A

Synopsis

on

“Comprehensive Analysis on GST”

With reference to

“M.A Raheem & Associates”

Submitted in partial fulfillment of the requirement for the

award of the Degree of

“Master of Business Administration”

By

IMROZ
Roll No: 1251-19-672-012

Under the Guidance of

WESLEY PG COLLEGE
(Affiliated to Osmania University)
Secunderabad
2019-2021
 INTRODUCTION

The implementation of the Goods and Services Tax (GST) in

India was a historical move, as it marked a significant indirect
tax reform in the country. The amalgamation of a large
number of taxes (levied at a central and state level) into a
single tax is expected to have big advantages.One of the most
important benefit of the move is the mitigation of double
taxation or the elimination of the cascading effect of taxation.
The initiative is now paving the way for a common national
market. Indian goods are also expected to be more
competitive in international and domestic markets post GST
implementation.
Goods and Services Tax (GST) is an indirect
tax (or consumption tax) used in India on the supply of goods
and services. It is a comprehensive, multistage, destination-
based tax: comprehensive because it has subsumed almost all
the indirect taxes except a few state taxes. Multi-staged as it
is, the GST is imposed at every step in the production process,
but is meant to be refunded to all parties in the various stages
of production other than the final consumer and as a
destination-based tax, it is collected from point of
consumption and not point of origin like previous taxes
 NEED OF GST

The point about indirect taxes is that there tends to be a

bewildering array of them. They tend to ‘cascade’, with taxes
levied on several inputs (good or service) that have already
been taxed, along with inputs to those inputs.
The one nation, one tax system aims to improve India's
competitiveness in global markets. GST will ensure minimal
cascading of taxes and thus, an anti-inflationary approach.

OBJECTIVE OF STUDY
➢ To study and understand the act in detail to come up with
all possible corrections or improvements wherever
necessary for the best compliance of tax payer and
betterment of the government.
➢ To study and understand the cascading effect of taxes,
GST allows set-off of prior taxes for the same
transactions as input tax credit.
➢To understand and analyze the Returns to be filed
periodically and the reasons impact of increased number
of returns filed
SCOPE OF THE STUDY
IT COVERS the two Parliamentary Acts – the IGST
(Integrated Goods and Services Tax) Act and the CGST
(Central Goods and Services Tax) Act which were passed in
April 2017. The Central GST Act and Integrated GST Act
contain the very law that has made GST a reality in India.

RESEARCH METHODOLOGY
Research methodology is the specific procedures or
techniques used to identify, select, process, and analyze
information about a topic. In a research paper,
the methodology section allows the reader to critically
evaluate a study's overall validity and reliability.

Sources of Data:
Data is mainly Secondary in nature.
The following are the sources of secondary data
Data collected is mainly from
➢ CGST,IGST ACTS of the government of india
➢ Secondary data from Websites
➢ Newspapers & Notifications
➢ Circulars of government

Sample size:
Data is taken into account since the inception of GST law.
Statistical tools used:
The study is descriptive in Nature.
 CHAPTER-II

REVIEW OF LITERATURE
Review Literature:
• In study of GST studied in India: A Big Leap in the Indirect Taxation System discussed by Vasantha gopal
(2011),

the article focused on the impact of GST on various sectors of the economy. The article further stated that
GST is a big leap and a new impetus to India’s economic change. The paper is concluded positive impacts on
different sectors are dependent on a unbiased and normal design of the GST.

• In the article of Pinki, Supriya Kamma and Richa Verma (June 2017)

studied, “Study on Impact of goods and services tax implementation in India” focused on goods and services
tax implementation in India which is necessity to understand it as a system as well as a process. They
concluded that the organizations as well as the consumers, by embracing the new tax reformation, may help
the government to accelerate the growth of the Indian economy

• Jaiprakash ( 2014) has mentioned in his about the GST at both of Central and the State level which are
expected to give more relief to industry, trade, agriculture and consumers through a more full and wider
exposure of input tax set-off and service tax setoff, subsuming of several taxes in the GST and phasing out of
CST. The best option is offered to us by GST to extened our tax base and we should take advantage of this
opportunities to introduce it when the situation are quite favorable and economy is adoring steady growth with
only slight inflation.

•Halakhandi, (2007)

GST was supposed to be introduced in India way back in 2010. It has been getting postponed due to various
reasons major one being getting to a consensus between the various states and the centre for compensation.
The author in the paper has discussed the existing laws in India for indirect taxes, the VAT laws in various
states with their advantages and disadvantages, the impact of the proposed GST, the compliances under the
proposed GST etc. The author has also used various numerical examples to demonstrate how GST is cost
effective.
 CHAPTER III

COMPANY PROFILE
NAZEERUDEEN & CO:

A Consulting firm with services to the clients in the areas of

• GST
• INCOME TAX
• AUDITS
• ROC etc

Chartered Accountant Firm

• No.of Partners in Charted Account Firm : 4 Partners

• Charted Account Firm Year of Establishment : 2015
• Status :Partnership Firm
• Charted Account Firm Name : NAZEERUDEEN AND CO CHARTERED ACCOUNTANTS

About CA Firm
CA Firm which has 4 branches in AP with 5 Partners and total 20 staff members

Contact :

• NAZEERUDEEN AND CO CHARTERED ACCOUNTANTS

• 5th Floor,D No 3-6-365,Liberty plaza,Opp Stanza Show Room,Himayat Nagar,Hyderabad

Himayathnagar, Hyderabad, Andhra Pradesh, India

• fca.nazeer@gmail.com
• 9949922234,
 CHAPTER IV

THEORETICAL FRAMEWORK
Working with Nazzerudeen & Co helped in practical understanding of:

CHARGE OF GST
 To pave way for the introduction of GST, 101st Constitutional Amendment Act was passed.

What tax Relevant

Meaning Extent
is levied? sections

Section 9 (of
CGST Extends to the whole of
CGST Act,
India (including J&K)
2017)

SGST: Extends to
respective state/UT with
SGST
Intra-state supply

- state legislature (Delhi &

Location of the supplier and Puducherry)
the place of supply of OR
goods/services are in the UTGST: Extends to the
same state/UT UTs of –
1. The Andaman &
Nicobar Islands
UTGST
- 2. Lakshadweep
3. Dadra & Nagar
Haveli
4. Daman and Diu
5. Chandigarh
6. Other territory

Location of the supplier and

Inter-state

the place of supply of

supply

Section 5 (of Extends to the whole of

goods/services are in (i) 2 IGST
IGST Act, 2017) India (including J&K)
different states/UTs or (ii) a
state and a UT
 Section 2(56): INDIA means -
1. Territory of India as referred to in article 1 of the constitution

2. Its territorial waters, seabed and sub-soil underlying such waters, continental shelf, Exclusive Economic
Zone or any other maritime zone (as referred to in the Territorial waters, continental shelf, Exclusive
Economic Zone or any other maritime zones Act, 1976)

3. The airspace above its territory and territorial waters

SECTION 9 (of CGST Act) SECTION 5 (of IGST Act)

What tax? CGST IGST

Inter-state/Intra-state? Intra-state Inter-state

Value for levy: Transaction

value under
Rates presently notified
CGST/ IGST is not levied on
Section 15 (of CGST Act) Section 15 (of CGST Act)
0%, 0.125%, 1.5%, 2.5%, 6%, 9%
-
and 14%
Petroleum Crude, High Speed Diesel, Motor Spirit (Petrol),
Natural Gas, and Aviation Turbine Fuel.
 INPUT TAX CREDIT

Utilisation of ITC
SGST/UTGST
IGST liability CGST liability
ITC of IGST liability
Step-1
used for… 2nd to these in any order & any
1st utilised to this
proportion
Step-2 Entire IGST credit shall be utilised in full.
[condition]

SGST/UTGST
IGST liability CGST liability
liability
ITC of CGST 2nd to this
Step-3
used for… [entire IGST credit
should be used before 1st utilised to this 
using CGST credit for
this]
SGST/UTGST
IGST liability CGST liability
ITC of liability
Step-4 SGST/UTGST 2nd to this
[only after the ITC of
used for…  1st utilised to this
CGST has been used
fully]
 Eligibility and conditions for taking ITC
1 Registration [under GST] is mandatory.
Eligibility

2 Goods/services [on which ITC is to be availed] shall be used/intended to be used in

the business. → Tax paid on goods/services used/intended to be used for non-business
purposes cannot be availed.
1 Possession of tax paying documents:
i. Invoice [issued by supplier]
ii. Invoice issued by recipient → receiving goods/services from unregistered
supplier + along with proof of payment of tax, [in case of reverse charge] →
issued u/s 31(3)(f).
Conditions

iii. Debit note [issued by supplier]

iv. Bill of entry/other document [prescribed under customs act]
v. Revised invoice
vi. Document issued by ISD
Such document should contain at least the following details:
i. Description [of goods/services].
These details
ii. Total value [of goods/services].
must be
iii. Amount of tax charged.
furnished in
iv. GSTIN of supplier & recipient.
GSTR 2.
v. Place of supply [in case of inter-state supply].
Original copy may be preferably kept for record to support credit entry.
Tax paid in pursuance of any order where any demand has been confirmed on account
Conditions

of any fraud, wilful misstatement, or suppression of facts cannot be availed as ITC.

2 Goods/services must have been received by the person claiming ITC.
i. Bill to ship to model – in this case it is deemed that the reg person has received
goods. → so, he can take ITC [even though he has not received goods].
ii. If services are provided to a third party on the direction of the reg person then
→ such reg person is entitled to avail ITC [because it is deemed that such reg
person has received such service].
3 Tax on goods/services [on which ITC is being taken] should actually have been paid
to the government by cash/using ITC.
4 Reg person must have filed his return u/s 39.
 RETURNS

A statement of information (facts) furnished by the taxpayer, to tax

Means? administrators, at regular intervals.
What → Details pertaining to the nature of activities/business operations
information [forming subject matter of taxation].
is to be → Sale price, turnover, or value, etc. [these are measure of taxation]
furnished in → Deduction & exemptions.
such return? → Determination & discharge of tax liability.
1. Mode of transfer of information [to tax administration].
2. Compliance verification program [of tax administration].
What purposes
3. Finalization of the tax liabilities of the taxpayer within stipulated
does the
period of limitation.
returns
4. Providing necessary inputs for taking policy decisions.
serve?
5. Management of audit and anti-evasion programs [of tax
administration].
→ Returns are required to be furnished in specific statutory format.
RETURNS

How returns
→ So, they are designed to take care of all the provisions of law that
help in better
have a bearing on computation of tax liability.
understandin
g of the tax → Hence, study of various fields contained in the form of return vis-
law à-vis the relevant corresponding provisions of law, can facilitate
overall understanding of the tax law in a better manner.
 A taxpayer is required to estimate his tax liability on ‘self-
assessment basis & deposit tax amount along with return.
Reason - 1

 So, the return constitutes a kind of working sheet/supporting

document [for the tax authorities] that can be relied upon as
Why correct the basis of which the tax has been computed by the
& timely taxpayer.
filing ✓ Filing of returns not only determines the tax liability of
return is person filing return, but also has a huge bearing on the
imp?
Reason – 2

determination of tax liability of other persons with whom

the former [person filing such return] has entered into taxable
activities.
 Chapter IX [of CGST Act] → contains the provisions relating to filing of return
Section No. ?
37 Furnishing details of outward supplies

38 Furnishing details of inward supplies

39 Furnishing of returns

40 First return

41 Claim of ITC & provisional acceptance thereof

42 Matching, reversal and re-claim of ITC

43 Matching, reversal and re-claim of reduction in output tax liability

44 Annual Return

45 Final Return
46 Notice to return defaulters

47 Levy of late fee

48 GST Practitioners
Chapter VIII [of CGST Rules] → The provisions relating to form and manner, in which
information is to be furnished through returns.
State GST laws → also prescribes identical provisions in relation to filing of returns.
IGST Act → Provisions of returns, other than late fee, under CGST Act have also been made
applicable to IGST Act [vide section 20 of IGST Act].

 Offline utilities will be provided by GSTN [Goods & Services Tax Network]

Used for preparing statements offline after downloading the auto

populated details and uploading them on the common portal.

Has developed an ecosystem of GST Suvidha Providers [GSP] → This

[GSP] will integrate with the common portal.

 An ecosystem of “third-party” “service” providers having “access” to GST system,

who can help taxpayers in GST compliance.
 GSP will develop applications –
o For return filing &
o For reconciliation of purchase register data with auto-populated data for
acceptance/rejection/modification.
o Will develop dashboards for tax payers for quick monitoring.

 Details [furnished in returns] will be consolidated & stored at common portal → this [stored
details] will be common for both CG & SGs.

Furnishing the details of outward supplies [Section 37 + Rule 59]

1 Form [outward
GSTR-1
supplies]
 Who will file ✓ Every registered person.
2
GSTR-1? ✓ Casual Taxable Person [also].
 Input service distributor.
 NRTP.
 Person paying tax under composition scheme.
Who are not  Person deducting Tax at source.
3 required to  Person collecting tax at source i.e., e-commerce operator, not being an
file GSTR-1? agent.
 Supplier of online information and databases access or retrieval services
[OIDAR] located in non-taxable territory and providing such services
to non-taxable online recipient.
Periodicity [of Period If aggregate turnover is in the
4 filing GSTR- Quarterly </= ₹ 1.5 crore Preceding/Current
1] Monthly > ₹ 1.5 crore FY
th
[GSTR-1 for a particular month is filed] on/before 10 day of the immediately
succeeding month [it means it can filed from 1st day to 10th day of the
succeeding month].
Due date [of
NOTE → GSTR-1 cannot be filed during 11th day to 15th day of succeeding
5 filing GSTR-
month.
1]
NOTE → due date may be extended by the commissioner/Commissioner of
State GST/ Commissioner of UTGST for a class of taxable persons by
way of notification.
6 Is taxpayer EXCEPTION
allowed to file  Casual tax payers, after the closure of their business.
GSTR-1  Cancellation of GSTIN of a normal taxpayer. [a taxpayer who has
N
before the applied for cancellation of reg. will be allowed to file GSTR-1
O
end of after confirming receipt of application]
current tax
period?
Basic & other details Details of outward supplies
▪ GSTIN. ▪ B2B.
▪ Legal name & trade name. ▪ B2C.
▪ Aggregate turnover [in the PY] ▪ Zero rated & deemed exports.
▪ Tax period. ▪ Debit/credit notes issued.
What are the ▪ HSN-wise summary of outward ▪ Nil rated/Exempted/Non-GST.
7 contents of supplies. ▪ Amendments for prior period.
GSTR-1? ▪ Details of documents issued.
▪ Advances received/adjusted.
NOTE: GST is a destination based consumption tax [i.e. tax revenue is
transferred to the state which is the place of supply of particular transaction.
Since, place of supply is crucial for determining the share of every state in
the tax revenue, GSTR-1 also captures information relating to place of
supply.
 Outward taxable supplies

B2B supplies B2C supplies

Inter-state Intra-state Inter-state Intra-state

supplies supplies supplies supplies

Invoices >
What kind of Invoice-wise ₹ 2,50,000 Invoices </= Consolidated
details of details of all ₹ 2,50,000 details of all
outward supplies to be supplies to be
8 supplies are uploaded uploaded [for
required to each rate of
be furnished State wise consolidated details
tax]
in GSTR-1? to be uploaded [for each rate
of tax]
Debit and credit notes issued during the month for invoices issued
previously.

 B2B [business to business transaction] – the recipient is a registered

supplier & hence takes ITC.
 B2C [business to consumer transaction] – the recipient is
consumer/unregistered & hence, will not/cannot take ITC.
 Invoices can be uploaded any time during the tax period & not just at the
time of filing of GSTR-1.
When invoices  In case of late filing of GTSR-1, invoices can be uploaded after 15th of
9 can be the month [succeeding the tax period-month].
uploaded?  Invoices can be modified/deleted any number of times till the submission
of GSTR-1. The uploaded invoice details are in a draft version till the
GSTR-1 is submitted and can be changed irrespective of due date.
10 Scanned copies
of
invoices/pres Only prescribed fields of information from invoices need to be uploaded,
cribed fields not scanned copies of invoices.
of
information?
11 What if there is
no
consideration
The taxable value will have to be worked out as prescribed and uploaded.
[but it is a
supply under
Schedule I]?
12 Is description of
No. Only HSN Code [i.r.o supply of goods] & Accounting Code [i.r.o
each item [in
supply of services] need to be fed.
the invoice]
 need to be
uploaded?
Annual turnover in the preceding
Number of digits of HSN Code
FY
Indication of </= ₹ 1.5 crore Nil
13
HSN details?
> ₹ 1.5 crore & </= ₹ 5 crore 2
> ₹ 5 crore 4
In case of person paying tax under In case of person paying tax under
How details of normal scheme composition scheme
GSTR-1 are
14 communicate Part-A of GSTR-2A Part-A of GSTR-4A
d to
recipients? After 10th day of the succeeding month

GSTR-I needs to be filed even if there is no business activity [i.e. no

15 Nil return purchase, no sale].
16 About tax payer
opting for
A taxpayer opting for voluntary cancellation of GSTIN has to file
voluntary
GSTR-1 for active period.
cancellation
of GSTIN
17 In case normal
GSTR-1 will be available for filing only for the period during which the
taxpayer is
taxpayer was registered as normal taxpayer. The GSTR-1 for the said
converted to
period, even if filed with delay would accept invoice for the period
composition
prior to conversation.
taxpayer
 a  Tables 9,10 & 11(II) of GSTR-1 provide for amendments in details
of taxable outward supplies furnished in earlier periods [they are
called as Amendment Table]
 Where the details of original/Where the details of revision in the
debit notes/credit notes/refund vouchers are required to be shown?
ANS: In Table 9 of GSTR-1.
 The supplier is required to give details of original invoice [No. &
Date], the particulars of which have been entered wrongly [in GSTR-
1 of earlier months].
 The supplier may forget to include the entire original invoice. In
How the details such cases also, he is required to show such missed invoice in the
of outward Amendment Table only [such type of error is regarded as “data entry
supply error”].
18
furnished in b Rectification of errors:
prior periods
amended?  If supplier discovers any error/omission, he shall rectify the same in
the tax period during which such error/omission was
discovered…&
 shall pay the tax & interest, if any, in case there is short payment, in
return to be furnished for such tax period.
c Maximum time limit for rectification of errors:
Date of filing of monthly return u/s 39 for the
month of September following the end of the
FY to which such details pertain. WHICHEVE
Date of filing of the relevant annual return [not R IS
due date, but actual date of filing]. EARLIER

FURNISHING THE RETURNS UNDER SECTION 39

1 GSTR-3B
a Who are required to file? Every registered person.
 Input service distributor.
 NTRP.
Who are not required to  Composition taxpayer.
b
file?  Person deducting tax at source [ECO].
 Supplier of OIDAR services.

c Periodicity Monthly.

d Due date of filing? 20th day of the month succeeding the relevant month.
It can be submitted electronically through the common portal,
e How to file GSTR-3B?
either directly or through a notified facilitation centre.
 Basic details Other details relating to supply

 GSTIN.  Summarised details of

 Legal name (i) outward supplies & (ii) inward
of the supplies liable to reverse charge.
registered  Summarised details of inter-state
person. supplies made to (i) unregistered
What are the contents of
f  Tax period. persons (ii) composition taxable
GSTR-3B?
persons & (iii) UIN holders.
 Eligible ITC.
 Value of exempt, nil-rated and non-
GST inward supplies.
 Payment of tax.
 TDS/TCS credit.

g Nil return GSTR-3B needs to filed even if there is no business activity [nil
return] in the tax period.
2 GSTR-4
 Composition supplier. [a]
a Who will file GSTR-4?
 Person paying tax under notification no. 2/2019. [b]
Persons filing GSTR-4 are required to file
b Form GST CMP-08?
Form GST CMP-08.
What does Form GST
c It contains details of payment of self-assessed tax.
CMP-08 contains?
GSTR-4 Form GST CMP-08
d Periodicity
For every FY/part of FY. Every quarter
GSTR-4 Form GST CMP-08
e Due date of filing 30th day of April following 18th day of the month
the end of such FY. succeeding such quarter.
 Composition taxpayer & person paying tax under relevant
f  notification are required to file GSTR-4 annually.
 Whereas they are required to pay tax quarterly.
The inward supplies [purchases] of ‘composition taxpayer’ &
Auto-population of inward ‘person paying tax under relevant notification’ received
g
supplies from registered persons filing GSTR-1 will be auto-
populated in form GSTR-4A for viewing.
h How [a] & [b] will
Since they are not eligible to take ITC, they discharge their
discharge their tax
tax liability only by debiting e-cash ledger.
liability?

i Cancellation of registration Composition taxpayer Other taxable person

by proper officer. If - Not furnished GSTR-4 for 3 Not furnished returns for
j Nil return
k Contents of GSTR-4
consecutive tax consecutive period of 6
periods. months.
GSTR-3B needs to filed even if there is no business activity [nil
return] in the tax period.
Basic details Details regarding inward &
outward supplies
 GSTIN.  Invoice-wise details of all
 Legal name & Trade inward supplies [intra,
name. inter, from reg. & unreg.
 TDS/TCS credit persons], including reverse
received. [Table 7]
 Tax, interest, late fee charge supplies & import of
payable and paid. [Table services. [Table 4]
8]  Summary of self-assessed
 Refund claimed from e- liability as per GST CMP-08
cash ledger. [Table 9] [net of advances, credit debit
notes & any other
adjustments due to
amendments, etc] [Table 5]
 Tax rate wise details of
outward supplies/inward
supplies liable under
reverse charge [net of
advances, credit debit notes
& any other adjustments
due to amendments, etc] -
consolidated details of
outward supplies. [Table 6]
l
Composition supplier or
Person paying tax under
Regular taxpayer notification no. 2/2019 Regular taxpayer

Opting for composition scheme/ Exit from composition scheme/

notification no. 2/2019 [from notification no. 2/2019 [on
beginning of FY] own/by proper officer]

Statement/returns relating GST CMP-08 for GSTR-4 for period

to period prior to opting for period prior to exit prior to exit from
composition scheme/ from composition composition
notification no. 2/2019 to scheme/ notification scheme/
be filed no. 2/2019 to be notification no.
filed by 2/2019 to be filed
by
Till
• Due date of
furnishing the return 18th day of the 30th April
for the month of month succeeding following the end
September of the the quarter in of the FY during
succeeding FY. OR which the date of which such
• Furnishing the withdrawal/cessati withdrawal/cessati
annual return of the on falls. on falls.
preceding FY
Whichever is earlier.

[a] & [b] will not be eligible to avail ITC on receipt of

m  invoices/debit notes [from the supplier] for the period
prior to their opting to pay tax under composition
scheme/notification.
3 GSTR-5: Return for NTRP [Section 39(5)]
NRTPs are those suppliers who do not have a business
establishment in india and have come for a short
a NRTP means? period to make supplies in india. They would
normally import their products into india and make
local supplies.
b Form? GSTR-5
c Periodicity? For every calendar month/part thereof. [i.e. monthly]
What details are included in Details of inward and outward supplies are
d
GSTR-5? incorporated.
e It should be furnished -
Due date for filing?
Within 20 days after the end of the
WHICHEVER
calendar month OR
IS
Within 7 days after the last day of
EARLIER
validity period of the registration.
NRTP shall pay the tax, interest, penalty,
fees or any other amount payable Till last date
under (i) the CGST Act or (ii) the of filing of
Due date for payment of interest,
f provisions of the Returns [under GTSR-1.
penalty, fees, etc
CGST Rules]
DUE DATE OF FILING = DUE DATE OF
PAYMENT [of above mentioned amounts]
 NRTP is not required to file an annual return.
 NRTP is not required to file seperately the
g Other points
statement of outward supplies and applicable
return for a normal taxpayer.
4 Due date for payment of tax in case of -
a GSTR-3B
DUE DATE OF FILING THE RETURN
b GSTR-5
Person paying tax under
c composition scheme and 18th of the month succeeding each quarter.
relevant notification
5 a Rectification of errors/omissions
Omission or errors discovered in the returns filed u/s 39 can be rectified in the return to be
filed for the tax period during which such omissions/errors are discovered.
 It is not permitted [u/s 39(9)] to rectify errors/omissions discovered on
account of scrutiny, audit, inspection or enforcement activities by tax
EXCEPTION authorities.
 Consequently, assessee may not be able to pass ITC to the receiver i.r.o
tax payments made by him in above situations.

b Time limit for rectification of errors

Due date of filing of return for the month of September
i
following the end of the FY [i.e October, 20th of next FY] WHICHEVER IS
Actual date of filing of annual return [NOTE: Due date of EARLIER
ii
filing annual return → 31st December of next FY]
6 Other relevant points -
a Valid return:
✓ A return furnished u/s 39(1) on which self-assessed tax
✓ has been paid in full
 b Filing of returns for current month is possible only when returns of the previous months
have been filed.
c A taxpayer needs to electronically sign the submitted returns otherwise it will be considered
not-filed.
d Taxpayers can electronically sign their returns using –
 DSC [mandatory for all types of companies and LLPs].
 E-sign [aadhar based OTP verification].
 EVC [electronic verification code sent to the registered mobile no. of the authorised
signatory].

Other returns
1 First return [section 40]
In order to enable registered person to declare taxable supplies
made by him for the period b/w the date on which he became
a ? liable to registration till the date on which the registration has
been granted so that ITC can be availed by the recipient of such
supplies, [the First Return is used].
The registered person shall declare outward supplies made during
b How? the said period in the first return filed by him after grant of
registration.
c Any condition to comply Registered person shall issue revised tax invoices against the tax
with before declaring invoices already issued during the said period within 1 month

Included in the
outward supplies? from the date of issuance of certificate of registration.
Details of outward supplies made during the said

First Return.
period
d NOTE
Details of outward supplies made during the first tax
period after grant of registration certificate.
2 Annual return
a Who shall file? All registered persons
 Casual taxable persons.
Who are not required to  NRTP.
b
file?  ISD.
 Persons authorized to deduct/collect tax at source [u/s 51/52].
c Due date of filing? 31st December of next FY.
A registered person who is required to get his accounts audited u/s
35(5) shall file -
Provision i.r.o registered
person who is Copy of Certified
d required to get his audited Annual
reconciliation
accounts audited u/s annual return
statement
35(5). accounts

The value of supplies declared in

the return furnished for the FY.

Reconciliation It reconciles
e
statement?
The audited financial statements
and such other particulars.

Composition scheme supplier GSTR-

9
f Form of annual return?
Other than composition supplier GSTR-
9A
3 Final return [section 45]
Every registered person who is required to file return u/s 39(1)
a Who is required to file?
& whose registration has been surrendered/cancelled.
b Form? GSTR-10
The final return shall be filed within -
c Time limit for filing? Date of cancellation 3 months Whichever is
Date of order of cancellation 3 months LATER.
4 Details of inward supplies of persons having UIN -

When UIN is issued

for claiming refund of taxes paid on for other than “for claiming refund of
inward supplies taxes paid on inward supplies”

The person shall furnish the details of The person shall furnish the details of
inward supplies of taxable inward supplies of taxable
goods/services on which refund has goods/services
been claimed, in
Application for GSTR- As required by the proper officer, in
such fund 11

Default/delay in furnishing return [sections 46 & 47]

1 a Notice to return defaulters
A notice in prescribed form is issued to a registered person who fails to furnish return under –
 Section 39 [normal return].
 Section 44 [annual return].
 Section 45 [final return].
 Section 52 [TCS statement].
b The notice requires → to furnish return within 15 days.
2 a
Delay in filing attracts late fee, by the due dates, of -

 Statement of outward supplies [section 37].

 Returns [section 39].  Annual return
 Final return [section 45]. [section 44]

Quantum of late fee

₹ 100 for each day during which ₹ 100 for each day during which
Which 0.25% of turnover
the failure continuesof
ORreg. person
the failure continues OR₹ 5,000 ever is in state/UT.
lower
b Above [a] is only in respect of CGST. Equal amount of late fee is levied under
SGST/UTGST Act.

Late fee under CGST Late fee under SGST/UTGST Total late fee

Goods and services tax practitioner [section 48]

1 Eligibility criteria
a Indian citizen.
b Person of sound mind.
c Not adjudicated as insolvent.
d Not been convicted by a competent court.
e Satisfies any of the below conditions -
i • Retired officer of commercial tax dept. [of any state govt/CBIC]
• who, during the service under govt. had worked in post not lower than the rank of
a Group-B gazetted officer
• for a period >/= 2 years.
ii • enrolled as a Sales Tax Practitioner/Tax Return Preparer
• under earlier indirect tax laws
• for a period of >/= 5 years.

Any one or more is

iii Graduate/PG degree/its equivalent examination having a degree in Commerce Law,
Banking, Higher Auditing, Business Administration or Business Management

required
from any Indian university established under any law for the time being in force.
Degree examination of any foreign university recognised by any Indian university
as equivalent to the degree examination mentioned above.
Any other examination notified by the govt. on council’s recommendation.
Any degree examination of an Indian university/of any foreign university
recognised by any Indian university as equivalent of degree examination
Has passed final examination of ICAI/ICSI/ICAI (cost).
2 What are the activities which can be undertaken by a GSTP?
 Furnish details of outward and inward supplies.
 Furnish monthly, annual, final return.
 Make deposit for credit into e-cash ledger.
 Furnish information of challan in the prescribed form.
 File application for amendment/cancellation of enrolment u/r 58.
 File an intimation to pay tax under the composition scheme or withdraw from the said
scheme.
 File a claim for refund.
 File an application for reg/amendment/cancellation.
 Allowed to appear as authorised representative before any officer of dept., appellate
authority/appellate tribunal, on behalf of such reg person provided he is enrolled as GSTP
u/r 83.
3 When a reg. person opts to furnish his return through GSTP, such reg person:
 Gives his consent to any GSTP to prepare and furnish his return
 Before conforming submission of any statement prepared by GSTP, ensures that the
facts mentioned in return are true and correct.
4 Responsibility for correctness of any particulars furnished in the return/other details filed by the
GSTP continues to rest with the reg person.
5 Failure to respond by reg person to request, by GSTP, for confirmation is treated as deemed
confirmation.
6 GSTP accepts the authorisation in Part-B [of the form].
7 The registered person may withdraw such authorization at any time.
8 For every statement a confirmation is sought from the reg person over email/sms.
9 GSTP should prepare all statements with due diligence, affix his digital signature on the same
or electronically verify using his credentials.
10 If GSTP is found guilty → His enrolment will be cancelled & SCN will be issued.
11 Procedure for enrolment:
a Application
 CHAPTER 5

DATA ANALYSIS
COMPARISION OF GST COLLECTION:

India is one of the latest economies to adopt the GST. It was one of the latest to adopt the VAT as well.
Most of the Southeast Asian economies adopted consumption taxes like the VAT, or the GST based on
value-addition way back in the 1980s and 1990s. Some insights received from Mr. Anand Laddha, Research
Analyst derives that total tax collection in India (direct & indirect), currently stands at Rs 14.6 lakh crore, of
which almost 34 per cent comprises indirect taxes, with Rs 2.8 lakh crore coming from excise and Rs 2.1
lakh crore from service tax. With the implementation of the GST (Goods and Services Tax), the entire
indirect tax system in India (excise, state-level VAT, service tax) is expected to evolve. The tax revenue mix
can change as per the economic condition of the country. In developing countries, indirect taxes comprise a
higher share of total direct and indirect taxes; in developed countries, their contribution is significantly
lower. For example in Australia, indirect tax contributes just 13 per cent of total tax collection. After GST,
the percentage of indirect tax is expected to increase in India.
GST Frauds:
 Chapter VI

SUMMARY & CONCLUSIONS

• Findings
• Conclusions
• Suggestion
• Bibliography
Findings:

A holistic approach is essential for assessing the impact of GST on some of the major sectors. Mr. Sahil
Kapoor, Chief Market Strategist of Edelweiss Securities has given quantitative details of some industries in
terms of their reaction to the rollout of GST in India. The synopsis is presented within this paper.
The effective tax rate in the automobile sector is around 30-47% at present. After the implementation of the
GST tax rate is anticipated to fluctuate between 20-22% which would reduce the cost for the end user
causing an increase in demand.
Additionally, the time taken for transportation along with overall cost would reduce as the vehicles or goods
will be easily transferred from one state to another by surpassing the octroi and check points.
Therefore in the long run GST is expected to be positive for the automobile sector. Then currently the
pharmaceutical sector benefits from the location-based tax incentives and effective
tax rate (excise duty) for such companies is b
elow the statutory rate of 6%. This concessional tax bracket is expected to continue as the GST is
introduced. However, it will be difficult to bring in new expectations thereafter and that is the reason why
the impact for GST will remain neutral on this sector.

Conclusions:

In the case of some goods, direct and indirect taxes imposed by government raise its cost upto
30%. After the implementation of GST, it will reduce. The GST also reduces the cascading effect
of tax which helps in making the trade simple and reduces the tax Burden of Entrepreneurs.

Suggestions:

Steps to Make GST More Compliant:

These steps may be the initiation with respect to long-awaited transformation in the Goods and
Services Tax (GST), and the overhaul completed. There are some more steps that the
government needs to initiate in making GST a good and simple tax as the PM Narendra Modi
assured.

Reduction in Number of Tax Slabs Rates

To begin with let’s talk about drastic changes in tax rates that are bothering the taxpayers. There is an
invariable need to put a halt on the changes in tax rates and decide the rate structure that is static for a few
years. Adding on to that increasing the tax rates is not an ideal solution for grabbing more revenue especially
in the era of an economic slowdown. In short, there is a need for a simplified tax structure of only three tax
slabs. Either we need to merge 12% & 18% or 5% & 12% slabs into one.

Effortless Input Tax Credit Claims

An urgent restoration of the Input Tax Credit system is indeed an invariable requirement. GST on all the
businesses should be seen as setoff in line with global practices. And if restrictions on credit is not possible
then the denial of say 5% of total input taxes should be made an option for the taxpayers without there being
an urgent need for detailed expense analysis.

Spreading the GST Net

There is still a huge crowd away from paying GST (Goods and Services Tax) keeping the fact as their
primary concern, the GST council meeting should find out ways to bring in real estate, petroleum and
electricity sectors under its umbrella. The GST net could be expanded gradually starting from industrial
fuels like Aviation Turbine Fuel (ATF) and natural gas.

Renovating ITC System

Restriction on cash flow in the market has adversely affected businesses. The ITC that is acquired at the
state level by several businesses is subject to tax payment in some other state. At central GST, a national
pool has to be considered in addition to allowing an offset against income tax. An excess amount in input tax
can be dispersed as a refund to the taxpayers.

Practical Targets for GST Collection

As per the government’s data, monthly GST collection is a little more than Rs. 1 lakh crore in the current
financial year and therefore the revenue target is missed by large numbers. Revenue collection is important
but it cannot define the spontaneity of the GST system which totally depends on the smooth function of
businesses and widened tax base.

Hope is revived with the commencement of new e-invoicing under GST practice which will allow real-time
tracking of ITC claimed by a business based on invoices of B2B transactions.

Including Some Exempted Goods In GST Regime:

Some goods & services like electricity, real estate, and petroleum are out of GST structure. As they are out
of GST bracket, the input tax credit benefits cannot be utilized by the segments involved in the process and
so it is a loss for them. In addition, these sectors are out of the indirect tax system at the mercy of state
government. Some sectors such as oil and gas are demanding to be included in the GST. Even experts
suggest that the right way to implement GST is to put all the sectors under the bracket of GST, but it would
take some time to implement the required tweaks to the system.

Bibliography:

• GST BOOKS
• GST PORTAL
• CGST & SGST ACT
• WEBSITES
• NEWS & PUBLICATIONS