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 Levy of GST on purchases from URD Sec 9(4)

• On purchase of taxable goods and services from URD, buyer liable to GST on Reverse Charge
basis

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 Tax Invoices / Rates
• Single Goods / Services / Commodity shall 0 % Nil Rate Items
have Rates Prescribed in CGST / SGST &
IGST. 5% Essential Items
• If the Receiver is Located within the State
12 % Standard Rate
CGST & SGST both shall be made
applicable. 18 % Standard Rate
• If the Receiver is Located in other State,
IGST shall be made applicable. 28 % Luxury Items
Addon Tax on Ultra Lux,
Proposed Format of the Tax Invoices Add. Levy % Sin & Demerits Items

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 Composition Levy for Turnover < 1.5crore

WHO CAN OPT WHO CANNOT OPT CONDITION FOR

• A registered taxable • Supplier of Services ELIGIBILITY
person whose turnover • Supplier of Exempted • The person shall not
in preceding financial Goods collect tax from the
year did not exceed 1.5 • Who makes inter-state recipient on supplies
crore rupees supply of goods (IGST) made by him nor he
• If the turnover in the • Supplies goods through shall be eligible for any
current financial year ECO. input tax credit.
exceeds 1.5 crore • Unless all units
rupees, the permission registered for Same
shall stand withdrawn PAN

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 Input Tax Credits (ITC)

Proposed Features of Input Tax Credit. CGST paid = Rs. 10

• No overlapping of taxes. CGST @ 10%
• Reducing Tax on Tax Effect. CGST paid = Rs. 10
CGST paid = Rs. 10 (Rs. 30 – 20 (Input Tax Credit)
• Only one strong reason, enabling (Rs. 20 – 10 (Input Tax Credit)
reduction of prices inspite of
Proposed Higher Rates of GST. Final
T1 T2 T3 Consumer
A B C D

SGST paid = Rs. 10

(Rs. 20 – 10 (Input Tax Credit)
CGST paid = Rs. 10
(Rs. 30 – 20 (Input Tax Credit)

SGST @ 10%
SGST paid = Rs. 10

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 Input Tax Credits (ITC)……… continued

What are the Credits available?

• All Input tax Charged on supply of Goods / Services on the Goods & Services intended to be used in course of
furtherance of Business or Commerce including GST paid on RCM basis.

What are the conditions for availing Input Credits in General?

• Registered person should be in possession of tax invoices or debit notes.
• Should have received the goods and services or both.
• Tax charged in respect of such supply has been actually paid to the government, subject to provisional availment of
credit by supplier, and,
• Supplier has furnished the Monthly Return.
• If the recipient fails to pay the supplier within 180 days, then amount of such credit availed needs to be added back to
their output liability along with Interest. Credits shall be allowed subsequently on the payment made the supplier.
• No credits shall be allowed after due date of Monthly Return to be filed for September following the F.Y. for which such
Invoice pertains to, or , Furnishing of Annual Returns. i.e. For F.Y. 2017-18 uptill 20 th Oct’18 or Date of Annual Return
filed (Due date is 31st Dec’ 2018)

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 Input Tax Credits (ITC)
What/Whose Credits are disallowed?
• Non Registered Taxable person
• No Credit on Depreciated components of the Capital Goods.
• Apportionment of the ITC, if claimed partly for Business (including zero rated suppliers) and Partly of
Personal Use or use of Exempted Supply (incl t/o of RCM, securities, sale of land, sale of building excl
construction services).
• No Credit of Motor Vehicles & other Conveyances, in general except when used similar conveyances, transportation of
passengers or imparting training & Transportation of Goods.
• Supply of foods, beverages, catering, etc except when used to similar outward supply.
• Membership of club, health & fitness centre.
• Rent-a-Cab, Life & Health Insurance, except Government Notified obligatory duty or similar outward supply.
• Travel benefits extended to employees.
• Works Contract Services for construction of immovable property (other than P&M) except when used for
similar outward supplies
• Goods & Services received for construction of immovable property (other than P&M) on his own account or
even for furtherance of Business. (Consider Section 2(119) & Sch II 5(b) for Definition of Construction)
• Person paying Tax in Composition Scheme.

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 Input Tax Credits (ITC)
Case Study 1:-

Cenvat Credits to Works Contractor.

Ans: YES u/s 17(5)(c). Only for Works Contract
Scenario 1: Civil Contractor has undertaken Taxable Services.
Works Contract for Municipal Corp, he hire multiple
contractors and gives them separate works contracts.
Whether he shall be available to take credit under GST?

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 Tax Deduction at Source @ 1%

LIABILITY TO VALUE OF CREDIT OF TAX

DEDUCT CONTRACT DEDUCTED REFUND OF EXCESS
• A department or • Liability to deduct if • The deductee can TAX DEDUCTED
establishment of value of contract claim credit of the • Refund of excess
central or state exceeds Rs 2.5 Lakhs tax deducted in his amount or
government • Only Same State. electronic cash erroneous deduction
• Local authority • Paid by 10th of Next ledger shall be dealt with in
• Governmental Month. accordance of
agencies • For the purpose of refund provisions
• Such persons or tax deduction, the • No refund shall be
categories of value of supply shall granted where the
persons as may be be taken as amount amount deducted
notified on excluding the tax has been credited to
recommendations of amount in the the electronic cash
the GST Council invoice ledger of the
deductee

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 Payment of Taxes
• Tax
ELECTRONIC • Interest
CASH • Penalty
REGISTER • Arrears
• Fees or any
LIABILITY AS other amount
AVAILABLE payable
IN CAN BE under the act
ELECTRONIC DISCHARGED IGST
LIABILITY THROUGH IGST CGST
REGISTER SGST
ELECTRONIC
CREDIT CGST CGST
REGISTER IGST
SGST
SGST
IGST
UGST
UGST
IGST

LIABLITY TO BE DISCHARGED ON REVERSE CHARGE BASIS WILL BE DISCHARGED THROUGH CASH REGISTER
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 Filling of Returns
ANNUAL RETURN IN GSTR 9 BY 31ST
DECEMBER OF SUCCEEDING FINANCIAL YEAR

MONTHLY RETURN IN GSTR 3 OF TAX BY 20TH OF

SUCCEEDING MONTH

Final Turnover of Input Autopopulated based on GSTR-2 Final Turnover of Output Autopopulated based on GSTR 1

INWARD GSTR 2 TAXABLE GSTR 1 OUTWARD

SUPPLIER PERSON 10TH OF SUCCEEDING RECEIPIENT
15TH OF SUCCEEDING
MONTH MONTH

ANY ALTER, REJECT, MODIFY,

UNDER GSTR – 2 TO BE INTIMATED AUTOPOPULATED UNDER
UNDER GSTR –1A PART A OF GSTR-2A

INVOICE WISE DETAILS TO BE UPLOADED IN THE RETURNS UNDER GSTR-I.

CANNOT FILE GSTR-1 FROM 11TH TO 15TH OF THE SUCEEDING MONTH.
CONCEPT OF INVOICE MATCHING INTRODUCED IN THE RETURNS
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 GSTN – Return Compliances

Step 4
Step 1
GSTR-1A : The details of inward 16 10
supplies added, corrected or Step 8 20
GSTR 1: Details
deleted by the recipient shall be
of Outward
made available to the supplier
supplies Step 2 GSTR 3
GSTR 2A: Auto-
Step 5 11
populated in
17 Step 3 part A of the
Supplier will accept or Part B of
reject the modifications GSTR 2: On the basis of GSTR-2A of GSTR 3
above GSTR-2A, details recipients
Step 7
of inward supplies
added, corrected or 15 Make
Step 6 deleted by recipient to
17 Part A of GSTR 3
Payment
GSTR-1 will be amended be disclosed under
to the extent GSTR-2, including RCM
details 20
modifications are Part A of GSTR 3
accepted by supplier.

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 Filling of Returns……. continued
OTHER RETURNS FORM DUE DATE
QUARTERLY RETURN FOR COMPOSITION LEVY GSTR -4 18TH
MONTHLY RETURN FOR NON-RESIDENT FOREIGN TAXABLE PERSON GSTR -5 20TH
ISD RETURN GSTR -6 13TH
RETURN FOR PERSONS DEDUCTING TAX AT SOURCE GSTR -7 10TH

OTHER FEATURES

• Annual return to be submitted along with copy of audited annual accounts and a
reconciliation statement, reconciling the values of supplies declared in the return furnished
in the year
• Filing of Nil return (Regular / Composition) also mandatory under GST
• No Returns can be filed if previous period returns pending.
• If GSTR-1 10th Deadline missed – Min. Penalty of Rs.500

• Late fee prescribed for late filing of returns

• Furnishing Details/Monthly Returns – 100/day or 5000/- .
• Annual Returns - 100/day or 0.25% of the Annual Turnover in that State.
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 RETURNS: GSTN PORTAL - LEDGER BALANCE

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RETURNS: GSTN PORTAL -- RECEIVER & SUPPLIER MISMATCH REPORT

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RETURNS: GSTN PORTAL --ALL TYPES OF RETURNS

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RETURNS: GSTN PORTAL -- DETAILS OF OUTWARD SUPPLIES TO BE FURNISHED

If Invoice value more

Inter State than Rs.2.5 Lacs than
Supplies Supplies
made to invoice wise details
Unreg.
persons
If Invoice value less than
Details of Intra State Rs.2.5 Lacs than state wise
Outward Supplies consolidated details of
Supplies supplies

Supplies made Invoice wise Consolidated

to Reg. persons details of all details of
Inter State & Supplies
Intra State
Supplies

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 GSTR-1 – INVOICE DETAILS

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GSTR-2 - INWARD SUPPLIES

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GSTR-3 - DETAILS OF MONTHLY RETURN

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GSTR-3 – TURNOVER DETAILS

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 Refunds
Refund of Unutilized ITC
• For exempted exports including zero rated supplies
• Rate of Tax on inputs is higher than on output supplies
(Inverted Levy)
• No Refund if Duty Drawback claimed.

Refund of Tax & Interest

• Application shall be filed before expiry of 2 years.
• Special category persons shall file before expiry of 6 months.
• Refund filed for tax, duty, cenvat credit or interest paid in earlier law shall be disposed of as per earlier law & if
admissible shall be paid in Cash. (Transitional Provision)

Procedure & Timings for Sanctioning Refunds

• Provide documentary evidence as prescribed
• If refund is < Rs.2 Lac, than he shall only file a declaration that incidence of tax has not been passed.
• If refund Zero rated supplies of G/S is claimed, 90% of claim shall be refunded on provisional basis.
• Officer shall issue order within 60 days of receipt of application
• Interest not exceeding 6%shall be paid if not refunded within 60 days
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 Audits & Records
Turnover based Audit – Where turnover of a registered taxable
person exceeds a 2 Crore (Return Rule 21(2)) in a financial year, he
shall get his accounts audited by a Chartered Accountant or Cost
Accountant & shall submit audited annual accounts, reconciliation
statement & other documents as prescribed.
Types of Audit • Departmental Audit - Commissioner may by general or
special order undertake audit of any taxable person which shall
be conducted by tax authorities.
• Special Audit – At any proceedings, any officer having regard
to nature & complexity of the case with prior approval of
Commissioner, may get the accounts audited by a Chartered
Accountant or Cost Accountant nominated by the
Commissioner & remuneration of such audit shall be paid by
Commissioner.

• Maintain books of accounts & other records for a period of 6

Records years from the due date of filing of Annual Return for the year
pertaining to such accounts & records

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 Penalty & Prosecution Provisions
Reasons other than fraud,etc (S.73)
Tax has been paid or short paid or erroneously refunded or ITC wrongly availed
By reason of fraud,etc (S.74)
TYPES OF OFFENSES
Particulars U/s 73 U/s 74
1. Supplies G/S without issue of any invoice
Maximum Penalty 10% of tax OR 100% of > Rs.5Cr.
Rs.10,000 WEH tax 2. Issue of invoice without supply of G/S
Cognizable
3. Collects tax but fails to pay to the credit of Govt. & Non-
Period covered 3 yrs. 5 yrs.
4. Takes/utilizes ITC point # 2 above. Bailable.
Paid before SCN - 15% of tax
5. Collects tax in contravention of provisions but fails
After SCN but - 25% of tax to pay to the credit of Govt.
within 30 days
6. Evades tax, wrongly avails ITC or refund
After Order issued 10% of tax OR 50% of tax
but within 30 days Rs.10,000 WEH 7. Falsifies financial records
Imprisonment
8. Prevents officer in discharge of his duties upto 6 month
Amount of Evasion Imprisonment with/or Fine.
9. Tampers or destroys any evidence
> Rs. 5 Cr Upto 5 yrs. with Fine
10. Engages in services which are in contravention
Rs. 2 Cr - 5 Cr Upto 3 yrs. with Fine
11. Engages in goods liable for confiscation
Rs. 1 Cr - 2 Cr Upto 1 yr. with Fine
12. Fails to supply information under this Act
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13. Attempts to commit any of the above