Click here to load reader

Gst presentation

Embed Size (px)

Citation preview

PowerPoint Presentation

1Goods and Service Tax (GST)Stuti

[email protected] 1

2An Overview on Indian EconomyPresent Tax Structure in India & Problems thereonConcept of GSTFeatures of GSTFundamentals of GSTSupply Chain of GSTGST FAQsGST Registration ProcedureGST Returns and PeriodicityOverall Benefits of GST

Presentation ContentsStuti

[email protected] 2

3Indias Economy is the seventh largest economy in the world measured by nominal GDP.The country is classified as newly industrialized country , one of the G-20 member, a member of BRICS and a developing economy with an average growth rate of approximately 7% over the last two decades.The Indian Economy has the potential to become the worlds 3rd Largest Economy by the next decade.Agriculture, Service and Industry are the major sector of Indian Economy.India has one of the fastest growing service sectors in the world which contributed to more than 57% of GDPAn Overview on Indian EconomyStuti

[email protected] 3

4Present Tax Structure in IndiaStuti

5Complex Tax System and Lacking stability.Multiplicity of Duties / TaxesCascading Effect of TaxesLack of uniformity of Provisions in State VAT StatuesExclusion of Services from State TaxationProblems with Present Indirect Tax StructureStuti

6GST The Solution to Indias Tax ProblemsA Common Tax on

Introduction of GST



[email protected] 6


GST is a single unified taxation system aiming to remove geographical barriers for trading and transform the entire nation into One Common Market Place.GST is a tax on goods and services with comprehensive and continuous chain to setoff benefits from the Producers Point and Service Providers Point up to Retailer Level.It is a Destination Tax similar to consumption tax . It is applied on the goods & services when a consumer buys them.It is based on duality concept of tax system. Under this system, tax is administered, collected and shared by both the Central and State Governments based on the nature of transaction i.e. inter state or intra state.

Concept of GSTStuti

Features of GST 8Destination based TaxationApply to all stages of the value chain Apply to all taxable supplies of goods or services (as against manufacture, sale or provision of service) made for a consideration except Exempted goods or services common list for CGST & SGSTGoods or services outside the purview of GSTTransactions below threshold limitsDual GST having two concurrent components Central GST levied and collected by the Centre State GST levied and collected by the StatesStuti


Fundamentals of GSTStuti

[email protected] 9

10Subsuming of Existing Taxes Stuti


StutiTaxes which are not to be subsumedBasic Custom DutyRoad & Passenger TaxToll TaxStamp DutyElectricity DutyExports Duty (export of certain goods which are not available in India in abundance)

12Supply of GoodsGST FlowGST CollectedA manufacturer of Fabric Material sells fabric to tailor for Rs. 100The manufacturer pays GST of Rs. 10 (say)10The tailor purchases fabric at Rs. 100 and adds value of Rs.30 and sell it to wholesaler at Gross Value of Rs. 130The tax on output will be 130*10%=13 but the tailor has already paid tax of Rs. 10 so, net GST payable is Rs. 3 (13-10)3The wholesaler buys shirt for Rs. 130 and adds value of (i.e. min margin) Rs. 20 and sell it to retailer for Rs. 150The tax on output will be 150*10%=15 .Net GST Payable = 15-13=22In final stage , a retailer buys the shirt from wholesaler for 150 and adds his margin of Rs. 10 (say) and sell to buyer at Rs. 160The output tax will be 160*10%=16Net GST payable=16-10-3-2=11The buyer buys shirt at Rs. 160Total GST payable by buyer=10+3+2+1=16 and no Credit is available to him

Supply Chain of GSTSimple Structure of GST ChainStuti

GST Scenario At a Glance13

CGST = 10CGST = 11 ITC = (10) 1

Tax Invoice (A)

Value= 100CGST= 10SGST= 10 120Tax Invoice (B)

Cost= 100Gross Value= 110CGST= 11SGST= 11 132Central Tax = 11( 10 + 1)

State Tax = 11( 10 + 1)SGST = 10SGST= 11ITC= ( 10) 1

AssumptionSGST= 10%Value Addition= 10%ITC= Input Tax CreditStuti

CGST= 10%SGST= 10%Value Addition= 10%ITC= Input Tax Credit13

14How will GST benefit Consumers?In GST, consumers will be benefitted mostly in two ways:-Firstly, all taxes will be collected at the point of consumption and transparency on taxation imposed. Secondly, once the barrier between States are removed, consumers will not end up paying tax on tax.Why is Dual GST required?India is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes through appropriate legislation. Both the levels of Government have distinct responsibilities to perform according to the division of powers prescribed in the Constitution for which they need to raise resources. So, Dual GST is introduced with the Constitutional requirement of fiscal federation. StutiGST - FAQS

[email protected] 14

Stuti15Who is liable to be registered under GST?Under GST, every assessee shall be liable to be registered in the state from where he makes taxable supply of Goods and Servicesif his aggregate turn over in a financial year exceeds RS. 20 Lakhs (threshold exemption Rs. 10 Lakhs for NE states).Irrespective of threshold exemption following categories of persons are required to be compulsorily registered:-Persons making any inter state taxable supply;Casual Taxable Persons;Persons who are required to pay tax under reverse charge;Non-Resident Taxable Persons;Persons who supply goods/services on behalf of other taxable persons whether as agent or otherwise;Input Service Distributer;Every Electronic Commerce Operator;Every Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than registered taxable person;Person who is required to deduct TDS u/s 37 of the ACT.Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendation of the Council


[email protected] 15

Stuti16What is Aggregate Turnover under GST ACT?Aggregate Turnover means the aggregate value of :-All supplies whether taxable or non-taxable, made by taxable person , whether on his account or made on behalf of all his principals ; of a person having the same PAN.Aggregate Turnover does not include value of all supplies on which tax is levied on reverse charge basis and value of inward supplies.What is the time limit for taking Registration?Any person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed.


[email protected] 16

Stuti17What are the tax rates in GST?Tax Rates in GST:-Merit Rate:Essential Goods and ServicesStandard Rate:Goods or Services in generalSpecial Rate:Precious MetalsNil Rate:Exempted Goods or ServicesUnder Compounding Scheme Tax Rate is 1% (as decided by GST Council) and input tax credit is not claimable under this scheme.There is ZERO RATE GST to exporters of Goods & Services.GST - FAQS

[email protected] 17

18GST Registration ProcedureStuti

[email protected] 18

Whether all assessees/dealers who are already registered under existing Central Excise, Service Tax, VAT, will have to obtain fresh registration of GST? Stuti19No, GSTN shall migrate all such existing tax payers to the GSTN network and department shall issue GSTIN and password.Existing tax payers is an entity currently registered under acts as specified below; Central ExciseService TaxVAT (except exclusive liquor dealers if registered under VAT)Entry TaxLuxury TaxEntertainment Tax (except levied by the local bodies)

[email protected] 19

GSTIN Stuti20Format of GSTIN22 AAAAA0000A 1 Z 5


Entity Number of the same PAN holder in a stateBy defaultCheck DigitEach Tax Payer will be allotted a State wise PAN based 15-digit Goods and Services Tax Payer Identification Number (GSTIN). During Migrating Process (Enrollment) to GSTN the data of existing tax payers is validated.For the purpose of enrollment, GST System portal has been created and after enrolment Assessee will be enabled as a registrant for GST Compliance requirement viz return filing, tax payment etc.

[email protected] 20

Stuti21Information Required for Enrollment with GST System Portal:-Provisional ID received from State/ Central AuthoritiesPassword received from the State/Central AuthoritiesValid Email AddressValid Mobile NumberBank Account NumberBank IFSCDocuments Required for Enrollment with GST System Portal:-Proof of Constitution of Business (Deed/Registration Certificate)Photograph of Promoters/Partners/Karta of HUF Proof of Appointment of Authorized Signatory Photograph of Authorized SignatoryOpening page of Bank Passbook/ Statement containing Bank A/c Number, Branch Address, Address of Account holder and few transaction details

Note: *DSC is mandatory for enrollment of Companies, LLPs and for other tax payers DSC is optional.*After enrollment Final Registration Certificate will be provided to the assesee after verification of documents (within 6 months) by proper officer center/state of concerned jurisdiction after appointed date.* One Pan allows one GST Registration in a state and if assessee has multiple businesses in one state then assesee may register one business entity at first and for remaining verticals within the State assessee has to get in touch with Jurisdictional Authority.

[email protected] 21

GST ReturnsStuti22Who needs to file Return in GST Regime?Every registered person is required to file return for the prescribed tax period.A return needs to be filed even if there is no business activity (i.e. Nil Return) during the said tax period of return.It does not matter whether you are a trader, manufacturer, reseller or a service provider, you only need to file GST returns.What are the features of GST Returns?Filing of returns would only be through online mode.Facilities of offline generation and preparation of returns will also be available but the returns prepared in offline mode will have to be uploaded.There will be a common e- return for CGST, SGST, IGST and Additional Tax.There would be no revision of Returns. Changes to be done in subsequent returns and all unreported invoice and ITC revision will have to be corrected using debit/credit note. These credit/debit notes would be reflected in the return for the month in which adjustment is carried out.

[email protected] 22

GST Returns and PeriodicityStuti23There are 19 forms for filing returns of GST by tax payers. For Regular Dealer

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-1Monthly10th of succeeding monthFurnish details of outward supplies of taxable and /or services affectedForm GSTR-2AMonthly11th of succeeding monthAuto-populated details of inward supplies made available to the recipient on the basis ofForm GSTR-1furnished by the supplierForm GSTR-2Monthly15th of succeeding monthDetails of inward supplies of taxable goods and/or services claiming input tax credit. Addition (Claims)or modification inForm GSTR-2Ashould be submitted inForm GSTR-2.Form GSTR-1AMonthly20th of succeeding monthDetails of outward supplies as added, corrected or deleted by the recipient in Form GSTR-2 will be made available to supplier.

[email protected] 23

GST Returns and PeriodicityStuti24

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-3Monthly20th of succeeding monthMonthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of taxForm GST-ITC-1Monthly11th of succeeding monthCommunicationof acceptance, discrepancy or duplication of input tax credit claimForm GST-3AMonthly15th of succeeding monthNotice to a registered taxable person who fails to furnish return under section 27 and section 31Form GSTR-9Annually31st December of Next FiscalAnnual Return furnish the details of ITC availed and GST paid which includes local, interstate and import/exports.

[email protected] 24

GST Returns and PeriodicityStuti25Tax Deductor

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-7Monthly10th of succeeding monthFurnish details of TDS DeductedForm GSTR-7AMonthlyTDS Certificate to be made available for downloadTDS Certificate capture details of value on which TDS is deducted and deposit on TDS deducted into appropriate Govt.

[email protected] 25

GST Returns and PeriodicityStuti26Aggregate Turnover Exceeds 1 Crore

Aggregate Turnover Exceeds 1 Crore

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-9BAnnuallyAnnual, 31st Dec of next fiscalReconciliation Statement audited annual accounts and a reconciliation statement, duly certified.

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-8Monthly10th of succeeding monthDetails of supplies effected through e-commerce operator and the amount of tax collected on supplies


[email protected] 26

GST Returns and PeriodicityStuti27Foreign Non-Resident Tax Payer

Aggregate Turnover Exceeds 1 Crore

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-5Monthly20thof succeeding month or within 7 days after the expiry of registrationFurnish details of imports, outward supplies, ITC availed, tax paid, and closing stock.

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-11Monthly28th of succeeding monthDetails of inward supplies to be furnished by a person having Unique Identification number

Government Departments and UN Bodies

[email protected] 27

GST Returns and PeriodicityStuti28Composite Tax Payer

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-4AQuarterly10th of succeeding monthDetails of inward supplies made available to the recipient registered under composition scheme on the basis ofForm GSTR-1furnished by the supplierForm GSTR-4Quarterly18th of succeeding monthFurnish all outward supply of goods and services. This includes auto-populated details fromForm GSTR-4A, tax payable and payment of tax.Form GSTR-9AAnnual31st Dec of Next FiscalFurnish the consolidated details of quarterly returns filed along with tax payment details.

[email protected] 28

GST Returns and PeriodicityStuti29Input Service Distributor

Aggregate Turnover Exceeds 1 Crore

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-5Monthly20thof succeeding month or within 7 days after the expiry of registrationFurnish details of imports, outward supplies, ITC availed, tax paid, and closing stock.

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-11Monthly28th of succeeding monthDetails of inward supplies to be furnished by a person having Unique Identification number

Government Departments and UN Bodies

[email protected] 29

GST Returns and PeriodicityStuti30Final Return For Taxable Person Whose Registration has been surrendered or cancelled

Aggregate Turnover Exceeds 1 Crore

Form TypeFrequencyDue DateDetails to be FurnishedForm GSTR-10MonthlyWithin 3 months of cancellation of registrationFurnish details of inputs and capital goods held, tax paid and payable.

[email protected] 30

How to File Your GST Returns???Stuti31

Let Us take Example of a Dummy CompanyOut Ward and Inward Supply Details of Furniture Ltd. For April

Bill No.Customer Bill 1A B LtdBill 2Q P Ltd.Bill 3C-02 Ltd.Bill 4J K Ltd.

Bill No.SupplierBill 25R J LtdBill 45D Ltd.Bill 02Z Ltd.Bill 50D Ltd.

[email protected] 31


On 10th May F Ltd. Uploads GSTR-1 with its outward supply bills .Also the suppliers RJ, D and Z also uploaded GSTR-1

[email protected] 32


On 11th May, F Ltd. View their inward bills through Form GSTR-2A which is auto populated

[email protected] 33


On 11th to 15th of May, F Ltd reconciles the bills shown in Form GSTR-2A by his suppliers, with their books During Verification, F Ltd finds that Bill 50 (purchase from D Ltd. ) is not reflecting in Form GSTR-2A

[email protected] 34


On 15th May, F Ltd. Uploads the missed out bill (Bill No.50) in Form GSTR-2 which will be made available to D Ltd. In GSTR-1A

[email protected] 35


Between 16th to 20th May, D Ltd. Verifies and accepts Bill 50.The accepted bill will be amended in Form GSTR-1accordingly



On 20th May, Automated Return Form GSTR-3 is available to F Ltd. For Submission and Payment

[email protected] 37

38In overall what Benefits we are going to achieve by application of GST???Easy ComplianceSimple to AdministerUniformity of tax rates and structuresRemoval of CascadingBetter Control on LeakageImproved CompetitivenessGain to Manufacturers and ExportersRelief in overall tax burden of consumers