1. AFTER A LONG TIME (13 years), FROM ATAL(kelkar Task force) TO MODI
GST IN INDIA
AFTER A LONG TIME (13 years), FROM ATAL(kelkar Task force) TO MODI
11/21/2018
M D GARG & Company

2. It is designed to collect tax on the value-added at each stage of the production and supply of goods and service with the ITC .
Central GST Model
State GST Model
Dual GST Model
11/21/2018
M D GARG & Company, Indore

3. GST Dual (subsume the taxes)
CGST
SGST
Central excise duty
Service Tax
Add. Duties of customs in lieu of excise
Add. duties of customs in lieu of sales tax/vat
Central Sales Tax
VAT/Sales Tax
Entertainment tax (Unless it is levied by the Local Bodies)
Luxury Tax/taxes on lottery, betting and gambling
Entry tax in lieu of Octroi
Any other state cesses and surcharges
11/21/2018
M D GARG & Company

4. An ultimate unified destination based dual Tax reform in India
Reduce consumption cost
To boost the economy
Avoiding cascading effects
Removal of multilevel taxation
India become one market
Free flow of goods across the country
Decrease litigation being unified
11/21/2018
M D GARG & Company, Indore

5. person [indicative list of activities or transaction].
17/08/2016
Structure
The GST comprises 27 (25)chapters 178(162) clauses 4 schedules
Schedule Subject
Schedule-I Matters related to supply without consideration
Schedule-II Matters related to supply of goods or services
Schedule-III Liability to be registered
Schedule-IV Government body shall not be treated as a taxable
person [indicative list of activities or transaction].
11/21/2018
M D GARG & Company, Indore
M D GARG & COMPANY, INDORE

6. Supply has wider meaning then word supply has in dictionery
Supply includes 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.
It also includes importation of service, whether or not for a consideration.
11/21/2018
M D GARG & Company, Indore

7. Registration (Liability to tax will arise if the turnover exceeds Rs
Registration (Liability to tax will arise if the turnover exceeds Rs Lakh (5.00Lakh)
Compulsory
(Registerable in terms of Shedule –III)
Voluntarily
Aggregate turnover in a F Y exceeds Rs Lakh (4.00 Lakh in case North Eastern State including Sikkim) of a dealer has to registered himself by completing KYC norms, in the state from where taxable goods and services are supplied,
11/21/2018
M D GARG & Company, Indore

8. The way by which registration no. granted to dealer
1 & 2
3 to 12 Digit 14 15
Check
The way by which registration no. granted to dealer
Business identification no i.e. BIN
Blank for future
State code
PAN
11/21/2018
M D GARG & Company, Indore

9. Point of Taxation
Where the goods are movable, the date on which the goods are removed for supply to the recipient
In the case of immovable properties, it will be the
date on which the goods are made available to the
concerned person
Date of issue of invoice by the supplier
When payment is given to the supplier
Date when the receipt of goods is acknowledged by book entries by the recipient.
(Which ever is earlier)
*** Depend upon the T& C between two parties
11/21/2018
M D GARG & Company, Indore

10. (for Precious metals & Articles)
Tax Rates
Merit (Lower)Rate
For Basic items
Standard Rate
(Most of the items)
Nil Rate
(for Certain items)
Special Rate
(for Precious metals & Articles)
11/21/2018
M D GARG & Company, Indore

11. Illustration (Same State)
A Wholesale dealer in Madhya Pradesh, supply goods /services covered under taxable category,
NO cross Utilization of credit would be permitted
Bill NO 1
From
A to B
B to C
(10 % Pr)
B has to deposit tax
Goods value
200/-
220/-
CGST 10%
20/-
22/-
2/-
SGST 10%
240/-
262/-
236.00
11/21/2018
M D GARG & Company, Indore

12. Balance ITC can be adjust with liability of IGST.
17/08/2016
Illustration (Other State)
A Wholesale dealer in Madhya Pradesh, supply goods /services covered under taxable category,
Balance ITC can be adjust with liability of IGST.
Bill NO 1
Bal Input Credit of B
B to C
(10 % Pr)
B has to deposit tax
Interstate transaction,(Article 269A(1) central will collect the integrated goods & service tax ,(CGST+SGST)
Goods value
220.00
IGST 20%
40.00
44.00
4.00
Additional Tax 1%
2.20
266.20
6.20
11/21/2018
M D GARG & Company, Indore
M D GARG & COMPANY, INDORE

13. Setoff of ITC
SGST
IGST
CGST
11/21/2018
M D GARG & Company, Indore

14. Taxable supply Zero Rated Supply ITC Available Tax Free Supply
Not Available
Zero Rated Supply
ITC Available
Taxable supply
11/21/2018
M D GARG & Company, Indore

15. Refund (dealt with chapter X)
Other Issues
Payment of Taxes through net banking
Refund (dealt with chapter X)
Application in form before the expiry of 2 Years from the relevant date
TCS
E-commerce Operator like Amzon/Flipkart/Myntra collect the TCS , at the time of payment rec/debit
11/21/2018
M D GARG & Company, Indore

16. Inspection(survey ) (NO restriction in regard to time of inspection)
Authorized person not below the rank of Joint Commissioner ,where there is reason to believe that the someone has EVADE THE TAX through
> Suppressed any transaction or
>> claimed excess input tax credit or
>>> indulged in contravention of provisions of the Act and its rules,
can inspect goods in transit (clause 60 a&b and 61)/access to business premises (Clause 64).
11/21/2018
M D GARG & Company, Indore

17. Search <<60 (2) and 60 (3)>>
17/08/2016
Search <<60 (2) and 60 (3)>>
During the inspection or otherwise , Assessing officer not below the rank of Joint Commissioner has reason to believe that any goods /any documents/books/things liable to confiscation with the explanation the above are useful for or relevant to any proceedings under the Act are secreted in any place with the retained condition for so long as may be necessary.
The Provision relating to seizure are not properly explained
Power to arrest gives to commissioner , to be carried out by them through his authorized officer is harsh and apparently unfair Clause 73 (1) (i) (ii) and 73(2)
11/21/2018
M D GARG & Company, Indore
M D GARG & COMPANY, INDORE

18. GDP will be increased by 1 %to 2%
BIG DIFFERENCE
Patent , Trademark, Software, and copyrights etc. now will be treated as SERVICES
GDP will be increased by 1 %to 2%
11/21/2018
M D GARG & Company, Indore

19. M D GARG & Company, Indore
Thanks
M D GARG & Company, Indore
11/21/2018
M D GARG & Company, Indore