GST - ROLE OF CMAs - PowerPoint Presentation

Slide1

GST - ROLE OF CMAs

BY

AVNS

NAGESWARA RAO

COST ACCOUNTANTSlide2

Goods and Service Tax [GST]

Is a destination based tax on consumption of goods and services that accrues to the taxing authority, which has jurisdiction over the place of consumption [place of supply]

Levied at all stages right from manufacture up to final consumption

Credit of taxes paid at previous stages available as setoff.

The net result:

Only value addition will be taxed and

Burden of tax is to be borne by the final consumerSlide3

GST replaces [subsumes] the following:I. Central Taxes:

Central Excise duty

Duties of Excise (Medicinal and Toilet Preparations)

Additional Duties of Excise (Goods of Special Importance)

Additional Duties of Excise (Textiles and Textile Products)

Additional Duties of Customs (known as

CVD

)

Special Additional Duty of Customs (SAD)

Service Tax

Central Surcharges and

Cesses

so far as they relate to supply of goods and servicesSlide4

II. State Taxes [As applicable]:

State VAT

Central Sales Tax

Luxury Tax

Entry Tax (all forms)

Entertainment and Amusement Tax (except when levied by the local bodies)

Taxes on advertisements

Purchase Tax

Taxes on lotteries, betting and gambling

State Surcharges and

Cesses

so far as they relate to supply of goods and servicesSlide5

LEVY OF GST

GST

is levied by the Centre and Respective States simultaneously, on a common tax base [a dual levy]

On intra-State supply of goods and / or services

levied by:

Centre —

CGST

The Respective States—

SGST

On inter-state supply of goods and services—

IGST

[

CGST+SGST

], levied and administered by Centre.Slide6

GOVERNING ACTS, RULES and FORMS: ACTS:

Central Goods and Services Tax Act, 2017

UT Goods and Services Tax Act, 2017

Respective State Goods and Services Acts

RULES and FORMS:

Registration Rules and Forms

Composition Rules and Forms

Determinations of Value Rules

Invoice Rules and Forms

Payment Rules and Forms

ITC Rules and Forms

Accounts and Records Rules

Return Forms etcSlide7

CRITICAL AREAS of GST

Important Definitions

Registration

Time and Place of Supply

Valuation of supply

Input Tax credit

Composition scheme

Filing of Returns, etcSlide8

Supply

“supply” includes––

(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;

(b) import of services for a consideration whether or not in the course or furtherance of business;

(c) the activities specified in Schedule I, made or agreed to be made without a consideration; and

(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.Slide9

Business

(

17) “business” includes––

(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit

;

(

b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);

(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;

(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business; Slide10

(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises;

(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;

(h) services provided by a race club by way of

totalisator

or a licence to book maker in such club ; and

(

i

) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;Slide11

Input Tax Credit

Input tax Credits (‘ITC’)

Order of utilization:

First utilize for

CGST

Next utilize for IGST

CGST

CGST

SGST

IGST

Input Credit of Available for

credit against

Output

Liability of

ü

üSlide12

Input tax Credits (‘ITC’)

Order of utilization

First utilize for

SGST

Next utilize for

IGST

SGST

CGST

SGST

IGST

Input Credit of Available for

credit against

Output

Liability of

ü

ü

…. Contd.

15Slide13

Input tax Credits (‘ITC’)

Order of utilization:

IGST can be utilized against IGST or CGST or SGST in that order only

IGST

IGST

CGST

SGST

Input Credit of Available for

credit against

Output

Liability of

ü

ü

ü

13

.... Contd.Slide14

RETURNS-IMPORTANT POINTS

S

No

Returns/ Ledger

For

To be filed by

1

GSTR - 1

Outward supplies made by taxpayer (other than compounding taxpayer and ISD)

10

th

of the next month

2

GSTR – 2

Inward supplies received by a taxpayer (other than a compounding taxpayer and

ISD

)

15

th

of the next month 3

GSTR – 3

Monthly return (other than compounding taxpayer and ISD) 20

th of the next month 4GSTR – 4

Quarterly return for compounding Taxpayer 18th of the month next to quarter

5GSTR – 5

Periodic return by Non-Resident Foreign Taxpayer

Last day of registration

6

GSTR – 6

Return for Input Service Distributor (ISD)

15

th

of the next month

7

GSTR – 7

Return for Tax Deducted at Source

10

th

of the next month

8

GSTR – 8

Annual Return

By 31

st

December of next FY

9

ITC Ledger of Taxpayer

Continuous

10

Cash Ledger of Taxpayer

Continuous

11

Tax Ledger of Taxpayer

ContinuousSlide15

REVISION of RETURNS

All unreported invoices of previous tax period would be reflected in the return for the month in which they are proposed to be included. The interest, if applicable will be There would be no revision of returns.

auto populated.

All under-reported invoice and ITC revision will have to be corrected using credit/debit note and such credit / debit note would be reflected in the return for the month in which such adjustment is carried out. The credit/debit note will have provision to record original invoice, date etc. to enable the system to link the same with the original invoice as also to calculate the interest, if applicable. Its format will be like the invoice.Slide16

Reverse ChargeSlide17

Composition Levy

A registered

person, whose aggregate turnover in the preceding financial year did not exceed

the prescribed limit can opt for the scheme

Type of Supplier

Rate

Manufacturer

One per cent (CGST) + One per cent (SGST) +

Catering or Restaurant

Two and Half per cent (CGST) + Two and Half per cent (SGST)

Others

Half per cent (CGST) +Half per cent (SGST)Slide18

Composition Levy,

contd

…

Composition levy

can

be opted if

not engaged in:

Supply

of services except hotel & catering

services

Making

non-taxable supplies

Making

any inter-state outward supplies

Manufacture of such goods as may be notifiedMaking supply of goods through e-commerce operatorSlide19

Composition Levy, contd

…

The

registered person shall opt for composition scheme in respect of

all for same PAN

Can’t

collect any tax from recipient

Not

be entitled for any credit

Government may by notification increase limit of aggregate turnover

from time to time

Shall File

quarterly returnsSlide20

ROLE OF CMAs

Advisory Role

Consultancy Role

Certification Role

Audit RoleSlide21

THANK YOU