GOODS & SERVICE TAX
Components of GST
- 1) Central GST (CGST) - Levy on supply of ALL goods and/ or services within a particular State, by the Central Government.
- 2) State GST (SGST) - Levy on supply of ALL goods and/ or services within a particular State, by the respective State Government
- 3) Integrated GST (IGST) – Levy on ALL inter-State supplies of goods and/ or services, by the Central Government
Levy & Collection
- 1) Goods means every kind of movable property and:
- Includes actionable claim
- Excludes money and securities
No specific exclusion for intangible property
- 2) Services means anything other than goods :
- Includes transactions in money – in relation to use / conversion
- Excludes money and securities
Registration
- • Threshold shall be – Aggregate turnover exceeding Rs.20 Lakhs in a financial year
- • Threshold shall be Rs.10 Lakhs in case of supplies made from Special Category States (North Eastern States, Uttarkhand and Jammu & Kashmir)
- • Registration from every State from which any taxable supply is made
- • Mandatory registration irrespective of threshold in the below cases:
Casual taxable persons;
Person making an inter-State supply (outward supply);
Person required to pay tax under reverse charge mechanism;
Persons who supply goods and/ or services on behalf of another registered taxable person (whether as agent or otherwise);
Notified persons required to deduct tax u/s 46;
Persons required to collect tax u/s 56 i.e., e-commerce operators;
Persons required to pay tax on the supply of notified services effected through it [u/s 8(4)];
Persons who supply goods and/ or services [other than supplies u/s 8(4)] through e-commerce operators who are required to collect tax u/s 56
Input service distributors;
Persons supplying online information & database access or retrieval services from a place outside India to an unregistered person
Migration of Existing Taxpayers to GST
• Every registered person under the earlier law having valid PAN will be issued a provisional registration certificate (PRC)
• Such PRC will be valid for six months or for such extended period
• Final RC will be issued by Central / State Government on furnishing of the prescribed information
• Registered taxable person other than composition dealer allowed carry forward of Input tax/ CENVAT credit eligible under earlier law and GST law – through a return
Types of Payments under GST
• For Supply of Inter-state / Intra State: -
CGST = A/c of the Central Govt.
SGST = A/c of concerned State Govt.
IGST = Components of both CGST & SGST
• Tax Deducted at Source (TDS) & Tax Collected at Source (TCS)
• Additionally wherever applicable: Interest, Penalty, Fees and Any other payment
Persons liable for Payment
• Generally, Supplier is liable to pay the tax
• In Other cases like:
Imports and other notified supplies, liabilities may be imposed on the recipient under the reverse charge mechanism (RCM)
By third person for example in case of :
• E-Commerce = Operator is responsible for TCS
• Contractual Payments = Government / Other notified entities are responsible for TDS
Mode of Payment
• Principal tax liability: Debit to Electronic Credit Ledger of the Taxpayer maintained on the “Common Portal – Only”;
• Interest, Penalty and Fees cannot be paid by debiting the Electronic Credit Ledger;
• Cash may be deposited by making E-Payment (Internet Banking, Credit Card – pre registration with the portal, Debit Card, RTGS / NEFT) at any authorized branches
of Banks to accept GST payments.
• The cash deposited would be as a debit to the Electronic Cash Ledger of the Taxpayer maintained on the “Common Portal”.
Electronic Credit Ledger
• Input tax credit (ITC) balance uploaded from return filed under earlier laws would be auto populated in this ledger;
• ITC would be of stock of Inputs, Semi-finished goods & Finished goods on the relevant date, from which Taxpayer becomes liable;
• ITC on inward supplies from Registered Tax Payers;
• ITC distributed from Input Service Distributor (ISD);
• Permissible ITC on stock held upon conversion from composition scheme;
• ITC eligible on payment made on reverse charge basis.
Time of Payment
On occurrence of any one of the following events, GST payment would become due (earliest of the following):
• Receipt of advance
• Issuance of Invoice
• Completion of Supply
Returns under GST
| RETURN FORM | PARTICULARS | DUE DATE | APPLICABLE FOR |
| GSTR 1 | Outward Supplies | 10th of the next month | Normal/ Regular Taxpayer |
| GSTR 3 | Monthly return [periodic] | 20th of the next month | Normal/ Regular Taxpayer |
| GSTR 4 | Return by Composition Supplier | 18th of the month next to the quarter | Composition Supplier |
| GSTR 5 | Return by non resident tax payers [foreigners] | a) 20 days after the end of a tax period or b) Within 7 days after expiry of registration whichever is earlier. | Foreign Non-Resident Taxpayer |
| GSTR 6 | Return by input service distributors | 13th of the next month | Input Service Distributor |
| GSTR 7 | TDS return | 10th of the next month | Tax Deductors |
| GSTR 8 | Statement of outward supplies of goods or services including returns | 10th of the next month | Every electronic commerce operator |
| GSTR 9 | Annual return | 31st December next FY | Normal/ Regular Taxpayer, Compounding Taxpayer |