Implementation of Goods and Services Tax
May 2017
GST where are we now
Implementation of
GST as proposed
(July 2017)
Formation of GST
Council and
recommendation on
GST law by GST
Council
(Oct 2016)
Release of
model GST law
(Nov 2016)
Final law to be released
(February 2017)
Ratification by
50% States
and
Presidential
Assent
(Aug / Sep
2016)
Recommendation by
GST Council on GST
law, rates, exemption
etc.
(Nov 2016)
Migration of VAT
dealers under GST
regime in
Maharashtra
(Nov 2016)
Migration of service
providers under GST
regime
(Jan 2017)
Preparation and submission of
GST returns
Returns under GST (1/4)
Returns under GST (2/4)
Returns under GST (3/4)
•
Outward supplies
Monthly (GSTR-1) – 10th
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Invoice-wise details of inter-State and intra-State supplies made to registered persons and
inter-State supplies with invoice value more than two and a half lakh
rupees made to unregistered persons;
Consolidated details of all intra-State supplies made to unregistered persons for each rate
of tax; and State wise inter-State supplies with invoice value less than two and a half lakh
rupees made to unregistered persons for each rate of tax; and
Debit and credit notes, if any issued during the month for invoices issued previously.
The details of inward supplies of goods or services or both furnished shall include, interalia(a) invoice wise details of all inter-State and intra-State supplies received from registered
persons or unregistered persons;
(b) import of goods and services made; and
(c) debit and credit notes, if any, received from supplier.
•
Inward supplies Monthly
(GSTR-2) - 15th
Periodic Return
(GSTR-3)
20th – Monthly
Composition Dealer
Quarterly
(GSTR-4) – 18th
•
•
Part A of the return under sub-rule (1) shall be electronically generated on the basis of
information furnished through returns in FORM GSTR-1, FORM GSTR-2.
Details of liability discharged / refund to be claimed to be included in Part B of the return in
FORM GSTR-3
A registered person who has opted to pay tax under composition scheme from the beginning
of a financial year, shall furnish the details of outward and inward supplies and the above
three returns relating to the period during which the person was liable to furnish such details
and returns till the due date of furnishing the return for the month of September of the
succeeding financial year or furnishing of annual return of the preceding financial year,
whichever is earlier.
Returns under GST (4/4)
Non-resident (GSTR-5)
Monthly / Periodically
20th/7 days from last day
of registration
Input Service Distributor
(GSTR-6)
13th – Monthly
Every registered non-resident taxable person to furnish a return electronically including
therein the details of outward supplies and inward supplies and shall pay the tax, interest,
penalty, fees or any other amount payable under the Act or these rules within twenty days
after the end of a tax period or within seven days after the last day of the validity period of
registration, whichever is earlier.
Every Input Service Distributor shall, after adding, correcting or deleting the details contained
in FORM GSTR-6A, furnish electronically a return in FORM GSTR-6, containing the details of
tax invoices on which credit has been received and those issued under section 20.
•
Every registered person required to deduct tax at source shall furnish a return
electronically. Such details furnished by the deductor shall be made available electronically
to each of the suppliers in Part C of FORM GSTR-2A on the Common Portal after the due
date of filing of FORM GSTR-7
•
Every registered person, other than an Input Service Distributor, or a non-resident taxable
person, shall furnish an annual return as specified under sub-section (1) of section 44
electronically. A person paying tax under section 10 shall furnish the annual return in
FORM GSTR-9A.
Every registered person whose aggregate turnover during a financial year exceeds one
crore rupees shall get his accounts audited and he shall furnish a copy of audited annual
accounts and a reconciliation statement, duly certified, in FORM GSTR-9B.
TDS Return (GSTR-7)
10th - Monthly
Annual Return (GSTR-9)
31st December
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Payment Rules
Payment of Taxes
• Deposit of taxes, interest, penalty, fee or any other amount is to be made through internet
banking, credit cards, debit cards, NEFT or RTGS
• The Input Tax credit self assessed in the returns will be maintained in the electronic credit ledger;
• The amount available in the electronic cash ledger may be used for making payments of tax,
interest, penalty, fees or any other amount payable under the act;
• Credits of CGST, SGST and IGST may be used in the following manner.
CGST
SGST
IGST
UTGST
Input CGST against –
Input SGST against –
Input IGST against –
Input UTGST against –
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CGST
•
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IGST
•
UTGST
•
IGST
•
CGST
•
IGST
•
SGST
•
UTGST
•
SGST
IGST
CGST
• Every person who has paid the tax on goods and services or both shall be deemed to have
passed the full incidence of such tax to the recipient.
SGST
7
Payment of Taxes
Sr.No.
1
2
3
Particulars
Availability of Electronic Tax Liability Register
• The said register is to be maintained in FORM GST PMT-01 for each person;
• The amount payable is debited to the electronic tax register.
Electronic Credit Ledger
• The ledger shall be maintained in FORM GST PMT-02 for each registered person eligible for
input tax credit;
• The ledger shall be debited to the extent of any discharge of any liability;
• The amount claimed as refund shall be debited in the said ledger;
• In case the refund claimed is partially / fully rejected, the refund amount rejected shall be recredited via an order made in FORM GST PMT-03;
• Any discrepancy in the electronic credit ledger shall be communicated through the Common
Portal in FORM GST PMT-04.
Electronic Cash Ledger
• This is to be maintained in FORM GST PMT-05 for crediting the amount deposited and
debiting the payment towards tax, interest, penalty, fee or any other amount;
• Challan to be generated in FORM GST PMT-06 on the Common Portal which is valid for a
period of 15 days. On credit of the amount a Challan Identification Number (CIN) will be
generated;
• Amount can be deposited vide internet banking, credit cards, debit cards, NEFT, RTGS or Over
The Counter payments through authorised banks for deposits upto Rs. 10,000/- per challan
per period. This limit is not applicable to deposits made by:
o Government departments,
o Proper officers authorised to recover outstanding dues from any person, including
recovery made through attachment or sale of moveable or immoveable properties
o Proper officer authorised for amounts collected by way of cash, cheque or demand draft.
Contd..
Payment of Taxes
Sr.No.
Particulars
• Payment required to be made by an unregistered person shall be made on the basis of a
temporary identification number generated through Common Portal
• Refund claimed and granted shall be credited to the electronic cash ledger.
4
Identification number for each transaction
• A unique identification number (UIN) shall be generated at the Common Portal for each debit
or credit to the electronic cash or credit ledger;
• The UIN so generated shall be indicated in the corresponding entry in the electronic tax
liability register.
Input Tax Credit (ITC) and
Matching of ITC
Input tax credit
Input Tax Credit refers to credit of IGST/CGST/SGST paid on supply of goods/services for
use in course or furtherance of business.
Meaning
Within one year from the date of invoice
Time limit to
take credit
Reversal
requirements
Conditions for
availing ITC
• Supplies used partly for business and partly for other purposes: ITC restricted to business
use
• Supplies used for taxable and exempt supplies: ITC restricted to taxable supplies
• If capital goods on which ITC was availed is supplied (sold or disposed-off), higher of the
amount equal to % points as may be prescribed, or tax on transaction value to be
reversed
• Reversal of credit in cases of goods lost, stolen, written-off or disposed off by way of gifts
or free samples
Invoice/supplementary invoice/debit note from a registered supplier
Goods/services are received
Tax is paid to appropriate Government
Furnishing of return
ITC to be availed earlier of September following end of financial year to which invoice
relates or filing of relevant annual return
• Where goods are received in instalments, credit can be availed after receipt of last lot.
• ITC can be availed on receipt of invoices and goods/services. However, payment for the
same needs to be made in 180 days failing which credit to be reversed along with
applicable interest from the date of availment till and re-availed once payment is made
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Input tax credit (Continued)
Specific exclusions
Motor Vehicles (available if meant for resale or to provide
specified services)
Tax component on which depreciation is claimed under
Income Tax Act, 1961
Goods/services acquired in the execution of works contract
resulting into immovable property, except plant and
machinery
Goods or services in relation to Food and beverages,
outdoor catering,
Goods acquired, which are used in construction of
immovable property except plant and machinery
Goods or services in relation to beauty treatment, health
services, cosmetic and plastic surgery, membership of a
club, health and fitness centre,
Tax paid under Composition scheme
life insurance, health insurance and travel benefits extended
to employees on vacation such as Leave or Home Travel
Concession,
Goods/services used for personal consumption
Goods lost, stolen, destroyed, written-off or disposed of by
way of gits or free samples;
Distribution of input tax credit (ISD)
‘Input Service Distributor means an office of supplier of goods/services, which receives tax invoices for
receipt of input services from vendors and distributes credit to other business units having same PAN’
Conditions for distribution of input tax credit by ISD
• Credit availed on common input services, such as Consultancy, Audit, Legal, Marketing, etc., is to be
distributed to all relevant units in the ratio of turnover of previous financial year
• Services received specifically for a unit, to be distributed to the said unit.
• Credit available for distribution in a month should be distributed in the same month
• Credit not to exceed the amount of ‘available’ credit
• Credit to be distributed on the basis of ISD invoice
Manner of distribution
Credits availed
Distributed as
Within same State
Inter-State
CGST
CGST
IGST
SGST
SGST
IGST
IGST
CGST/SGST
IGST
Tax Invoices
Tax Invoice
The system should be able to generate the invoice as prescribed under Draft GST Rules. The main
components that should be present on the tax invoices are as follows:
- Name, address and GSTIN / UID Number (International organizations), if registered, of the recipient i.e.
customer/location receiving the goods/service
- Name, address, State, State code and GSTIN number of the respective supplier
- Running / Consecutive serial number, in or multiple series containing alphabets, numerals, or special
characters hyphen or dash and slash unique for a financial yearDate of invoice
- Description of goods/ services
- (HSN) for goods/ Accounting codes (SAC) for services (to be notified)
- Taxable value of the supply taking into account discount or abatement, if any
- Rate and amount of CGST, SGST and IGST (UGST may also be captured as operations may be extended
to Union Territories which are notified under GST)
- Total value of goods or services
- Place of supply along with the name of State, in case of a supply in the course of inter-State trade or
commerce
- signature or digital signature (rules to be notified) of the authorized signatory
Credit Note
The system should be able to generate Credit Notes as prescribed under Draft GST Rules. The main
components that should be present on the Credit Notes are as follows:
- GSTIN of MHIPL entities
- Name, address, State and State code of MHIPL entities
- Nature of the document
- Running / Consecutive serial number containing only alphabets and/or numerals, unique for a
financial year
- Date of credit note
- Name, address and GSTIN / UID Number (International organizations), if registered, of the customer
receiving the goods/services
- Serial number and date of the corresponding tax invoice
- Description of goods/services
- Rate and amount of CGST, SGST and UTGST/IGST
- Total value of goods or services
- Signature or digital signature (rules to be notified) of the authorized signatory