Goods and Service Tax in
India
This is the year our
Indian Government will be introduced GST and replaced with Central Taxes like
Central Excise, Service Tax, CVD, SAD and State Taxes like VAT, CST, Entry Tax,
Luxury Tax. Customs is outside GST and hence Basic Customs Duty would continue
on imports.
The GST is a Value
added Tax (VAT) is proposed to be a widespread indirect tax levy on
manufacture, sale and consumption of goods as well as services at the national
level. It will be replaced all indirect taxes on goods and services by the
Indian Central and State Governments.
It is on the basis of “Destination principle.”
GST is -
v
Applied on goods and services at
the place where final/actual consumption occurred.
v
Collected on value-added goods and services at
each stage of sale or purchase in the supply chain
Once you have registered for GST, you must charge GST on your supplies at the prevailing
rate. This GST that is charged and collected is known
as output tax. Output tax must be paid to IRAS. The GST that you incur on business purchases
and expenses (including import of goods) is known as input tax.
When we get registration from the government concern
department, the tax payer will be allotted a state wise PAN based 15 digit
Goods and/or Services Taxpayer unique Identification Number (GSTIN). The digits
in the GSTIN will denote the following: -
|
State
Code
|
PAN
|
Entity
Code
|
Blank
|
Check
Digit
|
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
11
|
12
|
13
|
14
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Multiple Registrations within the same state
The GST regime allows multiple registrations
within a State for business verticals of a taxable person as on OPTION. This
provision has been made available subject to
the following specific stipulations;
·
ITC across the business verticals of such
taxable persons shall not be allowed unless the goods and / or services are
actually supplied across the verticals..
·
For the purpose of recovery of dues, all
business verticals, though separately registered, will be considered as a
single legal entity.
Invoice template for Goods and Services under Present Vs GST
Law
Goods:
|
Invoice - Intra State Under
present Law
|
|
Particulars
|
Amount
|
|
Value of Supply of Goods
|
100000.00
|
|
Add : Excise (Say) @ 15%
|
15000.00
|
|
Sub Total
|
115000.00
|
|
Add : VAT (say) @ 15% [ Caution :
Cascading Effect]
|
17250.00
|
|
Total Invoice Value
|
132250.00
|
|
Invoice - Intra State Under
GST Law
|
|
Particulars
|
Amount
|
|
Value of Supply of Goods
|
100000.00
|
|
Add : CGST (Say) @ 15%
|
15000.00
|
|
Add : SGST (Say) @ 15%
|
15000.00
|
|
Total Invoice Value
|
130000.00
|
|
Invoice - Inter State Under
GST Law
|
|
Particulars
|
Amount
|
|
Value of Supply of Goods
|
100000.00
|
|
Add : IGST (Say) @ 30%
|
15000.00
|
|
Total Invoice Value
|
130000.00
|
Services: -
|
Invoice - Intra State Under
present Law
|
|
Particulars
|
Amount
|
|
Value of Supply of Services
|
100000.00
|
|
Add : Service Tax(Say) @ 15%
|
15000.00
|
|
Total
|
115000.00
|
|
|
|
Invoice - Intra State Under
GST Law
|
|
Particulars
|
Amount
|
|
Value of Supply of Services
|
100000.00
|
|
Add : CGST (Say) @ 8%
|
8000.00
|
|
Add : SGST (Say) @ 7%
|
7000.00
|
|
Total Invoice Value
|
115000.00
|
|
|
|
Invoice - Inter State Under
GST Law
|
|
Particulars
|
Amount
|
|
Value of Supply of Services
|
100000.00
|
|
Add : IGST (Say) @ 15%
|
15000.00
|
|
Total Invoice Value
|
115000.00
|
The Electronic Cash Ledger
Deposit of Interest,
Tax, Penalty, Fee or any other amount by a taxable person can be made by the
following modes : -
- ·
Internet Banking
- ·
Credit / Debit Cards
- ·
National Electronic Funds Transfer – NEFT
- ·
Real Time Gross Settlement – RTGS
- ·
Any other mode as may be prescribed – (Challan
payment in Banks)
GST Online Return Filing
Forms in India from GSTR – 1 to 8
|
GST Tax Payer @ Normal Rates
|
|
GSTR 1
|
Outward Supply
|
10th of Next Month
|
|
GSTR 2
|
Inward Supply
|
15th of Next Month
|
|
GSTR 3
|
Monthly Return
|
20th of Next Month
|
|
GSTR 8
|
Annual Return
|
31st December of Next FY
|
|
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GST Tax Payer @ Compounding Rates
|
|
GSTR 4
|
Quarterly Return
|
18th of Next Month to Quarter
|
|
GSTR 8
|
Inward Supply
|
31st December of Next FY
|
Utilisation of ITC &
Cross Utilisation
|
Input Tax
|
Output Tax (in the order of
presence)
|
|
IGST
|
IGST
|
|
CGST
|
|
SGST
|
|
CGST
|
CGST
|
|
IGST
|
|
SGST
|
SGST
|
|
IGST
|
Exemption limit for Small
Scale Business under Goods and Service Tax (GST)
The Goods and Service
Tax (GST) council has decided that business in the North-Eastern and hill
states with annual turnover below Rs.10 Lakhs would be out of the GST net,
while the threshold for the exemption in the rest of India would be an annual
turnover of Rs.20 Lakhs.
The following persons
shall have to register irrespective of the turnover
- Ø Person
making any inter-state taxable supply (i.e. selling outside the state)
- Ø Casual
Taxable person
- Ø Person
who require to pay under Reverse Charge
- Ø Non-resident
taxable person
- Ø A person required to deduct tax ( Eg.
E-commerce business – marketplace).
- Ø The
person supplying goods or services or both as an agent of any other person.
- Ø Input
service distributor
- Ø A
person who supplies goods or services through e-commerce
- Ø Every e-commerce
operator
- Ø An
aggregator who supplies services under his brand name
GST impact / benefit to
the consumer
- All
taxes will be collected at the time of consumption. If the goods is taxed at
30%, it will include both Central and State Government taxes. Our government is
determined transparency in all taxation to the tax payer.
- The
consumer will not end up paying “tax on tax” which is goods while moving from
one state to another.
