GOODS & SERVICES TAX (GST) (Status as on 01st May, 2017)
GST
Dated:- 3-5-2017
GOODS & SERVICES TAX (GST) (Status as on 01st May, 2017)
=============
Document 1
GOODS &
SERVICES TAX
(GST)
(Status as on 01st May, 2017)
1
PRESENTATION PLAN
WHY GST: BENEFITS
â– EXISTING INDIRECT TAX STRUCTURE
â– FEATURES OF CONSTITUTION AMENDMENT ACT
*GST COUNCIL
â– MAIN FEATURES OF GST LAW
Ü€
GSTN
✰ ROLE OF CBEC
WAY FORWARD
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WHY GST?
BENEFITS
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WHY GST: BENEFITS
To Trade
☠Reduction in multiplicity of
taxes
To Consumers ܀
☠Mitigation of cascading/ double
taxation
☠More efficient neutralization of
taxes especially for exports
☠Development of common
national market
☠Simpler tax regime
Fewer rates and exemptions
Distinction between Goods &
Services no longer required
â–¡ Simpler Tax system
Reduction in prices of
goods & services due
to elimination of
cascading
☠Uniform prices
throughout t
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Key Features:
â–¡ Concurrent jurisdiction for levy & collection of GST
by the Centre & the States – Article 246A
☠Centre to levy & collect IGST on supplies in the
course of inter-State trade or commerce including
imports Article 269A
–
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….FEATURES OF CAA……..
â– Key Features contd.
☠Compensation for loss of revenue to States for five years on
recommendation of GSTC – Clause 19
☠GST on petroleum crude, high speed diesel, motor spirit
(commonly known as petrol), natural gas & aviation turbine
fuel to be levied from a later date on recommendations of
GSTC
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..FEATURES OF CAA
Key Features contd.
☠GSTC – Article 279A
To be constituted by the President within 60 days from the
coming into force of the Constitution Amendment
Consists of Union FM & Union MOS (Rev)
Consists of Ministers in charge of Finance / Taxation of each
State
Chairperson – Union FM
Vice Chairperson – to be chosen amongst the Ministers of State
Gov
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s
Government may convert existing area based exemption
schemes into reimbursement based scheme
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✰ Decisions:
…GST COUNCIL….
☠To ensure single interface all administrative control
over
–
â– 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
â–¡ Same arrangement would be applicable for IGST Act
with few exceptions
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…GST COUNCIL
✰ Decisions:
â–¡ CGST, UTGST, IGST, SGST & GST Compensation Law
recommended
☠Formula for calculating compensation finalized
☠Tax rates
Four tax rates namely 5%, 12%, 18% and 28%
Some goods and services would be exempt
Separate tax rate for precious metals
Cess over the peak rate of 28% on specified luxury and demerit
goods
Rules on input
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al Government, at the rate to be prescribed
Maximum rate ring fenced in law
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….MAIN FEATURES OF LAW….
* Determination of nature of supply.
â–¡ Elaborate Rules provided for determining the place of
supply
–
Intra-State supply of goods or services where the location
of the supplier and the place of supply are in the same State
–
Inter-State supply of goods or services where the location
of the supplier and the place of supply are in different State
Liability to pay:
â–¡ Liability to pay tax arises only when the taxable person
crosses the exemption threshold
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….MAIN FEATURES OF LAW….
* Composition Scheme:
☠Provision for levy of tax on fixed rate on aggregate turnover
upto a prescribed limit in a financial year (Composition
scheme) without participation in ITC chain
Time & Value of supply:
☠Elaborate principles devised for determining the time of
supply of goods or services with following being crucial
determinants with certain excep
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ts
services and capital goods are partly used for business
and partly for non-business purposes
☠Proportionate credits allowed in case inputs, inputs
services and capital goods are used for taxable including
zero rated and exempt (including non-taxable) supplies
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…MAIN FEATURES OF LAW….
Input Tax Credit (ITC):
☠ITC cannot be availed after filing of return for the month
of September of next Financial Year or filing of Annual
Return
☠ITC available only on provisional basis for a period of
two months until payment of tax and filing of valid
return by the supplier
☠Matching of supplier's and recipient's invoice details
ITC to be confirmed only after matching of such
information
ITC to be reversed in case of mis-match
â–¡ Input Service Distributor mechanism for distribution of
ITC of input services
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…MAIN FEATURES OF LAW….
â– Registration.
☠PAN based Registration
required to be obtained for each State from where tax
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s, Casual
taxpayers, non-resident taxpayers, TDS Deductors,
Input service Distributors (ISDs) to file separate
electronic returns with different cut-off dates
Annual return to be filed by 31st December of the
following Financial Year along with a reconciliation
statement
Short-filed returns not to be treated as a valid return for
matching & allowing ITC and fund transfer between
Centre and States
GST practitioners scheme to assist taxpayers mainly in
filing of returns
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Ü€
…MAIN FEATURES OF LAW….
â– Payment:
System of electronic cash ledger and electronic ITC
ledger
Tax can be deposited by internet banking, NEFT / RTGS,
debit/credit card and Over The Counter
Date of credit to the Govt. account in the authorized
bank is the date of payment for credit in electronic cash
ledger
☠Payment of Tax is made by way of the debit in the
electronic cash or credit ledger
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…MAIN FEATURES OF LAW….
â– Payment:
Cross-utilization of ITC between CG
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n 7 days
â–¡ Tax refund will be directly credited to the bank account
of applicant
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….MAIN FEATURES OF LAW….
â– Assessment and Audit.
☠Self-assessment of tax
☠Provisions for assessment of non-filers, unregistered
persons & summary assessments in certain cases
☠Provision for provisional assessment on request of
taxable person – to be finalized in six months
☠Audit to be conducted at the place of business of the
taxable person or at the office of the tax authorities, after
prior intimation to taxable person
☠Audit to be completed within 3 months, extendable by a
further period of 6 months
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…MAIN FEATURES OF LAW….
â– Demand:
Adjudication order to be issued within 3/5 years of
filing of annual return in normal cases & fraud /
suppression cases respectively
SCNs to be issued at least 3 months and 6 months
prior to last date of passing adjudication order in
normal cases and in fraud cases respectively
Taxable pe
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lders
Central Government – 24.5%
EC and all States together – 24.5%
☠Financial Institutions – 51%
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….GSTN
To function as a Common Pass-through portal for
taxpayers-
☠submit registration application
☠file returns
☠make tax payments
To develop back end modules for 27 States (MODEL-II)
â– Infosys appointed as Managed Service Provider (MSP)
* Appointed 34 GST Suvidha Providers (GSPs)
to develop simple applications to be used by taxpayers for
interacting with GSTN
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ROLE OF CBEC
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ROLE OF CBEC
â– Prominent role as custodian of Centre's fiscal destiny in relation
to indirect taxes
â–Role in Policy making: Drafting of GST Law, Rules & Procedures
– CGST, UTGST & IGST Law
Assessment, Audit, Anti-evasion & enforcement under CGST &
IGST Law
* Levy & collection of Central Excise duty on products outside GST
– Five specified Petroleum Products & Tobacco
* Levy & collection of Customs duties
* Developing linkages of CBEC – GST
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