GST Syllabus

40 Marks - Nov 2023

Basic Concepts
Supply
Charge of GST
Time of Supply
Value of Supply
Exemptions
Registration
Input Tax Credit
Tax Invoice, Credit Note and Debit Note; Ewaybill
Payment of Tax
Returns

Basic Concepts
GST - Goods and Services Tax

GST is an Indirect Tax

Impact and Incidence is different person - Shifting of tax burden

GST - Canada model of GST - Dual GST model

Prior to July 2017, there was no tax in India which was levied by Centre and state together

Need for constitutional amendment

Constitution 122nd Amendment Bill, 2014

Constitution 101st Amendment Act, 2016

France - GST - 1954

India - 1st July 2017 - Already more than 160 countries across the world adopted GST

Taxes Subsumed in GST

Centre State
Excise Duty VAT
Service Tax Entertainment Tax
CST Luxury Tax
Additional Customs duty - CVD and Spl CVD Entry Tax (Octroi)
Surcharge and Cess related to above taxes Tax on advertisement
Tax on Betting, gamblin
Surcharge and cess rela

Prior to July 2017

Mr. A of MH sold goods to Mr. B of TN

Sale price 100000

CST @10% 10000

CST is levied by whom ? - Central Government

CST is collected by whom? - SG - MH - Seller state

Mr. A of TN sold goods to Mr. B of TN

Sale Price 100000
VAT @10% 10000

VAT is levied by whom ? - SG

VAT is collected by whom? - SG

Mr. A of MH sold goods to Mr. B of TN

SP 100000
CST @10% 10000

Same goods Mr. B sold to Mr. C of TN

SP 130000
VAT @10% 13000

Output tax 13000

Less: Input Tax Credit 0
Tax paid on purchases
Net tax payable 13000

CST - Levied by CG - Collected by SG - MH

Mr. A of TS sold goods to Mr. B of TS

SP 100000
VAT @10% 10000

Same goods Mr.B sold to Mr. C of TS

SP 130000
VAT @10% 13000

Output tax 13000

Less: ITC 10000
Net Tax Payable 3000
1st July 2017 - GST - One Nation One Tax

SUPPLY

Outward Supply - Tax payable - Output tax

Inward Supply - Tax paid - Input Tax - Input Tax Credit

GST - Goods and Services Tax

Article 366(12A) - Defines GST
GST is a tax on supply of all goods or services or both except alcoholic liquor for Human Consumption

GST is a destination based consumption tax - Tax will reach that tax where goods or services are consumed

2000 1st July 2017 - GST was accepted by all the states except J&K
2006-07 Budget - 2010 8th July 2017 - J&K - passed GST Bill
2014
2016 GST is applicable to whole of India including J&K
GST bills - 2017

5 petroleum products - Temporarily kept outside GST

Petroleum Crude
High Speed Diesel
Motor Spirit
Natural Gas
Aviation Turbine Fuel

GST
Supply

Intra State Supply - CGST and SGT is levied

Inter State Supply - IGST is levied

Dual GST Model

If rate of GST is 18% - Intra state supply - CGST 9% and SGST 9%

Inter state supply - IGST - 18%

Do you accept that some states have lost revenue because of GST ?? - Yes

In order to compensate that states - They introduced GST Compensation Cess on some luxury products

5 Years - 2022 - Extended till 2026

Manner of utilisation of ITC

Input IGST Input CGST Input SGST

1. Output IGST 1. Output CGST 1. Output SGST
2. Output CGST/ SGST
in any order or any
manner 2. Output IGST 2. Output IGST

Note:
1. Input CGST cannot be utilised for output SGST and Vice Versa
2. CGST/ SGST Credit to be utilised only after IGST credit is fully exhausted
3. For payment of Output IGST, first Input IGST to be used then Input CGST to be used, then only Input SGST is to be uti

Mr. X
Intra state outward supply - 10L
Inter state outward supply - 8L

Intra state inward supply - 12L

Inter state inward supply = 9L

GST rate is 18% Net GST Payable

Particulars IGST CGST
Net GST payable ?? Output Tax 144000 90000
Less: ITC
Input IGST 162000 IGST 144000 9000
Input CGST 108000 CGST 81000
Input SGST 108000 SGST
Net GST Payable 0 0
Output IGST 144000
Output CGST 90000 Balance GST to be C/f 0 27000
Output SGST 90000

Mr. X
Intra state outward supply - 15L
Inter state outward supply - 10L

Intra state inward supply - 18L

Inter state inward supply = 4L

GST rate is 18% Net GST Payable

Particulars IGST CGST
Net GST payable ?? Output Tax 180000 135000
Less: ITC
Input IGST 72000 IGST 72000 0
Input CGST 162000 CGST 27000 135000
Input SGST 162000 SGST 27000 -
Net GST Payable 54000 0
Output IGST 180000
Output CGST 135000 Balance GST to be C/f 0 0
Output SGST 135000

Mr. X
Intra state outward supply - 8L
Inter state outward supply - 9L

Intra state inward supply - 4L

Inter state inward supply = 12L

GST rate is 12% Net GST Payable

Particulars IGST CGST
Net GST payable ?? Output Tax 108000 48000
Less: ITC
Input IGST 144000 IGST 108000 18000
Input CGST 24000 CGST 24000
Input SGST 24000 SGST
Net GST Payable 0 6000
Output IGST 108000
Output CGST 48000 Balance GST to be C/f 0 0
Output SGST 48000

CGST - Taken by CG
SGST - Taken by SG

IGST - Levied by whom? - CG

Who will take that money ? - CG and then it is apportioned with SG

Which state ? - Seller state or buyer state ? - Buyer state - GST is a destination based consumption tax

Implementation of GST - GSTN - GST Network

Common Portal - WWW.GST.GOV.IN

All the activities related to GST such as registration, payment of tax, filing of return etc - Done on common portal only

Article 279A - GST Council

All the decisions/ Changes related to GST is done by the CG inly upon recommendations of GST Council

GST Council

Centre - 2 Members - Union Finance Minister and Minister of state for Finance

State - Every state representative

Centre has weight of 1/3

Whereas all states put together - Weight of 2/3rd

Union Finance Minister - Chairman

One of the state representative - Vice Chairman

Quorum - 50% of total number of members

In order to pass a resolution - 3/4th Majority

For some decision

Centre said Yes 1/3 is done 33.33%

States - 24 states were present - 18 Said yes Weighted 0.5

Total majority 83.33%

Resolution is passed

For some decision

Centre said Yes 1/3 is done 33.33%

States - 24 states were present - 12 said Yes Weighted 0.333333

Total majority 66.67%

Resolution is not passed

For some decision

Centre said Yes 1/3 is done 33.33%

States - 24 states were present - 8 Said yes Weighted 0.222222

Total majority 55.55%

Resolution is not passed

Entertainment Tax
Luxury Tax
Entry Tax (Octroi)
Tax on advertisement
Tax on Betting, gambling and lottery
Surcharge and cess related to above taxes
e consumed
y Input SGST is to be utilised

SGST
90000

9000

81000
0

27000

SGST
135000

0
-
135000
0
 0

SGST
48000

18000

24000
6000

on common portal only