Beruflich Dokumente
Kultur Dokumente
TO BE COLLECTED BY STATE
SGST
TO BE COLLECTED BY CENTRE
IGST
Under 0% tax rate, commodities such as food grains, rice, wheat are included.
The first slab is 5% tax, under which products of mass consumption are included such as spices, tea
and mustard oil.
Second slab is 12% under which processed food items has been included.
Third slab is 18% tax, under which items such as soaps, oil, toothpaste, refrigerator, and smart
phones have been included. Right now, these products are taxed more than 25% tax rates.
Fourth slab is 28%, Under 28% slab, white goods and cars are included. Currently, whatever
products are included in the 27-31% would be included in this tax bracket.
S. Subsumed under CGST Subsumed under
NO SGST
Maximum number of bills should be raised in VAT regime so that the Input Tax
credit could be availed under GST.
Stock tally should be prepared on all India basis which shall be correlated with
the invoices not more than 6 months.
Person supplying goods or services not liable to Tax or exempt from Tax.
An agriculturist, to the extent of supply of produce out of cultivation of Tax
Person as Notified by Govt.
Each taxpayer will be allotted a State wise PAN-based 15-digit Goods and Services
Taxpayer Identification Number (GSTIN)
In terms of Indian Census 2011-Each State to have a unique code, such as 09 for Uttar
Pradesh
No. of Registration
Single registration In a State
Provided that a person having multiple business verticals in a state may be granted separate
registration for each business verticals.
BUSINESS VERTICALS
A distinguishable component of an enterprise :
Engaged in the Supply of Individual goods or services or
Group of related goods or services subject to risks and returns
That are different from those of other business verticals.
Invoice
Tax Invoice : Taxable Goods No Tax Invoice :
At Removal / Delivery (before or At) Supply less than Rs.200
Exempted goods / Section 10 shall
issue Bill of Supply
Tax Invoice : Taxable Services
Receipt voucher in case of Advance
Before or after provision of service.
Debit Note and Credit Note
The amount of tax or duty availed or utilized by way of input tax credit under each of existing law till appointed day
(17 July 2017)
The amount of tax or duty yet to be availed or utilized by way of input tax credit under each of the existing law till
appointed day.
The name of supplier, serial number and date of issue of invoice by the supplier or any document on basis of which
credit of input tax was admissible under the existing law.
Description and value of goods or services.
The quantity in case of goods and the unit or unit quantity code thereof
The amount of eligible taxes and duties or as the case may be value added tax (or entry tax) charged by supplier in
respect of goods or services, and
The date on which receipt of goods or services are entered in the books of accounts of recipient.
THE AMOUNT OF CREDIT SPECIFIED IN THE APPLICATION FORM GST TRAN-1 SHALL BE CREDITED TO THE ELECTRONIC
CREDIT LEDGER OF THE APPLICANT MAINTAINED IN FORM GST PMT-2 ON COMMON PORTAL.
Other Conditions for transferring Input Tax Credit or on 30th June to 1st July
You must be in possession of duty paying invoice or document evidence, payment of duty which were issued not earlier
than 12 months.
You must have filed returns for last six months.
Such input or goods are used or intended to be used for making taxable supplies under GST.
Return as on 30th June can be furnished within three months.
"Eligible Duties" in respect of inputs held in stock & inputs contained in semi finished or finished means goods held in
stock on 1st July or in respect of inputs and input services received after 1st July 2017.
The additional duties of Excise leviable under Section-3 of the Additional duties of excise (Goods of ..
importance) Act, 1957.
The additional duty leviable under Sec(1) of Section-3 of the Custom Tariff Act 1975.
Additional duty leviable under sub section (5) of Section 3 of Custom Tariff Act, 1975.
The Additional duty of Excise Leviable under 3 of the Additional duties of excise (Textile & Textile Article) Act 1978
The duty of Excise specified in first schedule to the Central Excise Tariff Act, 1985.
The duty of excise specified in the second schedule to the central excise tariff Act, 1985.
The national calamity contingent duty leviable under section 136 of Finance Act, 2001.
Service Tax leviable under section 66B of the financial Act 1994.
No Input Tax Credit where
Where the amount of credit relates to goods manufactured and cleared under exemption
notification.
Returns of preceding six months not furnished.
If before 30th June 2017 you were not registered under excise and were doing following
Engaged in manufacture of exempted goods.
Providing exempted services
Providing works contract services under 26/12 notification
You were first stage dealer or second stage dealer
Registered importer
Depot of manufacturer.
You would be entitled to take credit of eligible duties by credit in electronic credit ledger
account in respect of
Input held in stock
Input contained in semi finished or finished goods held in stock on 1st July 2017.
Conditions
Inputs or goods are used or intended to be used for making taxable supply
In possession of invoices 12 months old (dated)
If you don not have invoice dated 12 months earlier from 1st July 2017 and if you are not manufacturer or services
provider, you can also claim input tax credit subject to following conditions You are a trader
ITC in VAT on 30th June 2017 is available even if you are not in possession of any document evidence payment of VAT.
ITC is available in aforesaid ratio but you have to file Form-C, F, E1, E2 or other prescribed form under existing
law before 30.09.2017.
The aforesaid ITC claimed under existing central Act (State Act) would be available for six months from 1st July 2017
but you will have to deposit SGST/CGST/IGST first on prevailing rate under GST therefore only ITC as on 30th
June 2017 would be claimed.
Condition
If the capital goods are not received back within 3 years, the
principal shall pay an amount equal to input tax credit taken
on the said capital goods.
Where the inputs sent for job work are not received back
by the principal after completion of job work or otherwise
or are not supplied from the place of business of the job
worker within 3 years of being sent out, it shall be
deemed that such inputs had been supplied by the
principal to the job worker on the day when the said
inputs were sent out.
RETURN FORM WHO NEED TO FILE? WHAT WILL BE FILED? WHEN TO FILE?
GSTR-11 Person having UIN and Details of inward 28th of the month
claiming refund supplies to be furnished following the month for
by a person having UIN which statement is filed.
Return Defaulters:
Q . What would be treatment of the waste and scrap generated during the job
work?
Ans. The waste and scrap generated during the job work can be supplied by the
job worker directly from his place of business, on payment of tax, if he is
registered. If he is not registered, the same would be supplied by the principal on
payment of tax.
Supply is the term replaced for the term sale; no scope has been left for
any confusion and the definition includes every term which shall be coined
as sale. Even the supply which is made or agreed to be made without a
consideration will also amount to sale.
Supply includes:
SUPPLY OF GOODS
Involving Before or at the time of removal
movement of of goods for supply to the
recipient
goods
Note: The above provisions are mandatorily applicable for all taxable supply of goods made, except where the value of
supply is less than INR 200 and the recipient is not registered.
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Time limit for issuing tax invoice
Before or within 30 days
SUPPLY OF SERVICES
Normal scenario from the date of the
provision of service
Before or within 45 days
Banks, Insurance &
from the date of the
Financial Institutions
provision of service
Supply of service
Before accounting or expiry
between distinct
of the quarter
person, as above
Note: The above provisions are mandatorily applicable for all taxable supply of goods made, except where the value
of supply is less than INR 200 and the recipient is not registered.
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Other documents
Delivery Challan Transportation of goods without invoice
Place of
On-site assembly/installation
assembly/installation
*Principal place of business = place of business specified as the principal place of business in the certificate of
registration
PwC
Goods delivered on direction of third person
Flow of invoice
Movement of Goods
PwC
Place of Supply for Goods
Import and Export
Importer
Export of goods
Outside India XYZ Ltd Location outside India
from India
India
Exporter
Movement of Goods
PwC
Service Description If supplied to a registered If supplied to any other person
person
Event related service or Training and performance appraisal service The location of such Location where the services are actually
training service Organisation of cultural, scientific, sporting, registered person performed
educational, entertainment event or any Location where the event is actually held
ancillary event Location of the recipient of the insurance
Insurance Service service
Transportation Service Transportation of goods, including by way of The location of such Location at which the goods are handed
mail or courier registered person over for their transportation
Passenger transportation service Location where the person embarks on a
conveyance for a continuous journey
On board services Service on board a conveyance including vessel, First scheduled point of departure of the conveyance
aircraft, train or motor vehicle
Event based service Organisation of cultural, scientific, sporting, Location where the event is actually held
educational, entertainment event or any ancillary
event
Financial Service Banking and financial services including stock Location of the recipient on the records of the supplier
broking services Location of the supplier if the location of the recipient is not available
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Place of Supply of Service
Service Description Place of supply
Performance based services Restaurant and catering services, personal Location where the services are actually performed
grooming, fitness, beauty treatment, health
services
Telecommunication Service Service by way of fixed telecommunication line, Location where the antenna, line, cable or circuit is installed
leased circuits, internet leased circuit, antenna for supply of service
services
Mobile connection and internet services provided on Billing address of the recipient of service
post paid basis
Prepaid telecom, internet or DTH service Through a selling agent, re-seller, distributor of SIM cards
address of the selling agent, distributor or re-seller
Directly to final customer where such pre-payment is
received
Any other case Address of the recipient as per the records of the supplier
May 2017
PwC 49
Place of Supply of Services
Location of supplier or recipient outside India
Service directly in relation to
Location where the immovable property is
immovable property
located or intended to be located
Transportation Transportation of
of goods (other than mail or passenger
courier)
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Place of Supply of Services
PwC
Section
4
Time of supply
Time of supply of goods
Time of supply
of goods
Date
Date of Date on immediat
Date of ely
Date of receipt which
receipt following
issue of of paymen
of 30 days
invoice paymen t is from the
goods
t made date of
invoice
PwC
Time of supply of services
Time of supply
of services
Date Entry in
immedia the
Date of Date on tely
which books
Date of receipt followin
paymen of Date of
issue of of g 60
t is account payment
invoice paymen days
made of
t from the recipie
date of nt
invoice
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Advances
Procedure
Month 1 advance received
Impact/ Challenges
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COMPOSITION
SCHEME
FAQs
Q1. Who can opt for Composition Scheme?
Ans. Businesses dealing only in goods can only opt for composition scheme.
Services providers have been kept outside the scope of this scheme.
However, restaurant sector taxpayers may also opt for the scheme.
This holds true if your annual turnover is below Rs 50 Lakhs.
Q2. What is the tax rate applicable on a composition dealer?
Ans. A registered taxpayer, who is registered under the Composite Scheme will
pay tax at a rate not more than 1% for manufacturer, 2.5% for restaurant sector
and 0.5% for other suppliers of turnover.
Q3. Can a Composition Dealer issue Tax Invoice?
Ans. No. Since a Composition Dealer is not allowed to avail input tax credit, such
a dealer cannot issue a tax invoice as well. A buyer from composition dealer
will not be able to claim input tax on such goods.
Contd.
Q4. What are the penalties applicable on Composition Dealer in case of any default in tax payment?
Ans. If the tax administration has reason to believe that a composition dealer has wrongly availed the benefit under the composition scheme,
then such a person shall be liable to pay all the taxes which he would have paid under the normal scheme. Also, he will be liable to pay a
penalty equivalent to an amount of tax payable.This penalty will not be levied without giving a show cause notice to the dealer.
Q5. What are the transition provisions if a business transits from Composition Scheme under current regime to Regular Taxation under GST?
Ans. Taxpayers registered under composition scheme under the current regime will be allowed to take credit of input held in stock, or in semi-
finished goods or in finished goods on the day immediately preceding the date from which they opt to be taxed as a regular tax payer.
Q6. What are the conditions for availing input credit on stock lying at the time of transition?
Ans. Following are the conditions which must be addressed by the taxpayer to avail credit on input at the time of transition from composition
scheme to the normal scheme: Such inputs or goods are intended to be used for making taxable supplies under GST law. Taxpayer was
eligible for CENVAT Credit on such goods under the previous regime, however, couldnt claim it being under composition scheme. Such
goods are eligible for input tax credit under GST regime. The taxpayer has legal evidence of input tax paid on such goods. Such invoices
were issued within a period of 12 months from GST applicable date.
Q7. What is the treatment for input credit availed when transitioning from normal scheme to Composition Scheme?
Ans. When switching from normal scheme to composition scheme, the taxpayer shall be liable to pay an amount equal to the credit of input tax
in respect of inputs held in stock on the day immediately preceding the date of such switchover. The balance of input tax credit after
payment of such amount, if any lying in the credit ledger shall lapse.
INPUT TAX CREDIT
Defined U/s 16 of the CGST Act, 2017. Every Registered person shall, be entitled to take credit
of Input Tax charged on any supply of goods or service or both to him which are used or intended
to be used in the course or furtherance of his Business and such amount shall be credited to the
electronic credit ledger of such person.
5. Works Contract service when supplied for construction of an immovable property (other than
plant and machinery) except where it is an input service for further supply of works contract
service.
6. Goods or service or both received by a taxable person for construction of an immovable property
(other than plant and machinery) on his own account including when such goods or service are
used in the course or furtherance of business.
Note: Construction includes reconstruction, renovation, additions or alterations or repairs, to the
extent of capitalisation, to the said immovable property
7. Goods or Service or both on which tax has been paid U/s 10.
8. Goods or service or both received by a Non resident taxable person except on goods imported by
him.
7. Goods or service or both used for personal consumption
8. Goods lost, stolen destroyed, written off or disposed of by way of gift or free samples.
9. Any tax paid in accordance with Sections 74, 129 and 130
ITC IN RESPECT OF INPUTS AND CAPITAL GOODS SENT FOR JOB WORK: Section 19 of CGST Act
1. The principal shall be entitled to take credit of ITC even if the inputs are directly sent to a job
worker for job work without being first brought to his place of business.
2. The Principal shall, subject to certain conditions, be allowed to take ITC on capital goods sent to
a job worker for job work.
3. The principal shall be entitled to take credit of ITC on capital goods even if the capital goods are
directly sent to a job worker for job work without being first brought to his place of business.
Where the capital goods sent for job work are not received back by the
principal within a period of three years of being sent out, it shall be
deemed that such capital goods had been supplied by the principal to the
job worker on the day when such capital goods were sent out.