Pradeep Singhi &
Chartered Accountants
Associates
Mumbai | Surat
For PS&A 2017-18
Table of Contents
Overview of GST.
Concept of Supply
Registrations
Time Of Supply (TOS)
Tax Invoices / Rates
Composition Levy
Input Tax Credits (ITC)
TDS under GST
Payment of Taxes
Filling of Returns
Refunds
Audits
Penalty & Prosecution Provisions
Transitional Provisions
For PS&A 2017-18
Overview of GST
Service
Tax
Goods &
Service Tax
(GST)
Excise
Duty
VAT
Luxury
Tax
Features of GST.
1. One Nation & One Tax & One Market
2. Events are based on Concept of Supply.
3. Streamlining & Cross Utilization of Input
Tax Credits.
4. Revolutionary Invoice Matching Concept.
State
Excise
Duty
Entertai
nment
Tax
CST
Octroi
Duty
GST Council
GST Governing Body with power to take
decision on rates, exemption, threshold
exemptions, etc with 33.33% voting power
of Union Government & 66.66% power lies
with the State Government.
For Pradeep Singhi & Associates.
Concept of Supply
All the Earlier Laws, Taxes were based on Events like 
Manufacturing, Provision of Service, Sales, Contract entered, Agreement made, etc.
Land Lease,
Tenancy, or Letting
out of Any Building
for Commerce
Treatment of
Goods.
Import of
Goods /
Services.
Transfer of
Business
Assets
An Act of
Refraining /
Tolerating /
Obligating, etc
Under GST, the Concept of
Supply has tremendously
increased the Scope of
Taxable events.
Transfer of
Title in Goods
/ Rights in
Goods.
Construction
Services
Sale / Barter /
Exchange /
Transfer / License
/ Rental / Lease /
Disposal of Goods.
Electronic
Commerce
Operator
IT Services –
Designing,
Development,
etc
For Pradeep Singhi & Associates.
Concept of Supply……….. Continued
• What is “NOT” a Supply?
• Supply without Consideration.
• Any Exemption provided vide Notification of
the Council.
• Proportion of Abatement as notified by the
Council.
• Employer – Employee Services.
• Services By Courts & Tribunal
• Services of Government
(State/Central/Local Authority).
• Statutory Duty to be performed by
Government.
• Disposal of Assets of Business where Input
Tax Credit has been availed.
• Supply undertaken between Related
Person.
• Import of Services from a Related Person.
• Supply of Goods – Agent Principal
Relationship.
• Business Assets utilized for personal used.
• Inter-state Stock Transfer shall be treated
as supply of Goods.
For Pradeep Singhi & Associates.
Schedule I – Supply without Consideration
• Transfer of business assets, where ITC has been availed
• Business Assets transferred w/o consideration to third party – taxable only if ITC availed
• Gift upto Rs. 50,000 in a year to employee – not a supply
• Services by an employee to an employer in the course of employment – in the negative list (Sch. III)
• All perquisites which are part of employment contract are not supplies e.g. bonus, LTC, rent free
accommodation or car, medical reimbursement, etc.
• Gift of any goods or services beyond contractual terms – is covered under this entry e.g. Diwali gifts
or vouchers
• Litigation prone as activities like free lunch or free car or parties or foreign trips
Registrations
Registration not required upto
turnover upto 20 Lacs & 10 Lacs for
Special Category States(Current
Limit Proposed in Law.)
No threshold Exemption applicable
to following Items,
• Inter-State Taxable Supply
• Casual Taxable Person
• Liability to Pay Under RCM.
• ECOs
• NRIs
• GST TDS Deductors.
• ISD
• Online Information & Data
Retrieval Services.
• Others, as maybe notified.
• Single Registration for
IGST/SGST/CGST/UGST
per state.
• Registration required in
each state from where
supplies made – No
Centralized Registration.
• Multiple Business
Verticals in a State –
May opt for separate
registration for each
Business Vertical.
For Pradeep Singhi & Associates.
Registrations
•
•
•
•
•
•
•
•
Documents Required
for Registration
Format of Prov. GST
Reg.
PROOF OF CONSTITUTION OF BUSINESS
DETAILS OF ALL BANK ACCOUNTS
PROOF OF PRINCIPAL AND ADDITIONAL PLACE OF BUSINESS
DETAILS OF PARTNERS/ PARTNERS/ DIRECTORS
DETAILS OF GOODS OR SERVICES TO BE SUPPLIED
HSN CODE OF GOODS AND SERVICES
PHOTOGRAPHS OF PARTNERS/ DIRECTORS/ PROPRIETOR
ANY OTHER DOCUMENTS AS MAY BE PRESCRIBED.
•
For Pradeep Singhi & Associates.
Time Of Supply (TOS)
Time of Supply shall decide the liability to Pay Goods & Service Tax (GST).
Inputs/services
received or NonRegistered Person.
-
-
TAXABLE PERSON
Inward Supply of Goods/ Services
Earlier of ,
Date of Receipts of Goods.
Date of Payment of Goods /
Services
Date immediately following 30
days (Goods) & 60 days
(Services) from date of
Issuance of Invoice.
For Service, if neither
applicable then date of receipt
of service in Books.
OUTPUT SALES /
SERVICES PROVIDED.
Outward Supply of Goods/Services
-
-
Earlier of ,
Date of Issue of Invoice, or
Last Date of Issuance of Invoice
in case of Goods
Provision of Service if Invoice
Not issued within prescribed
time
Date on which the payment is
received.
For Service, if neither
applicable then date of receipt
of service in Books.
For Pradeep Singhi & Associates.
Levy of GST on purchases from URD Sec 9(4)
• On purchase of taxable goods and services from URD, buyer liable to GST on Reverse Charge
basis
• No definition of taxable goods and services.
• Illustrations: (Areas could possibly be covered)
• Purchases from suppliers falling below threshold limit
• Trader purchasing office supplies like stationery, tea, cleaning services from URD
• A company purchasing cold drinks, cigarettes or sweets from nearby shops
Tax Invoices / Rates
•
•
•
Single Goods / Services / Commodity shall
have Rates Prescribed in CGST / SGST &
IGST.
If the Receiver is Located within the State
CGST & SGST both shall be made
applicable.
If the Receiver is Located in other State,
IGST shall be made applicable.
5/6 Tier Rate
Structure Proposed for
• CGST (20%)
• SGST (20%)
• IGST (40%)
• UGST (20%)
Proposed Format of the Tax Invoices
0 % Nil Rate Items
5%
Essential Items
12 %
Standard Rate
18 %
Standard Rate
Luxury Items
Addon Tax on Ultra Lux,
Add. Levy %
Sin & Demerits Items
28 %
For Pradeep Singhi & Associates.
Composition Levy for Turnover < 50 Lacs
(May Increase upto 1 Cr)
WHO CAN OPT
WHO CANNOT OPT
• A registered taxable
person whose turnover
in preceding financial
year did not exceed
fifty lakh rupees
• If the turnover in the
current financial year
exceeds fifty lakh
rupees, the permission
shall stand withdrawn
• Supplier of Services
• Supplier of Exempted
Goods
• Who makes inter-state
supply of goods (IGST)
• Supplies goods through
ECO.
RATE OF TAX
CONDITION FOR
ELIGIBILITY
• The person shall not
collect tax from the
recipient on supplies
made by him nor he
shall be eligible for any
input tax credit.
• Unless all units
registered for Same
PAN
• 1% of turnover in a
(State/UT) in Case of a
Manufacturer
• 2.5% of turnover in a
(State/UT) in case of a
supply of food & nonalcoholic liquor for
human consumption.
• 0.5% of the turnover
(State/UT) in case of a
others suppliers.
For Pradeep Singhi & Associates.
Input Tax Credits (ITC)
CGST paid = Rs. 10
CGST @ 10%
CGST paid = Rs. 10
(Rs. 30 – 20 (Input Tax Credit)
CGST paid = Rs. 10
(Rs. 20 – 10 (Input Tax Credit)
T1
A
T2
T3
C
B
D
SGST paid = Rs. 10
(Rs. 20 – 10 (Input Tax Credit)
CGST paid = Rs. 10
(Rs. 30 – 20 (Input Tax Credit)
SGST paid = Rs. 10
SGST @ 10%
For Pradeep Singhi & Associates.
Various Taxes and its Credit aspect.
Taxes
Excise Duty
VAT
Octroi
CST
SAD
Service Tax (General)
Luxury Tax
Manufacturer
Trader
Service Provider
Contractors
Input Tax Credits (ITC)……… continued
What are the Credits available?
• All Input tax Charged on supply of Goods / Services on the Goods & Services intended to be used in course of
furtherance of Business or Commerce including GST paid on RCM basis.
• Credits available for WCS in relation to Plants and Machinery other than Land, Buildings & other Civil Structures,
Telecommunication Towers, Pipelines outside the factory premises.
What are the conditions for availing Input Credits in General?
• Registered person should be in possession of tax invoices or debit notes.
• Should have received the goods and services or both.
• Tax charged in respect of such supply has been actually paid to the government, subject to provisional availment of
credit by supplier, and,
• Supplier has furnished the Monthly Return.
• If the recipient fails to pay the supplier within 180 days, then amount of such credit availed needs to be added back to
their output liability alongwith Interest. Credits shall be allowed subsequently on the payment made the supplier.
• No credits shall be allowed after due date of Monthly Return to be filed for September following the F.Y. for which such
Invoice pertains to, or , Furnishing of Annual Returns. i.e. For F.Y. 2017-18 uptill 20th Oct’18 or Date of Annual Return
filed (Due date is 31st Dec’ 2018)
For Pradeep Singhi & Associates.
Input Tax Credits (ITC)
What/Whose Credits are disallowed?
• Non Registered Taxable person
• No Credit on Depreciated components of the Capital Goods.
• Apportionment of the ITC, if claimed partly for Business (including zero rated suppliers) and Partly of
Personal Use or use of Exempted Supply (incl t/o of RCM, securities, sale of land, sale of building excl
construction services).
• Option to Banking company, FI, NBFC to avail 50% of the eligible credit of the month without complying Taxable /
Exempted apportionment
• No Credit of Motor Vehicles & other Conveyances, in general except when used similar conveyances, transportation of
passengers or imparting training & Transportation of Goods.
• Supply of foods, beverages, catering, etc except when used to similar outward supply.
• Membership of club, health & fitness centre.
• Rent-a-Cab, Life & Health Insurance, except Government Notified obligatory duty or similar outward supply.
• Travel benefits extended to employees.
• Works Contract Services for construction of immovable property (other than P&M) except when used for
similar outward supplies
• Goods & Services received for construction of immovable property (other than P&M) on his own account or
even for furtherance of Business. (Consider Section 2(119) & Sch II 5(b) for Definition of Construction)
• Person paying Tax in Composition Scheme.
Input Tax Credits (ITC)
Case Study 1:Cenvat Credits to Works Contractor.
Scenario 1: Civil Contractor has undertaken Taxable
Works Contract for Municipal Corp, he hire multiple
contractors and gives them separate works contracts.
Whether he shall be available to take credit under GST?
Ans: YES u/s 17(5)(c). Only for Works Contract
Services.
Input Tax Credits (ITC)
Case Study 2:Cenvat Credits to Builders.
Scenario 1: Builder/Developer has a partially completed construction. He continued to avail CENVAT Credit under
Service Tax Regime. Service Tax Credit is available on all the input services and not on inputs including works
contractors services. Vat is Payable at 0.6% & Service Tax is payable at 4.5% Stamp Duty is also paid at ~5%. Whether
Cenvat shall be available?
Conditions : - As per Section 17(5)(d), which states,
" (5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit
shall not be available in respect of the following, namely:—
(d) goods or services or both received by a taxable person for construction of an immovable
property (other than plant or machinery) on his own account including when such goods or services or
both are used in the course or furtherance of business.”
Issues : - Inputs were mainly charged under Excise & VAT. Input services were charged under Service Tax. With the
Enactment of GST, segregation of Labour & Material under CGST, SGST and IGST become virtually impossible and
therefore, most likely no Credits whatsoever shall be made available to builders and standard fix tax rates shall be
made applicable only on deemed supply of services i.e. booking before OC.
Unutilized credits should ideally shall be denied under the GST, as any transitional credits needs to be eligible in both
the Laws.
Migration of Credit from Existing Law – Transitional Provision
1. Migration of Credits by
the Existing Registered
Person.
No credit if not
eligible under GST
Act.
Not Furnished the
Returns under the
Earlier Laws
Credit relates to
goods
manufactured/clear
ed under Exemption
2. Unavailed ITC of Capital
Goods
Should be eligible
ITC under both the
Laws. Earlier and
GST
3. Person exempted under
earlier law, WCS availing
benefit of 26/2012,
First/Second Stage dealer, etc
ITC available for
inputs, semifinished, finished
goods held in stock
on the appointed
day.
Prov. Such inputs
shall be used for
making taxable
supplies.
Supplier of Services
not eligible for
abatement under
this Act.
Inputs are eligible of ITC
under GST & All the
duty availing
documents are
available not more than
12 month.
3. Person exempted under
earlier law, without
Invoices……. Continued………
Person other than
Manufacturer &
Supplier of Services can
avail ITC without any
duty availing
documents.
Credit allowed on
Central Tax payable @
40%. The same shall be
credited after supply
being made and tax
been paid.
Scheme shall be
available for 6 tax
periods.
Goods should not be
exempted or nil rated,
doc. Of procurement
needs to be available,
Details to Stock to be
Furnished.
Similar
Provision
of VAT
under
SGST
Rules for
State
offering
Tax on
MRP
Scheme
For Pradeep Singhi & Associates. 2017-18
Migration of Credit from Existing Law – Transitional Provision
4. Received Inputs /
Inputs Services after
Appointed day for which
Tax Paid under Earlier Law
5. Person Migrating from
Composition Scheme.
All Such Invoices to
be Recorded within
30 days of
Appointed Day.
Should be eligible
ITC under both the
Laws. Earlier and
GST
ITC available for
inputs, semifinished, finished
goods held in stock
on the appointed
day.
Prov. Such inputs
shall be used for
making taxable
supplies.
Possession of
Invoices & shall not
pay Tax u/s 10 of
GST (Composition).
Not more than 1 yr
6. Person with
Centralized
Registration
ITC available for
Credit shown in
Return under
Existing Law. Need
to file within 3
months.
7. Credit reversed
due to Non-Payment
under Earlier Law
Credit can be
availed if payment
done within 3
months of
appointed day
Can be transferred
to any registered
person having same
PAN.
Inputs are eligible of
ITC under GST
For Pradeep Singhi & Associates. 2017-18
Tax Deduction at Source @ 1%
LIABILITY TO
DEDUCT
VALUE OF
CONTRACT
CREDIT OF TAX
DEDUCTED
• A department or
establishment of
central or state
government
• Local authority
• Governmental
agencies
• Such persons or
categories of
persons as may be
notified on
recommendations of
the GST Council
• Liability to deduct if
value of contract
exceeds Rs 2.5 Lakhs
• Only Same State.
• Paid by 10th of Next
Month.
• For the purpose of
tax deduction, the
value of supply shall
be taken as amount
excluding the tax
amount in the
invoice
• The deductee can
claim credit of the
tax deducted in his
electronic cash
ledger
REFUND OF EXCESS
TAX DEDUCTED
• Refund of excess
amount or
erroneous deduction
shall be dealt with in
accordance of
refund provisions
• No refund shall be
granted where the
amount deducted
has been credited to
the electronic cash
ledger of the
deductee
For Pradeep Singhi & Associates. 2017-18
Payment of Taxes
•
•
•
•
•
ELECTRONIC
CASH
REGISTER
LIABILITY AS
AVAILABLE
IN
ELECTRONIC
LIABILITY
REGISTER
CAN BE
DISCHARGED
THROUGH
ELECTRONIC
CREDIT
REGISTER
IGST
IGST
CGST
SGST
CGST
CGST
IGST
SGST
SGST
IGST
UGST
UGST
IGST
Tax
Interest
Penalty
Arrears
Fees or any
other amount
payable
under the act
LIABLITY TO BE DISCHARGED ON REVERSE CHARGE BASIS WILL BE DISCHARGED THROUGH CASH REGISTER
For Pradeep Singhi & Associates.
Filling of Returns
ANNUAL RETURN IN GSTR 9 BY 31ST
DECEMBER OF SUCCEEDING FINANCIAL YEAR
MONTHLY RETURN IN GSTR 3 OF TAX BY 20TH OF
SUCCEEDING MONTH
Final Turnover of Input Autopopulated based on GSTR-2
INWARD
SUPPLIER
GSTR 2
15TH OF SUCCEEDING
MONTH
ANY ALTER, REJECT, MODIFY,
UNDER GSTR – 2 TO BE INTIMATED
UNDER GSTR –1A
Final Turnover of Output Autopopulated based on GSTR 1
TAXABLE
PERSON
GSTR 1
10TH OF SUCCEEDING
MONTH
OUTWARD
RECEIPIENT
AUTOPOPULATED UNDER
PART A OF GSTR-2A
INVOICE WISE DETAILS TO BE UPLOADED IN THE RETURNS UNDER GSTR-I.
CANNOT FILE GSTR-1 FROM 11TH TO 15TH OF THE SUCEEDING MONTH.
CONCEPT OF INVOICE MATCHING INTRODUCED IN THE RETURNS
For Pradeep Singhi & Associates.
GSTN – Return Compliances
Step 4
GSTR-1A : The details of inward
supplies added, corrected or
deleted by the recipient shall be
made available to the supplier
16
Step 1
10
GSTR 1: Details
of Outward
supplies
Step 2
Supplier will accept or
reject the modifications
Step 6
GSTR-1 will be amended
to the extent
modifications are
accepted by supplier.
17
Step 3
GSTR 2: On the basis of
above GSTR-2A, details
of inward supplies
added, corrected or
deleted by recipient to
be disclosed under
GSTR-2, including RCM
details
20
GSTR 3
GSTR 2A: Autopopulated in
part A of the
GSTR-2A of
recipients
Step 5
17
Step 8
11
Part B of
GSTR 3
Step 7
15
Part A of GSTR 3
Part A of GSTR 3
Make
Payment
20
Filling of Returns……. continued
OTHER RETURNS
FORM
DUE DATE
QUARTERLY RETURN FOR COMPOSITION LEVY
GSTR -4
18TH
MONTHLY RETURN FOR NON-RESIDENT FOREIGN TAXABLE PERSON
GSTR -5
20TH
ISD RETURN
GSTR -6
13TH
RETURN FOR PERSONS DEDUCTING TAX AT SOURCE
GSTR -7
10TH
OTHER FEATURES
• Annual return to be submitted along with copy of audited annual accounts and a
reconciliation statement, reconciling the values of supplies declared in the return furnished
in the year
• Filing of Nil return (Regular / Composition) also mandatory under GST
• No Returns can be filed if previous period returns pending.
• If GSTR-1 10th Deadline missed – Min. Penalty of Rs.500
• Late fee prescribed for late filing of returns
• Furnishing Details/Monthly Returns – 100/day or 5000/- .
• Annual Returns - 100/day or 0.25% of the Annual Turnover in that State.
For Pradeep Singhi & Associates.
RETURNS: GSTN PORTAL - LEDGER BALANCE
RETURNS: GSTN PORTAL -- RECEIVER & SUPPLIER MISMATCH REPORT
RETURNS: GSTN PORTAL --ALL TYPES OF RETURNS
RETURNS: GSTN PORTAL -- DETAILS OF OUTWARD SUPPLIES TO BE FURNISHED
Supplies made
to Unreg.
persons
Inter State
Supplies
Intra State
Supplies
Details of
Outward
Supplies
Supplies made
to Reg. persons
Invoice wise
details of all Inter
State & Intra
State Supplies
If Invoice value more
than Rs.2.5 Lacs than
invoice wise details
If Invoice value less than
Rs.2.5 Lacs than state wise
consolidated details of
supplies
Consolidated
details of
Supplies
GSTR-1 – INVOICE DETAILS
GSTR-2 - INWARD SUPPLIES
Rule 7 of ITC – Apportionment of Credit on Inputs or
Input Service
Case Study 3:Reversal of Credit when Registered Person using inputs partly for Non Business Purpose , partly for Exempt Supplies , partly
for Taxable Supplies.

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










T = Total input tax on inputs of a tax period
T=1000000
T1 = Input tax on inputs exclusively used for non business purpose.
T1 = 25000, T2 = 345000, T3 = 67000
T2 = Input tax on inputs exclusively used for exempt supplies.
T3 = Input tax on inputs in eligible
T4=472000
T4 = ITC attributable excl. for Zero rate supplies & Taxable Supplies.
C1=T-(T1+T2+T3) = 1000000-(25000+345000+67000) = 563000
C1 = Amount credited to electronic ledger.
C2 = Common credit after attribution of ITC to taxable supplies(T4).
C2=C1–T4 = 563000 – 472000 = 91000
D1 = Common ITC attributable to exempt supplies.
E = Total exempt supplies of a tax period. (Prev. month if no data)
D1=(E÷F) X C2 = (7/10) x 91000 = 63700
F = Total turnover of a tax period. (Prev. month if no data)
D2=5% of C2 = 0.05 x 91000 = 4550
D2 = common ITC attributable to non business purpose supplies.
C3 = remainder common credit attributable to taxable and zero rated supplies.
C3=C2-(D1+D2) = 91000-(63700+4550) = 22750
C3 shall be computed separately for CGST, IGST, UGST, SGST.
Amt equal to d1 and d2 shall be added to output tax liability.
The ITC will be calculated finally for entire F.Y. as per the rule 7 before Sept of the succeeding year.
If difference between total amts calculated annually in respect of D1 & D2 exceeds the total of the amt determined for each tax period is
excess, it shall be added to the output tax liability and such amt is to be paid with interest from April of succeeding year till date of
payment.
 In Vice versa situation the difference shall be claimed as credit not later than September of succeeding year.
GSTR-3 - DETAILS OF MONTHLY RETURN
GSTR-3 – TURNOVER DETAILS
MATCHING, REVERSAL & RECLAIM OF ITC
Case Study 4 : If Taxable person claims excess ITC for the Month of April in their Return or the supply
is not being declared by the Suppliers for the month of April.
May’
15
May’
15
Inward Supply
Furnished in GSTR
2.
Any Rectification
before Sept of
Suceeding F.Y. or
Annual Return.
Excess ITC Claimed/
Supply Not Declared
by supplier
Reduced from OTL of
Recipient if Supplier
declares details within
time specified u/s
39(9)
If declared by supplier
than OTL shall be reduced
& Interest shall be credited
to electronic ledger of the
Recipient
Mismatch
Communicated to
Supplier in GSTR-1A
Added to OTL of
Recipient & shall pay
alongwith Interest
OTL June
May’15-17
Rectified then
Final and GSTR 1
stands
Amended.
Not Rectified by
Supplier
Either Suppliers
issues Debit note
increases OTL for
May Month
Communicated
under GSTN
Mismatch Reports
May 20-31
Either Receiver
shall reverse the
Credit in May
month with
Interest.
MATCHING, REVERSAL & RECLAIM OF ITC
Case Study 5 : If the Recipient claims ITC equals to or less than the output tax paid by the supplier.
MATCHED
Rule 10 exp(2)
Case Study 6 : If the Supplier reduces the output tax liability by issuing the Credit Notes for the Month of April.
Credit note relating
to outward supply
furnished in GSTR-1
May’
10
Reduction in OTL
exceeds corresponding
reduction in claim for
ITC – 1A reflects Excess
Credit
May’
15-17
Any Rectification
before Sept of
Suceeding F.Y. or
Annual Return.
Mismatch
Communicated to
Supplier &
Recipient
Rectified then
Final and GSTR 1
stands
Amended.
May’
20-31
If declared by Recipient
than OTL shall be reduced
& Interest shall be credited
to electronic ledger of the
Supplier
Either Suppliers
cancels credit
note increases
OTL for May
Month
Either Receiver
shall reverse the
Credit in May
month with
Interest.
Reduced from OTL of
Supplier if Recipient
declares details
within time specified
u/s 39(9)
Not Rectified by
Recipient
Added to OTL of
Supplier & shall
pay alongwith
interest
OTL
June
Refunds
Refund of Unutilized ITC
• For exempted exports including zero rated supplies
• Rate of Tax on inputs is higher than on output supplies
(Inverted Levy)
• No Refund if Duty Drawback claimed.
Refund of Tax & Interest
• Application shall be filed before expiry of 2 years.
• Special category persons shall file before expiry of 6 months.
• Refund filed for tax, duty, cenvat credit or interest paid in earlier law shall be disposed of as per earlier law & if
admissible shall be paid in Cash. (Transitional Provision)
Procedure & Timings for Sanctioning Refunds
•
•
•
•
•
Provide documentary evidence as prescribed
If refund is < Rs.2 Lac, than he shall only file a declaration that incidence of tax has not been passed.
If refund Zero rated supplies of G/S is claimed, 90% of claim shall be refunded on provisional basis.
Officer shall issue order within 60 days of receipt of application
Interest not exceeding 6%shall be paid if not refunded within 60 days
For Pradeep Singhi & Associates.
Audits & Records
Turnover based Audit – Where turnover of a registered taxable
person exceeds a 1 Crore (Return Rule 21(2)) in a financial year, he
shall get his accounts audited by a Chartered Accountant or Cost
Accountant & shall submit audited annual accounts, reconciliation
statement & other documents as prescribed.
Types of Audit
• Departmental Audit - Commissioner may by general or
special order undertake audit of any taxable person which shall
be conducted by tax authorities.
• Special Audit – At any proceedings, any officer having regard
to nature & complexity of the case with prior approval of
Commissioner, may get the accounts audited by a Chartered
Accountant or Cost Accountant nominated by the
Commissioner & remuneration of such audit shall be paid by
Commissioner.
Records
• Maintain books of accounts & other records for a period of 6
years from the due date of filing of Annual Return for the year
pertaining to such accounts & records
For Pradeep Singhi & Associates.
Penalty & Prosecution Provisions
Tax has been paid or short paid or erroneously refunded or ITC wrongly availed
Particulars
U/s 73
U/s 74
Maximum Penalty
10% of tax OR
Rs.10,000 WEH
100% of
tax
Period covered
3 yrs.
5 yrs.
Paid before SCN
-
15% of tax
After SCN but
within 30 days
-
25% of tax
After Order issued 10% of tax OR
but within 30 days Rs.10,000 WEH
50% of tax
Amount of Evasion
Imprisonment
> Rs. 5 Cr
Upto 5 yrs. with Fine
Rs. 2 Cr - 5 Cr
Upto 3 yrs. with Fine
Rs. 1 Cr - 2 Cr
Upto 1 yr. with Fine
For Pradeep Singhi & Associates.
Reasons other than fraud,etc (S.73)
By reason of fraud,etc (S.74)
TYPES OF OFFENSES
1. Supplies G/S without issue of any invoice
2. Issue of invoice without supply of G/S
3. Collects tax but fails to pay to the credit of Govt.
4. Takes/utilizes ITC point # 2 above.
> Rs.5Cr.
Cognizable
& NonBailable.
5. Collects tax in contravention of provisions but fails
to pay to the credit of Govt.
6. Evades tax, wrongly avails ITC or refund
7. Falsifies financial records
8. Prevents officer in discharge of his duties
9. Tampers or destroys any evidence
10. Engages in services which are in contravention
11. Engages in goods liable for confiscation
12. Fails to supply information under this Act
13. Attempts to commit any of the above
Imprisonment
upto 6 month
with/or Fine.
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Pradeep Singhi &
Chartered Accountants
Mumbai | Surat
Associates
For PS&A 2017-18
Thank You!
Pradeep Singhi &
Chartered Accountants
Mumbai | Surat
Associates
For PS&A 2017-18