east central railway gst · pdf file · 2017-08-04•composition scheme:...

EAST CENTRAL RAILWAY GST CELL

A primer on GST

Narendra

FA&CAO/WST

Basic Concepts • Integrated Goods and Services Tax (IGST): Attracted whenever there

is interstate movement of Goods and services i.e the buyer of the

Goods/Service and the seller are located in two different states.

• Central Goods and Service Tax (CGST): Attracted when there is intra-

state movement of goods and services i.e Buyer and seller in same

state. Is share of Central Government in the GST charged.

• State Goods and Service Tax (SGST): Attracted when there is intra-

state movement of goods and services i.e Buyer and seller in same

state. Is share of State Government in the GST charged.

• Where CGST and SGST payable, rate of IGST split between two in

equal parts. Eg IGST = 18% then CGST=9% and SGST=9%

• Composition Scheme: Designed for entities with turnover of upto Rs.

75/ 50 lakhs per annum. Have to pay concessional rates of GST on

turnover, ranging from 1%-2.5%. Are not entitled to any Input tax

credit. Their purchasers cannot also claim any input tax credit for

purchases made from entities registered under composition levy.

• REVERSE CHARGE- Instead of seller, the purchaser (recipient) of

Goods/Services is liable to pay the GST. Reverse charge is applicable

under :

Section 9 (3) of CGST Act: List of services that have been notified as

payable under Reverse charge.

Section 9 (5) of CGST Act: Where the supply of Goods or services is

made by a supplier who is not registered .

Registration is mandatory for-

I. Wherever the turnover from all sources of business is:

a) Rs 20 lakhs or more for all States

b) Rs. 10 lakhs or more for the states of Arunachal Pradesh, Assam,

J&K, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura,

Himachal Pradesh and Uttarakhand.

II. All persons making Inter-State supply, irrespective of value of

turnover

• Turnover under GST refers to income from all sources of business

and should not be confused with the contractual value.

• Composite Supply: A Composite Supply comprises of two or more

supplies where one is the principle supply eg. packing and transportation

contract with insurance- supply of goods here is the principal supply. In

such cases GST is charged at the rate applicable on the principal item.

• Mixed Supply: A Mixed supply refers to combination of two or more

goods or services which are not related to each other, for a single price.

Here GST will be charged for all the items at the highest rate which any of

the item attracts.

• Timeline for issue of Tax Invoice under Section 31 of CGST Act:

For supply of Goods- Before or at the time of despatch of Goods

For supply of services- within 30 days from date of supply of service. For Insurance,

banking and NBFC this timeline is 45 days.

• Section 34 (1 & 2) of CGST ACT- CREDIT NOTE- Issued by the supplier where:

GST charged is in excess of the actual tax.

The goods supplied are returned or the Goods and Services are found deficient.

• Details of the Credit Note to be furnished in the return for the month in which it was

issued and latest by September of the following financial year.

• Section 34 (3 & 4) of CGST ACT- DEBIT NOTE- Issued by the supplier where:

GST charged is less than the actual tax.

• Details of Debit notes to be furnished in the return for the month when it was issued.

• Input Tax Credit- Available to registered entity on GST paid by it on its

purchases. Can be availed only if:

The goods or Service have been received

The GST payable by the Supplier has actually been paid.

The recipient has furnished the return i.e GSTR-1 and GSTR-2.

• If Input Tax Credit claimed but payment not made within 180 days, has to be

specified in GSTR 2. Payment of this credit + interest as penalty has to be

made. Not likely to happen for IR where we shall claim credit only for

payments made by using data of IPAS.

• For Indian Railways Input Tax Credit is permitted only on tax paid on services.

• Further as per GST Act, Input Tax credit is permitted only in the ratio where it

has been used for taxable services. Note- For IR this includes only Freight,

Parcel and AC and First class passenger services.

• The Input Tax Credit under GST is to be categorised as follows:

• T1- GST paid on Supplies/Services used for non-business purposes.

• T2- GST paid on supplies/services used entirely for exempt supplies (passenger services other than first class and AC)

• T3- GST paid on Supplies/Services where no Credit is available as per Section

17(5) of CGST Act

• T4- GST paid for supplies/services used exclusively for effecting taxable

supplies (Freight, Parcel, First class and AC passenger services)

• C2- GST paid on Supplies/Services used for both taxable and exempt supplies.

• E - Aggregate value of exempt services in a month

• E for IR = Total Originating Earnings (all Railway Units in the State) minus Originating

Earnings on Freight, Parcel, AC and first class passenger fare ( including penalty& EFT)

+ any other earning where GST collected. It is hoped that this will be system

generated.

• F - Total turnover of the Railway within the State –eg. Originating Earnings of all

Railway units falling within Bihar for the preceding month

• Calculation of Input Tax Credit:

T1, T2, T3 to be ignored.

• What will be the Input tax Credit which can be claimed in case of Railways-

• T4

• C2 - [(E÷ F) X C2]

• Total Input Tax Credit available- T4 + C2 - [(E÷ F) X C2]

• Section 17(5) of CGST Act- For our purposes the operative clause is:

(c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service

for further supply of works contract service;

(d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account

including when such goods or services or both are used in the course or

furtherance of business.

• Explanation.––For the purposes of clauses (c) and (d), the expression

“construction” includes re-construction, renovation, additions or alterations

or repairs, to the extent of capitalisation, to the said immovable property;

• Implication- GST on works contract for civil works will not result in any input

tax credit.

Sample calculation of GST Credit Category GST Paid Classificat

ion

GST on cleaning services for Railway Club 100 T1

GST paid on cleaning contracts for non AC Coaches, Cloak room, Stores procurement etc.

500 T2

GST paid on works contract for construction of FOB & Minor

bridges 1000 T3

GST paid on cleaning contract for AC Coaches, Freight

terminals and Parcel depots

500 T4

GST paid on AMC for office equipment at HQ/Division 500 C2

Originating earnings of all Railway Units in Bihar less

Freight, Parcel & First class and AC Passenger fare 2000 E

Originating earnings of all Railway Units in Bihar 5000 F

Share of Credit

Formula Calculation Amount

C2 C2 - [(E÷ F) X C2]

500-[(2000/5000)*500]

300

T4 500

Total Credit 800

Downward

Hierarchy

IGST Credit CGST Credit SGST Credit

Preference

1

Full Credit against IGST

payable

Full Credit to be taken

against CGST payable

Full Credit to be taken

against SGST payable

Preference

2

Addl IGST credit set

off against CGST

payable

Addl. CGST credit set

off against IGST payable

Addl SGST set off

against IGST payable

Preference

3

IGST credit still

available :

Adjust against SGST

payable

Credit of CGST against

SGST is not permitted

Credit of SGST against

CGST is not permitted

Hierarchy of Preferences for seeking Input Tax Credit:

Calculation of taking Credit under GST • M/s ABC based in Bihar supplies Goods to M/s XYZ based in Jharkhand for Rs. 1500000.

M/s XYZ on its part sells it to its customers in Jharkhand for Rs. 1800000. GST Rate is 18%

Description ABC XYZ

Transaction Value 1500000 1800000

Nature of Supply Inter State Intra State

CGST@9% 162000

SGST@9% 162000

IGST @ 18% 270000

Tax Credit

CGST 162000 IGST to be first adjusted

against CGST

SGST 108000 Balance against SGST

Tax payable 54000

Calculation of taking Credit under GST • M/s ABC based in Jharkhand supplies Goods to M/s XYZ based in Jharkhand for Rs. 1500000.

M/s XYZ on its part value adds before sale in Jharkhand. GST rate is 18% & 28% respectively.

Description ABC XYZ

Transaction Value 1500000 1800000

Nature of Supply Inter State Intra State

CGST@9% 135000 252000

SGST@9% 135000 252000

Tax Credit

CGST 135000 CGST to be first

adjusted against

CGST

SGST 0 CGST cant be

offset against SGST

Tax payable 369000

• Structure of the GSTIN No.- It is a 16 character code comprising:

two characters for the State code

ten characters for the PAN or the Tax Deduction and Collection Account Number

two characters for the entity code

one checksum character

• Note only difference in GSTIN No issued to different Railways- The first two

characters reflecting the State Code.

• Clue- For preparing invoice of bill passing: Wherever the first two characters of the

GSTIN No. of the Railway and that of the supplier/purchaser of service are

different, IGST is applicable and

Where the first two characters are the same, CGST and SGST are applicable.

Exemptions under GST • Exempt categories of Service under GST by Railways:

Passengers except for travel by first class or AC class.

relief martial Defence or military equipment

Newspapers or magazines registered with the Registrar of Newspapers

Agricultural products.

Milk, salt and food grains including flours, pulses and rice

Organic manure.

Retiring Rooms, with daily tariff is less than Rs. 1000 per day.

• As per GST Rules and Railway Board letter, transport of Railway equipment

or material for use by Railways, either by Rail/Road is exempt from GST.

Items outside the preview of GST

• Alcoholic drinks

• Electricity

• HSD Oil and Petrol

Where is GST Levied • GST payable not merely on supply/purchase of Goods or Service

• GST is also levied on all penalties imposed for supply/purchse of above

Goods & Services.

• GST therefore extends to:

Demurrage/ wharfage charges

Liquidated Damages

Forfeiture of Security deposit/EMD

Penalty for breach of contract

Interest or late fee or penalty for delayed payment for any supply

RETURNS

• Every month for the transactions in the previous month, each

registered entity has to upload the following returns:

GSTR 1

GSTR 2

Monthly return

• In addition Annual Return has to be uploaded.

GSTR-1

• GSTR 1 has to be uploaded onto the GST portal by the registered entity by the

10th of the following month Eg. For July 2017 the target date would be 10th

August. (Relaxed for first 3 months this year).

• GSTR 1 is the statement of outward supplies that have been made. For IR this

means a statement of all those transactions where GST has been collected.

• For IR, GSTR 1 will be generated on the basis of data captured by CRIS from

the Centralised software and the data of manual transactions that is being

uploaded onto the CRIS portal.

GSTR 1 Contd.

CRIS will also be using the services of a GST Suvidha provider (GSP)

which can access data from GSTN.

Any mismatch will have to be corrected.

While the Railway responsible for the State eg. ECR for Bihar will pay

the GST, this will be debited to other Railways/Divisions by operating

Transfer Railways/Transfer Division.

Copy of GSTR 1 has been circulated.

GSTR 2 A • Based on the GSTR 1 filed by the different entities, GSTR 2A auto-populated.

• Shows details of inward supplies of Goods and Services for the month.

• Becomes available on the 11th of the following month.

• To be verified and uploaded by the 15th of the following month.

• It is expected that CRIS and the GSP, will:

Capture the IPAS data for the bills passed for the month

Capture the data for GSTR 2 A from GSTN portal.

Match the transactions.

Forward the statement of matched and mismatched transactions to the Railways for verification and uploading.

GSTR 2 A Format has been circulated.

• GSTR 2- statement of inward supplies and the GST paid thereon.

• Auto-populated from GSTR 2 A .

• To be confirmed by the 17th of the month.

• Credit availed in GSR 2 will be distributed between the different

Railway units of the State based on their share.

• Monthly return- Auto generated from GSTR 1 and 2

• To be confirmed by the 20th of the month.

• GSTR 1 determines the GST payable.

• GSTR 2 determines the Input Tax Credit

• GST payment has to be done by the 20th of the following month.

GST for Earnings Contracts • All Manual data has to be captured on the CRIS Utility package.

• FORMAT has already been provided by CRIS.

• The FORMAT, termed “FORM” in ECR has two parts:

Part A- Filled by Purchaser of service/earning contractor for all cases where:

He is registered under GST and has a GSTIN

He claims GST payment on Reverse Charge basis.

The transaction value is Rs. 50000/ or more.

• Part B to be filled by the Railway Staff.

Scheme of Invoice numbering • Each invoice i.e the FORM has to be manually numbered at Part B 1.

• The numbering will be of 16 characters comprising:

First 2 - Year

Next 2 – Department Code

Next 2 – Zone Code

Next 10 – PW Bill No./MR No.

• At Part B 5- GSTIN No. of the Railway has to be given.

Sample FORMS Parcel Booking from DHN station

Part A. To be filled by Vendor

1. Transaction Type Collection

2. Old Invoice No

3. Station/Office DHN 4. Division: DHN 5. Zone: ECR

6. Railway/Department Commercial

7. Goods & Services Transaction Description Parcel

9. Recipient Detail 9.1 Name: M/s ABC limited

9.2 Registered with GSTIN (Y/N) Y 9.3 GSTIN 07 ABGPF8874QQ BI X

9.4. Tax payable on Reverse Charge Basis (Y/N) N 9.5 State Delhi 9.6 Registered Address 5, Kohat Enclave, South Extension, New Delhi

9.7 Email Id [email protected] 9.8 Phone 9977889912

9.9 Place of Supply/Service & Address DHN Station, Dhanbad

9.10 Place of Delivery of Address 5, Kohat Enclave, South Extension, New Delhi

9.11 Signature/Name of Rep/Vendor

mailto:[email protected]

Part B. To be submitted by Railway official 1. Invoice No. 1704EC0000001234 2. Invoice Issue Date 28-07-2017

3. MR/PW No. 1234 4. Station/Cash Office Code DHN

5. GSTIN (State-Rly) 20AAAGM0289C1ZX 6. State Code 20

7. Accounts Allocation Code X410 8.Department Code 4

9. Railway GSTIN regd address FA&CAO/SER/Garden Reach/Kolkata

10. Service Account Code 996512 11. Invoice and Tax Charged Details

11.1 Total Vlaue of Supply 20000 11.2 Total Taxable Value 20000 11.3 IGST Rate 5% 11.4 IGST Amount 1000 11.5 CGST Rate 11.6 CGST Amount

11.7 SGST/UTGST Rate 11.8 SGST/UTGST amt 11.9 Cess Rate 11.10 Cess Amount

Note: IGST payable as Inter-State Supply.

Sale of Scrap in SPJ Divn Part A. To be filled by Vendor

1. Transaction Type Collection 2. Old Invoice No 3. Station/Office SPJ 4. Division: SPJ 5. Zone: ECR 6. Railway/Department Commercial 7. Goods & Services Transaction Description Sale of Scrap Ferrous


9.2 Registered with GSTIN (Y/N) Y 9.3 GSTIN 10 ABGPF8874QQ BI X

9.4. Tax payable on Reverse Charge Basis (Y/N) N 9.5 State Bihar 9.6 Registered Address 5, Rajeev Nagar, Patna 9.7 Email Id [email protected] 9.8 Phone 9977889912 9.9 Place of Supply/Service & Address Stores Depot, SPJ

9.10 Place of Delivery of Address Road No 10, Patelnagar, Patna, Bihar 9.11 Signature/Name of Rep/Vendor


Part B. To be submitted by Railway official

1. Invoice No. 1712EC0000001234 2. Invoice Issue Date 28-07-2017

3. MR/PW No. 1234 4. Station/Cash Office Code SPJ

5. GSTIN (State-Rly) 10AAAGM0289C1ZY 6. State Code 10

7. Accounts Allocation Code Z530 8.Department Code 12

9. Railway GSTIN regd address FA&CAO/ECR/Hajipur

10. HSN No 4401

11. Invoice and Tax Charged Details

11.1 Total Vlaue of Supply 200000 11.2 Total Taxable Value 200000

11.3 IGST Rate 11.4 IGST Amount

11.5 CGST Rate 9% 11.6 CGST Amount 9000

11.7 SGST/UTGST Rate 9% 11.8 SGST/UTGST amt 9000

11.9 Cess Rate 11.10 Cess Amount

Car Parking under Reverse Charge at MGS Station Part A. To be filled by Vendor

1. Transaction Type Collection

2. Old Invoice No

3. Station/Office MGS 4. Division: MGS 5. Zone: ECR

6. Railway/Department Commercial

7. Goods & Services Transaction Description L/fee- Car parking

9. Recipient Detail

9.1 Name: M/s ABC limited

9.2 Registered with GSTIN (Y/N) N 9.3 GSTIN

9.4. Tax payable on Reverse Charge Basis (Y/N) Y 9.5 State UP

9.6 Registered Address 5, Kohat Enclave, Mughalsarai

9.7 Email Id [email protected] 9.8 Phone 9977889912


9.10 Place of Delivery of Address MGS Station




3. MR/PW No. 1234 4. Station/Cash Office Code MGS

5. GSTIN (State-Rly) 09AAAGM0289C1ZH 6. State Code 09


9. Railway GSTIN regd address FA&CAO/NCR/Allahabad


11.1 Total Vlaue of Supply 200000 11.2 Total Taxable Value 200000 11.3 IGST Rate 11.4 IGST Amount 11.5 CGST Rate 9% 11.6 CGST Amount 9000

11.7 SGST/UTGST Rate 9% 11.8 SGST/UTGST amt 9000 11.9 Cess Rate 11.10 Cess Amount

Undertaking to be taken Undertaking regarding Exemption from GST

To,

(Name and address of the Contract signing Authority)

I , SK Singh (Name of the person/persons), being the Sole owner/proprietor/partners/ authorized

representative of M/s ABC Ltd , 5 Kohat Enclave, Mughalsarai (Firm’s Name and Address), executing CA No. Comml/Car

Parking /MGS/Stn dated 23/4/2017(details of Contract Agreement and date) for Rs. 200000 (Rs. Two hundred thousand

only) (value in figures and words) do hereby affirm that:

I/We are exempt from registration under GST :

Under the provisions of Section 22 of the CGST Act. We certify that out “Aggregate Turnover” is within the specified limit

as per the explanation of the same given in Section 22 referred above.

I/We are exempt from registration under GST as per special orders of the Government (Relevant circular to be linked).

Please strike out that which is not applicable.

In case of any misrepresentation/misinformation on our part, we indemnify the Railways against any claims arising from

the above act. Railways are also authorised to recover any amounts as may be demanded by the GST authorities on

account of misrepresentation/misinformation on our part from us, from any of our payments due to the Railway. In

addition Railway shall also be empowered to short-close the Contract and take further action including black-listing if

deemed essential.

Signature

Way Leave Charge in SEE Divn. Part A. To be filled by Vendor

1. Transaction Type Collection 2. Old Invoice No 3. Station/Office SEE 4. Division: SEE 5. Zone: ECR 6. Railway/Department Commercial 7. Goods & Services Transaction Description Way Leave charges


9.2 Registered with GSTIN (Y/N) N 9.3 GSTIN

9.4. Tax payable on Reverse Charge Basis (Y/N) 9.5 State Bihar 9.6 Registered Address 5, Rajeev Nagar, Patna 9.7 Email Id [email protected] 9.8 Phone 9977889912

9.9 Place of Supply/Service & Address Railway Colony, SEE

9.10 Place of Delivery of Address Railway Colony, SEE




3. MR/PW No. 1234 4. Station/Cash Office Code SEE

5. GSTIN (State-Rly) 10AAAGM0289C1ZY 6. State Code 10


9. Railway GSTIN regd address FA&CAO/ECR/Hajipur


11.1 Total Vlaue of Supply 55000 11.2 Total Taxable Value 55000 11.3 IGST Rate 11.4 IGST Amount 11.5 CGST Rate 9% 11.6 CGST Amount 4950

11.7 SGST/UTGST Rate 9% 11.8 SGST/UTGST amt 4950 11.9 Cess Rate 11.10 Cess Amount

Parcel Booking from DHN station Part A. To be filled by Vendor

1. Transaction Type Collection 2. Old Invoice No 3. Station/Office DHN 4. Division: DHN 5. Zone: ECR 6. Railway/Department Commercial 7. Goods & Services Transaction Description Parcel

9. Recipient Detail 9.1 Name:

9.2 Registered with GSTIN (Y/N) 9.3 GSTIN

9.4. Tax payable on Reverse Charge Basis (Y/N) 9.5 State 9.6 Registered Address 5, Kohat Enclave, South Extension, New Delhi 9.7 Email Id 9.8 Phone


9.10 Place of Delivery of Address



3. MR/PW No. 1234 4. Station/Cash Office Code DHN

5. GSTIN (State-Rly) 20AAAGM0289C1ZX 6. State Code 20

7. Accounts Allocation Code X410 8.Department Code 4

9. Railway GSTIN regd address FA&CAO/SER/Garden Reach/Kolkata


11.1 Total Vlaue of Supply 4000 11.2 Total Taxable Value 4000 11.3 IGST Rate 11.4 IGST Amount 11.5 CGST Rate 2.5% 11.6 CGST Amount 100

11.7 SGST/UTGST Rate 2.5% 11.8 SGST/UTGST amt 100 11.9 Cess Rate 11.10 Cess Amount

Action for capturing Manual Transaction

• Divisions to ensure transmission of the FORM to Divnl HQ.

• For Transactions of Parcel, EFT and MR issued at Station, data entry to

be done by Sr.DCM

• For MRs issued by Cash Office, Data entry to be done by Sr.DFM

• Divns to ensure data for last day entered early to ensure capture in

GSTR1.

GST AND INPUT TAX CREDIT • Bill to be passed only when it is accompanied with a Tax Invoice.

• Supplier to send the Tax Invoice to the Contract Executing authority in all cases:

Where bill preferred to Accounts by the Executive

Where Bill sent directly to Accounts with copy of R Note.

Bill preferred by Executive Bill sent directly to Accounts

Tax Invoice + One copy to be sent Tax Invoice + two copies to be sent

Copy to be kept in Contract file. Original to Accounts

One with Depot., One in Contract file and original along with R Note to Accounts.

FORMAT OF TAX INVOICE TO BE SUBMITTED Part A: Contractual Details

1. Contract Number & Date

2. Bill/Invoice No and

Date 3. Description of Goods and/or services

4. HSN Code

5. Accounting Code

of Service 6. Unit Rate

7. Unit of

Measure

8. Quantity

9. Total Value of

Supply of Goods

10. Total Value of Supply

of Services

11 Grand Total of

Bill

Taxable Value of Supply

12. Rate & Nature of penalty

13. Amount of penalty

14.Rate of Rebate/Abatement if any

15. Amount of Rebate/Abatement if

any

16. Taxable Value( Total Value + Penalty

-Rebate)

Part B: Railway Details

2. GSTIN Number of the Railway

3. Address of Principal place of business of the

Railway for the State

Part C: Supplier Details

2. Tax Invoice Date 3. Name of Supplier

5. GSTIN Number of the Supplier

6. Address of place from where supply made

(Location of Supplier)

7. If Tax chargeable of Reverse Charge Basis Y/N

Details of Tax charged

Tax Rate Amount

IGST

CGST

SGCT

Cess on IGST

Cess on CGST

Cess on SGST

• No bill/ R Note should be forwarded to Accounts Department without complete Tax Invoice duly verified.

• Accounts Deptt. in Bill passing to capture the relevant fields in IPAS:

Payment of Works Contract Bills

• Authority: Railway Board’s Circular No. 2016/CE-I/12/GST/Pt.I Dt. 29/6/2017.

• Railways to provide Goods/Service Code for all works.

• In case of mix of both goods and service, it is to be seen if this is a

composite contract/mixed contract.

• In Works Contract agreemental rates are inclusive of taxes. Hence:

Calculate Gross amount of Work based on quantity and rates- Z

Segregate Z into two components:

Amount of work excluding GST – X

GST payable as per applicable rates- Y

• Conclusion: Z = X+Y

• The bill value as per MB and rates comprising Z= X+Y calculated.

• Communicated to Contractor

• Contractor submits invoice with complete details, showing base cost (X) +

GST (Y).

• If Contractor registered under GST, paid Z, with other deductions taking place

as per rules.

• Contractor registered under GST to deposit GST with Government

• In case Contractor not registered i.e GST on Reverse Charge-

Contractor paid amount X.

GST deposited by IR.

In IPAS ensure GST shown as Reverse charge payable on IR account.

Payment of GST on Reverse Charge

• Supplier to furnish Undertaking in duplicate.

• One copy in Contract file, other to Accounts for record.

• All cases of Reverse charge to be seen personally by Sr.DFM and concerned Branch officer.

• Works Contract- To be dealt as per Board guidelines referred

• Supply Contracts/ Service Contracts-

Contracts with rates inclusive of taxes- Reverse charge to be deducted from Contract value.

Contracts with basic rates + taxes- Only basic rates + other admissible charges, excluding taxes and duties to be paid.

• Bill passing in IPAS to be done carefully to capture IR liability to pay Reverse Charge.

Categorization of GST for Credit

• Under IPAS drop down menu to categorise GST paid under:

T1

T2

T3

T4

C2

• Divisions requested to give list of contracts and works for classifying with

Consultant.

Accounting Treatment of GST • Where GST paid will lead to Credit, to be treated as “Receivable”

• Restricted to T4 and C2

• Accounting entry to be made-

Item of Expenditure Dr Cr

Cost of Material/Service Relevant Exp head & PU

GST paid (ITC available) Misc. Advance -GST Respective PU for IGST/CGST/SGST/UTGST to be used

Payment made to Supplier

Cheques & Bills

Accounting Treatment of GST • Where GST paid will not lead to Credit, to be treated as “Expense”

• Includes T1-T3



Cost of Material/Service Relevant Exp. head & PU

GST paid (ITC not available)

Relevant Exp. head & PU


Cheques & Bills

Payment of GST Payment of liability under Reverse Charge

• Input tax Credit cannot be taken for adjusting amount payable under Reverse

Charge.

• Reverse Charge payment will always be cash payment.

• Hence separate recording of Reverse charge has to be maintained.

• Payment towards GST will be done by the Principal Railway who has registered for

the State:

Associate Railways to transfer Reverse Charge Liability to Principal Railway

through Transfer Railways by contra debit to Deposit Misc. GST/RCM

Accounting Treatment of GST under Reverse Charge

• Where Reverse Charge permits Input Tax Credit-



Cost of Material/Service Relevant Exp head & PU

GST paid (ITC available) Misc. Advance -GST Use respective PU for IGST/CGST/SGST


Cheques & Bills

Payment Liability towards GST under RCM

Dep. Misc/GST (IGST/CGST/ SGST)

Accounting Treatment of GST under Reverse Charge

• Where Reverse Charge does not permits Input Tax Credit-



Cost of Material/Service Relevant Exp. head & PU

GST paid (ITC not available)

Relevant Exp. head & PU


Cheques & Bills

Payment Liability towards GST under RCM

Dep. Misc./GST (IGST/CGST/ SGST)

Accounting Adjustments

• GST will be paid by adding GST payable for output services + Reverse Charge.

• The GST liability of Associate Railways/Accounting Units of the Railway will

be passed on via Transfer Railways/Transfer division.

• ITC Credit will be passed on to Associate Railways/Accounting Units of the

Railway by clearing Misc. Advance (GST) via Transfer Railways/Transfer

division

• Portion of C2 for exempted services will be charged off to expense.

PUs for GST

PU for Revenue Heads PU for Capital

Expenditure

CGST 72 CGST 63

SGST 73 SGST 64

UTGST 74 UTGST 65

IGST 75 IGST 66

Status Report

Sl.

No.

Object Status

DNR DIV. MGS DIV. DHN DIV. SEE DIV. SPJ DIV.

1. Formation of GST cell in Division

under ADRM/CWM in Workshops

Completed Yes Complied Complied Complied

2. Identification of infrastructure

bottlenecks such as computers and

processing for procurement.

Under

Process

In Progress Under

Process

Under

Process

Under

Process

3. Mapping of stations and other units

to the state in excel as per Annexure

1 and furnishing to HQ.

Under

Process

Sent to HQ Completed

Has it been

sent to HQ

Sent to HQ Status

4. Identification of any officer

authorized to issue take invoice and

arranging for digital signature.

No - No No No

Sl.

No.

Object Status

DNR MGS DHN SEE SPJ

5. Uploading of all Manual transaction

into CRIS utility w.e.f 01.07.2017.

Under

Process

Communicat

ed to all

concerned.

Is it being

implemented

Under

Process

Under

Process

Yes

6. Creation of database of

suppliers/vendors.

Under

Process

In progress Under

Process

Under

Process

Under

Process

7. Identification of transactions

involving Reverse Charge.

Under

Process

In progress ?????? - -

8. All transactions since 01.07.17 are

GST complaint.

Yes Yes Yes Yes Yes

Sl.

No.

Object Status

DNR MGS DHN SEE SPJ

1. List of contracts

Thank You

east central railway gst · pdf file · 2017-08-04•composition scheme:...

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