Goods and Service Tax (GST)

______________________________________________________________________

--CA Keshav Garg

+91 9888-090-008

Mygst.mytax@gmail.com

servicetaxindia@outlook.com

What is Goods & Service Tax ?

1. GST is comprehensive Value added Tax on Goods &Services, collected at each stage of supply chain,with applicable set off in respect of the tax remittedat previous stages.

2. It is destination based consumption tax i.e. on finalconsumption.

3. India has adopted Concurrent Dual GST Model.

4. All sort of Indirect taxes except basic Custom Duty,Export Duty and few state taxes will subsume.

5. GST is expected to boost the Indian Economy’s GDPby around 2%.

Concurrent Dual GST Model in India

1. System strikes a balance between fiscal autonomy of theCentral & State Governments.

2. It empowers both levels of governments to apply the tax toa comprehensive base of Goods and Services, at all stagesin the supply chain.

3. The Centre shall administer CGST & IGST, states wouldadminister SGST.

4. No cross set off of input tax credit shall be allowed i.e.CGST can be set off against CGST only and NOT from SGST.

5. A constitutional amendment with the consent of 50%states is required in order to implement such system oftaxation.

Exceptions from GSTGoods/Products Status

1. Alcoholic Liquor for Human Consumption

-- Not subsumed under GST-- State Excise Plus VAT will continue to levy

2. Petroleum Products -- Included in GST but effective from the date to be notified by the GST Council.-- Present Taxes shall continue

3. Tobacco Products -- GST plus Central Excise will be applicable

4. Electricity --Electricity Duty will be levied rather than GST.

5. Real Estate Transactions --Stamp Duty along with GST will apply.

Registration Procedure Under GOODS AND SERVICES TAX(GST)

About Registration1. A legal person with GST registration can collect GST from

his customers and claim any Input Tax Credit of GST paid byhim.

2. Taxpayers whose All India Gross Annual TurnoverINCLUDING exports and exempted supplies exceed thethreshold limit of Rs. 25 lakhs has to get registration underthe law.

3. Application for Registration has to be made within 30 daysof exceeding the threshold limit in order to avail ITC of allpurchases and supplies. However taxpayer can voluntarilyregister even when GAT is less than threshold.

4. If the taxpayer do not apply for registration within 30 days,he shall not be eligible to claim ITC of the purchases madeprior to date of registration.

5. Effective Date of Registration in both the cases shall be thedate on which registration application is filed.

6. Dealers carrying out inter state supply has toCOMPULSORILY take registration under GST,

irrespective of GAT. Such dealers can neither availcompounding nor exemption threshold benefit.

7. For Government Authorities/Public Sector undertakingwhich are not making outward supplies but are makinginter state purchases will be given UID in order to be partof credit chain.

8. The concept of Input Service Distributor shall alsocontinue under the new GST regime.

9. All existing registered person shall be voluntarilymigrated and allotted GSTIN with the help of GST PortalNetwork.

10. In case of enforcement cases, department can grantregistration on suo-motto basis.

Structure of Goods and Service Tax Identification Number

(GSTIN)

State Code PAN Entity Blank Checksum

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1. Registration Number would be 15 digit alphanumeric.2. Registration will be strictly on the basis of PAN Number.3. Registration Number shall be issued state wise.4. Multiple registrations within a State for business

verticals shall be allowed.

Compounding under GST

1. A higher threshold limit (Compounding Turnover) would beset for opting compounding and payment of GST at aspecified percentage of the turnover.

2. Taxpayer opting for compounding will move out of thecredit chain.

3. The option to avail compounding has to be opted at thebeginning of the financial year application has to be madebefore 31st March.

4. Normal provisions will apply in case assessee crossesCompounding turnover or voluntary opts out of the scheme.

5. Assessee voluntarily opting cannot step back tocompounding and has to make fresh application at thebeginning of next financial year.

6. Registration Application Form, Registration Certificate andReturns for compounding assessee shall be different.

Casual Supplier

1. A supplier who is not registered, can take registrationfor limited period for conducting the business in a state.

2. Such dealers are known as Casual Dealers and are notallowed to avail compounding benefit.

3. The period of registration shall be mentioned in theregistration certificate.

4. Application form shall state the estimatedsupplies/turnover during the said period.

5. Taxpayer has to self assess their likely liability anddeposit the same in form of refundable surety whichwould be refunded after taxpayer has discharged hisfinal liability.

Non Resident Supplier

1. A Non Resident Supplier would be one which makes aninter-state supplies of goods and services, but is not aresident in the state in which registration has beenapplied.

2. A Non Resident Supplier is registered in any other state.

3. All the provisions of casual dealers shall apply to NonResident Supplier except that no security deposit oradvance tax shall be deposited.

Registration Modes

1. A online application may be submitted through GSTCommon Portal setup by Goods and Service Tax Network.

2. An online application can be digitally signed by theauthorized representative. There is a option of manualsigning as well.

3. Upon online verification through E-Mail and SMS ,acknowledgement shall be sent to the taxpayer.

4. The GSTN shall issue Log-in ID and password to authorizedsignatory.

5. Application can be filed through Tax Return Preparers (TRP)

6. Facilitation centers shall be established for digitizationand/or uploading the documents on the GST Portal.

Manual Registration Process (Without Digital Signatures)

1. Upon submission of application online, summary extracthas to manually signed and sent to Centralized ProcessingCell of GSTN within 30 days.

2. If the signed copy is not received within 30 days, areminder will be sent through e-mail or SMS to theauthorized signatory.

3. If the extract is still not received within 30 days of thereminder, the system shall prompt the concerned taxauthority to initiate the action of cancellation ofpreliminary registration.

4. GST portal would acknowledge the receipt of applicationfor registration and issue an Acknowledgement Numberwhich could be used by the applicant for tracking hisapplication.

Registration Process and Timelines

1. Assessee has to simultaneously make application with theCenter as well the state.

2. Center and State Authorities shall have to approve/raisequery on the application within 3 working days. Incase noaction is taken, registration shall be deemed to be granted.

3. In case of a query the same has to replied by the taxpayerwithin the time stipulated in the notice.

4. Upon Receipt of additional documents or clarification therelevant tax authority will respond within 7 working days.

5. Thereafter the registration application will be processedand if it is rejected by either Center or State, registrationwill not be granted.

6. GST Registration Certificate has to be displayed at theprincipal place of business of the taxpayer.

Migration of Existing Registrants in case of VAT TIN

1. System is being designed to migrate verified data from existingdatabase to GST Common Portal and a GSTIN shall begenerated.

2. Existing Registrants which are registered with different statesand/or center shall have to take unified registration under GST.

3. NSDL has been vested the responsibility for verifying the dataon PAN Number basis, which shall be migrated to GST commonPortal.

4. GSTIN will be generated by NSDL in case of all VAT TINs wherePAN has been validated. Along with password GSTIN ill be sentto respective State Tax Authorities.

5. State Tax Authorities shall communicate the GSTIN/passwordto taxpayers along with instructions.

6. In case PAN is validated but email or phone numbers of thedealers are not available, such dealers may be advised throughnewspaper advertisement to visit GST portal and authenticate.

Migration of Existing Registrants in case of Service Tax

1. It will be duty of the Service Tax Registrant to inform asto under which state they would like to get themselvesregistered.

2. Service Tax Portal will check GST Portal whether GSTINhas been generated for combination of State and PAN ofthe taxpayer, if not generated, request GST portal togenerate the same.

3. GST portal will generate the GSTIN and communicate tothe service tax department which shall furthercommunicate the same to the assessee.

Amendment of Registration

1. Most of the details can be amended by the tax payer onself service basis.

2. Information like mobile number and email address canbe changed through online verification.

3. Some critical details like name, principal place ofbusiness can be amended with the prior approval of thetax authorities.

Cancellation/Surrender of Registration

1. In following cases, the registration can be eithersurrendered by the registrant or cancelled by the taxauthorities.

a) Closure of business by taxpayer.

b) Gross Annual Turnover falling below threshold.

c) Transfer of business

d) Amalgamation or De-Merger

e) Non Commencement of business within stipulatedtime.

2. In case of surrender acknowledgement will be sent throughEmail and SMS to the applicant and he will be deemed to beunregistered from date of acknowledgement. But theassessee has to regularly update his contact details till all thedues are cleared/refunded.

Other Matters for Cancellation of Registration by Tax Authorities

1. Non Receipt of signed copy of summary extract of submittedapplication from within 30 days of reminder.

2. In case Taxpayer Contravenes specified provisions of the GSTLaw.

3. In case the taxpayer does not file periodic return. It is advisableto fill Nil returns in order to avoid cancellation.

4. The registration both at Center and State shall be simultaneousrevoked.

5. Only the same authority can revoke cancellation of registrationwhich have cancelled the registration and nobody else.

6. An appeal against the cancellation of registration can be filed.

7. The cancellation or surrender of registration would always haveprospective effect.

Returns and Their Due Date under Goods And Service Tax(GST)

(In Brief)

S. No. Return Form

For Due Date

1. GSTR – 1 Outward Supplies made by taxpayer(other than compounding taxpayer andInput Service Distributor)

10th of next month

2. GSTR – 2 Inward Supplies Received by a taxpayer(other than compounding taxpayer andInput Service Distributor)

15th of next month

3. GSTR- 3 Monthly Return (other thancompounding taxpayer and Input ServiceDistributor)

20th of next month

4. GSTR- 4 Quarterly Return for CompoundingTaxpayer

18th of the month next to quarter

5. GSTR- 5 Periodic Return by Non ResidentTaxpayer

Last day of registration

6. GSTR- 6 Return for Input Service Distributor 15th of next month

7. GSTR- 7 Return for Tax Deducted at Source 10th of next month

8. GSTR-8 Annual Return By 31st Dec of next FY

THANK YOU--CA Keshav Garg

+91-9888-090-008+91-172-461-3328

Mail: mygst.mytax@gmail.comservicetaxindia@outlook.com

_________________________________________________________________________________________Service Tax Helpdesk : +91-9888-090-008

For Daily Dose on GST & Service Tax WhatsApp - <Name>, <Mobile No>, <City> at +91-9888-090-008