IMC Mumbai
Frontend Business
Process on
GST Portal
Presentation By: Bhagwan Patil
VP, GSTN
Venue: IMC Mumbai
May 13, 2017
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
GSTN – Basic Information
Mandate of GSTN
GSTN IT Strategy
GSTN for CBEC/States/UTs
Registration and Enrollment Process
Returns: Online/Offline Utility
Payments
GSP Ecosystem
Training
Agenda
1.
2.
3.
4.
Registration,
Invoicing,
Returns and other records / documents –
Presentation on contents and return columns
explanation, cross-matching, corrections, etc
Forms/Annexures/Challans etc. under VAT/CST/
Central Excise/Service Tax
Type
VAT / CST
Central
Excise
Service Tax
Total
Annexure
317
317
Challan
10
1
1
12
Declaration
28
1
3
32
Form
Requisition Form
97
10
13
2
112
10
Transit Pass
2
2
Worksheet
4
4
Invoice Format
5
5
Register
1
Total
473
16
1
GST
Forms
6
Annexures
GST
12
10
495
Challan
1
Goods and Services Tax Network (GSTN):
The IT Backbone of GST
a. About 85 Lakhs taxpayers;
b. 260 to 300 Crores B2B
invoice data per month
c. More than 120,000 tax
officials to work
d. Monthly filing of returns
e. Credit of ITC
f. Creation of Business
Intelligence reports and
Analytics
g. Both Central and States
Tax Departments
•
Strong IT
Infrastructure
•
Independent
•
Flexibility of Pvt
Sector
•
Strategic
Control of Govt
GSTN’s Mandate
1. A not-for-profit, non-Government, private limited company
promoted jointly by the Central and State Govts.
2. Mandate of GSTN
a) Build GST IT System to provide shared IT infrastructure
and services to Central and State Governments, taxpayers and other stakeholders for implementation of
GST.
b) Develop Common Registration, Return Filing and ePayment services running on a Common GST Portal
c) Integration of Common GST Portal with existing tax
administration systems of Centre and States
d) Build efficient and convenient interfaces for tax-payers
GST IT Strategy
Harmonization of Business
Processes and Formats
Autonomy of back-end systems of
States and Centre
Common & Shared
IT Infrastructure
Front-end
Statutory Functions
Non-Statutory Functions
• Core Services
– Registration
– Returns
– Payments
• Helpdesk support
• Information on Inter-State supply
and cross-credit utilization
• Analytics
• IGST Settlement
Centre/States
Tax IT Systems
IT
Interfaces
Approval of Registration
Assessment
Refunds
Audit and Enforcement
Adjudication
Internal workflows to support
above functions
• Recovery
• Analytics and BI
•
•
•
•
•
•
Back-end
GST IT Strategy
Tax Authority
State / Centre Tax
IT Systems
Interface
GSTN IT Systems
Taxpayer
GST Common Portal
State/Centre Portal
API
Interface
State/ Centre
Application
Accounting
Agencies &
Treasuries
Common
Portal
Database
State /
Centre
Database
API
Interface
GST
Application
API
Interface
Network of
Banks & RBI
Model 1 & Model 2 States
Sl.N
o.
Model 2 States
27
1
Model 1
States/CBEC
Andhra Pradesh
Arunachal Pradesh
Odisha
2
Goa
Assam
Puducherry
3
Haryana
Bihar
Punjab
4
Karnataka
Chhattisgarh
Rajasthan
5
Kerala
Delhi
Telangana
6
Maharashtra
Gujarat
Tripura
7
Meghalaya
Himachal Pradesh
Uttar Pradesh
8
Sikkim
Jammu &Kashmir
Uttarakhand
9
Tamilnadu
Jharkhand
West Bengal
10
CBEC
Madhya Pradesh
Chandigarh
11
Manipur
Dadra &Nagar Haveli
12
Mizoram
13
Nagaland
Daman & Diu
Andaman /Lakshadweep
Registration Under GST
Registration under GST
• One registration for both Central and State Act
• GST Identification Number (GSTIN) is PAN based
• Online authentication of documents issued by other government
agencies
– PAN of business entity from CBDT
– PAN of promoter from CBDT
– Aadhaar of promoter from UIDAI
– CIN/DIN of applicant company from MCA
– IEC from DGFT
– If state power distribution companies can share address of premises
owner (like Maharashtra) then address verification can also be
automated.
– If Registration of partnership and trust etc. also gets standardized
across all states, that can also be automated leading to same day
generation of Registration Certificate
• Issue of RC limited to 3 working days
• Taxpayer can edit all fields except 7 of them
Structure of Registration number
State
Code
1 2 3
PAN
4
5 6 7 8
9
10
11
Entity
Blank
Code
12
13
14
Check
Digit
15
State Code: As per Census Code (ex Delhi’s code is
07)
Entity Code: Alpha-numeric (1-9 and then A-Z); To be
assigned depending on the number of registrations a legal
entity (having the same PAN) has within one State
Check Sum: A form of redundancy check used for error
detection on identification numbers which have been input
manually
Migration of existing Taxpayers
• All Taxpayers who have valid PAN will be migrated to GST
• It has taken 2 years to get PAN of State VAT validated
• Out of 7 mandatory fields we have 4 fields with us
• State
• PAN
• Name of Business Entity
• Constitution of Business entity
• What is required before issue of GSTIN
• Pr Place of Business
• Composition (Yes or No) and
• Details of Authorized Signatory
• Exercise stared from 8th of Nov with State VAT first and then
with Service Tax. (website as well Mobile App)
• Migration as on May 2,2017- @61 Lakh out of 84.34 Lakh
Enrolment of Existing Taxpayers under GST
Data Points :
1. VAT Users (29 States and 5 UTs) - 71.01 Lakhs (PAN Validated)
2. Excise & Services Tax Users – 19.26 Lakhs (PAN Validated)
3. Enrolment started on 8th Nov 2016
4. As on May 2,2017 Enrolment statistics
1. VAT
2. Central Excise
3. Service Tax
5. 54.89 Lakhs out of 71.38 Lakh VAT Taxpayers already enrolled
6. 5.76 lakhs out of 11.61 Lakhs Central Excise and Service Tax
(2.03 of CE and 5.62 of ST are included under VAT as they are registered
under VAT as well)
Enrollment Process Under GST
Enrollment Process of Taxpayers
Enrolment Process
• An existing taxpayer is an entity currently registered under
any State or Central laws.
• Enrolment under GST means validating the data of existing
taxpayers and filling up the remaining key fields, at the
GST Common Portal.
• The data available with various tax authorities is
incomplete and thus fresh enrolment planned.
• Paper based enrolment option is NOT available.
• The GST Common Portal will enable taxpayers to meet the
GST compliance requirement like filing return and making
tax payment.
Enrolment Process
•
•
•
•
There is no deemed enrolment under GST.
There is no fee or charge levied for the enrolment.
The enrolment process is common for all taxpayers
Enrolment under the GST is common for both Central GST
and the State GST.
• Before enrolling with the GST Common Portal, one must
have following information:
–
–
–
–
–
–
–
Provisional ID received from State/ Central Authorities
Password received from the State/ Central Authorities
Valid E-mail Address
Valid Mobile Number
Bank Account Number
Bank IFSC
Address Proof for Principal Place of Business and Additional
Place/s of Business : Rent Agreement/ Rent Receipt/ Electricity Bill
• If fail to upload any document, check the Internet
connectivity, file size and format of the document.
Enrolment Process
S.N
o.
Documents
File Size
Format
Maximum
Allowable
Size
PDF or
JPEG
1 MB
1.
Proof of Constitution of Business
•In case of Partnership firm: Partnership Deed of
Partnership Firm.
•In case of Others: Registration Certificate of the
Business Entity
2.
Photographs of Proprietor/Partners/HUF
Kartha/Managing Director /Managing
Trustee/Members of Managing Committee /CEO or
his/her equivalent
JPEG
100 KB
3.
Proof of Appointment of Authorized Signatory
Power of Attorney or Letter of Authorization or copy
of Resolution of the Managing Committee or Board
of Directors
PDF or
JPEG
1 MB
4.
Photograph of Authorized Signatory
JPEG
100 KB
5.
Bank Accounts: Cancelled Cheque/ Bank Statement
of the concerned Bank with the Bank stamp/ First
page of the Passbook
PDF and
JPEG
1 MB
Enrolment Process
• Total time taken is around 15-20 minutes
• Documents to keep ready
– Proof of Pr Place of Business/Addl place
– Details of Prop/Directors/etc.
– Details of Authorized signatory
– Details of bank accounts
– Existing registrations under various indirect taxes
• Authentication of information provided
• CBT (Video), FAQ and User Manual are available on
gst.gov.in
Enrolment Process
Enrolment Process
• For the first time login to the GST Common Portal, you
need to provide the username and password that you
received from the State VAT or Centre Tax Department.
• For subsequent login, you need to create a username and
password during enrolment at the GST Common Portal.
• You can choose any username of your choice following
the rules of the username creation as displayed during
username creation.
• Click the SAVE & CONTINUE button at the bottom of
each page to save the entered details.
Enrolment Process
• A primary Authorized Signatory is the person who is
primarily responsible to perform action at the GST
Common Portal on behalf of the taxpayer.
• The e-mail address and mobile number of the Authorized
Signatory needs to be provided during enrolment.
• All communication from the GST Common Portal
relating to taxpayer will be sent to the primary
Authorized Signatory.
• For multiple Authorized Signatories for a single business
entity, one Authorized Signatory need to be designated
as primary Authorized Signatory.
• The Authorized Signatory or Primary Authorized cannot
be Minor in age.
Enrolment Process
• During verification, two separate OTPs are sent.
• OTP is sent on registered mobile number and e-mail
address. Also check your spam folder.
• Click the RESEND OTP button, if you have not received
the OTP within 10 minutes.
• If you do not receive the OTP on your e-mail address
even after clicking the RESEND OTP button, please
verify if your e-mail address entered is correct and the
Internet and mobile network are available.
• All future correspondence from the GST Common Portal
will be sent on the registered e-mail address and mobile
number only.
Enrolment Process
• Refer your VAT Registration Certificate to find your State
Jurisdiction and Ward, Circle and Sector No.
• Refer the Central Excise/ Service Tax Registration Certificate to find
your Centre Jurisdiction
• “Business Vertical” means a distinguishable component of an
enterprise that is engaged in supplying an individual product or
service or a group of related products or services and that is subject
to risks and return that are different from those of other business
verticals;
Explanation: factor that should be considered in determining whether
product or services are related includes:
(a) The nature of the product or services;
(b) The nature of the production processes;
(c ) The type or class of customers for the products or services;
(d) The methods used to distribute the products or provide the
services; and
(e ) If applicable, the nature of the regulatory environment, for
example, banking, insurance, or public utilities.
Enrolment Process
• HSN stands for Harmonized System of
Nomenclature which is internationally accepted product
coding system used to maintain uniformity in
classification of goods.
• SAC stands for Service Accounting Codes which are
adopted by the Central Board of Excise and Customs
(CBEC) for identification of the services.
• While enrolling with the GST Common Portal.
– Enter the details of the bank accounts used for the
purpose of carrying out business transactions.
– One can add up to 10 bank accounts.
Enrolment Process
• One can submit Enrolment Application at GST Common Portal
without electronically signing it
• But need to sign the application at a later date within the time
allowed under the GST Act.
• Only signed Enrolment Applications shall be considered for issue of
Final Registration Certificate.
• Submitted application can be viewed after login by accessing “My
Saved Applications” at the GST Common Portal.
• Electronically signing the Enrolment Application using DSC is
mandatory for enrolment by Companies, Foreign Companies,
Limited Liability Partnership (LLPs) and Foreign Limited Liability
Partnership (FLLPs).
• For other taxpayers, electronically signing using DSC is optional.
• Only Class -2 or Class 3 DSC can be registered at the GST Common
Portal.
Enrolment Process
• ARN refers to Application Reference Number.
• It is a unique number assigned to each transaction
completed at the GST Common Portal.
• It will also be generated on submission of the Enrolment
Application that is electronically signed using DSC.
• ARN can be used for future correspondence with GSTN.
Enrolment Process
• Enrolment Application can be rejected in case incorrect
details have been furnished or fake or incorrect
documents are uploaded/attached.
• The taxpayer will be provided reasonable opportunity of
being heard.
• Enrolment Application can be amended after the
appointed date.
• Mobile number and e-mail address can be changed after
the appointed date, by following the amendment process.
• The Provisional Registration Certificate will be available
for viewing and download at the Dashboard of the GST
Common Portal on the appointed date, if the
Registration Application was submitted successfully.
• The final Registration Certificate will be issued within 6
months of verification of documents.
Enrolment Process
Heading
Meaning
Provisional
Initial status of the Provisional ID that will be
communicated to taxpayer before the appointed date.
Provisional Pending On saving the GST Enrolment Application with all
Signature
mandatory fields.
Migrated
On submitting the Enrolment Application the status
will change to ‘Migrated’.
Active
On the appointed date, all the Provisional ID in the
‘Migrated’ status will change to ‘Active’.
Suspended
After six month from the appointed date, all
Provisional IDs that are NOT electronically signed will
be ‘Suspended’.
Returns Under GST
Types of Returns
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
Form
Return Type
Form GSTR-1 Details of outward supplies of taxable goods/Services
Form GSTR-1A Details of outward supplies as added, corrected or deleted
by the recipient
Form GSTR-2 Details of inward supplies of taxable goods and/or services
claiming input tax credit
Form GSTR-2A Details of inward supplies made available to the recipient
on the basis of FORM GSTR-1 furnished by the supplier
Form GSTR-3 Monthly return on the basis of finalization of details of
outward supplies and inward
Form GSTR-4 Quarterly Return for compounding Taxable persons
Form GSTR-5 Return for Non-Resident foreign taxable person
Form GSTR-6 ISD return
Form GSTR-7 Return for authorities deducting tax at source
Form GSTR-8 Details of supplies effected through e-commerce operator
Form GSTR-9 Annual return
Form GSTR-10 Final return
Form GSTR-11 Details of inward supplies to be furnished by a person
having UIN
Interactive Returns
GSTR-1
• Upload of
invoice data
GSTR-1A
• Auto-drafted on
the basis of
submitted GSTR 2
• Accept
Reject / if GSTR 1
filed and GSTR3
not filed
GSTR-2A
• Accept / Reject
• Modify / Add
• Auto drafted
from all
suppliers/ISD/
TDS and TCS
• Downloa
d GSTR-1
• Auto Amended
GSTR 1 if GSTR 3
not filed
• Acceptance/rejecti
on/addition if
GSTR 1 not filed or
next period GSTR1
if GSTR 3 filed
GSTR-2
• Accept / Reject
• Modify / Add
• Upload of
remaining data
Return under GST
• One invoice at each stage of supply(sale) showing both taxes
separately
• B2B invoice data needs to be uploaded to create sales return
(GSTR-1)
• Creation of purchase return (GSTR-2) based on sales return
of sellers
• GSTR-3 based on GSTR-1 and GSTR-2
• Anytime upload of invoice data
• One Return for both taxes
• One assessing authority and one appellate authority
Return filling under GST
• B2B Invoice data upload
– On the GST portal
– Using offline tool (like Excel)
– Using 3rd party tool
• Filing of GSTR-1 based on invoice data and data on exports, supplies
to consumers etc.
• Downloading of GSTR-2
• Matching it with one’s own Purchase Register
– Manually on the portal
– Using 3rd Party Tool
– Facility to add new invoice not uploaded by supplier
– Facility to modify the invoice data
• Filing of GSTR-2 after incorporating other details like imports etc.
• Pay amount due by ITC and/or Cash
• File GSTR-3
Innovations under GST: Return
Rs
Rp
Invoice
Seller
Purchaser
Current System
GST System
Seller and buyer report the same invoice data in
their respective returns (Rs=Rp)
Seller (Supplier) files sales return
It get auto-populated in the purchase return of
purchaser
IT System of Tax Deptt matches the entries
Even after 5 years, mismatch= 9-11%
Reasons: Transcription error; change of date;
difference in amount on account of addition of items
like cartage/packaging etc.
One return with sale and purchase annexures
Purchaser has to accept/reject/modify the entry.
Matching is decentralized
Transcription and other errors taken care of
Tax accounting software being upgraded to
generate mismatch report between purchase
register and auto-populated one.
3 returns (one sales, 2nd acceptance of auto crated
purchase return and 3rd: tax liability)
Auto-Population of GSTR-2
GSTR-2 vs Purchase Register
• GSTR-2 will get prepared based on GSTR-1 of Suppliers
• The Tax Accounting S/W should match purchase
register with GSTR-2 creating the following:
• All invoices which match (Invoice no./Tax amount)
• Those invoices which do not match
• Wrongly entered GSTIN of buyer
• Invoice number does not match
• Taxable amount or tax amount does not match
• The invoices not uploaded by seller
From Purchase Register
From Downloaded GSTR-2
Matched
Supplier-1
Invoice No. Taxable
amount
SGST
CGST
Invoice
No.
Taxable
amount
SGST
CGST
SGST
CGST
Invoice
No.
Taxable
amount
SGST
CGST
SGST
CGST
Invoice
No.
Taxable
amount
SGST
CGST
SGST
CGST
Invoice
Taxable
SGST
CGST
Supplier-2
Invoice No. Taxable
amount
Unmatched
Supplier-1
Invoice No. Taxable
amount
Supplier-3
Invoice No. Taxable
Form GST PMT-2 (Electronic Credit Ledger of Taxpayer)
Payments Under GST
Process Overview - Payments
• Single challan/payment for CGST, SGST, IGST and Cess
• Challan to include all major heads (IGST, CGST, SGST,
Cess and minor heads (Tax, Interest, Penalty, Fee, Others)
• Electronically generated Challan from GST portal with
unique 14-digit Common Portal Identification Number
(CPIN)
• Challan once generated to be valid for 15 days
• Payment through Debit/Credit Card, Internet Banking,
NEFT/RTGS and at the Bank Counter
• Facility to track payment
• All payments will become part of Cash Ledger and can be
utilized in payment of liabilities
43
Process Flow :Mode 1
• Filling up the amount in e-challan at GST Portal
• Selecting mode of payment (e-payment mode) and
generating e-challan
• Triggering payment transaction to the bank’s payment
gateway (GST Portal to transmit challans particulars safe data sharing protocols)
• Taxpayer to make payment using their credentials
provided by banks
• On successful completion of transaction, the bank will
provide confirmation to GST Portal
• GST Portal will credit the Taxpayer’s ledger
• Payment particulars challan-wise will be available on
GST Portal for download/print
44
Process
flowflow
of e-Payment
mode
Process
of e-Payment
GST
Portal
Share Payment Details
(CIN Details)
Taxpayer
Access GST
Portal
Generate
e-Challan
Internet
Banking/
Debit Card/
Credit Card
Share Transaction Details
(CPIN Details)
Credit in Cash Ledger
Pay at
Bank/
Payment
Gateway
Portal
Acknowledgement
Receipt Generation
Update Challan
History
45
Mode 2 : OTC Remittance through Authorised Banks
• For payment up to Rs 10000 per challan per tax period
• Electronic Challan from GST portal
• OTC payment at any branch of authorised bank through
Cheque (local / At par only)
Cash
Demand Draft
46
Payment Flow Chart
Tax Payer
Login GST
Portal
Choose
Payment option
Select Mode Of Payment:Net
Banking
i) e-Payment
Create Challan
Generate challan
(CPIN Generated)
CC/DC
Save for 15 Days
Select
Bank
25 Authorised Bank
Other Than
Authorised Banks
ii) OTC
iii) NeFT/RTGS
Process at Banks
server – Payment
made Successfully
Trigger to Make
Payment from
GSTN server
GST-Portal updates
Tax payer’s Cash
Ledger Payment
receipt can be
downloaded
CIN Generated
Communicated
to GSTN
Enabling GSP Eco-system
The Business case for GST Suvidha Providers
• Invoice upload data anytime any day as against waiting
for the end of the month
• Prevent last day – last minute rush on the GST Portal.
• Enable a middle tier of entrepreneurs who can develop
innovative services and solutions for a variety of tax
payers:• Industry
specific
plays
(FMCG,
autos,
manufacturing, etc)
• MSMEs
• Provide mobile app based services to their clients
24x7 and on the move
• Enable 1000+ small tax accounting S/W providers
• Enable optimal, 24x7 use of GST Portal all round
• Act as an isolation layer for GST System
The Rationale for GSP
• The GST System will have a G2B portal for taxpayers to access the GST
System.
• But tax payers may require different kind of facilities like
 integration of their Accounting Packages/ERP with GST System
 converting their purchase/sales register data in GST compliant format
• Third party applications, which can provide different kind of
interfaces on desktop and mobile to comply with GST requirements.
• Large organization may require an automated way to interact with GST
system for uploading large number of invoices.
• All this require an eco system of third party service providers
• These service providers have been given a generic name, GST Suvidha
Provider or GSP.
GSP Eco System
Opportunity to change the way SMB sector manages its tax operations ……
Create Invoice
Upload Invoice
Payments
Dealer
Application
E-filing
Ledger
GSP Eco System
GST
System
GSP Eco System
Taxpayers
ASPs
GSPs
(> 80 lakhs)
(Hundreds)
(~ 20 +)
ASP
GSP
GST
SYSTEM
GSP / ASP
ASP
GSP / ASP
GST Suvidha Provider Ecosystem
34 Companies selected
ASP
GST
Portal
Secured
Connectivity
GST
System
ASP
GSP
System
GSP: GST Suvidha Provider
ASP: Application Service Providers
MPLS
Taxpayer
GSTN and Tax Accounting Software Providers
GSTN
SAP/Oracle/
MS Dynamics/
RAMCO etc.
TASP
Tally/FACT/BUSY
Etc.
1000+ Small IT
companies
Taxpayer Education and Helpdesk
• Education on GST Portal thru master trainers of CBEC
and States
• Video based Tutorial-CBT (Computer-Based Training,
available at gst.gov.in under help.)
• Online User Manuals and FAQs
• 24X7 Helpdesk for taxpayers on IT System
– 0124-4688999
– [email protected]
• Offline utility for invoice upload
Training for GST System
GSTN Training Plan
Road Map and Roll Out Action Plan
Schedule of Training
Training Process
Training Environment
Scope Of Training Programs
Monitoring Tool : Learning
Management System
GSTN - Capability Building and Outreach Roadmap
In the next 12 months
•
•
•
Tax Payer Education Events in all
States/UTs
Phase 1 Taxpayer Training (i.
Registration ii. Filing of Return iii. Payment)
iv. Tax Officials Interface.
Phase 2 Tax Officer Training (i. Approval
of registration, ii. Processing of return, iii.
Audit iv. Assessment v. Appeal vi.
Enforcement, vii. Refund etc.)
12-18 months
•
•
Training on
Application Updates
Training on new
Process/ modules as
per changes by GST
Law.
On Going Plan
•
•
•
Workshop for
Officials
Taxpayer
Education Events
Enrolment on
LMS in January
2017
Continued Support
58
Application preview based on prototypes
Thank You!
For any further information please contact
[email protected]
[email protected]
Prepared by GSTN