An attempt to GST concept

1. GST Procedures and Rules
-Shahin Shabnam
-STA, NIELIT Dibrugarh EC

2. INTRODUCTION
• Goods and Services Tax (GST) amalgamates a large
number of Central and State taxes into a single tax.
• It would mitigate cascading or double taxation in a
major way.
• The biggest advantage would be in terms of a
reduction in the overall tax burden on goods, which
is currently estimated to be around 25%-30%.
• Because of its transparent and self-policing character,
would be easier to administer.

3. 122nd Amendment
• The Constitution (122nd Amendment) Bill was
introduced in the 16th Lok Sabha on
19.12.2014 for a levy of GST on supply of all
goods or services except for Alcohol for
human consumption. The tax shall be levied
as Dual GST separately but concurrently by the
Union (central tax - CGST) and the States
(including Union Territories with legislatures)
(State tax - SGST) / Union territories without
legislatures (Union territory tax- UTGST).

4. Goods and Services Tax Council (GSTC)
• A Goods and Services Tax Council (GSTC) shall
be constituted comprising the Union Finance
Minister, the Minister of State (Revenue) and
the State Finance Ministers to recommend on
the GST rate, exemption and thresholds, taxes
to be subsumed and other features.

5. Goods and Services Tax
Network(GSTN)
• GSTN has been set up by the Government as a private
company
• GSTN would provide three front end services to the
taxpayers namely-Registration, Payment and Return.
• Developing back-end IT modules for 27 States who
have opted for the same.
• GSTN has selected 34 IT, ITeS and financial technology
companies, to be called GST Suvidha Providers (GSPs).
• GSPs would develop applications to be used by
taxpayers for interacting with the GSTN.

6. Replaced Central taxes by GST:
a) Central Excise Duty;
b) Duties of Excise (Medicinal and Toilet Preparations);
c) Additional Duties of Excise (Goods of Special Importance);
d) Additional Duties of Excise (Textiles and Textile Products);
e) Additional Duties of Customs (commonly known as CVD);
f) Special Additional Duty of Customs (SAD);
g) Service Tax;
h) Cesses and surcharges insofar as they relate to supply of
goods or services.

7. Replaced State taxes by GST:
a) State VAT;
b) Central Sales Tax;
c) Purchase Tax;
d) Luxury Tax;
e) Entry Tax (All forms);
f) Entertainment Tax (except those levied by the local
bodies);
g) Taxes on advertisements;
h) Taxes on lotteries, betting and gambling;
i) State cesses and surcharges in so far as they relate to
supply of goods or services.

8. Commodities proposed to be kept
outside of GST
• Alcohol for human consumption
• Petroleum crude
• Motor spirit (petrol),
• High speed diesel,
• Natural gas and
• Aviation turbine fuel
• Electricity

9. Salient features
• GST would be applicable on “supply” of goods or services as against
the present concept of tax on the manufacture of goods or on sale
of goods or on provision of services.
• GST would be based on the principle of destination based
consumption taxation as against the present principle of origin
based taxation.
• An Integrated GST (IGST) would be levied on inter-State supply
(including stock transfers) of goods or services. This would be
collected by the Centre so that the credit chain is not disrupted.
• Import of goods and services would be treated as inter-State
supplies and would be subject to IGST in addition to the applicable
customs duties.
• Exports would be zero-rated.

10. Features contd….
• Electronic filing of returns by different class of
persons at different cutoff dates.
• Various modes of payment of tax available to the
taxpayer including internet banking, debit/ credit
card and National Electronic Funds Transfer
(NEFT) / Real Time Gross Settlement (RTGS).
• Elaborate transitional provisions have been
provided for smooth transition of existing
taxpayers to GST regime.

11. Registration
• Obtaining a 15 digit GST registration number-
GSTIN
• PAN-based.
• For TDS deductors not having PAN, TAN-based
registration is possible.
• State-specific

12. Structure of GSTIN

13. Why to Register?
• Legally recognized
• Avail benefits of tax credits
• Proper accounting

14. Whom to Register?
• Any/all types of entities carrying out supply of-
• Goods
• Services
• Both Goods & Service
• GST Practitioners must also enroll
• Supplies > INR 20L (10L for some states)
• Suppliers making inter-state supply
• Casual taxable persons
• UN Bodies
• Embassies
• Anyone liable for reverse charge
• Non-resident Taxable Persons
• Tax Deductors / Tax Collectors under GST
• Input Service Distributors (ISD)
• E-Commerce Operators
• Agents for registered principal

15. Where to Register?
• www.gst.gov.in
• Temporary Reference Number (TRN) is generated.
• The taxpayer can access the saved application on
the GST portal at anytime using the TRN up to 15
days post generation of TRN until final
submission.
• The TRN helps maintain data for Casual taxpayer
(Advance Tax Payment)
• All applications saved by taxpayer appear in
descending chronological order.

16. Registration steps…

22. Goods and Services be classified
• HSN (Harmonised System of Nomenclature)
code shall be used for classifying the goods
under the GST regime. Taxpayers whose
turnover is above Rs. 1.5 crores but below Rs.
5 crores shall use 2-digit code and the
taxpayers whose turnover is Rs. 5 crores and
above shall use 4-digit code. Taxpayers whose
turnover is below Rs. 1.5 crores are not
required to mention HSN Code in their
invoices.

25. • Upon successful submission of the
Registration Application, the Primary
Authorised Signatory will be sent an
Application Reference Number via email &
SMS.
• This ARN is used as a unique identification
feature for your transaction and is closed only
when the transaction is complete.

26. Returns
Monthly
• GSTR 1 Statement of Outward
Supplies
• GSTR 2 Statement of Inward
Supplies
• GSTR 3 Monthly GST Return
• GSTR 5 Non-resident taxable
persons
• GSTR 6 Input Service Distributor
(ISD) Return
• GSTR 7 Tax Deduction at Source
(TDS) return
• GSTR 8 Tax Collection at Source
(TCS) Return
• GSTR 11 Inward Supplies for
Government Bodies
Quarterly
• GSTR 4 Compounding taxpayer
Annual
• GSTR 9 Annual GST Return
• GSTR 9A Reconciliation
Statement
• GSTR 9B Annual return for
Compounding Taxpayer
Unscheduled
• GSTR 10 Final return after
cancellation, within three month
of cancellation

28. Returns Flow

29. GSTR1
• In the GSTR 1, invoices are uploaded by the Supplier
Taxpayer.
• E-commerce sales transactions are captured explicitly
in GSTR 1.
• B2B & B2C transactions are captured separately in
GSTR 1.
• Invoices for IGST, CGST/SGST will be issued separately
(in other words, one invoice can’t have IGST as well as
SGST/CGST).
• An invoice can’t have two different places of supply.
POS should be a mandatory field in the inter-state
invoice.

37. GSTR 2A: Draft of GSTR 2
• GSTR 2A contains an auto populated list of all invoices
received from all Suppliers Taxpayers’ corresponding
returns for the given tax period.
• GSTR 2A is a read-only document & will be available for
view even after the tax period is over.
• Receiver Taxpayer can Add any missing invoices in the
GSTR 2.
• Receiver Taxpayer shall also accept, reject, & modify
invoices received through filing of suppliers’ GSTR 1.
• After executing all the necessary actions, receiver
taxpayer can file the GSTR 2.

42. GSTR 1A: Addendum to GSTR 1
• In the event of any amendment to an invoice or
addition (in GSTR 2 of Receiver Taxpayer), the
amended/added invoice(s) will auto populate the
GSTR 1A of the Supplier Taxpayer.
• The Supplier Taxpayer can Accept or Reject the
amended invoice.
• On submitting, the Acknowledgement Reference
Number (ARN) will be Generated.
NB:- GSTR 3 relating to earlier periods should be
filed before returning current GSTR1 & GSTR2.

43. Where can I file my GST Returns?
• GST Portal www.gst.gov.in
• GSP - GST Suvidha Provider
• GST Offline Utility Software

45. Payments
• A taxpayer can make Online, NEFT/ RTGS or
Over The Counter (OTC) payments for GST.
Once the payments are made by the taxpayer,
the receipts are credited to the Electronic Cash
Ledger.
• The balance in the Electronic Cash Ledger can
be utilized by the taxpayer to make payments
for IGST, CGST, SGST and Cess liabilities.

46. Electronic Cash Ledger
• Electronic Cash Ledger is an e-Wallet for all your
financial transactions with the GST.
• Electronic Cash Ledger captures all the details of
amounts deposited to the exchequer & utilization
of such amounts for the payment of tax liability,
demand on account of mismatch, interest,
penalties, fees etc.
• The Electronic Credit Ledger is created by default
when a taxpayer successfully registers under the
GST regime except for those taxpayers who opt
for composition scheme or registered for TDS/TCS

48. Final View of the Portal

49. Tax Liability Register
• The Tax Liability Register will capture all the
liabilities of the Taxpayer.
• The liabilities will be auto populated through
Returns for taxpayers or by tax officials for other
liabilities from assessment or enforcement.
• Tax Liability Register is not applicable for
Government Department and UN Bodies having
Government ID/Unique ID but no GSTIN.

50. Challans
• A GST challan can be defined as the specific format
used for making payments under the GST regime, e.g.,
depositing goods & services tax, interest on overdue
tax, penalties, & others.
• Single challan for SGST, CGST, &IGST payments
(including cess).
• Challan for making GST Payments are generated
online and are available for 7 days.
• Once a challan is generated, it is valid for 15 days.
• We can track Payment Status after successful payment
completion.

53. Important: Information Security Tips
• Do not disclose any confidential account information like
username, password, secret question/answer to anyone
through a written note, phone, email or any other mode
• Create strong passwords which are at least 8-15 characters
in length and use letters, numbers, special characters, both
upper & lower cases
• Avoid saving your passwords in the system, especially on
shared systems to avoid misuse of your account
• Beware of social engineering attempts, no government
official will ever ask you for your account credentials or
OTP details
• Be extremely cautious of emails asking you to click
unknown URLs/suspicious links/attached files (especially
.exe extensions)

54. Benefits of GST
• Will help to create a unified common national market for India,
giving a boost to Foreign investment and “Make in India” campaign;
• Harmonization of laws, procedures and rates of tax;
• Improve the overall investment climate in the country which will
naturally benefit the development in the states;
• Reduction in compliance costs - No multiple record keeping for a
variety of taxes - so lesser investment of resources and manpower
in maintaining records;
• Timelines to be provided for important activities like obtaining
registration, refunds, etc;
• Final price of goods is expected to be lower due to seamless flow of
input tax credit between the manufacturer, retailer and service
supplier;

55. THANK YOU