GSTN provides a shared IT infrastructure and services to central and state governments, taxpayers, and other stakeholders to implement the Goods and Services Tax in India. It provides common registration, return filing, and payment services to taxpayers. GSTN also partners with other agencies to create an efficient GST ecosystem and encourages third party GST Suvidha Providers to develop applications to simplify services for stakeholders. Additionally, GSTN conducts research, training, and provides backend services to tax authorities on request to improve tax compliance and administration transparency.

1. GST

2. Scope of Supply
• “Goods and Services Tax” means “any tax on
supply of goods or services or both except tax on
supply of alcoholic liquor for human consumption
[Article 366 (12A) of the Constitutional
(101st Amendment) Act, 2016]”. It includes
• all forms of supply of goods and/or services such
as sale, transfer, barter, exchange, license,
rental, lease or disposal
• import of services

3. Composite and Mixed Supply
• A composite supply means supply made by taxable
person to a recipient comprising two or more supplies,
of goods or services or any combination thereof ,which
are naturally bundled and supplied in conjunction with
each other in the ordinary course of business.
• Example: Where goods are packed and transported
with insurance, the supply of goods, packing materials,
transport and insurance is a composite supply and
supply of goods is the principal supply.
• The entire supply will be treated as supply of principal
and the rate of tax of principal will apply for other
items.

4. • A mixed supply comprising two or more supplies
shall be treated as supply of that particular
supply which attracts the highest rate of
tax. (Supplies not naturally bundled).
• Example: A luxury Hotel in Delhi provides a 3
Nights package with the breakfast and one day
Delhi sightseeing.
The inclusion of Delhi sightseeing in this package
is not a natural requisite to accommodation in
the hotel. Hence, this does not amount to
composite supply. This is a mixed supply

5. Reverse Charge Mechanism on Goods
and Services under GST
• Reverse Charge means the liability to pay tax
is on the recipient of supply of goods or
services instead of the supplier of such goods
or services in respect of notified categories of
supply.
• Generally if sales are made to an unregistered
buyer then GST would be payable by the
supplier instead of the buyer

6. Levy and collection of GST
• A tax called the central goods and services tax
on all intra-State supplies of goods or services
or both, except on the supply of alcoholic
liquor for human consumption, on which it is
20%
• 4 slabs of 5%, 12%, 18% and 28% apart from
the nil rate is rates applicable under GST

7. Time and Value of Supply
• 1. Time of Supply
• Time of supply means the point in time when
goods/services are considered supplied’. When the
seller knows the ‘time’, it helps him identify due date
for payment of taxes.
• CGST/SGST or IGST must be paid at the time of supply.
Goods and services have a separate basis to identify
their time of supply.
• Time of supply of goods is earliest of:
• 1. Date of issue of invoice
• 2. Date of receipt of advance/ payment*.

8. • Time of supply of services is earliest of:
• 1. Date of issue of invoice
• 2. Date of receipt of advance/ payment.

9. Value of Supply of Goods or Services
• Value of supply means the money that a seller would want
to collect the goods and services supplied.
• The amount collected by the seller from the buyer is
the value of supply.
• But where parties are related and a reasonable value may
not be charged, or transaction may take place as a barter or
exchange; the GST law prescribes that the value on which
GST is charged must be its ‘transactional value’.
This is the value at which unrelated parties would transact
in the normal course of business. It makes sure GST is
charged and collected properly, even though the full value
may not have been paid.

10. Composition Levy
• Composition scheme under the law is for small
businesses. This is to bring relief to small
businesses so that they need not be burdened
with the compliance provisions under the law.
Thus, an option has been provided where they
can opt to pay a fixed percentage of turnover as
fees in lieu of tax and be relieved from the
detailed compliance of the provisions of law.
• Aggregate turnover of registered person in the
preceding Financial Year should not exceed Rs.50
Lakh.

11. Input Tax Credit
• Input credit means at the time of paying tax
on output, you can reduce the tax you have
already paid on inputs.
• Say, you are a manufacturer –
• tax payable on output (FINAL PRODUCT) is Rs
450
• tax paid on input (PURCHASES) is Rs 300
• You can claim INPUT CREDIT of Rs 300 and you
only need to deposit Rs 150 in taxes.

12. How to claim input credit under GST?
• You must have a tax invoice(of purchase) or
debit note issued by registered dealer
• You should have received the goods/services
• The tax charged on your purchases has
been deposited/paid to the government by the
supplier in cash or via claiming input credit
• Supplier has filed GST returns
Therefore, to allow you to claim input credit on
Purchases all your suppliers must be GST
compliant as well.

13. Example of ITC
• Suppose there is a seller Mr A and he sells his goods to Mr B. Here
Mr B i.e the buyer will be eligible to claim the credit on purchases
based on the invoices. Let’s understand how:
• Step 1: Mr A will upload the details of all tax invoices issued in GSTR
1.
• Step 2. The details with respect to sales to Mr B will auto populate/
get reflected in GSTR 2A, the same data will be pulled when Mr B
will file GSTR 2 (i.e details of inward supply).
• Step 3: Mr B will then accept the details that the purchase has been
made and reported by the seller correctly and subsequently the tax
on purchases will be credited to ‘Electronic Credit Ledger’ of Mr B
and he can adjust it against future output tax liability and get the
refund.

14. Registration
• The structure of GST stands on the foundation
of the registration system, for it is a registered
person who is liable to pay tax and who is
eligible to avail the benefits of the input tax
credit mechanism. A registered person can
also collect GST from his recipients. An
unregistered person is not taxed and is also
kept outside the input tax credit mechanism.

15. Debit and Credit Note
• When goods supplied are returned or when there
is a revision in the invoice value due to goods (or
services) not being up to the mark or extra goods
being issued a Debit Note or Credit Note is issued
by the supplier and receiver of goods and
services. A debit note or a Credit Note can be
issued in 2 situations-
• When the amount payable by buyer to seller
decreases
• When the amount payable by buyer to seller
increases

16. Account/Records Information Required By Whom?
Register of Goods
Produced
Account should contain detail of goods manufactured in
a factory or production house
Every assessee carrying out
manufacturing activity
Purchase Register All the purchases made within a tax period for
manufacturing of goods or provision of services
All Assessee
Sales Register Account of all the sales made within a tax period must be
maintained
All Assessee
Stock Register This register should contain a correct stock of inventory
available at any given point of time
All Assessee
Input Tax Credit
Availed
This register should maintain the details of Input Tax
Credit availed for a given tax period
All Assessee
Output Tax
Liability
This register should maintain the details of GST liability
outstanding to be adjusted against input credit or paid
out directly
All Assessee
Output Tax Paid This register should maintain the details of GST paid for a
particular tax period
All Assessee
Other Records
Specified
Government can further specify by way of a notification,
additional records and accounts to be maintained
Specific Businesses as notified
by the governmen

17. Return Form Particulars Frequency Due Date
GSTR-1 Details of outward supplies of
taxable goods and/or services
effected
Monthly 10th of the next
month
GSTR-2 Details of inward supplies of taxable
goods and/or services effected
claiming input tax credit.
Monthly 15th of the next
month
GSTR-3 Monthly return on the basis of
finalization of details of outward
supplies and inward supplies along
with the payment of amount of tax.
Monthly 20th of the next
month
GSTR-3B Simple return for Jul 2017- Mar
2018
Monthly 20th of the next
month
GSTR-9 Annual Return Annually 31st December of
next financial year

18. JOB WORK IN GST
• Job work means processing or working on raw materials or semi-
finished goods supplied by the principal manufacturer to the job
worker. This is to complete a part or whole of the process which
results in the manufacture or finishing of an article or any other
essential operation.
• For example, big shoe manufacturers (principals) send out the half-
made shoes (upper part) to smaller manufacturers (job workers) to
fit in the soles. The job workers send back the shoes to the principal
manufacturer.
• As per GST Act, job work means any treatment or process
undertaken by a person on goods belonging to another registered
person. The person doing the job work is called job worker.
• Note: Value of goods sent by the principal will not be included in
the aggregate turnover of the registered job worker

19. Job Work on GST Rate
Agriculture, forestry, fishing, animal
husbandry
0%
Intermediary services related to
cultivation and animal rearing
0%
a) Printing of newspapers
(b) Textile and textile products
(c) Jewellery
(d) Printing of books (including Braille
books), journals and periodicals
(e) Processing of hides, skins and leather
5%

20. GSTN(Network)
• Provide common and shared IT infrastructure and services to the Central
and State Governments, Tax Payers and other stakeholders for
implementation of the Goods & Services Tax (GST).
• Provide common Registration, Return and Payment services to the Tax
payers.
• Partner with other agencies for creating an efficient and user-friendly GST
Eco-system.
• Encourage and collaborate with GST Suvidha Providers (GSPs) to roll out
GST Applications for providing simplified services to the stakeholders.
• Carry out research, study best practises and provide Training and
Consultancy to the Tax authorities and other stakeholders.
• Provide efficient Backend Services to the Tax Departments of the Central
and State Governments on request.
• Assist Tax authorities in improving Tax compliance and transparency of Tax
Administration system.