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CAGaganKedia|[email protected] Page0
CAGaganKedia|[email protected] Page1
Dear Readers,
This GST Compliance Handbook contains all basic information for the reader to get the ease of understanding of the relevant compliances under the GST Act and Rules as implemented from 1st July, 2017.
Various important provisions of the GST Act and the Rules have been set out in a crisp format in this handbook to give a bird’s eye view on the subject. This handbook focuses on the understanding of the concept of GST, rather than plain reading of the Law.
I sincerely believe that the readers would find the contents of this GST Compliance Handbook useful and I look forward to constructive views and suggestions for further improving the contents of this Handbook.
For ease of understanding, various technical terms of GST have been replaced in this handbook by a simpler and generic term, such as: � Seller is interchangeably used for Outward Supplier. � Buyer is interchangeably used for Inward Supplier. � Sale is interchangeably used for Supply / Outward Supply. � Purchase is interchangeably used for Inward Supply.
Disclaimer: The contents herein are specifically prepared for information & personal reference of intended recipients only. The information cited in this Handbook has been drawn from the GST Acts, Rules and Notifications issued till 1st July, 2017, prevailing at the time of preparation which may have undergone change from time-to-time. While every effort has been made to keep the information cited in this Handbook error free, I do not take the responsibility for any typographical or clerical error which may have crept while compiling this Handbook.
CA Gagan Kedia, Kolkata, 2017
PREFACE
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SL NO.
PARTICULARS PAGE NO.
1. Flow Chart of Reading GST 3
2. Registrations under GST 4 – 6
3. Invoicing under GST 7 – 11
4. Accounting of GST 12 – 13
5. Payment of Taxes under GST 14 – 16
6. Decoding RCM - Reverse Charge Mechanism 17 – 20
7. All about Input Tax Credits (ITC) under GST 21 – 24
8. Returns under GST 25 - 27
9. Pure Agent 28
10. State Code list 29
11. About the Author 30
12. Important Links 31
INDEX
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Any Transaction
Check for Charging Section / Levy
[Ref: Sec 9 of CGST Act (for local supply) /Sec 5 of IGST Act (for Interstate supply)
Is it a Supply[Ref: Sec 7 & 8, Sch1, 2 & 3 of CGST Act]
Yes
Is it supply of Goods or Services
[Ref : Sec 2(52) Goods & 2(102) Services]
CHARGEABLE TO GST
Check for EXEMPTIONS (if any)
[Ref: Sec 11 / 6 of CGST / IGST Act) TAXABLE under GST
Flow Chart of Reading GST
NO
NO
NO GST
Ref: Sec 15 of CGST Act & the Valuation Rules.
ON WHAT VALUE ?
Ref: Various Govt Notifications.
Note: INPUT TAX CREDITS available
u/s. 1621 of CGST
Act.
AT WHAT RATE ? / How Much Tax
?
Ref: Sec 12 & 13 of CGST Act &
govt notifications.
TIME OF PAYMET
Normally –
Supplier
Some Cases - under RCM
Ref : Sec9(3) & 9(4) of CGST Act.
WHO SHALL PAY TAX TO GOVT?
FIRST CHECK whether inter-
state supply or intra-state
supply.
[Ref: Sec 10,11 or 12,13 of
the IGST Act for Place of
Supply]
NOW
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(A) WHEN TO TAKE REGISTRATION ?
� When aggregate turnover in a financial year exceeds INR 20 lakhs.
� Aggregate Turnover includes taxable supply + exempt supply + exports, of all units under same PAN number on all India basis.
� The limit is reduced to INR 10 lakhs in case of 11 special category states that is 7 north east states & 4 hill states (Sikkim, Uttarakhand, Himachal Pradesh & Jammu & Kashmir)
� Registration needs to be taken within 30 days of being liable to register.
2. REGISTRATIONS UNDER GST
When to Take Registration?
[Refer point A]
When Mandatory to take Registration?
[Refer point B]
When NOT to Take
Registration? [Refer point C]
In WHICH STATE should I take Registration? [Refer point D]
HOW to take Registration? / PROCEDURES. [Refer point E]
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(B) WHEN MANDATORY TO TAKE REGISTRATION ?
Following persons need to take mandatory registrations & pay taxes accordingly. (That is even if their turnover or supply is less than 20L / 10L, registration is mandatory)
� If supplying inter-state. (Applicable even for Services)
� If liable to pay tax under Reverse Charge (RCM)
� Agents supplying goods/services on behalf of another (even if their agency commission is less than 20L / 10L)
� Persons supplying through e-commerce portal (like Amazon, Flipkart, Paytm, etc.) or an e-commerce operator itself.
� A casual taxable person or a non-resident person amongst others.
(C) WHEN NOT TO TAKE REGISTRATION ?
In the following cases, a person is not liable to take Registration under GST:
� If a person is engaged in exclusively supplying goods / services:
� Which is wholly exempt from GST (e.g.: any nil rated goods or any exempted services such as health care services, etc.)
� Tax on which is payable under RCM by the receiver. (e.g.: Services of an insurance agent providing agency services to Insurance Company is under RCM. Now if the agents’ entire services are falling under RCM, then the insurance agent is not liable to take registration, as the Insurance Company will be discharging the tax liability.)
� An agriculturist is not liable to take registration to the extent of supply of produce out of land cultivation.
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(D) IN WHICH STATE SHOULD I TAKE REGISTRATION ?
� Registration is State Specific. (1 registration in 1 State)
� Registration is required in the State FROM WHERE taxable supplies are made (& not in any other state)
� Example 1 – A Ltd. has one factory in West Bengal and another in Orissa. Both the factories supply taxable goods. It also has a representative office in Delhi which is not supplying any taxable goods. So the Registrations are required in West Bengal & Orissa and NOT in Delhi. However, an ISD registration may be opted in Delhi if required.
� Example 2 – X Ltd. has a factory in Gujarat which sells major of its goods to a customer Maharashtra. In this case, registration is required only in Gujarat & not in Maharashtra.
(E) HOW TO TAKE REGISTRATION? / PROCEDURES
� Registration is PAN based. So having an Income-Tax PAN is must.
� Separate registration for separate business verticals in one state is optional to the assessee.
� Separate Registration is required for an ISD (to be able to distribute credit) or for cases where TDS/TCS is applicable.
� Application for registration is required to be made online on the common portal and requisite documents are to be submitted therein. Application needs to be electronically verified by DSC or Aadhar / EVC. DSC is mandatory for Companies & LLP.
� Registration will be deemed granted if no action taken or no clarifications sought within 3 working days of applying online.
� Registration Certificate in REG-06 shall be issued and should be displayed by the assessee at all its place of business.
*****
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(A) WHEN TO ISSUE AN INVOICE?
SL NO. SUPPLIER TIME LIMIT 1. Supplier of Taxable
Goods On or before date of removal/ making goods available to buyer.
2. Supplier of Taxable Services
Within 30 days from the date of supply of Services
3. Insurer/ Banker/ FI/ NBFC
Within 45 days from the date of supply of Services
4. Insurer/ Banker/ FI/ NBFC/ Telecom Operator/ Distinct Persons notified u/s 25
Before or at the time supplier Records the same in his Books of A/c OR Before Expiry of the Quarter in which the supply is made
When to issue an Invoice?
[Refer point A]
What type of Invoice/
Document to be issued?
[Refer point B]
How many copies of Invoice
Required? [Refer point C]
3. INVOICING UNDER GST
Contents of a Tax Invoice
[Refer point D]
Transportation of goods without
issue of Invoice
[Refer point E]
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(B) WHAT TYPE OF INVOICE / DOCUMENT TO BE ISSUED?
TRANSACTION DOCUMENT TYPE
Supplier of Goods / Services Tax Invoice
Transportation of Goods without issue of Invoice (refer point E below for more details)
Delivery Challan
Supplier of Exempted Goods / Services or Supplier Registered under Composition Scheme
Bill of Supply
On Receipt of Advance Payment for any supply of Goods/ Services
Receipt Voucher
Refund to be made where no supply has been made on Receiving Advance under Receipt Voucher
Refund Voucher
Registered Person liable to pay tax for Goods/ Services Received from Unregistered Person
Self-Invoice [Sec. 31(3)(f)]
Registered Person liable to pay tax under RCM [9(3) or 9(4)] at the time of Making Payment to the Supplier
Payment Voucher
Goods Transport Agency Tax Invoice/ Any other Document
Input Service Distributor ISD Tax Invoice/ ISD
Credit Note
Insurer/ Banker/ FI/ NBFC Tax Invoice/ Any other Document
Passenger Transport Service Tax Invoice/ Ticket
in Any Form
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(C) HOW MANY COPIES OF INVOICE REQUIRED?
(D) CONTENTS OF A TAX INVOICE
a. Name, address and ;
b. a consecutive not exceeding 16 characters and unique for a financial year;
c. of its issue;
d. name, address and or Unique Identity Number , if registered;
e. name and address of the recipient and the address of delivery, along with the name of the State and its code, if such
and where the value of the taxable supply is ;
ISSUE TAX INVOICE
In Case of Supply of Goods
In Case of Supply of Services
Original
for
Recipient
Duplicate
for
Transporter
Triplicate
for
Supplier
Original
for
Recipient
Duplicate
for
Supplier
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f. and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the of the taxable supply
rupees that such details be recorded in the tax invoice;
g. 0, 2 or 4 digits of for goods or services;
h. of goods or services;
i. in case of goods and unit or Unique Quantity Code thereof;
j. total value of supply of goods or services or both;
k. of the supply of goods or services or both taking into account discount or abatement, if any;
l. (central tax, State tax, integrated tax, Union territory tax or cess);
m. charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);
n. along with the name of the State, in the case of a supply in the course of inter-State trade or commerce;
o. if the same is different from the place of supply;
p. whether the tax is payable on basis; and
q. or digital signature of the supplier or his authorised representative..
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(E) TRANSPORTATION OF GOODS WITHOUT ISSUE OF INVOICE
a) and of the delivery challan;
b) name, address and , if registered;
c) name, address and GSTIN or UIN of the consignee, if registered;
d) ;
e) quantity (provisional, where the exact quantity is not known);
f) taxable value;
g) tax rate and tax amount, where the transportation is for supply to the consignee;
h) place of supply, in case of inter-State movement; and
i) Signature.
*****
ISSUE OF DELIVERY CHALLAN
Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known
Goods transported for job work
Transportation of goods for reasons other than by way of supply.
(E.g. Branch transfer within same State b/w units having same GSTIN)
Such other supplies as may be notified by the Board
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4. ACCOUNTING UNDER GST
Sample Journal Entries [Refer point A]
� To be maintained REGISTRATION NO. Wise.
� Should Match with ELECTRONIC CREDIT LEDGER as per portal.
� To be maintained REGISTRATION NO. Wise.
� And RATE WISE for B2C transactions below 2.5L
� To be maintained REGISTRATION NO. Wise.
� Should Match with ELECTRONIC LIABILITY REGISTER as per portal.
� RCM Liability to be always paid through cash ledger & not by utilising ITC.
� RCM liability u/s 9(3) – LIST or 9(4) – from unregistered person should be separately maintained.
Ledgers to be Maintained
Relating to INPUT TAX � Input CGST A/c. (Local sales) � ” SGST A/c. (Local sales) � ” IGST A/c. (Inter-State sales) � ” Cess A/c. (If applicable)
Relating to OUTPUT TAX � Output CGST A/c. (Local sales) � ” SGST A/c. (Local sales) � ” IGST A/c. (Inter-State sales) � ” Cess A/c. (If applicable)
Relating to TAX LIABILITY � CGST Liability A/c. � SGST Liability A/c. � IGST Liability A/c. � GST Cess Liability A/c.
Relating to REVERSE CHARGE � CGST Liability under RCM A/c. � SGST Liability under RCM A/c. � IGST Liability under RCM A/c.
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(A) SAMPLE JOURNAL ENTRIES
REGULAR PURCHASE & SALE NatureofTransaction
JournalEntry Debit(Rs.)
Credit(Rs.)
GoodspurchasedfromadifferentState.
Purchase A/c Dr
Input IGST A/c Dr To Vendor / Cash / Bank A/c Cr
10,000
1,800
11,800
Afteradding50%margin,samegoodssoldlocally.
Debtors / Cash / Bank A/c. Dr
To Sales A/c. Cr
To Output CGST @ 9% Cr
To Output SGST @ 9% Cr
17,700
15,000
1,350
1,350
Atthemonthend,whenNETTAXLIABILITYisdetermined
Output CGST @ 9% Dr
Output SGST @ 9% Dr
To Input IGST Cr
To SGST Liability (Bal Fig) Cr
1,350
1,350
1,800
900
WhenNetTaxLiabilityispaidthroughCash
SGST Liability A/c. Dr
To BANK A/c. Cr
900
900
PURCHASES LIABLE FOR TAX UNDER RCM NatureofTransaction
JournalEntry Debit(Rs.)
Credit(Rs.)
Taxablegoods/servicespurchasedlocallyfromUnregisteredPerson
Purchase or Expense A/c Dr
Input CGST A/c. Dr
Input SGST A/c. Dr
To Vendor / Cash / Bank A/c Cr
To CGST Liability under RCM Cr
To SGST Liability under RCM Cr
10,000
900
900
10,000
900
900
NOTES: 1) Since the unregistered seller will not charge any GST,
hence the payment to the seller will be of basic value of
goods / services (i.e. Rs. 10,000)
2) The tax liability under RCM needs to be paid in cash and
is eligible as Input Tax Credit, Subject to section 16 & 17.
*****
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(A) HOW FREQUENTLY TO PAY TAX?
PERSON TIME LIMIT
Every Registered Person Not later than the last date on which he is required to furnish Return i.e., within 20th of the Succeeding month
Composite Dealer Not later than the last date on which he is required to furnish Return i.e., within 18th of the month succeeding the quarter
How Often to Pay Tax? / Frequency of Paying
Tax [Refer point
A]
Who has to Pay Tax?
[Refer point B]
How to Pay Tax?
[Refer point C]
5. TAX PAYMENTS UNDER GST
How to Deposit Tax in
Challan? [Refer point
E]
Sequence of Paying
Tax
[Refer point D]
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(B) WHO HAS TO PAY TAX?
(C) HOW TO PAY TAX?
� Either by Adjusting Available Input Tax Credit.
OR
� By Cash / Bank (i.e. through Challan)
(D) ORDER OF PAYING TAX
� FIRST, pay self-assessed tax and other dues for all the previous periods.
� THEN, pay self-assessed tax and other dues for the current period.
� THEREAFTER, any other amount payable under this Act or the rules made there under including the demand determined under section 73 or section 74.
LIABILITY TO PAY TAX
Supplier of Goods/ Services
Recipient of Goods/ Services
under RCM
Third Person (TDS Deductor/ TCS Collector)
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(E) HOW TO DEPOSIT TAX THROUGH CHALLAN
NEFT/ RTGS
Debit/ Credit Card
Internet Banking
PROCESS OF PAYMENT:
1. Generate Challan in GST PMT-06 – Valid for 15 days 2. Make Payment by any of the above modes.
(F) FAQs
Q1. What if I don’t pay tax in time?
� Return will be invalid � Interest liability @ 18% p.a.
*****
MODES OF PAYMENT
Cash/ Cheque/ Demand Draft
Online Methods
Maximum amount = Rs. 10,000 per challan per tax period
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RCM – I Section 9(3)
� A LIST of Goods/ Services has been notified by the Government.
� If the transaction falls in this list, applicability of RCM arises (no matter the services are received from a registered or unregistered person)
6. RCM or REVERSE CHARGE MECHANISM Cases where liability to pay tax to the government is on
Supply Receiver and not Supplier.
RCM – II Section 9(4)
� Where the purchases
of goods/ services are made by a registered person from an unregistered person, the applicability of RCM u/s 9(4) arises.
Where Aggregate Value of Supplies in a day is less than Rs.5000/- then GST on such supply will not be required to be paid under RCM.
RCM u/s 9(4) where goods are purchased from Composite Dealer as he is a Registered person under GST.
Refer Table A & B below for the RCM List.
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(A) NOTIFIED SUPPLIES OF GOODS UNDER RCM
SL No.
Description of supply of Goods
Supplier of goods Recipient of supply
1. Cashew nuts, not shelled or peeled
Agriculturist Any registered person
2. Bidi wrapper leaves (tendu)
Agriculturist Any registered person
3. Tobacco leaves Agriculturist Any registered person
4. Silk yarn Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn
Any registered person
5. Supply of lottery. State Government, Union Territory or any local authority
Lottery distributor or selling agent.
(B) NOTIFIED SUPPLIES OF SERVICES UNDER RCM
SL No.
Description of supply of Service
Supplier of Service
Recipient of Service
1. Transport of Goods by
Road services.
GTA Person Registered under GST, a body corporate or a Partnership Firm (amongst others)
2. Legal Services by Advocate
An advocate or firm of advocates.
Any business entity located in the taxable territory.
3. Services supplied by an arbitral tribunal.
An arbitral tribunal.
Any business entity located in the taxable territory.
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SL No.
Description of supply of Service
Supplier of Service
Recipient of Service
4. Sponsorship Services Any person A body-corporate or a partnership firm located in the taxable territory.
5. Services BY Government (Central, State, UT, Local Authority) Except following:
a. Renting of immovable
property
b. Transport of goods or passenger.
c. Certain Services by dept. of post.
d. Services in relation to an aircraft or vessel......
Central Government, State Government, Union Territory Or Local authority
Any business entity located in the taxable territory.
6. Services by Director A director of a company or a body corporate
The company or a body corporate located in the taxable territory.
7. Insurance Services An insurance agent
Any person carrying on insurance business, located in the taxable territory.
8. Recovery Agent Services A recovery agent
Banking Company or a Financial Institution or a NBFC located in taxable territory.
9. Services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use of a copyright relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like.
An Author or a music composer, or a photographer, or an artist, or the like.
Publisher, music company, producer or the like, located in the taxable territory.
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(C) FAQs
1. Is Registration mandatory in case tax is required to be paid under RCM?
� Yes, for example, even when supplying exempted goods / services, registration is required in case RCM u/s. 9(3) is applicable .
2. Whether a Composite dealer also needs to pay tax under RCM?
� Yes, under both the sections of RCM, the Composite Dealer is liable to pay tax at the regular rate of goods/ services received.
3. Whether the liability under RCM can be paid through ITC?
� No, ITC cannot be used to pay tax liability under RCM. Which means that the liability of tax under RCM can only be paid through Cash/Chq/Bank.
4. When does the liability to pay tax arise?
� For Goods : Earlier of (a) receipt of goods, (b) payment made to vendor or (c) 31st day from purchase bill date.
For Services : Earlier of (a) payment made to vendor or (b) 61st day from purchase bill date.
5. Whether ITC is available under RCM?
� The service recipient can avail Input Tax credit on the Tax amount that is paid under reverse charge on goods and services, the only condition is that the goods and services are used or will be used for business or furtherance of business.
*****
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Fulfilled
N
O
W
Input Tax Credit (ITC) means credit of tax already paid on purchases that can be adjusted
against tax collected on sales. The balance (if any) is required to be paid to government.
ELIGIBLE CREDIT
u/s 16 (1) of CGST Act
ITC is eligible if goods /
services are used or
intended to be used in the
course or furtherance of
business.
BLOCKED CREDIT
u/s 17 (5) of CGST Act
Certain goods / services
are specially listed,
wherein ITC on purchase
of such goods / services
are not available (except few cases)
[Refer Point A]
First Check whether
the credit falls under
Eligible credit or
Blocked credits.
Then check the
conditions to be
fulfilled to claim the
credit & time available
to avail the credit
Check for Conditions to be
fulfilled for availing credit u/s
16(2) of CGST Act (4 conditions)
[Refer Point B]
Check for Time period
to claim / avail the ITC
u/s 16(4) of CGST Act
[Refer Point C]
7. INPUT TAX CREDIT
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A. BLOCKED CREDITS
Sl.No.
DescriptionofBlockedGoods/Service
Conditionsforclaimingsuchcredit
1. Motor Vehicle & Other
Conveyance
Further taxable supply of:
a) Such vehicle & conveyance
b) Transportation of passenger
c) Imparting training (for flying, driving,
navigation etc.)
Or for Transportation of Goods
2. Food & Beverages, Outdoor
Catering When inward supply is used for making
outward supply of same category of
goods/services.
3. Beauty Treatment, Cosmetic
& Plastic surgeries
4. Healthcare Services
5. Membership of a club, health
and fitness centre
6. Rent acab service a) When Obligatory for an employer to
provide such service to its employees
under Govt. notification
b) When inward supply is used for making
outward supply of same category of
goods/services.
7. Life insurance, Health
insurance
8. Travel Benefits to Employees
on vacation
9. Works Contract Service (in relation to immovable property)
When input service is used for making
outward supply of works contract service.
10. Purchase of Goods or Services for
Construction of Immovable
Property (on own account)
11. Local purchases by a Non
resident taxable person
12. Goods/services used for personal
consumption
13. Goods Lost/ Stolen/ Destroyed/
Written off/
14. Goods Disposed of by way of gift
or free samples
15. Tax paid under
Demand/Seizure/confiscation
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B. CONDITIONS FOR TAKING ITC BY A REGISTERED PERSON
These 4 conditions are very important because, in case even if one
condition is not fulfilled, Credit cannot be claimed, even though it is an
eligible Credit.
� He is in possession of Invoice/Debit note/Other taxpaying
document
� He has received the goods or services or both
� The Seller, (who has collected the tax from buyer) must
have paid the taxes to the government.
� Both supplier and receiver have furnished GST returns.
C. TIME PERIOD AVAILABLE FOR AVAILING / CLAIMING OF CREDITS
Earlier of:
� 1 year from the invoice date.
� The due date of furnishing of return for the month of September
following the FY to which the invoice pertains (i.e. for FY 201718, due date
shall be 20th October, 2018)
� Furnishing of relevant annual return (i.e. for FY 201718, due date for
Annual Return is 31st December, 2018.)
D. FREQUENTLY ASKED QUESTIONS
1. How to claim ITC on Capital Goods?
� 100% in the year of purchase
� ITC shall not be available if the tax portion paid on capital goods is
capitalised in books of Accounts and depreciation has been claimed.
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2. Can full ITC be claimed when Inputs are used partly for taxable and
partly for exempt supplies
No.
� Amount of credit available shall be restricted to input tax
attributable to be used for taxable supplies.
� ITC can only be claimed in respect of goods exclusively used for
providing taxable supplies.
3. How to take ITC on goods sent to Job worker?
� For goods directly sent to job worker – the goods are deemed to
be received by the principal and shall be entitled to take credit.
� For input not received back by the principal within 1 year of being
sent to job worker, treated as ‘Deemed Supply’.
� For capital goods not received back by the principal within 3 year
of being sent to job worker, treated as ‘Deemed Supply’.
4. Whether ITC is available on purchase of a goods delivery vehicle
by a person for transportation of his own Goods from one place
to another?
Yes
� Credit shall be eligible to a manufacturer/trader but not a Goods
Transport Agency (as has been specifically restricted by the tax
rate schedule)
*****
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Types of Returns Credit Matching
System Data Relevant for Return
(Refer Point A)
Provisional Credit
At first, every person is
entitled to input tax credit
on self assessment basis.
(Refer Point B)
Matching
Then, each credit is matched
with corresponding detail of
outward supply filed by all the
sellers.
(Refer Point C)
Final Credit
Finally, claim of ITC is either
accepted or a report of
mismatch is communicated
to both the parties.
(Refer Point C)
A Regular person needs to file 3
returns /statements in a month
(GSTR-1 for sales, GSTR-2 for
purchases, & GSTR-3 for calculation
of output tax and payment)
An Input Service Distributor to file
monthly details of credit distributed
in GSTR6 by 13th
of next month.
A composition dealer needs to file
quarterly return in GSTR4, by 18th
of following month.
Person required to deduct TDS has
to furnish monthly details in GSTR7
by 10th
of next month.
Ecommerce operator is required to
collect TCS and file monthly details in
GSTR8 by 10th
of next month.
8. RETURNS UNDER GST
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A. DATA RELEVANT FOR RETURN
1. For Sale to Registered Person
� Invoice level details to be furnished for all sales (i.e. interstate /
Intrastate)
2. For Sale to UnRegistered Person
i. Interstate sales (i.e. outside state) –
� Invoice level details for Invoice value > Rs. 2.5 Lakhs
� State wise Consolidated total sales for each rate of tax for Invoice
value < Rs. 2.5 Lakhs
ii. Intrastate Sales (i.e. within state) – Consolidated total sales for each
rate of tax
B. PROCESS OF TAKING PROVISIONAL CREDIT
Date FormofReturn
Personto
Attend
Details/Actionrequired
Before 10thof themonth
GSTR1 Seller Furnish Details of all the Sales
10th–13th GSTR2A Buyer Verify/Modify the purchases i.e.
auto populated according to details
furnished by various sellers.
Before 15thof themonth
GSTR2 Buyer Furnish Details of Sales + Tax payable
under RCM + Dr/Cr. notes
15th–17th GSTR1A Seller Accept/Reject the changes made by
buyer in his return (GSTR2) if any.
Before 20thof themonth
GSTR3 Seller +
Buyer
Furnishing of Final Return
� Most of the data will be auto
populated
� Furnish details of output tax paid
and self assessed ITC utilised for
payment of output tax.
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C. MATCHING OF INPUT TAX CREDIT (ITC)
After filing of GSTR3, the details of ITC claimed by the buyer would be matched by
GST Common portal.
OUTCOME OF MATCHING
MATCHED
ITC is treated as matched when:
� When ITC claimed by the
buyer is equal to or less than
the output tax paid by the
seller
DISCREPANCY IN CLAIM
Reasons for Discrepancies can be:
� ITC claimed by the buyer is more
than that declared by seller
� Corresponding sale is not
declared by the seller
� Duplication of ITC claim by buyer
Final acceptance of ITC will
reflect in GST MIS01 Communication of
discrepancy (Say in Month 1): � GST MIS1 to Purchaser
� GST MIS2 to Seller
RECTIFIED
(By 20th of Month 2)
NOT RECTIFIED
(By 20th of Month 2)
Either Seller rectifies his sales OR
Purchaser reduces his purchase.
Report of final matching will
reflect in GST MIS01.
Amount of mismatched
credit is added to Output Tax
Liability of purchaser in
GSTR3 of Month 3.
CAGaganKedia|[email protected] Page28
The expenditure or costs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely,
i. the supplier acts as a pure agent of the recipient of the supply, when he
makes the payment to the third party on authorisation by such recipient;
ii. the payment made by the pure agent on behalf of the recipient of supply
has been separately indicated in the invoice issued by the pure agent to
the recipient of service; and
iii. the supplies procured by the pure agent from the third party as a pure
agent of the recipient of supply are in addition to the services he supplies
on his own account.
Explanation. For the purposes of this rule, the expression “pure agent” means a
person who
a) enters into a contractual agreement with the recipient of supply to act as
his pure agent to incur expenditure or costs in the course of supply of
goods or services or both;
b) neither intends to hold nor holds any title to the goods or services or
both so procured or supplied as pure agent of the recipient of supply;
c) does not use for his own interest such goods or services so procured;
and
d) receives only the actual amount incurred to procure such goods or
services in addition to the amount received for supply he provides on his
own account.
Conditions for Pure Agent
CAGaganKedia|[email protected] Page29
ALPHABET WISE State Name Code
SERIAL NO WISE State Name Code
Andaman & Nicobar (U/T) 35 Jammu & Kashmir 01
Andhra Pradesh 28 Himachal Pradesh 02
Arunachal Pradesh 12 Punjab 03
Assam 18 Chandigarh (U/T) 04
Bihar 10 Uttarakhand 05
Chandigarh (U/T) 04 Haryana 06
Chhattisgarh 22 Delhi 07
Dadra & Nagar Haveli (U/T) 26 Rajasthan 08
Daman & Diu (U/T) 25 Uttar Pradesh 09
Delhi 07 Bihar 10
Goa 30 Sikkim 11
Gujarat 24 Arunachal Pradesh 12
Haryana 06 Nagaland 13
Himachal Pradesh 02 Manipur 14
Jammu & Kashmir 01 Mizoram 15
Jharkhand 20 Tripura 16
Karnataka 29 Meghalaya 17
Kerala 32 Assam 18
Lakshadweep Islands (U/T) 31 West Bengal 19
Madhya Pradesh 23 Jharkhand 20
Maharashtra 27 Odisha 21
Manipur 14 Chhattisgarh 22
Meghalaya 17 Madhya Pradesh 23
Mizoram 15 Gujarat 24
Nagaland 13 Daman & Diu (U/T) 25
Odisha 21 Dadra & Nagar Haveli (U/T) 26
Pondicherry 34 Maharashtra 27
Punjab 03 Andhra Pradesh 28
Rajasthan 08 Karnataka 29
Sikkim 11 Goa 30
Tamil Nadu 33 Lakshadweep Islands (U/T) 31
Telangana 36 Kerala 32
Tripura 16 Tamil Nadu 33
Uttar Pradesh 09 Pondicherry 34
Uttarakhand 05 Andaman & Nicobar (U/T) 35
West Bengal 19 Telangana 36
STATE CODES
CAGaganKedia|[email protected] Page30
Gagan Kedia is a commerce graduate, a Chartered Accountant and a Company Secretary by qualification who has dedicated over past 1 year of his life in GST research, working closely with various authorities. He has over 7 years of experience in the field of Service Tax and International Taxation. He has worked with Deloitte Haskins & Sells catering to Tax Advisory & Litigation needs of Global Retail Conglomerates and IT giants. Passionate about his profession, Gagan has keen interest in training and has also conducted various training workshops with big corporate houses in the area of Taxation & Accounting. He is a Kolkata native but has travelled extensively for various roles in his career. He is also a selected faculty member of the Indirect Tax Committee of ICAI for GST Trainings and an active member of the privileged Kolkata Study Group of Indirect Tax Committee of ICAI, dealing in – GST Research, Representations to Governments, Publication of Books, etc. He is the Managing Partner of the Firm M/s. MRG KEDIA & Co., looking after Transaction Advisory & Litigations in the field of Service Tax & GST for various clients. Gagan can be reached at [email protected] | + 98306 82188
C/o. MRG KEDIA & Co. Unit # 408, 4th Floor, Kamalalaya Centre, 156A, Lenin Sarani, Dharamtolla, Kolkata – 700013, West Bengal, India.
About the Author
CAGaganKedia|[email protected] Page31
SLNo
Particulars Link
1 GST Common Portal https://www.gst.gov.in/
2 CBEC Home Page http://www.cbec.gov.in/
3 Acts, Rules, GST Rates,
Notifications, Circulars of CGST, IGST, UTGST & Cess
http://www.cbec.gov.in/htdocs
cbec/gst/index
4 List of Services which are Exempt from GST
http://www.cbec.gov.in/htdocs
cbec/gst/Notification9IGST.pdf
5 List of Services where RCM
Applicable.
http://www.cbec.gov.in/htdocs
cbec/gst/Notification10IGST.pdf
6 IGST Exemption to SEZs on
import of goods & services by a
unit / developer in SEZ
http://www.cbec.gov.in/htdocs
cbec/gst/notification18igstrate.pdf
7 CGST Rules, as amended upto
01.07.2017
http://www.cbec.gov.in/htdocs
cbec/gst/cgstrules
01july2017%20.pdf
8 West Bengal State GST (Acts, Rules, Notifications)
http://wbcomtax.nic.in/GST/gst.html
Important Links