1. GOODS AND SERVICES TAX (GST)BY
CHINNI SRAVANKUMAR
CHARTERED ACCOUNTANT

2. INTRODUCTION
Goods and Service tax ( GST) is a comprehensive levy on manufacture , sale and consumption of goods and services at a national level.
It is collected on value added at each stage of sale or purchase in the supply chain.
Seamless input tax credit throughout the supply chain.

3. Existing Tax structure in India
Direct Tax
Income Tax
Wealth Tax
Indirect Tax
Central Tax
Excise
Service Tax
Custome
State Tax
VAT
Entry Tax, luxury tax, Lottery Tax, etc.

4. Indirect Tax = GST (Except customs)
Tax Structure in India
Tax Structure
Direct Tax
Income Tax
Wealth Tax
Indirect Tax = GST (Except customs)
Intra- state
CGST (Central)
SGST (State)
Inter State
IGST (Central)

5. Subsuming of Existing Taxes
Central Excise
Additional duties of Custom (CVD)
Service Tax
Surcharges and all cesses
CGST
VAT/sales tax
Entertainment Tax
Luxury Tax
Lottery Tax
Entry Tax
Purchase Tax
Stamp Duty
Goods and passenger Tax
Tax on vehicle
Electricity, banking, Real state
SGST
CST
IGST

6. GST - BENEFITS Transparent tax system Uniform Tax system Across India
Reduce tax Evasion
Mitigation of cascading / double taxation
More efficient neutralization of taxes especially for exports
Development of Common National market

7. COMMODITIES NOT INCLUDED IN GST
Alcohol
Petroleum Products
Tobacco Products

8. Persons required to get compulsory registration
A person receiving supplies on which tax is payable by recipient on reverse charge basis.
Casual taxable person
Non- resident person.
A person who supplies on behalf of some other taxable person.
E-commerce operators
TDS Deductor
Input service distributor
Those supplying online information from outside india to NRI in india

9. To whom GST does not apply
Agriculturists
Any person engaged exclusively in the business of supplying goods and/or services that are not liable to tax or are wholly exempt from tax under this Act.

10. GST on Job work Job Work is
Adding value to the raw materials or semi- processed goods supplied by the principal manufacturer.
GST rate on job work for the textile and chemical sector is 5% while for others is 18%.
Purchased Goods can be sent to the job worker in the given manner
From Principal Place of Business
Directly From the place of supply of the supplier of such goods
In both above cases, ITC will be allowed.

11. Updates regarding Job work
The challan may be issued either by the principal or the job worker for sending goods to another job worker.
The challan issued by the principal may be endorsed by the job worker.
The challan endorsed by one job worker may be endorsed by another job worker.

12. SLABS TAX RATES APPLICABLE 0%
Unpacked food grains, Milk, eggs, Curd, lassi, Unpacked panner, Fresh Vegetables, salt, Education Services, Health Services etc. 5%
Sugar, Tea, edible Oils, Domestic LPG, Cashew Nuts, Fabric, Spices, Coal, packed Panner, Skimmed Milk Powder, Agarbatti etc.
12%
Butter, Ghee, Almonds, Fruit Juice, Processed Food, Mobiles, Umbrella etc.
18%
Hair Oil, Tooth paste, Corn Flakes, Soups, Capital Goods etc.
28%
Consumer durables such as AC and Fridge , Luxury cars, pan masala, Tobacco products, Aerated drinks etc.

13. GST- FILING OF RETURNS Standard date of Filing GSTR-1
10 th of Next Month
GSTR-2
15 th of Next Month
GSTR-3
20 th of Next Month
GSTR-3B
GSTR-4
18 th of the Month Succeeding the Quarter
GSTR-5
20 th of the Month Succeeding the tax period and within 7 days after expiry of registration
GSTR-5 A
20 th of the Next Month
GSTR-6
13 th of the Next Month
GSTR-7
10 th of the Next Month
GSTR-8
GSTR-9
31 st December of Next Financial year
GSTR- 9A
GSTR-10
Within three months of the date of cancellation or date of order of cancellation whichever is later
GSTR-11
28 th of the Next month

14. GST – PROPOSED KEY FEATURES
Dual GST: Central GST & State GST
Destination based state GST
Uniform Classification
Uniform Forms- Returns , Challans ( in electronic mode)
No Cascading of central and state taxes
Cross credit between centre and state not allowed

15. REGISTRATION UNDER GST
Each taxpayer would be allotted a PAN linked taxpayer identification number with a total of 13/15 digits.
This would bring the GST PAN-linked system in line with the prevailing PAN-based system for Income tax facilitating data exchange and taxpayer compliance.
The exact design would be worked out in consultation with the Income-Tax Department.

16. GST INVOICE
The Task Force on GST said the computation of CGST and SGST liability should be based on the Invoice credit method. i.e., allow credit for tax paid on all intermediate goods and services on the basis of invoices issued by the supplier.
Invoice level detail is necessary for the reconciliation of tax deposits, and the end-to-end reconciliation of ITC. An effective IGST implementation may also require invoice-level details.
A number of states are capturing invoice details even in the existing VAT systems. It is proposed to follow a two-pronged approach with Dealer level granularity of returns in the first phase followed by invoice level in the next phase.

17. COMPOSITION SCHEME
A Composition/Compounding Scheme will be an important feature of GST, to protect the interests of small traders and small scale industries. The Composition/Compounding scheme for the purpose of GST should have an upper ceiling on gross annual turnover and a floor tax rate with respect to gross annual turnover.
In particular there will be a compounding cut-off at Rs. 50 lakhs of the gross annual turnover and the floor rate of 0.5% across the States. The scheme would allow option for GST registration for dealers with turnover below the compounding cut-off.

18. Benefits of Composition scheme
Easy compliance as no elaborate accounts and records to be maintained
Simple Quarterly Return
Quarterly payment of tax.

19. E-way bill A waybill is a receipt or a document issued by a carrier
E-way bill is an electronic document evidencing movement of goods.
E-way bill for inter-State movement of goods across the country from 1st April 2018.
If the consignor or consignee has not generated the e-way bill and the aggregate invoice value is greater than 50,000, then the transporter has to generate the e-way bill in FORM GST EWB-01 in respect of inter state supply

20. Tax rates regarding composition scheme
Type of Business
Rate of tax
Manufacture 2%
Traders(Goods) 1%
Supplier of food or drinks for human consumption (without alcohol) 5%
Service Providers
Cannot opt for composition scheme

21. Interest on late payment
An interest of 18 percent is levied on the late payment of taxes under the GST regime. The interest would be levied for the days for which tax was not paid after the due date.

22. Penalty for non-filing of GST returns
In case a taxpayer does not file his/her return within the due dates, he/she shall have to pay a late fee of Rs. 200/- i.e.Rs.100/- for CGST and Rs.100/- for SGST per day (up to a maximum of Rs. 5,000/-) from the due date to the date when the returns are actually filed.

23. FLAWS OF GST MODEL
Major flaw of this model is ,Local Dealers have to pay CGST in addition to SGST.
In Addition to this, CGST mainly represents the Excise/service tax and SGST mainly represents the VAT portion but, because of ‘No differentiation between Goods and Services’ service supply within the state would attract SGST as GST is levied at each stage in the supply chain and Assessee have to Pay CGST as well as SGST.
The issue which still needs to be resolved are, the revenue sharing between States and Centre, and a framework for exemption, thresholds and composition.

24. THANK YOU