Goods and Service Tax new goods and service tax

Goods and Service Tax

1. GST
(Goods and Service Tax)Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

2. Agenda
In this session, we will discuss the following topics:
●Tax Structure in India
●Introduction to GST
●GST Structure
●GST Registration
●GST Returns
●GST Compliance
●Input Tax Credit (ITC)
●Online GST PortalsProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

3. Tax Structure in IndiaProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

4. Features of Indirect Taxes
●An important source of revenue
●Tax on commodities and services
●Shifting of burden
●Inflationary
●Wider tax baseProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

5. Introduction to GST
●Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services
in many countries.
●GST is a consumption tax that is imposed on the supply of goods and services. It is a destination-based
tax, which means it is collected at the point of consumption.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

6. Multiple Taxes Replaced / Cascading Effects in GST
GST aims to replace a complex network of indirect taxes, including-
●Excise Duties
●Service Tax
●Value-added Tax (VAT)
●Central Sales TaxProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

7. Need of GST in India
●Simplification of Taxation
●Removal of Tax Cascading
●Creation of a Common Market
●Reduction in Tax Evasion
●Boost to GDP Growth
●SME Empowerment
●Increased Tax RevenuesProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

8. Benefits of GST in India
●Reduction in Cascading of Taxes
●Overall Reduction in Prices
●Common National Market
●Benefits to Small Taxpayers
●Self-Regulating Tax System
●Non-Intrusive Electronic Tax System
●Simplified Tax Regime
●Reduction in Multiplicity of Taxes
●Consumption Based TaxProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

9. Key Terminologies of GST
●Input Tax Credit
●Threshold Limits
●Reverse Charge Mechanism
●GSTIN
●Supply
●Taxable Person
●GST Return
●GST Council
●Place of Supply
●Time of SupplyProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

10. Types of GST
Central GST (CGST)
State GST (SGST)
Union Territory GST
(UTGST)Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

11. GST Interest Rates
●GST rates are usually categorized into different tax slabs. The specific rates and the items that fall into
each slab can vary by country.
●Common tax slabs might include:
-0%, 5%, 12%, 18%, and 28%, with some goods and services being exempt from GST.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

12. Exemptions and Special Rates
Certain items and services may be exempt from GST or subject to special rates.
●For example, basic necessities like food items, healthcare, and educational services might be exempt or
taxed at a lower rate.
Composition Scheme:
●Many countries offer a composition scheme for small businesses. Under this scheme, businesses with
turnovers below a certain threshold can opt for a simplified GST process, paying tax at a fixed
percentage of their turnover.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

13. GST RegistrationProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

14. Introduction to GST Registration
GST (Goods and Services Tax) registration is a fundamental legal requirement for businesses and
individuals engaged in the supply of goods and services in many countries that have adopted the GST
system.
GST registration is the process through which a business or individual registers with the tax authorities to
become a "registered taxable person" for the purpose of collecting and remitting GST on their taxable
supplies. Once registered, the entity is legally recognized as a GST taxpayer and is required to follow the
rules and regulations set out by the GST authorities.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

15. Benefits of GST Registration
●Legal Recognition
●Input Tax Credit
●Compliance
●Access to Larger Markets
●Transparency
●Competitive Advantage
●Eligibility for E-commerce PlatformsProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

16. The GST Registration Process
Application Verification Issuance of GSTIN ComplianceProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

17. Mandatory Registration
●Persons making inter-State taxable supply
●Persons required to pay tax under reverse charge
●Casual and non-resident taxable persons
●E-Commerce operator /Those required to collect TDS
●Persons supplying goods through e-commerce operator
●Persons making supplies on behalf of a registered taxable person
●Input Service Distributer
●Every person supplying online information and data base access or retrieval services from a place
outside India to a person in India, other than a registered personProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

18. Mandatory Registration (Cont’d)
●Registration ( GSTIN)to be granted State-wise.
●PAN mandatory for GSTIN (except for NRTP-here Passport)
●Separate registration permitted for multiple business verticals in a State.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

19. Returns Process under GSTProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

20. Introduction to Returns
●In general its known as compliance verification.
●Mode for transfer of information to tax administration.
●To declare tax liability for a given period.
●Providing necessary inputs for taking policy decision.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

21. Features of Tax Returns in GST
●Based on transactions –Invoice based
●Designed for system based matching of Input Tax Credit and other details (import, export etc.)
●Auto-population from details of outward supplies
●Auto-reversal of ITC in case of mismatch
●Concepts of ledgers –cash, ITC and liability
●No revised returns Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

22. Standardised Forms/ Certificates
●Form GSTR-1 -Details of outward supplies of taxable goods or services effected
●Form GSTR-1A Details of outward supplies as added, corrected or deleted by the recipient
●Form GSTR-2 Details of inward supplies of taxable goods and/or services claiming input tax credit
●Form GSTR-2A Details of inward supplies made available to the recipient on the basis of FORM GSTR-1
furnished by the suppliers
●GSTR-3 Monthly return on the basis of finalization of details of outward supplies and inward supplies
●GSTR-3A Notice to a registered taxable person who fails to furnish returnProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

23. Standardised Forms/ Certificates (Cont’d)
●Form GSTR-4 Quarterly Return for compounding Taxable persons
●Form GSTR-4A Details of inward supplies made available to the recipient registered under composition
scheme on the basis of FORM GSTR-1 furnished by the supplier
●Form GSTR-5 Return for Non-Resident foreign taxable person
●Form GSTR-6 ISD return
●Form GSTR-6A Details of inward supplies made available to the ISD recipient on the basis of FORM
GSTR-1 furnished by the supplier
●Form GSTR-7 Return for authorities deducting tax at source
●Form GSTR-7A TDS Certificate Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

24. Standardised Forms/ Certificates (Cont’d)
●Form GSTR-8 Details of supplies effected through e-commerce operator and the amount of tax
collected
●Form GSTR-9 Annual return
●Form GSTR-9A Simplified Annual return by Compounding taxable persons registered under section 8
●Form GSTR-9B Reconciliation Statement
●Form GSTR-10 Final return
●Form GSTR-11 Details of inward supplies to be furnished by a person having UINProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

25. Annual Return
●Annual summary of all transactions
●Accounts to be certified by Chartered Accountant etc. if turnover more than Rs. 2 Crore
●Personal Details
●Details of Expenditure
●Purchases –goods/services –intra/inter state
●Imports
●Details of Income
●Supplies –goods/services –intra/inter state
●Exports
●Not to be filed by ISD, TDS Deductor, Casual Taxpayer, and Non resident taxpayerProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

26. Refunds form GST
●Time limit for claiming refund enhanced 2 years from the relevant date.
●Refund of Input tax Credit allowed in case of exports or where the credit accumulation is on account of
inverted duty structure.
●Refund shall be granted within 60 days from the date of receipt of application.
●In case of refund claim on account of exports, 90% of the claim can be given immediately within seven
days on provisional basis.
●No need to furnishevidence against unjust enrichmentif the refund claim is less than Rs. 2 lakhs. Self-
certification would suffice.
●Interest payable after 3 months from the date of receipt of application till the date of refund.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

27. Input Tax Credit (ITC)Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

28. Introduction to Input Tax Credit (ITC)
●Input Tax Credit (ITC) is a fundamental concept in the Goods and Services Tax (GST) system that allows
registered businesses to claim a credit for the GST they have paid on their purchases and expenses.
●ITC helps reduce the overall tax burden and prevents double taxation.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

29. Eligibility Criteria for ITC
The conditions and criteria that businesses must meet to be eligible for ITC. These conditions typically
include:
●Being a registered taxpayer under GST.
●Using the purchased goods or services for business purposes.
●Possessing valid tax invoices and documents.
●Complying with GST laws and filing returns.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

30. Types of Input Tax Credit
The conditions and criteria that businesses must meet to be eligible for ITC. These conditions typically
include:
●Input Tax Credit on Inputs (ITC-1)
●Input Tax Credit on Capital Goods (ITC-2)
●Input Tax Credit on Input Services (ITC-3)
●Blocked Credit (ITC-4)
●ITC in Special Circumstances (ITC-5)
●Transitional ITCProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

31. Online GST PortalsProprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

32. Summary
Here is a quick recap:
●India's tax structure includes both direct taxes (income tax) and indirect taxes (GST, customs duty,
excise duty). GST is a crucial part, unifying various indirect taxes.
●GST (Goods and Services Tax) is a unified tax system in India, replacing a complex web of indirect taxes.
It's designed to simplify taxation and promote economic growth.
●The GST structure in India comprises CGST, SGST, and IGST, each with specific roles. It also features
different tax slabs for goods and services.
●GST registration is mandatory for businesses that meet specific criteria. It grants legal recognition as a
GST taxpayer.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited

33. Summary
Here is a quick recap:
●Businesses must regularly file GST returns to report their transactions, sales, and purchases.
Compliance with return filing is essential for GST compliance.
●ITC allows businesses to claim credit for GST paid on purchases, reducing the overall tax burden.
●Online GST portals are government platforms that facilitate GST registration, return filing, and
compliance for taxpayers.Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited