GOODS AND SERVICES TAX (GST) IN INDIA

JRA & Associates.Chartered Accountants

http://www.jraca.comB 15 (LGF) | GK Enclave-II | New Delhi | 110 048 | India

Historical Background 2000

• In 2000, the Vajpayee Govt. started discussion on GST by setting up an empowered committee. The committee was headed by Asim Dasgupta, (Finance Minister, Govt. of West Bengal).

2002-2004

• The Kelkar Task Force on the implementation of Fiscal Responsibility and Budget Management (FRBM) Act,2003 and suggested a comprehensive Goods and Services Tax (GST)

2006

• A proposal to introduce a national level Goods and Services Tax (GST) by April 1,2010 was first mooted in the Budget Speech for the financial year 2006-2007.

2007

• MAY 2007 - Empowered Committee of State Finance Ministers, on this request, started worked on GST roadmap.

• NOV 2007- The Joint Working Group, submitted its report to the empowered committee on Nov 19,2007.

2008

• APRIL 2008 - Empowered committee finalized views over GST and submitted report titled “A model and roadmap for Goods and Services Tax (GST) in India.

2009• NOV 2009 -Government of

India has issued first discussion paper in November, 2009.

2010• FEB 2010 – Mentioned in the

speech of then FM – GST to be introduced in April 2011.

2011

• MARCH 2011 – The Constitution 115th amendment bill introduced in Loksabha for levy of GST on all goods or services except for the specified goods.

2013

• AUG 2013 – Standing Committee Submitted its report on GST

• NOV 2013 – EC rejected govt’s proposal to include petroleum products.

2014

• DEC 2014 – The Constitution 122th amendment bill passed in Lok sabha for levy of GST which enables the introduction of GST probably by April 2016 on 17th Dec.,2014.

2016• The Constitution (122nd

Amendment) bill passed by Rajya sabha on 3rd Aug 2016.

What is GST?“Goods and Service Tax (GST) is a comprehensive tax levy

on manufacture, sale and consumption of goods and service at a national level.

GST is a tax on goods and services with value addition at each stage having comprehensive and continuous chain of set-of benefits from the producer’s/ service provider’s point up to the retailer’s level where only the final consumer should bear the tax.”

Need for GSTIntroduction of a GST to replace the existing multiple tax

structures of Centre and State taxes is not only desirable but imperative in the emerging economic environment.

Increasingly, services are used or consumed in production and distribution of goods and vice versa. Separate taxation of goods and services often requires splitting of transaction values into value of goods and services for taxation, which leads to greater complexities, administration and compliances costs.

Integration of various taxes into a GST system would make it possible to give full credit for inputs taxes collected. GST, being a destination-based consumption tax based on VAT principle, would also greatly help in removing economic distortions and will help in development of a common national market.

Subsuming of Existing TaxesSl. No.

Subsumed under CGST Subsumed under SGST

1 Central Excise Duty VAT / Sales tax2 Additional Excise Duties Entertainment tax

3 Excise Duty-Medicinal and Toiletries Preparation Act

Luxury tax

4 Service Tax Taxes on lottery, betting and gambling.

5 Additional CVD State Cesses and Surcharges

6 Special Additional Duty of Customs - 4% (SAD)

Entry tax

7 Surcharges, Cess

Present Tax Structure[5 Important Constituents]Excise Duty

Entry No. 84, List I, Schedule VIITaxable Event is Manufacture

Service TaxResiduary Entry No. 97, List I, Schedule VIITaxable Event is Provision of Service

Sales Tax / VAT/ CSTEntry No. 54 of List II (VAT) and 92A of List I (CST)Taxable Event is Sale

Customs DutyEntry No. 83, List I, Schedule VIITaxable Event is Import & Export

Entry Tax/ Entertainment TaxEntry No. 52 &62 List II, Schedule VII

Taxable Event is Entertainment & Entry of Goods

Present Indirect Tax Structure of India

Intra State Taxable Supply

Excise and Service Tax

will be known as CGST

Local VAT & Other taxes

will be known as SGST

Inter State Taxable Supply

CST will be replaced by

Integrated GST (IGST)

Approx. Sum Total of CGST

and SGST

Import From Outside India Custom Duty

In Place of CVD and SAD, IGST will be

charged

10

Proposed Indirect Tax Structure

GST registration process will be online through a portal maintained by Central Government of India.

GST REG 01 Application for Registration

under Section 19(1) of Goods and Services Tax Act, 20–

GST REG 02Acknowledgeme

ntGST REG 04 Application for filing clarificatio

n/additional information/ document for

<<Registration/Amendment/Ca

ncellation/ Revocation of Cancellation

GST REG 05 Order of Rejection

of Application for

<<Registration /Amendment / Cancellation/ Revocation of

Cancellation>>

GST REG 06Registration

Certificate issued under Section

19(8A) of the Goods and

Services Tax Act, 20–

GST REG 08Order of

Cancellation of Application fo

r Registration as Tax Deductor or Tax Collector at Source under

Section 21 of the Goods and

Service Tax Act, 20–.

GST REG 03

Registration Forms for GST in India

GST REG 10Applicati

on for Registrat

ion for Non

Resident Taxable Person

GST REG 11Applicati

on for Amendm

ent in Particula

rs subseque

nt to Registrat

ion

GST REG 12Order of Amendm

ent of existing

Registration

GST REG 13Order

of Allotment of

Temporary

Registration/

Suo Moto Registra

tion

GST REG 14Applicati

on for Cancellat

ion of Registrat

ion under Goods and Services Tax Act,

20–

GST REG 15

Show Cause Notice

for Cancellat

ion of Registrat

ion

GST REG 16Order for Cancellat

ion of Registrat

ion

GST REG 17Applicati

on for Revocati

on of Cancelle

d Registration under

Goods and

Services Act, 20–.

GST REG 18Order for Approval of Application for Revocati

on of Cancelle

d Registrat

ion

GST REG 19 Notice for

Seeking Clarification/

Documents relating

to Application for <<

Revocation of Cancellation>

>

GST REG 20Application for Enrolment of

Existing Taxpayer

GST REG 21Provisional Re

gistration Certificate to

existing taxpayer

GST REG 24Application for Cancellation

of Registration for the

Migrated Taxpayers not liable for

registration under Goods and Services Tax Act 20–

GST REG 23Intimation of discrepancies in Application for Enrolment

of existing taxpayer

GST REG 22Order of

cancellation of provisional certificateGST REG 25

Application for extension of registration period by

Casual / Non-Resident taxab

le person.

GST REG 26Form for

Field Visit Report

Who needs to be registered under GST regime

The provisions related to registration are

provided under Chapter VI of Goods and Services

Tax Law 2016 (hereinafter referred as

an Act).

According to Section 19, every person who is registered or holds a

registration certificate under Central Excise Law, Service Tax Law, Central Sales or under State VAT law shall be liable to be registered

under this act with effect from date of

enactment of this act.

In case of a person who is not registered under

any of the above act shall be liable to be

registered under this act if his turnover in

financial year exceeds the taxable threshold. The Threshold limit of

turnover for the purpose of registration is kept Rs.4 Lakhs for North East States including

Sikkim and Rs. 9 Lakhs for other States.

What will be the effective date of Registration

Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be date of his liability for registration.

Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.

 In case of suomoto registration, i.e. taking registration

voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of order of registration.

Cases in which registration is compulsory

As per paragraph 5 in Schedule III of MGL, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit.• Person making

Interstate taxable supply

• Casual Taxable Persons• Persons required to pay

tax under reverse charge

• Non resident Taxable Persons

• Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;

• Input Service Distributor

• an aggregator who supplies services under his brand name or his trade name

• Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.

If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration?

 * If a person fails to obtain registration under this act, than department can suo-moto proceed with registration of a person

Operating in diff. states with same PAN no.

Separately for each state

Multiple business

verticals in a state

May obtain separate registration

Voluntarily registration

May obtain registration

GST Enrollment Schedule

State Start Date End Date

Puducherry, Sikkim 08-11-2016 07-12-2016

Maharashtra, Goa, Daman and Diu, Dadra and Nagar Haveli, Chhatisgarh 14-11-2016 07-12-2016

Gujarat 15-11-2016 07-12-2016

Odisha, Jharkhand, Bihar, West Bengal, Madya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Mizoram, Manipur 30-11-2016 15-12-2016

Uttar Pradesh, Jammu & Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan 16-12-2016 31-12-2016

Kerala, Tamilnadu, Karnataka, Telangana, Andhra Pradesh 01-01-2017 15-01-2017

Enrolment of Taxpayers who are registered under Central Excise Act but not registered under State VAT 05-01-2017 31-01-2017

Enrolment of Taxpayers who are registered under Service Tax Act but not registered under State VAT 09-01-2017 31-01-2017

New registration under VAT/Service Tax/Central Excise after August 2016 01-02-2017 20-03-2017

Getting the Provisional ID for GST

Obtaining Provisional ID and Password The provisional ID and password for the GST registrations are directly obtained from

the Income Tax department. All existing taxpayers will be provided with a unique provisional ID and password by their tax officers. The ID and password are mandatory requirements for enrolling for GST and can be used to log into the GST portal created for this purpose. 

Documents Required for Registration Other than the provisional ID and password provided, ensure that you have the

following documents/information with you, at the time of enrolling for GST.

i) A personal email id to receive confirmation as well as acknowledgement.ii) Bank account number and IFSC code.iii) Proof of business, such as a partnership deed (PDF or JPEG file of the same),

registration certificate, and LLP Agreement, whichever applies. Keep the soft copy of the above-mentioned documents to upload easily onto the website.

iv) A photograph of partners, owner or Karta (in case of HUF) in a JPEG file with a size not exceeding 100KB.

v) A proof of appointment of authorized signatory, in either PDF or JPEG file, not exceeding 1MB.

vi) Bank account details (soft copy), with the image of bank account number, branch address as well as the address of the account holder (front page of the passbook, or bank statement). Again, ensure that the file size does not exceed more than 1MB.

Registration Process

• Go to the GST website and create a user ID and password. You need to use the provisional ID and password here to create the login credentials on the GST website.

• Click the link to the GST site, and hit ‘New User Login’ . Click ‘I agree’ on the declaration form displayed and hit ‘Continue’ to register.

Username and

Password• Once you agree to the declaration and hit ‘continue’,

you will be taken to the ‘Login’ page. Use the ‘Provisional ID’ provided by the tax department through mail, SMS or through any other communication, to Login.

• If the ‘Captcha’ image is not clear, reload it, and enter it in the box provided before pressing ‘Login’ tab.

Login• As soon as you login with the ID provided, a provisional ID

verification page will be displayed. Here, you need to fill in the details required for the registration, including:

• 1. Valid email ID2. valid mobile number

• Since important information and One Time Password will be sent to this ID and number, ensure that you have filled the correct details before clicking on ‘Continue’.

• The OTP will be sent to your email ID and mobile number, and both will be required for verification.

• Also, remember that the email ID and mobile number entered by you will be permanent, and will register in the records for any future correspondence.

• Any change in both email ID and mobile number can be done only after April 1, 2017, as specified in the GST ACT.

Verification of

credentials

• With the OTP verified, you will get the page with new credentials. There are options to fill in the personal details on the page to secure login. Change the password to secure your login.

• Once you set the password, you will be taken through a series of security questions. Answer them, and click ‘Submit’.

• There are five questions on this page, and think carefully before answering. It is mandatory to fill in the answers for all the five questions.

Five Questions

• Once you log into the account, after securing the credentials, you will be taken to the ‘Welcome Page’ of your account.Your Dashboard will have ‘Provisional ID Enrollment’. Click on that to get the Enrollment application.

Enrollment Application

• The page displayed once clicking on the ‘Provisional ID Enrollment’ on your dashboard will contain eight slabs, indicating:

• I. Business details v. Additional Place of BusinessII. Promoters or partners vi. Goods and ServicesIII. Authorized signatory vii. Bank AccountsIV. Principal place of business viii. Verification

Complete the Form

• The business details to be included are as given:Apart from the blank form to be filled, certain details are auto populated in the application from the data available through VAT system. Details such as:a. Legal name of business as per PAN and Current Tax Actb.PAN number of businessesc. State under which the business is registeredd. Ward or circle or sector

• The above-mentioned details cannot be changed. However, some details can be edited. These are as follows:1. Trade name 4.Date of registration of business2. Constitution of business 5.Document upload section3. Registration number

• Once you fill in the details and edit any if required, save the form, and click ‘Continue’.

Business Details

• The next page of enrolment would be the details of the promoters or partners of the business. Enter the requisite details demanded, hit save and continue.

• In case your business (or the names entered in the partners or promoters section) consists of an authorized signatory, you need to select the ‘Authorized signatory’ tab to fill in the details.

Owners’ Details

• On the ‘Principal Place of Business’, enter the relevant details, and click ‘Continue’. Do not forget to click ‘Save’ to ensure you have a hassle-free process.

Place of Business

•Under the goods and services tab, you need to enter the ‘HSN’ code of the goods handled under your business. If you do not know the code, simply enter the name of the goods under ‘Search HSN code’ to obtain the same. Hit Save and continue.•The same applies for services, too. Enter the SAC code of the services provided, or search for it, to obtain the same, and ‘Continue’ to the next step of the enrollment form.

Goods and

Services

•Under this tab, you need to enter details of the Bank account, type of bank account and IFSC code. The supporting documents for the same (soft copy of passbook or statements) need to be uploaded.

Bank Details

•Once you have submitted all details, you will be asked to verify the same and sign it with the DSC (digital signature certificate).Submit the form, with DSC, after verification. The ‘Successful Submission’ message will be displayed on screen. You will receive an acknowledgement within 15 minutes of submission. An ARN or application receipt number will be sent in the mail for further queries regarding the enrollment form.

Verification

Thank You !!