GST “STEP INTO GST ERA” A DETAILED PRESENTATION ON :-

GST “STEP INTO GST ERA” A DETAILED PRESENTATION ON :-
PRESENTED BY MIHIR TURAKHIA B.COM, LLB, FCMA

PRESENTATION PLAN Valuations An Overview Levy and Exemption
1 Levy and Exemption 2 Transitional Provision 3 Time and Place of Supply 4 Valuations 5 Input Tax Credit 6 Basic Procedures 7 Administration 8 Miscellaneous Provisions 9

REFERENCES ACTS RULES NOTIFICATIONS CGST Act
CGST Rules, 2017 as amended upto 23/01/2018 Central Tax Central Tax (Rate) IGST Act IGST Rules as amended upto 15/11/2017 Integrated Tax Integrated Tax (Rate) UTGST Act Union Territory Tax Union Territory Tax (Rate) GST (Compensation to the States) Act Compensation Cess Compensation Cess (Rate) ORDERS CIRCULARS

An Overview ONE NATION ONE TAX Reverse Charge Mechanism
DESTINATION BASED SAME TREATMENT FOR GOODS & SERVICES NO CASCADING EFFECT COMPOSITION LEVY MECHANISM SINGLE FLOW IN INPUT TAX CREDIT ALLOWANCE

GST An Overview Existing Indirect Tax Structure State Tax Central Tax
Excise Service Tax Customs State Tax Local Tax Entry Tax, luxury tax, Lottery Tax, etc. VAT GST

An Overview GST Proposed Tax Levy Tax Levy on Supplies (except Custom)
Intra- state CGST (Central) SGST (State) Inter State IGST (Central) Proposed Tax Levy

An Overview Central Govt. CGST IGST State Govt. SGST Administration
How would GST be administered in India: The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services. Administration Central Govt. CGST IGST State Govt. SGST

To ensure single interface – all administrative control over 90% of taxpayers having turnover below Rs. 1.5 cr would vest with State tax administration 10% of taxpayers having turnover below of Rs. 1.5 cr. would vest with Central tax administration Taxpayers having turnover above Rs. 1.5 cr. would be divided equally between Central and State tax administration

An Overview Example Within the same state Selling Selling Description
B C End Customer Cost of goods/Services 10,000 Paid the tax of 1080/- under SGST and Rs.1080/- under CGST Value added 2,000 Total taxable value 12,000 900 1080 Total Value inc of tax 11,800 14,160 Input tax credit : Under CGST - Under SGST Net Tax payable 9,00 180 Total 1,800 360 Selling Selling

An Overview Example Inter State Sales Selling Selling Description A B
Intra State Description A B C End Customer Cost of goods/Services 10,000 Paid the tax of Rs =2160 under GST Value added 2,000 Total taxable value 12,000 900 2160 Total Value inc of tax 11,800 14,160 Input tax credit : Under CGST - Under SGST Net Tax payable Total 1800 360 Selling Selling Novel Exiccon Pvt. Ltd.

Levy And Exemption LEVY OF, AND EXEMPTION FROM, TAX SECTION 8
Levy and Collection of Central/State Goods and Services Tax: SGST/CGST will be levied and payable on all intra- state supplies. Categories for goods/services under RCM Basis may be specified. Exemption from Section 9(4) – Reverse Charge on purchase from unregistered persons Taxable Person Under Composition Scheme (Section 9) The threshold annual turnover for composition scheme is Rs. 1 crore Permissible only if all the registered taxable person under one PAN opt for it No interstate supplies shall be made No ITC available If a ineligible person opts for the composition scheme, a equal tax penalty may be imposed by issuing a SCN, along with the tax which may be payable.

Levy And Exemption SECTION 10 Taxable person
Taxable Person is a person who is required to be registered under Schedule V: An agriculturist shall not be considered as a taxable person.

Registration Provisions
Application for Registration Declare his Permanent Account Number, mobile number, address, State or Union territory in Part A of FORM GST REG-01 on the common portal Verification of the Application and Approval Issue of Registration Certificate Certificate of registration in FORM GST REG-06 showing the principal place of business and additional place or places of business and a Goods and Services Tax Identification Number

Transitional Provisions
167-CENVAT credit C/F as ITC (CGST/SGST) If said credit eligible under earlier law and also eligible under this Act Allowed In Electronic Credit Ledger as C/F Will be recovered as arrear after proceeding initiated under existing/new law. 168-Balance Un availed CENVAT credit on capital goods Not C/F in return. If said credit eligible under earlier law and also eligible under this Act Allowed In Electronic Credit Ledger as C/F Will be recovered as arrear if any proceeding initiated under existing/new law.

Inputs Used/Usable for Taxable Supplies. Benefit of such credit is passed on to the recipient Input Invoices in prescribed formats are available for the stocks. Such invoices are not issued earlier then 12 months The supplier of services is not eligible for any abatement under the act Will be recovered as arrears under this act if the same is recoverable 169.Credit of Inputs held in stock (RM, WIP, FG) to be allowed in certain situations: (Exempted Person in earlier law can avail Credit of VAT and Entry Tax on inputs on stocks)

Credit allowed in ECL for goods in transit. If recorded in the accounts of recipient within 30 days of appointed day Statement to be furnished 171. Credit of Eligible duties and taxes in respect of inputs and input services during transit.

Sold goods returned Sec 173: Exempted Goods Returned to the place of business after the appointed day. Sec. 174 Duty paid Goods returned to the place of business on or after the appointed day. 175.Inputs removed for job work and received after appointed day Within 6 months Beyond 6 months No tax shall be payable on receipt of goods after completion of the job work The input Tax Credit shall be liable to be recovered

Eligibility of credit of Service Taxes with ISD
Transitional Provisions Eligibility of credit of Service Taxes with ISD IT is allowed to transfer the credit irrespective of the date of the receipt of the services prior to the appointed day.

T/F of unutilized credits in centralized registered
Transitional Provisions T/F of unutilized credits in centralized registered The credit remaining unutilized under any centralized registration will be allowed to be carried forward provided the same should be admissible.

Tax paid on goods/capital goods lying at the agents place to be allowed as credit provided Allowed only if the agent is a registered person under GST Both the principal and agent declare the credit and the stocks lying at the premises The invoices for such goods are had been issued not earlier than twelve months. Novel Exiccon Pvt. Ltd.

Time And Place Of Supply
Section 12 The liability to pay CGST / SGST on the goods shall arise at the time of supply. The time of supply of goods shall be the earlier of the following-

For the goods supplied under RCM the time of supply shall be the earliest of the following dates, namely— In case of supply of voucher issued by a supplier the time shall be – The date of issue of voucher if supply is identifiable at that point. The date of redemption of voucher in all other cases. If it is not possible to determine time of supply under above said provisions then time of supply shall be the date on which periodical returns has to be filed or the date on which CGST/SGST is paid.

The liability to pay CGST/SGST on services shall arise at the time of supply. The time of supply of services shall be earlier of :-

SECTION 14 Change in rate of tax in respect of supply of services In case the taxable service has been provided before the change in effective rate of tax

In case the taxable service has been provided before the change in effective rate of tax

Valuations SECTION 15 VALUE OF TAXABLE SUPPLY
The value of a supply of goods and/or services shall be the transaction value (Price actually paid or payable), where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.

The transaction value shall include:
Valuations The transaction value shall include: Amount incurred on behalf of supplier/incidental/ reimbursable expenses. Discounts (only if included in agreed terms) Subsidy receivable(excluding subsidy provided by govt), license fees ,taxes , duty, fee levied under any other statute. Interest /late fee/penalty for delayed payment of any consideration for any supply

Input Tax Credit Capital Goods
Section16 The dealer should be in possession of tax invoice Returns have been filed No ITC will be allowed if depreciation has been claimed on tax component of a capital good When goods are received in installments ITC can be claimed only when the last lot is received The tax charged has been paid to the government by the supplier The said goods/services have been received Conditions & Restrictions for claiming Input Tax Credit on Capital Goods

Input Tax Credit Section 17
Where the goods and/or services are used by the registered taxable person partly for the purpose of any business and partly for other purposes, then: GOODS/SERVICES USED. USED FOR THE PURPOSE OF BUSINESS. ALLOWED USED FOR PURPOSE OTHER THAN BUSINESS. DIS-ALLOWED

FOR TAXABLE & ZERO RATED SUPPLIES FOR NON-TAXABLE & EXEMPTED SUPPLIES.
Input Tax Credit Where the goods and / or services are used by the registered taxable person partly for effecting taxable supplies including zero-rated supplies and partly for effecting non-taxable supplies, including exempt supplies then: GOODS/SERVICES USED. FOR TAXABLE & ZERO RATED SUPPLIES ALLOWED FOR NON-TAXABLE & EXEMPTED SUPPLIES. DIS-ALLOWED

Input Tax Credit Input tax shall be disallowed in the following cases:
Motor Vehicle except when they are used for following taxable supplies— Further supply of such vehicles or conveyances Transportation of passengers, or Imparting training on driving, flying, navigating such vehicle or conveyances; For transportation of goods. Goods and / or services when they are used primarily for personal use or consumption of any employee(except where the commissioner notifies the services)

Input Tax Credit c) Works contract services when supplied for construction of immovable property, other than plant and machinery except where it is an input service for further supply of work contract services. d) Goods or Serviced received by a taxable person for construction of an immovable property other than plant and machinery, for self, even when constructed for renting or leasing. (plant and machinery include excludes land, building or any other civil structure

Input Tax Credit A taxable person shall not be entitled to take input tax credit, in respect of any supply of goods and / or services to him after the expiry of one year from the date of issue of tax invoice relating to such supply. Date of invoice of goods/ services Date of availment of ITC on the invoices of goods/services. Limit- 1 year The amount of credit shall be calculated in the manner as may be prescribed.

Input Tax Credit Where any registered taxable person who has availed of input tax credit switches over as a taxable person for paying tax under section 9 or, where the goods and / or services supplied by him become exempt absolutely under section 11, then: Provided that after payment of such amount, the balance of input tax credit, if any, lying in his electronic credit ledger shall lapse. The amount payable shall be calculated as may be prescribed.

Input Tax Credit A banking company, financial institution, NBFC supplies services of extending deposits, loans or advances have the option to comply with provision of section 17(2) or avail of every month an amount equal to 50% of eligible input tax credit on inputs, capital goods and input services in that month. In case of supply of capital goods on which ITC has been taken, the person shall pay an amount equal to the ITC taken reduced by the percentage point as may be specified or the tax on the transaction value whichever is higher. Where refractory bricks, moulds and dies , jigs and fixtures are supplied as scrap, the taxable person may pay tax on transaction value of such goods under section 15(1). In case of change in constitution of registered person , it shall be allowed to transfer the ITC remain unutilized in its new constitution’s books of accounts

Taking Input Tax Credit on inputs sent for Job work: The “principal” referred to in section 55 shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of input tax on inputs sent to a job-worker for job-work even if the inputs are directly sent to Job worker :

Input Tax Credit Where the inputs goods are not received back by the “principal” within the time of one year of their being sent out , it shall be deemed that such inputs had been supplied by the principal and he shall pay an amount equivalent to the input tax credit availed of on the said inputs, along with interest. The “principal” shall be entitled to ITC on capital goods sent to a job-worker for job-work, if after completion of job-work, they are received back by him within three years of their being sent out.

Distribution of credit by Input Service Distributor. SUB SECTION (1) SUB SECTION (2) Input service distributor & the recipient of credit are located in different states Input service distributor and the recipient of credit are located in same state After issuing the prescribed documents containing the amount of ITC. The credit can be distributed as below After issuing the prescribed documents containing the amount of ITC. The credit can be distributed as below CGST as IGST IGST as IGST SGST as IGST CGST as CGST SGST as SGST IGST as CGST/SGST

Input Tax Credit Conditions for distributing Input Tax Credit 1. The credit can be distributed to each of the recipients against a prescribed document, containing details as may be prescribed; 2. The amount of the credit distributed shall not exceed the amount of credit available for distribution;

Input Tax Credit Conditions for distributing Input Tax Credit
3. The credit of tax paid on input services attributable to a supplier shall be distributed only to that supplier 4. The credit of tax paid on input services attributable to more than one supplier shall be distributed pro rata on the basis of the their turnover against the total turnover.

Manner of recovery of credit distributed in excess.

For this purpose the relevant period shall be:
Input Tax Credit For this purpose the relevant period shall be: (a) The said F.Y, If the recipient of credit have turnover in their states in preceding F.Y. to the F.Y in which credit is to be distributed. (b) The last quarter for which details of such turnover of all the recipients are available, previous to the month during which credit is to be distributed in a case where the recipients of the credit do not have any turnover in their States in the financial year preceding the year during which the credit is to be distributed.

Basic Procedure Returns & Payment Of Tax
5 a-e

Input service distributor is It is deemed as supplier of services
Section 21 Input service distributor is An office of the supplier of goods and services Which receives tax invoices issued under section 28 towards receipt of Input services It is deemed as supplier of services

Registration of Input Service Distributor
Section 21 Registration of Input Service Distributor Registration or migration whichever is applicable is allowed Multiple ISDs allowed under one PAN

Input Service Distributor
Section 21 Credit should be distributed through tax invoice or any other document Amount of credit transferred should not exceed the credit availed Credit should be distributed to on the suppliers only to which such services are attributable. In case of more than one supplier the same should be distributed on the basis of the ratio of turnover in previous year. Conditions For Distribution of Credit

Input Service Distributor
Other Provisions Returns to be filed in GSTR-6 by 13th of every month Credit wrongly passed can be recovered from distributor as well as from the recipient of such credit. CGST and IGST can be transferred as IGST in different states. (Sec.21(1)) SGST and IGST can be transferred as IGST in different states. (Sec.21 (2)) CGST and IGST can be transferred as CGST in same state. SGST and IGST can be transferred as SGST in same state. Documents through which the credit should be distributed is yet to be prescribed.

Basic Procedures Liability to get registered under GST
Registration Process (Chapter 6th of Model GST Law) Liability to get registered under GST Supply intra-state exceeding 20 lacs / 10 lacs-Special Category States Persons registered to pay existing taxes. Transferee of business/amalgamation With respect to values of supply made Any Inter state supply Casual taxable person RCM persons NRI persons Person supplying goods on behalf of other taxable person Input service distributor Person supplying digital services from place outside India to a person in India Irrespective of values of supply made

Basic Procedures Registration Process
Section :- Other Provisions for Registration Apply for registration within 30 days of liability arises. Can obtain separate registration for multiple business vertical Voluntary registration can be obtained. Officer may proceed for registration if a person fails to get registered. Any specialized agency of the UNO/Multilateral Fin. Instit/embassy of foreign countries/any other class should have valid UIN. The registration shall be granted/rejected after due verification. PAN(other than NR) is must for every applicant.

Section :- Other Provisions for Registration The grant of registration under CGST/SGST Act deemed to be grant of registration under SGST/CGST Act. Registration /UIN Deemed to be granted if no deficiency has been communicated to the applicant. Sec-27 Revocation of cancellation can be done if required. Registration may be cancelled in case of death/business discontinued/transfer/de- merger/change in constitution/non-furnish of return for continuous 6 months/fails to furnish 3 consecutive tax return under sec 9 etc.

Structure of GST Registration Number State 1 To 2 PAN 3 to 12 Entity 13 Blank 14 Check 15 15 digit Alphanumeric structure State wise identification PAN no is must for grant of registration. Unique identification to every taxable person.

List of Forms related to Registration Process : Sr No. Form No Content 1 GSTREG-01 Application for Registration under Section 19(1) 2 GSTREG-02 Acknowledgement 3 GSTREG-03 Notice for Seeking Additional Information / Clarification /Documents relating to Application for <<Registration/Amendment/Cancellation>> 4 GSTREG-04 Application for filing clarification/additional information/document for <<Registration/Amendment/Cancellation/Revocation of Cancellation>> 5 GSTREG-05 Order of Rejection of Application for <Registration /Amendment / Cancellation/ Revocation of Cancellation>> 6 GSTREG-06 Registration Certificate issued under Section 19(8A)

List of Forms related to Registration Process : Sr No. Form No Content 7 GSTREG-07 Application for Registration as Tax Deductor or Tax Collector at Source under Section 19(1) 8 GSTREG-08 Order of Cancellation of Application for Registration as Tax Deductor or Tax Collector at Source under Section 21 9 GSTREG-09 Application for Allotment of Unique ID to UN Bodies/Embassies /any other person under Section 19(6) 10 GSTREG-10 Application for Registration for Non Resident Taxable Person. 11 GSTREG-11 Application for Amendment in Particulars subsequent to Registration 12 GSTREG-12 Order of Amendment of existing Registration

List of Forms related to Registration Process: Sr No. Form No Content 13 GSTREG-13 Order of Allotment of Temporary Registration/ Suo Moto Registration 14 GSTREG-14 Application for Cancellation of Registration 15 GSTREG-15 Show Cause Notice for Cancellation of Registration 16 GSTREG-16 Order for Cancellation of Registration 17 GSTREG-17 Application for Revocation of Cancelled Registration 18 GSTREG-18 Order for Approval of Application for Revocation of Cancelled Registration 19 GSTREG-19 Notice for Seeking Clarification / Documents relating to Application for << Revocation of Cancellation>>

List of Forms related to Registration Process : Sr No. Form No Content 20 GSTREG-20 Application for Enrolment of Existing Taxpayer 21 GSTREG-21 Provisional Registration Certificate to existing taxpayer 22 GSTREG-22 Order of cancellation of provisional certificate 23 GSTREG-23 Intimation of discrepancies in Application for Enrolment of existing taxpayer 24 GSTREG-24 Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration 25 GSTREG-25 Application for extension of registration period by Casual /Non-Resident taxable person. 26 GSTREG-26 Form for Field Visit Report

List Of Documents Required For Registration Relevant Box No. in the Registration Form Document required to be uploaded Constitution of Business Partnership Deed for partnership firm. Registration Certificate in case of other businesses.

List Of Documents Required For Registration Relevant Box No. in the Registration Form Document required to be uploaded Details of the Principal Place of business Own premises – any document in support of the ownership of the premises. Rented or Leased premises – a copy of Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor. In case of premises obtained from others, other than by way of Lease or Rent – a copy of the Consent Letter with any document in support of the ownership of the premises.

List Of Documents Required For Registration Relevant Box No. in the Registration Form Document required to be uploaded Details of Bank Account (s) Bank Passbook – containing the Account No., Name of the Account Holder, MICR and IFS Codes and Branch details

Details of Authorized Signatory
Basic Procedures Registration Process List Of Documents Required For Registration Relevant Box No. in the Registration Form Document required to be uploaded Details of Authorized Signatory For each Authorized Signatory: Letter of Authorization or copy of Resolution, Digital signature

Relevant Box No. in the Registration Form Document required to be uploaded Photograph Proprietary Concern – Proprietor Partnership Firm / LLP – Managing/ Authorized HUF- Karta Company – Managing Director or the Authorized Person . Trust – Managing Trustee Association of Person or Body of Individual –Members of Managing Committee Local /Statutory Body – CEO or his equivalent Others – Person in Charge Novel Exiccon Pvt. Ltd.

Supply/ continuous supply of Goods or Services.
Basic Procedure Tax Invoice (Chapter VII) Tax payer Other tax payer including ISD Under Composition Scheme 28. Supply/ continuous supply of Goods or Services. Bill of Supply Issue Tax Invoice Issue Debit/Credit note Details:- Name Address and GSTIN/UID of consignor & consignee, HSN Code, description and value and services. Details:- Description, Qty. & Value of Goods, Tax Rate, GSTIN/UID No., Name and Address with state code o f consignor and Consignee , HSN Code , Electronic Ref. No. Name Address and GSTIN of the recipient of credit, amt of credit.

First Return to be submitted by
Basic Procedure Returns & Payment Of Tax First Return First Return to be submitted by Every registered taxable person paying tax under the provisions of section 7 Detail in First Return From the date on which he became liable to registration till the end of the month in which the registration has been granted; Detail in First Return Detail in First Return From the effective date of registration till the end of the month in which the registration has been granted

Basic Procedure Returns & Payment Of Tax (DEFFERED & TO BE NOTIFIED BY DEPARTMENT)
29A MATCHING, REVERSAL AND RECLAIM OF OUTPUT TAX LIABILITY –

List of GST Returns/Statements to be furnished by Registered Persons
Basic Procedure Returns & Payment Of Tax Sr No Taxable Person Frequency Filing Date List of GST Returns/Statements to be furnished by Registered Persons 1 Regular/casual Taxpayer Monthly 10 th of next month GSTR-1 Details of outward supplies of taxable goods and/or services effected 2 Regular Taxpayer Monthly 20th of next month GSTR-3B Summary Monthly Return 3 GSTR-1A Details of outward supplies as added, corrected or deleted by the recipient 4 15 th of next month GSTR-2 Details of inward supplies of taxable goods and/or services claiming input tax credit 5 GSTR-2A Details of inward supplies made available to the recipient on the basis of FORM GSTR-1 furnished by the supplier 6 20 th of next month GSTR-3 Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax Novel Exiccon Pvt. Ltd.

Basic Procedure Returns & Payment Of Tax Sr No Taxable Person Frequency Filing Date List of GST Returns/Statements to be furnished by Registered Persons 7 Regular Taxpayer GSTR-3A Notice to a registered taxable person who fails to furnish return under section 27 and section 31 8 Compounding Taxpayer Quarterly 18 th of next month GSTR-4 Quarterly Return for compounding Taxable persons 9 GSTR-4A Details of inward supplies made available to the recipient registered under composition scheme on the basis of FORM GSTR-1 furnished by the supplier 10 Foreign Non-Resident Taxpayer Monthly Within 7 days of expiry of registration. GSTR-5 Return for Non-Resident foreign taxable person 11 Input Service Distributor monthly 15 th of next month GSTR-6 ISD return

Basic Procedure Returns & Payment Of Tax Sr No Taxable Person Frequency Filing Date List of GST Returns/Statements to be furnished by Registered Persons 12 Regular Taxpayer Monthly 15th of next month GSTR-6A Details of inward supplies made available to the ISD recipient on the basis of FORM GSTR-1 furnished by the supplier 15 GST-ITC-1 Communication of acceptance, discrepancy or duplication of input tax credit claim 16 Taxpayer who are not required to get their accounts audited Yearly 30th Dec after end of financial year GSTR-8 Details of supplies effected through e-commerce operator and the amount of tax collected as required under sub-section (1) of section 43C

Basic Procedure Returns & Payment Of Tax Sr No Taxable Person Frequency Filing Date List of GST Returns/Statements to be furnished by Registered Persons 17 Regular Taxpayer Yearly 30th Dec after end of financial year GSTR-9 Annual return 18 GSTR-9A Simplified Annual return by Compounding taxable persons registered under section 8 19 Exceeds 1 Crore Turnover Yearly/ audited GSTR-9B Reconciliation Statement 20 GSTR-10 Final return 21 GSTR-11 Details of inward supplies to be furnished by a person having UIN 22 GST-TRP Application for enrolment as Tax return preparer

Basic Procedure Returns & Payment Of Tax Sr No Taxable Person Frequency Filing Date List of GST Returns/Statements to be furnished by Registered Persons 23 GST-TRP-2 Enrolment certificate as Tax return preparer 24 GST-TRP-3 Show cause to as Tax return preparer 25 GST-TRP-4 Order of cancelling enrolment as Tax return preparer 26 GST-TRP-5 List of Tax return preparers 27 GST-TRP-6 Consent of taxable person to Tax return preparer 28 GST-TRP-7 Withdrawal of authorization to tax return preparer

GSTR-1 Quarterly Returns (Taxpayers with Annual Turnover up to Rs. 1.5 Crore can opt for quarterly return filing) Period (Quarterly) Due dates July- Sept 10th Jan 2018 Oct-Dec 15th Feb 2018 Jan- Mar 30th April 2018

For turnover of more than Rs 1.5 cr
Period Dates July to Nov 10th Jan 2018 Dec 10th Feb 2018 Jan 10th Mar 2018 Feb 10th Apr 2018 March 10th May 2018 GSTR-2 and GSTR-3 GSTR-2 and GSTR-3 filing dates for July 2017 to March 2018 will be worked out later by a Committee of Officers GSTR-3B GSTR-3B has been extended to March 2018 All businesses have to file GSTR-3B by 20th of next month until March 2018. Due date for the month February 2018 is 20th March 2018

All Tax liability will be recorded and maintained in Electronic Register. Payment for – Tax, Penalty, Fee or any other amount . Net Banking or Credit/Debit card Electronic Credit Ledger Payment of Tax, Penalty, Fee or any other amount . Payment by Credited to Use for Balance left in ECL may be refunded under Sec-38 if applicable. Sequence of discharge of Tax and Other dues Self assessed tax and other dues( penalty, interest, tax and fee) related to return of previous tax period. Self assessed tax and other dues related to return of Current tax period. Any other amount payable under the Act.

Interest on delayed payment of tax
Basic Procedure Returns & Payment Of Tax Interest on delayed payment of tax 1 There shall be an interest on delay of payment of taxes at such a late, as may be notified 2 The interest under sub-section (1) shall be calculated from the first day such tax was due to be paid. 3 There shall be an Interest on the undue/excess claim of Input Tax Credit at such a late as may be notified No requirement on payment of tax on advance received for supply of goods by all taxpayers

Payment of taxes by the normal taxpayer is to be done on monthly basis by the 20th of the succeeding month. Cash payments will be first deposited in the Cash Ledger and the taxpayer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant debit entry number in his return. Payment can also be debited from the Credit Ledger. Payment of taxes for the month of March shall be paid by the 20th of April. Composition tax payers will need to pay tax on quarterly basis. Suspension of TCS / TDS provisions till

Late fee already paid but subsequently waived off to be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head From October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month was „NIL‟ will be Rs. 20/- per day instead of Rs. 200/- per day whose tax liability for that month was not „NIL‟ will be Rs. 50/- per day instead of Rs. 200/- per day

Export Procedures Definition of export of goods :
“Export of goods” with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India. Definition of Export of Services : “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 the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;

GST Procedure for Export :
Goods and services to be exported under LUT or duty paid under claim of refund Drawback can be claimed(procedures for transition period only prescribed) LUT to be executed prior to export in form GST-RFD-11 to the jurisdictional GST commissioner. Existing Bond and LUT will not be continued. Refund of unutilized ITC can be claimed electronically for each tax period in form GST-RFD-1

TYPE OF EXPORT: GST Procedure for Export in SEZ :
A. Export of goods or services under LUT without paying IGST under claim of refund B. Export goods and services on payment of IGST under claim of refund C. Merchant Exporter only for export of goods with 0.1% of IGST (0.05% SGST & CGST) GST Procedure for Export in SEZ : “Zero rated supply” means any of the following supplies of goods or services or both, namely:–– (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

A registered person making zero rated supply shall be eligible to claim refund under either of the following options : he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made there under.

Dock (Direct) Stuffing
Logistics & Export Dock (Direct) Stuffing The truck carrying goods to export enters in the area of Container Freight Station which is a customs bonded area. The customs official can inspects the cargo and after necessary completion of customs procedures and CFS procedures, cargo is directly loaded in to container. This is called direct stuffing of cargo in Container Freight Station. Factory Stuffing Process in which cargo is loaded into an empty container which is then sealed (often in the presence of customs), and transported to the carrier for loading onboard a ship. This process is done in factory premise of the registered assesse. A special permission is need to be taken by the assesse for this from Custom Authorities. Containers are stuffed in presence of Custom Officer. This is valid until 31st march 2018

SELF SEALING UNDER GST The Customs Department has simplified the procedures for self-sealing of container cargo, with the introduction of electronic sealing procedure under the new GST regime. A special permission is need to be taken by the registered assesse from Proper Officer. The practice of factory stuffing of containers under the supervision of central excise authorities was being replaced by trust-based compliance systems. Electronic sealing procedures should be used, with RFID tamper-proof seals. The exporters should procure the seals from the vendors at their own expense. RFID Seals can be used only on those port where RFID Scanner are available.

Situations where refund would arise:
Excess payment due to mistake and inadvertence, Export (including deemed export), Finalization of Provisional Assessment, Refund of pre deposit in case of Appeal or Investigation, Refund for Tax payment on transactions by UN bodies, CSD Canteens, Para-military forces canteens, etc. Refund from Manufacturing / Generation/ Production/ Creation of Tax- free supplies or Non-GST Supplies, Refund of Carry Forward Input Tax Credit Refund on account of year end or volume based incentives. Tax refunds for International Tourists

REFUND OF CARRY FORWARD INPUT TAX CREDIT INVERTED DUTY STRUCTURE
ZERO RATED SUPPLES REFUND OF CARRY FORWARD INPUT TAX CREDIT INVERTED DUTY STRUCTURE One of the major categories under which, claim for refund may arise would be, on account of exports. All exports (whether of goods or services) as well as supplies to SEZs have been categorised as Zero Rated Supplies in the IGST Act. “Zero rated supply” under Section 16 of the IGST Act, 2017 means any of the following supplies of goods or services or both, namely: (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. On account of zero rating of supplies, the supplier will be entitled to claim input tax credit in respect of goods or services or both used for such supplies even though they might be non-taxable or even exempt supplies. The ITC may accumulate on account of the following reasons : Stock accumulation; Capital goods; and Partial Reverse charge mechanism for certain services. GST Law may provide that refund of carried forward ITC may not be allowed and such amount would be carried forward to the next tax period (s). Inverted Duty Structure i.e. GST on output supplies is less than the GST on the input supplies; Where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council. Example : When input tax paid is 18% and the tax on output is 5%

REFUND OF CARRY FORWARD INPUT TAX CREDIT INVERTED DUTY STRUCTURE
ZERO RATED SUPPLES REFUND OF CARRY FORWARD INPUT TAX CREDIT INVERTED DUTY STRUCTURE Every person making claim of refund on account of zero rated supplies has two options. Either he can export under Bond/LUT and claim refund of accumulated Input Tax Credit or he may export on payment of integrated tax and claim refund of thereof as per the provisions of Section 54 of CGST Act, Thus, the GST law allows the flexibility to the exporter (which, will include the supplier making supplies to SEZ) to claim refund upfront as integrated tax (by making supplies on payment of tax using ITC) or export without payment of tax by executing a Bond/LUT and claim refund of related ITC of taxes paid on inputs and input services used in making zero rated supplies. In cases of inverted duty structure, cash refund may be granted after due audit and should be sanctioned only after the input tax credit has been matched from the purchase and sales statements filed along with monthly returns.

Basic Procedure Refunds
The refund application has to be made in Form RFD-01 (to be certified by a Chartered Accountant) within a period of 2 years from the“relevant date.” Any specialized agency of the UNO/Multilateral Fin. Instit/embassy of foreign countries may make an application for such refund to the proper officer before expiry of 6 month from the last supply received. 1 2 3 A taxable person may claim refund of any unutilized input tax credit at the end of any tax period: In case of export (except in case export which is liable for export duty). Credit has been accumulated on a/c of rate of tax on input being higher than rate of tax on output. The application for refund to be accompanied by – a) Such documents as may be prescribed. 4

Facility for manual filing of refund application
Basic Procedure Refunds b) Documentary evidences for amount of tax/interest paid, evidences that such credit is has not been passed by him to others(in the amount claimed as refund is less Rs. 5 lacs, a declaration is suffice for documentary evidence). The proper officer may order to credit of the fund if he is satisfied. In case of export the proper officer may order refund of 90% on provisional basis and balance 10% may be refunded after due verification of documents. Order under section 4 may be issued within 60 day, provided the application is complete. The application for refund to be accompanied by – 5 6 7 Facility for manual filing of refund application

Basic Procedure Refunds
The amount of refund may be paid (instead of credit of fund) to the to the applicant- Proper office may withhold /deduct the refund amount under the specified situation. 8 a. Refund in case of export. b. Refund of unutilized ITC. c. Tax/interest if tax incidence is not passed to any other person. d. Amount is payable to state/center/other as per notification by the council. 9-14 Introduction of E-Wallet Scheme for exporters from and till then relief for exporters in form of broadly existing practice INTEREST ON DELAYED REFUNDS : Provisional release of 90% refund to exporters within 7 days. If any tax refundable not refunded within 2 months from the receipt of date of application, interest at 6% p.a.

Basic Procedure Accounts and Record
Accounts and Other Record Registered person need to keep and maintain a true and correct account of production/ manufacture of goods, inward/ outward supply of goods / services, stock of goods, ITC availed, output tax payable and paid in the manner as may be prescribed. The commissioner may notify a class of person to maintain additional accounts as may be specified. The Commissioner may permit a class of person to maintain accounts in manner other than as specified. Copy of Audited annual accounts needs to be submitted to proper officer, reconciliation statement under section 39 (2) in case where turnover during FY exceeds prescribed limit. 1. Registered person need to keep and maintain a true and correct account of production/ manufacture of goods, inward/ outward supply of goods / services, stock of goods, ITC availed, output tax payable and paid in the manner as may be prescribed. 2. The commissioner may notify a class of person to maintain additional accounts as may be specified.

Accounts and Other Record Registered person need to keep and maintain a true and correct account of production/ manufacture of goods, inward/ outward supply of goods / services, stock of goods, ITC availed, output tax payable and paid in the manner as may be prescribed. The commissioner may notify a class of person to maintain additional accounts as may be specified. The Commissioner may permit a class of person to maintain accounts in manner other than as specified. Copy of Audited annual accounts needs to be submitted to proper officer, reconciliation statement under section 39 (2) in case where turnover during FY exceeds prescribed limit. 3. The Commissioner may permit a class of person to maintain accounts in manner other than as specified. 4. Copy of Audited annual accounts needs to be submitted to proper officer, reconciliation statement under section 39 (2) in case where turnover during FY exceeds prescribed limit.

Period of retention of accounts Required to retain the records until the expiry of sixty months from the due date of filing of Annual Return for the year pertaining to such accounts and records. NOTE:- In case of appeal/proceedings whether filed by person/department, such records to be maintained for a period of one year after final disposal of such appeal or revision or proceeding.

INVOICING In the GST regime, two types of invoices can be issued
Tax Invoice Bill of Supply When a registered taxable person supplies taxable goods and/or services, a tax invoice is to be issued. The time limit for issuing invoice in case of taxable services is 30 days from the date of supply of services. Supply of exempted goods or services Supplier is paying tax under composition scheme Any tax invoice or any other similar document issued under any other Act for the time being in force in respect of any non-taxable supply shall be treated as a bill of supply for the purposes of the Act.

The invoice shall be prepared in triplicate (3 sets) in case of supply of GOODS
ORIGINAL FOR RECIPIENT DUPLICATE FOR TRANSPORTER TRIPLICATE FOR SUPPLIER The invoice shall be prepared in triplicate (2 sets) in case of supply of SERVICES ORIGINAL FOR RECIPIENT DUPLICATE FOR SUPPLIER

RECEIPT VOUCHER a receipt voucher is to be issued by a registered person on receipt of advance payment against any supply of goods or services or both. DEBIT NOTES/ CREDIT NOTES Issuing debit notes & credit notes against the invoices already issued, is allowed in GST. The details of DN/CN are to be given in returns of subsequent period. The tax liability will accordingly be adjusted in case of issuing a DN or CN for a particular transaction

DELIVERY CHALLAN Delivery challan is needed to be issued in a case where goods are transported without invoice. The cases where transportation on DC generally take place are: (a) Transportation of goods for job work, (b) Transportation of goods for reasons other than by way of supply, or (c) Such other supplies as may be notified by the Board, A DC is to be prepared in triplicate (3 sets) (a) The original copy being marked as ORIGINAL FOR CONSIGNEE; (b) The duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and (c) The triplicate copy being marked as TRIPLICATE FOR CONSIGNER

REFUND VOUCHERS In a case where after receipt of advance payment, no supply is made and no tax invoice is issued, the person may issue to the person who had made the payment, a refund voucher against such payment. PAYMENT VOUCHERS a registered person who is liable to pay tax under RCM shall issue a payment voucher at the time of making payment to the supplier :

Administration CGST Either Or 1. Principal Chief Commissioners of CGST
Principal Directors General of CGST 2. Chief Commissioners of CGST Directors General of CGST 3. Principal Commissioners of CGST Principal Additional Directors General of CGST 4. Commissioners of CGST Additional Directors General of CGST 5. First Appellate Authority 6. Additional Commissioner of CGST 7. Joint Commissioners of CGST Joint Directors of CGST 8. Deputy Commissioners of CGST Deputy Directors of CGST 9. Assistant Commissioners of CGST Commissioners Directors of CGST 10. Such other class of officers……..

Administration SGST 1. Commissioner of SGST 2.
Special Commissioners of SGST 3. Additional Commissioners of SGST 4. Joint Commissioners of SGST 5. Deputy Commissioners of SGST 6. Assistant Commissioners of SGST 7. Such other class of officers…….. Other sections are general empowering sections.

Miscellaneous Provision
PRESUMPTIONS AS TO THE DOCUMENTS 106 107 Any document unless the contrary is proved are presumed to be true, and the signs also are presumed to be of the persons claiming the same, and can be admitted as evidence even if not stamped if such document is otherwise admissible in evidence. Admissibility of micro films, fax, computer printouts as documents as evidence. Subject to the assumption that the computers were used in normal course of usage and were supplied normal set of information that it generally used to handle and by the regular set of officials and other computers which were normally used to do so. Basically this section clears the way for any kind of documents, devices, etc produced by the department in the course of investigation to be used as evidence

Job work Special procedure for removal of goods for certain purposes The commissioner by special order may permit a person to send the goods without payment of tax to a job worker or from there to subsequent job worker and shall – Bring back without the payment The responsibility for accountability inputs/capital goods shall lie with the “principal”. Supply such inputs from the place of job worker on payment of tax if applicable. NOTE The goods shall not be permitted to be supplied from the place of business of a job worker in terms of clause (b) unless the “principal” declares the place of business of the job-worker as his additional place of business except in a case- a) where the job worker is registered under section 23; b) where the “principal” is engaged in the supply of such goods as may be notified in this behalf.

XXII : LIABILITY TO PAY IN CERTAIN CASES 108 Liability in case of company in liquidation 110 Liability of partners of firm to pay tax: Jointly and severally liable, and in case of cessation intimation within one month is essential, or from the date of intimation only he will be free 111 Liability of guardians, trustees etc. 112 Liability of Court of Wards etc. 113 109 Liability in case of Transfer of Business. The transferee is liable for full liability even it may have accrued before acquisition. Liability in case of Merger/Amalgamation

XXII : LIABILITY TO PAY IN CERTAIN CASES Special cases: 1-Person Dies, 2-Partition of HUF, 3-Firm is Dissolved, 4-Beneficiay of any trust or guardianship. 114 Others All the above includes LLP as well (Contradictory Provision) 115 XXIII : Miscellaneous Provisions 116 GST Compliance Rating 117 Obligation of all the connected persons, officers, government offices, agencies, boards etc. to provide the information related to GST as and when required. 118` Penal provisions for non compliance of 117.

XXIII : Miscellaneous Provisions 119 Make Purchases for testing and verification. 121 Drawl of Samples 122 Burden of Proof 123 All persons discharging functions under this act are public servants 124 Disclosure of information required under section 119. 120 Power to collect statistics

XXIII : Miscellaneous Provisions 125 Indemnity: (The Culprit of Great Indian Corruption) 126 Disclosure of Information by a public Servant. 127 Publication of information respecting persons in certain cases. Assessment proceedings etc. not be invalid on certain grounds. 128 129 To be done by authorities/assessee Rectification of Mistakes or errors in records: Within 3 months of order/notice /summon (extendable up to 6 months)

XXIII : Miscellaneous Provisions 130 Bar of Jurisdiction of Civil Courts: Except for section 87/88 no civil court has jurisdiction to deal or decide any question of GST. 131 Levy to fees 132 Power of Central /State Government to make rules. General Powers to make Regulations : Commissioners. 132 A 133 Delegation of Powers. 134 Instructions to GST officers

XXIII : Miscellaneous Provisions 135 Rounding off of Tax: Nearest Rupee, 0.5 mathematical rule applies. 137 Effect of Amendments 138 Publication of Rules and Notifications and laying rules before parliament/legislature. 139 Service of Notice in certain circumstances 136 Removal of Difficulties

XII ASSESSMENT 57 Scrutiny of returns 59 Assessment of Non-Filers of Returns 60 61 Summary Assessment in certain special cases. 62 Provisional Assessment 58 Self Assessment Assessment of Unregistered Persons

XVI AUDIT 63 Audit by Tax Authorities 64 Special Audit XVII DEMANDS AND RECOVEREY Determination of tax not paid or short paid or erroneously refunded. 66 a. Determination of tax not paid or short paid or ITC wrongly taken, for any reason other then fraud, or any willful misstatement, or suppression of facts. Determination of tax not paid or short paid or ITC wrongly taken by reason of fraud or any willful misstatement or suppression of facts. 61

Initiation of recovery proceedings
Miscellaneous Provision XVII DEMANDS AND RECOVEREY General Provisions Relating to demand of tax. Above provisions are applicable mutatis mutandis on interest recovery as well. 69 Initiation of recovery proceedings 71 Recovery of Tax 72 Tax wrongfully collected and deposited with the Central or a State Government 70 Tax Collected but not deposited with the Central or a State Government.

XVII DEMANDS AND RECOVEREY 73 Transfer of property to be void in certain cases. 75 Tax to be first charge on property. 76 Provisional attachment to protect revenue in certain cases. 77 Continuation of certain recovery proceedings. 78 Payment of Tax and other amount in installments. 74 Bar on recovery proceedings

XVIII INSPECTION, SEARCH AND SEIZURE 79 Power to Arrest 81 Power to summon persons to give evidence and produce documents. 82 Access to Business Premises 83 Officers required assisting CGST/SGST officers. 84 Inspection of goods in movement 80 Power of inspection, search and seizure.

XIX OFFENCES AND PENALTIES 85 General Disciplines related to penalty 87 Power of Adjudication 88 Detention and release of goods and conveyances, in transit 89 Confiscation of goods or conveyance and levy of penalty. 90 General Penalty 86 Offences and Penalties.

XIX OFFENCES AND PENALTIES 91 Confiscation or penalty not to interfere with other punishments. XX PROSECUTION AND COMPUTNDING OF OFFENCES 92 Prosecution Cognizance of Offences 93 94 Presumption of culpable mental state. 95 Relevancy of statements under certain circumstances

XX PROSECUTION AND COMPUTNDING OF OFFENCES 96 Offences by Companies and certain other persons. Compounding of Offenses 97 XXI APPEALS Appeals to first Appellate Authority 98 99 Revisional powers of chief commissionerate/ commissioner. 100 Constitution of the National Appellate Tribunal

XXI APPEALS 101 Procedure of Appellate Tribunal. 103 Interest on refund of pre-deposit. 104 Appearance by authorized representative. 105 Appeal to the High Court 106 Orders of Appellate Tribunal 102 Appeals to the Appellate Tribunal

XXI APPEALS 107 Sums due to be paid not withstanding appeal etc. 109 Exclusion of time taken for copy. 110 Appeal not to be filed in certain cases. 111 Non Appealable decisions and orders 112 Hearing before Supreme Court 108 Appeal to Supreme Court

XIX ADVANCE RULING 113 Appellate Authority for Advance Ruling 115 Application of Advance Ruling 116 Procedure on receipt of Application. 117 Appeal to the Appellate Authority 118 Authority for Advance Ruling 114 Definitions

XIX ADVANCE RULING 119 Applicability of Advance Ruling 121 Advance Ruling to be void in certain circumstances 122 Powers of the Authority and Appellate Authority. 123 Procedure of the Authority and Appellate Authority. 124 Rectification of the Advance Ruling 120 Orders of the Appellate Authority

E-WAY BILL Introduction of nation-wide E-way bill for inter-state supplies from and for intra-state supplies latest by What is an e-Way Bill? E-Way Bill is an electronic way bill for movement of goods which can be generated on the e-Way Bill Portal. Transport of goods of more than Rs. 50,000 in value in a vehicle cannot be made by a registered person without an e-way bill. In relation to a ‘supply’ For reasons other than a ‘supply’ ( say a return) Due to inward ‘supply’ from an unregistered person For certain specified Goods, the e-way bill needs to be generated mandatorily even if the Value of the consignment of Goods is less than Rs. 50,000: Inter-State movement of Goods by the Principal to the Job-worker Inter-State Transport of Handicraft goods by a dealer exempted from GST registration 2.When Should e-Way Bill be issued?

3. Who should Generate an e-Way Bill?
Registered Person – E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person. A Registered person or the transporter may choose to generate and carry e-way bill even if the value of goods is less than Rs 50,000. Unregistered Persons – Unregistered persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier. Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.

4. Cases when e-Way bill is Not Required?
In the following cases it is not necessary to generate e-Way Bill: The mode of transport is non-motor vehicle Goods transported from port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs. Transport of specified goods (PDF of List of Goods). 5. Status of Implementation across India The following states have notified e-Way bill for mandatory inter-state transport of goods: Karnataka Uttarakhand Rajasthan Kerala For rest of the 25 States and 7 Union territories date of implementation of E-Way Bill is yet to be announced

6. How to generate e-Way Bill ?
The e-way bill (EWB) portal provides a seamless gateway to generate e-way bills (single and consolidated options), change vehicle number on the already generated EWB, cancel generated EWBs and many more… E-way bills in EWB-01 can be generated by either of two methods: On the Web Via SMS There are some pre-requisites for generating an e-way bill (for any method of generation): Registration on the EWB portal The Invoice/ Bill/ Challan related to the consignment of goods must be in hand. If transport is by road – Transporter ID or the Vehicle number. If transport is by rail, air, or ship – Transporter ID, Transport document number, and date on the document

Step 1: Login to e-way bill system.
Step 2: Click on ‘Generate new’ under ‘E-waybill’ option appearing on the left-hand side of the dashboard. Step 3: Enter the fields on the screen that appears Step 4: Click on ‘Submit’. The system validates data entered and throws up an error if any. Otherwise, your request is processed and the e-way bill in Form EWB-01 form with a unique 12 digit number is generated.

The e-way bill generated looks like this:

Validity of E-Way Bill An e-way bill is valid for periods as listed below, which is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of e-way bill- Distance Validity of EWB Less Than 100 Kms 1 Day 100 km or more but less than 300km Three day 300 km or more but less than 500km Five days 500 km or more but less than 1000km Ten days 1000 km or more Fifteen days

Invoice/ Bill of Supply/ Challan related to the consignment of goods
Documents or Details required to generate e-Way Bill Invoice/ Bill of Supply/ Challan related to the consignment of goods Transport by road – Transporter ID or Vehicle number Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document

JOB WORK What is job-work?
Section 2(68) of the CGST Act, 2017 defines job-work as ‘ “any treatment or process undertaken by a person on goods belonging to another registered person” Job-work procedural aspects: The inputs, semi-finished goods or capital goods shall be sent to the job worker under the cover of a delivery challan issued by the principal. Principal have to furnish GST ITC-04 on or before the twenty-fifth day of the month, succeeding the quarter in which goods are sent for job work, and it shall contain the following details: Details of challans for dispatch of goods to JW. Details of challans for receipt of goods from JW

The principal shall be eligible for the ITC of the inputs & capital goods sent to job worker.
The time limit for receiving back of inputs sent to job worker is within 1 year & The time limit in the case of capital goods shall be within 3 years from the date of sending such goods to the job-worker. When the goods are not received back by the principal from the job worker, within stipulated time, it shall be deemed as a supply by the principal to job worker from the date of sending of such goods & shall be shown in GSTR-1 of the principal. Principal can send inputs or capital goods directly to the job-worker without bringing them to his premises and can still avail the credit of tax paid on such inputs or capital goods. If the job worker is registered, the principal can directly supply from the premises of the job worker to the third party on payment of tax. The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.

Transitional provisions for job work:
If the goods are sent to job worker before 1st of July, & are being received back within 6 months from 1st of July, No tax shall be payable on such transaction, & after completion of 6 months, the same shall be treated as a taxable supply. The manufacturer and the job worker shall file GST TRAN- 1 & declare the details of the inputs or goods held in stock by the job worker on behalf of the manufacturer on the appointed day. Further, if the goods sent to job worker are not returned within 6 months from 1st July, the ITC taken on such goods shall be reversed accordingly.

THANK YOU CMA. MIHIR TURAKHIA Novel Exiccon Pvt. Ltd.

GST “STEP INTO GST ERA” A DETAILED PRESENTATION ON :-

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GST “STEP INTO GST ERA” A DETAILED PRESENTATION ON :-

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