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GST and It Ppt. GRP.6
GST and It Ppt. GRP.6
TECHNOLOGY AND
MANAGEMENT
INDIRECT TAX LAW AND GOODS
AND SERVICES TAX
PRESENTED BY-:
ANKIT KUMAR SAMAL-200415140026
KARAN SARAF- 200415140027
ABHIPSHA JENA- 200415140028
YASSI AGARWAL-200415140029
AMRUTANSH BANDHA- 200415140030
BANANI DAS-200415140064
When a person is liable for registration?
Section 22 – Persons liable for registration
Provided that where such person makes taxable supplies of goods or services or both from
any of the special category States, he shall be liable to be registered if his aggregate turnover
in a financial year exceeds ten lakh rupees.
A ‘taxable person’ under GST, is a person who carries on any business at any place in India
and who is registered or required to be registered under the GST Act. Any person who
engages in economic activity including trade and commerce is treated as a taxable person .
When a person is not liable for
registration?
As per the said section the following are the persons not liable for registration under GST:
1.Person engaged exclusively in supplying goods or services or both not liable to tax.
2.Person engaged exclusively in supplying goods or services or both exempt from tax.
1.Documents creating some kind of interest in the immovable property having value below
one hundred rupees.
2.Receipts or documents related to payment of the consideration for creating interest in such
immovable property where the value is less than Rs. 100.
3.Documents of lease agreement less than one year and which do not come under section 17.
4.Will and also different documents which are not mentioned under Section 17.
How to apply for registration?
A Step-By-Step Guide To Company Registration Process In India
2. Supplies made between multiple place of business holding different GSTIN, shall be chargeable to GST
and a tax invoice or bill of supply shall also be issued.
Special provisions relating to casual taxable
person and non-resident taxable person.
The certificate of registration shall be valid for the period specified in the application for
registration.
OR
3. All the fields except those, which are covered under core fields come under a Non-core field.
1. Log in to the GST Portal and click the Cancellation of Provisional Registration.
1.
Name and Address. 11. Tax payable on reverse charges
2.
GST/GSTIN Number. 12. Revised invoice
3.
GST Tax Invoice Number. 13. Supplementary invoice
4.
Date of GST Invoice. 14. Terms of payment details
5.
Recipient Details in GST Invoice. 15. Signature of the supplier
6.
HSN Code or SAC Code.
7.
Description of Goods or Description of Services.
8.
Total Value of Sales and Taxable Value of Sales.
9.
Rate of GST
10.
Amount of GST Charged
Issuance of tax invoice in case of
continuous supply of service
Continuous supply of services :- Supply of services which is provided or will be
provided continuously or on recurrent basis under a contract for a period exceeding three
months with periodic payment obligations.
4. PAN and GSTIN of the supplier and customer 12. Signature of the supplier or his authoritative
DEBIT NOTE: A debit note is issued in exchange for a credit note. A credit note is issued in
exchange for a debit note. The seller issues debit notes to the buyer if the buyer is
undercharged or the seller has sent additional goods. The buyer issues a credit note as an
acknowledgement of a debit note received.
CREDIT NOTE: A credit notes are typically used when there has been an error in an
already-issued invoice, such as an incorrect amount, or when a customer wishes to change
their original order
When to issue supplementary tax
invoice
A supplementary tax invoice is an invoice that a taxable person issues if any deficiency is
found in a tax invoice already issued by the said taxable person. A supplementary invoice is
also known as a debit note.
A supplementary invoice is used to rectify the deficiency related to the original tax invoice
under GST. There can be some situations where the taxable value of the goods or services has
been undermined in the original tax invoice, resulting in a lesser tax being charged or other
such deficiencies.
Hence, an upward revision may be required. In such cases, a supplementary invoice or debit
note needs to be issued. Apart from taking care of such revision, the particulars mentioned
mandatorily in the invoice are mentioned in the “Format of Revised Invoice”.
ISD invoice in case of input service
distributor
An Input Service Distributor (ISD) is a taxpayer that receives invoices for services used by its branches. It distributes
the tax paid known as the Input Tax Credit (ITC), to such branches on a proportional basis by issuing ISD invoices.
The branches can have different GSTINs but must have the same PAN as that of ISD“
ISD or an Input Service Distributor is a type of taxpayer under GST who needs to distribute the GST input tax
credits that pertain to its GSTIN to its units or branches having different GSTIN but registered under the same PAN.
The head office of M/s ABC Limited is located in Bangalore having branches in Chennai, Mumbai and
Kolkata. The head office incurred annual software maintenance expense (service received) on behalf of all its
branches and received the invoice for the same. Since the software is used by all its branches, the input tax credit of
entire services cannot be claimed in Bangalore. The same has to be distributed to all three locations. Here, the head
office at Bangalore is the Input Service Distributor.
Cases where issuance of tax is not required
Supply of goods: As per section 12(2): ‘The time of supply of goods shall be the earlier of the following dates, namely:
(a) the date of issue of invoice by the supplier or the last date on which he is required, under section 31, to issue the invoice
with respect to the supply;
(b) the date on which the supplier receives the payment with respect to the supply’.
Supply of service: As per section 13(2): ‘The time of supply of services shall be the earliest of the following dates, namely:
(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under section 31 or the date
of receipt of payment, whichever is earlier;
(b) the date of provision of service, if the invoice is not issued within the period prescribed under section 31 or the date of
receipt of payment, whichever is earlier’
Records to be maintained
According to Section 35 of the GST Act, all taxable persons under GST are required to maintain the following
records at their principal place of business :Details of production or manufacture of goods;
In case of more than one place of business, then the taxpayer shall keep all the accounts relating to each of
the places of business. In addition, the taxpayer may maintain the Accounts and records under GST in both
electronic or book format.
Period of retention of accounts
Provided that a registered person, who is a party to an appeal or revision or any other proceedings before any
Appellate Authority or Revisional Authority or Appellate Tribunal or court, whether filed by him or by the
Commissioner, or is under investigation for an offence under Chapter XIX, shall retain the books of account and
other records pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period
of one year after final disposal of such appeal or revision or proceedings or investigation, or for the period specified
above, whichever is later.
2.The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include
3.The details of outward supplies furnished by the supplier shall be made available electronically to the
concerned registered person
4.The details of inward supplies added corrected or deleted by the recipient in his FORM GSTR-2 under
section 38
Rule 60 – Form and manner of
ascertaining details of inward supplies
1.The details of outward supplies furnished by the supplier in FORM GSTR-1
3.The details of invoices furnished by an Input Service Distributor in his return of FORM
GSTR-5 under rule 65
4.The details of tax deducted at source furnished by the deductor under sub-section (3) of
section 39 in FORM GSTR-7
Form and manner of submission of
monthly return.
(1) Every registered person other than a person referred to in
section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017)
(2)Every registered person required to furnish return, under sub-rule (1) shall, subject to the provisions of section 49
(3)Every registered person required to furnish return, every quarter, under clause (ii) of subrule (1) shall pay the tax
due under proviso to sub-section (7) of section 39
(4) The amount deposited by the registered persons under sub-rule (3) above, shall be debited while filing the return
for the said quarter in FORM GSTR-3B
(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 or in FORM GSTR-2 under
section 38 has been extended, the return specified in sub-section (1) of section 39 shall, in such manner and subject to
such conditions as the commissioner may, by notification specify, be furnished in FORM GSTR-3B electronically
through the common portal, either directly or through a facilitation centre notified by the commissioner.
How to file annual return?
The following steps are involved in the filing of annual return;
When late fee is charged ?
As per the GST laws, late fee is an amount charged for delay in filing the GST returns. A
prescribed late fees will be charged for each day of delay, when a GST registered business
misses filing GST returns within the prescribed due dates.
The late fee should be paid in cash and the taxpayer can not use the Input Tax Credit(ITC)
available in electronic credit ledger for payment of late fee.
The late fee is also applicable for the delay in filing nil returns. However, currently, GST
portal is aligned to charge a late fee only on returns GSTR-3B, GSTR-4, GSTR-5, GSTR-
5A, GSTR-6, GSTR-8, GSTR-7 and GSTR-9 only.
How to pay tax ?
Step-1
To pay taxes online, login to http://www.tin-nsdl.com > Services > e-payment : Pay Taxes Online or click here on the tab "e-pay taxes"
provided on the said website. Provide proper link of e-payment
Step-2
Select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282, ITNS 283, ITNS 284 or Form 26 QB demand payment (only for TDS on
sale of property) as applicable.
Step-3
Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, address of
the tax payer and the bank through which payment is to be made etc.
Step-4
On submission of data entered, a confirmation screen will be displayed. If PAN / TAN is valid as per the ITD PAN / TAN master, then
the full name of the taxpayer as per the master will be displayed on the confirmation screen.
Steps continued …..
Step-5
On confirmation of the data so entered, the taxpayer will be directed to the net-banking site of the
bank.
Step-6
The taxpayer has to login to the net-banking site with the user id / password provided by the bank for
net-banking purpose and enter payment details at the bank site.
Step-7
On successful payment a challan counterfoil will be displayed containing CIN, payment details and
bank name through which e-payment has been made. This counterfoil is proof of payment being made.
Electronic credit ledger
All eligible Input Tax Credit that is claimed by a registered dealer in the GST returns (GSTR-2 or
GSTR-3B) reflects in Electronic Cash Ledger. Credit in Electronic Cash Ledger can be used only for
payment of tax. This means that the balance of Electronic Credit Ledger cannot be utilized for payment
of interest, penalty or late fees. Interest and Penalty can be paid only through actual cash payment.
Specific order and restrictions for utilizing ITC (IGST, CGST, SGST) for payment of GST liability:
•Credit of IGST can be utilized against all any tax liability in this order – IGST, CGST or SGST/UTGST.
•Credit of CGST cannot be utilized for payment of SGST. It can be set-off in the following order –
CGST, IGST.
•Credit of SGST/UTGST cannot be utilized for payment of CGST. SGST can be set-off in the following
order – SGST/UTGST, IGST.
Electronic cash ledger
This is like an e-wallet. Any GST payment made in cash or through a bank reflects in the
Electronic Cash Ledger. After deduction of Input Tax Credit (ITC) any balance tax liability
has to be paid using balance in Electronic Cash Ledger. For example-
Mr. A has a GST on sales of Rs 50,000. He also has an Input Tax Credit on purchases of Rs
35,000. The balance of his Electronic Cash Ledger is Nil.
The GST liability of Rs. 15,000 has to be paid in the form of cash/bank payment. Mr. A will
deposit Rs 15,000. This will be shown in the Electronic Cash Ledger of Mr. A. The balance of
the ledger will be utilized for payment of GST.
TDS and TCS
TDS and TCS under GST is an acronym for tax deduction at source and tax collection at
source. These terms are even present under the Income Tax Law. TDS and TCS under GST
came into effect from 1st October 2018.
TDS refers to the tax which is deducted when the buyer of goods or services such as
government departments, makes payment under a business contract. On the other hand
TCS refers to the tax which is collected by the e-commerce operator when a seller supplies
some goods or services through its website and the payment for that supply is collected by
the e-commerce operator.
TDS and TCS continued….
Rate of TDS to be deducted under GST-
The rate of TDS notified under the GST laws is 2%(1%CGST+ 1%SGST or 2%IGST) on
the payments made to the seller of taxable goods or services.
If the total value of supply under a contract exceeds Rs. 2.5 lakhs then the person/entity
would be liable to deduct TDS.
Any dealers or traders selling goods or services online would get the payment after
deduction of 1% tax (0.5% CGST+0.5% SGST OR 1% IGST).