GOODS AND SERVICE TAX AGENDA Why GST WHAT

GOODS AND SERVICE TAX

AGENDA Why GST WHAT IS GST Understanding the basic Concept HOW GST WORKS Understanding transactional provision IMPACT ANALYSIS ON MP TOURISM

Present Indirect Tax Structure of India Present Tax Structure [5 Important Constituents] Excise Duty Service Tax Entry No. 84, List I, Schedule VII Residuary Entry No. 97, List I, Schedule VII Taxable Event is Manufacture Taxable Event is Provision of Service Sales Tax / VAT/ CST Customs Duty Entry Tax/ Entertainme nt Tax Entry No. 54 of List II (VAT) and 92 A of List I (CST) Entry No. 83, List I, Schedule VII Entry No. 52 &62 List II, Schedule VII Taxable Event is Sale Taxable Event is Import & Export Taxable Event is Entertainment & Entry of Goods 3

Why GST Level Playing Field – Unifying Taxes Across India Avoid Cascading Effect Reduce Interface with Different Departments -Less Legal Litigations One Nation, One Tax, One Market: Enhance India’s Trade Competitiveness Transparency In Tax System Ease of Doing Business: Simplified Tax Collection System and Expand Tax Base Reduction in Collection of Revenue cost

What is GST Multiple taxes to single unified tax system Value of supply Taxable person. Registration Under GST is value added tax – Multipoint Levy Tax place of supply Input Tax Credit GST is destination based tax Point of Taxation Payment Mechanism Levied concurrently by both Central & State Supply is the basis for levy & collection Administration/ Legal Compliance

Multiple Taxes To Single Unified Tax System CENTRAL TAXES CGST STATE TAXES SGST

Multiple Taxes To Single Unified Tax System Excise Duty Service Tax Surcharge CGST Central Sales Tax Cess CVD/SAD

Multiple Taxes To Single Unified Tax System Luxury tax Vat /sales tax Entry/ octroi tax SGST Entertai nment tax Purchase tax Cess/sur charge Taxes on lottery

Proposed Indirect Tax Structure Intra State Taxable Supply (within the state) Excise and Service Tax will be known as CGST Local VAT & Other taxes will be known as SGST Inter State Taxable Supply (between the state) CST will be replaced by Integrated GST (IGST) Approx. Sum Total of CGST and SGST Custom Duty In Place of CVD and SAD, IGST will be charged Import From Outside India 9

GST -Value Added Multipoint Tax • Goods and Services Tax system that is set to be introduced, tax will be levied only on the value ADDED at each stage. • It is a single tax (collected at multiple points) with a full set-off for taxes paid earlier in the value chain.

GST -Value Added Multipoint Tax S 1 steel C 1 C 2 S 2 Car body S 3 Car maker FC

GST -Value Added Multipoint Tax S 1 steel ss Basic supply= 100 GST 18% = 18 total invoice value= 118 C 1 C 2 S 2 Car body S 3 Car maker Inward value=118 -ITC= 18 total cost= 100 value addition= 50 basic supply= 150 GST 18% =27 Total invoice value =177 Inward value= ITCtotal value= value addition= basic supply = GST 18 % = total value = FC 177 27 150 60 210 37. 80 247. 80 Tax payable=27 -ITC=18 Net Tax Paid=9 Tax payable=37. 80 -ITC=27 Net Tax Paid=10. 80 Value addition=50 GST 18 %=9 Value addition=60 GST 18 %=10. 80 Inward value 247. 80 Itc- 0 total value= 247. 880 Net Tax Paid= 18 + Net Tax Paid = 9 + Net Tax Paid = 10. 80 Total Tax Paid = 37. 80

GST is destination based tax • GST is destination based and consumption based tax. • place of consumption will decide the state that will collect tax. • The parody behind destination based of taxation is the producing/selling state gets nothing while the consuming states receive complete share of revenue Bhopal Mumbai Tax collected to Maharashtra

Levied concurrently by both Central & State Dual Levy Central CGST State SGST or Union Territory UTGST

Levied concurrently by both Central & State • In case of Intra State Transaction/ within the state , there will be two components of GST Central GST (CGST) and State GST (SGST) being levied on the value of goods and services. • Both the Centre and States will simultaneously levy GST across the value chain. • In case of inter-state transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST). • The IGST would roughly be equal to CGST plus SGST.

Supply is the basis for levy & collection • Supply is a fundamental concept in GST. • GST revolves around it. • Supply have three key elements Time of supply Place of supply Value of supply

Present Taxable Event Manufacture • Excise Duty Rendering of services • Service Tax Sale of goods • Vat/CST Proposed Taxable Event Supply • GST

CLASSIFICATION OF SUPPLY AS INTRA STATE/ INTER STATE Location of Supplier Place of Supply Same State/ Same UT Two different States/UT/ State and UT Intra State Supply Inter State Supply CGST plus SGST/ UTGST IGST

Supply - basics Supply = Goods OR Services OR • The term supply defined inclusively to inter alia includes • Specific supplies without consideration schedule-I • Activities whether goods or services- Schedule -II • Activities neither Goods nor Services Schedule-III Both

Meaning and scope of supply Supply Includes For consideration & for business Whether or not for consideration or business Without consideration Sale Permanent transfer or disposal of business assets. Barter Transfer Exchange License Rental Lease Disposal Importation of service Supply of goods or services or both between related persons in the course or furtherance of busines Supply of goods by a principal to his agent and vice versa where the agents undertakes to supply or receive goods on behalf of the principal Gifts to Employees by Employer exceeding Rs. 50, 000 Import of services

Schedule II- Services vs. Goods Transfer • Any transfer of the title in goods is a supply of goods. (G) • Any transfer of goods or of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services. (S) • Any transfer of title in goods under an agreement which stipulates that property in goods will pass at a future date upon payment of full consideration as agreed, is a supply of goods. (S)

Schedule II- Services vs. Goods Land Building • Any lease, tenancy, easement, licence to occupy land is a supply of services. (S) • Any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services. (S)

Schedule II- Services vs. Goods • Renting of Immovable property (S) • Temporary transfer or permitting the use or enjoyment of any intellectual right (S) • development, design, programming, customisation, adaptation, up gradation, enhancement, implementation of information technology software(S) • agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act. (S) • Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration (S)

Schedule II- Services vs. Goods • construction of a complex, building, civil structure or a part thereof , including a complex or building intended for sale to a buyer, wholly or partly (S) except where the entire consideration has been received after issuance of completion certificate, (GOODS) • works contract (S) “works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract

Schedule II- Services vs. Goods • supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), (S) • where such supply or service is for cash, deferred payment or other valuable consideration.

Composite supply • Supply of two or more goods or services together. • They are naturally bundled and supplied together in the ordinary course of business. • One of them is a Principal Supply. • EXAMPLEI. work contract II. Hotel service III. Tour package with food

Mixed Supply” • Mixed Supply means two 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; Examplesupply of toothpaste with brush Supplier Tax invoice –charging GST Tax rate highest of all Receiver

GST Proposed Tax Structure GST Intra State CGST Inter State SGST IGST

Point of Taxation determine-rate of tax, value and payment of tax Excise Service Tax Sales Tax GST • Point of levy - Manufacture • Point of collection – Removable of goods • Deemed to have been provided • Advance received/ services provided which ever is earlier • Transfer of title of goods • Change in ownership from one person to another person • Time of Supply • Supply is deemed to have been made

“TIME OF SUPPLY OF GOODS” (SEC -12)

TIME OF SUPPLY OF GOODS Normal Supply Continuous supply • Earliest of : • Date of removal of goods • Date on which goods made available to recipient • Date of issue of invoice /receipt of payment • Date on which receipt is shown by recipient in his books • Date of expiry of successive payment / statement • If no successive account then earliest of : • • Date of issue of invoice • • Date of receipt of payment

TIME OF SUPPLY OF GOODS Reverse charge • Earliest of : • Date of receipt of goods • Date of payment • Date of receipt of invoice • Date of debit in books of accounts Goods sent on • Earliest of : Approval • Time of supply when it is known • 6 months from date of removal

TIME OF SUPPLY OF SERVICES Normal Supply Continuous supply • Invoice within time – Earlier of issue of invoice or receipt of payment • Invoice not within time – Earlier of completion of service or receipt of payment • Other than above – Date of receipt in books of recipient • Due date of payment is ascertainable - Date on which payment is liable to made irrespective of invoice or payment • Due date is not ascertainable- Earlier of payment or invoice • Payment linked to completion of event -

TIME OF SUPPLY OF SERVICE Reverse charge Others • • • Earliest of : Date of receipt of service Date of payment Date of receipt of invoice Date of debit in books of accounts • Date of filing of return; or • Date on which CGST / SGST is paid

Nature of supply Goods Inter State Intra State Location of Supplier Place of Supply Two Different states Within the State Two Different states Within the state Services

Levy of Tax Inter State • IGST Supply Intra State • SGST Supply • CGST

Place of supply –Different situation Goods- Domestic Online Informati on and database access and retrieval services Services – Supplier or Recipient in India Outside India Goods- Importe d/ Exported Situation Services – Supplier and Recipient in India

Place of supply

Place of supply

PLACE OF SUPPLY OF GOODS Movement of goods • Place where movement of goods terminate • Location of such agent Supply on direction of Agent Supply without • Location of goods at time of delivery to recipient movement Supply on Board • Location at which goods are taken on board Conveyance

Place of supply –import/export • Location of the importer Goods imported into India • Location outside India Goods exported from India

Place of supply of service

Place of Supply of service in India directly in relation to an immovable property, • including services provided by architects, interior decorators, surveyors, engineers and oestate agents, any service provided by way of grant of rights to use immovableproperty • by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, and including a house boat or any othervessel; • by way of accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function. • any services ancillary to the services referred to in clauses (a), (b) and the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located:

Place of Supply-Restaurant • The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery The location where the services are actually performed

Place of supply of service Admission to a cultural, artistic, sporting, scientific, educational, or entertainment event or amusement park or other place Services provided by way of organization of such event in case of registered person – location of such person. Location of the event or park or other place, . other than registered personservices are actually performed.

Place of supply of service Transportation of goods including mail or courier Passenger transportation service. In case of registered person – location of such person. other than registered person – location at which the goods are handed over for their transportation. other than registered person – place where the passenger embarks on the conveyance for the continuous journey

Place of supply of service board a conveyance such as vessel, aircraft, train or motor vehicle Location of the first scheduled point of departure of that conveyance for the journey Telecommunication servicesfixed tele communication online, leased circuits internet leased circuit, cable or dish antenna; Location where the telecommunication line is installed. Location of billing address of the service receiver on record of the service provider.

Place of supply of service Banking or other financialservices including stockbroking Insurance services Location of the service receiver location of registered person Other case: location of the supplier of services • Other than registered person - location of the service receiver available

Place of supply of services Advertisement services to the central government, state government, a statutory body or a local authority Services not covered above Registered person – location of such person. Each such State – Value will be proportionate basis / reasonable basis • other than registeredperson location of the service receiver

Valuation rules • Apply to the supply of goods/service • Value of the goods/service shall be transaction value. • Transaction value shall be determined in monetary term. • The transaction value shall be accepted even where the supplier and recipient of supply are related.

Transaction value Shall Include • Amount paid by recipient instead of supplier and not included in price • Value of goods / services supplied by the recipient free of charge • Taxes and duties other than GST • Incidental costs/ expenses (such as commission, packing, royalties etc. ) • Subsidies linked to the supply • Reimbursable expenses incurred on behalf of the supplier • Discount or incentive allowed after the supply Shall not Include • Post supply discount known before supply and linked to invoices • Any discount allowed before or at the time of supply as recorded in invoice

Valuation rule applicability Valuation Rules are applicable when • Consideration not in money terms; • Parties are related or supply by any specified category of supplier; and • Transaction value declared is not reliable.

Method of determination of value • Where goods are transferred from v one place of business to another place of the same business, v The principal to an agent or from an agent to the principal, whether or not situated in the same State, the value of such supply shall be the transaction value.

Registration • Every Taxable person needs to be Registered under GST • Multiple business registration within one state to multiple business verticals may also be permitted • Some category of persons shall be required to be registered compulsorily • State wise, Business vertical wise and Voluntary Registration options are available. • Concept of ISD continue. • Single threshold limit for goods and services. i. e. Rs. 20. 00 Lakhs for normal category and Rs. 10. 00 Lakhs for Northern Eastern State incl. Sikkim. • Certain persons required to take compulsory registration. Such as Inter state supplier, Casual dealer, Person required to pay tax under RCM, Person paying TDS, Person acting agent, ISD, e-Commerce operator, Aggregator, Other persons to be notified by Government.

REGISTRATION Normal Registration Casual registration Registration Under Composition Compulsory Registration

Registration Number 15 digit Centralized PAN based One state one registration Contain state code Email id and internet bank account number

Registration structure 1 st to 2 nd digit 3 rd to 12 th digit • State code define • pan 13 th digit • Alpha numari c-1 to 9 and a to z 14 th digit • Blank for future use 15 th digit • Check digit

DOCUMENT REQUIRED FOR REGISTRATION PAN card of the Company Proof of constitution proof of place of business like rent agreement Authorized signatory

COMPULSORY REGISTRATION PERSON • • • making any inter-State taxable supply; making taxable supply; required to pay tax under reverse charge; Non resident taxable persons taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise; • Input Service Distributor, • Required to deduct tax • Required to collect tax

Compulsory registration • supply goods or services or both, other than branded through such electronic commerce operator • Every electronic commerce operator; • Every person supplying online information and data base access or retrieval services from a place outside India • Notified by the Government

Casual /non taxable person • Application to be submitted Electronically. • Tin will be issued which can be used for disposing of advance tax. • Certificate of registration can be extended.

Person not liable for registration: • supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act • An agriculturist, . • specify the category of persons , notified by the government.

Time limit • Time limit for registration Resident Person Non Resident Person • With in 30 days which become liable for registration • At least 5 days from date of commencement of business

Composition Levy • Aggregate Turnover in previous year does not exceed Rs 75 laces. Which may be extended up to Rs. 1 Cr. On recommendation of GST Council • Permission valid till turnover reaches Rs. 50 laces during the year • opted by all registered persons under same PAN • Tax would not be charged / collected from Customer • Input Credit would not be admissible • penalty applicable if scheme is wrongly availed

Composition Levy Turnover is below Rs. 75 lakhs as under: • Restaurants 2. 5% SGST 2. 5% CGST and • Manufacturers 1% SGST 1% CGST and • Other supplies 0. 5% SGST 0. 5% CGST and

Composition not applicable Supply of services. Supply of goods which are not leviable to tax under this act. Inter-State outward supplies of goods. Supply of goods through an electronic commerce. operator who is required to collect tax at source. Manufacturer of notified goods

Input Tax Credit

INPUT TAX CREDIT

Important Definition • Taxable person: Taxable person Means a person who is registered or liable to be registered under section 22 or section 24. • Input tax credit: Input tax credit Means the credit of “input tax” in terms of section 2(63).

Important Definition-Input Tax • Input tax: "Input tax" in terms of Section 2(62) in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes — integrated goods and service tax charged on import of goods — Tax payable on reverse charge basis under IGST Act/ SGST Act/ CGST Act/UTGST Act. — But excludes tax paid under composition levy.

Important Definition-Input: “Input” in terms of section 2(59) means — any goods, — other than capital goods, — used or intended to be used by a supplier — in the course or furtherance of business

Important Definition-Input Service Input service: “Input service” in terms of section 2(60) means — any service — used or intended to be used by a supplier — in the course or furtherance of business.

Important Definition-Capital Goods “Capital goods” means. – goods, the value of which is capitalised in the books of accountof the person claiming the input tax credit andwhich are used or intended to be used in the course or furtherance of business [Section 2(19)].

Input tax credit IGST INPUT CGST INPUT SGST INPUT IGST OUTPUT CGST OUTPUT SGST OUTPUT

Levy-Cenvatable against SGST-First SGST then IGST CGST- first CGST then IGST- first IGST second CGST, then SGST

Input tax credit Taxes paid on any supply of goods or services Negative list approach for non-allowance of ITC Tax paid on goods or services used for making taxable supplies by a taxable person Allowed on capital goods Proportionate credits allowedfor business and partly for non-business purposes

Eligibility and condition

Conditions for Availment and utilization of ITC Tax Invoice /debit note as prescribed Receipt of the goods/services by the recipient agent/person Tax has to be paid to the credit appropriate Government Return has been filed under the Act ITC to be availed within period of one year immediate ITC on Capital Goods without any restriction

Eligibility and conditions for taking ITC (Sec. 16) Input Tax Credit can be availed only if: • Such person possesses Tax Invoice, Debit note, Bill of Entry, • • ISD Invoice, or Invoice issued by service recipient under Reverse charge mechanism Goods/Services have been received by such person Tax charged in respect to such supply has been actually paid to the Government Return has been furnished Prescribed particulars are mentioned on the Invoice and the recipient furnishes relevant information in Form GSTR-2

Eligibility and conditions for taking ITC (Sec. 16)

Eligibility and condtions for taking ITC (Sec. 16) i

Eligibility and conditions for taking ITC (Sec. 16)

Eligibility and conditions for taking ITC (Sec. 16)

Eligibility and conditions for taking ITC (Sec. 16)

Eligibility and conditions for taking ITC (Sec. 16)

Apportionment of credit (Sec. 17)

Blocked credits [Section 17(5)] • Motor vehicles and other conveyances, except when they are used for providing the taxable supplies of further supply of vehicles/conveyances, transportation of passengers/goods, or imparting training on driving, flying, navigating such vehicles / conveyances; • Goods/services provided in relation to food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except when used for providing similar taxable supplies;

Blocked credits [Section 17(5)] • Membership of club, health and fitness center; (b) • Rent-a-cab, life insurance, health insurance (except where mandated by Government), except when they are used for providing similar services; (b) • Travel benefits extended to employees on vacation;

Blocked credits [Section 17(5)] • Works contract services supplied for construction of immovable property, other than plant and machinery, except when used for similar service; (i. e. contractor to contractor allowed) • goods/services received for construction of immovable property (excluding plant & machinery) on own account; • goods/services on which tax has been paid under Composition scheme;

Blocked credits [Section 17(5)] • Goods/services received by a non-resident taxable person except on goods imported by him; • Goods/services used for personal consumption; • Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples • Any tax not paid/credit wrongly availed by reasons of fraud/willful misstatement / suppression, or under assessment, etc.

In-eligible Input Tax Credit Life insurance, health insurance Motor vehicles with few exceptions Food &Beverages Rent a cab Outdoor catering • Health fitness center • Beauty treatment • Membership of a club Cosmetic and plastic surgery Health services

Payment Of GST • In case of intra state supply • Taxes to be paid central GST_ central government • Taxes to be paid state GST_ state government • In case of inter state supply • Tax to be paid is Integrated GST (IGST) which will have components of both CGST and SGST.

TIME LIMIT FOR PAYMENT Payment date- 20 th of the succeeding month • The normal taxpayer on Monthly basis • Composition Taxpayer on Quarterly Basis § TDS/ TCS payment on 10 th of the succeeding month on monthly basis § Credit to the account of Government will be considered as date of deposit of Tax.

Date 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

FORMS FOR PAYMENT PMT-1 Electronic Tax Liability Register of Taxpayer (Part–I: Return related liabilities) or (Part–II: Other than return related liabilities) PMT-2 Electronic Credit Ledger PMT-2 A Order for re-credit of the amount to cash or credit ledger PMT-3 Electronic Cash Ledger

Forms for Payment PMT-4 Challan For Deposit of Goods and Services Tax PMT-5 Payment Register of Temporary IDs / Un-registered Taxpayers PMT-6 Application For Credit of Missing Payment (CIN not generated)

Who is liable for payment The supplier of goods or service Importers Other notified supplier Recipient under the reverse charge mechanism. some cases, the liability to pay is on the third person • In case of E-commerce operator responsible for TCS or Government department. • • •

GSTINVOICE

Invoice supplier Type of document Supplier of goods and/or Services Tax invoice Banking company& or a financial institution& non-banking financial Tax invoice or any other document A goods transport agency Tax Invoice or any other document Input Service Distributor ISD Tax invoice Non-taxable goods Bill of supply Composition levy Bill of supply Passenger transportation service Ticket

Invoice Details to be mentioned on Tax invoice • Name, address and GSTI No of the supplier; • serial number; • date of issue; • • place of delivery; Name, address and GSTIN of the Input Service Distributor; the credit as passed on by supplier serial number and date of invoice issued by such supplier; Name, address and GSTIN of the recipient amount of the credit distributed; signature or digital signature of the supplier

Condition for issue invoice • • • A registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees A registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed Invoice Issued within 30 days(45 days in case of banks and NBFCs) of supply of services. In case of continuous supply where due date can be ascertained, then 30 days from such due date In case of continuous supply where due date cannot be ascertained, then 30 days from actual payment date

BILL OF SUPPLY • Issued by the supplier • Issue in case of non taxable supply • Any tax invoice or any other similar document issued under any other Act for the time being in force in respect of any non-taxable supply shall be treated as bill of supply

voucher Receipt voucher • Provided that where at the time of receipt of advance, Ø The rate of tax is not determinable, the tax shall be paid at the rate of 18 % Ø The nature of supply is not determinable, the same shall be treated as inter-State supply • Refund voucher- in case of Refund • Payment voucher- in case of payment

Revised tax invoice and credit or debit notes • The word “Revised Invoice”, wherever applicable, indicated prominently; • Registered person may issue revised tax invoices in respect of taxable supplies • The registered person may issue a consolidated revised tax invoice in respect of all taxable supplies made to a recipient who is not registered under the Act during such period: • in case of inter-State supplies, where the value of a supply does not exceed two lakh and fifty thousand rupees, a consolidated revised invoice may be issued separately in respect of all recipients located in a State, who are not registered under the Act. • Any invoice or debit note issued in pursuance of any tax payable in accordance with the provisions of section 74 or section 129 or section 130 shall prominently contain the words “INPUT TAX CREDIT

Time limit of tax invoicesupply of goods Supply of goods(before or at the time of) Removal of goods Delivery of goods

Time limitsupply of service Supply of service (before or after ) Provision of service Time limit prescribed in this behalf

Manner of issuing invoice (1), in case of supply of goods, (a) ORIGINAL FOR RECIPIENT; (b) DUPLICATE FOR TRANSPORTER (c) TRIPLICATE FOR SUPPLIER. (2) in case of supply of services, : (a) ORIGINAL FOR RECIPIENT; (b) DUPLICATE FOR SUPPLIER. • The Invoice Reference Number shall be valid for a period of 30 days from the date of uploading.

GST RETURN

FORMS FOR RETURN. Return For What to file By Whom? By When? GSTR-1 Details of outward supplies of taxable goods and/or services effected Registered taxable supplier 10 th of next Month GSTR-2 Details of inward supplies o taxable goods and/or services effected claiming input tax credit. Registered taxable Recipient 15 th of next Month GSTR-3 Monthly return on the basis of Registered taxable finalization of details of outward person supplies and inward supplies along with the payment of amount of tax. GSTR-4 Quarterly return for compounding taxable person. Composition Supplier 20 th next Month 18 th of next Month

FORMS FOR RETURN GSTR-5 GSTR-6 GSTR-7 GSTR-8 Return for Non-Resident foreign taxable person Return for Input Service Distributor Return for authorities deducting tax at source. Details of supplies effected through e-commerce operator and the amount of tax collected GSTR- 9 Annual Return GSTR-10 Final Return Non resident taxable person 20 th of the next month input service distributer 13 th of the Next month Tax Deductor 10 th of the Next month E-commerce Operator 10 th of the Next month Registered Taxable 31 st dec next person financial year taxable person Within three month of the date of cancellation order, whichever is later

FORM GSTR-1 details of outward supplies • invoice wise details of all Ø inter-State and intra-State supplies made to registered persons; Ø inter-State supplies with invoice value more than two and a half lakh rupees made to unregistered persons; • consolidated details of all Ø intra-State supplies made to unregistered persons for each rate of tax; and Ø State wise inter-State supplies with invoice value upto two and a half lakh rupees made to unregistered persons for each rate of tax;

GSTR-2 Details of inward supplies • Every registered person required to furnish the details of inward supplies of goods or services or both received during a tax period • specify the inward supplies in respect of which he is not eligible, either fully or partially, for input tax credit GSTR-2 • Declare the quantum of ineligible input tax credit on inward supplies which is relatable to non-taxable supplies • shall include, inter alia, Ø Invoice wise details of all inter-State and intra-State supplies received from Ø Registered persons or unregistered persons; Ø Import of goods and services made; and Ø Debit and credit notes, if any, received from supplier.

GSTR – 9 : Annual Return 31 st December of the next Financial Year: • Details of expenditure giving for goods & services • Details of income giving for goods & services • Return reconciliation Statement • Provision for Profit as Per the Profit and Loss Statement, Gross Profit , Profit after Tax Net Profit.

GSTR– 10 : Final Return Due Date within 3 months of surrender or cancellation of registration • Provision for date of surrender and details of cancellation order • Details of closing stock held on the date of cancellation • Details of amount of tax payable on closing stock

Late fees for filing of return Filing of annual return Filing of return other then annual return Rs. 100 day per Rs. 100 per day Maximum upto 0. 25% aggregate turnover Maximum upto rs. 5000

BRANCH TRANSFER AND GOODS SENT ON APPROVAL BASIS Treatment of Branch Transfers : Treatment under SGST Amount of input tax credit reversed prior to the appointed day shall not be admissible as credit of input tax under this Ac t Goods sent on Approval Basis : No tax payable Goods returned within 6* months from appointed day Goods returned post 6* months from

IMPORT / INTERSTATE SUPPLY ON OR AFTER APPOINTED DATE Transaction Supply made on or after appointed date Liability of Tax payment under GST regime Liable to Tax Transaction initiated on or before appointed Liable to pay date on which partial tax has been paid in earlier law Transaction initiated on or before appointed not liable for tax date on which full tax has been paid in earlier law

Accounts /records Keep and maintain following records-Maintained in electronically • • Production or manufacture of goods Inward supply of goods/service Outward supply of goods /service Stock of goods Input tax credit Tax payable or paid Other document

Generation and maintenance of electronic records • Proper electronic back-up of records shall be maintained and preserved in such manner • The registered person maintaining electronic records shall produce, on demand, • passwords of such files where necessary for access and any other information which is required for such access along with sample copy in print form of the information stored in such files.

Accounts/ Records • If more than one place of business account relating to each palace of business shall be kept. • Records by non-registered person Every owner or operator of warehouse or gdown or any other place used for storage of goods shall maintain records of consigner, consignee and other relevant details of the goods as may be prescribed.

Period of Retention of account Normal situation Appeal /revision 72 months from the due date of filing of return 1 year after final disposal of appeal

Assessment By Tax payers Self assessment By Authorities PROVISIONAL ASSESSMENT SUMMURY assessment Scrutiny of return Best Judgement

Assessment Provisional Assessment • Unable to determine the value of goods and/ or services. • The bond needs to be executed in prescribed format. • With in a period of 6 months pass the final assessment order. • Additional liability to be paid.

Scrutiny of Returns: • The returns will be scrutinized by the proper officer • Proper officer will inform the discrepancies and seek explanation from taxable person. • If explanation found acceptable, no further action shall be taken.

Audit Departmental Audit • Business audit will be carried out by department at predefined frequency • Minimum 15 days notice will be given to the taxable person • Audit to be completed with in period of 3 months • Audit findings to be shared within 30 days of conclusion of the audit

Special Audit- • The report should be submitted with 90 days • On the basis of finding of the report appropriate action will be initiated for recovery of dues • The expenses will be borne by Commissioner • Proper officer may initiate action under section 66 or 67 if audit results in tax not paid or short paid or erroneously refunded.

Tax deducted at sources TDS on supply of notified goods/services Persons responsible for deducting tax • TDS will be applicable –exceeds rupees 2. 5 lacs– • TDS will be deducted @ 1% • Tax deducted to be deposited with in 10 days