Presented by – CA Gagan Kedia 15.02.2017 – Exemptions Presented by – CA Gagan Kedia 15.02.2017 MRG KEDIA & CO. | EXEMPTIONS | .

The MAHABHARATA ~The Lesson to Learn MRG KEDIA & CO. – GST TRANSITION| .

REVERSE CHARGE MRG KEDIA & CO. | EXEMPTIONS | .

Sec. 9(3) & 9(4) Section - 9 (3) Section - 9 (4) - Govt Will issue a Notification in this case. - in the notification, it will specify the Categories of Supplies of Goods / Services on which RCM would be applicable. - And all the provisions of GST act shall apply on the receiver as if he is the person liable to pay tax Section - 9 (4) - Applicable in case of supply of taxable goods or services by an unregistered supplier to a receiver who is registered under GST. - In such cases, the registered receiver has to pay tax to the government under Reverse Charge. MRG KEDIA & CO. | EXEMPTIONS | .

RCM List for Services This is draft list. May be changed. List similar to present day Service tax List, with minor changes. Items like RCM on works contract / manpower – missing Items like RCM on Imports, GTA, Advocates, Sponsorship, Govt Services, Directors, Insurance Agents/Recovery Agents, GTV, Radio Taxi- continue MRG KEDIA & CO. | EXEMPTIONS | .

COMPOSITION SCHEME MRG KEDIA & CO. | EXEMPTIONS | .

Sec. 10: Who Can Opt: Who Cannot Opt: Aggregate TO in PREECEEDING FY < 50L (PAN India Basis) Manufacturer 1.0% of TO Trader 0.5% of TO Services of Sch-II, 6(b) 2.5% of TO Who Cannot Opt: Other Service providers Inter-state supplier Supplier through e-commerce operator Manufacturer of Such goods MRG KEDIA & CO. | EXEMPTIONS | .

Sec. 10: Do’s Don’ts File CMP-01 within 30 days – migration cases. File CMP-03 within 60 days with stock details & inward supply from unreg person. Fill part B of REG-01 – for new registrations. File CMP-02 prior to commencement of FY & also ITC-3 Don’ts Cross 50L. The day you cross, Composition option gone. Collect any taxes Claim any ITC Do any inter-state sale. MRG KEDIA & CO. | EXEMPTIONS | .

EXEMPTIONS MRG KEDIA & CO. | EXEMPTIONS | .

What’s the Difference b/w EXEMPTED Supply & NON TAXABLE SUPPLY CONTENTS : What’s the Difference b/w EXEMPTED Supply & NON TAXABLE SUPPLY Exemption from Tax – Powers of Govt. Various Exemptions under GST - Overview Various Exemptions - Details ZERO RATED SUPPLY MRG KEDIA & CO. | EXEMPTIONS | .

Exemption from Tax – Powers of Govt. MRG KEDIA & CO. | EXEMPTIONS | .

Sec. 11 : Powers of Govt. to Grant Exemption POWER NO. 1 If the Central or a State Government is satisfied; that it is necessary in the public interest; on recommendation of the Council,; by way of a notification MRG KEDIA & CO. | EXEMPTIONS | .

Of Specified Description Exemption Absolute Or Conditional of Goods / Services Of Specified Description MRG KEDIA & CO. | EXEMPTIONS | .

Quantum of Exemption Or ANY PART OF TAX Either WHOLE From Any OTHER DATE mentioned in Notification DATE OF ISSUE of Notification MRG KEDIA & CO. | EXEMPTIONS | .

Goods – Refer the Rate Chart (Nil%) LIST OF EXEMPTIONS Goods – Refer the Rate Chart (Nil%) Services – Refer the Exemption List (83 items) MRG KEDIA & CO. | EXEMPTIONS | .

Sec. 11 : Contd.. POWER NO. 2 - order If the Central or a State Government is satisfied; that it is necessary in the public interest; on recommendation of the Council; by way of a special order in each case Exempt from payment of tax Circumstances of exceptional nature MRG KEDIA & CO. | EXEMPTIONS | .

Sec. 11 : Contd.. POWER NO. 3 – Retrospective For the purpose of clarifying the scope of applicability of any exemption Notification or order; The CG / SG may insert an explanation; At any time within one year from ? Will have retrospective effect. MRG KEDIA & CO. | EXEMPTIONS | .

Various Exemptions under GST - Overview MRG KEDIA & CO. | EXEMPTIONS | .

Over View – Exemptions in Registrations Invoices Tax Payments Returns Maintaining Books CA Audit MRG KEDIA & CO. | EXEMPTIONS | .

Various Exemptions under GST - DETAILS MRG KEDIA & CO. | EXEMPTIONS | .

Over View – Exemptions in REGISTRATIONS Invoices Tax Payments Returns Every Supplier. In the State from where supply Agg TO > 20L in a FY 20L - inclding as agents Excl Reg. Job work Maintaining Books CA Audit Aggregate Turnover Taxable supply / Exempt supply Export / Inter-state Same PAN / All India basis MRG KEDIA & CO. | EXEMPTIONS | .

Over View – Exemptions in Registrations INVOICES Tax Payments Returns If Supplying EXEMPTED G/S OR Composition Dealers Exempted from issuing Invoice Have to issue ‘Bill of Supply’ instead. Maintaining Books CA Audit MRG KEDIA & CO. | EXEMPTIONS | .

Over View – Exemptions in Registrations Invoices TAX PAYMENTS Returns Generally online mode. For OTC payment – limit is 10K per challan per tax period Some persons are exempt from this 10K limit in case of OTC payments. Maintaining Books CA Audit Like: Govt Depts or Persons authorised by them; PO – for recovery / investigation MRG KEDIA & CO. | EXEMPTIONS | .

Over View – Exemptions in Registrations Invoices Tax Payments RETURNS Generally - 3 x Monthly Returns BUT following are exempted from monthly returns: Maintaining Books CA Audit ISD Composition NR TDS / TCS MRG KEDIA & CO. | EXEMPTIONS | .

Over View – Exemptions in Registrations Invoices Tax Payments Returns Every Registered Person shall Maintain books of: Production, /Manufacture; Inward / Outward Supply; Stock of goods ITC Tax Payable & Paid MAINTAINING BOOKS CA Audit SEEK PERMISSION from Commissioner / Chief Commissioner He may exempt from maintain all the above and Instead ask to maintain simpler books. MRG KEDIA & CO. | EXEMPTIONS | .

Over View – Exemptions in Registrations Invoices Tax Payments Returns Every Registered Person shall Get his Accounts Audited by a CA / CWA If the Agg. TO exceeds 1Cr And also file it with a Recon Statement Maintaining Books CA AUDIT Those below the limit: Neither get Accounts Audited Nor file the Recon Statement ( GSTR-9B) MRG KEDIA & CO. | EXEMPTIONS | .

Exemptions from Demand & Recovery 5 Years in case of intent to evade tax. 3 years if not MRG KEDIA & CO. | EXEMPTIONS | .

ZERO RATED SUPPLY MRG KEDIA & CO. | EXEMPTIONS | .

ZERO RATED SUPPLY Taxed @ ZERO rate (0%) But ITC AVAILABLE How is it Different From Nil Rated Supply ? MRG KEDIA & CO. | EXEMPTIONS | .

What are ZERO RATED SUPPLY ? Export of G/S Supply to SEZ Dev/Unit MRG KEDIA & CO. | EXEMPTIONS | .

For any queries, feel free to contact - THANK YOU For any queries, feel free to contact - CA GAGAN KEDIA, Partner – Indirect Tax MRG KEDIA & CO. (Chartered Accountants) Unit No. 408, 4th Floor, Kamalalaya Centre 156A, Lenin Sarani, Dharamtalla, Kol-13 # 98306 82188 ; cagkedia@gmail.com MRG KEDIA & CO. | EXEMPTIONS | .