1. BY AVNS NAGESWARA RAO COST ACCOUNTANT
GST - ROLE OF CMAs BY
AVNS NAGESWARA RAO
COST ACCOUNTANT

2. Goods and Service Tax [GST]
Is a destination based tax on consumption of goods and services that accrues to the taxing authority, which has jurisdiction over the place of consumption [place of supply]
Levied at all stages right from manufacture up to final consumption
Credit of taxes paid at previous stages available as setoff.
The net result:
Only value addition will be taxed and
Burden of tax is to be borne by the final consumer

3. GST replaces [subsumes] the following: I. Central Taxes:
Central Excise duty
Duties of Excise (Medicinal and Toilet Preparations)
Additional Duties of Excise (Goods of Special Importance)
Additional Duties of Excise (Textiles and Textile Products)
Additional Duties of Customs (known as CVD)
Special Additional Duty of Customs (SAD)
Service Tax
Central Surcharges and Cesses so far as they relate to supply of goods and services

4. II. State Taxes [As applicable]:
State VAT
Central Sales Tax
Luxury Tax
Entry Tax (all forms)
Entertainment and Amusement Tax (except when levied by the local bodies)
Taxes on advertisements
Purchase Tax
Taxes on lotteries, betting and gambling
State Surcharges and Cesses so far as they relate to supply of goods and services

5. LEVY OF GST
GST is levied by the Centre and Respective States simultaneously, on a common tax base [a dual levy]
On intra-State supply of goods and / or services
levied by:
Centre — CGST
The Respective States—SGST
On inter-state supply of goods and services—IGST [CGST+SGST], levied and administered by Centre.

6. GOVERNING ACTS, RULES and FORMS:
Central Goods and Services Tax Act, 2017
UT Goods and Services Tax Act, 2017
Respective State Goods and Services Acts
RULES and FORMS:
Registration Rules and Forms
Composition Rules and Forms
Determinations of Value Rules
Invoice Rules and Forms
Payment Rules and Forms
ITC Rules and Forms
Accounts and Records Rules
Return Forms etc

7. CRITICAL AREAS of GST Important Definitions Registration
Time and Place of Supply
Valuation of supply
Input Tax credit
Composition scheme
Filing of Returns, etc

8. Supply “supply” includes––
(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
(b) import of services for a consideration whether or not in the course or furtherance of business;
(c) the activities specified in Schedule I, made or agreed to be made without a consideration; and
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.

9. Business
(17) “business” includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;

10. (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) services provided by a race club by way of totalisator or a licence to book maker in such club ; and
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;

11. ü ü Input Tax Credit CGST CGST SGST IGST Input tax Credits (‘ITC’)
Output Liability of
Input Credit of Available for
credit against ü
CGST
CGST
SGST
Input tax Credits (‘ITC’)
Order of utilization:
First utilize for CGST
Next utilize for IGST ü
IGST

12. ü ü SGST CGST SGST IGST …. Contd. First utilize for SGST
Output Liability of
Input Credit of Available for
credit against
SGST
CGST ü
SGST
Input tax Credits (‘ITC’)
Order of utilization
First utilize for SGST
Next utilize for IGST ü
IGST 15

13. ü ü ü IGST IGST CGST SGST .... Contd. Input tax Credits (‘ITC’)
Output Liability of
Input Credit of Available for
credit against ü
IGST
IGST ü
CGST
Input tax Credits (‘ITC’)
Order of utilization:
IGST can be utilized against IGST or CGST or SGST in that order only ü
SGST

14. RETURNS-IMPORTANT POINTS
S No
Returns/ Ledger
For
To be filed by 1
GSTR - 1
Outward supplies made by taxpayer (other than compounding taxpayer and ISD)
10th of the next month 2
GSTR – 2
Inward supplies received by a taxpayer (other than a compounding taxpayer and ISD)
15th of the next month 3
GSTR – 3
Monthly return (other than compounding taxpayer and ISD)
20th of the next month 4
GSTR – 4
Quarterly return for compounding Taxpayer
18th of the month next to quarter 5
GSTR – 5
Periodic return by Non-Resident Foreign Taxpayer
Last day of registration 6
GSTR – 6
Return for Input Service Distributor (ISD) 7
GSTR – 7
Return for Tax Deducted at Source 8
GSTR – 8
Annual Return
By 31st December of next FY 9
ITC Ledger of Taxpayer
Continuous 10
Cash Ledger of Taxpayer 11
Tax Ledger of Taxpayer

15. REVISION of RETURNS
All unreported invoices of previous tax period would be reflected in the return for the month in which they are proposed to be included. The interest, if applicable will be There would be no revision of returns.
auto populated.
All under-reported invoice and ITC revision will have to be corrected using credit/debit note and such credit / debit note would be reflected in the return for the month in which such adjustment is carried out. The credit/debit note will have provision to record original invoice, date etc. to enable the system to link the same with the original invoice as also to calculate the interest, if applicable. Its format will be like the invoice.

16. Reverse Charge Reverse Charge Mechanism [RCM]
Specific Cat of goods or services
Supply of taxable goods or services by URD
E-Commerce operator
Specified services – RCM
Others – Forward Charge
Goods – Forward Charge

17. Composition Levy
A registered person, whose aggregate turnover in the preceding financial year did not exceed the prescribed limit can opt for the scheme
Type of Supplier
Rate
Manufacturer
One per cent (CGST) + One per cent (SGST) +
Catering or Restaurant
Two and Half per cent (CGST) + Two and Half per cent (SGST)
Others
Half per cent (CGST) +Half per cent (SGST)

18. Composition Levy, contd…
Composition levy can be opted if not engaged in:
Supply of services except hotel & catering services
Making non-taxable supplies
Making any inter-state outward supplies
Manufacture of such goods as may be notified
Making supply of goods through e-commerce operator

19. Composition Levy, contd…
The registered person shall opt for composition scheme in respect of all for same PAN
Can’t collect any tax from recipient
Not be entitled for any credit
Government may by notification increase limit of aggregate turnover from time to time
Shall File quarterly returns

20. ROLE OF CMAs Advisory Role Consultancy Role Certification Role
Audit Role

21. THANK YOU