GST ââ¬â An Update (As on 1st July, 2019)
GST
Dated:- 3-7-2019
=============
Document 1
Pradhan Mantri
Kaushal Vikas Yojana
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Make
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GST
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Port-led
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GST-An Update
(As on 1st July, 2019)
GMS AND
al-ifa
GOVERNMENT OF
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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 GST and set
up a committee to design a
GST model for the country
2006
2000
Announcement by Union
Finance Minister, during budget
of 2006-07 that GST would
introduced from 1 April 2010
May 2017
GST Council
recommends
all the rules
All
except J&K
passed their
SGST ACT
States
30th June 2
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ional Perspective (1/2)
Article 366(12A)
Sl No Definition Article
1.
Goods
2.
Service
3.
State
Definition of GST
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“Goods and services taxâ⬠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]
ââ¬ÅGoods and Services tax” law while having unique principles, has significant elements of prior Central
and State laws; and is also inspired by VAT/GST legislation of EU, Australia, Malaysia etc. along with
International VAT/GST guidelines of OECD
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GST Law from a Constitutional Perspective (2/2)
â
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ertainment Tax (other than those
levied by local bodies)
Luxury Tax
Entry Tax (All forms)
Taxes on lottery, betting & gambling
Surcharges & Cesses
GST
+13 Cesses
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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
Central
Levies
Excise
Duty
Service
âðÃââ⬦
Entry Tax & Octroi
Entertainment Tax
Electricity Duty
Luxury Tax
VAT
State
Levies
GST
CGST
SGST/UTGST
IGST
GST Structure in India
Outside GST!
00
8
Alcohol for human
consumption
Power to tax remains with the
State
Five petroleum
products
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decide
any matter.
âââ¬â Till its 34th meeting, GST Council has taken 1064 decisions which include 219 decisions taken by
the GST Implementation Council (GIC).
âÅâââ¬Å
1006 decisions have been implemented and only a total of 58 decisions (of which 39 were
unique issues) were under implementation.
âÅâââ¬Å 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.
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Registration and Threshold (1/19)
âââ¬â Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of
services would be Rs. 20 lakhs and Rs. 10 lakhs (for States of Manipur, Mizoram, Nagaland and Tripura).
âââ¬â Threshold limits of aggregate turnover for exemption from registration and payment of GST for the suppliers
of goods wou
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istration, which were cancelled till 31.03.2019, has been allowed. The
application for revocation can be filed till 22.07.2019.
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Migration (2/19)
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âââ¬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.
âââ¬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 was extended till 31.03.2019.
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Composition Scheme (3/19)
Composition threshold limit increased to be Rs. 1.5 Crore.
Composition scheme shall not be available to inter-State suppliers and specified category of
manufacturers.
Compliance under Composition Scheme simplified – Taxpayers under Composition scheme have been
allowed to pay 'self-assessed
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uring the middle of a financial year has to
inform the government about his choice by filing FORM
GST CMP-02.
The GST Council in its 35th meeting held on 21.06.2019
decided that the last date for filing of intimation, in FORM
GST CMP-02, for availing the option of payment of tax
under notification No. 2/2019-Central Tax (Rate) dated
07.03.2019 is extended from 30.04.2019 to 31.07.2019.
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Tax Administration (4/19)
âââ¬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.
âââ¬â Powers under the IGST Act shall also be cross-empowered on the same basis as under
CGST and SGST Acts with few exceptions.
âââ¬â Po
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notification No. 11/2017- Central Tax
(Rate) dated 28.06.2017,
âÅâââ¬Å 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.
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Payment of Tax (6/19)
âââ¬â There shall be no requirement on payment of tax on advances received for supply of
goods by all taxpayers.
âââ¬â A Group of Ministers constituted for promoting digital payment has recommended to
allow cash back to an amount equal to 20% of GST paid or Rs. 100/-, w
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ally 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.
âââ¬â Completely electronic refund module has also
been finalized and will be deployed soon.
Export
(7/19)
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âââ¬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.
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Return and Late Fees (8/19)
âââ¬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.
âÅâââ¬Å Other taxpayers would have to file FORM GSTR-1 on a monthly basis.
âââ¬â On account of difficulties being faced by taxpa
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e 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.
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.
NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.
There shall be quarterly filing of return for the small taxpayers having turnover up to Rs. 5 Cr as an optional facility.
Quarterly return
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2019, the new return system (FORM GST ANX-1 & FORM GST ANX-2
only) to be available for trial for taxpayers. Taxpayers to continue to file FORM GSTR-1 & FORM GSTR-3B as
at present;
âÅâââ¬Å From October, 2019 onwards, FORM GST ANX-1 to be made compulsory. Large taxpayers (having aggregate
turnover of more than Rs. 5 crores in previous year) to file FORM GST ANX-1 on monthly basis whereas small
taxpayers to file first FORM GST ANX-1 for the quarter October, 2019 to December, 2019 in January, 2020;
âÅâââ¬Å For October and November, 2019, large taxpayers to continue to file FORM GSTR-3B on monthly basis and
will file first FORM GST RET-01 for December, 2019 in January, 2020. It may be noted that invoices etc. can be
uploaded in FORM GST ANX-1 on a continuous basis both by large and small taxpayers from October, 2019
onwards. FORM GST ANX-2 may be viewed simultaneously during this period but no action shall be allowed on
such FORM GST ANX-2;
âÅâââ¬Å From October, 2019, small taxp
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filing of
returns for two consecutive tax periods, be brought into effect from 21.08.2019.
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ITC
âââ¬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.
âââ¬â To provide sufficient time to the trade and
industry to furnish the declaration in FORM
GST ITC-04, relating to job work, the GST
Council in is 35th meeting held on 21.06.2019
extended the due date for furnishing the said
form for the period July, 2017 to June, 2019 till
31.08.2019.
TDS/TCS
(11/19)
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âââ¬âª TDS/TCS provisions implemented from
01.10.2018.
Further, to provide some more time to TDS
deductors to familiarize themselves with
the new system, last date for furnishing
return in FORM GSTR-7 for the months
of October, 2018 to December, 2018 and
January, 2019 extended up to 28.02.2019.
Exemption from TDS fo
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ransactions.
The Phase 1 is proposed to be voluntary and it
shall be rolled out from Jan, 2020.
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âââ¬ââ⬰
Real Estate (13/19)
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.
Conditions for new tax rate:
âÅâââ¬Å Input tax credit shall not b
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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 from 01.08.2019.
Kerala government has also decided to allow local bodies to collect entertainment tax on movie tickets up
to 10 per cent.
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Recent Law amendments w.e.f. 01.02.2019 (15/19)
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âââ¬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
âÅâââ¬Å Motor vehicles for transportation of persons having seating capacity of more than thirteen
(including driver), vessels and aircraft
âÅâââ¬Å
Services of general insurance, repair and maintenance in respect of motor vehicles, vessels
and aircraft on which credit is ava
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ion;
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.
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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 basis and this amount shall be adjusted against the amount finally
apportioned.
Fifty per cent. of such amount, as may be recommended by the Council, which remains
unutilized in th
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ernment for handling their refund related applications.
Rate of interest on delayed payments and delayed refund has been recommended.
âââ¬â Supply from GTA to unregistered persons has been exempted from tax.
âââ¬â Group of Ministers has been constituted to examine the GST Rate Structure on Lotteries.
âââ¬â Group of Ministers has been constituted to look into the issues being faced by MSMEs and to provide
solutions for the same.
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Other decisions (19/19)
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 schemes of Central or State governments may be continued by respective
government by way of reimbursement through budgetary route. The schemes, in the present form, would
not continue in GST.
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iers 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
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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
âÅâââ¬Å 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)
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Main Features of the GST Act (3/5)
Set of auto-populated Monthly returns and Annual Return
Composition taxpayers to file Quarterly returns
Automatic generation of returns
GST Practitioners for assisting filing of returns
GSTN and GST Suvid
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System of GST Compliance Rating
Anti-Profiteering provision
ââ¬â
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National Anti-Profiteering Authority (NAA) set up to examine the complaints of non-
passing the benefit of reduced tax incidence.
A three-tier structure adopted to investigate anti-profiteering complaints from consumers.
At the initial level are the state screening committees and a national standing committee to examine complaints.
These committees refer complaints to the Director General of Safeguards (DGAP), mandated to conduct a thorough
investigation by seeking information from the companies concerned.
The third and final level is the NAA, which examines the investigation report and hears the company and the
complainant before pronouncing a final decision.
36
Benefits of GST (1/2)
37
1
Reduction in Cascading of Taxes
2
Overall Reduction in Prices
3 Common National Market
4
Benefits to Small Taxpayers
5 Self-Regulating Tax System
6 Non-Intrusive Electronic Tax System
Decr
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idha Providers (GSPs)
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Goods and Service Tax Network (2/4)
GST Council in its 27th meeting held on 04.05.2018 has approved the change in
shareholding pattern of GSTN
Considering the nature of 'state' function' performed by GSTN, the GST Council felt
that GSTN be converted into a fully owned Government company
Accordingly, the GST Council approved acquisition 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
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Goods and Service Tax Network (3/4)
Harmonization of Business Processes and
Formats
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
â⬢
â⬢
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for administration of the CGST and IGST law
Assessment, Audit, Anti-evasion & enforcement under CGST, UTGST & IGST Law
Levy & collection of Central Excise duty on products outside GST – Petroleum Products
& Tobacco
Levy & collection of Customs duties
Developing linkages of CBIC – GST System with GSTN
Training of officials of 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
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GSTN Help Desk
Toll Free: 0124-4688999
Email: helpdesk@gst.gov.in
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GOVERNMENT OF
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