, then amount of such credit availed needs to be added back to their output liability alongwith Interest. Credits shall be allowed subsequently on the payment made the supplier. • No credits shall be allowed after due date of Monthly Return to be filed for September following the F.Y. for which such Invoice pertains to, or , Furnishing of Annual Returns. i.e. For F.Y. 2017-18 uptill 20th Oct’18 or Date of Annual Return filed (Due date is 31st Dec’ 2018)
Input Tax Credits (ITC) What/Whose Credits are disallowed? • Non Registered Taxable person • No Credit on Depreciated components of the Capital Goods. • Apportionment of the ITC, if claimed partly for Business (including zero rated suppliers) and Partly of Personal Use or use of Exempted Supply (incl t/o of RCM, securities, sale of land, sale of building excl construction services). • Option to Banking company, FI, NBFC to avail 50% of the eligible credit of the month without complying Taxable / Exempted apportionment • No Credit of Motor Vehicles & other Conveyances, in general except when used similar conveyances, transportation of passengers or imparting training & Transportation of Goods. • Supply of foods, beverages, catering, etc except when used to similar outward supply. • Membership of club, health & fitness centre. • Rent-a-Cab, Life & Health Insurance, except Government Notified obligatory duty or similar outward supply. • Travel benefits extended to employees. • Works Contract Services for construction of immovable property (other than P&M) except when used for similar outward supplies • Goods & Services received for construction of immovable property (other than P&M) on his own account or even for furtherance of Business. (Consider Section 2(119) & Sch II 5(b) for Definition of Construction) • Person paying Tax in Composition Scheme.
Input Tax Credits (ITC) Case Study 1:- Cenvat Credits to Works Contractor. Scenario 1: Civil Contractor has undertaken Taxable Works Contract for Municipal Corp, he hire multiple contractors and gives them separate works contracts. Whether he shall be available to take credit under GST? Ans: YES u/s 17(5)(c). Only for Works Contract Services.
Input Tax Credits (ITC) Case Study 2:- Cenvat Credits to Builders. Scenario 1: Builder/Developer has a partially completed construction. He continued to avail CENVAT Credit under Service Tax Regime. Service Tax Credit is available on all the input services and not on inputs including works contractors services. Vat is Payable at 0.6% & Service Tax is payable at 4.5% Stamp Duty is also paid at ~5%. Whether Cenvat shall be available? Conditions : - As per Section 17(5)(d), which states, " (5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:— (d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.” Issues : - Inputs were mainly charged under Excise & VAT. Input services were charged under Service Tax. With the Enactment of GST, segregation of Labour & Material under CGST, SGST and IGST become virtually impossible and therefore, most likely no Credits whatsoever shall be made available to builders and standard fix tax rates shall be made applicable only on deemed supply of services i.e. booking before OC. Unutilized credits should ideally shall be denied under the GST, as any transitional credits needs to be eligible in both the Laws.
1. Migration of Credits by the Existing Registered Person. No credit if not eligible under GST Act. Not Furnished the Returns under the Earlier Laws Credit relates to goods manufactured/clear ed under Exemption 2. Unavailed ITC of Capital Goods Should be eligible ITC under both the Laws. Earlier and GST 3. Person exempted under earlier law, WCS availing benefit of 26/2012, First/Second Stage dealer, etc ITC available for inputs, semi- finished, finished goods held in stock on the appointed day. Prov. Such inputs shall be used for making taxable supplies. Supplier of Services not eligible for abatement under this Act. Inputs are eligible of ITC under GST & All the duty availing documents are available not more than 12 month. 3. Person exempted under earlier law, without Invoices……. Continued……… Person other than Manufacturer & Supplier of Services can avail ITC without any duty availing documents. Credit allowed on Central Tax payable @ 40%. The same shall be credited after supply being made and tax been paid. Scheme shall be available for 6 tax periods. Goods should not be exempted or nil rated, doc. Of procurement needs to be available, Details to Stock to be Furnished. Similar Provision of VAT under SGST Rules for State offering Tax on MRP Scheme Migration of Credit from Existing Law – Transitional Provision
4. Received Inputs / Inputs Services after Appointed day for which Tax Paid under Earlier Law All Such Invoices to be Recorded within 30 days of Appointed Day. 5. Person Migrating from Composition Scheme. Should be eligible ITC under both the Laws. Earlier and GST ITC available for inputs, semi- finished, finished goods held in stock on the appointed day. Prov. Such inputs shall be used for making taxable supplies. Possession of Invoices & shall not pay Tax u/s 10 of GST (Composition). Not more than 1 yr 6. Person with Centralized Registration ITC available for Credit shown in Return under Existing Law. Need to file within 3 months. Can be transferred to any registered person having same PAN. Inputs are eligible of ITC under GST 7. Credit reversed due to Non-Payment under Earlier Law Credit can be availed if payment done within 3 months of appointed day Migration of Credit from Existing Law – Transitional Provision
Tax Deduction at Source @ 1% LIABILITY TO DEDUCT • A department or establishment of central or state government • Local authority • Governmental agencies • Such persons or categories of persons as may be notified on recommendations of the GST Council VALUE OF CONTRACT • Liability to deduct if value of contract exceeds Rs 2.5 Lakhs • Only Same State. • Paid by 10th of Next Month. • For the purpose of tax deduction, the value of supply shall be taken as amount excluding the tax amount in the invoice CREDIT OF TAX DEDUCTED • The deductee can claim credit of the tax deducted in his electronic cash ledger REFUND OF EXCESS TAX DEDUCTED • Refund of excess amount or erroneous deduction shall be dealt with in accordance of refund provisions • No refund shall be granted where the amount deducted has been credited to the electronic cash ledger of the deductee
Payment of Taxes IGST CGST SGST IGST CGST SGST ELECTRONIC CASH REGISTER ELECTRONIC CREDIT REGISTER LIABILITY AS AVAILABLE IN ELECTRONIC LIABILITY REGISTER CAN BE DISCHARGED THROUGH • Tax • Interest • Penalty • Arrears • Fees or any other amount payable under the act CGST IGST SGST IGST LIABLITY TO BE DISCHARGED ON REVERSE CHARGE BASIS WILL BE DISCHARGED THROUGH CASH REGISTER UGST IGST UGST
Filling of Returns INVOICE WISE DETAILS TO BE UPLOADED IN THE RETURNS UNDER GSTR-I. CANNOT FILE GSTR-1 FROM 11TH TO 15TH OF THE SUCEEDING MONTH. CONCEPT OF INVOICE MATCHING INTRODUCED IN THE RETURNS TAXABLE PERSON OUTWARD RECEIPIENT INWARD SUPPLIER GSTR 1 10TH OF SUCCEEDING MONTH GSTR 2 15TH OF SUCCEEDING MONTH AUTOPOPULATED UNDER PART A OF GSTR-2A ANY ALTER, REJECT, MODIFY, UNDER GSTR – 2 TO BE INTIMATED UNDER GSTR –1A MONTHLY RETURN IN GSTR 3 OF TAX BY 20TH OF SUCCEEDING MONTH ANNUAL RETURN IN GSTR 9 BY 31ST DECEMBER OF SUCCEEDING FINANCIAL YEAR Final Turnover of Input Autopopulated based on GSTR-2 Final Turnover of Output Autopopulated based on GSTR 1
GSTR 1: Details of Outward supplies Step 1 GSTR 2A: Auto- populated in part A of the GSTR-2A of recipients Step 2 GSTR 2: On the basis of above GSTR-2A, details of inward supplies added, corrected or deleted by recipient to be disclosed under GSTR-2, including RCM details Step 3 GSTR-1A : The details of inward supplies added, corrected or deleted by the recipient shall be made available to the supplier Step 4 10 11 15 16 Supplier will accept or reject the modifications Step 5 17 GSTR-1 will be amended to the extent modifications are accepted by supplier. Step 6 17 GSTR 3 Step 8 Part A of GSTR 3 Part A of GSTR 3 20 Make Payment Step 7 20 Part B of GSTR 3 GSTN – Return Compliances
Filling of Returns……. continued OTHER FEATURES • Annual return to be submitted along with copy of audited annual accounts and a reconciliation statement, reconciling the values of supplies declared in the return furnished in the year • Filing of Nil return (Regular / Composition) also mandatory under GST • No Returns can be filed if previous period returns pending. • If GSTR-1 10th Deadline missed – Min. Penalty of Rs.500 • Late fee prescribed for late filing of returns • Furnishing Details/Monthly Returns – 100/day or 5000/- . • Annual Returns - 100/day or 0.25% of the Annual Turnover in that State. OTHER RETURNS FORM DUE DATE QUARTERLY RETURN FOR COMPOSITION LEVY GSTR -4 18TH MONTHLY RETURN FOR NON-RESIDENT FOREIGN TAXABLE PERSON GSTR -5 20TH ISD RETURN GSTR -6 13TH RETURN FOR PERSONS DEDUCTING TAX AT SOURCE GSTR -7 10TH
RETURNS: GSTN PORTAL - LEDGER BALANCE
RETURNS: GSTN PORTAL -- RECEIVER & SUPPLIER MISMATCH REPORT
RETURNS: GSTN PORTAL --ALL TYPES OF RETURNS
RETURNS: GSTN PORTAL -- DETAILS OF OUTWARD SUPPLIES TO BE FURNISHED Details of Outward Supplies Supplies made to Unreg. persons Inter State Supplies Intra State Supplies Supplies made to Reg. persons Invoice wise details of all Inter State & Intra State Supplies If Invoice value more than Rs.2.5 Lacs than invoice wise details Consolidated details of Supplies If Invoice value less than Rs.2.5 Lacs than state wise consolidated details of supplies
GSTR-1 – INVOICE DETAILS
GSTR-2 - INWARD SUPPLIES
Rule 7 of ITC – Apportionment of Credit on Inputs or Input Service Case Study 3:- Reversal of Credit when Registered Person using inputs partly for Non Business Purpose , partly for Exempt Supplies , partly for Taxable Supplies.  T = Total input tax on inputs of a tax period  T1 = Input tax on inputs exclusively used for non business purpose.  T2 = Input tax on inputs exclusively used for exempt supplies.  T3 = Input tax on inputs in eligible  T4 = ITC attributable excl. for Zero rate supplies & Taxable Supplies.  C1 = Amount credited to electronic ledger.  C2 = Common credit after attribution of ITC to taxable supplies(T4).  D1 = Common ITC attributable to exempt supplies.  E = Total exempt supplies of a tax period. (Prev. month if no data)  F = Total turnover of a tax period. (Prev. month if no data)  D2 = common ITC attributable to non business purpose supplies.  C3 = remainder common credit attributable to taxable and zero rated supplies.  C3 shall be computed separately for CGST, IGST, UGST, SGST.  Amt equal to d1 and d2 shall be added to output tax liability.  The ITC will be calculated finally for entire F.Y. as per the rule 7 before Sept of the succeeding year.  If difference between total amts calculated annually in respect of D1 & D2 exceeds the total of the amt determined for each tax period is excess, it shall be added to the output tax liability and such amt is to be paid with interest from April of succeeding year till date of payment.  In Vice versa situation the difference shall be claimed as credit not later than September of succeeding year. T=1000000 T1 = 25000, T2 = 345000, T3 = 67000 T4=472000 C1=T-(T1+T2+T3) = 1000000-(25000+345000+67000) = 563000 C2=C1–T4 = 563000 – 472000 = 91000 D1=(E÷F) X C2 = (7/10) x 91000 = 63700 D2=5% of C2 = 0.05 x 91000 = 4550 C3=C2-(D1+D2) = 91000-(63700+4550) = 22750
GSTR-3 - DETAILS OF MONTHLY RETURN
GSTR-3 – TURNOVER DETAILS
MATCHING, REVERSAL & RECLAIM OF ITC Inward Supply Furnished in GSTR 2. Excess ITC Claimed/ Supply Not Declared by supplier Mismatch Communicated to Supplier in GSTR-1A Not Rectified by Supplier Communicated under GSTN Mismatch Reports Added to OTL of Recipient & shall pay alongwith Interest Reduced from OTL of Recipient if Supplier declares details within time specified u/s 39(9) If declared by supplier than OTL shall be reduced & Interest shall be credited to electronic ledger of the Recipient Case Study 4 : If Taxable person claims excess ITC for the Month of April in their Return or the supply is not being declared by the Suppliers for the month of April. May’ 15 May’ 15 May’15-17 Rectified then Final and GSTR 1 stands Amended. May 20-31 Either Suppliers issues Debit note increases OTL for May Month Either Receiver shall reverse the Credit in May month with Interest. OTL June Any Rectification before Sept of Suceeding F.Y. or Annual Return.
MATCHING, REVERSAL & RECLAIM OF ITC Case Study 5 : If the Recipient claims ITC equals to or less than the output tax paid by the supplier. MATCHED Rule 10 exp(2) Case Study 6 : If the Supplier reduces the output tax liability by issuing the Credit Notes for the Month of April. Credit note relating to outward supply furnished in GSTR-1 Reduction in OTL exceeds corresponding reduction in claim for ITC – 1A reflects Excess Credit Mismatch Communicated to Supplier & Recipient Not Rectified by Recipient Reduced from OTL of Supplier if Recipient declares details within time specified u/s 39(9) If declared by Recipient than OTL shall be reduced & Interest shall be credited to electronic ledger of the Supplier May’ 10 May’ 15-17 Rectified then Final and GSTR 1 stands Amended. May’ 20-31 Either Suppliers cancels credit note increases OTL for May Month Either Receiver shall reverse the Credit in May month with Interest. Added to OTL of Supplier & shall pay alongwith interest Any Rectification before Sept of Suceeding F.Y. or Annual Return. OTL June
Refunds Refund of Tax & Interest • Application shall be filed before expiry of 2 years. • Special category persons shall file before expiry of 6 months. • Refund filed for tax, duty, cenvat credit or interest paid in earlier law shall be disposed of as per earlier law & if admissible shall be paid in Cash. (Transitional Provision) Procedure & Timings for Sanctioning Refunds • Provide documentary evidence as prescribed • If refund is < Rs.2 Lac, than he shall only file a declaration that incidence of tax has not been passed. • If refund Zero rated supplies of G/S is claimed, 90% of claim shall be refunded on provisional basis. • Officer shall issue order within 60 days of receipt of application • Interest not exceeding 6%shall be paid if not refunded within 60 days Refund of Unutilized ITC • For exempted exports including zero rated supplies • Rate of Tax on inputs is higher than on output supplies (Inverted Levy) • No Refund if Duty Drawback claimed.
Audits & Records • Departmental Audit - Commissioner may by general or special order undertake audit of any taxable person which shall be conducted by tax authorities. • Special Audit – At any proceedings, any officer having regard to nature & complexity of the case with prior approval of Commissioner, may get the accounts audited by a Chartered Accountant or Cost Accountant nominated by the Commissioner & remuneration of such audit shall be paid by Commissioner. Types of Audit • Maintain books of accounts & other records for a period of 6 years from the due date of filing of Annual Return for the year pertaining to such accounts & records Records Turnover based Audit – Where turnover of a registered taxable person exceeds a 1 Crore (Return Rule 21(2)) in a financial year, he shall get his accounts audited by a Chartered Accountant or Cost Accountant & shall submit audited annual accounts, reconciliation statement & other documents as prescribed.
Penalty & Prosecution Provisions Tax has been paid or short paid or erroneously refunded or ITC wrongly availed Reasons other than fraud,etc (S.73) By reason of fraud,etc (S.74) Particulars U/s 73 U/s 74 Maximum Penalty 10% of tax OR Rs.10,000 WEH 100% of tax Period covered 3 yrs. 5 yrs. Paid before SCN - 15% of tax After SCN but within 30 days - 25% of tax After Order issued but within 30 days 10% of tax OR Rs.10,000 WEH 50% of tax Amount of Evasion Imprisonment > Rs. 5 Cr Upto 5 yrs. with Fine Rs. 2 Cr - 5 Cr Upto 3 yrs. with Fine Rs. 1 Cr - 2 Cr Upto 1 yr. with Fine TYPES OF OFFENSES 1. Supplies G/S without issue of any invoice 2. Issue of invoice without supply of G/S 3. Collects tax but fails to pay to the credit of Govt. 4. Takes/utilizes ITC point # 2 above. 5. Collects tax in contravention of provisions but fails to pay to the credit of Govt. 6. Evades tax, wrongly avails ITC or refund 7. Falsifies financial records 8. Prevents officer in discharge of his duties 9. Tampers or destroys any evidence 10. Engages in services which are in contravention 11. Engages in goods liable for confiscation 12. Fails to supply information under this Act 13. Attempts to commit any of the above > Rs.5Cr. Cognizable & Non- Bailable. Imprisonment upto 6 month with/or Fine.
Dr. Ram Singh M.Com, MBA, PhD Sr. Assistant Professor School of Business & Management Quantum University Roorkee Email: ramsingh.qsb@quantumeducation.in Contact: 9451240299
Thank You!

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GST Introduction

  • 1.
    Dr. RamSingh Sr. AssistantProfessor School of Business & Management Quantum University, Roorkee India
  • 2.
    Table of Contents Overviewof GST. Concept of Supply Time Of Supply (TOS) Registrations Tax Invoices / Rates Composition Levy Input Tax Credits (ITC) TDS under GST Payment of Taxes Filling of Returns Refunds Audits Penalty & Prosecution Provisions Transitional Provisions
  • 3.
    Overview of GST Goods& Service Tax (GST) Service Tax Excise Duty VAT Luxury Tax Entertainment Tax CST Octroi Duty State Excise Duty Features of GST. 1. One Nation & One Tax & One Market 2. Events are based on Concept of Supply. 3. Streamlining & Cross Utilization of Input Tax Credits. 4. Revolutionary Invoice Matching Concept. GST Governing Body with power to take decision on rates, exemption, threshold exemptions, etc with 33.33% voting power of Union Government & 66.66% power lies with the State Government. GST Council
  • 4.
    Concept of Supply Allthe Earlier Laws, Taxes were based on Events like  Manufacturing, Provision of Service, Sales, Contract entered, Agreement made, etc. Under GST, the Concept of Supply has tremendously increased the Scope of Taxable events. Sale / Barter / Exchange / Transfer / License / Rental / Lease / Disposal of Goods. Transfer of Title in Goods / Rights in Goods. Electronic Commerce Operator IT Services – Designing, Development, etc Construction Services Transfer of Business Assets An Act of Refraining / Tolerating / Obligating, etc Land Lease, Tenancy, or Letting out of Any Building for Commerce Treatment of Goods. Import of Goods / Services.
  • 5.
    Concept of Supply………..Continued • What is “NOT” a Supply? • Any Exemption provided vide Notification of the Council. • Proportion of Abatement as notified by the Council. • Employer – Employee Services. • Services By Courts & Tribunal • Services of Government (State/Central/Local Authority). • Statutory Duty to be performed by Government. • Supply without Consideration. • Disposal of Assets of Business where Input Tax Credit has been availed. • Supply undertaken between Related Person. • Import of Services from a Related Person. • Supply of Goods – Agent Principal Relationship. • Business Assets utilized for personal used. • Inter-state Stock Transfer shall be treated as supply of Goods.
  • 6.
    Schedule I –Supply without Consideration • Transfer of business assets, where ITC has been availed • Business Assets transferred w/o consideration to third party – taxable only if ITC availed • Gift upto Rs. 50,000 in a year to employee – not a supply • Services by an employee to an employer in the course of employment – in the negative list (Sch. III) • All perquisites which are part of employment contract are not supplies e.g. bonus, LTC, rent free accommodation or car, medical reimbursement, etc. • Gift of any goods or services beyond contractual terms – is covered under this entry e.g. Diwali gifts or vouchers • Litigation prone as activities like free lunch or free car or parties or foreign trips
  • 7.
    Registrations Registration not requiredupto turnover upto 20 Lacs & 10 Lacs for Special Category States(Current Limit Proposed in Law.) No threshold Exemption applicable to following Items, • Inter-State Taxable Supply • Casual Taxable Person • Liability to Pay Under RCM. • ECOs • NRIs • GST TDS Deductors. • ISD • Online Information & Data Retrieval Services. • Others, as maybe notified. • Single Registration for IGST/SGST/CGST/UGST per state. • Registration required in each state from where supplies made – No Centralized Registration. • Multiple Business Verticals in a State – May opt for separate registration for each Business Vertical.
  • 8.
    Registrations • PROOF OFCONSTITUTION OF BUSINESS • DETAILS OF ALL BANK ACCOUNTS • PROOF OF PRINCIPAL AND ADDITIONAL PLACE OF BUSINESS • DETAILS OF PARTNERS/ PARTNERS/ DIRECTORS • DETAILS OF GOODS OR SERVICES TO BE SUPPLIED • HSN CODE OF GOODS AND SERVICES • PHOTOGRAPHS OF PARTNERS/ DIRECTORS/ PROPRIETOR • ANY OTHER DOCUMENTS AS MAY BE PRESCRIBED. Documents Required for Registration • Format of Prov. GST Reg.
  • 9.
    Time Of Supply(TOS) Time of Supply shall decide the liability to Pay Goods & Service Tax (GST). Inputs/services received or Non- Registered Person. TAXABLE PERSON OUTPUT SALES / SERVICES PROVIDED. Inward Supply of Goods/ Services Outward Supply of Goods/Services Earlier of , - Date of Receipts of Goods. - Date of Payment of Goods / Services - Date immediately following 30 days (Goods) & 60 days (Services) from date of Issuance of Invoice. - For Service, if neither applicable then date of receipt of service in Books. Earlier of , - Date of Issue of Invoice, or - Last Date of Issuance of Invoice in case of Goods - Provision of Service if Invoice Not issued within prescribed time - Date on which the payment is received. - For Service, if neither applicable then date of receipt of service in Books.
  • 10.
    Levy of GSTon purchases from URD Sec 9(4) • On purchase of taxable goods and services from URD(Unregistered Dealer), buyer liable to GST on Reverse Charge basis • No definition of taxable goods and services. • Illustrations: (Areas could possibly be covered) • Purchases from suppliers falling below threshold limit • Trader purchasing office supplies like stationery, tea, cleaning services from URD • A company purchasing cold drinks, cigarettes or sweets from nearby shops
  • 11.
    Tax Invoices /Rates • Single Goods / Services / Commodity shall have Rates Prescribed in CGST / SGST & IGST. • If the Receiver is Located within the State CGST & SGST both shall be made applicable. • If the Receiver is Located in other State, IGST shall be made applicable. 5/6 Tier Rate Structure Proposed for • CGST (20%) • SGST (20%) • IGST (40%) • UGST (20%) 0 % 5 % 12 % 28 % Add. Levy % Nil Rate Items Essential Items Luxury Items Addon Tax on Ultra Luxury, Sin & Demerits Items Standard Rate 18 % Standard Rate
  • 12.
    Composition Levy forTurnover < 50 Lacs (May Increase upto 1 Cr) WHO CAN OPT • A registered taxable person whose turnover in preceding financial year did not exceed fifty lakh rupees • If the turnover in the current financial year exceeds fifty lakh rupees, the permission shall stand withdrawn WHO CANNOT OPT • Supplier of Services • Supplier of Exempted Goods • Who makes inter-state supply of goods (IGST) • Supplies goods through ECO. RATE OF TAX • 1% of turnover in a (State/UT) in Case of a Manufacturer • 2.5% of turnover in a (State/UT) in case of a supply of food & non- alcoholic liquor for human consumption. • 0.5% of the turnover (State/UT) in case of a others suppliers. CONDITION FOR ELIGIBILITY • The person shall not collect tax from the recipient on supplies made by him nor he shall be eligible for any input tax credit. • Unless all units registered for Same PAN
  • 13.
    A B CD CGST @ 10% SGST @ 10% T2T1 T3 CGST paid = Rs. 10 SGST paid = Rs. 10 CGST paid = Rs. 10 (Rs. 20 – 10 (Input Tax Credit) SGST paid = Rs. 10 (Rs. 20 – 10 (Input Tax Credit) CGST paid = Rs. 10 (Rs. 30 – 20 (Input Tax Credit) CGST paid = Rs. 10 (Rs. 30 – 20 (Input Tax Credit) Input Tax Credits (ITC)
  • 14.
    Taxes Manufacturer TraderService Provider Contractors Excise Duty VAT Octroi CST SAD Service Tax (General) Luxury Tax Various Taxes and its Credit aspect.
  • 15.
    Input Tax Credits(ITC)……… continued What are the Credits available? • All Input tax Charged on supply of Goods / Services on the Goods & Services intended to be used in course of furtherance of Business or Commerce including GST paid on RCM basis. • Credits available for WCS in relation to Plants and Machinery other than Land, Buildings & other Civil Structures, Telecommunication Towers, Pipelines outside the factory premises. What are the conditions for availing Input Credits in General? • Registered person should be in possession of tax invoices or debit notes. • Should have received the goods and services or both. • Tax charged in respect of such supply has been actually paid to the government, subject to provisional availment of credit by supplier, and, • Supplier has furnished the Monthly Return. • If the recipient fails to pay the supplier within 180 days, then amount of such credit availed needs to be added back to their output liability alongwith Interest. Credits shall be allowed subsequently on the payment made the supplier. • No credits shall be allowed after due date of Monthly Return to be filed for September following the F.Y. for which such Invoice pertains to, or , Furnishing of Annual Returns. i.e. For F.Y. 2017-18 uptill 20th Oct’18 or Date of Annual Return filed (Due date is 31st Dec’ 2018)
  • 16.
    Input Tax Credits(ITC) What/Whose Credits are disallowed? • Non Registered Taxable person • No Credit on Depreciated components of the Capital Goods. • Apportionment of the ITC, if claimed partly for Business (including zero rated suppliers) and Partly of Personal Use or use of Exempted Supply (incl t/o of RCM, securities, sale of land, sale of building excl construction services). • Option to Banking company, FI, NBFC to avail 50% of the eligible credit of the month without complying Taxable / Exempted apportionment • No Credit of Motor Vehicles & other Conveyances, in general except when used similar conveyances, transportation of passengers or imparting training & Transportation of Goods. • Supply of foods, beverages, catering, etc except when used to similar outward supply. • Membership of club, health & fitness centre. • Rent-a-Cab, Life & Health Insurance, except Government Notified obligatory duty or similar outward supply. • Travel benefits extended to employees. • Works Contract Services for construction of immovable property (other than P&M) except when used for similar outward supplies • Goods & Services received for construction of immovable property (other than P&M) on his own account or even for furtherance of Business. (Consider Section 2(119) & Sch II 5(b) for Definition of Construction) • Person paying Tax in Composition Scheme.
  • 17.
    Input Tax Credits(ITC) Case Study 1:- Cenvat Credits to Works Contractor. Scenario 1: Civil Contractor has undertaken Taxable Works Contract for Municipal Corp, he hire multiple contractors and gives them separate works contracts. Whether he shall be available to take credit under GST? Ans: YES u/s 17(5)(c). Only for Works Contract Services.
  • 18.
    Input Tax Credits(ITC) Case Study 2:- Cenvat Credits to Builders. Scenario 1: Builder/Developer has a partially completed construction. He continued to avail CENVAT Credit under Service Tax Regime. Service Tax Credit is available on all the input services and not on inputs including works contractors services. Vat is Payable at 0.6% & Service Tax is payable at 4.5% Stamp Duty is also paid at ~5%. Whether Cenvat shall be available? Conditions : - As per Section 17(5)(d), which states, " (5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:— (d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.” Issues : - Inputs were mainly charged under Excise & VAT. Input services were charged under Service Tax. With the Enactment of GST, segregation of Labour & Material under CGST, SGST and IGST become virtually impossible and therefore, most likely no Credits whatsoever shall be made available to builders and standard fix tax rates shall be made applicable only on deemed supply of services i.e. booking before OC. Unutilized credits should ideally shall be denied under the GST, as any transitional credits needs to be eligible in both the Laws.
  • 19.
    1. Migration ofCredits by the Existing Registered Person. No credit if not eligible under GST Act. Not Furnished the Returns under the Earlier Laws Credit relates to goods manufactured/clear ed under Exemption 2. Unavailed ITC of Capital Goods Should be eligible ITC under both the Laws. Earlier and GST 3. Person exempted under earlier law, WCS availing benefit of 26/2012, First/Second Stage dealer, etc ITC available for inputs, semi- finished, finished goods held in stock on the appointed day. Prov. Such inputs shall be used for making taxable supplies. Supplier of Services not eligible for abatement under this Act. Inputs are eligible of ITC under GST & All the duty availing documents are available not more than 12 month. 3. Person exempted under earlier law, without Invoices……. Continued……… Person other than Manufacturer & Supplier of Services can avail ITC without any duty availing documents. Credit allowed on Central Tax payable @ 40%. The same shall be credited after supply being made and tax been paid. Scheme shall be available for 6 tax periods. Goods should not be exempted or nil rated, doc. Of procurement needs to be available, Details to Stock to be Furnished. Similar Provision of VAT under SGST Rules for State offering Tax on MRP Scheme Migration of Credit from Existing Law – Transitional Provision
  • 20.
    4. Received Inputs/ Inputs Services after Appointed day for which Tax Paid under Earlier Law All Such Invoices to be Recorded within 30 days of Appointed Day. 5. Person Migrating from Composition Scheme. Should be eligible ITC under both the Laws. Earlier and GST ITC available for inputs, semi- finished, finished goods held in stock on the appointed day. Prov. Such inputs shall be used for making taxable supplies. Possession of Invoices & shall not pay Tax u/s 10 of GST (Composition). Not more than 1 yr 6. Person with Centralized Registration ITC available for Credit shown in Return under Existing Law. Need to file within 3 months. Can be transferred to any registered person having same PAN. Inputs are eligible of ITC under GST 7. Credit reversed due to Non-Payment under Earlier Law Credit can be availed if payment done within 3 months of appointed day Migration of Credit from Existing Law – Transitional Provision
  • 21.
    Tax Deduction atSource @ 1% LIABILITY TO DEDUCT • A department or establishment of central or state government • Local authority • Governmental agencies • Such persons or categories of persons as may be notified on recommendations of the GST Council VALUE OF CONTRACT • Liability to deduct if value of contract exceeds Rs 2.5 Lakhs • Only Same State. • Paid by 10th of Next Month. • For the purpose of tax deduction, the value of supply shall be taken as amount excluding the tax amount in the invoice CREDIT OF TAX DEDUCTED • The deductee can claim credit of the tax deducted in his electronic cash ledger REFUND OF EXCESS TAX DEDUCTED • Refund of excess amount or erroneous deduction shall be dealt with in accordance of refund provisions • No refund shall be granted where the amount deducted has been credited to the electronic cash ledger of the deductee
  • 22.
    Payment of Taxes IGST CGST SGST IGST CGST SGST ELECTRONIC CASH REGISTER ELECTRONIC CREDIT REGISTER LIABILITYAS AVAILABLE IN ELECTRONIC LIABILITY REGISTER CAN BE DISCHARGED THROUGH • Tax • Interest • Penalty • Arrears • Fees or any other amount payable under the act CGST IGST SGST IGST LIABLITY TO BE DISCHARGED ON REVERSE CHARGE BASIS WILL BE DISCHARGED THROUGH CASH REGISTER UGST IGST UGST
  • 23.
    Filling of Returns INVOICEWISE DETAILS TO BE UPLOADED IN THE RETURNS UNDER GSTR-I. CANNOT FILE GSTR-1 FROM 11TH TO 15TH OF THE SUCEEDING MONTH. CONCEPT OF INVOICE MATCHING INTRODUCED IN THE RETURNS TAXABLE PERSON OUTWARD RECEIPIENT INWARD SUPPLIER GSTR 1 10TH OF SUCCEEDING MONTH GSTR 2 15TH OF SUCCEEDING MONTH AUTOPOPULATED UNDER PART A OF GSTR-2A ANY ALTER, REJECT, MODIFY, UNDER GSTR – 2 TO BE INTIMATED UNDER GSTR –1A MONTHLY RETURN IN GSTR 3 OF TAX BY 20TH OF SUCCEEDING MONTH ANNUAL RETURN IN GSTR 9 BY 31ST DECEMBER OF SUCCEEDING FINANCIAL YEAR Final Turnover of Input Autopopulated based on GSTR-2 Final Turnover of Output Autopopulated based on GSTR 1
  • 24.
    GSTR 1: Details ofOutward supplies Step 1 GSTR 2A: Auto- populated in part A of the GSTR-2A of recipients Step 2 GSTR 2: On the basis of above GSTR-2A, details of inward supplies added, corrected or deleted by recipient to be disclosed under GSTR-2, including RCM details Step 3 GSTR-1A : The details of inward supplies added, corrected or deleted by the recipient shall be made available to the supplier Step 4 10 11 15 16 Supplier will accept or reject the modifications Step 5 17 GSTR-1 will be amended to the extent modifications are accepted by supplier. Step 6 17 GSTR 3 Step 8 Part A of GSTR 3 Part A of GSTR 3 20 Make Payment Step 7 20 Part B of GSTR 3 GSTN – Return Compliances
  • 25.
    Filling of Returns…….continued OTHER FEATURES • Annual return to be submitted along with copy of audited annual accounts and a reconciliation statement, reconciling the values of supplies declared in the return furnished in the year • Filing of Nil return (Regular / Composition) also mandatory under GST • No Returns can be filed if previous period returns pending. • If GSTR-1 10th Deadline missed – Min. Penalty of Rs.500 • Late fee prescribed for late filing of returns • Furnishing Details/Monthly Returns – 100/day or 5000/- . • Annual Returns - 100/day or 0.25% of the Annual Turnover in that State. OTHER RETURNS FORM DUE DATE QUARTERLY RETURN FOR COMPOSITION LEVY GSTR -4 18TH MONTHLY RETURN FOR NON-RESIDENT FOREIGN TAXABLE PERSON GSTR -5 20TH ISD RETURN GSTR -6 13TH RETURN FOR PERSONS DEDUCTING TAX AT SOURCE GSTR -7 10TH
  • 26.
    RETURNS: GSTN PORTAL- LEDGER BALANCE
  • 27.
    RETURNS: GSTN PORTAL-- RECEIVER & SUPPLIER MISMATCH REPORT
  • 28.
    RETURNS: GSTN PORTAL--ALL TYPES OF RETURNS
  • 29.
    RETURNS: GSTN PORTAL-- DETAILS OF OUTWARD SUPPLIES TO BE FURNISHED Details of Outward Supplies Supplies made to Unreg. persons Inter State Supplies Intra State Supplies Supplies made to Reg. persons Invoice wise details of all Inter State & Intra State Supplies If Invoice value more than Rs.2.5 Lacs than invoice wise details Consolidated details of Supplies If Invoice value less than Rs.2.5 Lacs than state wise consolidated details of supplies
  • 30.
  • 31.
  • 32.
    Rule 7 ofITC – Apportionment of Credit on Inputs or Input Service Case Study 3:- Reversal of Credit when Registered Person using inputs partly for Non Business Purpose , partly for Exempt Supplies , partly for Taxable Supplies.  T = Total input tax on inputs of a tax period  T1 = Input tax on inputs exclusively used for non business purpose.  T2 = Input tax on inputs exclusively used for exempt supplies.  T3 = Input tax on inputs in eligible  T4 = ITC attributable excl. for Zero rate supplies & Taxable Supplies.  C1 = Amount credited to electronic ledger.  C2 = Common credit after attribution of ITC to taxable supplies(T4).  D1 = Common ITC attributable to exempt supplies.  E = Total exempt supplies of a tax period. (Prev. month if no data)  F = Total turnover of a tax period. (Prev. month if no data)  D2 = common ITC attributable to non business purpose supplies.  C3 = remainder common credit attributable to taxable and zero rated supplies.  C3 shall be computed separately for CGST, IGST, UGST, SGST.  Amt equal to d1 and d2 shall be added to output tax liability.  The ITC will be calculated finally for entire F.Y. as per the rule 7 before Sept of the succeeding year.  If difference between total amts calculated annually in respect of D1 & D2 exceeds the total of the amt determined for each tax period is excess, it shall be added to the output tax liability and such amt is to be paid with interest from April of succeeding year till date of payment.  In Vice versa situation the difference shall be claimed as credit not later than September of succeeding year. T=1000000 T1 = 25000, T2 = 345000, T3 = 67000 T4=472000 C1=T-(T1+T2+T3) = 1000000-(25000+345000+67000) = 563000 C2=C1–T4 = 563000 – 472000 = 91000 D1=(E÷F) X C2 = (7/10) x 91000 = 63700 D2=5% of C2 = 0.05 x 91000 = 4550 C3=C2-(D1+D2) = 91000-(63700+4550) = 22750
  • 33.
    GSTR-3 - DETAILSOF MONTHLY RETURN
  • 34.
  • 35.
    MATCHING, REVERSAL &RECLAIM OF ITC Inward Supply Furnished in GSTR 2. Excess ITC Claimed/ Supply Not Declared by supplier Mismatch Communicated to Supplier in GSTR-1A Not Rectified by Supplier Communicated under GSTN Mismatch Reports Added to OTL of Recipient & shall pay alongwith Interest Reduced from OTL of Recipient if Supplier declares details within time specified u/s 39(9) If declared by supplier than OTL shall be reduced & Interest shall be credited to electronic ledger of the Recipient Case Study 4 : If Taxable person claims excess ITC for the Month of April in their Return or the supply is not being declared by the Suppliers for the month of April. May’ 15 May’ 15 May’15-17 Rectified then Final and GSTR 1 stands Amended. May 20-31 Either Suppliers issues Debit note increases OTL for May Month Either Receiver shall reverse the Credit in May month with Interest. OTL June Any Rectification before Sept of Suceeding F.Y. or Annual Return.
  • 36.
    MATCHING, REVERSAL &RECLAIM OF ITC Case Study 5 : If the Recipient claims ITC equals to or less than the output tax paid by the supplier. MATCHED Rule 10 exp(2) Case Study 6 : If the Supplier reduces the output tax liability by issuing the Credit Notes for the Month of April. Credit note relating to outward supply furnished in GSTR-1 Reduction in OTL exceeds corresponding reduction in claim for ITC – 1A reflects Excess Credit Mismatch Communicated to Supplier & Recipient Not Rectified by Recipient Reduced from OTL of Supplier if Recipient declares details within time specified u/s 39(9) If declared by Recipient than OTL shall be reduced & Interest shall be credited to electronic ledger of the Supplier May’ 10 May’ 15-17 Rectified then Final and GSTR 1 stands Amended. May’ 20-31 Either Suppliers cancels credit note increases OTL for May Month Either Receiver shall reverse the Credit in May month with Interest. Added to OTL of Supplier & shall pay alongwith interest Any Rectification before Sept of Suceeding F.Y. or Annual Return. OTL June
  • 37.
    Refunds Refund of Tax& Interest • Application shall be filed before expiry of 2 years. • Special category persons shall file before expiry of 6 months. • Refund filed for tax, duty, cenvat credit or interest paid in earlier law shall be disposed of as per earlier law & if admissible shall be paid in Cash. (Transitional Provision) Procedure & Timings for Sanctioning Refunds • Provide documentary evidence as prescribed • If refund is < Rs.2 Lac, than he shall only file a declaration that incidence of tax has not been passed. • If refund Zero rated supplies of G/S is claimed, 90% of claim shall be refunded on provisional basis. • Officer shall issue order within 60 days of receipt of application • Interest not exceeding 6%shall be paid if not refunded within 60 days Refund of Unutilized ITC • For exempted exports including zero rated supplies • Rate of Tax on inputs is higher than on output supplies (Inverted Levy) • No Refund if Duty Drawback claimed.
  • 38.
    Audits & Records •Departmental Audit - Commissioner may by general or special order undertake audit of any taxable person which shall be conducted by tax authorities. • Special Audit – At any proceedings, any officer having regard to nature & complexity of the case with prior approval of Commissioner, may get the accounts audited by a Chartered Accountant or Cost Accountant nominated by the Commissioner & remuneration of such audit shall be paid by Commissioner. Types of Audit • Maintain books of accounts & other records for a period of 6 years from the due date of filing of Annual Return for the year pertaining to such accounts & records Records Turnover based Audit – Where turnover of a registered taxable person exceeds a 1 Crore (Return Rule 21(2)) in a financial year, he shall get his accounts audited by a Chartered Accountant or Cost Accountant & shall submit audited annual accounts, reconciliation statement & other documents as prescribed.
  • 39.
    Penalty & ProsecutionProvisions Tax has been paid or short paid or erroneously refunded or ITC wrongly availed Reasons other than fraud,etc (S.73) By reason of fraud,etc (S.74) Particulars U/s 73 U/s 74 Maximum Penalty 10% of tax OR Rs.10,000 WEH 100% of tax Period covered 3 yrs. 5 yrs. Paid before SCN - 15% of tax After SCN but within 30 days - 25% of tax After Order issued but within 30 days 10% of tax OR Rs.10,000 WEH 50% of tax Amount of Evasion Imprisonment > Rs. 5 Cr Upto 5 yrs. with Fine Rs. 2 Cr - 5 Cr Upto 3 yrs. with Fine Rs. 1 Cr - 2 Cr Upto 1 yr. with Fine TYPES OF OFFENSES 1. Supplies G/S without issue of any invoice 2. Issue of invoice without supply of G/S 3. Collects tax but fails to pay to the credit of Govt. 4. Takes/utilizes ITC point # 2 above. 5. Collects tax in contravention of provisions but fails to pay to the credit of Govt. 6. Evades tax, wrongly avails ITC or refund 7. Falsifies financial records 8. Prevents officer in discharge of his duties 9. Tampers or destroys any evidence 10. Engages in services which are in contravention 11. Engages in goods liable for confiscation 12. Fails to supply information under this Act 13. Attempts to commit any of the above > Rs.5Cr. Cognizable & Non- Bailable. Imprisonment upto 6 month with/or Fine.
  • 40.
    Dr. Ram Singh M.Com,MBA, PhD Sr. Assistant Professor School of Business & Management Quantum University Roorkee Email: ramsingh.qsb@quantumeducation.in Contact: 9451240299
  • 41.