Goods and Service Tax
City Name
COVERAGE
1.
What is GST
2.
GST benefits to trade
3.
GST benefits to consumers
4.
Taxes to be subsumed
5.
Taxes to continue
6.
Taxable Event & Rates
7.
Nature of Supply
8.
Composition Dealer
9.
Type of GST levied
COVERAGE
10. Time & value of Supply
11. Input Tax Credit
12. Registration
13. Returns
14. Payment of taxes
15. Transitional Provisions
16. Invoice
17. Action plan for LPG Dealers
18. Action plan for Lube selling Dealers
19. Action plan for Vendors
WHAT IS GST
GST is the biggest tax reform in the history of independent India
Making India one single market with uniformity of taxation across states
single tax economy
GST means tax on SUPPLY of Goods or Services or both from 1st July 2017
All the Existing Taxation like
Excise Duty, Service Tax
VAT , CST etc.
will be subsumed in GST.
Supply includes Sale, transfer, barter, exchange, lease, license, rental & disposal
Transaction with relation to securities & money not covered in GST
GST COUNCIL
GST Council- Cooperative federalism is at work in true spirit
 a collective decision making body
 best example of democratic decision making governance structure
 Taxes are decided jointly by states and center. --> sharing sovereignty
 The GST council has met 15 times with 18000 man-hour spent to make
collective decisions.
GST BENEFITS TO TRADE
 Reduction
in
complexity
and
simplification
of
procedures
by
harmonization of laws, procedures and rate of taxes will make compliance
easier and simple.
 Currently there are more than 20 different taxes that are imposed by
center and states on goods and services which will now be subsumed
 The new GST law merges all existing central and states taxes (except
customs) into a single tax GST and make it uniform with few tax rates 5 % / 12% / 18% / and 28%
 Tax Payer will be allowed to avail full input tax credit paid on inputs
GST BENEFITS TO TRADE
 Tax refund in a speedy manner and automatically.
 GST is technology driven - no human interface between tax payer and
tax authority  corruption will go down
 Small traders with annual turnover upto
Rs 20 lakhs have an
optional exemption from GST
 Special provision for hilly and north eastern states traders - the GST
exemption threshold upto 10 lakhs
GST BENEFITS TO TRADE
 GST will enable smooth flow of goods and services from one part of
the country to the other parts.
 Corruption and leakages will go down as culture of compliance will
be up
 Reduced tax burden will lead to more investment leading to more
employment and thus GDP will increase by 1 to 2 %.
 GST will give boost to make in India by making domestic goods and
services competitive (currently imported inputs get favor vis-à-vis
domestically manufactured goods.)
GST BENEFITS TO TRADE

Nearly 81 per cent of the items will fall under below-18 per cent GST
rate slabs and only 19 per cent of the goods will be taxed above 18 per
cent.
 Self policing- more compliance leading to more tax credits
 Two months extension to file tax: In order to handhold the tax payers
and make them fully aware of the systems, it has been decided that the
tax filing for the month of July and August can be done in September.
GST BENEFITS TO CONSUMERS
 Simpler Tax system by subsuming all indirect taxes under GST.
 Transparency in taxation system
 Reduction in prices of goods & services due to elimination of cascading/
double taxation as now final consumer is paying almost 35% as taxes.
 GST law merges all existing central and states taxes (except
customs) into a single tax GST and make it uniform with few tax.
 Most of the commodities of mass consumption and essential day today
goods are zero rated Aam Aadmi consumption
GST BENEFITS TO CONSUMERS
 Final consumer end up paying 30 to 35% tax due to multiple taxes and
cascading of taxes (that means tax on tax).
 Reduced taxes under the GST will bring down inflation by 0.5 to 1.5 %
EXISTING TAXES
TAXES TO BE SUBSUMED
CENTRAL TAXES:
STATE TAXES:
Central Excise Duty
Additional duties of excise
VAT / Sales Tax /CST
Purchase Tax
Excise duty levied under
Medicinal & Toiletries Preparation Entertainment Tax
(not levied by the local bodies)
Act
Additional duties of customs
(CVD & SAD)
Luxury Tax
Entry Tax ( All forms)
Service Tax
Surcharges & Cess
Taxes on lottery, betting & gambling
Surcharges & Cess
TAXES TO CONTINUE
CENTRAL TAXES:
STATE TAXES:
Customs Duty (Import &
Export) ONLY BCD
Property Tax
Stamp Duty
Petroleum products
(Petroleum crude / MS/ HSD
/ ATF & Nat Gas)
Vehicle Tax (Road & Passenger Tax)
Electricity Duty
Excise on Alcoholic Liquor
(Human Consumption)
Toll Tax ( local bodies)
TAXABLE EVENT & RATES
Tax on supply of goods or services rather than
– Manufacture / production of goods,
– Provision of services or
– Sale of goods
Confusion whether supplies are supply of goods or as services is clarified
Declare certain activities/transactions neither as supply of goods nor services
like sale of land declared in Schedule III of CGST Act.
Maximum rate ring fenced in law at 28% except for Sin Goods
NATURE OF SUPPLY
Determination of nature of supply:
• Elaborate Rules provided for determining the place of supply
• Intra-State supply of goods or services –
 where the location of the supplier and
 the place of supply are in the same State
• Inter-State supply of goods or services –
 where the location of the supplier and
 the place of supply are in different States
COMPOSITION DEALER
A Composition dealer is a dealer whose turnover is between Rs 20 Lakhs
to Rs 75 Lakhs in a financial year.
The rates of tax for composition supply are as follows.
Business
Manufacturer
Rate of tax
1%
Restaurant
2.5%
Others
0.5%
Businesses dealing only in goods can only opt for composition scheme
Service sector not eligible for composition except restaurant sector.
Composition Scheme is not available if there is any inter-state supply
COMPOSITION DEALER
Composition Dealer is not allowed to avail input tax credit of GST paid to
their supplier.
The taxable person is required to furnish only one return i.e. GSTR-4 on a
quarterly basis and an annual return in FORM GSTR-9A.
Composition Dealer is not allowed to collect composition tax from buyer
A composition dealer cannot issue a tax invoice and cannot participate in
ITC chain.
TYPES OF GST LEVIED
TYPES OF GST LEVIED
SGST +
CGST
IGST
UTGST+
CGST
Supplier
Gujarat
Customer
Gujarat
Supplier
Rajasthan
Customer
Gujarat
Supplier
DNH
Customer
DNH
GST Principle
Dual GST
Concept
Destination
Destination
Based*
based
Fungibility of
Fungibility of
CGST & SGST on Intra-State Supplies
IGST on Inter-State Supplies
Administration : Origin (Location of Supplier)
Enjoyment : Destination (Place of Supply)
CGST & SGST not inter-fungible
Credits
Credits
IGST acts as a bridge across States
IGST – Acts as a bridge to flow credit
CREDIT POOL
(CGST / SGST)
A
CREDIT POOL (CGST / SGST)
C
B
D
E
F
A : Manufacturer
B,C,D,E : Traders in supply
chain
CREDIT POOL (IGST)
CREDIT POOL (IGST)
F : Final Consumer
Maharastra
Goa
Karnataka
TIME & VALUE OF SUPPLY
Time & Value of supply
• Elaborate principles devised for determining the time of supply with following
being crucial determinants with certain exceptions.
 Date on which supplier issues invoice
 Date on which supplier receives the payment, whichever is earlier
• Tax is to be paid on Transaction value (TV) of supply generally i.e. the price
actually paid or payable for the supply of goods or services between
unrelated parties
INPUT TAX CREDIT
ITC is available in respect of taxes paid on any supply of goods or services
used or intended to be used in the course or furtherance of business
ITC of tax paid used for making taxable supplies by a taxable person allowed
subject to four conditions:
 possession of invoice;
 receipt of goods or services;
 tax actually paid by supplier to government;
 furnishing of return
Full ITC allowed on capital goods in one go as against the part allowance in the
first year of purchase.
Negative list provided for non-allowance of ITC Ex : Tax paid of buildings, club
membership etc.
INPUT TAX CREDIT
Proportionate credits allowed in case inputs, inputs services and capital goods
are partly used for business and partly for non-business purposes, exempt
(including non-taxable) supplies
ITC cannot be availed after filing of return for the month of September of next
Financial Year or filing of Annual Return which ever is earlier.
Matching of supplier’s and recipient’s invoice details
ITC to be confirmed only after matching of such information
ITC to be reversed in case of mis-match
REGISTRATION
PAN based Registration required to be obtained for each State from where
taxable supplies are being made.
In case of Proprietorship- Name in the registration should be same as in PAN.
In case of Firm/Company GSTN & PAN should be in Firm/Company name. If
firm PAN is not available, PAN for the firm to be obtained for GST registration
A person, though not liable to be registered, may take voluntary registration and
avail the benefits of GST
Certain suppliers liable for registration without threshold limit eg: Vendors
making inter state supply , E commerce operator
REGISTRATION
Liability to be registered:
Every person who is registered or who holds a PAN
Every person whose turnover in a year exceeds the threshold limit
including supplies of GST Goods or services.
Dealer with sales of Rs 20 Lakhs of MS & HSD( Non GST ) and Rs 1000 of
Lubes (GST) Needs to be registered.
Dealer having ONLY sales of Rs 25 Lakhs of MS & HSD only: No registration.
Video for GST https://www.youtube.com/watch?v=KeSBoXs14t0
RETURNS
RETURNS
Single Return for CGST, SGST & IGST to be filed State wise
Annual return to be filed by 31st December of the following Financial Year along
with a reconciliation statement
Short-filed returns not to be treated as a valid return for matching & allowing ITC
and fund transfer between Centre and States
GST practitioners scheme to assist taxpayers mainly in filing of returns
No option to rectify any tax returns.
PAYMENT OF TAXES
System of electronic cash ledger and electronic ITC ledger
Tax can be deposited by internet banking, NEFT / RTGS, debit/credit card
and Over The Counter
Payment of Tax is made by way of the debit in the electronic cash or credit
ledger .
Cross-utilization of ITC between CGST & IGST, between SGST/UTGST &
IGST allowed
However CGST cannot be adjusted with SGST and Vice versa
TRANSITIONAL CREDIT
Input Credit for goods lying as stock on 30-06-2017 will be available only if
Goods are purchased within 12 months before 1st July 2017 and
Proper document evidencing payment of tax / duty paid should be available.
Credit of the in transit input & input services will be available for goods /
services dispatched on or before 30-06-2017, and input & input services are
received after 30-06-2017, only if:
Goods/Services are received on or before 30-07-2017
Documentation evidencing tax payment are available
INVOICE
HINDUSTAN PETROLEUM CORPORATION LTD
Visakh LPG Plant,HP Petropark,, Port Connectivity Road, 530009 . ANDHRA PRADESH.
GSTIN: 37AAACH1118B1ZB CIN : L23201MH1952GO1008858
DOCUMENT TYPE :
INVOICE
VEHICLE NO : AP35V3052
TRANSPORTER : UPLANDS GAS SERVICE
LOAD NO : 244986
DOCUMENT NO:17000078/RI/12732
DATE : 01/JUNE/2017
TIME : 1425
Recipient : UPLANDS GAS SERVICE
D NO. 10-50-14 WALTAIR UPLANDS , 10-50-14, WALTAIR
UPLANDS VISAKHAPATNAM .PIN : 400001
ANDHRA PRADESH, GSTIN: 37AAEFJ3995M1Z2
SR
1
DESCRIPTION
HSN
19 KG FILLED LPG
CYLINDER
14.2 KG FILLED
LPG CYLINDER
2
3
4
5
6
7
8
9
10
11
12
2711
1900
2711
1900
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
xxxxx
xxx
xxxxx
xxx
xxxxx
xxx
xxxxx
xxx
TOTAL
QNTY
Delivery address : UPLANDS GAS SERVICE
D NO. 10-50-14 WALTAIR UPLANDS , 10-50-14, WALTAIR
UPLANDS VISAKHAPATNAM .PIN : 400001
ANDHRA PRADESH, GSTIN: 37AAEFJ3995M1Z2
U
NI
T
TOTAL VALUE
INR
TAXABLE VALUE
INR
SG
RA
TE
SGST
AMOUNT
INR
XXXXXXXXXXXXX
CG
ST
RA
TE
XX
100
EA
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX
XX
300
EA
XXXXXX
XX
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX
XX
CGST AMOUNT
INR
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XX
XXXXXXXXXXXXX
TOTAL INVOICE VALUE IN
WORDS ( INR )
HSN WISE SUBTOTAL:
HSN
TOTAL VALUE
TAXABLE VALUE
XXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX
LOCK NO
SAMPLE NO
DENSITY
COMP1 DIP PL VOL
COMP2 DIP PL VOL
COMP3 DIP PL VOL
COMP4 DIP PL VOL
COMP5 DIP PL VOL
SGST
RATE
SGST AMOUNT
CGST
RATE
XXXXXXXXXXXXXX
CGST AMOUNT
XXXXXXXXXXXXXX
APPROVED BY :
Receiver sign:
Released by :
( Uplands gas services )
Driver’s sign:
Customer PO reference
RE
V
CR
G
X
ACTION PLAN FOR LPG DEALER
GST registration number has to be updated in the customer portal
LPG Dealer to issue Delivery Challan for empty cylinders returns
ITC of GST will be available for purchases made by dealer for business purpose
Dealer to issue a GST invoice for supply of LPG or ARB activities and receive
GST invoice for purchases used in business.
ITC will be available for delivery vehicles used in transporting LPG.
ITC for Tax paid stock as on 30th June 2017 shall be available.(Slide No 30).
ITC as indicated above is available for setoff against Output Tax liability of
dealer.
ACTION PLAN FOR LUBE/RETAIL DEALER
GST registration number has to be updated in the customer portal
Dealer selling lubes with turnover above Rs 20 Lakhs needs to be registered.
Invoice needs to be issued if the value of the supply is more than Rs 200
For supplies less than Rs 200 consolidated daily invoice to be prepared.
ITC is available for purchases made for business
GST invoices needs to be raised by dealer for his ARB share, Rent, etc.
ITC will be available for motor vehicles used in transporting of goods.
ITC for Tax paid GST stock as on 30/06/17 shall be available.(Slide No 30).
ITC so available for goods purchased is available for setoff of Output Tax.
In case of MS/HSD dealer ITC proportionate to MS/HSD volume to be reversed
ACTION PLAN FOR VENDOR
GST registration number has to be updated in the BTS portal
GST Invoice needs to be issued for all GST supplies having the GSTN details
of location from where the supply is dispatched and recipient location of HPCL.
Supply Invoices to be updated before 10th and GST liability to be discharged
before 20th of the succeeding month of supply
Non payment of taxes by Vendor will disallow the ITC for HPCL in all these
cases the tax and interest suffered will be recovered.
Any tax benefit due to GST to be passed on to consumers. – Antiprofitering
ITC for Tax paid GST stock as on 30/06/17 shall be available.(Slide No 30).
In case of unregistered vendor supplying GST Product GST will be paid by
HPCL under reverse charge and evaluation will be done accordingly.