1. Present Indirect Tax Structure of India
Present Tax Structure
[5 Important Constituents]
Excise Duty
Entry No. 84, List I, Schedule VII
Taxable Event is Manufacture
Service Tax
Residuary Entry No. 97, List I, Schedule VII
Taxable Event is Provision of Service
Sales Tax / VAT/ CST
Entry No. 54 of List II (VAT) and 92A of List I (CST)
Taxable Event is Sale
Customs Duty
Entry No. 83, List I, Schedule VII
Taxable Event is Import & Export
Entry Tax/ Entertainment Tax
Entry No. 52 &62 List II, Schedule VII
Taxable Event is Entertainment & Entry of Goods
-By KADA

2. GST – Goods And Service Tax
Act Under GST:
CGST Act, SGCT Act, IGST Act, UTIGST Act, Compensation act
It is a destination based tax on consumption of goods and services.
It is proposed to be levied at all stages right from the manufacture up to final consumption with credit of taxes paid at previous stages available as setoff.
In a nutshell, only value addition will be taxed and burden of tax is to be burned by the final consumer.
-By KADA

3. Dual Control Mechanism
Intra State Taxable Supply
Excise and Service Tax will be known as Central GST or CGST- Central Govt.
Local VAT & Other taxes will be known as State GST or SGST- State Govt.
Inter State Taxable Supply
CST will be known as Integrated GST (IGST) –
Central Govt.
Approx. Sum Total of CGST and SGST
Import From Outside India
Custom Duty
Will remain-
In Place of CVD and SAD, IGST will be charged – Central Govt.
-By KADA

4. Concept of Supply Section 7: (1) Supply includes
a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.
b) import of services, for a consideration whether or not in the course or furtherance of business,
c) the activities specified in Schedule I, made or agreed to be made without a consideration
d) The activities to be treated as supply of goods or supply of services as referred to in Schedule- II. `
-By KADA

5. Concept of Supply
Schedule- I : Activities to be treated as Supply even if made without consideration
1. Permanent transfer or disposal of business assets where input tax credit has been availed
on such assets.
2. Supply of goods or services or both between related persons or between distinct persons as
specified in section 25, when made in the course or furtherance of business:
Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.
3. Supply of goods—
a) by a principal to his agent where the agent undertakes to supply such goods on behalf of
the principal; or
b) by an agent to his principal where the agent undertakes to receive such goods on behalf
of the principal.
4. Import of services by a taxable person from a related person or from any of his other
establishments outside India, in the course or furtherance of business.
-By KADA

6. Cross Utilisation of Input Tax Credit
Manner of Cross Utilisation of Input Tax Credit :
Credit in respect of
IGST
CGST
SGST
Available
for Payment of -
-By KADA

7. Illustration: Intra- State Supply
‘A’ sold to ‘B’ of Mumbai
‘B’ sold to consumer in Mumbai
Particulars
Rs.
Sale price
1,000
2,000 9% 90
180 9%
Total price
1,180
2,360
Collected by Central Government
Collected by Central Government = (Rs Rs. 90)
Collected by State Government
Collected by State Government = (Rs Rs. 90)
-By KADA

8. Illustration: Inter- State Supply
Mumbai
Sale price= Rs. 1000
Sale price= Rs. 2000
Consumer in Delhi
Central Government
State Government - Maharashtra
Transfer of credit of SGST used for payment of IGST to CG
CGST 9% = Rs. 90
SGST 9% = Rs. 90
IGST 18%= Rs GST Credit of Rs. 180= Rs. 180
State Government - Delhi
Delhi Govt. will receive SGST portion of IGST, being the Consumption State
-By KADA

9. SGST
CGST
UTGST
-By KADA

10. B (Surat) Recipient C Delhi
Termination Of Movement Of Goods Section 10(1)(a) A
Mumbai
Supplier
IGST
B (Surat)
Recipient C
Delhi
IGST
-By KADA

11. B (Surat) Recipient C (Surat)
Termination Of Movement Of Goods Section 10(1)(b) A
Mumbai
Supplier
IGST
B (Surat)
Recipient
Delivers on
B’s Instruction C
(Surat)
CGST+SGST
-By KADA

12. B (Surat) Recipient C (Mumbai) IGST IGST
Termination Of Movement Of Goods A
Mumbai
Supplier A
Mumbai
Supplier
IGST
B (Surat)
Recipient
Delivers on
B’s Instruction C
(Mumbai)
IGST
-By KADA

13. Regular Dealer: Monthly filing
Form GSTR-1: Upload all sale invoices (By 10th)
Form GSTR-2A: Auto-populated details of inward supplies made available to the recipient on the basis of Form GSTR-1 furnished by the supplier (on 11th)
Form GSTR-2: Addition (Claims) or modification in Form GSTR-2A should be submitted in Form GSTR-2 (on 15th)
Form GSTR-1A: Details of outward supplies as added, corrected or deleted by the recipient  in Form GSTR-2 will be made available to supplier ( On 16th)
Form GSTR-3: Submit the auto-populated GSTR-3 by 20th
Form GSTR-9: Annual Return – furnish the details of ITC availed and GST paid which includes local, interstate and import/exports. (31st Dec of next fiscal )
-By KADA

14. Step 1
Details of outward supply
On 10th
GSTR 1
Step 2A
Auto Populated in Part A of the GSTR 2A of recipients
On 11Th
GSTR 2 on the basis of GSTR 2A, Details of inwards supply added, corrected or deleted by recipients will be disclosed under GSTR2
On 15Th
GSTR 1A the details of inward supplies added, corrected, deleted, modified by recipient shall be made available to supplier
16th
GSTR 3
20Th
GSTR 1 will be amended to the extent, modification are accepted by the suppliers
17th
Supplier will accepts or reject the modification
17th
Make a Payment
20th
-By KADA

15. Tax Invoices Contents of tax Invoice: Rule 7
Name address and GSTIN of the suppliers
A consecutive serial number, in one or multiple series containing alphabets or numerals or special characters hyphen or hash and slash symbolized as “-” and “/” respectively and combination, and combination thereof, unique for financial year;
Date of issue
Name address and GSTIN or UIN if register of the recipient
Name address of the receipts and address of delivery, along with the name of state and its code, if such receipts is unregister and where the value of taxable supply > Rs. 50,000.
-By KADA

16. (f) HSN code of goods or Accounting Code of services;
(g) Description of goods or services;
(h) Quantity in case of goods and unit or Unique Quantity Code thereof;
(i) Total value of supply of goods or services or both;
(j) Taxable value of supply of goods or services or both taking into account discount or abatement, if any;
(k) Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
(l) Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);
(m) Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce;
-By KADA

17. (o) Whether the tax is payable on reverse charge basis; and
(n) Address of delivery where the same is different from the place of supply;
(o) Whether the tax is payable on reverse charge basis; and
(p) Signature or digital signature of the supplier or his authorized representative:
Provided that the Commissioner may, on the recommendations of the Council, by notification, specify –
(i) the number of digits of HSN code for goods or the Accounting Code for services, that a class of registered persons shall be required to mention, for such period as may be specified in the said notification, and
(ii) the class of registered persons that would not be required to mention the HSN code for goods or the Accounting Code for services, for such period as may be specified in the said notification:
-By KADA

18. -By KADA

19. Classification - HSN/SAC Code
Harmonized System of Nomenclature (HSN) / Services Accounting Code (SAC) may be prescribed for classifying nature of supply.
HSN/SAC will be mandatory in Invoice and returns, except during 1st year of GST implementation. HSN will be restricted to maximum of 8 digits
For 1st Year of GST Implementation, HSN/SAC will be applicable as follows:
Turnover
Requirement
Below 1.5 Cr
HSN/SAC not mandatory
1.5 Cr to 5 Cr
Minimum HSN of 2 Digits
Above 5 Cr
HSN of 4 Digits
Exports
HSN of 8 Digits
May be balanced
-By KADA

20. Supplementary Invoice - Debit note/Credit note
Contents of Debit note/Supplementary Invoice/Credit note :
For Supplementary Invoice/Debit note on Inward Supplies or Supplementary Invoice/Credit note on Outward Supplies
(1) A revised tax invoice referred to in section 31 and credit or debit note referred to in section 34 shall contain the following particulars –
(a) the word “Revised Invoice”, wherever applicable, indicated prominently;
(b) Name, Address and GSTIN of the supplier;
(c) Nature of the document;
(d) A consecutive serial number containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as “-” and “/”respectively,, and any combination thereof, unique for a financial year;
(e) Date of issue of the document;
(f) Name, Address and GSTIN or UIN, if registered, of the recipient;
-By KADA 20

21. Composite Supply Section 2(30)
“Composite supply” means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, 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;
Section 2(90)
“Principal supply” means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.
Examples :
Airline providing free supply of food- Transportation and Supply of Food – Composite Supply.
Goods are packed and transported with insurance, the supply of goods, packing material, transport and insurance is a composite supply.
Laptop and Carry bag sold together.
-By KADA

22. Mixed Supply Section 2(74)
“Mixed supply” means two or more individual supplies of 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.
-By KADA

23. Continuous Supply Section 2(32)
“Continuous supply of goods” means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis, and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify.
Example: Open purchase orders with an understanding of fortnightly billing, Supply of gases through pipelines with a weekly billing schedule 
Section 2(33)
“Continuous supply of services” means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such service as the Central or a State Government may, whether or not subject to any condition, by notification, specify
Example:  Annual maintenance contracts, Licensing of software or brand names, Renting of electronic goods
-By KADA

24. IGST- Supply in course of interstate & Intra state trade or commerce
Section 8 - Supplies in course of intra state trade or commerce-
intra-State supply of goods and/or services means any supply of goods and/ or services where the location of the supplier and the place of supply are in the same State or same Union territory
Exclusions :-
supply of goods and/or services to or by a SEZ developer or to or by an SEZ unit;
supply of goods brought into India in the course of import till they cross the customs frontiers of India.
supplies made to a tourist referred to in section 15
Sec.15-  The term "tourist" means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes.
-By KADA

25. Important Definitions
Casual Taxable Person : Section 2(20)
“Casual taxable person” means a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
Section 2(50) defines “fixed establishment” means a place, other than the place of business, which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs
Note :
Typically Performance based transactions may be impacted such as
Holding Events, Exhibitions, Concerts
On sight Training Sessions
-By KADA

26. Important Definitions
Place of Business : Section 2(85)
“Place of business” includes
a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods and/or services; or
a place where a taxable person maintains his books of account; or
a place where a taxable person is engaged in business through an agent, by whatever name called
Section 2(89) - Principal place of business will be mentioned in the certificate of registration.
-By KADA

27. Important Definitions – IGST
Export of Goods : Section 2(5)
“Export of goods” with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India
Export of Services : Section 2(6)
“Export of services” means the supply of any service when
the supplier of service is located in India,
the recipient of service is located outside India,
the place of supply of service is outside India,
the payment for such service has been received by the supplier of service in convertible foreign exchange, and
the supplier of service and recipient of service are not merely establishments of a distinct person in accordance with explanation 1 of section 8.
-By KADA

28. Important Definitions – IGST
Section 2(10)
“Import of goods” with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India
Section 2(11)
“Import of service” means the supply of any service, where
the supplier of service is located outside India,
the recipient of service is located in India, and
the place of supply of service is in India
Notes:
Import of goods and services are deemed to be inter-State supplies (IGST)
Under current laws, imports are subject to basic customs duty, countervailing duty, customs cess and special additional duty. Under the GST regime, imports would be subject to Basic Customs Duty and IGST
-By KADA

29. Important Definitions – IGST
Location of the recipient of services : Section 2(14)
“Location of the recipient of services” means:
where a supply is received at a place of business for which registration has been obtained, the location of such place of business;
where a supply is received at a place other than the place of business for which registration has been obtained, (a fixed establishment elsewhere), the location of such fixed establishment;
where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and
in absence of such places, the location of the usual place of residence of the recipient
Location of the supplier of services : Section 2(15)
“Location of the supplier of services” means:
where a supply is made from a place of business for which registration has been obtained, the location of such place of business;
where a supply is made from a place other than the place of business for which registration has been obtained, (a fixed establishment elsewhere), the location of such fixed establishment;
where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; &
in absence of such places, the location of the usual place of residence of the supplier
-By KADA

30. Important Definitions – IGST
Zero-rated Supply : Section 2(23)
“Zero-rated supply” shall have the meaning assigned to it under section 16.
Section 16 (1) “zero rated supply” means any of the following taxable supply of goods and/or services, namely –
export of goods and/or services; or
supply of goods and/or services to a SEZ developer or an SEZ unit.
Note:
Credit of input tax can be availed on such zero-rated supplies and either utilized towards discharge of other output taxes or can be claimed as refund in accordance with provisions of section 54 of CGST Act.
-By KADA

31. Composition levy (Sec. 10 of CGST Act)
A registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay tax under composition scheme.
Rates of Tax under Composition :
a) one per cent of the turnover in State or turnover in Union territory in case of a manufacturer,
b) two and a half per cent, of the turnover in State or turnover in Union territory in case of persons
engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II (club & restaurants), and
c) half per cent, of the turnover in State or turnover in Union territory in case of other suppliers.
The registered person shall be eligible to opt for Composition if –
a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II
b) he is not engaged in making any supply of goods which are not leviable to tax under this Act;
c) he is not engaged in making any inter-State outward supplies of goods;
d) he is not engaged in making any supply of goods through an electronic commerce
operator who is required to collect tax at source under section 52; and
e) he is not a manufacturer of such goods as may be notified by the Government.
Provisions of Section 10 are subject to provisions of sub-sections (3) & (4) of section 9 i.e. Tax payable under ‘Reverse Charge’.
-By KADA

32. Reverse Charge Mechanism
Recipient to discharge GST under RCM as if he is the person liable for paying the tax on supply
•Recipient to make payment on his own account and on own GSTN number
•It is not TDS paid on behalf of supplier
•Recipient is entitled to ITC subject to ITC provisions
Recipient to discharge GST under Reverse Charge
On procurement of goods or services from unregistered supplier u/s 9(4) of CGST Act and relevant provision of IGST Act, UTGST Act and SGST Act
On procurement of notified goods or services u/s 9(3) of CGST Act and relevant provision of IGST Act, UTGST Act and SGST Act
-By KADA

33. A. Migration to GST
The process of registration will commence by migrating the existing registered person in to GST. Rule 16 of the Registration Rules makes following provisions for migrating:
Every person registered under existing law having PAN No. shall be enrolled by validating his address and Mobile number.
After enrolment, the person will be granted provisional registration and certificate of registration in form GST REG-25. There will be single registration for one state. Separate verticals of same business can have separate registration.
The person having centralise registration shall be granted only one provisional registration in the state or union territory in which he is registered. Thus, it appears such person will have to apply separately for in all other states by filing form REG -1 for obtaining registration.
-By KADA

34. Section 22 : Person liable for registration.
22. (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees/ten lakhs ( for special category states:
Points for discussion:
Identify the State from where the supplies is to be made.
Person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located.
Identify the principal place of business and additional place of business in such state.
Manner of calculating aggregate turnover of 20 lakhs/10 lakhs.The following shall be noted in computing turnover.
Turnover of financial year and not preceding financial year.
Turnover of all the supplies ( Exempt/taxable/non-taxable) shall be aggregated
Turnover of person with same PAN no. and all locations shall be included i.e. calculated on all India basis.
Value will not include the taxes namely CGST, SGST, IGST & UT-GST.
Tax paid on reverse charge will not be included
Supply on own account and on behalf of principle will be included.
Clearance of goods from job-worker shall be considered as clearance by principle and will not be included in t/o of job worker.
Dealers located in J&K not required to obtain registration.
-By KADA

35. Suo Moto Registration:
Section 25(8) : Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, proceed to register such person in such manner as may be prescribed.
Eg: Non – payment of GST in case of supply from unregistered to registered person.
Rule 8. Suo moto registration
(1) Where, pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, the proper officer finds that a person liable to registration under the Act has failed to apply for such registration, such officer may register the said person on a temporary basis and issue an order in FORM GST REG-11.
(2) The registration granted under sub-rule (1) shall be effective from the date of order granting registration.
(3) Every person to whom a temporary registration has been granted under sub-rule (1) shall, within ninety days from the date of the grant of such registration, submit an application for registration in the form and manner provided in rule 1 or rule 5 unless the said person has filed an appeal against the grant of temporary registration, in which case the application for registration shall be submitted within thirty days from the date of issuance of order upholding the liability to registration by the Appellate Authority.
(4) The GSTIN assigned pursuant to verification under sub-rule (4) shall be effective from the date of order granting registration under sub-rule (1).
-By KADA

36. Cancellation of Registration
J1) Section 29.(1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,––
the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
there is any change in the constitution of the business; or
the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24.
(2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,–
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts:
Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.
-By KADA

37. Dealers to get blacklisted under GST
Trigger points for blacklisting:
 Depending on various factors following are the key points for blacklisting of a dealer under GST law:
 1. Continuous default for 3 months in paying ITC that has been reversed.
2.  Continuous default of 3 months or any 3 month-period over duration of months in uploading sales details leading to reversal of ITC for others.
3.  Continuous short reporting of sales beyond a prescribed limit of 5% (of total sales) for a period of 6 months.
Only for regulating ITC by others.
Will be based on dealer rating. A dealer will be blacklisted if dealer rating falls below the prescribed limit.
To be put in public domain
To be notified (auto-SMS) to all dealers who have pre-registered this dealer (black-listed now) as their supplier.
To be prospective only (from north next to blacklisting)
Blacklisted GSTINs cannot be uploaded in purchase details. Corresponding denial of ITC to be supported by suitable provision in the law.
ITC reversal in hands of the buyer should take place for disowning of any tax invoice with date prior to effect of blacklisting of the seller.
Once blacklisting is lifted, buyers can avail unclaimed ITC subject to this dealer uploading sales details along with tax and interest.
-By KADA