This is about the understanding of the provisions applicable in GST. This Presentation talks about the complete practical understanding. There is a series of presentation available but for now we are providing our first PPT free of cost.

1. GSTGST
Goods & Service TaxGoods & Service Tax
Basic Understanding of GSTS H A & Associates,
Chartered Accountants,
NOIDA

2. Introduction of GST
ØOne Tax One Market Concept
ØDestination-based consumption tax.
Current Tax Regime
State Taxes –
VAT
Entry Tax
Octori
Purchases Tax
Central Taxes –
Excise
Service Tax
Customs
CST
GST Regime
CGST + SGST/ UTGST
to be levied on within
state supplies
IGST to be levied on
outside state supplies

3. Advantages of GST
Credit for all
expenses in
course or
furtherance of
business
Cross Utilisation
permitted
between
CGST/SGST and
IGST
No cascading
effect of taxes.
ØPresently, there is a cascading effect of taxes. VAT/ CST is
levied on the value inclusive of Excise duty.
ØTax rate to be same for both within state purchase vs outside
state purchases.

4. Cross Utilization of Credits
Presently, traders can't take input credit of Service Tax at
the time of calculating output liability on Goods.
Under GST,
Traders will be allowed to Input Tax Credit on GST paid on
services even calculating output liability on Goods.

5. Scope of SupplyScope of Supply
All forms of supply of goods or services or both such as sale, transfer,
barter, exchange, licence, rental, lease or disposal made or agreed to be
made for a consideration by a person in the course or furtherance of
business
All forms of supply of goods or services or both such as sale, transfer,
barter, exchange, licence, rental, lease or disposal made or agreed to be
made for a consideration by a person in the course or furtherance of
business
Import of services for a consideration whether or not in the course or
furtherance of business
Import of services for a consideration whether or not in the course or
furtherance of business
The activities specified in Schedule I, made or agreed to be made without
a consideration
The activities specified in Schedule I, made or agreed to be made without
a consideration
The activities to be treated as supply of goods or supply of services as
referred to in Schedule II.
The activities to be treated as supply of goods or supply of services as
referred to in Schedule II.

6. Time of Supply
Time of Supply of Goods Time of Supply of Services
(a) Date of issue of invoice or the last
date on which invoice is required to be
issue.
(a) Date of issue if invoice is issued
within the prescribed time or the date
of receipt of payment whichever is
earlier
(b) Date of receipt of payment by
suppliers
(whichever is earlier)
(b) Date of provision of service if the
invoice is not issued within the
prescribed time or the date of receipt
of payment whichever is earlier.
(c ) Date on which the recipient shows
the receipt of services in his books of
account, in case none of the above
applies
(which ever is earlier)

7. VALUEOF SUPPLY OF GOODS AND/OR SERVICES
Transaction Value
Price actually paid or payable for the said goods/services
And where the supplier and recipient of supply are not related
and
And the price is the sole consideration.

8. Composite and Mixed Supply
A composite supply comprising two or more supplies, one of which is a
principal supply, shall be treated as a supply of such principal supply.
Example: Where goods are packed and transported with insurance, the
supply of goods, packing materials, transport and insurance is a
composite supply and supply of goods is the principal supply.
A mixed supply comprising two or more supplies shall be treated as
supply of that particular supply which attracts the highest rate of tax.
Example: A supply of a package consisting of canned foods, sweets,
chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied
for a single price is a mixed supply. Each of these items can be supplied
separately and is not dependent on any other. It shall not be a mixed
supply if these items are supplied separately.

9. Taxability and Credit Mechanism
Type of Levy CGST SGST IGST
Levied on Local Supply Local Supply Inter State
Supply
Imports into
India
Credit Order 1ST CGST 1ST SGST 1ST IGST
2ND IGST 2ND IGST 2ND CGST
3RD SGST

10. GST - Effective Date 1st July 2017
5 Tier Structure Tax Rates
0%
5%
12%
18%
28%

11. Steps Towards GST
> Migration for existing Tax Payers
New registrations
> Compliances – Returns, Tax Credit Matching
> Records – Invoices, Debit/Credit Notes
Ledgers/ Registers

12. Benefits of Registration
Registered Person shall be in possession of Tax invoice/ other such document
issued by a registered supplier.
Registered Person only authorized to collect tax from his purchasers and
pass on the credit of the taxes paid to purchasers or recipients.
Accounting of Tax Paid.

13. Migration and New Registration in GST
Existing Tax Payers Traders have to, migrate to GSTN through
providing necessary information to www.gst.gov.in
For New Registration – Yet not initiated.
Limits for taking registration under GST
Business whose
- Annual Turnover exceeding Rs. 20 Lakhs
- For North East State – Annual Turnover exceeding Rs. 10 Lakhs

14. ØDealers having only within states sales and annual taxable
turnover less than Rs. 50 Lacs in the preceding financial
year .
Ø0.5% GST apply on the total turnover.
ØDealer Need to issue Bill of Supply instead of Tax Invoice.
ØCredit of Taxes will not allowed.

15. Requirements for taking input tax credits
ØDealers should have tax invoices/debit notes and other
documents as may be prescribed
ØGoods/Services actually received
ØTax has been paid
ØFurnishing of necessary returns within due dates

16. Return For To be filed by
1 GSTR 1 Outward supplies made by taxpayer (other
than compounding taxpayer and ISD)
10th of the next
month
2 GSTR 1A Details of outward supplies as added/
deleted/ corrected by the recipient
Auto populated
3 GSTR 2 Inward supplies received by a taxpayer
(other than a compounding taxpayer and
ISD)
15th of the next
month
4 GSTR 2A Details given by supplier of supplies shall be
auto populated here
Auto populated
5 GSTR 3 Monthly return (other than compounding
taxpayer and ISD)
20th of the next
month
6 GSTR 4 Quarterly returns for compounding
taxpayers
18th after end of
quarter

17. Return For To be filed by
8 GSTR 6 Return for Input Service Distributor (ISD) 13th of the next
month
9 GSTR 6A Details of inward supplies made available to
ISD recipient on the basis of FORM GSTR-1
furnished by the supplier
Auto populated
10 GSTR 7 Return for Tax Deducted at Source 10th of the next
month
13 GSTR 9 Annual Return By 31st December
14 GSTR 9A Simplified annual return by compounding
taxpayer
By 31st December
15 GSTR 9B Reconciliation Statement Annual Return
16 GSTR 10 Final Return Within 3 months
of surrender

18. Responsib
le Person
Particulars Forms Cut off dates
1 Seller Upload sales details GSTR 1 10TH of the next
month
2 - Details of sales accessible to buyer GSTR 2A Auto Populated
3 Buyer Upload final purchases in from GSTR 2 GSTR 2 15TH of the next
month
4 - Modified purchase details (GSTR 2 by
buyer) available to seller
GSTR 1A Auto Populated
5 Seller Can modified sales details on basis
purchases updated by buyer
GSTR 1 Amended upto
17TH of the next
month
6 Seller Payment of Monthly GST Liability - 20TH of the
next month
7 Partly auto
populated /
Buyer
/Seller
Monthly on the basis of GSTR 1 and
GSTR 2 and payment details
GSTR 3 20TH of the next
month
8 Buyer &
Seller
Communication of credit mis match - Last date of the
month

19. Vendor uploads
data & pays tax to
the Government
Buyer gets
credit &
utilizes it to
discharge
liability

20. Vendor’s
Returns
Buyer’s Returns
Vendor has to ensure his own
compliance and in-turn the
compliances of his vendors so that
the credit chain works seamlessly
If the vendor defaults in payment of
taxes to the Government or does not
upload the data correctly, then the
credit would not be allowed to the
buyer
Responsibility Matrix
• Loss of credit in case of vendor non compliance
• Addition in output tax of recipient in case of discrepancy

21. Records –
ØName address and GSTIN of the supplier
ØBill No with alphabets &/or numeric unique for a financial year and date
ØGSTIN registered recipients – Name, address and GSTIN
ØUnregistered recipients – Name, address, state, pin code if value of supply exceed Rs. 50,000/- in single time.
ØDescription of goods/services and HSN Code of product and SAC code of services .
ØQuantity of goods and units
ØTotal value and taxable value
ØRate of CSGT, SGST or IGST
ØPlace of supply along with the name of state
ØPlace of delivery if different from place of supply
ØIndicating whether tax payable on reverse charge
ØWords Revised Invoices/Supplementary Invoices along with date of original invoice number
ØSignature or Digital Signature of the suppliers or his authorised representatives.
Particulars of - Invoices

22. Debit/Credit Notes OR Supplementary Invoices
Supplier may issue credit notes –
> If goods return by the recipient
> Services supplied are found to be deficient
> Bill value and tax charge exceeds from actual bill value
and tax
Supplier may issue debit notes –
> Bill value and tax charge less from actual bill value and
tax

23. Numbers of Invoices Copies
GOODS SERVICES
Triplicate Duplicate
Original – Recipient Original – Recipient
Duplicate – Transporter* Duplicate – Supplier
Triplicate - Supplier
* Duplicate copy for transporter is not required, if the
suppliers obtains Invoice reference numbers

24. E – Ledgers /Registers
Electronic Tax
Liability Register
Electronic Credit
Register
Electronic Cash
Register
Tax Liabilities
maintained under this
register
Input tax credit
shown
Deposit made in cash
and TDS/TCS
Total Tax Liability
shown after netting
for the month
Credit can be used
only for payment of
output tax
Date shown in real
time basis
Can be used for
payment of GST Tax,
Interest, penalty, tax
under reverse charges
etc.

25. Transitional Provisions
Input Tax Credit on Stock prior to GST Implementation date
ØInput Credit on stock prior to GST will be allowed if it is shown in
the last return filed for the period ending with day immediately
preceding the appointed day
ØCredit allowed only if its is eligible credit under CGST Law
Input Tax Credit on Capital Goods prior to GST
Implementation date
ØUn availed Credit of capital goods, will be allowed if its is eligible
credit under CGST Law

26. STEPS TO BE TAKEN BY VENDORS FOR
GST
1ST Obtain user ID and Password for GSTIN
2ND Obtain Provisional GST registration number
3rd Update books of accounts and IT system to provide
details under GST
4th Same process to be completed by your vendors
5th Vendors need to do Impact analysis of GST in their
business and take the necessary decision accordingly .

27. THANK YOU
CA. Harshil Goyal
S H A & Associates
UGF- 05 & 06, Ocean Complex,
Sector-18, Noida- 201301