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GST – Benefits and Salient Features

GST – Updates on legal front

GST - Registration, Returns, Refunds, Rates, Others

GST - Trade-friendly features

GST - Myths vs Reality

GST – Awareness and Preparedness

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Central taxes

➢ Excise duty

➢ Additional Excise Duty

➢ Service tax

➢ CVD (Counter Veiling Duty)

➢ SAD (Special Additional Duty)

➢ Central Cesses & Surcharges

State taxes

➢ VAT

➢ CST

➢ Entertainment Tax.

➢ Luxury tax.

➢ Tax on Lottery, betting, gambling.

➢ Entry tax.

➢ Purchase tax

➢ State Surcharges & Cesses.

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➢ Single tax replacing multiple taxes

➢ Single Authority & Single interface for Trade

➢ Mitigates ill-effects of cascading

➢ Tax burden decreases - benefits common man

➢ Makes products and services competitive

➢ Boosts economic activity, GDP and jobcreation

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Destination-based consumption tax

Present concepts of “sale”, “manufacture”, “provision of service” will be

replaced by the concept of “supply”

Applicable on supply of all goods or services, barring a few

“Supply” includes sale, transfer, barter, exchange, licence, rental, lease or

disposal for a consideration in the course or furtherance of business; all

import of services; the activities specified in Schedule I & II

Tax liability depends on:

▪ Time of Supply

▪ Place of Supply

▪ Location of Supplier and Location of Receiver

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Coverage

Traders

Manufacturers

Service Providers

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Commodities not covered by GST

Alcohol for human

consumption

Five Petroleum Products

Electricity

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Central GST

SGST/UT

GST

IGSTIntegrated GST

➢ Levied by Parliament on intra-State

Supply of Goods & Services

➢ Revenue accrues to Central Govt.

➢ CGST Act, 2017 enacted

➢ Referred as “Central Tax” in the Act

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State GST

SGST/UT

GST

IGSTIntegrated GST

➢ On intra-State Supply of Goods &

Services

➢ Revenue accrues to consuming State

➢ SGST Acts passed by 24 states so far

➢ Referred as “State Tax”

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Integrated GST

SGST/UT

GST

IGSTIntegrated GST

➢On Inter-State Supply of Goods &

Services

➢Rate is a combination of CGST & SGST

➢Apportionment of Tax & Settlement of

funds between Centre and States

➢IGST Act, 2017 enacted

➢Referred to as “Integrated Tax”

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16/4: Telengana

24/4: Bihar

26/4: Rajasthan

27/4: Jharkhand

28/4: Chattisgarh

2/5: Uttarakhand

3/5: Madhya Pradesh

4/5: Haryana

9/5: Goa

9/5: Gujarat

11/5: Assam

12/5: Arunachal Pradesh

16/5: Andhra Pradesh

16/5: Uttar Pradesh

17/5: Puducherry

19/5: Orissa

22/5: Maharashtra

24/5: Sikkim

25/5: Tripura

25/5: Mizoram

27/5:Nagaland

27/5:Himachal Pradesh

31/5:Delhi

5/6:Manipur

Total 24 States till 5/613

➢All registered persons under ExistingLaws

➢If aggregate turnover in a financialyear exceeds Rs. 20 lakhs

➢The threshold turnover is Rs. 10Lakhs in case of special categorystates

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any person making supplies not

liable to tax or wholly exempt

under the Acts

an agriculturist, to the extent of

supply of produce out of

cultivation of land

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➢Persons making inter-State taxable supply➢Persons required to pay tax under reverse charge➢E-Commerce operators➢Persons who supply goods through e-commerceoperator

➢Persons who supply goods and/or services on behalfof a registered taxable person

➢Input Service Distributor (ISD)➢Persons required to deduct tax at source (TDS)➢Casual taxable persons➢Non-resident taxable persons

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PAN is mandatory statutory requirement for GSTRegistration

A person, though not liable to be registered, may takeregistration voluntarily

Registration is to be granted State-wise.

Person having multiple “business verticals” in a State mayobtain separate registration

Time-bound grant of Registration (within 3 working days)

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Simpler option given to small taxpayers

Aggregate turnover LESS THAN 75 lakh rupees in the preceding financial

year

Amount payable in lieu of tax (as per draft Composition Rules):

▪ (a) 2 per cent of turnover – manufacturers (1% under CGST & 1% under

SGST)

▪ (b) 5 per cent of turnover- restaurants (2.5% under CGST & 2.5% under

SGST)

▪ (c) 1 per cent of turnover – for other suppliers (0.5%under CGST & 0.5%

under SGST)

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Suppliers making Inter-state supplies

E-Commerce operators

Manufacturers of Certain Notified goods

All service providers [except restaurants]

Supplies through e-commerce operators

Casual or non-resident taxable persons

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GST Returns for normal taxpayer

Return Nature Periodicity Remarks

GSTR 1Details of outward

supplies

Monthly by

10th

Data to be filled

by user

GSTR 2 Details of inward

supplies

Monthly by

15th

Most Data will be

auto-populated

GSTR 3 Monthly returnMonthly by

20th

Most Data will be

auto-populated

GSTR 9Consolidated details in

a financial year

Annual by 31st

December

Data to be filled

by user

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Return Nature Periodicity

GSTR 4

Quarterly Return for

compounding Taxable

persons

18th of the month succeeding

Quarter

Many data will be auto-populated

GSTR 5Return for Non-Resident

foreign taxable person

20th of the Month succeeding the

tax period and 7 days from expiry of

registration

GSTR 6 Return by ISD13th of the Month succeeding the

tax period

GSTR 7 Return by TDS 10th of succeeding Month

GSTR 8 Return by TCS 10th of succeeding Month

GSTR 10

Final Return by RTP on

winding up of businessWithin 3 months from date of

cancellation of registration

GSTR 11Details of Inward supply be

a person having UIN

28th of the month following the

month for which statement is filed

GST Returns for other categories

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GST Returns – Key features

“Valid return”: Return valid only if self-

assessed tax is paid in full

Return once filed cannot be revised.

Rectification/amendment can be effected in

subsequent return

Separate returns for composition tax

payer, TDS, TCS, ISD which are not

relevant to normal taxpayer.22

➢Can be claimed within 2 years

➢Refund of Input tax Credit allowed

- in case of exports or

- where the input credit accumulation is on

account of inverted duty structure

➢Refund shall be granted within 60 days from the

date of receipt of application and Interest

payable thereafter

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➢In case of refund claim on exports, 90%

of the claim can be given immediately

within 7 days, on provisional basis.

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USAGE OF INPUT TAX

CREDIT

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Input Tax Credit – Key restriction

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Invoice under GST

Tax

Invoice

For taxable supplies - to be

issued by

regular taxpayers

Bill of

Supply

To be issued by

suppliers of exempted goods

and Composition taxpayers

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For movement of goods of consignment value exceeding Rs. 50,000/-:

(i) in relation to a supply; or (ii) for reasons other than supply; or (iii) due to inward supply from an unregistered

personbefore commencement of movement,

furnish information relating to the said goods electronically, on the common portal OR Facilitation Centres or by SMS

- Same procedure for cancellation also

- Can be generated by consignor, consignee or transporter

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“Job work” means any treatment or process

undertaken by a person on goods belonging to

another registered person

Value of goods after completion of job work is

not includible in the job worker’s turnover but

includible in the Principal’s turnover

Job worker is deemed as supplier of

“service”

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Through Credit Cards, Debit Cards,

Internet Banking (NEFT/RTGS)

Over the Counter [Upto Rs. 10000/-

per tax period]

Single Challan for all types of payment

Real Time entry into Cash Ledgers

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All Existing Registered Traders,Manufacturers, Service Providers to bemigrated automatically to GST

All eligible ITC balances and credits and allITC credits on stock held under existing lawsare transferrable to GST credit ledgers

All refunds in the existing law will continue tobe sanctioned under existing laws.

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0%: On essential items

3%:Jewellery,Rough Precious & Semi-

precious rates,etc

5%: On items of mass consumption

12% & 18%: Covering majority of

manufactured items and Services

28%: Certain Luxury goods and services32

Seamless credit flow across

the supply chain in the country

IT-driven – minimal physical

interface with tax authorities

Uniform laws, rules, rates,

procedures across the country

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GST Compliance Rating of all GST registrants on public

domain facilitates informed decisions about prospective

suppliers and customers by Trade

Assistance through recognised GST Practitioners

Complete ‘zero rating’ of exports and supplies to SEZ

Units & Developers

Flexibility of decision-making with government

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Interlocking of every tax payer

in the network ensures enhanced

compliance

No incentive for anyone

staying outside tax net

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Description Of Services GST Rate

Judicial, Non judicial stamp papers Exempted

Printed books, including Braille books [4901]

and newspaper, periodicals & journals [4902],

maps, atlas, chart & globe [4905] Exempted

Newspapers, journals and periodicals,

whether or not illustrated or containing

advertising material.

Exempted

Exempted

Maps and hydrographic or similar charts of all

kinds, including atlases, wall maps,

topographical plans and globes, printed Exempted

Description Of Services GST Rate

Newsprint, in rolls or sheets [4801] 5%

Brochures, leaflets and similar printed matter,

whether or not in single sheets5%

Uncoated paper and paperboard, uncoated kraft

paper, greaseproof paper, glassine paper,

composite paper etc.

12%

Boxes, pouches, wallets and writing

compendiums, of paper or paperboard,

containing an assortment of paper stationery

including writing blocks

12%

Cartons, boxes and cases of corrugated paper

or paper board

12%

12%

Exercise book, graph book, & laboratory note

book12%

Calendars of any kind, printed, including

calendar blocks12%

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Description Of Services GST Rate

Carbon paper, self-copy paper and other copying or

transfer papers18%

Printing ink, writing or drawing ink and other inks,

whether or not concentrated or solid18%

Envelopes, letter cards, plain postcards and

correspondence cards, of paper or paperboard;18%

Registers, account books, note books, order books,

receipt books, letter pads, memorandum pads,

diaries and similar articles, exercise books,

blotting-pads, binders (loose-leaf or other), folders,

file covers, manifold business

18%

Paper or paperboard labels of all kinds, whether or

not printed18%

Printing Machinery 18%

Wall paper and similar wall coverings 28%38

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SL NO Description Of Services GST Rate

12 Selling of space for advertisement in print

media

5% with

Full ITC

13 Services by way of job work in relation to

printing of newspapers;

5% with

Full ITC

13 A Services by way of job work in relation to –

c) Printing of books (including braille

books), journals and periodicals

5% with

Full ITC

CBEC & Karnataka VAT Dept. conducted extensive

outreach and awareness programs for trade and

industry on GST

FAQs in Kannada on GST available on

http://cbec.gov.in > GST > My GST > FAQs

GST Seva Kendras are operational for benefit of trade

and industry in all CBEC & KVAT offices

All offices and officers are ready for roll out of GST

by 1st July 2017 40

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http://cbec.gov.in > GST > Migration to GST

Let’s welcome the

Good and Simple Tax !!!

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THANK YOU!

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