Insights on GST Issues and Implementation

Gain a comprehensive overview of GST in India, including issues in indirect taxes, taxes to be subsumed, exclusions from GST, and various aspects of interstate supply. Explore the complexities and implications of the Goods and Services Tax system.

• GST
• India
• Taxes
• Implementation
• Overview

sen_my Follow

Uploaded on Feb 25, 2025 | 1 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.

Presentation Transcript

1. Hiregange & Associates Chartered Accountants Conceptual Understanding of GST - CA Sudhir V S

2. Overview of GST Issues in indirect taxes at present: Cascading effect of tax / Tax on more than 100% value No credit of Taxes paid CST, Octroi etc Various forms to be submitted Compliance under multiple laws Check posts, transport documentations, delay in transportation Less use of technology in tax administration High cost of collection of taxes High cost of compliances Ways to parallel economy / corruption

3. GST in INDIA Origin based to destination based Multi-stage value added tax Law making authority GST Council Records maintained Electronically.. GSTN State wise / business vertical wise registration Exemptions .. very few, may be by way of refunds Levy is on Supply UTGST on supplies made within Union Territory.

4. Taxes to be Subsumed Taxes to be subsumed State Levies Central Levies Entertainm ent Tax Customs Cesses Octroi Entry Tax ST ED Luxury Tax CST VAT S-GST C-GST Intra state I-GST (interstate) www.hiregange.com 4

5. What is excluded??? Not covered under GST Petroleum crude; High speed diesel; Motor spirit (commonly known as petrol); Natural gas; Aviation turbine fuel; and Alcohol for Human Consumption

6. Inter - State Inter State Supply Sec 7 of IGST Where location of the supplier and Place of supply are in different States/UT Import of Services Supply to SEZ Supplier located in India and place of supply outside India Supply in taxable territory, not being an intra-state supply & not covered elsewhere, shall be an inter-state supply. Inter-State supply IGST Intra-State supply SGST+CGST

7. Supply Supply Includes For Supplywithout consideration made or agreed to be made Schedule I Permanent transfer/disposal of businessassets where ITC availed Supply of goods or services between related persons, or between distinct persons , when made in the course or furtherance of Business (Gifts provided by the employer to employee exceeding Rs50,000) Supply between agent and principal Import of service from a related person . Whether or not for business consideration & for Business Purposes All form of supply of goods & Services Sale Transfer Barter Exchange License Rental Lease Disposal Importation of service for consideration www.hiregange.com 7

8. Supply Schedule II : Activities to be treated as supply of goods or services Supply of services Supply of goods Transfer of right Lease/tenancy/license to occupy land Lease of any building for business/commerce Treatment or process applied to other s goods. Goods put to private/ non business use whether or not for consideration Renting of immovable property. Construction of complex except where the consideration is recd after OC. Temporary transfer of IPR. Development, designing of software. Agreeing to tolerate an act. Transfer of right to use. Works contract Supply of food for human consumption. Transfer of title. Hire Purchase Transfer/ Disposal of business assets whether or not for consideration Supply of goods by any unincorporated association to a member Note : Sale of assets by a person who ceases to be a taxable person shall be deemed to be supplied in the course or furtherance of business unless 1. Transferred as a Going Concern to another person 2. Business carried on by a personal representative 8

9. Supply Schedule III : Specifies certain activities as neither supply of goods nor supply of service Services by: Employee to the employer Any Court & Tribunal Funeral, burial services Actionable claims other than lottery, betting and gambling Sale of land & Building Functions performed by the MP s, MLA s, Members of Panchayats, Members of Municipalities and Members of Local Bodies and Person who hold post in pursuance of provisions of Constitution etc.,

10. Reverse Charge Govt may notify the categories of supplies of goods/service for RCM - Recipient of goods/service is liable to pay GST. Supply by person who is Not Registered Recipient of such supply is liable. Govt may notify the categories of Services Tax shall be paid by the e- commerce operator if he is a supplier. If e-commerce operator does not have a physical presence in the taxable territory - Any person representing him shall pay.

11. Composition Levy - Govt may permit a regd. Taxable person whose aggregate TO in the preceding FY did not exceed Rs. 50 lakhs to pay composition tax. Category of persons CGST SGST 1% Manufacturers 1% Supply of food other than alcoholic liquor for human consumption Any other supplier 2.5% 2.5% 0.5% 0.5% Option to pay tax under composition scheme is not available to the following persons - Any person supplying services other than supply of food. - Making supplies not leviable to tax. - Engage in making inter state outward supply of goods. - Supplying goods through an electronic commerce operator who is required to collect tax. - Not a manufacturer of notified goods.

12. Stock Transfers Stock transfer from one state to another Liable under GST Stock transfers within the state Not liable The recipient unit can take the credit based on document issued by Supplier. This may have an impact on cash flows.

13. Time of Supply Earliest of the date on which: Date of issue of invoice/ last date on which required to issue invoice Supplier receives payment Under RCM Earliest of the date on which: 31st day from the date of invoice Residuary: Date of entry in BOA of recipient Date of payment as entered in BOA of recipient Date of receipt of goods ToS for vouchers www.hiregange.com 13

14. Place of supply of Services To a registered person Location of service receiver To a non registered person Location of the service receiver available on the records of provider or Location of the supplier of service. of Goods Movement of goods Location at which movement of goods terminates for delivery No Movement of goods Location of goods at the time of delivery to the receiver www.hiregange.com 14

15. Valuation Transaction value (price actually paid or payable) Recipient and supplier are not related Price is the sole consideration EXCLUDES INCLUDES Discount given b 4 or at the time of supply & shown in invoice Incidental expenses charged by supplier to recipient packing/commn Taxes, duties, cess, fees, charges not under this Act Supplier liable to pay but incurred by recipient Discount given after supply but established in agreement and linked to invoices subsidies directly linked to the price excluding subsidies provided by the Central and State governments Interest, late fee, penalty for delayed pmt of consideration of supply ITC has been reversed by recipient 15 Hiregange & Associates 15

16. Valuation - Rules Value of Supply of Goods/Services where the consideration is not fully in money or the transaction between Related Parties, then the value of such Supply is Open Market Value of such Goods/Services. If the Open Market Value is not available, then the value of Supply is the value of like kind and quantity. From the above cases if we are not able to find the value, then the value of such Supply is 110% of Cost of Production. If the Goods are supplied between the Principal and the Agent, then the Value of such transaction is Open Market Value of such Goods or at the option of supplier i.e. 90% of price charged for like Goods in normal cases.

17. Schedule V Persons Liable to be Registered Registration Registration Intra-State taxable supplier Every taxable supplier having aggregate turnover in excess of 20 lakhs/10 lakhs Registration is required from every state from where taxable supply is made Registration not required for agriculturist for purposes of agriculture Persons exclusively engaged in non-taxable or exempt supply Business transferred as a going concern Transferee liable to registration Mandatory Migration Registered tax payers under current regime are mandatorily liable to be registered w.e.f the appointed day Section 139 provides for migration of existing taxpayers to GST Tax payers registered under current regime Compulsory Registration Notified persons Inter-state taxable supplier Casual Taxable Person Person liable under Reverse charge NR Taxable Person Tax deductor u/s 51 Tax collector u/s 52 e-com Operator OIDARS Other notified person Agent ISD e-com Supplier 17

18. Returns Types of Returns SN Return Purpose Due date Outward supplies made by taxpayer (other than composition taxpayer and ISD) 1 GSTR 1 10th of next month Inward supplies received by a taxpayer (other than a composition taxpayer and ISD) After 10th before 15th of next month 2 GSTR 2 3 GSTR 3 Monthly return (other than composition taxpayer and ISD) 20th of next month 4 GSTR 4 Quarterly return for Composition Taxpayer 18th of next quarter Last day of registration /Monthly 5 GSTR 5 Periodic return by Non-Resident Foreign Taxpayer 6 GSTR 6 Return for Input Service Distributor (ISD) 13th of next month 7 GSTR 7 Return for Tax Deducted at Source Hiregange & Associates 10th of next month 18

19. Types of Returns Returns SN Return Purpose Due date 8 GSTR-7A TDS Certificate 9 GSTR 8 Statement for E-commerce operators 10th of next month 10 GSTR 9 Annual Return 31st Dec of next FY 12 GSTR 9A Simplified return to be filed by composition dealer 13 GSTR 9B Reconciliation statement 14 GSTR 10 Final return 15 GSTR 11 Details of inward supplies of goods/services to a person having UIN 19 Hiregange & Associates

20. Returns The unmatched amounts shall be rectified else will be added to the output liability of the subsequent month of the recipient. Any unmatched details shall be rectified in the month/period in which the error is noticed If supplier declares such invoice in his return subsequently then the recipient can reduce his output tax liability that was earlier added. Any unmatched details can be rectified only up to September/due date of filing annual return.

21. For any clarification sudhir@hiregange.com 21

22. Our Presence Hiregange & Associates Mumbai No.409, Filix, Opp. Asian Paints, LBS Marg, Bhandup West, Mumbai-400078 Tel. +912225955533, +912225955544, vasantbhatca@gmail.com Mobile:+91 9867307715 Gurugram 509, Vipul Trade Centre, Sohna Road, Sector 48, Gurugram, 122009 Tel: 8510950400 ashish@hiregange.com Gurugram Pune Rajyog Creations Apartment, Flat No. 5, IV Floor, Anand Park, Above HDFC Bank, Aundh, Pune - 411 007. Phone: 7680000205 / 020-41202013 E-Mail: ravikumar@hiregange.com Vishakhapatnam Sai Sree Kesav Vihar, Flat No.101, D.No.9-19- 18, CBM Compound, Visakhapatnam 530 003 Tel + 91 891 6009235 anil@hirengange.com Mob:9989604111 Mumbai Vizag Hyderabad Pune Bengaluru Chennai Bengaluru (HO) 1010, 1 st Floor, 26 th Main, (Above Corporation Bank) 4th T Block, Jayanagar, Bangalore- 560041 madhukar@hiregange.com Tel: +91 80 41210703 Chennai T3, Aman Sindhur Pantheon Road, Egmore, Chennai 600 008. vikram@hiregange.com Mob: 9962508380 Hyderabad Basheer Villa , HN 8-2-268/1/16/12 2nd Floor, Sriniketan Colony, Road No.3, Banjara Hills, Hyderabad 500034 sudhir@hiregange.com Tele Fax- +91 40 23606181 www.hiregange.com Private & Confidential 22 Hiregange & Associates