Goods & Service tax

–time to gear up

CMA Rakesh Bhalla CMA Anil

Sharma
Former chairman NIRC (ICAI RCM & Secretary –NIRC
09779010685 09872073456
[email protected] [email protected]
 World GDP Trends
PERIOD INDIA CHINA JAPAN USA EUROPE REST OF
THE WORLD

1AD 33 27 1 0 14 25

1500AD 25 25 3 0 21 26

1820AD 15 33 3 2 27 20

1870AD 12 17 2 9 38 22

1950AD 4 5 3 28 31 29

2008AD 6 13 7 21 19 34

2014-15 6 13.43 5.97 22 18-19 35

AD*

Source The Economic Times Dt. 29/01/2008

*International Monetary Fund World Economic Outlook (April-2015)

Today’s Agenda

Basic Concept of GST

Revised draft GST Law
Revised draft IGST Law
Draft Rules for Registration*
Draft rules for Payments*
Draft Rules for Returns*
Draft Rules for Refunds*
Revised Draft Model GST Law
as released on 25th Nov., 2016
 Salient features
• The Draft Model GST Law consists of 197
clauses
• 27 Chapters along with 5 schedules
• Valuation Rules 2016 under GST.
• Draft IGST Act, 2016 consists of 24 clauses
divided into 11 Chapters
• different dates may be appointed for different
provisions of this Act
 new Definitions (Sec. 2)

(2) “address of delivery” means the address of the recipient of goods

(3) “address on record” means the address of the recipient as
available in the records of the supplier;
(6) “aggregate turnover” means the aggregate value of all taxable
supplies, exempt supplies, exports of goods and/or services and
inter-State supplies of a person having the same PAN, to be
computed on all India basis and excludes taxes, if any, charged
under the CGST Act, SGST Act and the IGST Act, as the case may be
and on reverse charged value.

(9) "Appellate Tribunal" means the National Goods and Services Tax
Appellate Tribunal constituted under section 81
 new Definitions (Sec. 2)

(11) “appropriate Government” means the Central Government in case of the IGST and the CGST, and the State
Government in case of the SGST

(40) “electronic cash ledger” means the cash ledger in electronic form maintained at the common portal for
each registered taxable person in the manner as may be prescribed in this behalf;

(43) “electronic credit ledger” means the input tax credit ledger in electronic form maintained at the common
portal for each registered taxable person in the manner as may be prescribed in this behalf

(47) “fixed establishment” means a place (other than the place of business) which is characterized by a
sufficient degree of permanence and suitable structure in terms of human and technical resources to
supply services, or to receive and use services for its own needs;

(48) “fund” means the Consumer Welfare Fund established under section 40;

(66) “mixed suplly” meanstwo or more individual supplies of goods or services, or

any combination thereof, made in conjunction with each other by a taxable
person for a single price where such supply does not constitute a composite
supply;
 new Definitions (Sec. 2)
(74) “place of business” includes
(a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or
any other place where a taxable person stores his goods, provides or receives goods and/or
services; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called;

(77) “principal place of business” means the place of business specified as the principal place of
business in the certificate of registration where the taxable person keeps and maintains the
accounts and records as specified under section 42 ;

(78) “Principle Supply” means the supply of goods or services which constitutes the
predominant element of a composite supply and to which any other supply forming
part of that composite supply is ancillary and does not constitute, for the recipient
an aim in itself, but a means for better enjoyment of the principal supply;

(108) “usual place of residence” means

(a) in case of an individual, the place where he ordinarily resides;
(b) in other cases, the place where the person, as defined in sub-section (74), is incorporated or
otherwise legally constituted;
 Meaning of Supply (Sec.-3)
(1) Supply includes
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license,
rental, lease or disposal made or agreed to be made for a consideration by a person in the
course or furtherance of business,
(b) importation of service, whether or not for a consideration and whether or not in the course
or furtherance of business, and
(c) a supply specified in Schedule I, made or agreed to be made without a consideration.

(2) Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is
to be treated as a supply of goods or a supply of services.
Where a person acting as an agent who, for an agreed commission or brokerage, either
supplies or receives any goods and/or services on behalf of any principal, the transaction
between such principal and agent shall be deemed to be a supply.

(3) Subject to sub-section (2), the Central or a State Government may, upon recommendation of
the Council, specify, by notification, the transactions that are to be treated as—
(i) a supply of goods and not as a supply of services; or
(ii) a supply of services and not as a supply of goods; or
(iii) neither a supply of goods nor a supply of services.
and includes principle and composite supplies.
 Meaning of Supply (Sec.-3)

SCHEDULE I
MATTERS TO BE TREATED AS SUPPLY WITHOUT CONSIDERATION
1. Permanent transfer/disposal of business assets where input tax
credit has been availed on such assets.
2. Supply of goods or services between related persons, or between
distinct persons as specified in section 10, when made in the course
or furtherance of business.
3. Supply of goods—
- by a principal to his agent where the agent undertakes to supply
such goods on behalf of the principal, or
- by an agent to his principal where the agent undertakes to receive
such goods on behalf of the principal.
4. Importation of services by a taxable person from a related person or
from any of his other establishments outside India, in the course or
furtherance of business.
 Registration: Sec. 23-27

A supplier is required to get registered under the

GST if his aggregate turnover in a Financial Year
exceeds Rs. 20 lakhs

No threshold exemption for persons making

Inter-State supply, those who are required to pay
GST under reverse charge mechanism, TDS, TCS
 Point of taxation-old

Time of supply of goods

•Date on which the goods are removed for supply
to the recipient (movable goods); or
•Date on which the goods are made available to
the recipient (immovable goods); or
•Date of issuing invoice by supplier; or
•Date of receipt of payment by supplier, or
•Date on which recipient shows the receipt of the
goods in his books of account.
Which ever is earlier
 Point of taxation

Time of supply of services

(I) The date of issue of invoice or the date of receipt of
payment, whichever is earlier, if the invoice is issued
within the prescribed period of thirty days ; or
(ii) The date of completion of the provision of service or
the date of receipt of payment, whichever is earlier, if
the invoice is not issued within the prescribed period of
thirty days ; or
(iii) The date on which the recipient shows the receipt
of services in his books of account, in a case where the
provisions of (i) or (ii) do not apply.
 Point of taxation-revised, Sec-12
1. The time of supply of goods/services shall be the earlier of the following
dates, namely,-
- the date of issue of invoice by the supplier or the last date on which he is
required, under section 28, to issue the invoice or
- the date on which the supplier receives the payment with respect to the supply.
2. In case of reverse charge, earliest of the following
– the date of the receipt of goods/services, or
– the date on which the payment is made, or
– the date immediately following thirty /Sixty days from the date of issue of invoice by
the supplier
3. In case of supply of vouchers:
- the date of issue of voucher
- the date of redemption of voucher
4. If not possible as above:
- in a case where a periodical return has to be filed, be the date on
which such return is to be filed, or
- in any other case, be the date on which the CGST/SGST is paid
July 3, 2025 [email protected] 14
 Returns: Sec 32-43

Monthly Return: Every registered taxable person shall have to file a monthly return within 20
days after the end of such month.
Return for Composition Scheme: A registered taxable person paying tax under composition
scheme shall have to furnish a return for each quarter or part thereof, electronically, within 18
days after the end of such quarter.
TDS Return: Every registered taxable person who is required to deduct tax at source shall
furnish a return, electronically, within 10 days after the end of month in which deduction is
made.
Return for Input Service Distributor: Every Input Service Distributor shall file return for every
calendar month or part thereof, electronically, within 13 days after the end of such month.
First Return: Every registered taxable person shall have to furnish the first return from the
date on which he became liable to registration till the end of the month in which the
registration has been granted.
Annual return: Every registered taxable person except certain specified person shall have to
furnish an annual return for every financial year electronically on or before the 31st day of
December following the end of such financial year.
Final return: Every registered taxable person who applies for cancellation of registration shall
have to furnish a final return within three months of the date of cancellation or date of
cancellation order, whichever is later, in a prescribed form.

*late fee of rupees one hundred for every day during which such failure continues subject to a maximum of rupees
 Manner of availing ITC (Sec. 16-22)

Every registered taxable person is entitled to ITC provided he has

filled return
No Credit is available after the expiry of one year from the date of
issue of tax invoice relating to such supply,
Proportionate ITC is available where supplies are used partially for
business
Proportionate ITC is available where supplies are used for taxable
including zero rated and non-taxable supplies
ITC can be transferred to newly constituted business
A taxable person shall not be entitled to take input tax credit in
respect of any invoice, after the filing of the return under section 34 for
the month of September following the end of financial year to which
such invoice pertains or filing of the relevant annual return, whichever
is earlier.
Any wrong taken of ITC, shall be recovered in the manner as may be
 Material sent for Job work Sec-20
Registered person is entitled to take credit of
input tax on inputs sent to a job-worker for job-
work if the said inputs, after completion of job-
work, are received back by him within one year of
their being sent out
Registered person entitled to take credit of input
tax on capital goods sent to a job-worker for job-
work if the said capital goods, after completion of
job-work, are received back by him within three
years of their being sent out
 Valuation of Supply (Sec.-15)
a) Transaction Value Method: The value of goods and/or services shall be the
transaction value i.e.the value determined in monetary terms.
b) Comparison Method: Where value of supply cannot be determined under the
Transaction Value Method, the value shall be determined on the basis of
transaction value of goods and/or services of like kind and quality supplied at
or about the same time to customers.
c) Computed Value Method: Where value cannot be determined under the
Comparison method, it shall be based on a computed value which shall include
cost of production, manufacture or processing of the goods or, the cost of the
provision of services, the charges, if any, for design & brand and amount
towards profit & general expenses equal to that usually reflected in supply of
goods and/or services of the same class or kind as the goods and/or services
being valued which are made by other suppliers.
d) Residual Method: Where the value cannot be determined under the
Computed Value method, the value shall be determined using reasonable
means consistent with the principles and general provisions of the Valuation
Rules.
 Accounts : Sec 53-54

Every registered person shall keep and maintain,

at his principal place of business, as mentioned in
the certificate of registration,
Every registered taxable person whose turnover
during a financial year exceeds the prescribed limit
shall get his accounts audited by a chartered
accountant or a cost accountant
Every registered person shall retain them until the
expiry of sixty months from the last date of filing of
Annual Return for the year pertaining to such
accounts and records
 ASSESSMENT- Sec. 57-62

Self-Assessment –sec 57
Provisional Assessment- sec 58
Scrutiny of returns- sec 59 :
Assessment of non-filers of returns: sec 60
Assessment of unregistered persons: sec 61
Summary assessment in certain special cases: sec 62
 Audit:Sec.63-65

Audit by tax authorities: may undertake audit of the

business transactions of any taxable person for such
period, at such frequency and in such manner as
may be prescribed.

Special audit: Authorities may direct such taxable

person by notice in writing to get his records
including books of account examined and audited by
a chartered accountant or a cost accountant as may
be nominated by the [Commissioner] in this behalf .
.
 Demand and Recovery: Sec 66-78

Determination of tax not paid or short paid or erroneously

refunded :Sec 66
A. Determination of tax not paid or short paid or erroneously
refunded or input tax credit wrongly availed or utilized for any
reason other than fraud or any willful misstatement or
suppression of facts: interest and a penalty not exceeding ten
percent of tax or ten thousand rupees, whichever is higher
B. B. Determination of tax not paid or short paid or erroneously
refunded or input tax credit wrongly availed or utilized by
reason of fraud or any willful-misstatement or suppression of
facts: interest payable thereon under section 45 and a penalty
equivalent to the tax .
C. General provisions relating to demand of tax
 Demand and Recovery

Tax collected but not deposited with the Central/State

Government: sec 69

•regardless of whether the supplies in respect of which such

amount was collected are taxable or not
•penalty equivalent to the amount specified in the notice
should not be imposed on him under the provisions of this Act
•The proper officer shall issue an order within one year from
the date of issue of the notice
 Other Provisions

• Tax wrongfully collected and deposited with the Central or a State

Government: sec 70
• Recovery of tax: sec 54 – any amt recoverable under the act
• Payment of tax and other amount in installments: sec 55
• Transfer of property to be void in certain cases: sec 56
• Tax to be first charge on property: sec 57
• Provisional attachment to protect revenue in certain cases: sec 58
• Continuation of certain recovery proceedings: sec 59
 INSPECTION, SEARCH, SEIZURE AND ARREST
(Sec- 79-84)

 Power of inspection, search and seizure

 Inspection of goods in movement
 Power to arrest
 Power to summon persons to give evidence
and produce documents
 Access to business premises
 Officers required to assist CGST/SGST officers
 OFFENCES AND PENALTIES

• Any Registered Person shall be liable to a penalty of rupees

ten thousand or an amount equivalent to the tax evaded or
the tax not deducted or short deducted or deducted but not
paid to the Government or input tax credit availed of or
passed on or distributed irregularly, or the refund claimed
fraudulently, as the case may be, whichever is higher.
• Any registered person who repeatedly makes short payment
of tax shall be liable to a penalty of rupees ten thousand or
ten percent of the tax short paid, whichever is higher
• Any person : shall be liable to a penalty which
may extend to rupees twenty five thousand
 PROSECUTION AND COMPOUNDING OF OFFENCES

Prosecution: in case of evasion of tax:

1. > 250.00 lakh Imprisonment up to five yrs

2. > 100 < 250 lakh Imprisonment up to three yrs

3. > 50 < 100 lakh Imprisonment up to one yr.

 APPEALS

Appeals to First Appellate Authority :sec 98

• Appeal Can’t be filed within three months unless the appellant

has deposited a sum equal to ten percent of the amount in
dispute

• Adjudicating Authority hear and decide every appeal within a

period of one year from the date on which it is filed
 Constitution of the National Appellate Tribunal

• Central Government on the recommendation of GST Council

• Headed by National President
• Every State GST Tribunal will be headed by a State President.
• Every State GST Tribunal shall consist of as many Members
(Judicial), Members (Technical - CGST) and Members (Technical -
SGST) as may be prescribed

Appeals to the Appellate Tribunal

• No appeal can be filed if amount not exceed one lakh rupees
• Appeal shall be filed within three months
• No appeal shall be filed unless the appellant has deposited a
sum equal to ten percent of the amount in dispute
• Tribunal shall hear and decide every appeal within a period of one
year
 Appearance by authorised representative: Sec 86

(a) his relative or regular employee; or

(b) an advocate who is entitled to practice in any court in
India, and who has not been debarred from practicing
before any court in India; or
(c) any chartered accountant, a cost accountant or a
company secretary, who holds a valid certificate of
practice and who has not been debarred from practice; or
(d) TRP
(e) any person who has acquired such qualifications as the
Central Government (or the State Government) may, on
the recommendation of the Council, prescribe for this
purpose.
 Appeal to the High Court
a) filed within one hundred and eighty days from
the date on which the order appealed against is
received by the Commissioner of GST or the
other party;
b) accompanied by a prescribed fee ;
c) in the form of a memorandum of appeal
precisely stating therein the substantial question
of law involved.
 Appeal to the Supreme Court: Sec 88
• Any aggrieved party can file an appeal to
Hon’ble Supreme Court
 Transitional Provisions
Migration of existing taxpayers to GST
Amount of CENVAT credit carried forward in a return to be
allowed as input tax credit
Exempted goods returned to the place of business on or after
the appointed day
Duty paid goods returned to the place of business on or after
the appointed day
Inputs removed for job work and returned on or after the
appointed day
Pending refund claims to be disposed of under earlier law
Claim of cenvat credit to be disposed of under the earlier law
Goods sent on approval basis returned on or after the
appointed day
 Treatment of long term construction / works contracts
 PART-II
Inter State GST
(IGST)
 Features of IGST Act, 2016

• The Draft Model GST Law consists of 24

clauses
• 11 Chapters
 Inter-State Transactions of Goods and Services
• Centre would levy IGST which would be CGST plus SGST on all Inter
State transactions,
• The inter-State seller will charge & pay IGST in his state on value
additions after adjusting available credit of IGST, CGST, and SGST on
his purchases,
• The Exporting State will transfer to the Centre the credit of SGST used
in payment of IGST,
• The Importing dealer will claim credit of IGST while discharging his
output tax liability in his own State,
• The Centre will transfer to the importing State the credit of IGST used
in payment of SGST,
• The relevant information will also be submitted to the Central Agency
which will act as a clearing house mechanism.
Rakesh Bhalla Anil Sharma
[email protected] [email protected]
 Features of IGST
a) Maintenance of uninterrupted ITC chain on inter- State transactions.

b) No upfront payment of tax or substantial blockage of funds for the inter- State seller or
buyer.

c) No refund claim in exporting State, as ITC is used while paying the IGST.

d) Self monitoring model.

e) Level of computerization is limited to inter-State dealers and Central and State

Governments should be able to computerize their processes expeditiously.

f) As all inter-State dealers will be e-registered and correspondence with them will be by e-
mail, the compliance level will improve substantially.

g) Model can take ‘Business to Business’ as well as ‘Business to Consumer’ transactions into
account.
Rakesh Bhalla Anil Sharma
[email protected] [email protected]
 Proposed Flow of ITC Credit
IGST
IGST Input
Output

SGST Input SGST

Out put

CGST
CGST Input Out put

ITC credit of SGST is not available for CGST or vice-a-versa

Rakesh Bhalla Anil Sharma

[email protected] [email protected]
 Sequence of use of IGST

IGST

CGST

SGST

Rakesh Bhalla Anil Sharma

[email protected] [email protected]
 Sale In Local Market
Purchase Amt. SGST CGST IGST Landed
(10%) (10%) (20%) Cost
----------------------------------- ------------ -------- -------- --------- ----------
Raw Material-‘A’ Rs. 100.00 10.00 10.00 - 120.00
“ “ -‘B’ (Imp.) “ 100.00 - - 20.00 120.00
________ _____ _____ ______ ______
TOTAL “ 200.00 10.00 10.00 20.00 240.00
======== ===== ===== ====== ======
Value Addition “ 100.00 100.00
Sales Price 300.00
Output Tax Liability “ 300.00 30.00 30.00 - 360.00
ITC ADJ. 10.00 30.00 (IGST+CGST)
TAX PAYABLE/(REFUND) 20.00 - -

Rakesh Bhalla Anil Sharma

[email protected] [email protected]
 IGST SALE (Inter state sale)
Purchase Amt. SGST CGST IGST Landed
(10%) (10%) (20%) Cost
------------------ ------------- ---------- -------- -------- ----------

Raw Material-‘A’ Rs. 100.00 10.00 10.00 - 120.00

“ “ - ‘B’(Imp.) “ 100.00 - - 20.00 120.00
------------- ---------- --------- ---------- ----------
TOTAL “ 200.0010.00 10.00 20.00 240.00
========= ====== ====== ====== ======
Value Addition “ 100.00100.00
Sales Price 300.00

Output Tax “ 300.00 - - 60.00 360.00

ITC ADJ. 10.00 10.00 20.00
TAX PAYABLE/(REFUND) 00.00 00.00 20.00
ADJ. AT STATE/CENTRE LEVEL 10.00 - -
Rakesh Bhalla Anil Sharma
[email protected] [email protected]
 Model-1: for Inter-State Supplies
Tax Paid by the Seller to the Authorities.

Seller collects the tax from buyer

along with purchase value

Seller Buyer

After collection, will

deposit GST in Bank Bank will send challan to the buyer &
to the credit of importing transfer the funds to importing state.
state

GST
BankBank upload the details to
Portal
GST Portal

* Credit is available only after payment of GST

Rakesh Bhalla Anil Sharma
[email protected] [email protected]
 Model-2: for Inter-State Supplies
Tax paid by Buyer to Authorities.

Buyer pays purchase value only

and will NOT PAY GST to seller Buyer
Seller

Importing State Bank Buyer will deposit GST

will give details to Seller in his own state

GST Bank
Portal Bank will upload the information (in importing
to GST portal. st)

* There would be no funds transfer from seller state to buyer state

Rakesh Bhalla Anil Sharma
[email protected] [email protected]
IGST Model: Tax Paid/Collection Mechanism(EC)
“A” State “B” State
Seller Sells goods Can’t avail ITC Non-
Exporting Importing
and collects IGST Regd.
State State Dealer

Seller deposits the IGST in Bank send digital Importing st. grant ITC on the basis of
Bank to the credit of challan to buyer & trf. credit received from bank of Ex.

State “B” & funds to importing state.

Also give other details
Central
Bank in Clearing
Exp. St. Dealer
House

Bank uploads information

on GST portal & information GST
become online. Portal
Rakesh Bhalla Anil Sharma
[email protected] [email protected]
 IGST Model: Tax Paid/Collection Mechanism (TF)
“A” State “B” State
Exporting Seller Sells goods Importing Can’t avail ITC Non-
State and collects IGST State Regd.
Dealer

Seller deposits the IGST in Bank send digital Importing st. grant ITC on the basis of
Bank to the credit of challan to buyer & trf. credit received from bank of Ex.

State B & Funds to importing state.

Also give other details Dealer
Bank in
Exp. St. Bank uploads information
on GST portal & information
become online.
GST
Portal

Rakesh Bhalla Anil Sharma

[email protected] [email protected]
 GST on Imports
• GST will be levied on imports with necessary
Constitutional Amendment. ?
• Both CGST and SGST will be levied on import of goods
and services via IGST may be levied.
• The incidence of tax will follow the destination principle
• The tax revenue in case of SGST will accrue to the State
where the imported goods and services are consumed.
• Full and complete set-off will be available on the GST
paid on import on goods and services

Rakesh Bhalla Anil Sharma

[email protected] [email protected]
 Zero Rating of Exports
• Exports would be zero-rated.
• Similar benefits may be given to Special Economic
Zones (in processing zones only)
• No benefit to the sales from an SEZ to Domestic
Tariff Area (DTA)

Rakesh Bhalla Anil Sharma

[email protected] [email protected]
 Special Industrial Area Scheme
•No exemption, remission etc. would be allowed,
•The existing exemptions ,remissions etc. should
be converted, if at all needed, into cash refund
schemes after collection of tax,
•Special Industrial Area Schemes would continue
up to legitimate expiry of time
(both for the Centre and the States).

Rakesh Bhalla Anil Sharma

[email protected] [email protected]
Draft Rules for Registration-
Dt. 28.09.2016
 Advantages to the business
– Legally recognized as supplier of goods or
services.

– Proper accounting of taxes paid on the input

goods or services which can be utilized for
payment of GST due on supply of goods or
services or both by the business.

– Pass on the credit of the taxes paid on the goods

or services supplied to purchasers or recipients.
 Draft Rules on Registration - assumptions

Assumptions of Registration Business Process

• A legal person without GST registration can neither collect GST nor claim any input tax credit (ITC)

• There will be a threshold of Gross Annual Turnover including exports and exempted supplies on all
India basis.

• Once a dealer crosses the required threshold or he starts a new business, registration application
must be filed within 30 days. Voluntary regd is also allowed.
(GST REG-01/02/03/04/05/025)

• Effective date of registration would be the date of application in all cases if application is filed
with in 30 days from the date of liability to pay tax otherwise from the date of registration
approved/granted (GST RET-06)

• No threshold limit for a dealer doing transactions in inter-state trade or commerce

• Compounding turnover up to which the registered person can opt to pay tax at a specified
percentage of the turnover

cont…2
 Registration rules- assumptions

• All UN bodies seeking to claim refund of taxes paid by

them would be required to obtain a unique identification
number (ID)- (GST REG 09)
• A unique identification number (ID) would be given by
the respective state tax authorities to Government
authorities / PSUs not making outwards supplies.
• The concept of Input Service Distributor (ISD) is
available in GST also
• Existing dealer will get registration automatically (GST
REG -20/21/22/23/24)
• Tax authorities, in case of enforcement cases, may grant
sue-moto registration (GST REG 13)
• State wise separate registration
 Registration Rules- assumptions

• Multiple registrations within one State to business

verticals is allowed (Sec. 19(2))
*Multiple applications can be filed at one go where a taxable person seeks registration in
more than one State or for more than one business vertical located in a single / multiple
State(s).
• Registration to persons required to deduct tax at source
(TDS) or collect tax at source (TCS) (GST REG- 07)
• Casual Dealers are allowed to do business and claim ITC
(GST REG -10/25)
• State wise PAN-based 15-digit Goods and Services
Taxpayer Identification Number (GSTIN).
• Registration with in Three Days/Seven days
• Amendment in Registration with in 15 days (GST REG-
11)
 Who is liable to get Registration
•Every supplier shall be liable to be registered the State from where he makes a taxable
supply of goods and/or services if his aggregate turnover in a financial year exceeds
TWENTY LAKH.

Others:
•persons making any inter-State taxable supply,
•casual taxable persons,
•persons who are required to pay tax under reverse charge,
•non-resident taxable persons,
•persons who are required to deduct tax under section 37; (TDS)
•persons who supply goods and/or services on behalf of other registered taxable persons
whether as an agent or otherwise;
•input service distributor;
•persons who supply goods and/or services, other than branded services, through
electronic commerce operator,
•every electronic commerce operator,
•an aggregator who supplies services under his brand name or his trade name, and
•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
 Migration of persons registered under Earlier Law

Every person registered under an earlier law and having a Permanent Account Number
issued under the Income Tax Act, 1961 (Act 43 of 1961) shall be granted registration on a
provisional basis (FORM GST REG- 21) subject to some formalities,

If details not found to be correct or complete, the proper officer shall cancel the
provisional registration granted under sub-rule (1) and issue an order in FORM
GST REG-22

Every person registered under any of the earlier laws, who is not liable to be
registered under the Act may, at his option, file electronically an application in
FORM GST REG-24 for cancellation of the registration granted provisionally to
him and the proper officer shall, after conducting such enquiry as deemed fit,
cancel the said provisional registration
 Cancelation/Surrender/Revocation of registration
(GST REG 14/15/16/17/18/19)

• Closure of business of tax payer;

• Gross Annual Turnover including exports and
exempted supplies (to be calculated on all-India
basis) falling below threshold for registration;
• Transfer of business for any reason including due to
death of the proprietor of a proprietorship firm;
• Amalgamation of taxable person with other legal
entities or de-merger;
• Non commencement of business by the tax payer
within the stipulated time period of six months
prescribed under the GST laws (Suitable provision to
be made in the GST law).
 Invoicing
(DRAFT GOODS AND SERVICES TAX
- INVOICE RULES, 200..)
 Tax Invoice (Sec. 23)
name, address and GSTIN of the supplier;
a consecutive serial number, unique for a financial year; and date of its issue;
name, address and GSTIN/ Unique ID Number, if registered, of the recipient;
name and address of the recipient and the address of delivery, along with the name of
State and its code, if such recipient is unregistered and where the taxable value of
supply is fifty thousand rupees or more;
HSN code of goods or Accounting Code of services;
description of goods or services; and quantity in case of goods and unit or Unique
Quantity Code thereof;
total value of goods or services;
taxable value of goods or services taking into account discount or abatement, if any;
rate and amount of tax (CGST, SGST or IGST);
place of supply along with the name of State,
place of delivery where the same is different from the place of supply;
whether the tax is payable on reverse charge;
the word “Revised Invoice” or “Supplementary Invoice”, where applicable along with
the date and invoice number of the original invoice; and
signature or digital signature of the supplier or his authorized representative
 Manner of Issue of Tax Invoice
In case of supply of goods, the invoice shall be prepared in triplicate

•ORIGINAL FOR RECIPIENT;

•DUPLICATE FOR TRANSPORTER; and
•TRIPLICATE FOR SUPPLIER

In case of supply of services, the invoice shall be prepared in duplicate,

• ORIGINAL FOR RECEIPIENT; and

• DUPLICATE FOR Service provider
 Bill of Supply
a registered taxable person supplying exempted goods and/or services or
paying tax under the provisions of section 9 shall issue, a bill of supply
 name, address and GSTIN of the supplier;
 a consecutive serial number containing only alphabets and/or
numerals, unique for a financial year;
 date of its issue;
 name, address and GSTIN/ Unique ID Number, if registered, of
the recipient;
 HSN Code of goods or Accounting Code for services;
 description of goods or services;
 value of goods or services taking into account discount or
abatement, if any; and
 signature or digital signature of the supplier or his authorized
representative:
 Other Provisions

•Supplementary tax invoice

•Credit or debit notes
•Tax Invoice by ISD
Draft rules on Payment of GST
through e-banking/Credit/Debit Cards/Cash.
 Salient features of payment of GST

• Electronically generated challan from GSTN Common

Portal ;
• hassle free, anytime, anywhere mode of payment of tax;
• Convenience of making payment online;
• Logical tax collection data in electronic format;
• Faster remittance of tax revenue to the Government
Account;
• Paperless transactions;
• Speedy Accounting and reporting;
• Electronic reconciliation of all receipts;
• Simplified procedure for banks;
• Warehousing of Digital Challan
 Mode of payments
• Net Banking by assesse or through Debit/Credit
cards
• Over the Counter payment (OTC) through
authorized banks up to Rs 10000/- only
• Payment through NEFT/RTGS from any bank
• No counter payments in departments
 Stake holders in payment
1. GSTN (Goods and Service Tax Network);
2. e- FPBs (Electronic Focal Point Branches) of
authorized banks;
3. e-Kuber of RBI;
4. Central Accounts Section (CAS) of RBI, Nagpur;
5. e-PAOs (Electronic Pay and account Offices) /
e-Treasuries of State Governments;
6. Pr. CCA, CBEC (Principal Chief Controller of
Accounts) / Accountant General of the States;
7. Tax authorities of Centre and States
 Ledgers maintained
• GST PMT -01 : Tax Liability Register
• GST PMT -02 : Electronic Credit Ledger
• GST PMT -03 : Electronic Cash Ledger
• GST PMT -04 : Payment Challan (valid for 15 days)
• GST PMT -05 : Account of Unregistered person
• GST PMT -06 : Representation to Bank/Authority
Business Process
-Returns
 What is Return?
A return is a statement of specified particulars
relating to business activity undertaken by the
taxable person during a prescribed period.

A taxable person has a legal obligation:

– To declare his tax liability for a given period in the return;

– Furnish details about the taxes paid in accordance with
that return; and
– File correct and complete return within stipulated time
frame.
 Returns under GST

•GST Return for Outward Supplies made by the Taxpayer (GSTR-1)

•GST Return for Inward Supplies received by the Taxpayer (GSTR-2)

•GST Return (GSTR-3)

•Quarterly Return for Compounding Taxpayers (GSTR-4)

•Non-Resident Foreign Taxpayers (GSTR-5)

•ISD Return (GSTR-6)

•TDS Return (GSTR-7)

•Annual Return (GSTR-8)

•Final return: Every registered taxable person who applies for cancellation of
registration shall have to furnish a final return within three months of the
date of cancellation or date of cancellation order, whichever is later, in a
prescribed form
 Who needs to file Return in GST regime?

• Every registered person

• UN agencies –need based

* Government entities / PSUs –not dealing with supplies or

persons dealing with NIL rate goods/services or Exempted
goods/services or non-GST goods/Services need not to file
returns
 Periodicity of Returns
GSTR-1 10th of the next month
(outward supplies)

GSTR-2 15thof the next month

(inward supplies)

GSTR-3 20thof the next month

GSTR-4 18thof the month next Quarter

(compounded)

GSTR-5 within a period of seven days after the date of expiry of

(non-resident) registration
GSTR-6 15th of the next month
(ISD Return)

GSTR-7 10th of the next month

(TDS Return)

GSTR-8 By 31st December of next F/Y

(Annual Return)
 Where to file Return
A registered Tax Payer shall file GST Return at GST
Common Portal either:

•by himself logging on to the GST Common Portal

using his own user ID and password; or

• through his authorized representative

 Other Provisions

• No Revision of Returns
• Debit/Credit Notes
• Non-filing, late-filing and short-filing of return

*late fee of rupees one hundred for every day during which such
failure continues subject to a maximum of rupees five thousand
Draft Report on Refunds
 Draft Report on Refund

Situations where refund arises:

• Excess Payment of Tax due to mistake or inadvertence
• Export (including deemed export)
• Finalization of Provisional Assessment
• Refund of Pre-deposit for filing appeal including refund arising in
pursuance of an appellate authority’s order
• Payment of Duty/Tax during investigation, but no/less liability
arises at the time of finalization of investigation/ adjudication
• Refund for Tax payment on Purchase by UN bodies, Supplies to
CSD Canteens, Para-military forces canteens, etc.
• Refund from Manufacturing / Generation/ Production/ Creation
of Tax- free supplies or Non-GST Supplies
• Refund of Carry Forward Input Tax Credit
• Refund on account of year-end or volume based incentives
provided by the supplier through credit notes
• Tax Refund for International Tourists
 Refund Forms
• GST RFD -01 : Application along with Annex.
• GST RFD -02 : Acknowledgement
• GST RFD- 03 : Notice for deficiencies
• GST RFD -04 : Order of Refund
• GST RFD -05 : Sanction of Amount of Refund
• GST RFD -06 : Adjustment order ag demand
• GST RFD -07 :
• GST RFD -08 : Payment advice
• GST REF -09 : Interest payment order
 Relevant Dates for Refunds
Event Date (with in one year)
refund arises on account of excess payment of GST due Date of payment of GST
to mistake or inadvertence

export of goods under claim of rebate of GST paid on Date on which proper officer under
exported goods or refund of accumulated input credit the Custom Act gives an order for
of GST when goods are exported. export known as “LET EXPORT
ORDER ”

export of services under claim of rebate of GST paid on Date of Bank Realisation Certificate
exported services or refund of accumulated input credit (BRC)
of GST when services are exported

refund arises on account of finalization of provisional Date of the finalization order

assessment.
 Refund
refund arises in pursuance of an appellate authority’s Date of appellate authority’s
order in favor of the taxpayer. order

refund arises on account of payment of GST during Date of adjudication order

investigation, etc. when no/less liability arose at the time
of finalization of investigation proceedings or issuance of
adjudication order.

refund arises on account of accumulated credit of GST in Date of providing of service

case of a liability to pay service tax in partial reverse
charge cases.

refund arising out of payment of GST on petroleum Date of payment of GST

products, etc. to Embassies or UN bodies or to CSD
canteens, etc. on the basis of applications filed by such
persons

refund of accumulated ITC on account of inverted duty Last day of the financial year
structure i.e. due to tax rate differential between output
and inputs.

Refund to International Tourist On their return, At Designated

Airports/ports
 Documents required for refunds
• Copy of TR-6 / GAR-7/ PLA / copy of return
evidencing payment of duty.
• Copy of invoices (in original) (for the purpose of evidencing the supply of
goods and the fact that duty is not reflected in the same).

• Documents evidencing that the tax burden has not

been passed on to the buyer.
• Any other document as prescribed by the refund
sanctioning authority i.e
• Shipping Bill (Export Promotion copy);
• Mate’s Receipt / Transporter’s Challan (in case of export by road);
• Export invoice;
• Packing list;
• Bill of Lading/ Airway Bill;
• Bank Realization Certificate (BRC).
• Refund can be claimed with in two yrs from the date.
Thank You