FAQ'S Infra

An Indirect Taxation ERA

GST - Non An Indirect Taxation ERA

Agenda

GST what, when & how?

Definitions
Implications
GST Features
Existing Business Model
Pre GST TAX Structure
GST Business Model
Classification of Goods & Services
GST Applicability
Invoice & Returns
GST Academics

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GST - Non An Indirect Taxation ERA

GST what, when & how?

What?

- GST - Goods and Service TAX

When?
- After successful implementation of VAT, Goods and Services Tax (GST)
will indeed be a further significant--improvement the next logical step
towards a comprehensive indirect tax reforms in the country.

How?

- Economic stability improvisation ACT

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GST - Non An Indirect Taxation ERA

Definitions

It is a destination based tax on consumption of goods and services. It is

proposed to be levied at all stages right from manufacture up to final
consumption with credit of taxes paid at previous stages available as setoff.
In a nutshell, only value addition will be taxed and burden of tax is to be
borne by the final consumer.

--
The tax would accrue to the taxing authority which has jurisdiction over the
place of consumption which is also termed as place of supply.

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GST - Non An Indirect Taxation ERA

Implications

Keep harmonious structure of rates over Country

Remove cascading effect of taxes and allowing set-off of prior-stage

taxes

Eradicating of Black money

Reduction in the overall tax burden--on consumers

Make our products competitive which leads to economic growth

widening of the tax base, increase in trade volumes and improved tax
compliance.

Slogan: One Nation One Market One Tax

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GST - Non An Indirect Taxation ERA

GST Features

Dual (Central & State) GST Structure

Destination (Consumption) Based tax

PAN linked GSTIN Number

Lift up undeveloped states

--
Compensation to Revenue lose states

Development of below poverty line

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GST - Non An Indirect Taxation ERA

Existing Business Model

--

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GST - Non An Indirect Taxation ERA

Pre GST TAX Structure

Central and State Taxes to be subsumed under GST

Taxes currently levied and collected by the Centre:

a) Central Excise duty

b) Duties of Excise (Medicinal and Toilet Preparations)
c) Additional Duties of Excise (Goods of Special Importance)
d) Additional Duties of Excise (Textiles and Textile Products)
e) Additional Duties of Customs --(commonly known as CVD)
f) Special Additional Duty of Customs (SAD)
g) Service Tax
h) Central Surcharges and Cesses so far as they relate to supply of
goods and services

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GST - Non An Indirect Taxation ERA

Pre GST TAX Structure

State taxes that would be subsumed under the GST are:

a) State VAT
b) Central Sales Tax
c) Luxury Tax
d) Entry Tax (all forms)
e) Entertainment and Amusement Tax (except when levied by the
local bodies) --
f) Taxes on advertisements g. Purchase Tax
g) Taxes on lotteries, betting and gambling
h) State Surcharges and Cesses so far as they relate to supply of goods
and services

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GST - Non An Indirect Taxation ERA

GST Business Model

--

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GST - Non An Indirect Taxation ERA

Classification of Goods & Services

All the Goods and Services are taxable under GST regime

HSN (Harmonized System of Nomenclature) code shall be used for

classifying the goods under the GST regime

Services will be classified as per the Services Accounting Code (SAC)

-- to be transferred for a transaction

Title as well as possession both have
to be considered as a supply of goods.

In case title is not transferred, the transaction would be treated as supply

of service in terms of Schedule II (1) (b).

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GST - Non An Indirect Taxation ERA

Classification of Goods & Services

In some cases, possession may be transferred immediately but title may

be transferred at a future date like in case of sale on approval basis or hire
purchase arrangement. Such transactions will also be termed as supply of
goods.

--

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GST - Non An Indirect Taxation ERA

GST Applicability

Every Supplier who makes a taxable supply i.e. Supply of goods and
services which are leviable to tax under GST law, and his aggregate turn
over in a financial year crosses the threshold of Rs.20 lakhs (Rs. 10
lakhs for NE & Special Category States) liable to register under GST
law and pay the taxes accordingly.

Tax payers with an aggregate turnover in a financial year up to [Rs.20

lakhs & Rs.10 Lakhs for NE and -- special category states] would be
exempt from tax .

A person whose aggregate turnover in the preceding financial year is

less than Rs.75 Lakhs can opt for a simplified composition scheme
where tax will payable at a concessional rate.

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GST - Non An Indirect Taxation ERA

Commodities outside the purview of GST

Alcohol liquor for human consumption is kept out of GST by way of

definition of GST on constitution.

Five petroleum products viz.

petroleum crude,
motor spirit (petrol),
high speed diesel,
natural gas and --
aviation turbine fuel have temporarily been kept out and GST Council
shall decide the date from which they shall be included in GST.

Electricity has been kept out of GST.

Municipality taxes

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GST - Non An Indirect Taxation ERA

Imports & Exports

Imports of Goods and Services will be treated as inter-state supplies and

IGST will be levied on import of goods and services into the country.
This IGST paid will be available for input tax Credit based on Bill of
Entry.

Exports will be treated as zero rated supplies. No tax will be payable on

exports of goods or services, however credit of input tax credit will be
--
available and same will be available as refund to the exporters. The
Exporter will have an option to either pay tax on the output and claim
refund of IGST or export under Bond without payment of IGST and
claim refund of Input Tax Credit (ITC).

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GST - Non An Indirect Taxation ERA

Taxable Event

Taxable event under GST is supply of goods or services or both. CGST

and SGST/ UTGST will be levied on intra-State supplies. IGST will be
levied on inter-State supplies.

supplies made without consideration will also come within the purview
of supply Schedule I

In order to be a supply which is-- taxable under GST, the transaction

should be in the course or furtherance of business.

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GST - Non An Indirect Taxation ERA

Meaning & Scope of Supply

The term supply includes all forms of supply of goods or services or

both that includes 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.

It also includes import of service.

The model GST law also provides -- for including certain transactions
made without consideration within the scope of supply Schedule -I

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GST - Non An Indirect Taxation ERA

Composite & Mixed Supply

Composite supply is a supply consisting of two or more taxable supplies

of goods or services or both or any combination thereof, which are
bundled in natural course and are supplied in conjunction with each other
in the ordinary course of business and where one of which is a principal
supply

Mixed supply is combination of more than one individual supplies of

goods or services or any combination-- thereof made in conjunction with
each other for a single price, which can ordinarily be supplied separately

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GST - Non An Indirect Taxation ERA

Stock Transfers

Inter-state self-supplies such as stock transfers, branch transfers or

consignment sales shall be taxable under IGST even though such
transactions may not involve payment of consideration.

However, intra-state self-supplies are not taxable subject to not opting for
registration as business vertical.

--

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GST - Non An Indirect Taxation ERA

Levy and Collection of Taxes

There shall be levied a tax called the central/State goods and services tax
on all intra-State supplies of goods or services or both, except on the
supply of alcoholic liquor for human consumption, on the value
determined under section 15 and at such rates, not exceeding twenty per
cent., as may be notified by the Government on the recommendations of
the Council and collected in such manner as may be prescribed and shall
be paid by the taxable person.
--

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GST - Non An Indirect Taxation ERA

Reverse Charge Mechanism

Reverse charge applies to supplies of both goods and services

RCM means -the liability to pay tax is on the recipient of supply of goods
and services instead of the supplier of such goods or services in respect
of notified categories of supply.

In case of receipt of supply from an unregistered person, the registered

--
person who is receiving goods or services shall be liable to pay tax under
reverse charge mechanism

Electronic commerce operator

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GST - Non An Indirect Taxation ERA

Composition Levy

The threshold for composition scheme is Rs. 75 Lakhs of aggregate

turnover in the preceding financial year.

The benefit of composition scheme can be availed up to the turnover of

Rs. 75 Lakhs in current financial year

composition scheme dealer is not eligible to claim input tax credit

--
All registered persons having the same Permanent Account Number
(PAN) have to opt for composition scheme. If one registered person opts
for normal scheme, others become ineligible for composition scheme

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GST - Non An Indirect Taxation ERA

Composition Levy

This scheme is not available for:

for services sector, except restaurants

an inter-State supplier of goods

electronic commerce operator

--

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GST - Non An Indirect Taxation ERA

Time of Supply of Goods

The time of supply of goods shall be the earlier of the following 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 with respect to the supply

or

--
The date on which the supplier receives the payment with respect to the
supply

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GST - Non An Indirect Taxation ERA

Time of Supply of Goods under Reverse charge

The time of supply will be the earliest of the following dates:

a) Date of receipt of goods; or

b) Date on which payment is made; or

c) The date immediately following 30 days from the date of issue of

invoice by the supplier. --

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GST - Non An Indirect Taxation ERA

Time of Supply of Services

The time of supply of services shall be the earliest of the following dates,
namely:

the date of issue of invoice by the supplier, if the invoice is issued

within the period prescribed under sub-section (2) of section 31 or the
date of receipt of payment, whichever is earlier; or

the date of provision of service,--if the invoice is not issued within the
period prescribed under sub-section (2) of section 31 or the date of
receipt of payment, whichever is earlier; or

the date on which the recipient shows the receipt of services in his
books of account, in a case where the provisions of clause (a) or
clause (b) do not apply

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GST - Non An Indirect Taxation ERA

Time of Supply of Services Under Reverse Charge:

The time of supply will be the earlier of the following dates:

date on which payment is made; or

the date immediately following sixty days from the date of issue of
invoice by the supplier.

--

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GST - Non An Indirect Taxation ERA

Tax invoice Supply of Services

A registered taxable person shall, before or after the provision of service, but
within a period prescribed in this behalf, issue a tax invoice showing
description, value of goods, tax payable thereon and other prescribed
particulars.

--

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GST - Non An Indirect Taxation ERA

Continuous Supply of Goods and Services

In case of continuous supply of goods,

where successive statements of accounts or successive payments are

involved, the invoice shall be issued before or at the time each such
statement is issued or, as the case may be, each such payment is
received. --

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GST - Non An Indirect Taxation ERA

Continuous Supply of Goods and Services

In case of continuous supply of services,

where the due date of payment is ascertainable from the contract, the
invoice shall be issued before or after the payment is liable to be made
by the recipient but within a period prescribed in this behalf whether or
not any payment has been received by the supplier of the service;

where the due date of payment is not

-- ascertainable from the contract, the
invoice shall be issued before or after each such time when the supplier
of service receives the payment but within a period prescribed in this
behalf;

where the payment is linked to the completion of an event, the invoice

shall be issued before or after the time of completion of that event but
within a period prescribed in this behalf.

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Types of Invoices

Tax Invoice
Revised invoice
Bill of Supply
Advance Receipt voucher
Advance refund voucher
Reverse tax invoice
Advance payment voucher --
Credit Note
Debit Note
ISD invoice
Delivery Challan

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No. of Copies in Invoices

The invoice should be prepared in triplicate.

a) The original is for the recipient,

b) Triplicate for the supplier and
c) The duplicate for the transporter.

--
The copies should be marked as ORIGINAL FOR
RECIPIENT, DUPLICATE FORTRANSPORTER and
TRIPLICATE FOR SUPPLIER, as the case may be.

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Context of TAX Invoices

Following contents are must in the Tax invoice

a) Suppliers name, address and GSTIN

b) A consecutive serial number in one or multiple series, containing
alphabets

c) numerals or special characters hyphen or dash and slash symbolized

as - and / respectively, and
-- any combination thereof, unique for
a financial year
d) Receivers name, bill to address and GSTIN/ Unique ID (in case of
registered recipient)
e) Date of its issue Receivers name, address and address of delivery
along with name of the state and its code if taxable value exceeds or
is equal to Rs. 50,000 (in case of unregistered recipient)

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Context of TAX Invoices (Contd..)

f) HSN code of the goods/ Service Accounting Code (SAC) for services
g) Place of supply along with name of state in case of interstate supply
h) Place of delivery (in case it is different from the place of supply)
i) Rate of GST (CGST, SGST, IGST or cess)
j) Quantity in case of goods and unit or Unique Quantity Code thereof
k) Taxable value of goods and services after discount or abatement 21
l) Amount of tax charged in respect of taxable goods or services- CGST,
SGST, IGST or cess as may be applicable
--
m) Total value of supply of goods or services or both
n) Description of goods and / services
o) Whether tax is payable under reverse charge
p) Signature or digital signature of supplier or authorized representative

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Bill of Supply

A Bill of Supply would be required to be issued instead of a tax invoice, in

case of registered person is supplying exempted goods or services or both
and by assesses opting for composition scheme.

--

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Contents of Bill Supply

a) A consecutive serial number in one or multiple series, containing

alphabets or numerals or special characters -hyphen or dash and slash
symbolized as -and / respectively, and any combination thereof,,
unique for a financial year and date of issue of invoice
b) Suppliers name, address and GSTIN
c) Receivers name, address and GSTIN/ Unique ID number (in case of
registered recipient)
d) HSN code of the goods/ SAC for services
--
e) Description of goods and services
f) Value of goods and services after discount or abatement
g) Signature or digital signature of supplier or authorized representative

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E Way Bill

Every registered person who causes movement of goods exceeding

INR50,000 (including movement from unregistered dealer) shall before
commencement of movement shall furnish information in Form GST
INS 01 electronically and

a) In case the goods are transported as a consignor or the recipient of

supply (as a consignee) the recipient may generate e-way bill in
Form GST INS -1 electronically -- after furnishing the information in
Part B of Form GST INS -01
b) In case the e-way bill is not generated under 1 above and the goods
are handed over to transporter, then the registered person shall
furnish the details of transporter in Part B of Form GST INS -01. In
such a scenario, transporter to generate the e-way bill electronically.

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E Way Bill (Contd..)

Validity of E Way Bill

SI.No Distance Validity period

1 Less than 100 Km 1 day
2 100 km or more but less than 300km 3 days
3 300 km or more but less than 500km 5 days
4 -- 1000km
500 km or more but less than 10 days
5 1000 Km or more 15 days

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Documents required to be carried by Person in charge of Conveyance

The person in charge of a conveyance shall carry

a) the invoice or bill of supply or delivery challan, as the case may
be; and
b) copy of the e-way bill or the e-way bill number, either physically
or mapped to a Radio Frequency Identification Device (RFID)
embedded onto the conveyance in such manner as may be notified
by the Commissioner
Bill --

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GST - Non An Indirect Taxation ERA

Input Tax Credit

Input tax means the central tax (CGST), State tax (SGST), integrated tax
(IGST) or Union territory tax (UTGST) charged on supply of goods or
services or both made to a registered person. It also includes tax paid on
reverse charge basis and integrated tax goods and services tax charged on
import of goods. It does not include tax paid under composition levy.
--

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GST - Non An Indirect Taxation ERA

Conditions for availing ITC

Following four conditions are to be satisfied by the registered taxable

person for obtaining ITC:

he is in possession of tax invoice or debit note or such other tax

paying documents as may be prescribed;

he has received the goods or services or both;

--
the supplier has actually paid the tax charged in respect of the
supply to the government; and

he has furnished the return under section 39.

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Payment of TAX

Payment of taxes by the normal taxpayer is to be done on monthly basis by

the 20th of the succeeding month.

--

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Returns

Every registered taxable person is required to file Return in GST

regime.
GSTR-1 : Outward supply return should be filed by 10 th of Succeeding
month.
GSTR-2: Inward Supply return should be filed by 15 th of succeeding
month.
GSTR-3: Monthly Return by 20th of Succeding month
--

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GST - Non Trade Procurement

Thank You
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