goods and service tax gstmati.gov.in/docs/gst_presentation.pdf · ³$ model and roadmap goods and...

GOODS AND SERVICE TAX

GST

Introduction

Current indirect taxation laws administered by the Centre and the States exist in their own spheres whereby input tax credit on taxes levied by the Centre on supply of services and on manufacture of goods is not available for offset against tax payable on retail stage of goods

The embedded taxes levied by the Centre and the States are not available as input tax credit for offset against tax liability under the luxury tax, entertainment tax, cesses and surcharges

Introduction (cont…)

The Central Sales Tax levied on import of goods for consumption in the state, is not available as input tax credit against the Value Added Tax payable.

In addition state taxes like Luxury Tax, Entertainment Tax, etc. are standalone Taxes and are not available for setoff against value added tax payable within the State.

The above anomalies result in cascading effect of tax on tax thereby increasing the final value of the goods and services payable by the consumer.

Introduction (cont…)

The introduction of GST would be a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market.

The following illustration will bring the final price difference to the consumer due cascading effect of tax on tax

Old Indirect Tax System

Consumer Price ₹

5,10,201

GST system

Consumer Price ₹

4,83,340

Manufacturer pays only ** - *

= ₹18,000

Retailer pays *** - ** = ₹33,540

Cost of inputs ₹ , , .

[email protected]% ₹ , .

VAT @14.5% on ₹ ₹ , .

Value Addition 30% ₹ , .

Cost of production ₹ , , .

[email protected]% ₹ , .

Ex factory price ₹ , , .

CST @ 2% ₹ , .

Landing Price ₹ , , .

Value addition 10% ₹ , .

Showroom price ₹ , , .

VAT 14.5% ₹ , .

Cost of inputs ₹ , , .

GST 30% * ₹ , .

Value Addition 30% ₹ , .

Cost of production ₹ , , .

GST 30% ** ₹ , .

Landing Price ₹ , , .

Value addition 10% ₹ , .

Showroom Price ₹ , , .

GST 30% *** ₹ , , .

Features of Constitution Amendment Act

Taxes to be subsumed in GST Central Taxes State Taxes

• Central Excise duty

• Additional duties of excise

• Excise duty levied under Medicinal & Toilet Preparation Act

• Additional duties of customs (CVD & SAD)

• Service Tax

• Surcharges & Cesses

• State VAT / Sales Tax

• Central Sales Tax

• Purchase Tax

• Entertainment Tax (other than those levied by local bodies)

• Luxury Tax

• Entry Tax (All forms)

• Taxes on lottery, betting & gambling

• Surcharges & Cesses

GST

Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre to tax sale of goods and States to tax provision of services)

Features of Constitution Amendment Act

Alcohol for human consumption

Power to tax remains with the State

Five petroleum products – crude oil , diesel, petrol,

natural gas and ATF

GST Council to decide the date from which GST will be applicable

Tobacco Part of GST but power to levy additional excise duty with Central Government

Entertainment tax levied by local

bodies

Power to tax remains with the State

Preparation for implementation of GST (1/4)

0 2000 – initiating discussion on GST, The Vajpayee Government appointed the Empowered Committee of state Finance Ministers headed by the then Finance Minister of West Bengal, Dr. Asim Gupta.

0 2004 – Vijay Kelkar, then adviser to the Finance Ministry, recommends GST to replace the existing indirect tax regime.

0 Feb 2006 – GST appeared in the budget speech for the first time. The then Finance Minister Shri P. Chidambaram sets an ambitious task of implementing GST by April 2010.

0 April 2008 – The Empowered Committee submitted a report titled “A Model and Roadmap Goods and Services Tax in India ” to the Government.

0 Nov 2009 – The Empowered Committee submitted the 1st discussion paper on GST in the public domain.


o March 2011 – Constitution Amendment Bill (115th) to GST

introduced in the Lok Sabha – referred to Standing Committee

on Finance.

o March 2013 – Goods and Services Tax Network (GSTN) a not

for profit, non government private limited company was

incorporated. The Government of India holds 24.5%, all states

including NCT of Delhi and Pondicherry hold another 24.5 %

equity. The balance 51 % is with the non government financial

institutions. The company has been set up primarily to provide

IT infrastructure and services to the Central and State

Governments, tax payers and other stake holders for

implementation of GST.


o Feb 2014 – The 115th Constitution Amendment Bill to GST lapsed

due to dissolution of the 15th Lok Sabha .

o Dec 2014 – The Constitution Amendment Bill (122nd) to GST

introduced in the Lok Sabha.

o April 2015 – The sub committees on business processes of

registration, return, payment and refunds submitted their reports

o May 2015 – The Lok Sabha passed the The Constitution

Amendment Bill (122nd) to GST. The same was presented in the

Rajya Sabha.

o Aug 2015 – Government failed to win support of the opposition

to pass the Bill in the Rajya Sabha as it lacked majority.


o July 2016 – The Law Committee submitted the Model GST Law

which was approved by the Empowered Committee

o Aug 2016 – Rajya Sabha passed the Constitution Amendment Bill

(122nd) to GST and the Lok Sabha passed the amended Bill.

o Aug 2016 – Sept 2016 -20 States and UTS ratified the Bill.

o 8-9-2016 – The Hon’ble President of India accorded ascent to the

Bill which became the Constitution (101st) Amendment Act, 2016.

o 9-9-2016 – Meghalaya became the 21st State to ratify the Bill.

o 15-9-2016 – The Hon’ble President of India constituted the Goods

and Services Tax Council to take decisions on various issues

entrusted to it under the Constitution.

GST Council – Constitution

Chairperson – Union FM

Vice Chairperson - to be chosen amongst the Ministers of State Government

Members - MOS (Finance) and all Ministers of Finance / Taxation of each State

Quorum is 50% of total members

States - 2/3 weightage and Centre - 1/3 weightage

Decision by 75% majority

Council to make recommendations on everything related to GST including laws, rules and rates etc.

Main Features of the GST Act (1/4)

GST to be levied on supply of goods or services or both

All transactions and processes only through electronic

mode – Non-intrusive administration

PAN Based Registration

Registration only if turnover more than Rs. 20 lac / 10

lac for Special category states.

Option of Voluntary Registration

Deemed Registration in three common working days

Input Tax Credit available on taxes paid on all

procurements (except few specified items)


Credit available to recipient only if invoice is matched –

Helps fight huge evasion of taxes

Set of auto-populated Monthly returns and Annual

Return

Composition taxpayers to file Quarterly returns

Automatic generation of returns

GST Practitioners for assisting filing of returns

GSTN and GST Suvidha Providers (GSPs) to provide

technology based assistance


Tax can be paid by internet banking, NEFT / RTGS,

Debit/ credit card and over the counter

Interest of 18% on delayed payment of tax and 24 % on

excess claim of ITC or excess reduction of output tax

Concept of TDS for certain specified categories

Concept of TCS for E-Commerce Companies

Refund to be granted within 60 days. Interest payable

at 6% on delay beyond 60 days and at 9% if delay is on

confirmed refund order due to adjudication.


Provisional release of 90% refund to exporters within 7

days

Refund to be directly credited to bank accounts

Comprehensive transitional provisions for smooth

transition of existing tax payers to GST regime

Special procedures for job work

System of GST Compliance Rating

Anti-Profiteering provision

The Indian GST is known as the Dual GST

It has three components i.e.

• CGST (Central Goods and Services Tax) – Will be collected by central government on intra state sales of goods and services.

• SGST (State Goods and Services Tax) – Will be collected by the respective state governments on intra state sales of goods and services. The union territories without legislature will collect the UTGST (Union Territory Goods and Services Tax) on intra Union Territory sales of goods and services.

• IGST (Integrated Goods and Services Tax) – Will be collected by the central government on the interstate transaction of goods and services. The collected IGST revenue will be distributed between the states as per the provisions of the IGST Act. The total tax rate under the IGST will be the sum total of CGST + SGST or CGST+UTGST.

Administration of GST

• The GST will be administered jointly by the Central and the State Governments.

• To ensure single interface for tax payers, 90% of the tax

payers with turnover below Rs1.5 Crore p.a will be administered by the State Governments and for tax payers above Rs1.5 Crore p.a the administration will be administered by the Centre and state on a 50:50 basis.

• The processes of registration, payment and returns will be conducted on the GSTN common portal. The above processes including refund will be conducted online. This will ensure minimal interface between the tax payer and the tax officials.

•

Administration of GST (Cont..)

The CGST and the SGST Acts are a mirror image of each other with the exception of certain sections like Section 3 dealing with the Classes of Officers, Section 140 dealing with transition provisions, Section 173 and 174 dealing with insertions, omissions, substitutions and repeal of the existing Acts to be subsumed under the GST.

Goods and Services Tax Network (GSTN)

The GSTN is a not for profit Company established under Section 25 of the Companies Act. The Centre and the State Governments hold 49% Share in the Company and the private financial institutions hold 51% Share.

The Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST).

Goods and Services Tax Network (GSTN)

All business processes like registration, returns, payment will be done online on the GSTN portal www.gst.gov.in

In addition to the above, GSTN will also provide the State Tax Authorities with the BI Analysis, the report on tax payments, cross utilization of input tax credit and also will report to RBI and the State Accounting Authorities on the payment and apportionment of taxes.

http://www.gst.gov.in/







Benefits of GST (1/2)

Overall Reduction in Prices

Reduction in Cascading of Taxes

Common National Market

Benefits to Small Taxpayers

Self-Regulating Tax System

Non-Intrusive Electronic Tax System

Decrease in Inflation

Ease of Doing Business

Decrease in “Black”

Transactions

Benefits of GST (2/2)

Simplified Tax Regime

Reduction in Multiplicity of Taxes

Consumption Based Tax

Abolition of CST

More informed consumer

Poorer States to Gain

Make in India

Exports to be Zero Rated

Protection of Domestic Industry - IGST

GST Compensation

Implementation of GST may initially result in loss of revenue to the states. To assure the states that their revenue interests will be protected, the assurance was made part of the constitution amendment.

Accordingly the parliament passed the GST (Compensation to states) Act, 2017.

Compensation Mechanism for States

For the purpose of calculating the compensation amount payable in any financial year during the transition period, the financial year ending 31st March 2016 will be taken as the base year.

The projected nominal growth rate of revenue subsumed for a State during the transition period shall be 14% per annum for five years.

Compensation to be provided through Cess

Cess only on few specified luxury and demerit goods

Compensation for Meghalaya

Meghalaya collected approximately Rs640/- Crores from the subsumed taxation Acts plus Rs107/- Crores tax incentives extended to eligible industrial units in the base year 2015-16.

Thus @14% compounded growth, for the year 2017-18, the Central Govt will compensate if the revenue collection falls short of Rs970.80 Crores and for 2018-19 Rs1106.71 Crores and so on till the year 2021-2022 and the first quarter of 2022-23.

GST – Important definitions

“goods’’ means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

“services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.


“recipient” of supply of goods or services or both, means—

where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration and where no consideration is payable for the supply of goods or services, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available or services rendered and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied;


“supplier” in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied;

“casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in the taxable territory where he has no fixed place of business;


“reverse charge’’ means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act;

“tax period’’ means the period for which the return is required to be furnished;

“taxable person” means a person who is registered or liable to be registered under section 22 or section 24;


“taxable supply’’ means a supply of goods or services or both which is leviable to tax under this Act;

“taxable territory’’ means the territory to which the provisions of this Act apply;


“input tax” in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both and includes –

(a) the integrated goods and services tax charged on import of goods;

(b) the tax payable under reverse charge under sub-section (3) and (4) of section 9 CGST / SGST Act or under the provisions of sub-section (3) and (4) of section 5 of the IGST Act

but does not include the tax paid under the composition levy;

• “input tax credit” means the credit of input tax;


“composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;

Illustration: 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 a principal supply.


“mixed supply” means two or more individual supplies of taxable goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Illustration : A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks 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;


“works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods is involved in the execution of such contract;

Registration under GST - Overview

Common registration for three Acts.

Registration - PAN based.

Online application and online registration.

Submission of scanned copies of prescribed documents.

One registration for each State & facility of multiple registrations within a State.

Registration within 3 working days.

Only post registration physical verification.

No security deposits for registration.

No separate application for composition for new registration.

Separate provisions / procedures for migration of existing registration.

Registration Section 22

Every supplier making a taxable supply of goods or services or both in the State, shall be liable to be registered under this Act if his aggregate turnover in a financial year exceeds ten lakh rupees.

Registration is also mandatory where a business carried on by a taxable person registered under this Act is transferred or amalgamated or demerged, etc.

Compulsory Registration- Section 24

Compulsory registration is mandatory for –

(i) persons making any inter-State taxable supply;

(ii) casual taxable persons;

(iii) persons who are required to pay tax under reverse charge;

(iv) person who are required to pay tax under sub-section (5) of

section 9;

(v) non-resident taxable persons;

(vi) persons who are required to deduct tax under section 51,

whether or not separately registered under this Act;

(vii) persons who supply goods or services or both on behalf of

other taxable persons whether as an agent or otherwise;

Compulsory Registration- Section 24

(viii) input service distributor, whether or not separately

registered under this Act;

(ix) persons who supply goods or services or both, other than

supplies specified under sub-section (5) of section 9, through

such electronic commerce operator who is required to collect

tax at source under section 52;

(x) every electronic commerce operator;

(xi) every person supplying online information and data base

access or retrieval services from a place outside India to a

person in India, other than a registered person; and

(xii) such other person or class of persons as may be notified

by the Government on the recommendations of the Council.

Composition Taxpayer

Under Section-10 CGST/SGST Acts, a tax payer with annual turnover not exceeding Rs.50 lakhs p.a may opt to pay tax at composition rate

Compounding threshold limit to be Rs. 50 lac with -

Categories Tax Rate

Traders 1%

Manufacturers 2%

Restaurants 5%


A composition tax payer is not allowed to –

1. Claim credit of Input tax

2. Issue tax invoice

3. Make inter-state supply of goods or services or both

• Composition tax payer has to pay tax on the entire turnover inclusive of exempted supplies

• Composition tax payer has to pay tax on reverse charge on procurements exceeding Rs 5000/- daily but will not get to claim input tax credit thereof


Benefits of Composition taxpayer –

Quarterly instead of monthly returns

Maintenance of accounts simpler in nature

Simpler annual return.

Tax Deduction at Source (TDS) under GST Section 24 - Compulsory Registration

Notwithstanding anything contained in sub section 1 of section 22 , the following categories of persons undertaking taxable supplies shall be required to be registered under this Act.

Clause VI –Persons who are required to deduct tax at source under section 51, whether or not separately registered under this Act.

Section 24 - Compulsory Registration

All DDOs required to deduct tax at source are to submit the application in FORM GST REG-07 in the GST portal https://www.gst.gov.in/

On receipt of an application under sub-rule (4), an acknowledgement shall be issued electronically to the applicant in FORM GST REG-02.

Verification of the application and approval.-(1) The application shall be forwarded to the proper officer who shall examine the application and the accompanying documents and if the same are found to be in order, approve the grant of registration to the applicant within a period of three working days from the date of submission of the application.

https://www.gst.gov.in/










Section 25 - Procedure for Registration

(1) Every person who is liable to be registered under section 22 or section 24 shall apply for registration within 30 days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed

(6) Every person shall have a permanent account number (PAN) issued under the Income Tax Act 1961 to be eligible for grant of registration;

Provided that a person required to deduct tax under section 51 may have, in lieu of a permanent account number, a tax deduction and collection account number (TAN) issued under the said Act in order to be eligible for grant of registration.

Section 51 - Tax deduction at Source

(1) Notwithstanding anything to the contrary contained in this Act, the government may mandate (a) a department or establishment of the central government or state government; or

(b) Local authority; or

(c) Governmental agencies; or

(d) Such persons or category of persons as may be notified by the government on the recommendations of the council.

Section 51 - Tax deduction at Source (cont..)

• To deduct tax at 1% (SGST) and 1% (CGST) from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees;

Provided that no deduction shall be made if the location of the supplier and the place of supply is in a state or union territory which is different from the state or as the case may be, union territory of registration of the recipient.


• Deduction under IGST

Subject to the provisions of Section 10 IGST Act, supply of goods or services, where the location of the supplier and place of supply are in;

a) Two different states

b) Two different Uts

c) State and a UT

Shall be treated as a supply of goods in the course of inter state trade or commerce and the tax shall be deducted @ 2% from the payment made or credited to the supplier


The value of supply shall be taken as the amount excluding the tax indicated in the invoice.

The amount deducted as tax under the section shall be paid to the government by the deductor within 10 days after the end of the month in which such deduction is made, in such manner as may be prescribed.

The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the government and such other particulars in such manner as may be prescribed.


If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within 5 days of crediting the amount so deducted to the government, the deductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of such 5 day period until the failure is rectified, subject to a maximum amount of five thousand rupees.


The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under sub section(3) of section 39, in such manner as may be prescribed.

If any deductor fails to pay to the Government the amount deducted as tax under sub section(1),he shall pay interest in accordance with the provisions of section 50, in addition to the amount of tax deducted.


The determination of the amount in default under this section shall be made in the manner specified in section 73 or section 74.

The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54;

provided that no refund to the deductor shall be granted if the amount deducted has been credited to the electronic cash ledger of the deductee.

Draft Rule for Payment process for TDS

The following procedure is proposed for the process of TDS in GST Regime:

i. The office sanctions the amount to be paid to the supplier of the Goods or Services.

ii. For the payment to be made to the supplier, where TDS has to be deducted as per provisions of law, the Drawing and disbursing officer (DDO) of the Department will have to deduct GST at the rate of 2%.


Preparation of Bill and generation of CPIN

The DDO prepares the bill such that 98% of the bill amount is payable to the supplier (vendor). For the balance 2% TDS, the DDO shall go to the GSTN website and generate a challan with Common portal identification number (CPIN) clearly mentioning CGST, SGST or IGST as the case may be.

DDO sends the Bill to Treasury in the case of State Government and Pay and Accounts office in the case of Central Government along with CPIN, copy of challan and amount details to be paid as TDS. He shall mention the beneficiary of TDS payment as Reserve Bank of India (RBI).


Making of payment to supplier and TDS to Government by Treasury or PAO

Payment to supplier: The Treasury or Pay and Accounts Office (PAO) shall make payment to supplier using the mode being used by them presently for making such payment.

Payment of TDS: For payment of TDS, the Treasury or the PAO shall make payment to RBI using the National Electronic Funds Transfer (NEFT) mode against the CPIN sent by DDO for the amount mentioned in the challan. The payment can be made through any of the following modes


Advise to bank either electronic or otherwise to make such payment. Electronic mode shall be used when Treasury or PAO are on Plan scheme monitoring system (PFMS), Integrated financial management system(IFMS) or any other web service.

Payment through cheque using over the counter (OTC) mode of payment where online facility is not available or where DDOs are presently making payment through cheque.


On successful payment, RBI will generate the Challan identification number (CIN) and send the CIN information to GSTN who will update the Electronic Cash Ledger of the Tax Deductor (DDO) in the GSTN. The CIN shall be communicated to DDO.

Filing of return by DDO and updating cash ledger of contractor (deductee)

The DDO shall file returns for the tax deducted in Form GSTR 7 on the GSTN portal by 10th of the next month.


On filing returns by the Tax deductor (DDO), the required TDS certificate that is to be provided by the Deductor to the supplier will be automatically generated in the GSTN portal in Form GSTR 7A.

Based on the returns filed by the Deductor (DDO) in GSTR 7, the Form GSTR 2A of the supplier shall get auto-populated. When the supplier files his GSTR 2, the electronic Cash ledger of the supplier gets credited.

Section 50 - Interest on delayed payment of tax

(1) Every person who is liable to pay tax in accordance with the provisions of this Act or the Rules made thereunder, fails to pay the tax or part thereof to the government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay on his own, interest at 18%, as notified by the government on the recommendations of the council

Section 50 - Interest on delayed payment of tax (cont..)

(2) The interest under sub section (1) shall be calculated in such manner as may be prescribed from the day succeeding the day on which tax was due to be paid.

(10) A registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods has not been furnished by him.

Section 39 - Returns

(3) Every registered person required to deduct tax at source under the provision sub section 51 shall furnish in such form and manner as may be prescribed a return, electronically for the month in which such deductions have been made within 10 days after the end of such month.

(7) Every registered person who is required to funish the return under sub section(1) , (2), (3) or (5) shall pay to the government the tax due as per such return not later than the last date for furnishing such return.

Return Rule 7

Every registered person required to deduct tax at source shall furnish a return in form GSTR-7 electronically

The details furnished by the deductor under sub rule(1) shall be made available to each of the suppliers in part C of form GSTR-2A on the common portal after the date of filing of form GSTR-7

The certificate referred to in sub section (3) of section 51 shall be made available electronically to the deductee on the common portal in form GSTR-7A on the basis of the Return filed under sub rule (1)

Return Process (Eg: Return for July 2017)

Taxpayer /

DDOs www.gst.gov.in

Supplier/DDO

Invoice Details upload from

1st of July to 31tst of July

Supplier/DDO

File GSTR-

I/GSTR7 by 10th

of August

Auto-Population of

invoice details in

GSTR-2 of recipient

Recipient

Amend or modify and file

GSTR-2 by 15th of August

Supplier and Recipient

To reconcile details by

17th of August

Supplier

File GSTR-3 by 20th of

August & pay tax

Section 49 - Payment of Tax

Every deposit towards tax, interest, penalty, fee or any other amount by a taxable person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions and restrictions as may be prescribed, shall be credited to the electronic cash ledger of such person to be maintained in such manner as may be prescribed.

Payment Process

Taxpayer /

DDO GSTN

Generate

Challan which

will remain

valid for 15 days

Payment through

internet banking, NEFT / RTGS,

Debit/ credit card and over the

counter

After payment to

take print out of

receipted challan

for record

Payment will be

credited to tax

payer’s electronic cash ledger

From Electronic cash

ledger debit can be

made to discharge

liability of tax, interest,

penalty and fees

Brief description of payment process

The challan for payment of the liabilities shall be generated from the GSTN portal. In no case the printed copies will be available outside the common portal of GSTN.

The challan once prepared will be given a unique challan portal identification number(CPIN) . This challan with CPIN indicates the intention to pay on behalf of the tax payer.

Brief description of payment process (cont..)

The challan with CPIN will remain valid for 15 days. After the date of expiry as mentioned on the challan, if tax payer wishes to make payment, fresh CPIN has to be generated again.

Once the payment is made by the tax payer, a challan identification number (CIN) will be generated by the bank.

The challan will contain three major heads for CGST, IGST, SGST and four minor heads for (a) tax (b) penalty (c) interest and (d) others

Section 122 - Offences and Penalties

(1) Where a taxable person who –

(v) Fails to deduct the tax in terms of sub section(1) of section 51, or deducts an amount which is less than the amount required to be deducted under the said sub section, or where he fails to pay to the government under sub section (2) thereof, the amount deducted as tax ;

He shall be liable to pay a penalty of ten thousand Rupees or an amount equivalent to the tax evaded or the tax not deducted or short deducted or deducted but not paid to the government , whichever is higher.

Section 79 (c)-Demands & Recovery

The proper officer may, by a notice in writing, require any other person from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the Government either forthwith upon the money becoming due or being held, or within the time specified in the notice not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount


Every person to whom the notice is issued under sub-clause (i) shall be bound to comply with such notice, and in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary;


In case the person to whom a notice under sub-clause (i) has been issued, fails to make the payment in pursuance thereof to the Government, he shall be deemed to be a defaulter in respect of the amount specified in the notice and all the consequences of this Act or the rules made thereunder shall follow;

The officer issuing a notice under sub-clause (i) may, at any time, amend or revoke such notice or extend the time for making any payment in pursuance of the notice;


Any person making any payment in compliance with a notice issued under sub-clause (i) shall be deemed to have made the payment under the authority of the person in default and such payment being credited to the Government shall be deemed to constitute a good and sufficient discharge of the liability of such person to the person in default to the extent of the amount specified in the receipt;


Any person discharging any liability to the person in default after service on him of the notice issued under sub-clause (i) shall be personally liable to the Government to the extent of the liability discharged or to the extent of the liability of the person in default for tax, interest and penalty, whichever is less;


Where a person on whom a notice is served under sub-clause (i) proves to the satisfaction of the officer issuing the notice that the money demanded or any part thereof was not due to the person in default or that he did not hold any money for or on account of the person in default, at the time the notice was served on him, nor is the money demanded or any part thereof, likely to become due to the said person or be held for or on account of such person, nothing contained in this section shall be deemed to require the person on whom the notice has been served to pay to the Government any such money or part thereof;

Transitional provisions sub- section 9 of section 142

Save as otherwise provided in this Chapter, the goods or services or both supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under of this Act.

Transitional provisions..... Sub- section 12 of section 142 of the MGST

Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under MVAT, 2003 and has also issued an invoice for the same before the appointed day, no deduction of tax at source under section 51 shall be made by the deductor under the said section where payment to the said supplier is made on or after the appointed day .

GST Rates (on selected goods only)

Exempted

Live animals (except horses) like cattle, fresh fish, etc.

Natural Honey, puffed rice, bread, eggs

Fresh milk including pasteurized, lassi, butter,

Live trees and other plants like cut flowers, fresh vegetables including potatoes, tomatoes, onions, cabbages, cauliflowers, etc.

Fresh fruits, fresh or dried coconut, other nuts, banana

Fresh betel nuts and betel leaves

Unprocessed green leaves of tea

Fresh ginger, fresh turmeric

Cereals like wheat, maize, rice, flour (other than those put up in unit containers and bearing a registered trade mark).


At 5 %

Dried fish, Smoked fish, fish salted or in brine

Ultra High temperature Milk, Milk and cream, skimmed milk powder, milk food for babies

Yogurt, kephir and other fermented or acidified milk

Whey, Chena or paneer put up in unit container and bearing a registered brand name

Cereal put up in Unit container and bearing a registered brand name

Vegetable fats and oils. Shoes below Rs500/- retail price

Tea, whether or not flavoured, other than unprocessed green leaves of tea, coffee whether or not roasted or decaffeinated

Ginger other than fresh ginger, saffron, turmeric (curcuma)

Beet sugar, cane sugar, khandsari sugar

Coal, LPG for supply to household domestic consumers


At 12 %

Animals fats and oils, butter, ghee and cheese, dry friuts

Sausages and similar products, of meat, meat offal or blood; food preparations based on these products

fruit juices, vegetables juices, Soya milk drinks, Fruit pulp or fruit juice based drinks, beverages containing milk, sweetmeats

Namkeens, bhujia, mixture, chabena and similar edible preparations in ready consumption form

Marble and travertine blocks, Granite blocks

Fertilisers, other than those which are clearly not to be used as fertilizers, bio-gas,

Candles, photographic plates and films for X-ray, surgical gloves


At 18 %

Refined sugar containing added flavouring or colouring matter

Pastries and cakes, Ice cream and other edible ice, Betel nut product known as “Supari”

Bitumen, iron and steels products including rods, bars, angles, flats, sheets, etc.

Printing ink, writing or drawing ink and other inks, whether or not concentrated or solid, Synthetic organic colouring matter

Hair oils, Dentrifices Toothpaste, Soap

Insecticides, rodenticides, fungicides, herbicides, anti sprouting products and plant growth regulators

Articles of apparel and clothing accessories above Rs1000/- retail price

Mineral water, aerated water. Shoes above Rs500/- retail price


At 28 %

Molasses, Chocolates, aerated waters containing added sugar or other sweetening and flavouring matter.

Marble and granite other than blocks, portland cement

Paints and varnishes, putty

Beauty or make up preparations, preparations for oral or dental hygiene , deodorizers, perfumes

Floor coverings of plastics, bathroom fittings and sanitary wares

Tyres of rubber used in motor cars etc.

Particle board, plywood etc.

GST Rates (on selected Services only)

Exempted

o Services by Govt except;

The Deptt of Posts, Life Insurance and agencies services provided to a person other than the Govt

Services in relation to an aircraft or a vessel

Transport of goods or passengers

Any service other than services mentioned above provided to business entities

o Also exempted;

Services by RBI, Consulates and Embassies, Services provided to UN or specified International Organisations

Services by way of renting residential dwelling

Transport of passengers by air embarking or terminating in an air port located in the North East


Exempted

Renting of rooms in hotels where the charges are less than Rs1,000/- per day

Renting of premises, community halls, etc.-less than Rs 10,000/- per day

Renting of Shops or other spaces for business or commerce -less than Rs 10,000/- pm


at 5%

Transport of goods, passengers by rail (except sleeper class)

Transport of passengers by air in economy class

Renting of motor cab, supply of tour operators services

Advertisement space in print media

at 12%

Transport of passengers by air in other than economy class

Supply of food and drinks in restaurants with out AC / CH and not serving liqour

Room tariff Rs 1000-2500/-

Construction of complex, building, civil structure or part thereof intended for sale to a buyer, wholly or partly

Composite supply of works contract


at 18%

Supply of food and drinks in restaurants with AC/CH with or without serving liquor, out door catering, room tariff Rs 2500-7500/-

admission to circus, Indian Classical dance, folk dance, theatrical performance, drama

All services not specified elsewhere

at 28%

Admission to entertainment events, amusement facilities, sporting event such as IPL

Renting of room in 5 star or above rated hotel, Inns, guest houses, clubs, camp sites, etc. where the tariff is Rs 7500 & above

Selected GST Rate on Services (with conditions)

Transfer of the right to use any goods for any purpose (whether or not for a specified period for cash, deferred payment or other valuable consideration)

Any transfer of right in goods or of undivided share in goods without the transfer of title thereof

Rate of tax on the above shall be the rate applicable on the transfer of the title on such goods.

Goods and Services on Reverse Charge (selected Goods only)

Supplier Item Recipient

Agriculturist Cashew nuts(not peeled /shelled)

Any registered person

Agriculturist Bidi wrapper leaves Any registered person

Agriculturist Tobacco leaves Any registered person

Manufacturer of Silk yarn from raw silk or silk worm cocoons

Silk yarn Any registered person

Government Lottery tickets Distributor/Selling agent

Goods and Services on Reverse Charge (selected Services only)

Supplier Recipient

Goods Transport Agency Factory, Society, Co-operative Society, Person Registered under GST, Company, Partnership Firm, Casual Taxable person

Individual Advocate / Firm of Advocates / Arbitral Tribunal

Any business entity

Insurance Agent Any person carrying on Insurance business

Recovery Agent Banking /Financial Company

Author/Music Composer/Artist/Photographer

Publisher/Music Co/Producer

THANK YOU

Visit Meghalaya Taxation Department website http://meggst.gov.in/

For Notifications

Meghalaya GST Act 2017.pdf

Schedule of Rates G.S.T.

GST User Manual

GST WEB PORTAL

THANK YOU

The following material is available on www.cbec.gov.in

• GST Awareness • GST – Concept & Status • FAQs on GST in Hindi and English • CGST, UTGST, IGST & Compensation

Acts • Draft 14 Rules • Constitutional Amendment Act

goods and service tax gstmati.gov.in/docs/gst_presentation.pdf · ³$ model and roadmap goods and...

Documents