May 2017 GST where are we now Release of model GST law Nov 2016 Formation of GST Council and recommendation on GST law by GST Council Oct 2016 Final law to be released February 2017 ID: 590412
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Slide1
Implementation of Goods and Services Tax
May 2017Slide2
GST
where are we now
Release of
model GST law
(Nov 2016
)
Formation of GST Council and recommendation on GST law by GST Council
(Oct 2016)
Final law to be released
(February
2017)
Implementation of GST as proposed(July 2017)
Ratification by 50% States and Presidential Assent
(Aug / Sep 2016)
Recommendation by GST Council on GST law, rates, exemption etc.
(Nov 2016)
Migration of VAT dealers under GST regime in Maharashtra
(Nov 2016)
Migration of service providers under GST regime
(Jan 2017)Slide3
Preparation and submission of GST returnsSlide4
Returns
under GST (1/4)Slide5
Returns
under GST (2/4)Slide6
Returns under GST (3/4)
Composition Dealer
Quarterly
(GSTR-4)
–
18
th
Outward supplies
Monthly (GSTR-1)
–
10th
Inward supplies Monthly (GSTR-2) - 15th
Periodic Return (GSTR-3)20
th – Monthly
Invoice-wise details of inter-State and intra-State supplies made to registered persons and
inter-State supplies with invoice value more than two and a half lakh
rupees made to unregistered persons;Consolidated details of all intra-State supplies made to unregistered persons for each rate of tax; and State wise inter-State supplies with invoice value less than two and a half lakh rupees made to unregistered persons for each rate of tax; andDebit
and credit notes, if any issued during the month for invoices issued previously.
The details of inward supplies of goods or services or both furnished
shall
include, inter-alia-invoice
wise details of all inter-State and intra-State supplies received from registered persons or unregistered persons;import
of goods and services made; and
debit and credit notes, if any, received from supplier.
Part A of the return under sub-rule (1) shall be electronically generated on the basis of information furnished through returns in FORM GSTR-1, FORM GSTR-2.
Details of liability discharged / refund to be claimed to be included in Part B of the return in FORM GSTR-3
A registered person who has opted to pay tax under
composition scheme from the beginning of a financial
year, shall furnish the details of outward and inward supplies and the above three returns relating to the period during which the person was liable to furnish
such details
and returns till the due date of furnishing the return for the month of September of
the succeeding
financial year or furnishing of annual return of the preceding financial
year, whichever
is
earlier.Slide7
Returns under GST (4/4)
Annual Return (GSTR-9)
31
st
December
Non-resident (GSTR-5)
Monthly / Periodically 20
th
/7 days from last day of registration
Input Service Distributor (GSTR-6)
13
th – MonthlyTDS Return (GSTR-7)
10th - Monthly
Every registered non-resident taxable person to furnish
a return electronically including
therein the details of outward supplies and inward supplies and shall pay the tax, interest, penalty, fees or any other amount payable under
the Act or these rules within twenty days after the end of a tax period or within seven days after the last day of the validity period of registration, whichever is earlier.
Every Input Service Distributor shall, after adding, correcting or deleting the
details contained in FORM GSTR-6A, furnish electronically a return in FORM
GSTR-6, containing the details of tax invoices on which credit has been received and those
issued under section 20.
Every registered person required to deduct tax at source shall furnish a return electronically. Such details furnished
by the deductor
shall be made
available electronically to each of the suppliers in Part C of FORM GSTR-2A on the Common Portal after the due date of filing of FORM GSTR-7Every registered person, other than an Input Service Distributor,
or a non-resident taxable
person, shall
furnish an annual return as specified under sub-section (1) of section 44 electronically. A person paying tax under section 10 shall furnish the annual return inFORM
GSTR-9A.Every
registered person whose aggregate turnover during a financial year exceeds one
crore rupees shall get his accounts audited
and
he shall furnish a copy of audited annual accounts and a reconciliation statement,
duly certified
, in FORM
GSTR-9B.Slide8
Payment RulesSlide9
Payment of Taxes
Deposit of taxes, interest, penalty, fee or any other amount is to be made through internet banking, credit cards, debit cards, NEFT or RTGS
The Input Tax credit self assessed in the returns will be maintained in the electronic
credit
ledger;
The amount available in the electronic
cash ledger may be used for making payments of tax, interest, penalty, fees or any other amount payable under the act;
Credits of CGST, SGST and IGST may be used in the following manner.
7
Input CGST against –
CGST
IGSTInput SGST against –
SGSTIGST
Input IGST against –
IGSTCGST
SGSTUTGST
CGST
SGST
IGST
CGST
SGST
Input
UTGST against –
UTGST
IGST
UTGST
Every person who has paid the tax on goods and services or both shall be deemed to have passed the full incidence of such tax to the recipient.Slide10
Payment of Taxes
Sr.No.
Particulars
1
Availability of Electronic Tax Liability Register
The said register is to be maintained in
FORM GST PMT-01
for each person;
The amount payable is debited to the electronic tax register.
2
Electronic Credit Ledger
The ledger shall be maintained in FORM GST PMT-02 for each registered person eligible for input tax credit;The ledger shall be debited to the extent of any discharge of any liability;
The amount claimed as refund shall be debited in the said ledger;
In case the refund claimed is partially / fully rejected, the refund amount rejected shall be re-credited via an order made in FORM GST PMT-03
;Any discrepancy in the electronic credit ledger shall be communicated through the Common Portal in
FORM GST PMT-04.
3
Electronic Cash Ledger
This is to be maintained in
FORM GST PMT-05 for crediting the amount deposited and debiting the payment towards tax, interest, penalty, fee or any other amount;
Challan to be generated in
FORM GST PMT-06 on the Common Portal which is valid for a period of 15 days. On credit of the amount a Challan Identification Number (CIN) will be generated;
Amount can be deposited vide internet banking, credit cards, debit cards, NEFT, RTGS or Over The Counter payments through authorised banks for deposits
upto
Rs. 10,000/- per challan per period. This limit is not applicable to deposits made by:Government departments,
Proper officers authorised to recover outstanding dues from any person, including recovery made through attachment or sale of moveable or immoveable properties
Proper officer authorised for amounts collected by way of cash, cheque or demand draft.
Contd..Slide11
Payment of Taxes
Sr.No.
Particulars
Payment required to be made
by an
unregistered person
shall be made on the basis of a temporary identification number generated through Common Portal
Refund claimed and granted shall be credited to the electronic cash ledger.
4
Identification number for each transaction
A unique identification number (UIN) shall be generated at the Common Portal for each debit or credit to the electronic cash or credit ledger;
The UIN so generated shall be indicated in the corresponding entry in the electronic tax liability register.Slide12
Input Tax Credit (ITC) and
M
atching of ITCSlide13
Input
Tax Credit refers to credit of IGST/CGST/SGST paid on supply of goods/services for use in course or furtherance of business.
Within
one year from the date of invoice
Meaning
Time limit to take credit
Reversal requirements
Invoice/supplementary
invoice/debit note from a registered supplier
Goods/services are received
Tax is paid to appropriate Government
Furnishing of return
ITC to be availed earlier of September following end of
financial
year to which invoice relates or filing of relevant annual return
Where goods are received in instalments,
credit
can be availed after receipt of last lot.
ITC can be availed on receipt of invoices and goods/services. However, payment for the same needs to be made in
180 days
failing which credit
to
be
reversed along with applicable interest from the date of availment till
and re-availed once payment is made
Conditions for availing ITC
Supplies
used partly for business and partly for other purposes: ITC
restricted to business use
Supplies
used for taxable and exempt supplies: ITC
restricted to taxable
supplies
If
capital
goods on which ITC was availed is
supplied (sold or disposed-off),
higher of the amount equal to
% points
as may be
prescribed,
or tax on transaction value
to
be
reversed
Reversal
of credit
in cases
of
goods
lost,
stolen
,
written-off
or
disposed off by way of gifts or free samples
Input tax creditSlide14
Specific exclusions
Input tax credit (Continued)
Motor Vehicles (available if meant for resale or to provide specified services)
Goods/services acquired in the execution of works contract resulting into immovable property, except plant and machinery
Goods acquired, which are used in construction of immovable property except plant and machinery
Tax paid under Composition scheme
Goods/services used for personal consumption
Tax component on which depreciation is claimed under Income Tax Act, 1961
Goods or services in relation to Food and beverages, outdoor catering,
Goods or services in relation to beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre,
life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession,
Goods
lost, stolen, destroyed, written-off or disposed of by way of gits or free samples;Slide15
Distribution of input tax credit (ISD)
‘Input Service Distributor means an office of supplier of goods/services, which receives tax invoices for receipt of input services from vendors and distributes credit to other business units having same PAN
’
Conditions for distribution of
input
tax credit by
ISD
Credit availed on common input services, such as Consultancy, Audit, Legal, Marketing, etc., is to be distributed to all relevant units in the ratio of turnover of previous financial year
Services received specifically for a unit, to be distributed to the said
unit.
Credit available for distribution in a month should be distributed in the same month
Credit not to exceed the amount of ‘available’ credit
Credit to be distributed on the basis of ISD invoice
Manner
of distribution
Credits availed
Distributed as
Within same State
Inter-State
CGST
CGST
IGST
SGST
SGST
IGST
IGST
CGST/SGST
IGSTSlide16
Tax InvoicesSlide17
Tax Invoice
The
system should be
able to generate the invoice as prescribed
under Draft
GST Rules. The main components that should be present on the tax invoices are as follows
:
Name, address and GSTIN / UID Number (International organizations), if registered, of the recipient i.e. customer/location
receiving the goods/service
Name, address, State, State code and GSTIN number of
the respective supplierRunning / Consecutive serial number, in or multiple series containing alphabets, numerals, or special characters hyphen or dash and slash unique for a financial year
Date of invoiceDescription of goods/ services
(HSN) for goods/ Accounting codes (SAC) for services
(to be notified)
Taxable value of the supply
taking into account discount or abatement, if any
Rate and amount of CGST, SGST and IGST (UGST may also be captured as operations may be extended to Union Territories which are notified under GST)Total value of goods or services
Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commercesignature
or digital signature (rules to be notified) of the authorized signatorySlide18
Credit Note
The
system should be
able to generate
Credit Notes
as prescribed under Draft GST Rules. The main components that should be present on the
Credit Notes
are as follows:
GSTIN of
MHIPL entities
Name, address,
State and
State code of MHIPL entities
Nature
of the document
Running / Consecutive serial number containing only alphabets and/or numerals, unique for a financial year
Date of credit noteName, address and GSTIN / UID
Number (International organizations), if registered, of the customer receiving the goods/services
Serial number and date of the corresponding tax invoice
Description of goods/services
Rate and amount of CGST, SGST and
UTGST/IGSTTotal value of goods or services
Signature or digital signature (rules to be notified) of the
authorized signatory