Goods and Service Tax is:
Multi Stage Tax
Value Added Tax
Destination Based Tax
MULTI STAGE TAX
Multiple Stages and item goes from manufacture to final sale
Buying of Raw Materials
Production or Manufacture
Warehousing of Materials
Sale of product to Retailer
Retailer Sells to end Consumer
GST will be levied on each of these
stages.
VALUE ADDEDTAX
Considering and example of manufacturing of shirt
Shirt
Buying Yarn
Attach Label and Tags to
Each Shirt
Packing of Shirts and Final
Selling
GST will be levied on these value additions – the monetary worth
added at each stage to achieve the final sale to the end customer
DESTINATION BASED TAX
Goods and Service Tax will be collected by the
State where the final sale takes place.
Example:
Assume that the entire manufacture process is happening
in Rajasthan and the final point of sale is in Karnataka.
GST will be collected by Karnataka.
Electronic Mode
PAN Based Registration
Registration if turnover more than 40 lacs
Option for Voluntary Registration
Set of auto-populated Monthly Returns and Annual Returns
GST Practitioners for assisting filing of returns
Tax can be deposited by internet banking, NEFT/RTGS/Debit
Card/Credit Card and Over the Counter
Transitional provisions for smooth transition of existing
tax payers to GST regime
Special procedures for job work
Creation of Unified National Market
Common Market
Common Tax Rates
Integrated Economy at National Level
Mitigation of ill effects of Cascading
Subsuming most of the Central and State taxes
Elimination of multiple taxes and double taxation
Leviable uniformly on goods and services
Boost to ‘ Make in India’ Initiative
Indian Goods Competitive in National and International Market
Increase in Government Revenue
Meaning & Scope of Supply can be understood in terms of 6
parameters, which can be adopted to characterize a transaction
as supply:
Supply of Goods
or Services
Should be a Made for a
Taxable Supply Consideration
Made in the
Within a Taxable course of
Territory furtherance of
Business
Made by a
Taxable Person
PLACE OF SUPPLY IS USED TO DETERMINE WHETHER A
SUPPLY IS
Inter-state supply
Intra-State supply
Export of Goods/Service or Not
IT DEPENDS UPON:
Location of Provider
Location of Receiver
Place where the Supply is made
Persons registered under existing indirect tax laws like Service
Tax, Excise, Customs, etc.
Persons with Aggregate Turnover exceeding Rs. 40 lakhs (Rs. 20
lakhs in special category states)
Persons making interstate supplies
Casual and non-resident suppliers
Voluntary Registration below threshold
Input Service Distributor
Electronic Commerce Operator
TURNOVER BASED EXEMPTION
NOT ALLOWED TO
INTER STATE SUPPLIERS PERSONS LIABLE TO
OF GOODS/SERVICES PAY UNDER REVERSE
CHARGE
Registration is :
State Wise Separate
PAN based only
Registration
One per state only Details of
except in case of Principal/Additional
business verticals/SEZ Places of Business to
units be given
Applicability- within 30 days of commencement
of taxable supply of goods/services
1. Proof of Constitution of Business
•In case of Partnership firm: Partnership Deed of
Partnership Firm.
•In case of Others: Registration Certificate of the Business
Entity
2. Photographs of Proprietor/Partners/HUF
Kartha/Managing Director /Managing Trustee/Members of
Managing Committee /CEO or his/her equivalent
3. Proof of Appointment of Authorized Signatory
Power of Attorney or Letter of Authorization or copy of
Resolution of the Managing Committee or Board of
Directors
4. Proof of Principal Place of Business
5. Bank Accounts: Cancelled Cheque/ Bank Statement of the
concerned Bank with the Bank stamp/ First page of the
Passbook
Tax
Invoice
Bill of
Supplly
Delivery Receipt
Challan Voucher
HSN/SAC Code is not mandatory for a
taxable person if the aggregate
turnover is less than 1.5 Crores
Type of When to issue
invoice/doc
ument
Bill of supply Supply of exempted goods or
services or under composition levy
Receipt Receipt of advance payments
voucher
Delivery Issued, in lieu of invoice, in case of
challans transfer of goods within the same
state to another Branch
MEANING
Credit to a Registered Person
Of Central Tax, State Tax or Integrated Tax
Charged on any supply of goods or services or both made to
him
Used in the course of furtherance of business
MANNER OF UTILISATION
Aggregate Turnover exceeding threshold limit
Casual Taxable person/Non Resident Taxable Person
Supplier of services, other than restaurant service
Persons making any interstate outward supplies of goods
Supplier purchasing goods from unregistered supplier unless he has paid GST on
reverse charge
Supplier of goods not taxable under GST law
Manufacturer of notified goods by government
Suppliers making any supply of goods through an electronic commerce operator
who is required to collect tax at source
Mention“ COMPOSITION TAXABLE
PERSON, NOT ELIGIBLE TO COLLECT TAX
ON SUPPLIES” at the Bill of Supply
Mention the words “ COMPOSITION
TAXABLE PERSON” on every notice /sign
board displayed at his principal and additional place
of business
The Rate of tax prescribed for different categories of
registered persons have been described below:
Category of Registered Persons Rate of tax
Manufacturers, other than
manufacturers of notified goods 2%
Restaurant Services 5%
Traders or any other suppliers 1%
A registered taxable person paying tax under the provisions of
section 8 of this Act shall furnish a return for each quarter or
part thereof, electronically, in such form and in such manner as
may be prescribed, within Eighteen days after the end of such
quarter.
EXAMPLE: RETURN FOR JULY 2017
Taxpayer
Recipient Supplier and
Amend or modify Recipient
and file GSTR-2 To reconcile
by 15th of August details by 17th of
August
GSTN
Auto-Population Supplier
of invoice details File GSTR-3 by
in GSTR-2 of 20th of August &
recipient pay tax
Supplier
Invoice Details Supplier
upload from 1st of File GSTR-I by
July to 10th of 10th of August
August
