A PRESENTATION BY CS HARSH CHAUHAN ACCOUNTS OFFICER BSNL GST A BACKGROUND GST see light of day after 13 years long journey since first coined by Kelkar Task Force in 2003 FM Chidambaram declared in 200607 Budget speech that GST will be applicable by 01042010 ID: 561971
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Slide1
DRAFT GST ACT, 2016
A PRESENTATION
BY
CS HARSH CHAUHAN
ACCOUNTS OFFICER
BSNLSlide2
GST– A BACKGROUND
GST see light of day after 13 years long journey since first coined by
Kelkar
Task Force in 2003
FM Chidambaram declared in 2006-07 Budget speech that GST will be applicable by 01/04/2010
The 122
nd
Constitutional Amendment bill passed by Both houses of Parliament in Monsoon Session
GST to be applicable by 01/04/2017
Compensation for loss of revenue to states for 5 years
Setting up of GST Network, a NPO for IT infrastructure. Infosys as IT partnerSlide3
122
nd
Amendment Bill
The 122
nd
Constitutional Amendment bill passed by Both houses of Parliament has inserted following powers:
Art. 246A- Concurrent jurisdiction
Art.269A- Power of CG to levy and collect IGST on interstate sale including imports
Art. 366(12A)- GST defined as any tax on supply of goods or services or both other than on alcohol for human consumption
Art. 279A- Setting up of GST council
Art. 366(12) &26A- Goods & services defined
Authority for Center to levy non-
vatable
Additional Tax @1%- to be retaining by originating stateSlide4
GST– Salient Features
A multi point tax on value added at each stage
Destination based consumption Tax
(earlier origin)
Taxable event shifted to supply of goods or services
Unified tax regime with set-off of taxes paid at each stage so no cascading of taxes
Tax is only cost to end consumer
Facilitates ease of doing business, ‘focus on make in India’ subsuming Central & State Taxes
Set up of GST council to adjudicate on rates, levy, disputes & exemptions etcSlide5
TAXES subsumed in GST
Central Taxes
State
Taxes
Central Excise Duty
VAT
Additional Excise
Duty
Entertainment
Tax
Service Tax
Central Sales Tax
Additional Custom
Duty (CVD)
Octroi
& Entry Tax
Special Additional duty of custom SAD
Purchase Tax
Luxury Tax
Taxes on
lottery betting & gambling
Note: Taxes levied by local bodies is not covered in GSTSlide6
Goods & Services outside GST
The following goods & services are outside GST coverage:
Stamp duty
Customs duty- Basic & Safeguard
Tax on sale or consumption of electricity
Taxes levied by local bodies
Tax on alcoholic liquor for human consumption
Petroleum products
till notification
Taxes on vehicles, land & building & mineral rights
Toll charges
Professional Tax
Taxes on goods & passengers carried by road or on inland waterways
Taxes on transaction of securities in Stock ExchangesSlide7
GST– Tax Structure
The levy of Tax is destination based and is classified as either Intra State or Inter state or export or import
The GST is divided into CGST, SGST & IGST
Input of CGST can be
utilised
for payment of output CGST. Similar is case with SGST.
IGST to be levied on inter state sale is sum of CGST & SGST. The selling dealer will adjust IGST, CGST & SGST in order for payment of output IGST
The reverse Charge Mechanism extended to goodsSlide8
GST– Proposed Regime
The draft GST law has been prepared by Empowered Committee of finance Ministers
The draft Bill comprises 27 chapters divided into 178 clauses & 4 schedules. The 4 schedules are:
Schedule I- Matters to be considered as supply without consideration
Schedule II- Matters to be considered as supply of goods or services
Schedule III- Liability to be registered
Schedule IV- Activities or transactions in respect of which CG or SG or any local authority shall not be treated as taxable person
GST Valuation Rules & IGST Rules issued by CGSlide9
GST Act- An analysis
The GST Act comprehensively defines Turnover , business, business vertical, deemed export, goods & services, inputs, capital goods, market value, place of business, recipient etc
The Compulsory registration at aggregate turnover exceeding Rs. 9
Lakh
. For N.E. states & Sikkim, Rs. 4
Lakh
. Registration is done in state of place of business. Registration is PAN based
The liability of tax will arise at aggregate turnover exceeding Rs. 10
Lakh
. For N.E. states & Sikkim, Rs. 5
Lakh
. Composition scheme for dealers having turnover upto 50 L
The taxable event is supply of goods or services for consideration & importation without considerationSlide10
GST Act- An analysis
Payment of Tax shall be electronic mode
Refund of tax paid can be claimed in 2 years.
TCS by electronic operator at time of credit or payment whichever is earlier
The government may mandate certain departments to deduct TDS @1% on notified goods & services if contracted supply exceed Rs. 10
Lakh
Various Returns such as First Return, Monthly, Annual final, TDS Return, Return for Input Service Distribution & Return for composition Scheme Slide11
GST Act- An analysis
The valuation of goods and services shall be as per Valuation Rules
Departmental Audit & Special Audit has been prescribed
GST Compliance Rating score shall be granted to each assessee
Black listing of assesseeSlide12
GST Act- An analysis
The main definitions are analysed as under:
“Aggregate Turnover” means aggregate value of all taxable supplies, exempt supplies and export of goods and/or services of a person having same PAN but excludes: a) taxes paid under GST b) Inward supplies c) Taxes paid under
reverse charge