GST K. VAITHEESWARAN ADVOCATE & TAX CONSULTANT Mobile: 98400 -96876 E-mail : vaithilegal@yahoo. co. in / vaithilegal@gmail. com www. vaithilegal. com ‘VENKATAGIRI’ Flat No. 8/3 & 8/4, Ground Floor, No. 8 (Old No. 9), Sivaprakasam Street, T. Nagar, Chennai - 600 017, India Tel. : 044 + 2433 1029 / 4048 402, Front Wing, House of Lords, 15/16, St. Marks Road, Bengaluru – 560 001, India Tel : 080 22244854/ 41120804
MULTIPLE TAXES – CENTRAL GOVERNMENT Excise Duty Countervailing Duty Customs Duty of 4% under Section 3(5) of the Customs Tariff Service Tax Products specific cess (automobile / tractor / jute / sugar / tea / tobacco / paper / rubber / iron ore / cement ) Research and Development cess (upto 31. 03. 2017) National Contingent Calamity Duty Clean Energy Cess Swach Bharath Cess Krishi Kalyan Cess Infrastructure Cess on motor vehicles K. Vaitheeswaran - All Copyrights Reserved
MULTIPLE TAXES - STATE VAT Purchase tax CST by originating State Entry tax Octroi by Municipality Entertainment tax Luxury tax Stamp duty and Registration fee K. Vaitheeswaran - All Copyrights Reserved
IS INDIA A FREE MARKET ? VAT driven local purchases Cost driven CST purchases Duty burden on imports Complex State Laws Ever changing tax landscape Different decisions on the same issue Border controls
CASCADING EFFECT - CURRENT SCENARIO Excise duty charged by the manufacturer forms part of the price in the supply chain. Since the cenvat credit is linked with manufacture, the dealer cannot set off the excise duty against any other tax. CST purchases form part of cost as there is no VAT credit. VAT has a cascading effect since sale price includes excise, customs, CVD. K. Vaitheeswaran - All Copyrights Reserved
SERVICE TAX Vs. VAT Software Intellectual Property Rights Restaurants Works Contract AMC Contracts Goods Vs. Services K. Vaitheeswaran - All Copyrights Reserved
GST – THE STORY SO FAR Constitution 101 st Amendment Act. GST Council New system of indirect taxation moving away from Entries in the Union and State List. Major role to be played by the GST Council. CGST Act, 2017; IGST Act 2017; GST (Compensation to States) Act 2017; and Union Territory GST Act, 2017 passed by the Parliament and received the assent of the President on 12. 04. 2017. Taxation Laws Amendment Bill, 2017. SGST Act to be passed by 29 States and Rules issued. Some States have already passed SGST Act. IT infrastructure should be in place. 01. 07. 2017. Significance of 16. 09. 2017. K. Vaitheeswaran - All Copyrights Reserved
GST Path breaking tax reform Harmonization of taxes Elimination of tax as a cost Possible elimination of unwanted business structures Long way to go Too many compromises Complex legal structure Not a simple law Huge potential for conflict K. Vaitheeswaran - All Copyrights Reserved
RELEVANCE OF GST ? Both Government and industry are keen to implement GST. Governments are looking at increasing the tax base and tax collections through GST. State is looking at GST as a window for taxing services. Centre is looking at GST to go beyond the point of manufacture. Industry wants GST to eliminate the cascading effect of taxes. Industry considers GST as a path breaking tax reform in the field of indirect taxes. K. Vaitheeswaran - All Copyrights Reserved
WHAT IS GST ? Article 366(12 A) defines ‘goods and services tax’ to mean any tax on supply of goods, or services or both except taxes on the supply of alcoholic liquor for human consumption. GST is a tax on both goods and services across the supply chain. It is levied at every stage of supply. GST in the context of goods as a levy would commence from the manufacturer / producer / trader and will go through the entire supply chain. An effective and efficient GST system would provide for elimination of the cascading effect of taxes. The GST on inputs is generally available as a credit for set off against the GST on the output supply. K. Vaitheeswaran
GST IN INDIA CGST would be a levy by the Central Government through law made by the Parliament. SGST would be a levy by each State through law made by State Legislature. UTGST would be a levy on intra-State supply of goods or services or both. IGST would be a levy by the Centre through law made by the Parliament on the supply of any goods and / or services in the course of inter-State trade or commerce. IGST would also apply on a supply of goods and / or services in the course of import into the territory of India. GST Compensation Cess would be a levy by the Central Government on inter / intra-State supplies of goods or services or both.
EXPORTS Exports of goods and services would be zero rated. Section 16 of the IGST Act deals with ‘zero-rated supply’. Credit of input tax is available. Refund of credit for supply of goods or services or both under bond or letter of undertaking without payment of IGST. Payment of IGST on supply of goods and or services or both and claim of refund of IGST. Supply of goods and / or services to a SEZ developer or a SEZ unit is treated as zero-rated supply.
IGST – IMPORT SEGMENT Explanation to Article 269 A provides that supply of goods or of services or both in the course of import into the territory of India shall be deemed to be a supply of goods or services or both in the course of inter-State trade or commerce IGST on imports into India shall be levied and collected as per Section 3 of the Customs Tariff Act on the value determined under the said Act at the point when the duties of customs are levied on the said goods under Section 12 of the Customs Act. When goods are imported from abroad into India (say Mumbai Port), the importer apart from customs duty will now be required to pay IGST to the Centre. IGST shall be at such rate not exceeding 40% as may be notified by the Government. The IGST paid by the importer would qualify as credit Impact on make in India K. Vaitheeswaran - All Copyrights Reserved
IMPORTS Imports by traders are likely to increase. Whether trading would be easier compared to manufacture ? Availability of IGST credit as against CVD, SAD cost.
SERVICE SECTOR Currently, service tax is paid to the Centre at the rate of 14% with SBC of 0. 5% and KKC of 0. 5%. Currently, a Pan India Organization generally pays service tax at one location. New law makes a distinction between supply of services within a State and supply of services in the course of inter-State trade or commerce. Where a supply of services is within a State, the transaction would attract CGST and SGST. Where a supply of services takes place in the course of inter-State trade or commerce, it would attract IGST. Cost of providing services would go up. Disadvantage to an established existing player. Rate of tax would jump from 15% to say 18% or more. K. Vaitheeswaran - All Copyrights Reserved
IGST VS. CGST + SGST Where the location of a supplier and the place of supply are in different States, or in two different Union Territories or a State and a Union Territory, IGST is applicable. Where the location of the supplier and the place of supply are in the same State, CGST and SGST would be applicable. Where services are imported into the territory of India, IGST is applicable. Supply of Goods or Services or both to or by a SEZ developer or unit is treated as inter-State supply but zero rated.
SERVICE PROVIDERS – EXISTING SYSTEM License under - Customs Act / Multi Modal Transportation Act Single centralized service tax registration Two half-yearly returns Monthly payment of service tax to the Central Government No service tax on reimbursement where pure agency is established Settled billing pattern Audit by Central Government
SERVICE PROVIDERS UNDER GST REGIME Licensing under Customs Act to continue Registration under Multimodal Transportation Act to continue Customs duty, anti-dumping duty and safeguard duty would continue. CVD and SAD would become IGST. Both Centre and State will tax service providers. Items which are currently not liable to tax may become liable under GST. Multifold increase in compliance requirements
SERVICE PROVIDERS UNDER GST REGIME Where taxable supply is made in different States, registration required in each State. Every supplier will have to file details of outward supply online by the 10 th of the succeeding month. Every supplier will have to file details of inward supply online by the 15 th of the succeeding month. Matching has to take place to ensure that all the discrepancies are rectified. Monthly return has to be filed by the 20 th of the succeeding month. Annual Return to be filed on or before 31 st December following the end of Financial Year. From 2 service tax returns, service providers will have to go online 37 times in a year. In case TDS is applicable, another 12 times in a year. In case Input Service Distribution is applicable, another 12 times a year. 61 times online per State as against 2 online filings for the whole Country in a year.
AIR FREIGHT/ SEA FREIGHT – EXISTING SYSTEM In respect of export freight there is no service tax on the airline or the liner or the freight forwarder. Rule 10 of the Po. P Rules is linked with destination of the goods. Summons – Letters – Show Cause Notices – Orders – Predeposit. Litigation Freight forwarders also considered under Rule 10 by decisions as well as CBEC Circular dated 12. 08. 2016. In respect of import freight in the ocean segment, service tax was introduced from 01. 06. 2016 and scope expanded from 22. 01. 2017 and the levy altered from 22. 04. 2017. Freight forms part of customs value for the purpose of levy of customs duties.
PLACE OF SUPPLY OF SERVICES WHERE THE LOCATION OF THE SUPPLIER AND THE RECIPIENT OF SERVICES ARE IN INDIA – SECTION 12 PARTICULARS PLACE OF SUPPLY Place of supply of services by way of transportation of goods, including by mail or courier to, – (a)Registered person (b)Person other than a registered person Location of such person Location at which such goods are handed over for transportation Place of supply of services directly in relation to an immovable property, any services provided by way of grant of rights to use immovable property. Location of immovable property. If immovable property is located in more than one State, supply shall be treated as made in each of the States in proportion to the value of the services as per contract or as per reasonable basis as may be prescribed in the absence of contract.
PLACE OF SUPPLY OF SERVICES WHERE THE LOCATION OF THE SUPPLIER AND THE RECIPIENT OF SERVICES ARE IN INDIA – SECTION 12 PARTICULARS PLACEOF SUPPLY Services except services specified above provided to a registered person Location of such person Services except services specified above provided to a person other than registered person Location of the recipient if the address on record exists and the location of the supplier of services in other cases.
AIR FREIGHT/ SEA FREIGHT - GST Section 12 of IGST applicable when the location of supplier of service and the location of recipient of service is in India. Airline / Liner is a registered person in India Freight forwarder is a registered person in India Goods exported from India Services provided by airline to freight forwarder Services of freight forwarder to exporters In the light of Section 12, international air freight and sea freight is getting taxed under GST both in the hands of the airline / liner and the freight forwarder.
PLACE OF SUPPLY OF SERVICES WHERE THE LOCATION OF THE SUPPLIER OR THE RECIPIENT OF SERVICES ARE OUTSIDE INDIA – SECTION 13 PARTICULARS PLACE OF SUPPLY The place of supply of services of transportation of goods, other than by way of mail or courier Place of destination of the goods Place of supply of services directly in relation to an immovable property, any services provided by way of grant of rights to use immovable property. Location of immovable property. If immovable property is located in more than one State, supply shall be treated as made in each of the States in proportion to the value of the services as per contract or as per reasonable basis as may be prescribed in the absence of contract.
PLACE OF SUPPLY OF SERVICES WHERE THE LOCATION OF THE SUPPLIER ORTHE RECIPIENT OF SERVICES ARE OUTSIDE INDIA – SECTION 13 PARTICULARS Other services other than the services mentioned above PLACE OF SUPPLY Location of the service receiver Provided if the location of the service receiver is not available in the ordinary course of business the place of supply is the location of the service supplier
AIR FREIGHT / SEA FREIGHT Foreign buyer located outside India. Foreign buyer pays freight to freight forwarder located outside India or pays the airline / liner registered in India. Airline / liner as a service provider located in India. Recipient of service is the freight forwarder outside India or the buyer outside India. Section 13 of the IGST becomes applicable. Destination of goods is outside India. GST not applicable. Loss of business to Indian freight forwarders.
CONSOL MODEL Indian freight forwarder has a foreign counterpart. Indian exporter bills buyer on FOB basis. Foreign counterpart collects freight and other charges from buyer located outside India. Foreign counterpart pays the airline / carrier. Foreign counterpart deducts freight / charges / commission and remits the balance to the Indian freight forwarders accounts the transaction as freight. All adjustments through credit notes / debit notes. GST implications ? ? ?
MULTIPLE BUSINESS MODELS Airline / Liner – ABC – XYZ – Exporter Airline / Liner – ABC – Exporter Importer – ABC India – ABC US – Airline / Liner Importer – ABC India – ABC US – XYZ US – Airline / Liner Transportation and other services within India / air freight / transportation, warehousing and delivery services outside India – ABC India – Exporter. Payment by ABC India to third party service provider outside India. Sharing of revenue Sharing of margin Sharing of costs Multi-locations
PLACE OF SUPPLY If airline / liner is located in India and freight forwarder are both located in India, Section 12 of IGST would apply. Place of supply would be the location of the service receiver if he is a registered person. Place of supply would be the location of handing over of goods if the person is not a registered person. Airline would charge GST on ABC India would charge GST on XYZ India after availing credit. XYZ India would charge GST on the exporter after availing credit. Tax outflow goes up from zero to say 18% in the hands of the exporter. Exporters will have to claim refund. Huge impact on industry and exporters.
WHICH GST? Client in Mumbai engages ABC Freight Forwarders, Mumbai for picking up a consignment in Thane and for making it ready for export to UK. ABC engages a transporter in Thane to pick up the cargo. ABC engages a warehouse keeper in Thane for storing the cargo. ABC uses a CFS at Mumbai. ABC engages a customs broker for compliance and related services. ABC buys the air freight slot from British Airways. Goods move from Mumbai to UK.
WHICH GST? Since ABC is located in Maharashtra, British Airways will have to charge CGST + Maharashtra SGST if BA is located in Maharashtra. In case BA is located outside Maharashtra, BA would charge IGST. If transport attracts GST, transporter will charge CGST + Maharashtra SGST. Warehouse would charge CGST + Maharashtra SGST since immoveable property is located in Maharashtra. CFS would charge CGST + Maharashtra SGST. Customs broker in Mumbai would charge CGST + Maharashtra SGST. ABC can avail credit of IGST, CGST and SGST charged. ABC will have to charge CGST and SGST on the exporter. CGST can be set off against CGST. SGST can be set off against SGST. IGST can be set off against IGST / CGST / SGST in that order.
WHICH GST? Client in Delhi engages ABC Freight Forwarders, Mumbai for picking up a consignment in Chennai and for making it ready for export to UK. ABC engages a Chennai transporter to pick up the cargo. ABC engages a Chennai warehouse keeper for storing the cargo. ABC uses a CFS at Chennai. ABC engages a Chennai customs broker for compliance and related services. ABC buys the air freight slot from British Airways. Goods move from Chennai to UK. A senior executive from ABC Mumbai flies down to Chennai and stays in a hotel for a week to ensure that the transaction is completed.
WHICH GST? Since ABC is located in Maharashtra, British Airways will have to charge CGST + Maharashtra GST if the location of the supplier (BA) is in Maharashtra. If British Airways is located outside Maharashtra, BA would charge IGST. If transport attracts GST, transporter will charge IGST since transporter is located in Chennai and ABC is located in Maharashtra. Warehouse would charge CGST + Tamil Nadu GST since immoveable property is located in Tamil Nadu. CFS would charge CGST + Tamil Nadu GST if CFS is considered as immoveable property services. Customs broker in Chennai would charge IGST. Airlines in respect of air travel of the senior executive would charge CGST and Maharashtra GST. Hotel in Chennai would charge ABC Mumbai, CGST and Tamil Nadu GST. Since the client is located in Delhi and ABC is located in Maharashtra, ABC has to charge IGST on the client. CGST credit can be taken. IGST credit can be taken. ABC Mumbai does not have an office in Tamil Nadu. What happens to Tamil Nadu GST charged? ?
CONCEPT OF ISD “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office; ISD must obtain registration. If ABC Mumbai has an ISD location in Tamil Nadu, then the ISD office can transfer the CGST as CGST to ABC Mumbai. If ABC Mumbai has an ISD location in Tamil Nadu, then the ISD office can transfer the SGST as IGST to ABC Mumbai provided Tamil Nadu SGST law provides for this procedure.
IDEAL SCENARIO International transportation of goods should be zero rated. Ancillary transport services should be zero rated. Freight forwarders providing single supply should be zero rated. Transportation, freight forwarding and related services for export goods must not be taxed. India has adopted a model which taxes international freight whereas countries such as Singapore, Australia, Malaysia, New Zealand do not tax international freight. Representations.
COMPLIANCE XYZ is a freight forwarder based in Ahmedabad. Small office of 1 o 0 sq. ft. in Mumbai to handle Mumbai Port / Airport related cargo business. Export from Mumbai in respect of consignment lifted from Karnataka. No office in Karnataka. Similar small offices in Delhi and Hyderabad. Small offices have 1 operation executive and 1 marketing executive Separate registration, returns, compliance, accounting, filing, credit claims?
COMPLIANCE Where taxable supply is made in different States, registration required in each State. Outward supply filing by 10 th of the succeeding month Inward supply filing by the 15 th of the succeeding month Monthly return by the 20 th of the succeeding month Annual Return Monthly return for TDS Monthly return for ISD 61 filings per State.
COMPLIANCE Complex set of provisions. Issues with reference to multi-location clients. Issues with reference to specific services in a particular State. Issues with reference to registration in different States on account of SGST. Issues with reference to SGST law as applicable.
INPUT TAX CREDIT
INPUT Input means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business. Used or intended to be used K. Vaitheeswaran - All Copyrights Reserved
INPUT SERVICE Input service means any service used or intended to be used by a supplier in the course or furtherance of business.
INPUT TAX CREDIT SGST in a State can be used for payment of SGST Balance if any can be used for payment of IGST. CGST in a State can be used for payment of CGST in that State. Balance if any can be used for payment of IGST can be used for IGST / CGST / SGST in that order.
NON-AVAILABILITY OF ITC Input tax credit not available for various items Motor vehicles unless used for providing services of further supply of such vehicles or conveyances, transportation of passengers / goods or used for training for motor driving, flying, navigation F&B, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of taxable composite or mixed supply. Membership of club, health and fitness centre. Rent-a-cab, life insurance and health insurance except where Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force. Inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of taxable composite or mixed supply.
NON-AVAILABILITY OF ITC Input tax credit not available for various items Motor vehicles unless used for providing services of further supply of such vehicles or conveyances, transportation of passengers / goods or used for training for motor driving, flying, navigation F&B, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of taxable composite or mixed supply. Membership of club, health and fitness centre. Rent-a-cab, life insurance and health insurance except where Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force. Inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of taxable composite or mixed supply.
NON-AVAILABILITY OF ITC Works contract services when supplied for construction of immovable property, other than plant and machinery, except where it is an input service for further supply of works contract service; Goods or services received by a taxable person for construction of an immovable property on his own account other than plant and machinery, even when used in course or furtherance of business; ‘Plant and machinery’ means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes— (i) land, building or any other civil structures; (ii) Telecommunication towers; and (iii) Pipelines laid outside the factory premises. Compounding tax Goods or services or both received by a non-resident taxable person except on goods imported by him. Goods or services or both used for personal consumption. Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; Tax paid as per Section 74, Section 129 and Section 130. If depreciation has been claimed on tax component of capital goods Specified tax payments
INPUT TAX CREDIT Input Tax Credit contingent upon • Possession of tax invoice / debit note or such other prescribed document • Receipt of goods or services or both. • Tax charged in respect of supply and has been actually paid to the credit of the Government either in cash or through utilization of admissible input tax credit • Furnishing of return Where goods are received in lots or installments, credit entitlement only on receipt of the last lot or installment. If supplier bill is not settled within 180 days from the date of invoice, credit availed will become tax liability of the recipient with interest. K. Vaitheeswaran - All Copyrights Reserved
MATCH MAKING Details of inward supply furnished by a recipient shall be matched with the corresponding details of outward supply furnished by the supplier, in his valid return for the same tax period or any preceding tax period. Where the details match, subject to Section 16, credit would be finally accepted and the acceptance shall be communicated in the manner as may be prescribed to the recipient. Where the ITC claim is more than the tax declared by the supplier or the supply has not been declared in the return, discrepancy shall be communicated to both parties in the manner prescribed. Duplication of claims shall also be communicated. If discrepancy is not rectified by the supplier in his valid return for the month in which the discrepancy is communication, it shall be added to the output tax liability of the recipient in the succeeding month. Excess on account of duplication shall also become output tax liability of the recipient. Interest. K. Vaitheeswaran - All Copyrights Reserved
GST CREDITS SME Segment Government and statutory authority The input tax credit system contemplates massive data uploads that are correct using technology and that too on a frequent basis. Non-uploading of data by vendors and service providers. Wrong upload Data mismatch Non-filing of returns Belated returns Non-payment of tax
DIGITAL INDIA India seeks to implement through a massive technology network known as GSTN. The Central Government and the State Governments tax platforms would be integrated GSTN would be the portal through which the GST laws of India would be administered and implemented. All registrations will have to be through the GSTN portal and only electronic filing is allowed. All payments of tax is through the GSTN portal and only electronic payments are allowed. All details and returns have to be filed through the GSTN portal and only electronic filing is permissible All refund applications, acknowledgement and claims through GSTN portal and through electronic filing
DIGITAL INDIA Massive leap frog effort from traditional compliance to digital compliance Is India ready? Businesses comprise of multinationals, major corporate groups, major businesses and also traders, dealers, entrepreneurs, partnership firms, HUFs, service providers Businesses include jewellers, artisans, caterers, contractors, labourers, parlours, consultants, job workers, maintenance service providers, transporters, cargo handlers, warehouse keepers and a host of other businesses including MSMEs. These businesses and professionals Are not used to new technology; Do not operate on technology based environments; Have no idea as to the requirements of GST; Have no clue on the digital compliance requirements Do not have the human support infrastructure to implement a massive technology based compliance Have issues with availability of power and access to technology infrastructure Are not used to English language usage which would be the language of the system
TAX INVOICE – DETAILS – DRAFT INVOICE RULES Name, address and GSTIN of the supplier Consecutive serial numbers in one or multiple series containing alphabets/numerals / special characters hyphen or dash and slash symbolize as “ - ” and “ / ”unique for FY Date of its issue Name , address and GSTIN or UIN if registered of the recipient Name and address of the recipient and address of delivery, along with the name of State and its code, if such recipient is unregistered and the value of taxable supply is Rs. 50, 000/or more. HSN code of goods / Accounting codes for services Description of goods or services Quantity in case of goods or unit or unique quantity code Total value of supply of goods or services or both Taxable value of supply of goods or service or both (after discount and abatement if any) Rate of tax ( CGST, SGST, IGST, UTGST, Cess) Amount of tax charged (CGST, SGST, IGST, UTGST, Cess) Place of supply along with the name of State in case of a supply in the course of inter. State trade or commerce. Address of delivery ( if different from place of supply) Whether tax payable in case of reverse charge Signature or Digital Signature of the supplier or his authorized representative
GST - RETURNS – Sec. 37 -48 Return Description GSTR 1 A Furnishing details of Outward Supplies Amended Inward Supply details in GSTR 2 automatically available to Supplier GSTR 2 A Furnishing details of Inward Supplies Details of outward supply auto populated from GSTR 1 available to recipient in Part A GSTR 3 Monthly Returns GSTR 3 A Notice for non-filing of returns GSTR 6 A Furnishing of details by ISD Details of Inward Supply details automatically available to Recipient based on GSTR 1 filed by the Supplier. GSTR 7 Return by a person required to deduct TDS GSTR 7 A TDS Certificate
GST - RETURNS – Sec. 37 -48 Return Description ITC-1 Final Acceptance of ITC Claim PMT 3 E-Cash Ledger GSTR 9 Annual Return GSTR 9 B Annual Return to be filed by a person whose aggregate turnover during financial year exceeds 1 Crore rupees. GSTR 10 Final Return TRP 6 Authorisation given by RTP to TRP on the common portal
FILING OF RETURNS Returns shall be furnished electronically through Common portal either directly or from a Facilitation Centre notified by the Board or Commissioner. GST Suvidha Providers Multiple filings Possible 61 filings per State, taking into account outward supply filing, inward supply filing, monthly return, annual return, TDS Return and ISD return.
DUE DATES Return GSTR 1 Due Date for filing On or before 10 th day of succeeding tax period GSTR 1 A Auto Populated GSTR 2 On or before 15 th day of succeeding tax period GSTR 2 A Auto Populated GSTR 3 On or before 20 th day of succeeding tax period GSTR 4 Within 18 days after the end of that quarter GSTR 5 Within 20 days after the end of tax period or 7 days after the expiry of registration, whichever is earlier GSTR 6 Within 30 days after the end of such calendar month GSTR 7 Within 10 days after the end of such month wherein deduction was made - TDS GSTR 8 Within 10 days after the end of such month wherein deduction was made - E Commerce Operator GSTR 9 Annual Return – 31 st December of next fiscal year
KEY DOCUMENTS IN GST Invoices Tax Invoice containing all relevant particulars prescribed under GST Rules Bill of Supply (supply of exempted goods/services) Receipt Voucher (Advance payment) Supplementary Tax Invoice (revised invoice) Credit and Debit Notes ISD invoice/ISD Credit Note Delivery Challan
ELECTRONIC WAY BILL – DRAFT RULES Filing of E-waybill is mandated before the commencement of movement where the consignment value exceeds Rs. 50, 000. E-waybill to be generated through the common portal after furnishing information in prescribed form. Unique e-waybill number would be created E-waybill shall be valid only for a specified period based on the distance as tabulated. Details of e-waybills generated to be made available to the recipient if registered on the common portal who shall communicate his acceptance or rejection of the consignment covered by the e-waybill.
ELECTRONIC WAY BILL – DRAFT RULES If the recipient does not communicate his acceptance or rejection with 72 hours of the details being made available to him in the common portal, it shall be deemed that he has accepted the said details. Person incharge of the conveyance should carry invoice / bill of supply / delivery challan as the case may be and copy of ewaybill or e-waybill number either physically or mapped to RFID embedded onto the conveyance in the manner notified by the Commissioner or an officer empowered may authorise a proper officer to intercept any conveyance to verify the ewaybill or e-waybill number in physical form for all inter. State or intra-State movement.
OTHER ISSUES – NEW CONCEPTS Tax even on advances for supply of goods and input tax credit. Technology based environment. Reverse charge mechanism. Supply of goods or services by unregistered person to registered person. Reimbursement Rate of tax IGST on imports Valuation in respect of related party transactions. GST on inter-unit billing and valuation. TDS if notified. K. Vaitheeswaran - All Copyrights Reserved
LOGISTICS – THE OPPORTUNITY Inter-State movement of goods is likely to become free. Increase in supply of goods to the customer as against stock transfer. Massive changes in procurement pattern. Key role for warehouses since depots would come down. Key role for logistic solution providers
LOGISTICS – THE OPPORTUNITY Possibility of increase in import for some goods due to cost reduction on account of IGST credit availability. Increase in exports due to simplification of process and uniformity in procedures. Efficient refund system would improve the cash flow of exporters. Ability to change.
CRITICAL MATTERS IT packages and solutions Rate of tax Transition credit Vendor management Documents and process Industry preparedness Training Learning and unlearning K. Vaitheeswaran - All Copyrights Reserved
MINIMUM OF 37 ONLINE FILINGS PER STATE PER SUPPLIER
GST WILL BE VERY SIMPLE
GST WILL PROVIDE SEAMLESS CREDIT
GST IN INDIA
Migration Data Upload Registration Return Filing Access GST Payments
THANK YOU K. VAITHEESWARAN Advocate & Tax Consultant Mobile: 98400 -96876 E-mail : vaithilegal@yahoo. co. in vaithilegal@gmail. com
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