Goods & Service Tax. (GST) BBNL Vendor MEET

Transcription

1 Goods & Service Tax (GST) BBNL Vendor MEET

2 Overview GST In short How to Charge Tax Changes Now Tax on both goods and services when supplied Replacing - Central Excise, Service Tax, VAT, Entry tax, CST, Octroi, etc. Dual GST State GST/Union Territory GST and Central GST levied on common base Integrated GST on inter-state supplies and import Decentralized registration and return compliances Shift to destination based tax in Place of Supply based Easy flow of credit (ITC) 2

3 Overview GST is a single indirect tax for goods and services across India Enables more and smooth flow of GST credits Avoids double taxation effect of indirect taxes Sale of goods within State SGST CGST Sale of goods with in Union Territory UTGST CGST Sale of goods between 2 states IGST 3

4 Overview What will be taxed? All good and services (certain exclusions) Imports Exports are taxed at zero rate When will be taxed? Destination based final consumer bears the tax Seller/service provider pays tax only on the value addition; & get full input tax credit Who will be taxed? All manufacturers, traders /dealers, importers / exporters and service providers. Small business / traders below a limit are exempted What will be the tax rate? Rate tax structure (0%,5%, 12%, 18% and 28%) Telecom Sector 18% OFC/GPON 18% PLB Ducts 18% 4

5 Overview Taxes replaced Central Taxes: Excise Duty Service Tax CST SAD CVD State Taxes: VAT Entry Tax/Octroi Entertainment Tax Luxury Tax Taxes not replaced Central Taxes: Basic Custom Duty Export Duties Clean Energy Cess Customs Cess State Taxes: Stamp Duty Property Tax Tax on liquor and petroleum products 5

6 Present Tax Structure Excise Duty & VAT/CST Wholesaler Retailer Manufacturer Consumer 6

7 Tax Structure under GST Wholesaler Retailer Manufacturer Consumer 7

8 Types of Supply Intra-state supply Location Location of Of Supplier supplier Place of supply SGST + CGST SAME STATE Same State 8

9 Types of Supply Inter-state supply Location of supplier Location of Supplier Place of supply IGST DIFFERENT STATE 9

10 Registration Law & Procedures 10

11 GST Registration Every person is required to take a registration in every state of supply if Total turnover > 20 Lakhs* * 10 lakhs for north eastern states Total Turnover = Taxable Supplies Interstate Supplies + + Exempt Supplies + Export of goods and /or services 11

12 GST Registration Multiple registrations Option for obtaining separate registrations for different business - Separate business verticals to have separate GST Registration Separate registration for each state/destination Two or more branches in single state Single registration Transition / Migration VAT / CST / Service tax dealers need to migrate under the GST law GST Registration number (GSTIN) to be obtained in the specified period currently open 12

13 Composition Scheme Conditions for availing composition levy Turnover less than 75 lacs PAN linked No tax collection No input tax credit Only intra- state sales Composition scheme is Optional Minimum prescribed rate of tax under Composition scheme:(% of turnover in a state during the year) Manufacturer 1% Trader 0.5% Restaurants 2.5% Composition scheme not applicable to the reverse charge segment 13

14 Reverse Charge Mechanism (i.e. liability to pay tax on a particular supply is on the recipient of supply) Situations where reverse charge will apply 1. Unregistered dealer selling to a registered dealer The registered dealer has to pay GST on the supply. 2. Services through an e-commerce operator If an e-commerce operator supplies services then reverse charge will apply on the e- commerce operator. For example, UrbanClap provides services of plumbers. UrbanClap is liable to pay GST and collect it from the customers instead of the registered service providers. 3. CBEC has issued a list of services on which reverse charge is applicable (no change from previous) non-corporates sources for security services, hiring of manpower, hiring of vehicles, leasing of vehicles, legal service charges, works contract) 14

15 E-way bill E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal) Movement of goods of more than Rs 50,000 in value cannot be made by a registered person without an e-way bill. E-way bill can be generated or cancelled through SMS. On generation, a unique e-way bill number (EBN) is allocated and is available to supplier, recipient, and the transporter. Unregistered persons who is receiving supply he or his transporter may also generate e-way bill However, where a supply is made by an unregistered person to a registered person, the receiver will have to do all the compliances as if he s the supplier 15

16 Distance Valid from Valid for Less than 100km Validity of an e-way bill Validity based on the distance travelled by the goods. Date & time at which e-way bill is generated 1 day 100km to 300km 300km to 500km 500km to 1000km 1000km or more Date & time at which e-way bill is generated Date & time at which e-way bill is generated Date & time at which e-way bill is generated Date & time at which e-way bill is generated 3 days 5 days 10 days 15 days 16

17 Return Filing 17

18 Returns under GST GSTR-1 GSTR-2 GSTR-3 Details of Sales 10th of the next month Details of Purchase 15th of the next month Monthly return 20th of the next month

19 GSTR-4 GSTR-6 Quarterly return (For composition dealers only) 18th of the next month following the quarter Input Service Distributor (ISD) 13th of the next month GSTR-9 Annual return 31st of 31st next December December of next year 31 Filing of late return - Penalty of Rs. 100 per day (Maximum Rs. 5000) 19

20 ReturnFlow (GSTR 1 GSTR 3) th of next month 15th of next month 20th of next month GSTR-1 GSTR-2 GSTR-3 GSTR-2A GSTR-1A 11 Auto-populated 11th of next month (Cross check of purchases) 17 Auto-populated 17th of next month (Cross check of sales) 20

21 Periodicity of returns - Excise Duty VAT / CST GST ER 1, ER 2, ER 6 Returns by 10th of next Month comparison Returns by 20th of next month/quarter (Varies as per state) Sales by 10th Purchases by 15th Monthly Return by 20th of next month Approx. 3 times a registered person need to access GST Portal each month. 21

22 Invoices 22

23 Information Required in a GST Invoice The tax invoice issued must clearly mention information the following : 1. Name, address and GSTIN of the supplier 2. Tax invoice number 3. Date of issue 4. The name, address and GSTIN of the recipient 6. HSN code of goods or accounting code of services 7. Description of the goods/services 8. Quantity of goods (number) and unit (metre, kg etc.) 9. Total value of supply of goods/services 10. Taxable value of supply after adjusting any discount 11. Applicable rate of GST 12. Amount of tax 13. Whether GST is payable on reverse charge basis 14. Signature of the supplier 23

24 Invoice Comparison Under Excise and VAT Complex format Under GST Simple format Multiple Invoices Excise, VAT, Service Tax One single invoice GST HSN Code required only in excise invoice HSN Code required on every GST invoice Time limit for issue of invoice Before or at the time of removal of goods 24

25 Copies of invoice Copies of invoice Original Copy Duplicate Copy Triplicate Copy Buyer Transporter Supplier 25

26 Stock Transfers Inter-State Under Current Law Exempt on submission of Form F Under GST As per sec 3 of Model GST, Supply includes stock transfer and the sender will have to issue invoice on cost price and show applicable GST, and also take ITC 26

27 Availability of credit Allowance of credit when supplier does not make tax payment and file return Matching of invoices Current Law Cenvat credit was allowed to buyer No such provision under Cenvat credit rules Under GST Input tax credit will not be allowed to buyer Input tax credit will be allowed to buyer only when outward return of supplier (GSTR-1) matches with the inward return (GSTR-2) of the buyer In GST, input tax credit shall not be allowed for goods lost, stolen, destroyed, written off or disposed as gift or free samples. Input tax credit of goods which are disposed as free samples is reversed. 27

28 Pre-requisite for Availing Input Tax Credit Possession of Tax Invoice or specific tax paying document Received the goods or services. Bill to ship scenario also included. Tax is actually paid by supplier. Furnishing of return. If inputs are received in lots but billed together, eligible to avail input tax credit only when last lot is received. The value of the goods or services along with the tax within 180 days from the date of issue of invoice is paid to supplier, failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest. 5% balance need to be considered. 28

29 Order of Utilization Tax to be paid Set off 1 Set off 2 SGST SGST/UGST IGST CGST CGST IGST IGST CGST SGST Conclusion: Credit shall be first utilized for payment of respective tax and balance for payment of other taxes. SGST and CGST can t be utilized against each other. 29

30 Transitional provisions The 15-digit provisional ID would work as the Goods and Services Taxpayer Identification Number (GSTIN) for the first initial few months. The norms for filing returns have been relaxed until September, 2017 by GST council. Month GSTR 3B (Summary of Inward & Outward Supply) GSTR 1 GSTR 2 (auto populated from GSTR-1) July, th August 1 st 5 th September 6 th 10 th September August, th September 16 th 20 th September 21 st 25 th September 30

31 Important Points for effective implementation of GST BBNL GST IDs for all States / UT s already circulated. Another copy is being provided in the meeting. Please ensure that for all supplies / services to either BBNL directly or through CPSU (BSNL/Railtel/PowerGrid/CDOT/NIC etc) are made using the correct GST ID of BBNL The invoices are issued with details as prescribed under GST. 31

32 Important Points Cont d.. Special request to the vendors / suppliers of BBNL through the three CPSUs and CDOT/NIC etc.: To enable BBNL to accept the purchases in its GST return an advance (scanned) copy of the invoice along with (scanned copy) of consignee receipt may be ed to the concerned PMU of BBNL of the state (with copy (cc) to bbnlgst@gmail.com) in which the supplies are made. 32

33 Important Points Cont d The entry of invoices is made in the GST Portal by the prescribed dates positively. Keep abreast with changes in the procedure of GST invoices, e-way bills, returns, target dates and take necessary action accordingly. Ensure that IT systems are GST ready. A copy of this presentation is being ed to all the persons attending this vendor meet & also be put on the BBNL website ie HSN codes uniformly to be mentioned. 33

34 Important Points Cont d. Service tax return of first quarter of needs to be filed by 15 th August 2017 & revision in 45 days. Bills for centage may be made at the PMUs Anti-profiteering rules. MPSTC Report revised format will be provided to include state-wise billing details apart from TDS. C-forms for supplies up to Billing for last 5% of the supply value. 34

35 Thank You 35