One Day GST Seminar

B.Com 6th sem

What is a Tax?

Tax is a Fee charged by a Government on a product or services

Central Govt.
and income. State Govt.

Indirect Taxes
Collected by
Direct Taxes
Central Govt.
Collected by State Govt.
Central Govt.
Goods and Service Tax (GST)
Incidence of GST

Sale of Goods
Supply
Providing of Services

Sale / Service Amount

Price /Fee 10,000

GST-18% 1,800

11,800
Goods @ 0% GST
Goods @ 0.25% GST
Goods @ 3% GST
Goods @ 5% GST

Below Rs.1000

Below Rs.500
Goods @ 12% GST

Below or = Rs.100

Room Tariff from

Rs.1001 to Rs.7500
Goods @ 18% GST

Above Rs.100
Goods @ 28% GST
Supply

Taxable Supply
(Supply of Taxable Goods/Services- 0.25%,3%,5%,12%,18% & 28%)

Exempted Supply
(Supply of 0% rated Goods/Services)

Non-GST Supply
(Supply of GST not applicable Goods/Services- Petroleum products, alcohol)

Zero-Rated Supply
(Supply of Taxable Goods/Services- Export)
Taxes under GST

SGST CGST UTGST IGST

Collected by Collected by Collected by Collected by

State Govt. Central Govt. Union Territory Central Govt.
Govt.

When make When make When make

Intra State Supply Intra State Supply Inter State Supply
 Intra State Supply Delhi
Inter State Supply

Kerala

Tamil Nadu
 GST Revenue

50% 50%
State Govt. Central Govt.

One Nation One Tax

Intra State Transaction
When he makes Sales at the Shop

Price 2,000
CGST-2.5% 50
SGST-2.5% 50

2,100

Seller
Manjeri

State Govt. revenue 50%

Central Govt. revenue 50%
Inter State Transaction
When he makes Sales to TAMIL NADU

Price 2,000
IGST-5% 100
2,100

Seller
KERALA

Central Govt. collected 100% GST

Inter State Transaction
IGST 5% - Rs.100
CENTRAL GOVT.

Transfer 50%
Rs.50

Seller TAMIL NADU

KERALA GOVT.
IGST
5% -
Rs.100

State Govt. revenue 50%

Central Govt. revenue 50%

Buyer GST is a Consumption based Tax

TAMIL NADU
CONCEPT OF GST
Manufacturer Wholesaler Retailer Consumer

Price – 10,000 Price – 30,000 Price - 60,000

CGST @ 9% - 900 CGST @ 9% - 2,700 CGST @ 9% -5,400
SGST @ 9% - 900 SGST @ 9% - 2,700 SGST @ 9% -5,400
11,800 35,400 70,800
SGST – Rs.1,800

CGST –
Rs.1,800

Rs.2,700
CGST

SGST – Rs.2,700
CENTRAL GOVT.

CGST – Rs.900
STATE GOVT.
SGST – Rs.900
CONCEPT OF GST
o Value added Tax

o Continuous Chain of Tax credits

o Burden Borne by Final Consumer

o No Cascading of Taxes
GST Equation

GST payable = Output GST – Input GST

while making Taxable

when making
Purchase
Taxable Supply

Collected by Paid by
Business Business
GST Sales

Business to Business Business to Consumer

(B2B) (B2C)

For their Personal Consumption

For Resale - Trading
For use in the Course or
For Furtherance of Business-
Reprocessing – Fixed Assets (Capital Goods)
Manufacturing
Input Tax Credit

On On On
Input Goods Capital Goods Input Services
Eg: Internal Auditing
Eg: Purchase Of Eg: Machinery, Delivery,
Fee, Rent, Repair &
Stock for Resale & Vehicle, Computer etc…
Maintenance etc….
Reprocessing
ITC Will not be available in the following cases

Goods or Services Exclusively used for.

Personal use

Exempt supplies

Supplies for which ITC is

specifically not available
GSTIN (Goods and Service Tax Identification number)

32 DBIPS1130M 3 Z 4
Entity Default Digit
State PAN Number to check
Code (Permanent of same PAN errors
Account holder in a
Number) State

01- Jammu and Kashmir It will be an alpha-

07- Delhi numeric number
27- Maharashtra (first 1-9 and then A-Z)
32- Kerala
33- Tamil Nadu
GST Registration

Not Compulsory Voluntary

Liable Liable

Based on Without
Threshold Threshold

Exclusive Non Agriculturist GST Registration Form

Taxable Supply
OR Exempt
GST – REG 01
Supply
GST Registration- Compulsory Liable
Based On Threshold

Service Goods
Aggregate Aggregate
Annual Turnover Annual Turnover
Rs. 20 Lakh Rs. 40 Lakh
Special Category states
•Puduchery
•Meghalaya
•Mizoram Goods- 20 Lakh
•Tripura
Service- 10 Lakh
•Manipur
•Sikkim
•Nagaland
•Arunachal Pradesh
•Uttarakhand
Aggregate Turnover
Taxable Supply
(Excludes Reverse Charge)
Having Same
PAN, all India
Basis
Exempt Supplies

Export of Goods and

Services Excluding CGST,
SGST, IGST,
UTGST & Cess

Inter-state Transfer
(Same PAN)
Documents Required - GST Registration

Proof for Constitution of Business

Municipal License/Partnership Deed/LLP Agreement/Incorporation
Certificate/Any other document issued by Govt. authorities
Address Proof for Place of Business/ Branches (If any)
Rent Agreement/Sale Deed/NOC from Building Owner/Lease Agreement
Bank Account Proof
Bank Statement/ Bank Pass Book
PAN Card of the Applicant
Identity, Address Proof and Photograph of Promoters
PAN, Adhar
Digital Signature of Authorized Signatory
Authorization Letter (if required)

E-mail ID
Mobile Number
Details of Supply of Goods & Services
Classification of Goods & Services

Goods Services

HSN SAC
Harmonized system of Service Accounting
Nomenclature Code

Mandatory in Invoice
When Turnover Exceeds
1.5 Crore

Handkerchief – 62.13.90
Legal Service – 99.82.13
Invoices under GST
Tax Invoice
When makes Taxable Supply

Export Invoice Receipt Voucher

When makes Zero Rated Supply In case of receipt of Advance Money

Bill of Supply Refund Voucher

Exempt Supplies or in case Advance Money received but no
Composition Dealer Supply is made

Debit / Credit Note Consolidated Tax Invoice

For Adjusting Price Aggregate Invoice

Delivery Challan
For Intra State Branch Transfer/ Goods
to Job Worker
Consolidated Invoice

Case -1
Supplies Less
than Rs. 200

Recipient is not
Registered Person

Recipient does not

require invoice

Issue Consolidated
Invoice at the Close of
each Day
Composition Scheme
Only for Taxpayer whose Turnover less than 1.5 Crore

Type of Business CGST SGST Total

Manufactures and Traders (Goods) 0.5% 0.5% 1.0%
Restaurants not serving alcohol 2.5% 2.5% 5%
Service Provider whose Gross 3% 3% 6%
Receipts below 50 Lacs

• No Credit of Input Tax

• No inter-State business
• Pay tax from own pocket
• Quarterly return filling
Time of Supply
Point in Time Helps to Identify
Due date for
When Goods/Services are
payment of taxes
considered supplied

Earliest of

The Date of Issue of Invoice The Date of Receives

the Payment
Date of provision of supply if
invoice is not issued before The
last date on which required to
Issue the Invoice
The last date to issue the Invoice

Goods Services

Involving No Within 30 days from

Movement Movement the date of completion
of Goods of Goods of Services

For Banking &

At the time On or before Insurance Co. – 45 days
of removal Delivery of Goods
Value of Supply

Goods or Value of Supply Transaction

Services or Both Value

Conditions:-
Supplier and Recipient are not related person
Price is the Sole Consideration

Transaction Value
Price actually paid or Payable for the said Supply
GST Return Forms

GSTR 1 Outward Supply of

Goods/Services

GSTR 2A Inward Supply of Goods/Services

(Auto Populated)

GSTR 3B Monthly Return (GST Payment)

GSTR 9 Annual Return

GSTR 9C GST Audit

GSTR 10 Final Return (On

cancellation of Return)
GST Audit

By Tax Authorities By Assessee

General Audit If Aggregate Turn-over

as ordered by exceeds 5 crore
Commissioner
CA or CMA appointed
by Assessee
Special Audit
by CA or CMA
nominated by
commissioner
What is Cascading effect of Tax?
• Cascading tax effect is also termed as “tax on tax”.
• State Govt. will charge VAT/CST on Excise Duty which is charged by
Central Govt.

Cost 80,000.00
Profit 20,000.00
1,00,000.00
ED @ 10% 10,000.00
1,10,000.00
VAT/CST @ 10% 11,000.00
Selling Price 1,21,000.00
Who is Casual Taxable Person ?
• He is a person who occasionally undertakes business transactions in a
state.
• He has no place of business.
• Registration will get only for 90 days. It may be again extended by 90
days.
What is Suo Moto Registration ?
• Where a person who is liable to be registered under GST fails to
obtain registration, GST department can allot a Temporary ID and
initiate to collect tax from this unregistered person.
• Issue Registration Certificate to them in Form GST REG 12.
What is “Composite Supply”?
A composite supply is two or more goods or services that are only sold
as a set and cannot be sold individually. ... A composite supply is taxed
at the GST rate of the principal supply.
(Example: Toothpaste and Toothbrush sold together)
Explain about GST Payment?
Previous year’s questions 2020

• Validity of GST Registration certificate

Valid till it is cancelled
• Tax levied in case of Intra-state supply
• HSN stands for
• Which supply shall attract IGST
• What is GSTR 2
• Aggregate Turnover
• List out 4 exempted goods from GST
• Meaning supply in GST
• How input tax is differing from Output tax
Previous year’s questions 2020
• Arguments against GST
Increased costs due to software purchase
GST will mean an increase in operational costs
Adapting to a complete online taxation system
SMEs will have a higher tax burden
• How can a registered person cancel his GST registration
- File application for cancellation in Form GST REG- 16 on the GST portal
- File Final return in Form GSTR-10
• Which are the activities not to be treated as Supply of goods or
services
- Services by an employee to the employer
- Services by any court or Tribunal
- Functions performed by MP, MLA, Member of Punchayat/
Municipality
- Services of funeral, burial, crematorium or mortuary
- Sale of land, sale of building
Previous year’s questions 2020
• Procedure for getting refund of GST
- File application of refund in Form GST RFD 01 on GST portal
- Choose the correct reason for refund
- Enter all the relevant details in application then submit
- Enter bank account details and upload supporting documents and
declaration
- The credit of refund will be done electronically to the applicant’s account
through NEFT, RTGS etc…
• Explain the rules regarding Input Tax Credit
- One must be a registered taxable person
- Goods and Services received is used for business purposes
- Required Supporting documents – debit note, tax invoice, supplementary
invoice
- Need actual receipt of goods and services
- Payment will be made within 6 months from supply to Seller/SP
- All GST returns such as GST-1, 2,3, 6, and 7 needs to be filed
• How can you illustrate CGST, SGST and IGST
Previous year’s questions 2021
• In case of Import, which tax levied
• IGST stands
• Input Goods
• Cascading of Taxes
• Disadvantages of GST
• Concept of GST
• Time of Supply of Goods
• Value of Supply of Goods or Services
Previous year’s questions 2021
• Advantages of GST
GST eliminates the cascading effect of tax
Decrease in price of product
Reduces the corruption
Uniformity of tax rates
Higher threshold for registration
Composition scheme for small businesses
Simple and easy online procedure
The number of compliances is lesser
• Various rates of taxes under GST
Previous year’s questions 2021
• Inspection under GST by authority
A Joint Commissioner (or an officer of higher rank) may have “reasons to
believe” that in order to evade tax, any person has done the following
- Suppressed any transaction of supply
- Suppressed stock in hand
- Claimed input tax credit in excess
- Violated of any of the provisions
- Any transporter or owner/operator of a warehouse has kept
goods that have escaped tax payment or have kept accounts
and/or goods in such a way as to evade tax
Previous year’s questions 2021

Offences Amount of Penalty

Delay in filing GST Return Rs. 200 (CGST Rs. 100 & SGST Rs. 100) –
Maximum Rs. 5,000
Not filling return 10% of Tax due or Rs. 10,000 (Higher)

Committing a fraud 100% of Tax due or Rs. 10,000 (Higher)

Not issuing Invoice 100% of Tax due or Rs. 10,000 (Higher)

Not registering under GST 100% of Tax due or Rs. 10,000 (Higher)

Incorrect Invoicing Rs. 25,000