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Implementation of Goods and Services Tax Implementation of Goods and Services Tax

Implementation of Goods and Services Tax - PowerPoint Presentation

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Implementation of Goods and Services Tax - PPT Presentation

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

credit tax gst goods tax credit goods gst services input gstr amount state form return person supplies invoice details registered igst number

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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