CENTRAL BOARD OF EXCISE & CUSTOMS

CENTRAL BOARD OF EXCISE & CUSTOMS GST (Goods and Services Tax) www.cbec.gov.in www.aces.gov.in

CENTRAL BOARD OF EXCISE & CUSTOMS Concept of GST Registration g ITC Return PRESENTATION PLAN www.cbec.gov.in www.aces.gov.in

CENTRAL BOARD OF EXCISE & CUSTOMS CENTRE-STATE FINANCIAL RELATIONS The fiscal powers between the Centre and the States were clearly demarcated in the Constitution. The Centre had the powers to levy tax on the manufacture of goods while the States had the powers to levy tax on the sale of goods. In case of inter-state sales, the Centre levied the Central Sales Tax (CST) but, the tax was collected and retained by States. t As for services, it was the Centre alone that was empowered to levy service tax.

CENTRAL BOARD OF EXCISE & CUSTOMS Till Recently - INCIDENCE OF TAXATION State V.A.T. followed the destination based principle of taxation Central taxation followed the origin - based principle of taxation GST will follow oo the destination based principle cpe of taxation

CENTRAL BOARD OF EXCISE & CUSTOMS Taxes subsumed under GST CENTRAL TAXES Excise duty. Additional Excise Duty. Service tax. CVD (Counter Veiling Duty). SAD (Special Additional Duty). Central Cesses & Surcharges. VAT. CST. STATE TAXES Entertainment Tax. Luxury tax. Tax on Lottery, betting, gambling. Entry tax. Purchase tax State Surcharges & Cesses.

Applicability of GST Supply of goods & services (except in J & K) Within State Inter-state & Import CGST SGST IGST 6

TDS Limit for deduction of TDS has been decreased from Rs. 10 lacs to Rs. 5 lacs to Rs. 2.5 lacs value of supply. TDS provisions shall not apply to Inter State Supplies. 7

CENTRAL BOARD OF EXCISE & CUSTOMS Gst Benefits Reduction d in multiple l Tax and Simpler Tax System Single g point access Mitigate cascading/double taxation Uniform tax rate & uniform all India price Reduction in compliance cost & Less record keeping

Taxpayer Electronic Ledgers There shall be 3 (three) Running Electronic Ledgers maintained on the dashboard of taxpayer by GSTN on its portal i.e. i. Tax Liability Ledger: Liabilities of a taxable person. ii. ITC Ledger: ITC as self-assessed in the return shall be credited to his electronic credit ledger in the first instance. iii. Cash Ledger: Anyamount deposited to the account of the concerned Government (CGST, SGST & IGST). Details in these ledgers will get auto populated from the Details in these ledgers will get auto populated from the returns filed. 9

Modes of Payment under GST Payment of tax, interest, penalty, fee or any other amounts can be made: i. Through internet banking including by using credit card (CC) / debit cards (DC) (Mode I). ii. Over The Counter-OTC Payment (Upto Rs. 10,000) (Mode II). iii. Through National Electronic Fund Transfer (NEFT) / Real Time Gross Settlement (RTGS) ( Mode III). 10

CENTRAL BOARD OF EXCISE & CUSTOMS Registration ti

CENTRAL BOARD OF EXCISE & CUSTOMS Registration What, Why, Who, When, Where Annual turnover > 10 Lakhs for Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, & Uttarakhand Annual turnover > 20 Lakhs for all other States & UTs

CENTRAL BOARD OF EXCISE & CUSTOMS Registration What, Why, Who, When, Where Supplies > INR 20L Suppliers making (10L for some states) t inter-state supply Casual / Non-resident taxable persons UN Bodies Embassies Other Notified Person (e.g. Government Departments) Anyone liable for reverse charge Tax Deductors / Tax Collectors under GST Input Service Distributors (ISD) E-Commerce Operators Agent for registered principal i

CENTRAL BOARD OF EXCISE & CUSTOMS Pre-requisites for Registration Permanent Account Number (PAN) issued under the Income Tax Act, 1961 is necessary in order to be eligible for registration. Plus - Mobile No. And E-mail id

CENTRAL BOARD OF EXCISE & CUSTOMS A single entity may have multiple registrations state wise Registration ti is state tt specific and diff. regn. is reqd. for diff. state even for dealing with same goods o services. For supply of any number of goods or services or both even from different business locations (upto 500 such business locations) within a state tt a single Regn. Reqd. In the Registration form only around seven such goods or services can be mentioned but tthat t is the norm. Since the invoices will contain the details of all goods or services with their classification, hence only the top goods or services can be mentioned. But for diff. business verticals different registrations may be obtained even in the same state.

GSTN Enrollment Process 1 2 3 Taxpayer obtains GSTN login id and password from aces.gov.in Or gst.gov.in and click New User Login Taxpayer completes enrollment process on gst.gov.in Taxpayer obtains provisional i GSTIN on appointed date 16

CENTRAL BOARD OF EXCISE & CUSTOMS Registration What, Why, Who, When, Where Obtaining a GST registration number Commonly called the GSTIN PAN-based State-specific

CENTRAL BOARD OF EXCISE & CUSTOMS What is the Composition Scheme? For small taxpayers whose aggregate annual turnover (PAN-based) does not exceed INR 50 lakhs GST will be % of turnover GST will be % of turnover (not less than 2.5% for manufacturers & not less than 1% in other cases)

CENTRAL BOARD OF EXCISE & CUSTOMS Composition Scheme Conditions/Restrictions Turnover not exceeding INR 50L No interstate supply No Input Tax Credit Only for goods and manufacturers in selective cases E-commerce operators or service providers

ITC ( INCL. TRANSITIONAL PROVISIONS) & ISD

INPUT TAX CREDIT: CONCEPTS. Input tax credit means credit of input tax - section 2 (63) Input tax means - section 2 (62): Basket of CGST & IGST under CGST Act Basket of SGST & IGST under SGST Act Basket of UTGST & IGST under UTGST Act IGST under section 12 of IGST Act Tax charged on supply of goods and / or services used or intended to beused in the course of business in furtherance of business Includes tax paid on reverse charge basis under section 9(3) but does not include tax paid under Composition Levy.

Input means - section 2 (59): any goods (subject to certain exceptions) other than capital goods used or intended to be used by supplier in the course or furtherance of business subject to exceptions under Section 17(5) Capital goods specified in section 2 (19)-subject to exceptions under Section 17(5) Land Building or any other civil structures; Telecommunication towers Pipelines laid outside the factory premises. Input services means - section 2 (60): any services (subject to certain exceptions) used or intended to be used by supplier in the course or furtherance of business subject to exceptions under Section 17(5) 22

FEATURES OF ITC PROVISIONS. Full ITC allowed on capital goods in one go ITC of input tax paid on goods and / or services used for making taxable supplies by a taxable person allowed subject to fulfillment of four conditions section 16(2): 1.He should be in possession of tax paying document or debit note issued by a supplier; 2. He has received the goods and / or services; 3. The tax charged on such supply has been actually ypaid to the government; 4. He has furnished the return No ITC if value and tax, chargeable on goods/ services received, is not paid within 180 days from the date of Invoice- 2 nd Proviso to Section 16(2)

where a recipient fails to pay to the supplier of services, the value of supply of goods/services d/ along with tax payable within 180 days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon from the date of taking credit- Section 16(2) r/w Rule 37of GST Rules 24

Normally the ITC would be admissibleonly when the goods and / or services have been received by the taxable person Explanation to section 16(2) provides for deemedd receipt of goods by principal: i i l Taxable person would be deemed to have received the goods where the goods are delivered by the supplier to a recipient / any other person on the direction of such taxable person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise 25

No ITConaninvoice after the expiry of one year from the date of issue of such invoice - section 18 (2) No ITC beyond September of the following FY, to which invoice pertains, or date of filing of annual return, whichever is earlier - section 16 (4) i.e. last date to avail credit for F/Y 2017-18 will be 20.10.2018. No rectification is permitted after September of next FY or filing of annual return, whichever is earlier, 26

Manner of utilization of ITC Sec. 49(5): ITC of IGST can be utilized towards payment of IGST, CGST, SGST and UTGST in that order ITC of CGST can be utilized towards payment of CGST and IGST in thatt order ITC of SGST can be utilized towards payment of SGST and IGST in that order ITC of UTGST can be utilized towards payment of UTGST and IGST in that order No cross utilization is allowed. Un-utilized credit can be claimed as refund like in case of export or rate on input being higher than the output. 27

TRANSITIONAL PROVISIONS. ITC carried forward in the last return furnished under existing law admissible as ITC in GST regime - section 140 he should have furnished all Returns, for the period of past Six months creditshould beadmissible ibl under the present law the amount of credit does not relate to goods manufactured and cleared under exemption ITC on capital goods, not availed due to restrictions under earlier law, admissible as ITC in GST regime - section 140(2) credit should have been admissible under the existing law (C.Ex.Act) credit should be admissible under the present law (CGST Act) 28

Credit of duties and taxes in respect of inputs or input services during transit- Section 140(5)- Credit of duties and taxes in respect of inputs or input services, received on or after the appointed day but the duty or tax in respect of which has been paid earlier, shall be allowed:- If the invoice or any other duty/tax paying document of the same was recorded in the books of accounts within a period of thirty days from the appointed day: the aforesaid period of thirty days may be extended by Commissioner for a further period not exceeding thirty days, on sufficient grounds. he shall furnish a statement, in such manner as may be prescribed, in respect of credit so taken 29

INPUT SERVICE DISTRIBUTOR (ISD) 30

ISD provision is required to transfer ITC on input services availed in one office but the said services are actually used in different units registered in different States or business verticals located in a State ISD may distribute credit, if ISD & recipient are located in different States, Rule 39 of GST Rules CGST as IGST IGST as IGST SGST / UTGST as IGST ISD may distribute ib t credit, if ISD & business verticals are located in same State, CGST & IGST as CGST SGST & IGST as SGST UTGST & IGST as UTGST

Manner of distribution of credit by ISD Sec. 20 credit to be distributed under a prescribed document containing details as prescribed amount of credit to be distributed shall not exceed credit available for distribution credit of tax paid on input service attributable to a recipient of credit shall be distributed only to that recipient credit of tax paid on input services attributable to more than one recipient shall be distributed to all such recipient in than one recipient shall be distributed to all such recipient in the ratio of their turnover during the relevant period

ITC carried forward in the last return furnished under earlier law admissible as ITC in GST regime - section 140 credit should be admissible ibl under the GST Act ITC in respect of services received under the earlier law can be distributed ib t d by ISD as credit under the present law even if the invoices are received on or after the appointed day - section 140(7)

RETURN

Types of GST Returns Monthly Format Description Due date GSTR 1 Statement of Outward Supplies 10 th of next month GSTR 1: Statement for Outward Supplies A Supplier Taxpayer is required to prepare GSTR 1 wherein they will report invoice level information. GSTR 1 needs to be filed even if there is nobusiness activity (i.e. Nil Return) during the period of return. Supplier Taxpayer will file return in electronic form only. An invoice cannot have two different places of supply. POS should be a mandatory field in the inter-state invoice.

Types of GST Returns Monthly GSTR 2: Statement of Inward Supplies Format Description Due date Receiverer Taxpayer Statement of Outward 10 th of next can Accept/Reject/ GSTR 1 Supplies month Add any missing Statement of Inward 15 th of next GSTR 2 Supplies month invoices in the GSTR-2. After executing all the necessary actions, receiver taxpayer can file the GSTR 2. GSTR 2 needs to be filed even if there is no business activity (i.e. Nil Return) during the period of return. Receiver Taxpayer will file return in electronic form only. GSTR 2 can be filed only after 10 th of the succeeding month. Why?

Types of GST Returns Monthly Format Description Due date GSTR 1 Statement of Outward 10 th of next Supplies month GSTR 2 Statement of Inward 15 th of next Supplies month GSTR 3 Monthly Return 20 th of next month GSTR 3: Statement for Monthly Return Auto-populated based on GSTR-1 and GSTR-2

Types of GST Returns Monthly Format Description Due date GSTR 1 Statement of Outward 10 th of next Supplies month GSTR 2 Statement of Inward 15 th of next Supplies month GSTR 3 Monthly Return 20 th of next month GSTR 5 Return for Non Resident Suppliers 20 th of next month or 7 days from expiry of Registration GSTR 6 Return for ISD 13 th of next month GSTR 7 Return for TCS Deductors 10 th of next month GSTR 8 Supplies through E Commerce Suppliers GSTR 11 Inward supplies by UIN Quarterly GSTR 4: Compounding taxpayer Due Date: 18 th of month in Next Qtr Annual GSTR 9 : Annual GST Return GSTR 9A : Annual return for Compounding Taxpayer GSTR 9B:Reconciliation Statement Due: 30 th December following end of Financial Year Unscheduled GSTR 10: Final return after cancellation, within three month of cancellation

Returns for Taxpayers Where can I file my GST Returns? GST Portal Through a GSP ffli ili www.gst.gov.in GST Suvidha Provider GST Offline Utility Software

GSTN Portal Help For any assistance with GSTN Common Portal, contact t GSTN helpdesk: 0124-4688999 helpdesk@gst.gov.in http://tutorial.gst.gov.in http://tutorial.gst.gov.in/video/ https://www.gst.gov.in/help/faq/ 40

CBEC Help Mobile apps: CBEC GST in Playstore www.cbec.gov.in (Link: GST) 41

CENTRAL BOARD OF EXCISE & CUSTOMS Thank you www.cbec.gov.in www.aces.gov.in