Draft – GST LAW Central / State Goods & Service Tax Act & Rules

GST Migration Procedure Earlier concept of Manufacture, Sale, Purchase is no more in GST Supply of Goods Supply of Services Sale has been replaced by “Outward Supply” Purchase has been replaced by “Inward Supply” If the Units have separate Registration, then Supply to one unit to other unit is Taxable “Taxable Person” means a person who is registered under the Act Tax Invoice – For supply of Taxable goods Bill of Sale – For supply of Non-Taxable goods Monthly Return, Annual Return There is no Revised Return under GST True & Correct Accounts to be maintained Bhavani Associates

Registration Sec.23 Registration :- (1) Every person liable to pay Tax shall register under GST (2) One state have one Registration for all the Units (3) A person having multiple business verticals in a State may obtain a separate registration for each business vertical “Business Vertical” means a distinguishable component of an enterprise different from other business. E.g. ABC Ltd is a company having Manufacture, Trading, Servicing of different division or Segment. Then Each division / Business vertical may be registered separately (Iron & Steel, Cement, Fertilizer) (3) Units in separate state should have separate Registration (4) CESC can make a representation to the Govt. for Division wise for separate registration Bhavani Associates

Migration Right now we have different Portal : Central Excise Portal, Service Tax Portal, State-wise KVAT Portal (for VAT & CST) There is no interlink between one another GSTN is a common portal for CGST, SGST & IGST Migration from VAT to GST Portal Upload the Data of all the Division / Work Circle in GST Portal Provisional Registration no. will be given Once GST implemented, GSTIN no. will be allotted and Registration certificate will be issued GSTIN – 15 digit code State – 2 digit PAN – 10 digit Entity code – 3 digit

Data and Documents Required for Enrolment BUSINESS DETAIL   Registration certificate Partnership deed PDF/JPEG(1MB) PROMOTERS/ PARTNERS Photograph (for each) JPEG(100KB) AUTHORISED SIGNATORY 1.Proof of appointment 2.Photo JPEG(100KB)  PRINCIPAL / ADDITIONAL PLACES OF BUSINESS Address proof (for each) BANK ACCOUNTS Statement/First page (for each)

Section & Rules Sec.2(28) “consideration” in relation to the supply of goods or services includes (a) any payment made (or received), whether in money or otherwise, in respect of the supply of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government Sec.3 Supply includes :- (a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration or without consideration by a person in the course of business Sec.57 : Self Assessment Sec.59 : Scrutiny of Returns Other Provisions :- Recovery of Tax, Interest, Penalty, Audit, Appeal, Adjudication continues Bhavani Associates

Accounting 1. Whether you are covered under Central Excise Dept. or Service Tax Dept. or VAT Dept. ???? 2. No interaction with the Dept. 3. Sales should be uploaded in the GST Portal 4. Purchase should be pulled from the GST Portal 5. Turnover of all the Divisions should be clubbed and uploaded in the Return and Tax has to pay 6. For short payment – Recovery up to 3 years 7. More than one year Bills you can’t pull or account 8. Credit Notes / Debit Notes continues 9. Monthly Return before 20th 10. Annual Return before 31st December

Procedure 1. Electricity supply & Distribution is Exempted from GST 2. No Cenvat Credit facility for CESC 3. You can upload Lump sum Sales & Purchase details in the Return. Invoice-wise breakup not required 4. Suppliers GSTIN should be mentioned in the PO or WO 5. GST need not have to pay if purchased from Un-Registered dealer 6. If the Bill amount is more than Rs.20L or total Bill amount in a year is more than Rs.20L, then ask for GSTIN 7. Prepare common list of transactions for all the Division & Works Circle for updation in GST portal 8. Adopt uniform procedure for payment of GST under reverse charge or payment to the party

Action Plan 1. Awareness to manufacturers, dealers & customers 2. Whether any impact on cost of product 3. Examine the market fluctuations 4. Analyse the impact of Purchases from Local & Interstate 5. Work out the modus operandi when switching over to GST 6. Update the periodical changes in Rules & Regulations 7. Implement proper Software & Hardware and update the skills

Forms under GST GSTR-1 : OUTWARD SUPPLIES (Sales) MADE BY THE TAXPAYER (Before 10th) GSTR-2 : INWARD SUPPLIES/PURCHASES RECEIVED – Auto Population (Before 15th) GSTR-3 : MONTHLY RETURN – (Before 20th) GSTR-4 : Quarterly Return for Compounding Dealer (Before 18th) GSTR-5 : RETURN FOR NON RESIDENT TAXPAYERS (FOREIGNERS) GSTR-6 : RETURN FOR INPUT SERVICE DISTRIBUTOR GSTR-7 : TDS Return (Before 10th) GSTR-8 : ANNUAL RETURN (Before 31st December)

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