Understanding Goods and Services Tax

Agenda

 Journey so far
 Design of GST
 Main features of GST Law
 Administration and IT Network
 Benefits of GST and Way Forward

1
 The Journey so far
Constitution (122nd Amendment) Bill (CAB) Mar 2017
introduced in Lok Sabha
12 GST Council
Meetings
Constitution (115th
2014 CGST, SGST,
Amendment) Bill introduced
UTGST, IGST,
Compensation
Cess Bills
recommended
Announcement
to introduce GST 2011
by 2010
Aug
2016
2006 2013
Constitution Amendment
2009 Bill passed

Three committees constituted by EC and GSTN set up

First Discussion Paper (FDP) released by EC

2
The Effort and Work Done

31000 + 18000 +
30 + Industry Man Hours of
10 Years…
Sub-Groups & professionals discussion by
In Making
Committees trained GST Council

14 175 + Constitution
51000 +
Empowered Officers Amendment
Officers
Committee Meetings and 5 Laws
trained
Meetings approved by
collaborative
effort

3
Existing Indirect Tax Structure in India
Central Taxes State Taxes
• Central Excise duty • State VAT / Sales Tax
• Additional duties of excise • Central Sales Tax
• Excise duty levied under Medicinal • Purchase Tax
& Toiletries Preparation Act • Entertainment Tax (other than
• Additional duties of customs (CVD those levied by local bodies)
& SAD) • Luxury Tax
• Service Tax • Entry Tax (All forms)
• Surcharges & Cesses • Taxes on lottery, betting &
gambling
• Surcharges & Cesses
GST

Constitution amended to provide concurrent powers to both Centre & States to

levy GST (Centre to tax sale of goods and States to tax provision of services)
4
Understanding CGST, SGST, UTGST & IGST

State 1
Foreign Territory

State 2
Union territory

IGST Credit can be used for payment of IGST, CGST, SGST / UTGST in that order
5
Features of Constitution Amendment Act
 Concurrent jurisdiction for levy & collection of GST by
the Centre (CGST) and the States (SGST)
 Centre to levy and collect IGST on supplies in the
course of inter-State trade or commerce including
imports
 Compensation for loss of revenue to States for five
years
 GST on petroleum crude, high speed diesel, motor
spirit (commonly known as petrol), natural gas &
aviation turbine fuel to be levied from a later date on
recommendations of Council
6
GST Council - Constitution
 Consists of Finance Minister, the MOS (Finance)
and the Minister of Finance / Taxation of each
State
 Chairperson – Union FM
 Vice Chairperson - to be chosen amongst the
Ministers of State Government
 Quorum is 50% of total members
 Decision by 75% majority
 Council to make recommendations on everything
related to GST including laws, rules and rates etc.
7
GST Council - Decisions (1/2)
 Threshold limit for exemption to be Rs. 20 lac (Rs. 10
lac for special category States)
 Compounding threshold limit to be Rs. 50 lac – not
available to inter-State suppliers, service providers
(except restaurant service) & specified category of
manufacturers
 Government may convert existing Area based
exemption schemes into reimbursement based
scheme
 Four tax rates namely 5%, 12%, 18% and 28%
 Some goods and services would be exempt
 Separate tax rate for precious metals

8
GST Council - Decisions (2/2)

 Cess over the peak rate of 28% on specified luxury

and sin goods
 To ensure single interface – all administrative
control over
 90% of taxpayers having turnover below Rs. 1.5 cr
would vest with State tax administration
 10% of taxpayers having turnover below of Rs. 1.5
cr. would vest with Central tax administration
 taxpayers having turnover above Rs. 1.5 cr. would
be divided equally between Central and State tax
administration

9
Compensation Mechanism for States

Compensation = (State’s Revenue for FY 2015-16)*

14%x -State’s Revenue (for x year)

 Revenue of all taxes subsumed in GST by the

State for 2015 – 16 as the base
 Assumption of 14% Annual Growth Rate
 Compensation to be provided through Cess
 Cess only on few specified luxury and sin goods

10
Main Features of the GST Act (1/4)

 GST to be levied on supply of goods or services

 All transactions and processes only through
electronic mode – Non-intrusive administration
 PAN Based Registration
 Registration only if turnover more than Rs. 20 lac
 Option of Voluntary Registration
 Deemed Registration in three days
 Input Tax Credit available on taxes paid on all
procurements (except few specified items)
11
Main Features of the GST Act (2/4)

 Credit available to recipient only if invoice is

matched – Helps fight huge evasion of taxes
 Set of auto-populated Monthly returns and Annual
Return
 Composition taxpayers to file Quarterly returns
 Automatic generation of returns
 GST Practitioners for assisting filing of returns
 GSTN and GST Suvidha Providers (GSPs) to provide
technology based assistance
12
Main Features of the GST Act (3/4)

 Separate electronic ledgers for cash and credit

 Tax can be deposited by internet banking, NEFT / RTGS,
Debit/ credit card and over the counter
 Cross utilization of IGST Credit first as IGST and then as
CGST or SGST /UTGST
 Concept of TDS for Government Departments
 Concept of TCS for E-Commerce Companies
 Refund to be granted within 60 days
 Provisional release of 90% refund to exporters within 7
days
13
Main Features of the GST Act (4/4)

 Interest payable if refund not sanctioned in time

 Refund to be directly credited to bank accounts
 Comprehensive transitional provisions for smooth
transition of existing tax payers to GST regime
 Special procedures for job work
 System of GST Compliance Rating
 Anti-Profiteering provision

14
Appeals and Revision under GST
Proposed Structure of Appellate Tribunal
First Appellate Authority or
Revisional Authority
All Disputes except Place of supply
Place of Supply Disputes
Disputes One Appellate Tribunal
State President President
State Bench or Area Benches National Bench or Regional Bench

High Court

Supreme Court

15
GST Network (GSTN)

 A section 25 private limited company with Strategic Control

with the Government
 To function as a Common Pass-through portal for
taxpayers-
 submit registration application
 file returns
 make tax payments
 To develop back end modules for 25 States (MODEL –II)
 Infosys appointed as Managed Service Provider (MSP)
 34 GST Suvidha Providers (GSPs) appointed
17
16
Role of CBEC
 Role in Policy making: Drafting of GST Law, Rules &
Procedures – CGST, UTGST & IGST Law
 Assessment, Audit, Anti-evasion & enforcement under
CGST & IGST Law
 Levy & collection of Central Excise duty on products
outside GST – Petroleum Products & Tobacco
 Levy & collection of Customs duties
 Developing linkages of CBEC - GST System with GSTN
 Training of officials of both Centre & States
 Outreach programs for Trade and Industry

18
17
Benefits of GST

1 Overall reduction in Prices for Consumers

2 Reduction in Multiplicity of Taxes, Cascading and Double Taxation

3 Uniform Rate of Tax and Common National Market

4 Broader Tax Base and decrease in “Black” transactions

5 Free Flow of Goods and Services – No Checkpoints

6 Non-Intrusive Electronic Tax Compliance System

18
Way Forward
 Passage of CGST, UTGST, IGST & Compensation Law by
Parliament and passing of SGST laws by State
Legislatures
 GST Council to fit tax rates to various categories of
Goods or Services
 Rules relating to registration, returns, valuation,
transitional, Input Credit etc. to be finalized
 Migration and handholding of existing tax payers
 Outreach program for trade and industry
 Change Management
19
 Thank You

The following material is available on

www. cbec.gov.in
• Presentation on GST
• GST – Concept & Status
• FAQs on GST in English and ten regional
languages
• Model GST Law
• Draft Rules & Formats
• Constitutional Amendment Act
INDEX
Page

1. REGISTRATION 3

2. COMPOSITION LEVY 6

3. TIME AND PLACE OF SUPPLY 8

4. INPUT TAX CREDIT 10

5. TAX INVOICE 12

6. RETURNS 17

7. JOBWORK 21

8. TRANSITIONAL PROVISIONS 23

1
2
REGISTRATION
Registration is the most fundamental when Aggregate Turnover in a Financial
requirement for the identi!cation of Year exceeds Rs.20 Lakhs (Aggregate
tax payers to ensure compliance and to Turnover = Value of Taxable of Supplies
obtain a unique registration number for + Exempt Supplies + Inter State Supplies
the purpose of collecting tax on behalf of + Exports of both Goods and Services of
the Government and to avail ITC accrued persons having the same PAN calculated
on the inward supplies. on all India basis less tax under IGST,
CGST, SGST and Cess), except for Special
Bene!ts of registration Category States, where the threshold
Registration will confer the limit for aggregate turnover is Rs.10
following advantages to a taxpayer: lakhs.
• He is legally recognized as supplier
of goods or services. Exemption from registration
• He is legally authorized to collect Irrespective of the turnover, the
taxes from his customers and pass following dealers are exempted from
on the credit of the taxes paid on Registration:-
the goods or services supplied to • Agriculturist for the purpose of
the purchasers/recipients. Agriculture
• He can claim Input Tax Credit of • Supply of exclusively exempted
taxes paid and can utilize the same goods
for payment of taxes due on supply
of goods or services. Voluntary Registration
• Seamless "ow of Input Tax Credit A person not liable to be
from suppliers to recipients at the registered under the Act, may get himself
national level. registered voluntarily to avail ITC and
Threshold limit for registration pass on the ITC to the recipient.
Registration is mandatory

3
Compulsory Registration Registration process
The following class of persons shall • Application to be !led online within
compulsorily register.- 30 days of becoming liable;
a) Persons making Inter-State • Casual Dealers and non-resident
Taxable supply ; taxable person shall apply at
b) Casual Taxable person; least 5 days prior to the date of
c) Persons who are required to pay commencement of business (
tax under reverse charge; Period of Validation is as speci!ed
d) Persons who are required to pay in the application or 90 days from
tax as e-commerce operators; the e#ective date of registration
e) Non-resident taxable person; whichever is earlier and an advance
f ) Persons required to deduct tax deposit of tax, an amount equivalent
as TDS (Government Agencies, to the estimated tax liability of such
Department etc..,) person);
g) Persons required to collect tax • All the Core Fields (name of business,
as TCS (electronic Commerce principal place of business and
operator) stakeholders details, etc.) should be
!lled up;
Casual taxable person and a Non- • Scanned documents to be attached;
resident taxable person • Digital Signature or e-Sign should
A Casual taxable person is be done;
one who has a registered business in • Application to be processed within
some State in India, but wants to e#ect 3 common working days;
supplies in some other State in which he • If Application is successful the
is not having any !xed place of business. Registration Certi!cation will be sent
Such person needs to register in the in the PDF format to the e-mail;
State from where he seeks to supply as a • All Queries to be raised and
Casual taxable person. communicated by the proper o$cer
A Non-Resident taxable person is within 3 common working days –
one who is a foreigner and occasionally sent in PDF format to the e-mail of
wants to e#ect taxable supplies from any the applicant;
State in India, and for that he needs GST • Applicant should reply to query
registration. GST law prescribes special within 7 days- failure will entail
procedure for registration, as also for automatic rejection by the system;
extension of the operation period of • On receipt of reply, registration
such Casual or Non-Resident taxable should be granted / rejected within
persons. 7 days;
They have to apply for registration • Rejection of Application under CGST
at least !ve days in advance before will be a deemed rejection under
making any supply. Also, registration is SGST and vice-versa;
granted to them or period of operation is • Deemed Approval, if no query.
extended only after they make advance
deposit of the estimated tax liability.

4
Amendment in Registration: leading to change in PAN )
Except for the changes in some • Persons no longer liable to be
core information in the registration registered (Except when he is
application, a taxable person shall be voluntarily registered)
able to make amendments without • Registered taxable person has
requiring any speci!c approval from contravened provisions of the Act
the tax authority. In case the change is or Rules
for legal name of the business, or the • A composition supplier has not
State of place of business or additional furnished returns for 3 consecutive
place of business, the taxable person will tax periods/ any other taxable
apply for amendment within 15 days of person has not furnished returns for
the event necessitating the change. The a continuous period of 6 months
Proper O$cer, then, will approve the • Non-commencement of business
amendment within the next 15 days. within 6 months from date of
For other changes like the name of day- registration by a person who has
to-day functionaries, e-mail IDs, mobile registered voluntarily.
numbers etc. no approval of the Proper • Where registration has been
O$cer is required, and the amendment obtained by means of fraud, willful
can be a#ected by the taxable person on mis-statement or suppression
his own on the common portal. of facts, the registration may be
cancelled with retrospective e#ect.
Cancellation of registration
Cancellation of registration can Revocation of cancellation of
be done in the following circumstances registration:
• Transfer of business or Application for revocation
discontinuation of business or should be made within 30 days from the
merger date of service of cancellation order. The
• Death of the proprietor proper o$cer can revoke cancellation/
• Change in the constitution of reject application.
business. (Partnership Firm may be
changed to Sole Proprietorship due
to death of one of the two partners,

5
 Composition Levy
under GST - Regime
Turnover Limit, GST
Rates
www.gst.gov.in
COMPOSITION
LEVY
Small tax payers can opt to pay tax at Composition Rates
a "at rate and opt for composition of • For manufacturers, SGST 1% + CGST
tax if their annual aggregate turnover 1%
is within 75 lakhs. This option is • For hotels other than Liquor SGST
available for certain special category of 2.5% + CGST 2.5%
manufacturers and service providers • For others SGST 0.5% + CGST 0.5%
also. No input tax credit is available for
a compounding dealer. Compounding Return of a composition dealer
dealer cannot issue a tax invoice but A composition dealer instead of !ling
only a bill of supply. Compounding monthly return, has to !le return for
dealers are not permitted to collect tax each quarter in GSTR-4 within 18 days
after the end of such quarter. In GSTR-4,
Persons not eligible for Composition invoice wise details of inter-state and
• Supplier of Services other than intra-State supplies received from
Supplier of Restaurant service registered persons as well as unregistered
• Neither a Casual Taxable person nor persons, imports of goods and services,
a Non-Resident Taxable person. consolidated details of outward supplies,
• An Inter State supplier of Goods consolidated statement of advances
• Persons supplying Goods through paid/advances adjusted on account of
e-commerce operator receipt of supplies, debit note and credit
• Manufacturers of certain noti!ed note received and issued have to be
goods reported.
6
Conditions for Composition

• With respect to migrated dealer, the Goods in stock should not have been
purchased on Inter-State basis/ imports/ Stock Transfer.
• The Goods in Stock must not have been purchased from Un-registered Dealers,
and if purchased tax has to be paid under Reverse Charge mechanism.
• Composition dealers have to issue Bill of supply instead of Invoice
• In the Bill of supply, such dealer should mention “Composition Taxable person
not eligible to collect tax on supplies”.
• In Sign boards at prominent place of business he shall mention the words
“Composition Taxable person”.

Cancellation of registration

Failure to !le returns for 3 consecutive tax periods will lead to cancellation of
registration.

Transitional Provisions

Dealer paying tax in the composition scheme under the earlier law, but decided to
pay tax under Section 9 of the GST law (i.e. regular dealer), shall be eligible for ITC in
GST on the closing stock of goods purchased locally.
A dealer availing ITC under the earlier law, but decided to become a composition
dealer under Section 10 of the GST Law, shall have to pay an amount equivalent to
the credit of input tax.

7
TIME AND PLACE OF
SUPPLY OF GOODS &
SERVICES
TIME OF SUPPLY OF GOODS
Under GST, the point of taxation, i.e, • The date of receipt of goods, or
the liability to pay CGST/SGST will arise • The date of payment or
at the time of supply as determined for • 30 days from the date of issue
Goods & Services. of invoice by the supplier
(If it is not possible to determine under
The time of supply of Goods shall be the i), ii) or iii), the date of entry of supply
earlier of the following dates, namely :- in the books of the recipient)
• The date of issue of invoice by the
supplier (or the last date on which The time of supply of goods in case
he is required to issue the invoice) of vouchers shall be the earlier of the
or following dates, namely :-
• The date on which the supplier • The date of issue of voucher; or
receives the payment with respect • The date of redemption of voucher.
to the supply. (If the date could not be determined
then the date of periodical return !led
The time of supply of goods where tax or the date on which the CGST/SGST is
is to be paid on reverse charge shall paid
be the earlier of the following dates,
namely :-

8
TIME OF SUPPLY OF SERVICES
The time of supply of services shall be the earliest of the following dates,
namely:-
i. The date of issue of invoice or
ii. The date of receipt of payment.

The time of supply of services where tax is to be paid on reverse charge shall be
the earliest of the following dates, namely:-

i. The date of receipt of payment or

ii. 60 days immediate from the date of invoice.
If it is not possible to determine under( i) or ( ii), the date of entry

PLACE OF SUPPLY OF GOODS

(The place of supply of goods would be the location where the goods are delivered)

PLACE OF SUPPLY OF SERVICES

(The place of supply of services would be the location of recipient)

Service provided to Place of Supply

Registered Person – B2B Location of Recipient
Person other than a Registered the location of the recipient where the address
Person – B2C on record exists; and (“address on record” means
the address of the recipient as available in the
records of the supplier)
the location of the supplier of services in other
cases.
9
INPUT TAX
CREDIT
Uninterrupted and seamless chain of Under this new system, most of the
input tax credit (hereinafter referred indirect taxes levied by Central and the
to as, “ITC”) is one of the key features State Governments on supply of goods
of Goods and Services Tax. ITC is a or services or both, would be combined
mechanism to avoid cascading of taxes. together under a single levy.
Cascading of taxes, in simple language,
is ‘tax on tax’. Under the present system GST comprises of the following levies:
of taxation, credit of taxes being levied
by Central Government is not available • Central Goods and Services Tax
as set-o# for payment of taxes levied by (CGST) [on intra-state supply of
State Governments, and vice versa. goods or services or both].
One of the most important features of • State Goods and Services Tax (SGST)
the GST system is that the entire supply [on intra-state supply of goods or
chain would be subject to GST to be services or both.]
levied by Central and State Government • Integrated Goods and Services Tax
concurrently. As the tax charged by the (IGST) [ on inter-state supply of
Central or the State Governments would goods or services or both. In case
be part of the same tax regime, the of import of goods also, the present
credit of tax paid at every stage would levy of Countervailing Duty (CVD)
be available as set-o# for payment of tax and Special Additional Duty(SAD)
at every subsequent stage. would be replaced by IGST.]

10
Protocol to avail and utilise the credit of these taxes is as follows:

To be utilized !rst for Balance can be utilized for

Credit of
payment of payment of
CGST CGST IGST
SGST SGST IGST
IGST IGST CGST then SGST

Conditions for claiming ITC

(i) Tax- payer should possess tax invoice or debit note or any other tax paying
documents issued by supplier registered under the GST Act.
(ii) He should have received the goods or services or both.
(iii) Supplier should have reported the supply in the returns and should have
paid tax.

ITC not allowed in the following circumstances

(i) ITC not allowed for a composition dealer.
(ii) ITC not allowed for goods or services received by a non resident taxable
person except on goods imported by him.
(iii) ITC not allowed for goods or services used for personal consumption
(iv) ITC not allowed for Goods lost / stolen / destroyed / returned or disposed
of by way of gift /free samples.

Time limit for claiming ITC

ITC for a supply received in a !nancial year has to be claimed any time before the
!ling of returns for the month of September (of the following !nancial year) or the
relevant annual return whichever is earlier.

11
 TAX INVOICE
Issue of Invoice for Supply of goods Revised Invoice
When movement of goods is involved, The words ‘Revised invoices’ or
tax invoice has to be issued before or ‘Supplementary invoices’ should be
at the time of removal of the goods. mentioned prominently in such invoices
along with reference of the date and
When movement of goods is not invoice number of the original invoice.
involved, tax invoice has to be issued
before or at the time of delivery of goods Bill of supply
to the recipient or when the goods are A Bill of supply is a document issued
made available to the recipient. instead of a tax invoice. Bill of supply is
issued for the following supplies
Issue of Invoice for Supply of services • Supply of exempted goods or
In case of supply of services, tax invoice services, or
has to be issued within 30 days of supply • Supply made by a composition
of services. In case of banking, insurance taxpayer
and other !nance companies, invoice
has to be raised within 45 days of supply For all sales of exempted goods made
of services. for a value more than Rs.200/- and for all
sales made by a composition supplier for
Issue of invoice by an unregistered a value more than Rs.200/-, Bill of supply
person has to be issued. If the sales value is less
Only a registered person can issue a tax than Rs.200/-, Bill of supply need not
invoice. GST law speci!cally prohibits be issued unless the recipient demands
collection of tax by persons who are not for such a bill. At the end of the day, a
registered under the GST law. consolidated Bill of supply should be
12
prepared for all sales made for a value of Document for Reverse charge
less than Rs.200/-. Where tax is to be collected on reverse
charge basis, the recipient of goods or
Credit Note services has to issue a ‘payment voucher’
For issuing credit note, an invoice for a at the time of making payment to the
supply should have been issued earlier. supplier. The dealer is also required to
A credit note may be issued in the issue tax invoice mentioning that the
following circumstances tax has been collected on reverse charge
• The taxable value on which the tax basis.
collected is more than the actual
taxable value Contents of an INVOICE
• The tax charged is more than what A tax invoice should contain the
should have been charged following details:
• The recipient has returned the 1. Name, address and GSTIN of the
goods supplier
2. Consecutive serial number
Debit Note containing alphabets or numerals
A debit note may be issued in the or special characters hyphen (-) or
following circumstances slash (/) for a !nancial year.
• The taxable value on which the 3. Date of issue
tax collected is less than the actual 4. Name, address and GSTIN or UIN
taxable value of the recipient, if the recipient is
• The tax charged is less than what a registered dealer.
should have been charged 5. Name and address of
the recipient if the invoice value
Copies of Invoices is more than Rs.50,000/-
For supply of goods the invoice should 6. HSN code of goods or Accounting
be prepared in triplicate. Code of services
• The original copy being marked as 7. Description of goods or services
“ORIGINAL FOR RECIPIENT” 8. Quantity in case of goods
• The duplicate copy being marked and unit or Unique Quantity
as “DUPLICATE FOR TRANSPORTER” Code thereof
and 9. Total value of supply of goods or
• The triplicate copy being marked as services or both
“TRIPLICATE FOR SUPPLIER”. 10.Taxable value of supply of
For supply of services the invoice should goods or services or both
be prepared in duplicate. taking into account
• The original copy being marked as discount or abatement, if any
“ORIGINAL FOR RECIPIENT” 11.Rate of tax separately for
• The duplicate copy being marked as each type of tax (central tax,
“DUPLICATE FOR SUPPLIER”. State tax, integrated tax or cess)
12.Amount of taxcharged
(central tax, State tax, integrated

13
 tax or cess) 2. Consecutive serial number
13.If the supply is in the course containing alphabets or numerals
of inter-State trade or or special characters hyphen (-) or
commerce, place of supply along slash (/) for a !nancial year.
with the name of State. 3. Date of issue
14.Address of delivery, where the 4. Name, address and GSTIN or UIN
same is di#erent from the place of of the recipient, if the recipient is
supply a registered dealer.
15.Whether tax is payable on reverse 5. Description of goods or services
charge basis 6. Amount of advance taken
16.Signature or digital signature 7. Rate of tax (central tax, State tax,
of the supplier or his integrated tax or cess)
authorised representative 8. Amount of tax charged (central
tax, State tax, integrated tax or
Contents of a Bill of supply cess)
Bill of supply should contain the 9. If the supply is in the course
following details: of inter-Statetrade or commerce,
1. Name, address and GSTIN of the place of supply along with the name
supplier of State.
2. Consecutive serial number 10.Whether tax is payable on reverse
containing alphabets or numerals charge basis
or special characters hyphen (-) or 11.Signature or digital signature
slash (/) for a !nancial year. of the supplier or his authorised
3. Date of issue representative
4. Name, address and GSTIN or UIN Provided that where at the time of
of the recipient, if the recipient is receipt of advance,
a registered dealer. • The rate of tax is not determinable,
5. HSN code of goods or Accounting the tax shall be paid at the rate of
Code of services eighteen per cent
6. Description of goods or services • The place of supply is not
7. Signature or digital signature determinable, the same shall be
of the supplier or his treated as inter-State supply.
authorised representative
Content of a Refund Voucher
Contents of a Receipt voucher A dealer after receipt of advance
A Receipt voucher is a document issued payment against supply of goods or
when advance is received in relation to services subsequently makes no supply
supply of goods or services. A Receipt and issues no tax invoice, has to refund
voucher should contain the following the tax to the person who has made
details: the payment. For this purpose he has
to issue a refund voucher to the person
1. Name, address and GSTIN of the who has made the advance payment.
supplier A Refund voucher should contain the

14
following details: registered dealer.
1. Name, address and GSTIN of the 5. Description of goods or services
supplier 6. Amount paid
2. Consecutive serial number 7. Rate of tax (central tax, State tax,
containing alphabets or numerals integrated tax or cess)
or special characters hyphen (-) or 8. Amount of tax payable
slash (/) for a !nancial year. (central tax, State tax, integrated
3. Date of issue tax or cess)
4. Name, address and GSTIN or UIN 9. If the supply is in the course
of the recipient, if the recipient is of inter-State trade or commerce,
a registered dealer. place of supply along with the
5. Description of goodsor services in name of State.
respect of which refund is made 10.Signature or digital signature
6. Amount of refund made of the supplier or his authorised
7. Rate of tax (central tax, State tax, representative
integrated tax or cess)
8. Amount of tax paid in respect Contents of a Revised invoice, credit
of such goods orservices (central note and debit note
tax, State tax, integrated tax or A Revised invoice, credit note and debit
cess) note should contain the following
9. Whether tax is payable on reverse details:
charge basis 1. The word ‘Revised Invoice’,
10.Signature or digital signature of wherever applicable should be
the supplier or his authorised indicated prominently at the top
representative of the invoice
2. Name, address and GSTIN of the
Payment voucher supplier
Where tax is to be collected on reverse 3. Nature of the document
charge basis, the recipient of goods or 4. Consecutive serial number
services has to issue a ‘payment voucher’ containing alphabets or numerals
at the time of making payment to the or special characters hyphen (-) or
supplier. slash (/) for a !nancial year.
A Payment voucher should contain the 5. Date of issue of the document
following details: 6. Name, address and GSTIN or UIN
1. Name, address and GSTIN of the of the recipient, if the recipient is
supplier, if registered a registered dealer.
2. Consecutive serial number 7. Name and address of the
containing alphabets or numerals recipient and the address of
or special characters hyphen (-) or delivery, along with the name
slash (/) for a !nancial year. of State and its code, if such
3. Date of issue recipient is un-registered
4. Name, address and GSTIN or UIN 8. Serial number and date of the
of the recipient, if the recipient is a corresponding tax invoice or, as

15
 the case may be, bill of supply
9. Value of taxable supply of goods or services, rate of tax and the amount of tax
credited or, as the case may be, debited to the recipient and
10.Signature or digital signature of the supplier or his authorised representative

Tax invoice issued by an Input Service Distributor

The invoice should contain the following details:
1. Name, address and GSTIN of the Input Service Distributor
2. Consecutive serial number containing alphabets or numerals or special
characters hyphen (-) or slash (/) for a !nancial year.
3. Date of issue
4. Name, address and GSTIN of the recipient to whom the credit is distributed.
5. Amount of credit distributed
6. Signature or digital signature of the Input Service Distributor or his
authorised representative

Contents of a Delivery Challan

The delivery challan should contain the following details:
1. Date and number of the delivery challan
2. Name, address and GSTIN of the consignor, if registered
3. Name, address and GSTIN of the consignee, if registered
4. HSN code and description of goods
5. Quantity (provisional, where the exact quantity being supplied is not known)
6. Taxable value
7. Tax rate and tax amount – central tax, state tax, integrated tax or cess, where
the transportation is for supply to the consignee
8. Place of supply, in case of inter-State movement and
9. Signature

The delivery challan should be prepared in triplicate in the following manner:

1. The original copy being marked as “ORIGINAL FOR CONSIGNEE”
2. The duplicate copy being marked as “DUPLICATE FOR TRANSPORTER” and
3. The triplicate copy being marked as “TRIPLICATE FOR CONSIGNOR”.

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GST RETURNS
Every person registered under the Goods and Services Tax Act, 2017 has to !le
return. Under the GST law, a normal tax payer needs to !le monthly returns and one
annual return. Similarly, there are separate returns for tax payers registered under
the composition scheme, a non-resident taxable person, tax payer registered as
an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS).

All the returns have to be !led through online by using any of the following
methods:
• Through GSTN portal (www.gst.gov.in)
• Through o%ine utilities provided by GSTN
• Through GST Suvidha Providers (GSPs).

Return Description Who !les? Date for !ling

GSTR-1 Monthly Registered person 10th of the next month
statement for
outward supplies
of goods and
services
GSTR-2 Monthly Registered person 15th of the next month
statement for
inward supplies
of goods and
services

17
 GSTR-3 Monthly return for Registered person 20th of the next month
a normal taxpayer
GSTR-4 Quarterly return Composition 18th of the month
dealer succeeding the quarter
GSTR-5 Monthly return Non-resident 20th of the next month,
for a non-resident taxable person succeeding the tax period or
taxable person within 7 days after expiry of
registration
GSTR-6 Monthly return for Input Service 13th of the next month
an Input Service Distributor
Distributor(ISD)
GSTR-7 Monthly return Tax deductor 10th of the next month
for the authorities
deducting tax at
source
GSTR-8 Monthly return e-commerce 10th of the next month
for e-commerce operator
operator
GSTR-9 Annual return Registered person 31st December of the next
other than an !nancial year
ISD, TDS / TCS
Tax payer, casual
taxable person
and Non-resident
Tax payer
GSTR-10 Final return Taxable person Within 3 months of the
whose registration date of cancellation or date
has been of order of cancellation
surrendered or whichever is later.
cancelled

GSTR-1 (Statement of Outward Supplies)

In GSTR-1, supplies made to the registered dealers as well as unregistered dealers has
to be entered. If inter-state sale is made to an un-registered person, where invoice
value is more than Rs.2,50,000/-, it has to be separately shown. Consolidated amount
of Intra-State supplies made to un-registered persons for each rate of tax, Exempted
supplies, Nil rated supplies, Exports (including deemed exports) and non-GST,
Advances, if any, received by the dealer and supplies made through e-commerce
operator has to be shown separately. The supplier also has to mention the HSN
(Harmonized System of Nomenclature) for Goods and SAC (Accounting Code) for
Services.

18
GSTR-2 (Statement of Inward Supplies)
In GSTR-2, the details of inward supplies made from registered persons and
unregistered persons has to be entered. Details of debit notes/credit notes issued by
the supplier, details of inward supplies attracting reverse charge has to be entered.
Details of goods, capital goods and services procured from outside India has to be
reported. The details of total eligible input tax credit and input tax credit available
in the current tax period has to be disclosed. Supplies received from composition
taxable persons, unregistered persons and other exempt/Nil/non-GST supplies has
to be reported separately.

GSTR-3 (Complete Return)

Every registered person, other than an Input Service Distributor, a non-resident
taxable person, dealers paying tax under composition scheme and persons liable to
deduct or collect tax (TDS/TCS) has to furnish a return electronically (the inward and
outward supplies of goods or services or both, input tax credit availed, tax payable
and tax paid details) on or before 20th of the month succeeding the tax period.

GSTR-4 (Return of a composition dealer)

A composition dealer instead of !ling monthly return has to !le return for each
quarter in GSTR-4 within 18 days after the end of such quarter. In GSTR-4, invoice
wise details of inter-state and intra-State supplies received from registered persons
as well as unregistered persons, imports of goods and services, consolidated details
of outward supplies, consolidated statement of advances paid/advances adjusted on
account of receipt of supplies, debit note and credit note received and issued have
to be reported.

Process of return !ling

When the supplier reports the outward supplies made by him in GSTR-1 and submit
the same, the same will be auto populated in the receiver’s inward supply in GSTR-2.
However the receiver can modify, delete or include data submitted by the supplier
and re-submit the same from 11th to 15th of the month succeeding the said tax
period.

The supplier can either accept the modi!cation, deletion or addition of data
submitted by the recipient or reject the same. He has to do it on or before 17th, but
not before 15th day of the month succeeding the tax period. However, the details
furnished by the supplier and the return !led by the supplier is !nal.

HSN Code
It is mandatory to report HSN code at two digits level for taxpayers having annual
turnover in the preceding year above Rs.1.50 Crore but upto Rs.5.00 Crore and at four
digits level for taxpayers having annual turnover above Rs.5.00 Crore.

19
It will be optional for taxpayers having annual turnover less than Rs.1.50 Crore.
GSTR-9 (Annual return)
Every registered person, other than an Input Service Distributor, a TDS/TCS dealer, a
casual dealer and a non-resident taxable person has to furnish an annual return for
every !nancial year electronically in form GSTR-9 on or before 31st day of December
following the end of such !nancial year.

Revision of returns
No revised return is permissible under GST. The recti!cation of error or omission
in the return by !ling Credit Note/Debit Note can be made before !ling the return
for the month of September of the next !nancial year or before !ling the relevant
annual return, whichever is earlier.

Penal provisions relating to late !ling of Returns

• For late !ling of return other than annual return, late fee of Rs.100 for every day
during which such failure continues subject to a maximum amount of Rs.5000/-
per tax period will be levied.
• In case of late !ling of annual return late fee of Rs.100/- for every day during
which such failure continues subject to a maximum of Rs.0.25% of aggregate
turnover.

Penal provisions relating to non !ling of Returns

• If the supplier has not !led the return, then the input tax credit claimed by the
recipient will be reversed in the next return !led by the recipient.
• If the recipient has not !led the return, then the output tax liability will be added
to the corresponding output tax liability of the supplier in the next return.
• If a regular dealer has not !led return for 6 consecutive tax periods, his registration
will be cancelled.
• If a composition dealer has not !led return for 3 consecutive tax period, his
registration will be cancelled.

Relaxation in return !lling Procedure for the month of July and August 2017
As a measure to enable the tax payer to smoothly land to G.S.T regime, for
initial tax periods i.e , for July and August 2017, the tax payer can !le a simple return
in FORM GSTR-3B, containing summary of outward and inward supplies which shall
be submitted before 20th of the succeeding month. However,GSTR-1, GSTR-2 and
GSTR-3 in respect of the said two months shall be !led in the month of September
2017.

20
JOB WORK
Job-work means ‘any treatment or
process undertaken by a person on goods • The principal is allowed to do so. The
belonging to another registered person’. tax paid on inputs or capital goods
The one who does the said job would be (ITC) can be claimed by the principal
termed as ‘job worker’.The ownership of provided the inputs or capital
the goods does not transfer to the job- goods are received back within one
worker but it rests with the principal. The year and three years respectively.
job worker is required to carry out the
process speci!ed by the principal on the (Provided the principal had declared
goods. the unregistered job worker’s premises
as his additional place of business
Registration of a job worker or if the job worker is a registered
Job work is a service. Job worker is person or if supply of such goods
required to obtain registration if his are noti!ed by the Commissioner.)
aggregate turnover exceeds Rs.20 lakhs.
• If the inputs or capital goods
Procedural aspects for Job work are not received back or are
• A registered person under not supplied from the place of
intimation can send/receive inputs business of the job worker within
or capital goods without payment the prescribed time limit, it would
of tax, provided the inputs or capital be treated as supply and the
goods are brought back within one principal would be liable to pay tax.
year (for inputs) and three years (for
capital goods) of their being sent out.
21
Input Tax credit on goods supplied to job worker
The principal (a person supplying taxable goods to the job worker) shall be entitled
to take the credit of input tax paid on inputs sent to the job-worker for the job-work.
Further, the proviso also provides that the principal can take the credit even when
the goods have been directly supplied to the job-worker without being brought
into the premises of the principal. The principal need not wait till the inputs are !rst
brought to his place of business.

Time Limits for the return of processed goods

Inputs and Capital goods after processing shall be returned back to principal within
one year or three years respectively of their being sent out. Further, the provision of
return of goods is not applicable in case of moulds and dies, jigs and !xtures or tools
supplied by the principal to job-worker.

Maintenance of books of accounts

It is completely the responsibility of the principal to maintain proper accounts of job
work related to inputs and capital goods.

Treatment of the waste and scrap

The waste and scrap generated during the job work can be supplied by the job
worker directly from his place of business, on payment of tax, if he is registered. If he
is not registered, the same would be supplied by the principal on payment of tax.

Transitional provisions
Inputs, as such, or partially processed inputs which are sent to a job-worker prior
to introduction of GST under the provisions of existing law [Central Excise]and if
such goods are returned within 6 months from the appointed day [i.e. the date of
implementation of GST.] no tax would be payable. If such goods are not returned
within prescribed time, the input tax credit availed on such goods will be liable to
be recovered. If the manufactured goods are removed, prior to the appointed day,
without payment of duty for testing or any other process which does not amount
to manufacture, and such goods are returned within 6months from the appointed
day, then no tax will be payable. For the purpose of these provisions during the
transitional period, the manufacturer and the job-worker are required to declare the
details of such goods sent/received for job-work in prescribed format GST TRAN-1,
within 90 days of the introduction of GST.

22
 TRANSITIONAL
PROVISIONS
GST is a signi!cant reform in the !eld of opting to pay tax under regular
indirect taxes in our country. Multiple scheme in GST is eligible to carry
taxes levied and collected by the Centre forward ITC in respect of closing
and States would be replaced by one tax stock, provided the inputs are used
called Goods and Services Tax (GST). As for making taxable supplies and the
GST seeks to consolidate multiple taxes registered person is in possession of
into one, the transitional provisions is invoice evidencing payment of tax
required to ensure that the transition and such invoice were issued not
to the GST regime is very smooth and earlier than twelve months from the
hassle-free and no ITC (Input Tax Credit)/ appointed day.
bene!ts earned in the existing regime • The unavailed part of credit in
are lost. respect of capital goods under VAT
can be claimed as ITC under GST .
Transitional provisions relating to ITC
• The amount of input tax credit in Conditions to be ful!lled for carrying
the June 2017 return under VAT forward ITC
shall be carried forward as credit in The conditions to be ful!lled for carrying
the electronic credit ledger under forward the ITC from the existing law to
GST, provided the said credit is the GST are :
admissible as input tax credit under • Returns should have been !led for
GST law and returns have been !led the past six months
for the past six months. • The said credit should also be
• Taxable person opting to pay tax admissible in GST
under composition scheme in GST • Declaration forms in ‘C’, ‘F’, ‘I’‘E1’, ‘E2’
cannot carry forward credit from and ‘H’ should have been submitted
VAT return. for interstate sales e#ected for
• A composition dealer under VAT carrying over credit into GST
23
 • Apart from the above conditions the Transitional provisions in case of
dealer should !le GST TRAN-1 within Price revision in respect of existing
a period of ninety days from the contracts
appointed day ie. 1st July 2017. In case of upward price revision,
a registered person will issue a
Transitional provisions for ITC on supplementary invoice or debit notes
Inputs within 30 days from the date of revision
A registered person, other than a and such revision shall be treated as
manufacturer, who was not required supply under GST, and tax is payable
to be registered under Central Excise under this Act. In case of upward
not possessing invoice / any other revision, Registered Person may issue
documents evidencing payment of tax a supplementary invoice or credit note
shall be allowed to avail ITC as follows: within 30 days from such revision and
On goods which attract CGST @ 9% or credit note shall be deemed to have
more - 60% credit on CGST been issued in respect of outward supply
On goods which attract CGST less made under this Act. A Registered Person
than 9% - 40% credit on CGST will reduce his tax liability for such credit
note, subject to reversal of credit by the
However, if such goods have su#ered recipient.
IGST the amount of credit shall be 30% &
20% respectively. Penal provisions for wrong availment
of transitional credit
Transitional provisions relating to In case of wrong availment of ITC,
Jobwork / goods sent on approval the taxable person is liable to pay the ITC
basis/goods returned wrongly availed along with interest and
• GST is not applicable provided penalty. In case the wrong availment is
the said goods are returned to not willful, Penalty shall be ten percent
the Principal within a period of six of the tax wrongly availed or Rs.10,000/-
months or within the extended whichever is higher and in case of willful
period of two months. Further both wrong availment, the penalty shall be
the Principal and the Job worker equivalent to the tax wrongly availed.
shall declare the details of such
goods held in Form GST Tran-1.
• In case of goods returned by
registered tax payer, it shall be
treated as ‘Deemed Supply’ and
tax has to be paid by the person
returning the goods.
• In case of goods returned by un-
registered taxable person, the seller
of such goods will allow refund of
tax paid provided the goods are sold
or returned within six months of the
appointed day.
24
 Visit the links
by QR scanner

FINALGSTRULES PGST ACT 2017 (TAMIL)

http:/lgst.puducherN.gov.in/gd/gstrules.html

PGSTACT2017(ENGLISH) CGSTACT2017

IGST ACT 2017

•
[!] ..
http://sst.puducherrv.gov.infctd/GO/CGST-Act-2017.odf

FAQ ON GST- TAMIL

• ..
[!h: ..
http://gst.puduche rrv .gov .in/ctd/GO/IGST-Act-2017 .pdf

FAQ ON GST- ENGLISH

•1':'1
L:.l
•
•

http://gst.puducherrv.gov.in/ctd/GO/FAO-FIRST-EDITION-TAMILpdf

FAQON GST-MALAYALAM

•[!] ..
http://gst.puducherrv.sov.in/ctd/GO/FAO-SECONO-EDITION-ENGLISH.pdf

FAQ ON GST- TELUGU

•[!] .
http:!/Rst. puducherrv.!!ov.in/ctd/GO/FAO-FIRST·EDITION· MALAYALAM.pdf

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 Disclaimer
Views and contents in the publication is for reference purpose only. It cannot be
used for any legal purpose. The reader should rely only on the respective Act &
Rules published in the o$cial Gazzette. We can not be held liable for any loss or
damages caused in this regard.

26
_whoisaditya

04/22/2023

97708966