GST_Solar_MSME_and_GST_Refund

1. GSTGoods and Services Tax
&COMPANY
Chartered Accountants
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GST | SOLAR | MSME

2. GST is an Indirect Tax which has replaced many
Indirect Taxes in India.
 The Goods and Service Tax Act, 2017 was
passed in the Parliament on 29th March 2017.
 The Act came into effect on 1st July 2017;
Goods & Services Tax Law in India is
a comprehensive, multi-stage, destination-based
tax that is levied on every value addition
What is GST in India?

3. GST is one indirect tax for the entire country.
So, before Goods and Service Tax, the pattern of tax levy was as
follows:
Buying Raw
Materials
Manufacture
Final sale to
customer
Sale to retailer
Sale to
warehouse/war
ehousing
VAT/CST
+ Excise
VAT/CST + Excise Duty
VAT
VAT

4. Final sale to
customer
GST Multi-stage
There are multiple change-of-
hands an item goes through along
its supply chain: from
manufacture to final sale to the
consumer.
Let us consider the following case:
Purchase of raw materials
Production or manufacture
Warehousing of finished goods
Sale to wholesaler
Sale of the product to the retailer
Sale to the end consumer
Buying Raw
Materials
Manufacture
Sale to retailer
Sale to
warehouse/wareho
using
Goods and Services Tax is levied on each of these stages which
makes it a multi-stage tax
IMPORT

5. What are the components of GST?
There are 3 taxes applicable under this system: CGST, SGST & IGST.
CGST: Collected by the Central Government on an intra-state sale
SGST: Collected by the State Government on an intra-state sale
IGST: Collected by the Central Government for inter-state sale

6. Tax Payable ITC Utilisation Order
IGST IGST > CGST > SGST
CGST IGST > CGST
SGST/UTGST IGST > SGST/UTGST
PREFERENCE OF UTILISATION OF GST INPUT

7. Advantages Of GST
GST has mainly removed the Cascading effect on the sale of goods and services.
Removal of cascading effect has impacted the cost of goods. Since the GST
regime eliminates the tax on tax, the cost of goods decreases. GST is also mainly
technologically driven. All activities like registration, return filing, application
for refund and response to notice needs to be done online on the GST Portal;
this accelerates the processes
 Uniformity in Taxation
 Helping Government Revenue Find Buoyancy
 Cascading of Taxes
 Simpler and Lesser Number of Compliances
 Common Procedures
 Common Portal

8. Collection of
taxes – GST
registration helps
to collect taxes
from customers
also pass on the
tax credit to
customers on
purchases made
Input Tax
Credit – A
customer can
claim ITC (Input
Tax Credit) for
taxes paid on
purchases and
can utilize the
same credit
towards payment
of due taxes
Seamless Flow
– At the national
level, GST helps
the seamless flow
of ITC towards
recipients from
suppliers
Advantages of GST Registration

9. Who Should Register for GST?
> Individuals registered under the Pre-GST law (i.e., Excise, VAT,
Service Tax etc.)
> Businesses with turnover above the threshold limit of Rs. 20
Lakhs Rs. 40 Lakh(wef 01-04-19) (Rs. 20 Lakhs for North-Eastern
States, J&K, Himachal Pradesh and Uttarakhand)
> Casual taxable person / Non-Resident taxable person
> Agents of a supplier & Input service distributor
> Those paying tax under the reverse charge mechanism
> Person who supplies via e-commerce aggregator
> Every e-commerce aggregator
> Person supplying online information and database access or
retrieval services from a place outside India to a person in India,
other than a registered taxable person

10. 1. The limit of GST Registration is Increase from Rs. 20 Lakh to
Rs. 40 Lakh for suppliers of goods. However, this limit
remains Rs 20 lakhs for suppliers of services
2. GST Composition limit is hiked to Rs. 1.5 crore. Tax
payments to be made quarterly and returns to be filed
annually starting 1st April 2019.
3. New composition scheme is introduced for service providers
and those who supply services along with goods; the
Turnover limit set is Rs 50 lakhs and the Tax rate is fixed at
6%
Effective Date 01-Apr-2019
Latest for 32nd GST Council Meeting

11. Who can opt for Composition Scheme?
A taxpayer whose turnover is below Rs 1.0 crore* Rs. 1.5 Crore
can opt for Composition Scheme. In case of North-Eastern
states and Himachal Pradesh, the limit is now Rs 75* lakh.
The following people cannot opt for the scheme:
 Supplier of services other than restaurant related services
 Manufacturer of ice cream, pan masala, or tobacco
 A person making inter-state supplies
 A casual taxable person or a non-resident taxable person
 Businesses which supply goods through an e-commerce
operator

12. Composition Scheme
 Lesser compliance (returns,
maintaining books of
record, issuance of
invoices)
 Limited tax liability
 High liquidity as taxes are
at a lower rate
 Within State
 No Input Tax Credit
 The taxpayer will not be
eligible to supply exempt goods
or goods through an e-
commerce portal.
Advantages
Disadvantages

13. Return Due Date Persons Required To File
GSTR-1
11th Of Every Month Turnover Exceeding Rs.1.50 Cr. Or Opted To
File Monthly Return. And 31st Of The Month Following The
Quarter For Which The Return Is Being Filed. Quarterly Return For
Registered Persons With Aggregate Turnover Up To Rs.1.50 Cr.
All Registered Person
GSTR-2 For The Time Of Being GST Council Has Suspended All Registered Person
GSTR-3B 20TH OF Every Month All Registered Person
GSTR-4 18Th Of The Month Following The Quarter For
Which The Return Is Being Filed.
Person Registered Under Composition Scheme
GSTR-5 20Th Of Every Month And Within 7 Days After
Expiry Of Registration
Non-Resident Taxable Person
GSTR-6 13Th Of Every Month Input Service Distributors
GSTR-7
10Th Of Every Month Persons Remitting TDS Under Section 51 Of The GST Act
GSTR-8 10Th Of Every Month E-Commerce Operators
GSTR-9 31St Dec Of Next Financial Year, CBIC Revise The
Due Date Of GSTR9 FY 17-18 is 31St Mar-2019
Registered Persons
GSTR-10
Within 3 Months Of Cancellation Of GST Registration
Registered Persons Who Opts Cancel Or Surrender GST
Registration
Types of GST Returns & Due Dates

14. on solar power generating
plant and other renewable energy plants

15. > GST rate of 5% rate has been prescribed on
renewable energy devices & parts for their
manufacture (bio gas plant/solar power based
devices, solar power generating system (SGPS)
etc) [falling under chapter 84, 85 or 94 of the
Tariff].
> Other goods or services used in these plants
attract applicable GST.
GST on Solar Power Plant
In the 31st GST Council Meeting on 22nd Dec., 18 decided as follows:

16. > Certain disputes have arisen regarding GST rates where
specified goods attracting 5% GST are supplied along
with services of construction etc and other goods for
solar power plant.
> To resolve the dispute the Council has recommended
that in all such cases, the 70% of the gross value shall be
deemed as the value of supply of said goods attracting
5% rate and the remaining portion (30%) of the aggregate
value of such EPC contract shall be deemed as the value
of supply of taxable service attracting standard GST rate.
GST on Solar Power Plant

17. UDYOG AADHAAR
MSMEMICRO SMALL AND MEDIUM ENTERPRISES
उद्योगआधार
UDYOG AADHAR is a unique 12 digit UDYOG AADHAR Number (UAN). The
government of India initiated UDYOG AADHAR registration. In recent times,
for reinforcing small-scale businesses within the country, the govt. of India
has initiated the UDYOG AADHAR Registration method.

18. Benefits of UDYOG AADHAR
 Collateral free loans from bank
 Excise exemption
 Government subsidy
 1% exemption in interest on OD
 Reduce rate of interest of Banks
 Protection on delay in payments
 Exemptions while applying
government tenders
 Waiver of stamp duty & registration
fee
 Octroi benefits
 Fast resolution of disputes
उद्योगआधार

19. MCA issued notification for filing of MSME-1 form:
Who need to file ?
Every Company which has received goods or services from Micro &
Small Enterprise AND Payment is due/ not paid to such enterprise for
46 days from date of acceptance
E-FORM MSME-1

20. Refund on GST
SITUATIONS LEADING TO REFUND
CLAIMS
1.Export of Goods or services
2. Supplies to SEZs units and
developers
3. Deemed Export supplies
4. Refund of taxes on purchase
made by UN or embassies etc
5. Refund arising on account of
judgment, decree, order or
direction of the Appellate
Authority, Appellate Tribunal or
any court
6. Refund of accumulated Input
Tax Credit on account of
inverted duty structure
7. Finalisation of provisional
assessment
8. Refund of pre-deposit
9. Excess payment due to mistake
10. Refunds to International tourists
of GST paid on goods in India and
carried abroad at the time of their
departure from India
11. Refund on account of issuance
of refund vouchers for taxes paid on
advances against which goods or
services have not been supplied
12. Refund of CGST & SGST paid by
treating the supply as intra-State
supply which is subsequently held
as inter-State supply and vice versa.

21. STANDARDISATION OF PROCEDURE
> The GST laws makes standardised provisions for making a refund
claim.
> Every claim has to be filed online in a standardised form. The
application shall be forwarded to the proper officer who shall, within a
period of fifteen days of filing of the said application, scrutinize the
application for its completeness and where the application is found to
be complete in all terms, an acknowledgement shall be made available
to the applicant through the common portal electronically. However,
till the time the refund module on the GSTN portal is operationalised,
facility for manual filing of refund claims has been provided. The claim
for refund of amount lying in the credit balance of the cash ledger can
be made in the monthly returns also. The proper officer has to convey
deficiencies if any in the refund claimed in such cases the claim will
be sent back to the applicant along with the notified deficiencies and
the applicant can file the refund claim again after making goods the
deficiencies.

22. THANKS !
Specific Questions Please ……