• In India Goods & Service Tax (GST) is Applicable from 1st July 2017 in replacement of existing Indirect Tax laws (Excise Duty, Service Tax, VAT, Purchase Tax, Entry Tax and others)

Registration

• Every supplier shall be liable to be registered under GST in the state from where he makes taxable supply of Goods or Services or both if his aggregate Turnover in a Financial year exceeds

  • Rs. 40 Lakhs (in case of special category state limit is 20 Lakhs) in case of taxable supply of Goods

  • Rs. 20 Lakh (in case of special category state limit is Rs. 10 Lakh) in case of taxable supply of Services

  • Supplier can also apply registration voluntarily even if Turnover does not exceed above threshold limit.

• some exception where requirement of compulsory registration irrespective of above threshold limit:-

  • Person making Inter-state taxable Supply. (Exemption to Supply of Services upto aggregate turnover of Rs. 20 Lakh)

  • Person who are required to pay tax under Reverse charge mechanism

  • Non resident taxable person making taxable supply

  • other as specified

• Separate registration for every State is required i.e. every supplier is required to be registration in every state from where he makes taxable supply of Goods or Services.

• Single registration will be granted within State. however multiple registration may be provided subject to fulfilment of conditions.

click here for Registration

Tax Structure

• once registered, supplier must collect the following taxes and deposit with government account: -

• Under GST normally 4 type of Tax rate has been defined 5%, 12%, 18% 28%.

  • IGST - in case of inter-state supply (where seller and buyer are in different state), IGST is levied as single rate.

  • CGST / SGST - in case of intra-state supply (where Seller and Buyer both are in same state) two taxes are levied in equal proportion - CGST and SGST.

  • example:- ABC registered in Delhi, XYZ registered in Haryana, and BCD registered in Delhi.

    • if ABC sells goods to XYZ which attracts 18% GST. then he will charge IGST @ 18%

    • if ABC sells goods to BCD which attracts 18% GST. then he will charge CGST 9% and SGST 9%.

Returns

• Return is a statement containing details of goods sold, purchased, output GST Liability and Input GST Credit and Net Tax payable for the given period.

• for filing GST return, Tax payable may be divided into three broad categories: -

  • Regular tax payers

  • Tax payer opted for QRMP scheme

  • Composite Tax payer.

• Type of Returns:-

  • GSTR-1 - Monthly (Quarterly in case of QRMP Scheme)

    • it is a statement of outward supply of Goods and services.

    • Features: Bill wise details of all B2B invoices, Bill wise details of Large B2C invoices, State wise summary of small B2C invoices, Details of Credit/Debit Note issued, Export/Nil rated supply, HSN summary and List of documents issued during the period.

    • Due date is11th day from the end of month (in case of QRMP 13th day from the end of quarter)

  • GSTR-2/2A - for Reconciliation purpose only

    • upon filing of GSTR-1 by the outward supplier, GSTR-2A is auto populated in the buyers GST portal containing details of all B2B invoices and Credit/Debit Notes.

  • GSTR-3B - Summary Return of outward and Inward Tax liability

    • Simple return in which contains:

      • Outward tax liability

      • Input Tax Credit

      • Adjustment of Credit

      • Net Tax Liability

      • Payment of Tax

    • Due date is 20th day from the end of month (22nd to 24th day from the end of quarter where quarterly return applicable)

  • GSTR- 9 - Annual Return

    • Reconciliation of Books of accounts with Monthly GST return