GST – an update as on 01-06-2019

GST – an update as on 01-06-2019
GST
Dated:- 7-6-2019

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Document 1
Pradhan Mantri
Kaushal Vikas Yojana,
(PMKVY)
GST
Start-Up
India
Port-led
Development
GST – An Update
(As on 1st June, 2019)
Make
in India
Digital
India
Pradhan Mantri
Mudra Yojana
(
PMMY
)
GST
NATION
TAX
MARKET
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भारत सरà¤â€¢Ã Â¤Â¾Ã Â¤Â°
GOVERNMENT
OF INDIA
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This presentation is for education purposes only and
holds no legal validity
The Journey to GST
In the year 2000, the then
Prime Minister introduced
the concept of G

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d to extend GST to J&K
True Economic Integration of India
01st February,
2019
Amendments to CGST, IGST,
UTGST and Compensation to
State Acts enacted
Notifying and amending
rules
Dealing with IT related
issues
Revision of Rates
Clarification and
communication with
taxpayers
GST Law from a Constitutional Perspective (1/2)
Article 366(12A)
Sl No Definition Article
1.
Goods
2.
Service
3.
State
Definition of GST
GST
INATION
TAX
MARKET
“Goods and services tax” means any tax on supply of goods, or services or
both except taxes on the supply of the alcoholic liquor for human
consumption
366(12)
366 (26A)
Definition
Includes all materials, commodities, and articles [Pre Existing Definition]
Anything other than goods [Introduced vide 101st Constitutional Amendment
Act]
366(26B) With reference to articles 246A, 268, 269,269A and Article 279A includes a
Union territory with Legislature. [Introduced vide 101st Constitutional
Amendment Act]
“Goods and S

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x Structure in India
Central Taxes
State Taxes
State VAT / Sales Tax
Central Excise duty
Additional duties of excise
under
Purchase Tax
Central Sales Tax
6
GST
INATION
TAX
MARKET
Excise duty levied
Medicinal & Toilet Preparation
Act
Additional duties of customs
(CVD & SAD)
Service Tax
Surcharges & Cesses
Entertainment Tax (other than those
levied by local bodies)
Luxury Tax
Entry Tax (All forms)
Taxes on lottery, betting & gambling
Surcharges & Cesses
GST
+13 Cesses
Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre
to tax sale of goods and States to tax provision of services)
Central Taxes
Tax
Administrations
CEX/ST Act & Rules
Procedures
Multiple State Taxes
Multiple State Tax
Administrations
Multiple Acts & Rules
Multiple procedures
Pre-GST Indirect tax structure in India
Single Tax-GST
Single Tax
Administration
Uniform law
Computerized
uniform procedures
Customs
Duty
Central
Sales Tax
Cen

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age and Centre – 1/3 weightage
Council to make recommendations on everything related to GST including laws,
rules and rates etc.
10
GST Council Decisions
GST
INATION
TAX
MARKET
=
11
GST
INATION
TAX
MARKET
Implementation status of GST Council Decisions
â–  The Council has met for 34 times and no occasion has arisen so far that required voting to decide any
matter.
Till its 34th meeting, GST Council has taken 1064 decisions which include 219 decisions taken by the
GST Implementation Council (GIC).
✓ 1006 decisions have been implemented and only a total of 58 decisions (of which 39 were unique
issues) were under implementation.
✓ In other words, 94.5% of the decisions of the GST Council have already been implemented, which is
a significant achievement given the complicated nature and wide area of subjects/issues involved and
the fact that all decisions were taken unanimously.
12
NATION
TAX
Registration and Threshold (1/19)
GST
MARKET
â– 

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n territory.
Mandatory registration is required for only those e-commerce operators who are required to collect tax at
source.
Registration to remain temporarily suspended while cancellation of registration is under process, so that the
taxpayer is relieved of continued compliance under the law.
â–  Revocation of cancellation of those registration, which were cancelled till 31.03.2019, has been allowed. The
application for revocation can be filed till 22.07.2019.
13
Migration (2/19)
GST
INATION
TAX
MARKET
â–  One more window for completion of migration process permitted. Due date for the taxpayers who
did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till
31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer was extended till
31.01.2019.
â–  Due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February,
2019/quarters July, 2017 to December, 2018 by such taxpayers wa

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e Annual Return with
quarterly payment of taxes (along with a simple declaration).
A Composition Scheme made available for Suppliers of Services (to those who are not eligible for the
presently available Composition Scheme) with a tax rate of 6% (3% CGST +3% SGST) having an
Annual Turnover in the preceding Financial Year up to Rs. 50 lakhs. They would be liable to file one
Annual Return with quarterly payment of taxes (along with a Simple declaration).
15
GST
INATION
TAX
MARKET
Tax Administration (4/19)
â–  In order to ensure single interface, all administrative control over 90% of taxpayers
having turnover below Rs. 1.5 crore would vest with State tax administration and over
10% with the Central tax administration. Further, all administrative control over
taxpayers having turnover above Rs.1.5 crore shall be divided equally in the ratio of
50% each for the Central and State tax administration.
â–  Powers under the IGST Act shall also be cross-empowered on the

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equired to be
purchased by a promoter for construction of a project as prescribed in notification No. 11/2017- Central Tax
(Rate) dated 28.06.2017,
✓ cement which constitute the shortfall from the minimum value of goods or services or both required to be
purchased by a promoter for construction of project as prescribed in notification No. 11/2017- Central Tax (Rate),
and
capital goods supplied to a promoter for construction of a project on which tax is payable or paid at the rate
prescribed in notification No. 11/2017- Central Tax (Rate).
Earlier, the reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-
section (4) of section 5 of the IGST Act, 2017 was kept under suspension till 30.09.2019.
17
INATION
TAX
Payment of Tax (6/19)
GST
MARKET
â–  There shall be no requirement on payment of tax on advances received for supply of
goods by all taxpayers.
â–  A Group of Ministers constituted for promoting digital payme

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upporting documents/invoices in
relation to a claim for refund in FORM GST
RFD-01A are being uploaded electronically on
the common portal at the time of filing of the
refund application itself, thereby obviating the
need for a taxpayer to physically visit a tax
office for submission of a refund application.
Completely electronic refund module has also
been finalized and will be deployed soon.
Export
GST
(7/19)
â–  E-Wallet Scheme shall be introduced for
exporters soon and till then relief for
exporters shall be given in form of broadly
existing practice.
Supply of services to qualify as exports,
even if payment is received in Indian
Rupees, where permitted by the RBI.
19
GST
INATION
TAX
Return and Late Fees (8/19)
MARKET
â–  All taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis.
Taxpayers with turnover up to Rs. 1.5 Cr are required to file information in FORM GSTR-1 on a
quarterly basis.
✓ Other taxpayers would have

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system has been finalized and the new system would be introduced in a phased manner.
â–  New return system is simple with two main annexures. One for reporting details of outward
supplies (FORM GST ANX-1) and one for availing input tax credit (FORM GST ANX-2)
based on invoices, etc. uploaded by the supplier.
â–  Invoices can be uploaded continuously by the supplier and can be continuously viewed and
accepted by the recipient for availing input tax credit. This process would ensure that very large
part of the return is auto-populated based on the invoices uploaded by the buyer and the
supplier. Simply put, the process would be “UPLOAD – LOCK-PAY” for most tax payers.
Taxpayers would have the facility to create his profile based on nature of supplies made and
received. The information which a taxpayer would be shown and would be required to fill in the
return would depend on his profile.
NATION
TAX
New Return System (Contd.)
GST
MARKET
â–ª NIL return filers (n

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-way (electronic way) bill is a monumental shift from the earlier
“Departmental Policing Model” to a “Self-Declaration Model”.
â–  New provisions in the e-way bill system have been introduced such as the auto calculation of
distance based on PIN codes for the generation of e-way bill and blocking the generation of
multiple e-way bills on one invoice.
â–  The generation of e-way bill would be barred if a supplier or recipient does not file GST returns
for 2 consecutive tax periods. This will be made applicable from 21.06.2019.
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ITC
TDS/TCS
(11/19)
GST
INATION
TAX
MARKET
â–  ITC in relation to invoices issued by the
supplier during FY 2017-18 may be
availed by the recipient till the due date for
furnishing of FORM GSTR-3B for the
month of March, 2019, subject to specified
conditions.
â–  Due date for submitting FORM GST ITC-
04 for the period July 2017 to March 2019
was extended till 30.06.2019.
â–ª TDS/TCS
provisions implement

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tute of Public Finance and
Planning), who would study and share the findings with GoM. The GoM in turn would
give its recommendation to the GST Council.
24
14
NATION
TAX
GST
â—‰
25
Real Estate (13/19)
MARKET
GST shall be levied at effective rate of 5% on residential properties outside affordable segment and 1% on affordable housing
properties.
Definition of affordable housing: A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and
60 sqm
in metropolitan cities having value up to Rs. 45 lakhs (both for metropolitan and non-metropolitan cities). Metropolitan
Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad),
Hyderabad, Kolkata and Mumbai (whole of MMR).
GST exemption on TDR/ JDA, long term lease (premium), FSI: Intermediate tax on development right, such as TDR, JDA,
lease (premium), FSI shall be exempted only for such residential property on which GST is payable.

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01.2019 approved levy of Cess on Intra-State Supply of
Goods and Services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2
years.
Kerala Government has, accordingly, decided to levy one per cent. 'Kerala Flood Cess' on value of intra-
state supply of goods by taxable person to an unregistered person in respect of supplies specified in
TABLE under sub-clause (2) of clause 14 of the Kerala Finance Bill, 2019.
The said flood cess shall be levied 01.07.2019.
Kerala government has also decided to allow local bodies to collect entertainment tax on movie tickets up
to 10 per cent.
27
Recent Law amendments w.e.f. 01.02.2019 (15/19)
GST
INATION
TAX
MARKET
â–  Scope of input tax credit has been widened, and it would now be made available in respect of
the following:
Most of the activities or transactions specified in Schedule III
✓ Motor vehicles for transportation of persons having seating capacity of more than thirteen
(including d

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erritory to another place in the non-
taxable territory without such goods entering into India;
Supply of warehoused goods to any person before clearance for home consumption;
Supply of goods in case of high sea sales.
Registered persons may issue consolidated credit/debit notes in respect of multiple invoices
issued in a Financial Year.
Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the
Appellate Tribunal capped at Rs. 25 Cr and Rs. 50 Cr respectively.
Recovery can be made from distinct persons, even if present in different State/Union territories.
29
INATION
TAX
GST
MARKET
Recent Law amendments w.e.f. 01.02.2019 (Contd.) (17/19)
Amount of IGST not apportioned to the Centre or the States/UTs may, for the time being, on the
recommendations of the Council, be apportioned at the rate of fifty per cent. to the Central
Government and fifty per cent. to the State Governments or the Union territories, as the case
may be, on ad-hoc basi

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50% of the GST paid will be refunded to CSD (Defense Canteens).
GST
MARKET
Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central
Government for handling their refund related applications.
Rate of interest on delayed payments and delayed refund has been recommended.
â–  Supply from GTA to unregistered persons has been exempted from tax.
âËœ
Group of Ministers has been constituted to examine the GST Rate Structure on Lotteries.
â–  Group of Ministers has been constituted to look into the issues being faced by MSMEs and to provide
solutions for the same.
31
INATION
TAX
Other decisions (19/19)
GST
MARKET
In principle approval has been given for creation of a Centralized Appellate Authority for Advance Ruling
(AAAR) to deal with cases of conflicting decisions by two or more State Appellate Advance Ruling
Authorities on the same issue. This would be implemented once the law is amended.
Existing tax incentive sche

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anipur, Mizoram, Nagaland and Tripura).
Registration mandatory for suppliers of goods only if the turnover exceeds Rs.40 lakhs (Rs.20
lakhs in case of States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland,
Puducherry, Sikkim, Telangana, Tripura and Uttarakhand)
Main Features of the GST Act (2/5)
Option of Voluntary Registration
GST
INATION
TAX
MARKET
Composition threshold shall be Rs. 150 lakhs, special category States of Arunachal
Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand
have the said limit as Rs. 75 lakhs
✓ Composition scheme shall not be available to inter-State suppliers, and specified
category of manufacturers
Deemed Registration in three working days
Input Tax Credit available on taxes paid on all procurements (except few specified
items)
33
INATION
GST
TAX
MARKET
Main Features of the GST Act (3/5)
Set of auto-populated Monthly returns and Annual Return
Composition taxpayers to file Quarterly retur

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transitional provisions for smooth transition of existing tax payers to
GST regime
Special procedures for job work
36
System of GST Compliance Rating
Anti-Profiteering provision – National Anti-Profiteering Authority already set up
–
✓ Standing Committee on Anti-Profiteering already set up
✓ State level Screening Committee already set up
Benefits of GST (1/2)
37
Reduction in Cascading of Taxes
1
2
Overall Reduction in Prices
Decrease in
Inflation
3 Common National Market
4
Benefits to Small Taxpayers
5 Self-Regulating Tax System
6 Non-Intrusive Electronic Tax System
Ease of Doing
Business
Decrease in “Black”
Transactions
GST
INATION
TAX
MARKET
Benefits of GST (2/2)
7 Simplified Tax Regime
8 Reduction in Multiplicity of Taxes
More informed
consumer
38
9 Consumption Based Tax
Abolition of CST
10
Poorer States
to Gain
11 Exports to be Zero Rated
12 Protection of Domestic Ind. – IGST
Make in India
GST
INATION
TAX

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ition of entire 51 per cent of equity
held by non-Governmental institutions in GSTN amounting to Rs. 5.1 Cr, equally by
the Centre and the State Governments
40
40
Goods and Service Tax Network (3/4)
Harmonization of Business Processes and
Formats
GST
INATION
TAX
MARKET
Autonomy of back-end systems of States
and Centre
Common & Shared
IT Infrastructure
Core Services
–
Registration
–
Returns
Payments
Helpdesk support
Information on Inter-State supply and cross-
credit utilization
Analytics
IGST Settlement
Front-end
Non-Statutory Functions
IT
Interfaces
Statutory Functions
Centre/States
Tax IT Systems
•
Approval of Registration
•
•
•
•
•
Assessment
Refunds
Audit and Enforcement
Adjudication
Internal workflows to support above
functions
Recovery
Analytics and BI
Back-end
Goods and Service Tax Network (4/4)
Taxpayer
Offline Utility Taxpayer
Taxpayer
Taxpayer
Desktop
Mobile
Browser
Desktop Browser

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both Centre & States
Outreach programs for Trade and Industry
Director General of Anti- Profiteering, CBIC has been mandated to conduct detailed
enquiry on anti-profiteering cases
44
Pradhan Mantri
Kaushal Vikas Yojana,
(PMKVY)
GST
Start-Up
India
www.cbic.gov.in led
www.cbic-gst.gov.inent
CBIC Help Desk
Toll Free: 1800 1200 232
Email: cbecmitra.helpdesk@icegate.gov.in
Make
in India
GST
NATION
TAX
MARKET
Digital
India
Pradhan Mantri
Mudra Yojana
(
PMMY
)
GSTN Help Desk
Toll Free: 0124-4688999
Email: helpdesk@gst.gov.in
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COP
सत्यमà¥â€¡Ã Â¤Âµ à¤Å“यतà¥â€¡
भारत सरà¤â€¢Ã Â¤Â¾Ã Â¤Â°
GOVERNMENT
OF INDIA
• शुल्à¤â€¢
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