It can facilitate seamless movement of goods across states and reduce the transaction costs of

business.

➢ It is good for export oriented business. Because it is not applied for goods/Services which are
exported out of India.

➢ In the long run, the lower tax burden could translate into lower prices on goods and consumer’s.
➢ The suppliers, manufacturers, wholesalers and retailers are able to recover GST incurred on
input costs as tax credits. This reduces the cost of doing business, thus enabling fairer prices
for consumer’s.

PROCEDURE OF GST:
❖ Every person who is registered under the pre-GST law (i.e., Excise, VAT, Service tax etc.)
Needs to register under GST.
❖ When a business which is registered has been transferred to someone, the transferee shall
take registration with effect from the date of transfer.
❖ Anyone who drives inter-state supply of goods**
❖ Casual taxable person
❖ Non-resident taxable person.
❖ Agents of a supplier.
❖ Those paying tax under the reverse charge mechanism.
❖ Input Service distributor.
❖ E-commerce operator or aggregator.
❖ Person supplying online information and database access or retrieval Services from a place
outside India to a person in India, other than a registered Taxable Person.

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Department of Commerce , Rajdhani college, Bhubaneswar
WHAT ARE THE DOCUMENTS REQUIRED TO REGISTER UNDER GST:
PAN is mandatory to apply for GST registration (except in case of non-resident).

The document/ details required to register for GST are:

GST REGISTRATION FEES:

Business can register for GST and obtain GSTIN free of cost.

However, GST registration is a tedious 11 step process which involves submission of many
Business details and scanned documents.

You can opt for clear tax goods and services tax (GST) Registration Services where a GST expert
will assist you end to end with GST registration.

WHAT IS GSTIN?
All businesses that successfully register under GST are assigned unique Goods and
Services tax Identification Number also known as GSTIN.

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Department of Commerce , Rajdhani college, Bhubaneswar
TAX INVOICE, CREDIT & DEBIT NOTES:
There shall be separate invoice for taxable supplies called as tax invoice. For non-taxable goods a
bill shall be issued.

POINT OF TAXATION (TIME OF SUPPLY) FOR GOODS:

❖ Normal supply of goods- earliest of removal of goods (in case of movable) made available
to recipient (non-movable) invoice raising, recipient of payment, accounting books.
❖ Continuous supply of goods- on successive payments/ statement of account or invoice/
payment.
❖ Confirmation of supply.

FOR SERVICES:

1. Normal Supply Of Services

❖ When invoice raise within time- Earliest of invoice raising or recipient of payment.

❖ Otherwise- Earliest of completion of service, receipt of payment or accounting in books.

2. Continuous supply of Services- when due date is ascertainable from contract, the due date
else each time payment is received/ invoice issued, in case payment is linked to completion
of event.
3. Reverse charge- Earliest of date of receipt of goods/Services, payment, invoice, Accounting
in books.

PLACE OF SUPPLY:
FOR GOODS: Place where the goods are delivered except in case of Goods not involve
movement, assembled/ installed at site- location of goods.

FOR SERVICES:

In case of a registered person- location of such registered person.

In case of a unregistered recipient- address the recipient and if it is not available, the location of
the supplier of Services.

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Department of Commerce , Rajdhani college, Bhubaneswar
PAYMENT OF CHALLANS:
FEATURES OF PAYMENT PROCESS UNDER PROPOSED GST SCHEME

Tax payable as per return shall be paid on or before the last date for filling the return, i.e. on or
before 20th of the next month in case of monthly return.

PROPOSED MODE OF PAYMENTS:

Payment of challah can be through internet banking through authorized banks or credit/debit card
or over the counter payment (OTC) through authorized banks or payment through NEFT/ RTGS
from any bank.

Payment by book adjustments would not be allowed.

BIRD'S EYE VIEW OF GST RETURNS:

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Department of Commerce , Rajdhani college, Bhubaneswar
 MAINTENANCE OF RECORD:
Every registered person shall be required to keep and maintain records of production, inward and
outward supplies, stock, input tax credit availed, tax payable and paid at least for 60 months.
AUDIT:

❖ Audit of all returns compulsorily.

❖ Around 70% state- 30% central.

REFUND PROCESS:
Refund may arise on account of
❖ Excess payment of tax due to mistake or inadvertence.
❖ Export of goods/Services.
❖ Finalization of provisional assessment.
❖ Refund of pre-deposit for filling appeal.
❖ Payment of duty/tax during investigation but no/ less liability arises at the time of
finalization of investigation/adjudication.
❖ Refund of tax payments on purchases made by Embassies or UN bodies.
❖ Tax credit on inputs used for manufacturing/generation/production/creation of tax free
supplies or Non- GST supplies.

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Department of Commerce , Rajdhani college, Bhubaneswar
 CHAPTER -3

Presentation, Analysis & Findings

❖ Present taxes to be subsumed

❖ Need of Goods and Service Tax(GST)
❖ GST Analysis & Opinions
❖ Impact of GST On Automobile Industry
❖ Global Experience of GST

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Department of Commerce , Rajdhani college, Bhubaneswar
3.1 GST SUBSUMED PREVIOUS TAX STRUCTURE

GST proposes to subsume the following indirect taxes currently levied by the Central Government
(CG) and the state government (SG).

❖ All goods and services are covered under GST except alcoholic liquor for human
consumption. Excise duty would be levied by the SGs on production and VAT would be
levied by the SGs on sale of liquor for human consumption

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Department of Commerce , Rajdhani college, Bhubaneswar
 ❖ 5 petroleum products namely, petroleum crude, natural gas, motor spirit (petrol), high
speed diesel and aviation turbine fuel would be brought under GST from the date to be
notified on recommendation of GST council. These 5 petroleum products continue in the
union list of articles 246 of the constitution of India for excise duty & state list for VAT.
Other petroleum products like LPG, Naphtha, kerosene, fuel oil etc. Would be covered
under GST.
❖ Tobacco products are covered under GST and the CG is empowered to levy Excise duty
on the same over and above GST.

3.2 NEED OF GOODS AND SERVICE TAX (GST) :

India has a 3-tier federal structure, compromising the union Government, the state government and
the urban / rural local bodies. The power to levy taxes and duties is distributed among the 3 tires
of governments, in accordance with the provisions of the India Constitution. Principal indirect
taxes levied in India are listed.

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Department of Commerce , Rajdhani college, Bhubaneswar
3.3 GST ANALYSIS AND OPINIONS:
GST has brought in “one nation one tax” system, but its effect on various industries is slightly
different. The first level of differentiation will come in depending on whether the industries deals
with manufacturing, distributing and retailing or is providing a service.

IMPACT OF GST ON MANUFACTURERS, DISTRIBUTOR AND RETAILERS:

GST is a boost competitiveness and performance in India’s manufacturing sector. Declining export
and high infrastructure spending are just some of the concerns of the sector. Multiple indirect taxes
had also increase the administrative cost for manufacturers and distributors and with GST in place,
the compliance burden has eased and this sector will grow more strongly.

But due to GST business which was not under the tax bracket previously will now have to register.
This will lead to lesser tax evasion

IMPACT OF GST ON SERVICE PROVIDER:

As of March 2014, there was 12, 76,861 service tax assesses in the country out of which only the
top 50 paid more than 50% of the tax collected nationwide. Most of the tax burden is borne by
domains such as it services, the insurance industry, business support services, banking and
financial services, etc. This Pan-India business already worked in unified market, and when she
compliance burden becoming lesser.
But they will have to separately register every place of business in each state.

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Department of Commerce , Rajdhani college, Bhubaneswar