1. A PRESENTATION BY CS HARSH CHAUHAN ACCOUNTS OFFICER BSNL
DRAFT GST ACT, 2016
A PRESENTATION BY
CS HARSH CHAUHAN
ACCOUNTS OFFICER
BSNL

2. GST– A BACKGROUND
GST see light of day after 13 years long journey since first coined by Kelkar Task Force in 2003
FM Chidambaram declared in Budget speech that GST will be applicable by 01/04/2010
The 122nd Constitutional Amendment bill passed by Both houses of Parliament in Monsoon Session
GST to be applicable by 01/04/2017
Compensation for loss of revenue to states for 5 years
Setting up of GST Network, a NPO for IT infrastructure. Infosys as IT partner

3. 122nd Amendment Bill
The 122nd Constitutional Amendment bill passed by Both houses of Parliament has inserted following powers:
Art. 246A- Concurrent jurisdiction
Art.269A- Power of CG to levy and collect IGST on interstate sale including imports
Art. 366(12A)- GST defined as any tax on supply of goods or services or both other than on alcohol for human consumption
Art. 279A- Setting up of GST council
Art. 366(12) &26A- Goods & services defined
Authority for Center to levy non-vatable Additional to be retaining by originating state

4. GST– Salient Features A multi point tax on value added at each stage
Destination based consumption Tax (earlier origin)
Taxable event shifted to supply of goods or services
Unified tax regime with set-off of taxes paid at each stage so no cascading of taxes
Tax is only cost to end consumer
Facilitates ease of doing business, ‘focus on make in India’ subsuming Central & State Taxes
Set up of GST council to adjudicate on rates, levy, disputes & exemptions etc

5. TAXES subsumed in GST Central Taxes State Taxes Central Excise Duty
VAT
Additional Excise Duty
Entertainment Tax
Service Tax
Central Sales Tax
Additional Custom Duty (CVD)
Octroi & Entry Tax
Special Additional duty of custom SAD
Purchase Tax
Luxury Tax
Taxes on lottery betting & gambling
Note: Taxes levied by local bodies is not covered in GST

6. Goods & Services outside GST
The following goods & services are outside GST coverage:
Stamp duty
Customs duty- Basic & Safeguard
Tax on sale or consumption of electricity
Taxes levied by local bodies
Tax on alcoholic liquor for human consumption
Petroleum products till notification
Taxes on vehicles, land & building & mineral rights
Toll charges
Professional Tax
Taxes on goods & passengers carried by road or on inland waterways
Taxes on transaction of securities in Stock Exchanges

7. GST– Tax Structure
The levy of Tax is destination based and is classified as either Intra State or Inter state or export or import
The GST is divided into CGST, SGST & IGST
Input of CGST can be utilised for payment of output CGST. Similar is case with SGST.
IGST to be levied on inter state sale is sum of CGST & SGST. The selling dealer will adjust IGST, CGST & SGST in order for payment of output IGST
The reverse Charge Mechanism extended to goods

8. GST– Proposed Regime
The draft GST law has been prepared by Empowered Committee of finance Ministers
The draft Bill comprises 27 chapters divided into 178 clauses & 4 schedules. The 4 schedules are:
Schedule I- Matters to be considered as supply without consideration
Schedule II- Matters to be considered as supply of goods or services
Schedule III- Liability to be registered
Schedule IV- Activities or transactions in respect of which CG or SG or any local authority shall not be treated as taxable person
GST Valuation Rules & IGST Rules issued by CG

9. GST Act- An analysis
The GST Act comprehensively defines Turnover , business, business vertical, deemed export, goods & services, inputs, capital goods, market value, place of business, recipient etc
The Compulsory registration at aggregate turnover exceeding Rs. 9 Lakh. For N.E. states & Sikkim, Rs. 4 Lakh. Registration is done in state of place of business. Registration is PAN based
The liability of tax will arise at aggregate turnover exceeding Rs. 10 Lakh. For N.E. states & Sikkim, Rs. 5 Lakh. Composition scheme for dealers having turnover upto 50 L
The taxable event is supply of goods or services for consideration & importation without consideration

10. GST Act- An analysis Payment of Tax shall be electronic mode
Refund of tax paid can be claimed in 2 years.
TCS by electronic operator at time of credit or payment whichever is earlier
The government may mandate certain departments to deduct on notified goods & services if contracted supply exceed Rs. 10 Lakh
Various Returns such as First Return, Monthly, Annual final, TDS Return, Return for Input Service Distribution & Return for composition Scheme

11. GST Act- An analysis
The valuation of goods and services shall be as per Valuation Rules
Departmental Audit & Special Audit has been prescribed
GST Compliance Rating score shall be granted to each assessee
Black listing of assessee

12. GST Act- An analysis The main definitions are analysed as under:
“Aggregate Turnover” means aggregate value of all taxable supplies, exempt supplies and export of goods and/or services of a person having same PAN but excludes: a) taxes paid under GST b) Inward supplies c) Taxes paid under reverse charge