Gst manthon

Let us understand the GST
GST - Manthan
11th September 2020
CA RAMANDEEP SINGH BHATIA

Content for Discussion :
1. Registration
2. Reverse charge mechanism (RCM)
3. Sale of Fixed Assets –Used Business Assets
4. Input Tax Credit
5. GST Returns & Audits
6. GST TDS & TCS
7. Interest
8. E-way Bill
9. GST Refunds
10.Notice & Investigation

REGISTRATION
REGISTRATION

REGISTRATION
Regular Registration
 Exclusively Goods – Aggregate Turnover –upto Rs. 40
Lakhs –Interest allowed
 In Case of Services - Aggregate Turnover –upto Rs. 20
Lakhs.
 All other sources income – Interest Income, Sale of fixed
assets, Rental income etc to be included for Aggregate
Turnover. AAR confirmed that.
 Registration obtained –even from Rs.1 –levy of tax will be
applicable.

REGISTRATION
Composition Registration
Goods Case
 Suitable for small/medium size –B2C business
 TO limit – upto 150 Lakhs –Exclusive Goods – Interest not counted.
 Service allowed upto 10% of TO of preceding year or Rs.5.00 Lakh WEH.
 Fixed rate of tax -1% - Manufacturer or Traders
Service Case
 Restaurant – TO –Upto 150Lakh –Fixed 5%
 Other Service –TO –Upto 50 Lakh – Fixed 6%
 Restrictions – Interstate Supply not allowed, Service, no supply through E-commerce
operator, No ITC , No GST can be charged
 Invoice is different; return filling will be different etc.

REVERSE CHARGE MECHANISM (RCM)

 What is RCM? Why government implemented?
 General Goods which are covered Raw cotton, Cashew, Bidi
Wrappers Silk Yarn, Lottery, used seized vehicle, scrap –
government etc.
 General Service which are covered – Goods transport, Advocate
Service, services from Government more than Rs.5K like Licence
fees , Security services , Sponsorship services etc.
 In Real estate business – 5% or 1% rate subject to RCM -80% of
Purchases from Registered supplier or else –RCM payment.
 What if not paid? – Interest & Denial of ITC benefit.

Sale of Fixed Assets –Used Business Assets

 GST Law it is taxable –was not in earlier law i.e. VAT.
 Sale of PM , Motor vehicles , Scrap –all taxable
 Notification no.8/2018 –Motor vehicle - WDV Value
– 28%-18%, 18% -12%, No cess – Valuation
difference between SP – WDV.
 Margin Scheme –Used Goods Traders.

INPUT TAX CREDIT (ITC)
Input Tax Credit(ITC)

Importance of Tax Invoice
 he is in possession of a tax invoice or debit note issued by a
supplier registered under this Act, or such other tax paying
documents as may be prescribed;
 Content – Your GST Number correctly mentioned –
Goods/Services
 Taxable value & Tax, Invoices dated , Invoice serial number ,
Suppliers –GST Number etc.

Conditions for claiming ITC -16(2)
 Tax Invoice Possession
 He has received the goods or services or both – Example bill
trading –Illegal , How government track this, Eway Bill, actual
transportation etc. Example of AMC Services etc.
 Fake Bill rackets
 The tax charged in respect of such supply has been actually
paid to the Government.
 GSTR-1 filed must &- GSTR-3B also to ensure that Tax has been
paid. He has furnished the return.

What is GSTR-2A –Rule 36(4) – GSTR 2B
 GSTR-1 filed by the suppliers becomes GSTR 2A.
 Dynamic document.
 Maximum -10% extra than 2B.
 GSTR-2B – 12th Lock – Imports / Goods & Services –Auto
populate figure

Month
Supplier
Uploaded in
GSTR-1
GSTR-2A GSTR-2B ITC When
July 2020 Upto 11 August
2020 Time 23:59:59
July 2020 July 2020 July 2020
July 2020 15th August 2020 July 2020 August 2020 August 2020
July 2020 Upto 11th October
2020 Time
23:59:59
September 20 September 20 September 20
July 2020 15th October 2020 September 20 October 20 October 20

How to check the credibility of Your Suppliers?
22AAQFG6361E1ZG
 Check the following – GSTN Portal or Apps also
available
 Constitution , Number active or cancelled , GSTR 3B /
R-1 Filled
 Quarterly filer or monthly filer
 Goods & Services in which the client usually deal .
https://services.gst.gov.in/services/searchtp

How to ensure reflection in GSTR-2A.
 Purchase Order / Term n
Condition
 Payment blockage-Deduction &
Recovery.

Caution on fake bills –Rule 86(A)
 Conditions of use of amount available in electronic
credit ledger- Block
 Assistant Commissioner, reasons to believe
 Tax invoice issued by non-existent or not to be
conducting any business
 Tax charged in respect of which has not been paid to
the Government
 Person availing the credit of input tax has been found
non-existent or not to be conducting any business
 Not in possession of a tax invoice or debit note or any
other document prescribed under rule 36,

Block Credit -17(5)
 Vehicle used for transportation of Person – upto 13
Person, R&M , Insurance.
 Food & Beverages , Catering , beauty treatment, health
services, cosmetic and plastic surgery, leasing, renting or
hiring of motor vehicles, life insurance and health
insurance
 Membership of a club, health and fitness centre;
 works contract services, goods or services or both
received by a taxable person for construction of an
immovable property
 Personal consumption
 Goods lost, stolen, destroyed, written off or disposed of
by way of gift or free samples;

Reversal 42 /43
 Common Input credit Reversal - Rice
Mill , Hotel & Restaurant
 Exempt Turnover /Aggregate Turnover
–X Common ITC
 In case of Capital Goods – 60 Months

Notice & Investigation

DIN Number? Its relevance.
 Even in case of Search or Survey – DIN has
to be checked.
Notice authorised by Proper Officer
Service of Notice – Valid – Email
Dual authority – CGST /SGST – Only one
exception if there is any intelligence team
action against you.

GST RETURNS & AUDITS
GST Returns & Audits

GST RETURNS & AUDITS
Forms Due Date & Conditions Details Asked.
GSTR-3B Monthly -20th /22nd Summary of outward and Inward tax and
payment
GSTR-1 Monthly 10th or
Quarterly -30th / 31ST for TO up to Rs. 1.50 Cr Statement of invoice level transaction of
outward supply
GSTR-9 Annual Return – Mandatory for all.
For FY 2018-19 –Relief for TO less than Rs 2.00
Crore
Summary of the complete year transaction –
outward and inward.
GSTR-9C GST Audit – TO > Rs.2.00 Crore compulsory
2018-19 Relief – TO less than Rs.5.00 crore.
GST Audit – Reconciliation of liabilities and
input tax credit with Books of accounts.

E-way Bill
E-way Bill

E-way Bill
 Goods movement –more than 50,000/-
 From One district to another District , Inter district allowed
 Only 15 type of Goods –covers majority of the commercial goods
 E-way Bill portal –Blocking -2 consecutive returns or registration
is cancelled /inactive,
 Caught without –E-way Bill -Sec.129 – Owner – 100% of tax
+100% Penalty – 200% - Transporter – 50% value of the Goods –
Less tax paid.
 Validity is also fixed –E-way bill
 Confiscation -130 – Sells –after 30 days.

GST TDS & TCS
GST TDS & TCS

GST TDS & TCS
TDS – 2% (1% each act)
 (a) an authority or a board or any other body,
-
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,
with fifty-one per cent. or more participation by way of
equity or control, to carry out any function;
(b) Society established by the Central Government or
the State Government or a Local Authority under
the Societies Registration Act, 1860 (21 of 1860);
(c) Public sector undertakings (PSU)
 Cash Ledger – Accept .

GST TDS & TCS
TCS – 1% (0.5% each act)
 Every electronic commerce operator, not being an
agent, shall collect an amount calculated at a rate
of half per cent. of the net value of intra-State
taxable supplies made through it by other
suppliers where the consideration with respect to
such supplies is to be collected by the said
operator.
 Cash Ledger – Accept.

GST Refunds
GST Refunds

GST Refunds
 Exports – Can claim refunds – Two
approach –LUT on Payment
 - Supply to SEZ –Can claim refunds
 Inverted duty structure – Input higher
–Output Lower
 Excess Paid Tax – Refund – Unjust
enrichment
 Excess challan paid etc.
 2 Years –relevant date

INTEREST
Interest

INTEREST
 Gross V.s Net Issue – Prospective amendments
 Amendment does not cover –returns filed after
notice -73/74
 Rate -18 % on Outward supply & 24% on excess
claim (not utilisation) of the ITC.

33
Disclaimer: The views and opinions expressed in this article are those of the compiler and do not necessarily reflect the official policy or position of any
agency/department of the government. The same should not be considered as legal advice in no case. All possible efforts are made to make the compilation error free
and incase if there is any left , we regret for the same and request to point out the same at our mail id.
Let us understand the GST GSTIND GLOBAL SOLUTIONS LLP , RAIPURCA RAMANDEEP SINGH BHATIA
Head Office:
GSTIND GLOBAL SOLUTIONS LLP ,
C-9 to 12, First Floor , Ekatma Parisar , Rajbandha Maiden , Raipur Chhattisgarh -492001
Contact : gstindglobal@gmail.com www.gstingglobal.com
Branches at Nagpur, Bhopal.

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