4. Customs duties – Set off
Comprise of
Basic Customs Duty (‘BCD’);
Duty equivalent to Excise (‘AED’); and
Special Additional Duty equivalent to VAT (‘SAD’)
Cenvat credit granted to Manufacturer of excisable goods
for AED and SAD paid on “inputs” and “capital goods”
Cenvat credit granted to provider of taxable services for
AED paid on “inputs” and “capital goods”
Taxes paid to Central set off with taxes payable to Central
5. Excise duty (‘ED’) – Set off
Presently basic rate – no education cess
Cenvat credit granted to Manufacturer of excisable goods
for ED paid on “inputs” and “capital goods”
Cenvat credit granted to provider of taxable services for
ED paid on “inputs” and “capital goods”
Taxes paid to Central set off with taxes payable to Central
6. Value Added Tax (‘VAT’)
Each state has its own VAT – APVAT, MVAT etc.
Input Tax Credit (‘ITC’) granted to Manufacturer of
taxable goods for Local VAT paid on goods including
capital goods
ITC granted to trader of goods for local VAT paid on
purchase of goods
Taxes paid to a State Govt. set off with taxes payable to a
State (liability for VAT and CST)
Reversal of ITC on Stock transfer etc.
7. Central Sales Tax
Central Act – administered and collected by each State
etc.
No Input Tax Credit (‘ITC’) of CST to Manufacturer /
Trader
CST paid in one state can not be adjusted with CST
CST paid to “origin” state “State Govt.” can not be set off
with any other taxes (CST or VAT)
8. Service Tax (‘ST’)
Basic rate - no education cess
SBC :15th Nov’2015 – Not set off
KKC : 1st June’ 2016 – Set off only to service provider
Cenvat credit granted to Manufacturer of
excisable goods for ST paid on “input services”
Cenvat credit granted to provider of taxable
services for ST paid on “input services”
Taxes paid to Central set off with taxes payable to Central
9. Input Tax Credit - GST
Capital goods – Goods the value of which is capitalized in the books of
accounts of the person claiming the credit and which are used in the
course of furtherance of business
Input – any goods other than capital goods used in the course of
furtherance of business
Input service means any service used in the course of
furtherance of business
Input Service Distributor
Distribution of GST paid on input services to other offices
Input tax – CGST, SGST and IGST paid on any goods or services
including import of goods
10. Input Tax Credit - GST
Eligible Input tax credit as per GST Act
CGST / SGST / IGST / UGST charged on any supply of goods and
services and includes:
IGST paid on import of goods
CGST / IGST / SGST / UGST paid under Reverse charge on goods
and services
CGST / IGST /SGST / UGST paid under Reverse charge on supply of
goods and services from unregistered person
11. Input Tax Credit - GST
Input tax credit as self assessed in the return of a registered
person to be credited to his Electronic Credit Ledger
Conditions for availing Input Tax credit
Possession of tax invoice / Debit note issued by Regd. supplier
Receipt of goods / services
Tax is paid by the supplier
Return is filed by the recipient of goods / services
Amount towards supply of goods and services and tax thereon to be
paid to supplier within 180 days from the date of invoice
Not eligible if depreciation on tax claimed under Income tax
Credit to be availed before the due date of filing return for September
following the end of financial year or filing of annual return
12. Input Tax Credit - GST
Input tax credit admissible only if engaged in taxable supplies
Restriction on pipelines and telecommunication tower fixed to
earth (to be availed over a period of time)
Proportionate input tax credit if engaged in exempt supply
FI/NBFC engaged in accepting deposits, extending loans /
advances - Eligible to avail only 50% of total input credit for
the month
13. Input Tax Credit - GST
Input tax credit not eligible on following:-
Motor vehicles and conveyances (only in specified cases eligible)
Food and beverages, outdoor catering
Beauty treatment, health services, cosmetic and plastic surgery
Membership of club, health and fitness centre etc.
Rent a cab, life insurance, health insurance
v Eligible if obligatory for an employer under any law for the time
being in force
Travel benefits extended to employees on vacation such as leave
Works contract services for construction of immovable property
v Other than plant and machinery
Goods / services used for construction of immovable property
Other than plant & machinery
14. Input Tax Credit - GST
Input tax credit not eligible on following:-
Taxes paid under composition scheme
Goods or services used for personal consumption
Goods lost, stolen, destroyed, written off or disposed
by way of gift or free samples
Credit not eligible after the expiry of one year from the
date of issue of tax invoice
15. GST - Issues impacting Set off
GSTN – Separate registration for each State
Multiple registration within same state permissible
Registration compulsory for continuing Credit chain
16. GST payable on “supply”
CGST – Intra – State supply of “goods” / “services”
SGST (State ‘A’) – Intra – State supply of “goods” / “services”
IGST – Import of “goods” and “services”
IGST – Inter – State supply of “goods” / “services”
17. Payment of GST
CGST to be utilized in the following order:-
First utilize towards payment of CGST
Second utilize towards payment of IGST
Not to be utilized towards payment of SGST
SGST (State A) to be utilized in the following order:-
First utilize towards payment of SGST (State A)
Second utilize towards payment of IGST
Not to be utilized towards payment of CGST
Settlement by Central Govt. of IGST utilized towards
SGST
18. Payment of IGST
IGST to be utilized in the following order:-
First utilize towards payment of IGST
Second utilize towards payment of CGST
Third utilize towards payment of SGST
19. Are you liable to Register under GST
GST – “Supply” of goods and / or services
Are you supplier of goods / services
Books of accounts
Bank Accounts
Audited financial statement
Income Tax return
Form 26AS
Excise / VAT / Service tax / Other Returns
Ask your Auditor
20. Are you liable to Register under GST
Supply of Goods / Services – Excluded / Exempt
Goods / Services outside the ambit of GST
Excluded / fully Exempted under GST
Below Threshold limit under GST
Recipient liable under Reverse Charge
Any other – as the case may be
21. They all are “Supplier” under GST
Manufacturer
Trader
Registered Import dealer
First Stage Dealer
Second Stage Dealer
Wholesaler, Stockiest, Retailer
Documents of title – High Seas / SICOI
Commission Agent
Developer / Builder, Contractor
Exporter / Deemed Exporter
Service provider / Job worker
22. Pre-requisite for Registration under GST
Permanent Account Number - “PAN”
Particular State - Place of business
From where goods / services are supplied
Warehouse, godown, other storage place
Place where books of accounts are maintained
Place of business of Agent
Branch office, Front office, Call centre etc.
Classification of Goods / Services
Authorised Signatory
Email / Mobile number
New or Migration from existing Registration
23. How many Registrations under GST
Permanent Account Number - “PAN”
Separate Registration for each State
Single Registration within one State
Option to register each “Business vertical” separately
Outward supply of goods / Services – Compulsory
Fixed Establishment / Place of supply for others
– Capable of Supply or to receive and use services
Input Service Distributor
Dual GST
No concept of centralized registration for
Services
24. Registration Number - GST
Structure of registration number
Each taxpayer will be allotted a State wise PAN-based 15-
digit Goods and Services Taxpayer Identification Number
(GSTIN)
Various digits in GSTIN will denote the following:
State Code 1 2
PAN 3 4 5 6 7 8 9 10 11 12
Entity Code 13
BLANK 14
Check Digit 15
25. Migration of Existing Taxpayer under GST
Person registered under existing taxes subsumed in GST
and having a valid PAN
Person registered under earlier laws to be issued
Registration Certificate (‘RC’) on provisional basis
Migration of existing assessee to be handled by :-
Manufacturer – State Govt. (Dealers under VAT)
Trader – State Govt. (Dealers under VAT)
Service provider – Central Govt. (Service tax assessee)
Provisional RC to be valid for 6 months from the date of
issue
26. Migration of Existing Taxpayer under GST
Dealer to submit prescribed information to relevant
authority
Validity of provisional registration may be extended
further by Govt. (Delay in transition)
RC to be granted on final basis by Central/State
Government on submission of information
RC to be cancelled if dealer fails to furnish the
information within prescribed period
27. Migration of Existing Taxpayer under GST
Person may submit application if not liable for
registration under GST
Discontinuation of business
Threshold limit
Product / Service not taxable under GST
Relocation of business to another state
Reorganization of supply chain
Central / State Govt. had commenced the process of
issuing registration under GST
Section 166 of the Model GST Law
