GST

GOODS AND SERVICE TAX

For - BBA/B.COM (H)

 Course Contents:

UNIT-II UNIT-III
UNIT-I
• Assessment of Tax • Demand & Recovery
GST In India- • Tax Invoice • Inspection
• Provisions of Indirect • Search, Seizure &
• Credit & Debit Note
Tax • Accounts & Records Arrest
• Basic Concept of • Advance Ruling
• Input Tax Credit
Supply • Place & Time of • Appeal & Revisions
• Composite & Mix
Supply
Supplies • Valuation & UNIT- IV
• Services under GST
Exemption • Audit
•Levy & Charges of GST
• Job Work • Offences & Penalties
•Procedure of
• Refund
Registration
UNIT- III • Activities Neither
• Person & Taxable
Supply of Goods nor
Person • Return & Due Dates Services
• Payment of Tax
• TCS • Role of GST
Practitioner
THE-JOURNEY-TO-GST
 INTRODUCTION OF GST

GST is an Indirect tax, It has been introduce in India on 1st July 2017.

It is a single indirect tax with an aim to make nation a unified common market.

It is levied by the Govt. on the both goods and services provided by supplier to the
Consumer.

It is applicable on whole of India.

GST is one indirect tax for the entire country.

What is GST ?

GST is a value added tax levied on supply of Goods & Services

GST offer comprehensive and continuous chain of tax credit from the producer’s
Point/services provider’s up to the retailer’s consumer’s level thereby taxing
only the value added at each stage of supply chain.

The supplier at each stage is permitted to avail credit of GST paid on the purchase
of goods & services and can set off this credit against the GST payable on the
supply of goods & services to be made by him.

Since, only the value added at each stage is taxed under GST, there is no Tax on Tax
Cascading of taxes under GST System.
(A)Manufacturer (B) Distributor (C) Retailer

MECHANISM OF GST
• Cost: • Cos
10,000
12,
• Sale :
• Profit: • Pro
2000
10,000 200
• Sale
GST@ • Sal
Price:
18% = 140
12000
1800/- • GST
• A
• GST @
18%
18% =
Receiv 252
2160
ed • C
• B
11,800 rec
ITC- NIL ITC- 1800 Receiv
ITC- 2160 ITC- NIL d
ed
165
14160 All tax
Paid to Paid to Paid to
borne by D
Govt. Govt. 2160- Govt. 2520-
1800+360+3
1800 1800 = 360 2160 = 360
60 = 2520
TYPES OF GST
 TYPES OF GST

GST is sub divided into four different types:

SGST – State GST, collected by the State Govt.

CGST – Central GST, collected by the Central Govt.

IGST – Integrated GST, collected by the Central Govt. on supply of Inter-State.

UTGST – Union territory GST, collected by union territory govt.

 FEATURE S OF GST

Dual tax system: GST is having two components, Central GST which will be levied
By the Central Govt. and other as State GST which will be levied by the
Concerned State.

Destination based tax: GST is based on the destination of consumption at a time of

sale and supply of goods & services to final consumer not at various point.

Input tax credit set off: Since, both Central GST & State GST are treated separately.
credit of CGST will be used against the tax amount payable of CGST only and Credit
of SGST will be used against the tax amount payable of SGST.
No internal credit will be allowed.
 FEATURE S OF GST

GST Council: Both Central and State Govt. will have a joint forum named as
GST Council. Recommendations on important issues like tax rates, tax exemption
list, threshold limit etc. will be issued by GST Council.

Uniformity: The uniform procedure will be followed for collection, appeal, refund &
Registration of both Central GST & State GST as prescribed in the legislation.

Return of GST: Periodical return are to be submitted by the taxpayers as per the
forms prescribed by the GST Authorities.
Benefits of GST

Creation of unified national market: GST aim to make India a common market
with common tax rates and procedures and remove the economic barrier thus
paving the way for an integrated economy at the national level

Ease of doing business: The uniformity in laws, procedures and tax rates across
the country makes doing business easier.

Reduction in compliance cost: The compliance cost is lesser under GST as multiple
Record-keeping for a variety of taxes is not needed, therefore, there is lesser
Investment of resources and manpower in maintaining records
Benefits of GST

Benefits to Industry: GST has given more relief to trade and industry through a
more comprehensive and wider coverage of input tax set-off and services tax,
subsuming of several Central and State taxes in the GST

Mitigation of ill effects of cascading: By subsuming most of the central & state
taxes into a single tax and by allowing a set-off prior stage taxes for the transaction
Across the entire value chain.

Benefits to small traders & entrepreneurs: GST has increase the threshold for
GST registration for small business. Further Single registration is needed in one
State.
Limitation of GST

Impact on Real Estate: GST will create the negative points towards the real estate.
It will increase the cost of new homes resulting In the decreasing in the demand of
new homes. It will also reduce the development of the country.

Old wine in a New Bottle: According to some expert CGST is the new name given to
CST and SGST to VAT and IGST to Excise tax.

Inflation rate: Introduction of GST has increase the inflation rate almost by 2%
affecting the evolution of the country.

Costlier Services: Service industry such as telecom, education, airline and banking
are affected badly. These services have become costly due to increase in the tax rate
from 15% to 18%

Separate Registration Required for each State.

DIFFERENCE BETWEEN CGST, SGST, IGST, UTGST

Types of CGST SGST IGST UTGST

Differences
Applicable Intra Intra Inter- Within Union
State(within State(within state(outside Territory
state) state) state)
Collected by Central Govt. State Govt. Central Govt. UT Govt.

Benefitting Central Govt. State Govt. Central & UT Govt.

Authority State Both
Govt.
Exemption Rs.20/40 Rs.20/40 Rs.20/40 Exemption limit
Limit lakhs lakhs lakhs not define
 WORKING OF GST
Intra State Supply

Example : Mr. A (Delhi) goods of Rs.10000 sale to Mr. B (Delhi) and

Mr. B does the value addition of 30% and sells it to Mr. C (Delhi)
GST is charged @18%. Compute GST Liability of Mr. B

When Mr. A Supply to Mr. B When Mr. B Supply to Mr. C

Particulars Amount Particulars Amount
Taxable Value 10000 Taxable Value 13000
Add: CGST @9% 900 Add: CGST @9% 1170
Add: SGST @9% 900 Add: SGST @9% 1170
Total Payable By ‘B’ 11800 Total Payable By ‘C’ 15340
 WORKING OF GST
Intra State Supply

Computation of GST Payable by Mr. B

Particular CGST SGST

GST Payable by B on behalf of C 1170 1170
Less: GST Paid by B to A 900 900
Net GST Payable by ‘B’ 270 270
 WORKING OF GST
Inter-state supply

Example : Mr. A (Delhi) goods of Rs.10000 sale to Mr. B (Delhi) and

Mr. B does the value addition of 30% and sells it to Mr. C (NOIDA,UP)
GST is charged @18%. Compute GST Liability of Mr. B

When Mr. A Supply to Mr. B When Mr. B Supply to Mr. C

Particulars Amount Particulars Amount
Taxable Value 10000 Taxable Value 13000
Add: CGST @9% 900 Add: IGST @18% 2340
Add: SGST @9% 900 Total Payable By ‘C’ 15340
Total Payable By ‘B’ 11800

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 WORKING OF GST
Inter-state supply

Computation of GST Payable by Mr. B

Particular IGST
GST Payable by B on behalf of C 2340
Less: CGST Paid by B to A 900
Less: SGST Paid by B to A 900
Net GST Payable by ‘B’ 540

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