GST: INTRODUCTION,
REGISTRATION,
TRANSITIONAL PROVISION &
INVOICE/RETURNS
DATED 27/05/2017
A Presentation by
CMA. (Dr.) Shailendra Saxena
B.COM,SAP(FICO),ACS,FCMA,FCA,DISA(ICAI).Ph.D.
JLNUS & CO, Chartered Accountants, Baroda
1
GST
Present Indirect Tax Structure of India
Present Tax
Structure
[5 Important
Constituents]
Customs
Duty
Entry Tax/
Entertainm
ent Tax
Excise Duty
Service Tax
Sales Tax /
VAT/ CST
Entry No. 84,
List I, Schedule
VII
Residuary
Entry No. 97,
List I, Schedule
VII
Entry No. 54 of
List II (VAT)
and 92A of List
I (CST)
Entry No. 83,
List I, Schedule
VII
Entry No. 52
&62 List II,
Schedule VII
Taxable Event
is Manufacture
Taxable Event
is Provision of
Service
Taxable Event
is Sale
Taxable Event
is Import &
Export
Taxable Event is
Entertainment &
Entry of Goods
Proposed Indirect Tax Structure Under GST
Intra State
Taxable
Supply
Excise and
Service Tax
will be known
as CGST
Local VAT &
Other taxes
will be known
as SGST
Inter State
Taxable
Supply
CST will be
replaced by
Integrated
GST (IGST)
Approx. Sum
Total of CGST
and SGST
Custom Duty
In Place of
CVD and SAD,
IGST will be
charged
Import From
Outside
India
4
GST: COMPONENTS OF GST

Central GST (CGST) –
Levy on supply of ALL goods and/ or services
within a particular State, by the Central
Government

State GST (SGST) –
Levy on supply of ALL goods and/ or services
within a particular State, by the respective
State Government

Integrated GST (IGST) –
Levy on ALL inter-State supplies of goods
and/ or services, by the Central Government
5
GST: BASIC OBJECTIVE OF GST

One Nation, One Tax & One Market

Taxability shift from sale/manufacture/service to
supply of Goods & Services

Seamless credit across the chain

Eliminate cascading effect of taxes

Single rate of tax

Uniform tax across the country

Principle
taxation’
of
‘consumption-based
Destination
6
GST: BASIC OBJECTIVE OF GST

GST will be levied and collected at a value addition
at each stage of supply of Goods and services.

It will overcome the present constraint of credit
mechanism and the input credit mechanism will be
made much simpler by allowing credit at each stage.

It is a dual GST structure comprising of Central and state
GST.

A unique concept in the name of IGST is introduced
for inter state supply of goods and Services including
Stock transfer for transparent mechanism.
7
GST: BASIC OBJECTIVE OF GST OF
GOVT.
 Simpler Tax system.
 Broadening of Tax base.
 Improved compliance & revenue collections (tax
booster).
 Efficient use of resources.
 Compliance Rating under GST for Tax payers.
8
Industry’ Expectations from GST

Low compliance cost

Simple business processes

Less requirement of automation initially

Minimal ITC refund cases

Exemptions instead of exclusions from GST

Seamless flow of input credit

Seamless flow of information between, supplier, buyer and tax
administration

Need for IT portal or agency like TINXSYS, NSDL
9
Industry’ Expectations from GST

Automation of process by way of e-registrations, e-returns, epayment

No requirement of verifications during inter state movement of
Goods

Zero rating of supplies to exporters

Administrative efficiency in case of assessment and adjudication

Ease of compliance

Self-policing
10
GST: CONCEPT OF CGST, SGST AND IGST

Leviable on Supply of Goods and
Services

Levy on transaction value with set-off
of input tax

Backed by Goods and Services Tax
Network (GSTN)
11
Valuation - CURRENT
Customs
Excise
Service
Tax
Section 14 –
Transaction
Value
Section 4 and
4A – Transaction
Value / MRP
Section 67 GAC
Customs
Valuation
(Determination
of Price of
Imported /
Exported
Goods) Rules,
2007
Central Excise
(Determination
of Value of
Excisable
Goods) Rules,
2000
Service Tax
(Determination
of Value Rules),
2006
THREE PRIME MODELS OF GST
Central
GST
State
GST
GST to be
levied by the
GST to be
levied by the
Center
State
Dual
GST
GST to be
levied by the
Centre and
the States
Concurrently
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Value of Supply – Section 15 (1)
•
The value of a supply of goods and/or services
•
Shall be the transaction value,
•
That is the price actually paid or payable
•
For the said supply of goods and/or services
where:
• The supplier and the recipient of the supply are
not related and
• The price is the sole consideration for the
supply
Consideration – Section 2(31)
Consideration” in relation to the supply of goods or services
includes:
• any payment made or to be made, whether in money or otherwise, in
respect of, in response to, or for the inducement of, the supply of goods or
services, whether by the recipient or by any other person but shall not
include any subsidy given by the Central Government or a State
Government;
• The monetary value of any act or forbearance, whether or not voluntary,
in respect of, in response to, or for the inducement of, the supply of goods
or services, whether by the recipient or by any other person but shall not
include any subsidy given by the Central Government or a State
Government
PROVIDED that a deposit, whether refundable or not, given in respect of the
supply of goods or services shall not be considered as payment made for the
supply unless the supplier applies the deposit as consideration for the supply;
(1) Supply includes
Meaning and Scope of Supply – Section 7
All forms of supply of goods and/or services such as
sale, transfer, barter, exchange, license, rental, lease
or disposal made or agreed to be made for a
consideration by a person in the course or
furtherance of business,
Importation of services, for a consideration whether
or not in the course or furtherance of business, and
A supply specified in Schedule I, made or agreed to
be made without a consideration
Supplies without consideration – Schedule I
Following transactions are liable to GST even without
consideration:
 Permanent transfer/disposal of business assets where
input tax credit has been availed on such assets.
 Supply of goods or services between related persons,
or between distinct persons as specified in section 25,
when made in the course or furtherance of business.STOCK TRANSFER
 Supply of goods between principal and agent.
 Importation of services by a taxable person from a
related person or from any of his other establishments
outside India, in the course or furtherance of business.
STOCK TRANSFER/ INTER UNIT TRANSACTIONS
Levy of GST on movement of goods from -
X•
GST not
applicable!
Gujarat
Plant 1
Gujarat
Plant 2
Plant 1 to Plant 2 located in the Same
State
• One plant to another plant located in
another State

•
One Plant to warehouse/depot located in
another State
X•
One Plant to warehouse/depot located in
the same State
X• One
warehouse to another warehouse
within the Same State
• One

warehouse to another warehouse
located in another State
GST:Possible rate structure

Exempt Supplies:
Nil-rate, zero percent supplies

Zero-Rated Supplies:
Exports and supplies to SEZ

Taxable Supplies:
Supplies taxable at 5%
 Supplies taxable at 12%
 Supplies taxable at 18%
 Supplies taxable at 28%

19
TAXES TO BE SUBSUMED
UNDER
Central Levies
GST
State Levies
 Central excise duty

VAT/Sales tax
 Additional excise duties

Central Sales Tax (CST)
 ED under the Medicinal &

Entertainment tax (other
Toiletries Preparation Act
 Service tax
 Additional Customs Duty
(CVD)
 Special additional duty (SAD)
GST
CGST
SGST
IGST
than levied by local bodies)

Octroi and Entry tax

Purchase tax

Luxury tax

Taxes on lottery, betting,
gambling
 Surcharges and cesses
relating to supply of goods
and services.

State surcharges, cesses
relating to supply of goods
and services
TAXES NOT TO BE SUBSUMED
UNDER
GST

Basic Customs Duty

Excise Duty / VAT on Petroleum Products for five years
(Petrol,Diesel,Crude Oil,Aviation fuel and Natural Gas)

Excise Duty on Tobacco Products

Electricity Duty by state

Entertainment tax levied by local bodies

State excise on Alcoholic Beverages

Property tax, Stamp Duty
properties

Royalty on minerals, Environmental / regulatory taxes- e.g.
vehicles tax
and taxes on immovable
TAXES TO BE LEVIED UNDER GST
Inter state
Supply
under GST
 IGST
Intra State
Supply of GST
 CGST
 SGST
Imports
Exports
 BASIC
CUSTOM
DUTY
 IGST
 Zero
Rated
TRANSACTION UNDER GST (INTRA STATE)
Amount
PARTICULARS
(InRs)
Basic Price of Goods to the Manufacturer
1,00,000
Add: CGST @ 9%
9,000
Add: SGST @ 9%
9,000
Total Sales Value for Distributor(with in State supply)
Less: Input tax Credit of CGST/SGST (Rs9000+Rs9000)
Landed Cost to the Dealer/Distributor
Add: Value Addition
1,18,000
18,000
1,00,000
10,000
Basic Sales Value for Retailor
Add: SGST @9% & CGST @ 9% (Supply with in State)
COST TO END CUSTOMER
1,10,000
19,800
1,29,800
TRANSACTION UNDER GST (INTER STATE)
Amount
PARTICULARS
(InRs)
Basic Price of Goods to the Manufacturer
Add: IGST @18% (Supply Inter State)
1,00,000
18,000
Total Sales Value
Less: Input tax Credit of IGST Rs18,000
Landed Cost to the Dealer/Distributor
Add: Value Addition
1,18,000
18,000
1,00,000
10,000
Basic Sales Value
Add: SGST @9% & CGST @ 9% (Supply with in State)
COST TO END CUSTOMER
1,10,000
19,800
1,29,800
ANTI- PROFITEERING MEASURES
As per Section 171 Anti Profiteering
provision in CGST/SGST Act, a taxpayer may
be required to pass on the following benefits:
a. benefit on account of increase in input tax
credit
b. Benefit on account of reduction in Tax
Rates
-Computed that additional amount which
will be available as ITC under the GST
regime.
-To formulate statergy to comply with the
above provision
-Pricing policy to be Revisited.
25
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GOODS AND SERVICES TAX
RATE SCHEDULE OF GOODS &
SERVICES
26
GST/VAT RATE GLOBALLY VS. INDIA
S.
No.
Country
S.
No.
Rate
(%)
Country
12.
Malaysia
Rate
(%)
5
1.
Australia
10
13.
Mexico
2.
Austria
20
14.
New Zealand
3.
Canada
7
15.
Philippines
10
4.
China
17
16.
Russia
18
5.
Denmark
25
17.
Singapore
18.
South Africa
14
19.
Sweden
25
20.
Taiwan
5
6.
Finland
22
7.
France
8.
Germany
16
21.
U.K.
9.
Indonesia
10
22.
Zambia
10.
Italy
20
11.
Japan
19.6
5
15
12.5
7
17.5
40
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KEY HIGHLIGHTS
GST Compensation Cess rates and Chapter wise
rate wise GST schedule decided;
 Fitment of more than 1200 items in various tax
slabs;
 19% of items taxed over 18% GST tax slab;
 7 final rules and the draft formats released.

28
FINAL RULES
29
ITEM FITMENT IN TAX SLABS (%)
30
RATE FITMENT – AN OVERVIEW
31
KEY HIGHLIGHTS

Rate structure for following 7 commodities yet to
be decided

Biri wrapper leaves

Biscuits

Biris

Textiles

Footwear

Gems & Jewellery

Power driven agricultural, horticultural, etc. machinery
used in military industry and part thereof.
32
SERVICES

Travelling in metro, local trains, Non-AC train and
religious travel will be exempt.

Education and healthcare services continue to be exempt
under GST regime.

Restaurant services to be taxed at




5% where turnover is less than INR 50 Lakhs in a year
12% for non-air conditioned (AC) restaurants; and
18% in case of restaurants having the facility of AC or/and serve liquor –
the erstwhile rule of AC and liquor license (as was introduced vide the
negative list regime) reinstated.
Accommodation service by Hotel service to be taxed at




Nil, in case of hotel day tariff of below INR 1000
12%, in case of hotel having day tariff of INR 1000 to 2500;
18%, in case of hotel having day tariff of INR 2500 to 5000; and
28%, in case of hotel having day tariff of above INR 5000.
33
SERVICES

Passenger travel by air in
 Economy class to attract 5%; and
 Business class to attract 12%.

Services by cab aggregators to attract 5%.

Transportation service to fall under 5% slab..

Works contract service to attract 12%.

Telecom and financial services to attract 18%.

Gambling and Cinema services to fall under 28% slab, as
entertainment tax is subsumed under GST
34
GST
Major Decision to be
advisable for GST
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MAJOR DECISION
S.
Change Decision
No.
an
Ideally
Before
Reason
1.
Decision for Place of
Removal for
Manufacturing
Units/Depots/Branches
Now
Relocation may be time
consuming.
2.
Stock Taking(Multi3 month
locational
Goods/Service Provider)
and Reconciled with
books.
Process and readiness.
3.
Reviewing the
compliances under old
law
Now
Pending C/H/I Forms
under Sales Tax Act.
4.
Review of Export
benefits-New FTP
3 month
Decide to option to
maximize benefit.
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MAJOR DECISION
S.
Change Decision
No.
Ideally
Before
Reason
5.
Purchase Policy
3 Month
Buying from particular
source to enable credit on
stocks.(Not from
Unregistered Dealer)
6.
Upgrading the IT
hardware/Software
3-4 Month
Extent of integration and
customization needed.
7.
Changes in formats of
records and billing
2 month
Printers will be
extremely busy in last 3
months before GST
implementation.
8.
Declaration of stocks
in a system
+Certification
1 Month
Limited numbers of
Subject professionals.
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MAJOR DECISION
S.
Change Decision
No.
Ideally
Before
Reason
9.
Manpower
optimization/Assess
requirement of
Manpower.
3 month
Multiple laws
disappearing and
converging in to one.
10.
Confirmation of no
Now
missed Credit+ No
onwards
excess/ineligible Credit
To avoid disputes under
old law.
11.
Procurement goods
under documents
where all taxes clearly
indicated as tax
suffered such as CE,
CVD, SAD, etc.
Enhance the credit at
time of declaration of
stocks during transition
to GST.
3 Month
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MAJOR DECISION
S.
Change Decision
No.
Ideally
Before
Reason
12.
Planning for
Completion of
Assessment under old
laws
3-4 Month
Liability must be finalize
before GST
implementation.
13.
Revisiting the
Overlapping contracts
4 Month
Ensure amendment to
avoid disputes with
customers on
applicability of taxes.
14.
Representation of
Undue or unintended
hardship of new law.
Now
This may have to be
thought Industry
Association, Trade
Bodies and Professional
Institutes and other
Public forms.
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GST
REGISTRATION
40
Section 139: Migration under GST
Furnishing of required
information
Final RC to be issued
Information not
furnished
Provisional RC
cancelled
Issuance of Provisional
RC with validity of 3
months or as extended
 Provisional RC may be cancelled, if application is filed by existing taxable person
that he is not liable to be registered u/s 22 or 24.
41
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GST: Who Is liable for Registration

Assessee whose Aggregate turnover exceeding Rs.20
Lakhs in a financial year






Aggregate turnover = All-India turnover
Threshold shall be 10 Lakhs in case of supplies made
from NE States
Turnover includes supplies made on behalf of
principal(s) i.e. supply made by Consignment Agent
In case of job-work, direct dispatch from the place of
job-worker shall be considered as a supply by the
principal (and not by the job-worker)
Separate Registration required for every State from
where any taxable supply is made
Liability to register shall not arise where:
 Person
engaged exclusively in the business of
supplying non-taxable supplies, or wholly exempt
supplies
 Person
is an agriculturalist, for the purpose of
agriculture.
42
GST: Compulsory Registration(Sec.24)
Compulsory registration irrespective of threshold in
the below cases:









Casual taxable persons;
Non-resident taxable person;
Person making an inter-State supply (outward supply);
Person required to pay tax under reverse charge
mechanism;
Persons who supply goods and/ or services on behalf of
another registered taxable person (whether as agent or
otherwise);
Notified persons required to deduct tax u/s 46;(Govt.
Department)
Persons required to collect tax u/s 56 i.e., (e-commerce
operators)
Input service distributors
Persons supplying online information & database access or
retrieval services from a place outside India to an
unregistered person;
43
Registration Structure under GST – Sec 24
 Registrations required by every person:
• Simultaneous registration under CGST, SGST & IGST
 Separate registration required for each State
 Total possible registrations for one PAN(29 States+2UT) &
Business verticals.
 Possible separate registrations for each business
vertical(optional) within a State/UT as defined u/s 2(18)
Factor should be considered:





The nature of product or services
The nature of production processes
The type or class of customers for the products or services
The methods used to distribute the products or provide the services.
If applicable ,the nature of the regulatory environment, for example,
banking , insurance, or public utilities.
44
Registration Structure under GST – Sec 24
 PAN based Registration: PAN will be mandatory (except for NonResident)
X
X
X
X
X
X
State Code
X
X
PAN
X
X
X
X
X
Business
Vertical
X
X
Blank Check-sum
 Place of Registration - “from where” Supplier makes a taxable supply
of goods and/ or services
 Provision for Voluntary Registration
 Central/State Government specify persons exempted from obtaining
registration
 Auto generation of provisional registration for existing assessee based
on enrolment (Migration)
 Proper officer has powers for suomoto registrations in case of
unregistered persons
45
Amendment in Registration – Sec 28

Any change in registration has to be informed

Proper officer may approve/reject amendment

No rejection without giving an opportunity of
being heard

Rejection of amendment under CGST will be a
deemed rejection under SGST and vice-a-versa
46
WHETHER THE JOB WORKER WILL HAVE
TO BE COMPLSORILY REGISTERED

No

Section 25 of GST Act

Does not provide any such condition

If Aggregate turnover of such job-worker
exceeds the threshold, then he has to obtain
registration.
47
AT THE TIME OF REGISTRATION WILL THE ASSESSEE
HAVE TO DECLARE ALL HIS PLACE OF BUSINESS

Yes

Section 2(85) & 2(89) of GST Act defined place of
business(Additional) & Principal Place of business

Taxpayer will have to declare the Principal place of
business as well as the details of additional place of
business.

In the registration form.
48
WHETHER A PERSON WHO IS REGISTERED
(VOLUNTARILY) IS LIABLE TO COLLECT AND REMIT THE
TAX EVEN THOUGH HIS AGGREGATE TURNOVER
DOESNOT EXCEED THRESHOLD LIMIT OF RS.20 LAKH/10
LAKH AS CASE MAY BE?

YES

There is no provision in GST Act to provide for
exemption to such cases.
49
IS IT MANDATORY FOR A GST OFFICER TO
PHYSICALLY VERIFY BUSINESS PREMISES OF
TAXABLE PERSON?




No
According to Rule 17 of GST Registration Rules, Where
the proper officer is satisfied that the physical
verification of the place of business of a taxable person
is required after grant of registration
He may get such verification done
Up-load verification report along with other documents,
including photographs in Form GST REG-29 on
Common portal with in 15 working days following the
date of such verification.
50
WHETHER
REGISTERED
TAXABLE
PERSON
REQUIRED TO BE DISPLAY HIS CERTIFICATE OF
REGISTRATION?

YES, As per Registration Rules.

Every registered taxable person shall display his
registration certificate in a prominent location at
his principal place of business and at every
additional place of business.
 Further , he has to display his GSTIN in the name
board exhibited at the entry of his principal place
of business and at every additional place of
business.
51
GST:
TRANSITIONAL PROVISION
52
Section 139 Migration of existing Tax Payer to
GST(Valid PAN is Mandatory)
53
Sections 140(1) Amount of CENVAT credit carried
forward in a return to be allowed as input tax credit
54
Section 140(2) Unavailed CENVAT Credit on
capital goods, not carried forward in a return,
to be allowed in certain circumstances.
55
Section 140(3) Credit of eligible duties and
taxes in respect of inputs held in stock to be
allowed in certain situations
56
Section 140(3) : Conditions of credit
availability
57
Rule 3(B) :Procedure for availing transitional
credit
58
CREDIT OF ELIGIBLE DUTIES AND TAXES IN RESPECT OF
INPUTS HELD IN STOCK TO BE ALLOWED IN CERTAIN
SITUATIONS

(SEC. 140(10)
Duties and taxes eligible for claiming the credit
are:
S. No. Duty Description
1.
Excise Duty
2.
Additional Duty under Sec.3(1) of CTA (CVD)
3.
National Calamity Contingent Duty
4.
Additional Duty under Sec.3(5) of CTA (SAD)
5.
Service Tax
6.
State VAT and Entry Tax
7.
Education Cess & Secondary Higher Education Cess
8.
Krishi Kalyan Cess (Service Provider)
59
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TRANSITIONAL PROVISION
Case Study
XYZ Ltd Registered under VAT &CST having a Vat balance carried forward
as per the return as on 30/06/2017 are:
Particular
Opening balance of Vat as on 1
April,2017
Vat Availed (From 1 April to 30
June,2017)
Amount(Rs)
Amount(Rs)
5,00,000.00
60,00,000.00
65,00,000.00
LESS
CST paid @ 2% (against C Form)
on Interstate sale for Rs
20,00,00,000/-(From 1 April to 30
June,2017)
40,00,000.00
Balance as on 30/06/2017
25,00,000.00
XYZ Ltd not in position to collect C 25 Lacs to be
form for Rs.10 Crore.
Reversed from
ITC
25,00,000.00
ZERO
C/F
60
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TRANSITIONAL PROVISION
Case Study
‘Z’ is a registered Dealer in the present G-VAT provisions.
He has allotted provisional GST registration number. He is
not able to furnish the required information under Rule
16 (2)(b) within the time prescribed (i.e. with in 3
months) what will be the consequences ?
Case Study
A Existing registered GVAT dealer/Service Provider having
a turnover of Rupees 18 lakhs will come under GST
migration or not? If yes, then what will be the
registration requirements and if not then how he will
proceed ?[Sec.25(8)]
61
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Persons Eligible for ITC
•
•
Person Eligible to take ITC:
•
Registered Taxable person [Section 16 of CGST/ SGST Act]
•
Person making zero rated supplies [Section 16(3) of IGST Act]
Person Not Eligible to take ITC:
•
Non-registered taxable person
•
Person having aggregate turnover below threshold limit
•
Supplier under Composition Scheme
•
Supplier exclusively engaged in making exempt or non-taxable
supplies
•
Agriculturist
CROSS CREDIT SET OFF HEADS
IGST
Input
CGST
Input
SGST
Input
IGST
Output
IGST
Output
IGST
Output
CGST/SGST
Output
CGST
Output
SGST
Output
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GST
TAX INVOICE, CREDIT
AND DEBIT NOTES
64
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TAX INVOICE
•A registered taxable person while supplying taxable goods/services shall issue a tax invoice
containing following details.
(a). name, address and GSTIN of the supplier,
(b). a consecutive serial number containing only alphabets and/or numerals, unique for a financial
year,
(c). Date of its issue
(d). name, address and GSTIN/ Unique ID Number, if registered, of the recipient,
(e). name and address of the recipient and the address of delivery, along with the name of State
and its code, if such recipient is unregistered and where the taxable value of supply is fifty
thousand rupees or more
(f). HSN code of goods or Accounting Code of services
(g). description of goods or services
(h). quantity in case of goods and unit or Unique Quantity Code thereof
(i). total value of goods or services
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TAX INVOICE
(j). taxable value of goods or services taking into account discount or abatement, if any,
(k). rate of tax (CGST, SGST or IGST),
(l). amount of tax charged in respect of taxable goods or services (CGST, SGST or IGST),
(m). place of supply along with the name of State, in case of a supply in the course of interState trade or commerce
(n). place of delivery where the same is different from the place of supply
(o). whether the tax is payable on reverse charge,
(p). the word “Revised Invoice” or “Supplementary Invoice”, as the case may be, indicated
prominently, where applicable along with the date and invoice number of the original invoice;
and
(q). signature or digital signature of the supplier or his authorized representative.
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• In case of export, the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT
ON PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT
PAYMENT OF IGST”.
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TAX INVOICE
Manner of Issuing Invoice
•
The invoice shall be prepared in triplicate, in case of supply of goods, in the following
manner
(a) the original copy being marked as ORIGINAL FOR RECIPIENT,
(b)
the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
(c) the triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
•
The invoice shall be prepared in duplicate, in case of supply of services in the following
manner
(a) the original copy being marked as ORIGINAL FOR RECEIPIENT; and
(b)
the duplicate copy being marked as DUPLICATE FOR SUPPLIER.
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TAX INVOICE
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BILL OF SUPPLY
•
Following persons are required to issue bill of supply.
1.
Supplying non-taxable goods/services
2.
Paying tax under Section-9, i.e. composition levy
•
Bill of Supply shall contain following details.
1.
name, address and GSTIN of the supplier, serial number, date of issue
2.
name, address and GSTIN/ Unique ID Number, if registered, of the recipient
3.
HSN Code of goods or Accounting Code for services
4.
description of goods or services
5.
value of goods or services taking into account discount or abatement, if any
6. signature or digital signature of the supplier or his authorized representative
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BILL OF SUPPLY
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CREDIT NOTE
Particulars
Provision
Credit Note
[Section 34(1)]
 After issuance, invoice is found to exceed taxable value/ tax
payable on such supply
 Credit note to issue up to earlier of following
• 30th day of the September following the end of the financial
year in which supply made.
• date of filing of relevant annual return
 No credit note shall be issued by the said person if the
incidence of tax and interest on such supply has been
passed by him to any other person.
 Details of Credit note to be given in monthly return.
 No credit note shall be issued on account of
renegotiation of prices after supply. In such cases C/N or
D/N should be issued without showing GST. Such D/N or
C/N is not required to be uploaded in monthly Return.
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DEBIT NOTE
Particulars
Provision
DebitNote
[Section 34(3)]
 After issuance, invoice is found to less the than taxable
value/ tax payable on such supply
 Debit note to issue up to earlier of following
• 30th day of the September following the end of the financial
year in which supply made.
• date of filing of relevant annual return
 No debit note shall be issued by the said person if the
incidence of tax and interest on such supply has been
passed by him to any other person.
 Details of Debit note to be given in monthly return.
 Debit note shall include a supplementary invoice.
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REVISED TAX INVOICE/DEBIT NOTE/CREDIT
NOTE
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RULES:E WAY BILL

Goods worth over ₹50,000 will require obtaining a prior registration and generation of an e-way bill under the GST
regime. E-way bill will also be allowed to be generated or cancelled through SMS.

When an e-way bill is generated a unique e-way bill number (EBN) is allocated and is available to supplier, recipient,
and the transporter. which will subsequently accepted/rejected by recipient of goods within 3 days.

E-way bill will be generated when there is movement of goods –
•
In relation to a ‘supply’
•
Other than a ‘supply’ ( say a return of goods)
•
Inward ‘supply’ from an unregistered person

A supply may be –
•
Supplied for a consideration in the normal course of business.
•
Supplies made for a consideration, which may not be in the course of business.
•
Supplies without consideration.

Registered person or the transporter may choose to generate and carry e-way bill even if value of goods is less than
Rs 50,000. RFID readers shall be installed in places for verification of movement of goods

Unregistered persons or his transporter may also choose to generate e-way bill. Which means e-way bill can be
generated by both registered and unregistered persons. However, where a supply is made by an unregistered person
to a registered person, the receiver will have to do all the compliances as if he’s the supplier.
ISSUE:
When invoice is already issued, issuance of e-way bill increases the compliance at the time of removal of goods. This is
not in line with ease of doing business.

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RULES: 7.
AN E-WAY BILL CAN BE GENERATED
BY
Who
When
Part
Form
Every Registered person under
GST
Before movement of
goods
Fill Part A
Form GST INS-1
Registered person is consignor
or consignee (mode of transport
may be owned or hired) OR is
recipient of goods
Before movement of
goods
Fill Part B
Form GST INS-1
Registered person is consignor
or consignee and goods are
handed over to transporter of
goods
Before movement of
goods
Fill Part A &
Part B
Form GST INS-1
Transporter of goods
Before movement of
goods
Fill form GST
INS-1 if
consignor does
not.
Unregistered person under GST
and recipient is registered.
Compliance to be done
by Recipient as if he is
the Supplier.
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E-WAY BILL:
CASE STUDY
ISSUE
SOLUTION
Scenario 1:
• The value of goods would be less than Rs.50,000/If any manufacturing Plant transfers/ supply
the e-way bill need not be generated.
to direct customer and value of goods is less
than Rs.50,000/-.
Scenario 2:

If one manufacturing plant transfers to other
manufacturing plant(Same entity and under
same state) and the value of goods is less than
Rs.50,000/-

Draft Rule 8 of Tax Invoice, Credit and Debit
Notes which states that in cases other than
supply i.e. like transfer of goods within the
same registration number or from one plant to
another covered under the same registration
number the consignor of the goods shall issue a
delivery challan, serially numbered at the time
of removal of goods for transportation with the
details prescribed.
The value of goods would be less than
Rs.50,000/- the e-way bill need not be
generated.
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E-WAY BILL:
CASE STUDY
ISSUE
SOLUTION
• The supplier in the present case has to fill up the details on
Scenario 3:
common portal (GST Network) in Part A of Form GST INS-01.
If manufacturing Plant transfers/ supply to
direct customer and value of goods is more • After furnishing the details in Part A, Manufacturing Plant has to
than Rs.50,000/furnish the details in Part B of Form GST INS-01. In any case,
•
if manufacturing Plant is not in a position to fill up Part B of Form
GST INS-01 then the buyer has to fill up the details in Part B of
Form GST INS-01.
•
Scenario 4:
If one plant transfers to other plant and the
value of goods is more than Rs.50,000/-
Further, as per Draft Rule 2 of E-Way Bill rules, the transporter
needs to carry the copy of the invoice, copy of the e-way bill or eway bill number, either physically or mapped to a Radio Frequency
Identification Device (RFID) embedded on to the conveyance in
prescribed manner.
• It is internal transfer within the same registration number, therefore,
invoice will not be generated. However, the movement of goods will
be under the challan for internal transfer.
•
e-way bill is to be generated since the value of goods is more than
Rs.50,000/-. The Draft E-Way Bill rules states that even though it
may not be a taxable supply but if the value of goods is more than
Rs.50,000/- then e-way bill has to be generated before movement
of goods.
• If the value of goods is exceeding Rs.50,000/- then the e-way bill is
to be generated before the movement of goods.
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RULES: VALIDITY OF E WAY BILL
Distance
Valid from
Valid for
Less than 100km
Date & time at which e-way
bill is generated
1 day
100km to 300km
Date & time at which e-way
bill is generated
3 days
300km to 500km
Date & time at which e-way
bill is generated
5 days
500km to 1000km
Date & time at which e-way
bill is generated
10 days
1000km or more
Date & time at which e-way
bill is generated
15 days
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E-WAY BILL IN LINE OF EASE OF DOING BUSINESS
I.E. EASY COMPLIANCE FOR TRANSPORTER
While addressing a session at the India Integrated Transport and
Logistics Summit 2017 on 5th May, Revenue Secretary Hasmukh Adhia
elaborated following features of Draft Rule of e-waybill.
1. Electronic (e-way) Bill under the Goods and Services Tax will simplify their operations
and not cause any compliance burden.
2. tax authorities will provide time to transporters to adjust to the new system, and not
begin imposing penalties from “Day 1”.
3. The system of e-way Bill is a major reform and will remove many complications.
4. Flexible approach: Initially, we will only observe the behaviour (of transporters). We will
be flexible and won’t put penalties.
5. Doing away with hard copies of verification documents, e-way bills can also be
generated through a smart phone and sent to the driver of the cargo vehicle as an SMS.
Under GST, freight worth over ₹50,000 will require obtaining a prior registration and
generation of an e-way bill and will be used to track all inter-State and intra-State
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movement of goods.
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GST
Payment of Tax
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GST: PROVISIONS FOR PAYMENT OF TAX, INTEREST,
PENALTY AND OTHER AMOUNTS (SEC.49)

Generally, Supplier is liable to pay the tax,Interest and Penalty/other amount.

In Other cases like:
•

Imports and other notified supplies, liabilities(BCD,CVD &SAD) may be
imposed on the recipient under the reverse charge mechanism (RCM)
By third person for example in case of :


E-Commerce = Operator is responsible for TCS
Contractual Payments = Government / Other notified entities are
responsible for TDS
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GST: ELECTRONIC TAX LIABILITY REGISTER
DEBITS
CREDITS
(i) amount payable towards tax, interest, late
fee or any other amount payable as per the
return filed by the said person;
(i) Electronic credit ledger
(ii) amount of
other amount
proper officer
under the Act
person;
(ii) Electronic cash ledger
tax, interest, penalty or any
payable as determined by a
in pursuance of any proceeding
or as ascertained by the said
(iii) amount of tax and interest payable as a
result of mismatch under section 42 or section
43 or section 50; or
(iii) Relief given by the appellate
authority
(iv) any amount of interest that may accrue
from time to time.
(iv) Reduction in penalty (if any)
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GST: ELECTRONIC CASH LEDGER
DEBITS
CREDITS
(i) Amount payable towards tax, interest, late (i) Payment made through challan on
fee or any other amount payable
receipt of CIN
(ii) Towards claim for refund of any amount
(ii) Amount deducted under Section
46(TDS) and claimed in Form GSTR-2
(iii) Amount collected under Section
56(TCS) and claimed in Form GSTR-2
(iv) Reversal of amount debited
earlier on account of final rejection of
refund (Form GST
PMT-03)
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GST
RETURNS
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NORMAL/REGULAR TAX PAYERS-MONTHLY
RETURN
•
GSP
(34)
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RETURN-BASIC FEATURES


Self-assessment of tax liability by the taxpayer
Common e-Return for CGST, SGST, IGST.

Separate returns for different categories of taxpayers
Returns by a normal / casual taxpayer to be filed in sequential
manner with different cut-off dates to allow auto-population of
return & automated matching of invoices.

Payment of due tax is must for filing valid return



Returns can be submitted with short payment but shall be
treated as invalid – not taken into account for invoice
matching & inter-Government fund settlement.
Provision for filing revised information

Differential Tax liability to be captured through Debit Note/
Credit Note/ Supplementary invoices / correction mechanism.
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GST: RETUN FILING
Pre - GST Regime
Need
not
Transactions
some States)
Post - GST Regime
file
all
Sales All your Invoices details to be filed
online
(Except with GST Every month(Not Scan
copy)
Credit
availed
Purchase Invoice
based
One Return per month/ period
on Credit received ONLY when Vendor
pays taxes and files Monthly
Returns
Min. Three Returns every month
Follow-up with vendor mostly for Follow-up with vendor every month
‘C’ Forms
for uploading of supplies after
payment of tax.
Multiple Law Compliance
Single window filing
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NORMAL/REGULAR TAX PAYERS - MONTHLY RETURN
Action
Return
•
Upload details of outward supply on or before 10 th of
following month
GSTR-1
•
Data will be auto populated in 2A of Recipient tax payer
GSTR-2A
•
•
•
Actions of Accept, Reject or Modify has to be taken
Additions can be made
Return needs to be filed after 10th and on or before 15 of
following month
GSTR-2
•
Rejections, modifications and additions in GSTR-2 will be
made available to supplier in 1A
Supplier has to take action by 17th
GSTR-1A
Auto-populated return will be available for submission along
with the payment on 20th
GSTR-3
•
•
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GST RETURNS, PERIODICITY
DATES
Section
AND
DUE
For
Periodicity
Due Date
37
Return
Type
GSTR-1
Outward Supplies Made by Tax
payer. The "Detail of Outward
supplies" shall include invoice,
debit notes, credit notes and
revised invoices
Monthly
10th of Next Month. recipient
of supplies, can either
accept or reject the detail
so communicated on or
before 17th of the next
month
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GSTR-2
Inward Supplies Made by Tax
payer. The details of inward
supplies added, corrected or
deleted by the recipient in his
FORM GSTR-2 shall be made
available to the supplier
electronically in FORM GSTR-1A
Monthly
39(1)
GSTR-3
Monthly
39(2)
GSTR-4
Tax Return (other than
Composition & ISD Dealer)
Composition Dealer
15th
of Next
Month.
supplier may either accept
or reject the modifications
made by the recipient and
FORM GSTR-1 furnished
by the supplier shall stand
amended to the extent of
modifications accepted by
him.
20th of Next Month
Quarterly
18th of Next Month
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GST RETURNS, PERIODICITY
DUE DATES
AND
Section
Return Type For
Periodicity
Due Date
39(4)
39(3)
GSTR -6
GSTR –7
ISD
Return of TDS
Monthly
Monthly
13th of Next Month
10th of Next Month
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GSTR-9
Annual Return
39(5)
GSTR-5
31st December of Next
FY.
Periodic Return Within 20 Days after the end of Tax
by Non-Resident period or within 7 days after the last
Foreign
date whichever is earlier?
Taxpayer
Annually
ISSUE:
Cross-references rule number incorrect
Rule 2(5) of draft GST return rules refers to ISD invoice ‘…. issued
under rule 7….”
However, there appears to be an error as ISD invoice is referred in
rule 6 and not 7
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HSN CODES & SERVICE ACCOUNTING CODE

HSN Code for goods - in invoice level details

4-digit HSN Code mandatory for taxpayers having turnover above Rs. 5 Crore in
preceding FY

2-digit HSN Code for taxpayers with turnover between Rs. 1.5 Crore & Rs. 5
Crore in preceding FY - optional in 1st Year and mandatory from 2nd Year


8-digit HSN Code mandatory for exports & imports
Accounting Codes for services – in invoice level details

Mandatory for those services for which Place of Supply Rules are dependent on
nature of services


Mandatory for exports & imports
Service Accounting Code to be prefixed with ‘s’ for differentiating from HSN
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MATCHING OF ITC – SEC 42
• After the due date of furnishing the form GSTR 3
• Following details to be matched
(a) GSTIN of the supplier
(b) GSTIN of the recipient
(c) Invoice/Debit Note date
(d) Invoice/Debit Note number
(e) Taxable value
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(f) Tax amount
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MATCHING OF ITC – SEC 42

B2B supply information given by the supplying taxpayer in GSTR-1 will be autopopulated into GSTR-2 of the counter-party purchaser

Purchasing taxpayers will be allowed to add invoice details in GSTR-2 & avail credit if
he is in possession of valid invoice & have received supply of goods or services

Counterparty registered taxpayers shall have a 2-day window to reconcile invoice
information among themselves prior to filing of GSTR-3

Credit availed on unmatched invoices shall be auto-reversed in the next to next return
period (e.g. mismatched ITC for April to be auto-reversed in return for June)
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FILING OF RETURN

To be filed by taxpayer at GST Common Portal either:

by himself logging on to the GST System using his own user ID & password; or

through his authorized representative using the user Id & password (allotted to
the authorized representative by the tax authorities), as chosen at the time of
registration, logging on to the GST System

Filing may be done through TRPs / FCs/GSP also

Filing may be done either directly or by using Applications developed by accounting
companies / IT companies which will interact with GST System using GSP.
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NORMAL/REGULAR TAX PAYERS-MONTHLY
RETURN
•
GSP
(34)
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ASP/GSP: FOR COMPLIANCES UNDER GST

For successful filing of returns , all records will have to be
maintained in the ERP/Tally/Other Software's.

GSP and ASP will provide related services.

ASP will be responsible for developing the necessary software
bridge.

GSP will be responsible for the proper uploading of invoices and
filing of returns from technical perspective as vanilla SAP output
will be incompatible with GSTN accepted formats.

ACTION: Assesse to evaluate and initiate the process of identification
and appointment of GSP and ASP
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REVISION

Revision of information permitted

Changes in Tax liability / ITC amount to be handled through Ø Debit- Credit Notes

Revision of supply invoices

Post sales discount

Volume discount

Amendments / Corrections
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THANKS!!
ANY QUESTIONS ?
CONTACT FOR POST SESSION
QUERY:
CMA. (Dr.) Shailendra Saxena
E-mail: [email protected]

Cell: +91-93774-10260 | Website: www.jlnus.com
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