PRESENTATION BY CA ASHOK BATRA B Com Hons

PRESENTATION BY-: CA. ASHOK BATRA B. Com (Hons), LL. B, FCA.

1 INTRODUCTION

SALIENT FEATURES OF GST � The GST would be applicable on the supply of goods or services as against the present concept of tax on the manufacture and sale of goods or provision of services. It would be a destination based consumption tax. � It would be a dual GST with the Centre and States simultaneously levying it on a common tax base. � The GST would apply to all goods other than alcoholic liquor for human consumption and five petroleum products, viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel. It would apply to all services barring a few to be specified. � The CGST and SGST would be levied at rates recommended by the GST Council. � An Integrated GST (IGST) would be levied and collected by the Centre on inter-State supply of goods and services. Accounts would be settled periodically between the Centre and the States to ensure that the SGST portion of IGST is transferred to the destination state where the goods or services are eventually consumed. � Exports shall be treated as zero-rated supply. However, credit of the input tax shall be admissible to exporters and the same can be claimed as refund by them. � Import of goods and services would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties. BATRA & 3 A. K. ASSOCIATES

Uniform Structure, Design & Compliance System Impact of GST on Working Capital Requirement Changed system of Input Tax Credit No Cascading effect Optimum and efficient utilization of resources Helps in balanced growth by providing revenue to backward states Up gradation of Software Increase in cost of procurement of services Training of professional and department officials will be required BATRA & 4 A. K. ASSOCIATES

TAXES SUBSUMED Special Additional Duty of Customs (SAD) Service Tax State VAT Luxury Tax Additional Duties of Customs (commonly known as CVD) Entry Tax Duties of Excise (Medicinal and Toilet Preparations) Central Excise duty BATRA & 5 A. K. ASSOCIATES Central Sales Tax Octroi GST Entertainment Tax

2

Wi Passage of GST Law by States 7 A. K. BATRA & ASSOCIATES

GST COUNCIL [SECTION 2(34) OF GST ACT, 2016] Section 2(34) of GST Act, 2016 defines ‘Council’ as“the Goods and Service Tax Council established under Article 279 A of the Constitution. ” ARTICLE 279 A The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the Goods and Services Tax Council (GSTC). GSTC shall consists of following members- Chairperson- Union Finance Minister Members from the Central Government- Union Minister of State in charge of Revenue or Finance Members from State Government- Minister in charge of Finance or Taxation or any other Minister nominated by each State Government. Vice-Chairperson of the council- to be chosen by members from the state amongst themselves for such period as they may decide. BATRA & 8 A. K. ASSOCIATES

3 LEVY OF TAX UNDER GST

LEVY AND COLLECTION OF CENTRAL/STATE GOODS AND SERVICES TAX [SECTION 7 of CGST ACT, 2016 ] CGST/SGST shall be levied • on all intra-State supplies of goods and/or services • at the rate specified in the schedule to be notified • and collected in such manner as may be prescribed [Section 7(1)] CGST/SGST shall be paid by every taxable person. [Section 7(2)] The Central/State Government on the recommendation of the Council, may specify categories of supply of goods and/or services on which the tax shall be payable on Reverse Charge Basis. [Section 7(3)] BATRA & 10 A. K. ASSOCIATES

LEVY AND COLLECTION OF INTEGRATED GOODS AND SERVICES TAX [SECTION 4 of IGST ACT, 2016 ] IGST shall be levied • on all inter-State supplies of goods and/or services • at the rate specified in the schedule to be notified • and collected in such manner as may be prescribed [Section 4(1)] IGST shall be paid by every taxable person. [Section 4(2)] The Central/State Government on the recommendation of the Council, may specify categories of supply of goods and/or services on which the tax shall be payable on Reverse Charge Basis. [Section 4(3)] BATRA & 11 A. K. ASSOCIATES

INTRA-STATE/INTER-STATE SUPPLIES Inter-State/Intra-state supplies has been defined in Section 3 and 3 A respectively of IGST Act, 2016 BATRA & 12 A. K. ASSOCIATES As per Section 3 of IGST Act, 2016, inter-state supply of goods/services means • any supply • where the location of the supplier • and the place of supply • are in different states • As per Section 3 A of IGST Act, 2016, intra-state supply of goods/services means • any supply • where the location of the supplier • and the place of supply • are in the same state To determine the exact place of supply, provisions of Section 5 (Place of Supply of Goods) & Section 6 (Place of Supply of Services) of IGST Act, 2016 have to be referred

MEANING AND SCOPE OF SUPPLY [SECTION 3 OF CGST ACT, 2016] Supply includes Whether or not In the course or furtherance of business and for a consideration or not consideration [Section 3(1)(b)] [Section 3(1)(a)] All forms of supply such as: • Importation of service • Sale • Barter • Transfer • Exchange • License • Rental • Lease • Disposal Note: None of the aforesaid term has been defined in this Act. Supply without consideration [Section 3(1)(c)] read with Schedule I] • Permanent transfer/disposal of business assets • Temporary application of business assets to a private or non-business use • Services put to a private or non-business use • Assets retained after deregistration • Supply of goods and/ or services by a taxable person to another taxable or nontaxable person in course of business Where a person, acting as an agent, 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. [Section 3(2 A)] The supply of any branded service by an aggregator, as defined in section 43 B, under a brand name or trade name owned by him shall be deemed to be a supply of the said service by the said aggregator. [Section 3(4) ] BATRA & 13 A. K. ASSOCIATES Cont…

Matter mentioned in Schedule II [Section 3(2) of CGST Act, 2016] 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. [Section 3(3) of CGST Act, 2016] Section 43 B of CGST Act, 2016 (Definitions) (a) 'aggregator' means a person, who owns and manages an electronic platform, and by means of the application and a communication device, enables a potential customer to connect with the persons providing service of a particular kind under the brand name or trade name of the said aggregator; BATRA & 14 A. K. ASSOCIATES (b) 'brand name or trade name' means, a brand name or a trade name, whether registered or not, that is to say, a name (c) 'branded Services' or a mark, such as an invented word or means services which writing, or a symbol, monogram, logo, are supplied by an label, signature, which is used for the electronic commerce purpose of indicating, or so as to operator under its indicate a connection, in the course of own brand name or trade name, whether trade, between a service and some registered or not; other person using the name or mark with or without any indication of the identity of that person;

GIST OF SCHEDULE – II – GOODS VS. SERVICE Service Goods BATRA & 15 A. K. ASSOCIATES • Transfer of goods without transfer in title thereof [Item No. 1(2)] • Transfer of business assets for private use with or without consideration [Item No. 4(2)] • Lease, tenancy, license to occupy land [Item No. 2(1)] • Lease or letting out of commercial or residential building [Item No. 2(2)] • Treatment or process which is applied to another person’s goods (AUTC- with or without goods being removed) [Item No. 3] • Specified list of services including Works contract and supply of food [Item No. 5] Transfer of title in goods [Item No. 1(1)] 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. [Item No. 1(3)] Supply of goods by unincorporated association of body to their members for consideration [Item No. 6(a)] Transfer of business assets except transfer made for the private use with or without consideration [Item No. 4]

TAXABLE PERSON [SECTION 9 OF CGST ACT, 2016] Taxable means: person • a person who carries on any business at any place in India (including J& K) or in respective state • and • is required to be registered under Schedule. III of the CGST Act, 2016 [Schedule III deals with liability to be registered] BATRA & 16 A. K. ASSOCIATES However, registered person specified under paragraph 1 of Schedule III shall not be considered as taxable person until his aggregate turnover in a financial year exceeds Rs. Ten Lakh (Rs. Five lakh for NE states) The CG, a SG or any Local Authority [LA] except for the activities mentioned in Schedule IV[Activities or transactions for which the CG, a SG or any LA shall not be regarded as a taxable person]

EXCLUSION FROM TAXABLE PERSON [SECTION 9 OF CGST ACT, 2016] Taxable person shall not include: An Agriculturist A Registered person specified under paragraph 1 of Schedule III shall not be considered as taxable person until his aggregate turnover in a financial year exceeds Rs. Ten Lakh (Rs. Five lakh for NE states) CG, a SG or any local authority in respect of activities mentioned in Schedule IV. Any person providing services as an employee to his employer • In the course of his employment, or • In relation to his employment, or • By any other legal ties creating the relationship of employer and employee as regards working conditions, remunerations and employer’s liability Any person exclusively engaged in non-taxable supplies Any person liable to pay tax under Reverse Charge receives services for personal[nonbusiness] use below the limit which is to be prescribed BATRA & 17 A. K. ASSOCIATES

SUPPLY CHAIN UNDER GST Outside India Overseas Supplier India Other states Delhi Sale Distributor Warehouse BCD - Cost Trf in Delhi Import Purchase CGST + SGST CGST+SGST Supplier Overseas Customer BATRA & 18 A. K. ASSOCIATES Export (Zero Rated) Transfer IGST Warehouse Purchase IGST - Credit IGST Factory Sale CGST + SGST Supplier

4 COMPOSITION LEVY

COMPOSITION LEVY [SECTION 8 OF CGST ACT, 2016] APPLICABILITY Subject to such conditions and restrictions as may be prescribed, the proper officer of CG/SG on the recommendation o the council may, permit a registered taxable person whose aggregate turnover during the Financial Year does not exceed Rs. 50 Lacs RATE As may be prescribed, but not less than 1% of the turnover (not aggregate turnover) during the year NOT APPLICABLE Taxable Person effecting any Inter- state supply. Supply of goods and/or services on which tax is payable on reverse charge basis All registered taxable person bearing same PAN do not opt for composition levy. BATRA & 20 A. K. ASSOCIATES

AGGREGATE TURNOVER [Section 2(6) of CGST ACT, 2016] "Aggregate Turnover" means the aggregate value of all Taxable • • Date of expiry of successive payment / statement Non-taxable supplies • If no successive account then earliest of : • • Date of issue of invoice Exempt supplies and • • Date of receipt of payment Exports of goods and/or services • To be computed on all India basis , and • Excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act Explanation- Aggregate Turnover does not include: • Value of supplies on which tax is paid under reverse charge • Value of inward supplies BATRA & 21 A. K. ASSOCIATES

5 PLACE OF SUPPLY

PLACE OF SUPPLY OF GOODS [SECTION 5 OF IGST ACT, 2016] Section 5 Particulars Place of supply 5(2) Supply involves movement of goods, whether Location of the goods at the time at which the by the supplier or the recipient or by any other movement of goods terminates for delivery to the person recipient. Supply on Board 5(2 A) The goods are direction of Third delivered by the supplier to a The principal place of business of third person. Conveyance Person recipient or any other person, on the direction • As per law of • Place where of a third person, whether acting • as Location of an agent • Location at movement of goods at time Parliament or otherwise, before or during movement of • Location of which goods of delivery to based on Third goods, either by way of transfer of documents are taken on terminate of title to the goods or otherwise recipient Council’s Person board suggestion 5(3) Movement of Supply does not involve movement of goods, Location of such goods at the time of the delivery Supply without Others to the recipient. goodswhether by the supplier or the recipient movement 5(4) The goods are assembled or installed at site 5(5) The goods are supplied on board a Location at which such goods are taken on board. conveyance, such as a vessel, an aircraft, a train or a motor vehicle Where the place of supply of goods cannot be determined in terms of sub section (2), (3), (4) and (5), the same shall be determined by law made by the Parliament in accordance with the recommendation of the Council. 5(6) BATRA & 23 A. K. ASSOCIATES The place of such installation or assembly.

• Place where movemen t of goods terminate Supply on direction of Third Person • Location of Third Person Supply without movement Movement of goods Sec 5(2) BATRA & 24 A. K. ASSOCIATES • Location of goods at time of delivery to recipient Sec 5(2 A) Sec 5(3) Goods assembled or installed at site • The place of such installation or assembly Sec 5(4) Others • Location at which goods are taken on board Supply on Board Conveyance Sec 5(5) • As per law of Parliament based on Council’s suggestion Sec 5(6)

PLACE OF SUPPLY OF SERVICES [SECTION 6 OF IGST ACT, 2016] On the basis of. A) BUSINESS TO BUSINESS B) BUSINESS TO CUSTOMER SECTION PARTICULARS PLACE OF SUPPLY 6(2) & (3) General Rule 6(6) Training service, Transportation of goods including mail & courier 6(8) a) Organization of a cultural, sporting, educational, entertainment event etc. b) Services ancillary to Organization of above events or assigning of sponsorship of any of the above events Supply to Registered Person- Location of such person Supply to any other person- Location of recipient of services where the address is on record; and in other cases location of supplier of service Supply to Registered Person- Location of such person Supply to any other person- Location where services were actually performed Supply to Registered Person- Location of such person Supply to any other person- Location where the event is actually held Event held in more than one state and a consolidated amount is being charged for supply of such services- 6(9) Goods Transportation Service Including mail or courier 6(14) Insurance Services BATRA & 25 A. K. ASSOCIATES Supply to Registered Person- Location of such person Supply to any other person- Location at which goods are handed over for their transportation Supply to Registered Person- Location of such person Supply to any other person- Location of recipient of services where the address is on record Contd….

6(10) Passenger Transportation Service Supply to Registered Person- Location of such person Supply to any other person- Location where the passenger embarks on the conveyance for the continuous journey. Where right to passage is given for future use and point of embarkation is not known, place of supply of such services shall be determined as per General Rule. The return journey shall be treated as a separate journey even if the right to passage for onward and return journey is issued at the same time. OTHERS 6(4) Immovable property Location of such property 6(5) Restaurant, Personal Grooming, Fitness, health services etc. Location where the services are performed 6(7) Admission to a cultural, Sporting event etc. Location where event is actually held 6(11) Services provided on board a conveyance Location of first scheduled point of departure of that conveyance 6(13) Banking & other financial services Account linked services- Location of recipient as per records of including stock broking the supplier of services Non account linked services- Location of supplier of services BATRA & 26 A. K. ASSOCIATES Contd….

6(12) 6(15) Telecommunication services, Services through fixed telecommunication line, leased including data transfer, broadcasting, circuits, internet based circuits, cable or dish antenna- DTH Location of such fixed telecommunication line, leased circuits, internet based circuits, cable or dish antenna Mobile/Internet connection on post paid basis- Location of billing address of recipient of services on records of supplier of services Mobile/Internet connection on pre- payment basis through voucher or any other means paid- Location where pre-payment is received or voucher is sold If pre-paid service is availed or recharge is made through internet banking or other electronic mode- Location of recipient of services as per the records of the supplier of services Advertisement Services to Place of supply shall be location of such states and the CG/SG/Statutory Body/Local Authority value of such supplies specific to each state shall be in meant for identifiable states proportion to amount attributable to service provided by way of dissemination in the respective states as may be determined in terms of the contract or agreement entered into this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed. BATRA & 27 A. K. ASSOCIATES

6 TIME OF SUPPLY

TIME OF SUPPLY OF GOODS [SECTION 12 OF CGST ACT, 2016] Normal Supply [Sec 12(2)] Earliest of : Date of removal of goods (when goods are required to be removed) Date on which goods made available to recipient (when goods are not required to be removed) Date of issue of invoice Date of receipt of payment Date on which recipient shows the receipt of goods in his books Continuous • Date of expiry of successive payment / statement • If no successive account then earliest of : supply • Date of issue of invoice [Sec 12(3)] • Date of receipt of payment Reverse charge [Sec 12(5)] Goods sent on approval [Sec 12(6)] BATRA & 29 A. K. ASSOCIATES Earliest of : • Date of receipt of goods • Date of payment • Date of receipt of invoice • Date of debit in books of accounts Earliest of : • Time of supply when it is known • 6 months from date of removal

TIME OF SUPPLY OF SERVICES [SECTION 13 OF CGST ACT, 2016] Normal Supply [Sec 13(2)] Continuous supply [Sec 13(3)] Reverse charge [Sec 13(5)] Others [Sec 13(7)] BATRA & 30 A. K. ASSOCIATES 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 completion 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

7 VALUATION OF SUPPLY

Value of supply Transaction Value, subject to • Unrelated Parties • Price is sole consideration 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 or at reduced cost • Royalties and License fees related to and as a condition to supply • Taxes and duties other than SGST , CGST or IGST • 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 BATRA & 32 A. K. ASSOCIATES Cont…

In following cases value of supply shall be determined as prescribed in the GST Valuation Rules [Section 15(4)] • Consideration paid/payable is not money, wholly or partly • Supplier and recipient of supply are related • If there is a reason to doubt the truth or accuracy of the transaction value declared by the supplier • Business transaction undertaken by a pure agent, money changer, insurer, air travel agent and distributor or selling agent of lottery • Such other supplies as my be notified by Government on recommendation of the council. • In the aforesaid cases, value shall be determined by following rules of GST Valuation Rules, 2016 (sequentially): • Comparison Method (Rule 4) • Computed Value Method (Rule 5) • Residual Method (Rule 6) BATRA & 33 A. K. ASSOCIATES

8 INPUT TAX CREDIT (ITC)

INPUT TAX CREDIT IN RESPECT OF INPUTS HELD IN STOCK AND INPUTS CONTAINED IN SEMI-FINISHED OR FINISHED GOODS HELD IN STOCK [SECTION 16 OF CGST ACT, 2016] Person Eligible Person who has applied for registration within 30 days from the date he become liable and has been granted certificate of registration Point in Time On the day immediately preceding the date from which he becomes liable to pay tax Entitlement of Credit of input tax in respect of input held in Person who has taken On the day Immediately stock and Inputs contained in Voluntary Registration preceding the date of Semi Finished or Finished u/s. 19(3) of GST Act registration Goods Registered Taxable person On the day immediately ceases to pay tax u/s. 8 preceding the date from i. e. Composition Levy which he becomes liable to pay tax u/s. 7 Note: In above three cases, a taxable person shall not be entitled to take input tax credit in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock after the expiry of 1 year from the date of issue of tax invoice relating to such inputs. BATRA & 35 A. K. ASSOCIATES

INPUT TAX CREDIT: EXCLUSIONS Input tax credit will not be available in respect of the following: A. MOTOR VEHICLES However credit in respect of motor vehicles would be available in the following cases: When motor vehicles are supplied in usual course of business or Motor vehicles used for providing the following taxable services: � transportation of passengers, � transportation of goods, or � imparting training on motor driving skills B. GOODS AND SERVICES PROVIDED IN RELATION TO: food and beverages outdoor catering beauty treatment health services cosmetic and plastic surgery membership of a club health and fitness centre life insurance health insurance travel benefits extended to employees on vacation such as leave or home travel concession when such goods and services are used primarily for personal use or consumption of any employee BATRA & 36 A. K. ASSOCIATES Cont…

INPUT TAX CREDIT: EXCLUSIONS C. Goods and/or services acquired by the principal in the execution of works contract when such contract results in construction of immovable property, other than plant and machinery; D. Goods acquired by a principal, the property in which is not transferred (whether as goods or in some other form) to any other person, which are used in the construction of immovable property, other than plant and machinery; E. Goods and/or services on which tax has been paid under section 8 (i. e. Composition Levy; and F. Goods and/or services used for private or personal consumption, to the extent they are so consumed. BATRA & 37 A. K. ASSOCIATES

CONDITIONS FOR CLAIMING INPUT TAX CREDIT No registered taxable person (RTP) shall be entitled to the credit of any input tax unless following four conditions are satisfied: �RTP is in possession of a tax invoice, debit note, supplementary invoice or such other taxpaying document as prescribed, issued by registered supplier �RTP has received the goods or services �The tax charged in respect of such supply has been actually paid by the supplier to the credit of the appropriate government, either in cash or utilization of input tax credit admissible in respect of the said supply �RTP has furnished the return under section 27 It has further been stated that where the goods against an invoice are received in lots or installments, the registered taxable person shall be entitled to the credit upon receipt of the last lot or installment. BATRA & 38 A. K. ASSOCIATES

RESTRICTIONS FOR CLAIMING INPUT TAX CREDIT � Time Limit for claiming Credit A taxable person shall not be entitled to take input tax credit in respect of any supply after the earlier of following two events: 1. filing of return under section 27 for the month of September following the end of financial year to with such invoice pertains; or 2. filing of the relevant annual return � Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act 1961, the input tax credit shall not be allowed on the said tax component. BATRA & 39 A. K. ASSOCIATES

UTILISATION OF INPUT TAX CREDIT The amount available in electronic credit ledger may be used for making any payment towards tax payable under the act�In such manner �Subject to such conditions; and �Within such time as may be prescribed [Section 35 of GST Act, 2016] Order of Preference for using ITC relating to different taxes i. e. IGST/ SGST/ CGST: The taxable person may have ITC on account of various taxes such as IGST/ CGST/ SGST – following is the table that summarizes the order of preference for using the credit available on account of different taxes Section Type of credit First Second Third preference Sec. 35 of GST Act IGST CGST Sec. 35 of GST Act CGST IGST - Sec. 35 of GST Act SGST IGST - BATRA & 40 A. K. ASSOCIATES Comments Credit pertaining to CGST cannot be used for payment of SGST and viceversa

9 REGISTRATION, PAYMENT, RETURN & REFUND UNDER GST

REGISTRATION [SECTION 19 READ WITH SCHEDULE III OF GST ACT, 2016] State wise, Business vertical wise and Voluntary Registration options are available. Concept of ISD continue. Liability to get Registered: Any person shall be required to take registration if aggregate turnover in a financial year exceeds: A) 4 Lacs for Suppliers in North Eastern states(incl. Sikkim) B) 9 Lacs for Suppliers in Other States COMPULSORY REGISTRATION WITHOUT THRESHOLD LIMIT • Person making Inter-State taxable supply • Casual taxable person • Person required to pay tax under Reverse Charge • Non- Resident taxable person • Person required to deduct tax u/s 37 • Person supplying goods or services on behalf of other registered taxable person • Input service distributor • Person supplying goods or services, other than branded services, through electronic commerce operator • Electronic commerce operator • Aggregator who supplies services under his brand name or his trade name • Other persons or class of persons as may be notified BATRA & 42 A. K. ASSOCIATES

PAYMENT OF TAX [SECTION 35 OF GST ACT, 2016] Liability to pay Tax: Any person shall be liable to pay tax if aggregate turnover in financial year exceeds: 5 Lakh for person in North Eastern state 10 Lakh for persons in Other States Mechanism of payment of tax under GST: Deposit made towards tax, interest, penalty, fee or any other amount deposited shall be credited to Input tax credit as self assessed in the return shall be credited to A. K. BATRA & 43 ASSOCIATES Electronic cash ledger To be used to made payment towards tax, interest, penalty, fee or any other amount deposited Electronic credit ledger To be used to made payment towards tax to be deposited as per the act or rules

RETURNS [SECTION 25 to 27 of GST ACT, 2016] • Place where movement of goods terminate Movement of goods Supply on direction of Third Person • Location of Third Person Supply on Board Conveyance • Location of goods at time of delivery to recipient • Location at which goods are taken on board Supply without movement • As per law of Parliament based on Council’s suggestion Others 3 Note: Casual/Non-resident Taxpayers (other than foreigners) would have to file GSTR-1, GSTR-2 and GSTR-3 for the period for which they have obtained registration. BATRA & 44 A. K. ASSOCIATES

REFUND [SECTION 38 of GST ACT, 2016] Refund provisions have been simplified and made more taxpayer friendly. Some of the important provisions of the Model GST Law are as under: Time limit for claiming refund shall be two years. Refund of input tax credit shall be allowed only in two cases: In case of exports or The credit accumulation is on account of inverted duty structure (i. e. where the tax rate on input is higher than that on output) Refund claim along with documentary evidence or other evidence certifying that the incidence of tax and interest has not been passed Refund shall be granted within 90 days from the date of receipt of complete application. Interest is payable if refund is not sanctioned within the stipulated period of 90 days. If the refund claim is less than Rs. 5 lakhs, there is no need for the claimant to furnish any documentary evidence that he has not passed on the incidence of tax to any other person. Only a self-certification to this effect would suffice. In case of refund claim on account of exports, 80% of the claim shall be paid immediately on a provisional basis without verification of documentary evidence. No refund if the amount is less than Rs. 1, 000/BATRA & 45 A. K. ASSOCIATES

10 TRANSITIONAL PROVISIONS

MIGRATION OF EXISTING REGISTERED TAX PAYERS Issuance of Provisional Certificate of Registration (RC) Validity of RC for 6 months or extended period Furnish information as may be prescribed Final Registration Certificate to be issued if information found adequate Cancellation of provisional RC on failure BATRA & 47 A. K. ASSOCIATES

CARRY FORWARD OF CENVAT CREDIT Amount of CENVAT Credit carried forward to be allowed to registered taxable person under GST • RTP shall be entitled to take credit of the amount of eligible CENVAT credit/VAT credit carried forward in return filed under earlier law for the period ending immediately prior to appointed day Amount of un-availed* CENVAT credit of Capital goods to be allowed to registered taxable person under GST • RTP shall be entitled to take credit of the Un-availed CENVAT credit not carried forward in return filed under earlier law for the period ending immediately prior to appointed day *Un-availed amount of CENVAT credit in respect of Capital goods = Aggregate amount of CENVAT Credit (-) Credit already availed in respect of capital goods in earlier return BATRA & 48 A. K. ASSOCIATES