Gst Procedure.pptx Application process-procedures-Documentation

GST procedure involves registration, issuing invoices, claiming input tax credit, filing returns, paying tax, and government assessment or audit.

1. Registration Procedure: GST Dr Jenifer Thangam J Assistant Professor

2. Registration Procedure: 1. Access the link  www.gst.gov.in 2. Click the  REGISTER NOW  link. 3. Select the  New Registration  option. 4. In the ‘ I am a’  drop down list; select the  tax deductor  as the type of tax deductor to be registered. 5. In the  State/UT  drop down list, select Telangana state. 6. In the  District  drop down list, select the appropriate district. 7. In the  Legal Name of Business (As mentioned in PAN/TAN)  field, enter the business name as in the data of CBDT.

3. Registration Procedure: 8. In the  PAN/TAN  field, enter the PAN/TAN. 9. In the  Email Address  field, enter your valid e-mail ID address. 10. In the  Mobile Number  field, enter a valid ten-digit mobile number. 11. In the  Type the characters you see in the image below  field, enter the captcha text. 12. Click the  PROCEED  button. 13. Enter OTP s received in mobile and e-mail .

4. 14. Click the  PROCEED  button. Save the Temporary Reference Number (TRN) displayed 15. Click  Services  >  Registration  >  New Registration  option and select the  Temporary Reference Number (TRN)  option. 16. In the  Temporary   Reference   Number (TRN)  field, enter the TRN received. 17. Click the  PROCEED  button. 18. Enter OTP s received n the mobile and e-mail. 19. Click the  PROCEED  button.

5. 20. Click the  Edit  button to edit the registration application. 21. Enter all the mandatory details in all Four tabs. 22. In the verification tab, select the  Verification  checkbox. 23. In the Name of Authorized Signatory drop-down list, select the name of the authorized signatory. 24. In the Place field, enter the place where the form is filled. 25. Select  SUBMIT WITH DSC  to sign and submit the Registration application.

6. Structure of GSTIN : First 2 digits → State Code Represents the state or union territory as per the Indian Census code. Example: 33 for Tamil Nadu, 27 for Maharashtra. Next 10 digits → PAN Number of the taxpayer These digits are the same as the Permanent Account Number (PAN) of the business or individual. 13th digit → Entity Code Indicates the number of registrations a taxpayer has within a state, based on the same PAN. For example: 1 for the first registration, 2 for the second, and so on. 14th digit → Default Letter “Z” Currently reserved for future use and is kept as “Z”. 15th digit → Check Code An alphanumeric digit used for error detection and verification.

7. 33ABCDE1234F1Z5 33 → Tamil Nadu ABCDE1234F → PAN of the entity 1 → First registration in the state Z → Default 5 → Check code

8. GST Documentation 1. Introduction Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. Proper documentation under GST is crucial for compliance, input tax credit (ITC) claims, and smooth business operations.

9. Key GST Documents a) Tax Invoice Issued by registered suppliers for the supply of goods/services. Contents: Supplier details (name, address, GSTIN) Invoice number & date Recipient details (name, address, GSTIN, if registered) HSN/SAC code Description, quantity, and value of goods/services Rate and amount of GST (CGST, SGST, IGST, UTGST) Place of supply Signature/digital signature b) Bill of Supply Issued when GST is not applicable (e.g., composition scheme dealers, exempted goods/services). Contains details similar to a tax invoice but excludes tax amounts. C) Debit Note Issued by a supplier when: Taxable value or tax charged in the original invoice is less than the actual value. Goods/services are undercharged.

10. d ) Credit Note Issued by a supplier when: Goods are returned by the recipient. The taxable value or tax charged is more than the actual. Post-sale discounts are provided. e) E-Way Bill A document required for the movement of goods worth more than ₹50,000. Generated online through the GST portal. Contains details of supplier, recipient, goods, and transporter. f) Delivery Challan Used instead of a tax invoice in special cases: Transport of goods for job work Supply of liquid gas Supply for approval/return basis

11. GST Dealer and Application for License GST Dealer A GST dealer is any individual or business entity registered under the Goods and Services Tax (GST) Act. Such dealers are authorized to collect GST from customers and avail Input Tax Credit (ITC) . Types of GST Dealers Regular Dealer – Normal taxpayers who collect and pay GST on outward supplies. Composition Dealer – Small businesses with turnover up to ₹1.5 crore (₹75 lakh for certain states) can pay GST at a fixed rate instead of normal rates. Casual Dealer – A person who occasionally undertakes supply in a taxable territory where they don’t have a fixed place of business. Non-Resident Dealer – Foreign suppliers making taxable supplies in India. E-commerce Dealer – Businesses selling via online platforms (e.g., Amazon, Flipkart).

12. Who Should Apply for GST Registration? Businesses with annual turnover above ₹40 lakh (₹20 lakh for special category states). Casual and non-resident dealers. E-commerce operators. Businesses making inter-state supplies . Documents Required PAN Card of the business or applicant Aadhar Card of the proprietor/partners/directors Business Registration Proof (Partnership deed, ROC certificate, etc.) Address Proof of business (Electricity bill, Rent agreement, etc.) Bank Account Details (Cancelled cheque, bank statement) Photographs of the owner/authorized signatory

13. Importance of GST License Legal recognition as a supplier of goods/services. Authority to collect GST from customers . Eligibility to claim Input Tax Credit (ITC) . Enables inter-state supply of goods/services. Required for participating in government tenders and large contracts.

14. b ) Tax Invoice & Documentation Regulation Dealers must issue: Tax Invoice (for taxable supplies) Bill of Supply (for exempt supplies/composition dealers) Debit & Credit Notes E-way Bills (goods > ₹50,000 in transit) Proper records must be maintained for at least 6 years . C)Return Filing Regulation Compulsory filing of returns: GSTR-1 (Outward supplies) GSTR-3B (Monthly summary) GSTR-9 (Annual return) Others for specific categories (e.g., GSTR-5 for non-residents).

15. d ) Payment Regulation Tax payment must be made monthly/quarterly before due date. Modes of payment: Online banking, NEFT/RTGS, credit/debit card, challans . e) Input Tax Credit (ITC) Regulation Dealers can claim ITC on tax paid for purchases. ITC can be availed only if: Supplier has filed returns. Goods/services actually received. Tax invoice available. f) Compliance & Penalty Regulation Non-compliance attracts penalties: Late filing → Late fee + interest Failure to register → Penalty 10% of tax due (min ₹10,000) Fraudulent activity → Penalty 100% of tax due + prosecution

16. GST Returns 1. Introduction A GST Return is a document that contains details of sales, purchases, tax collected, and tax paid . Every registered dealer must file GST returns online through the GST portal. Purpose → To ensure tax compliance , claim Input Tax Credit (ITC) , and maintain transparency . Types of GST Returns a) Regular Returns GSTR-1 → Details of outward supplies (sales) GSTR-2B → Auto-generated statement of ITC (purchases) GSTR-3B → Monthly summary return (sales, purchases, ITC, tax payable) b) Annual Returns GSTR-9 → Consolidated yearly return for all taxpayers GSTR-9C → Reconciliation statement (audit return for businesses above turnover limit)

17. c) Special Category Returns GSTR-4 → For composition scheme dealers (filed annually) GSTR-5 → For non-resident foreign taxpayers GSTR-6 → For Input Service Distributors (ISD) GSTR-7 → For TDS deductors under GST GSTR-8 → For e-commerce operators (tax collected at source) 3. Frequency of Filing Monthly/Quarterly → GSTR-1 & GSTR-3B Annually → GSTR-9 & GSTR-9C Special cases → Depending on taxpayer category Due Dates GSTR-1 → 11th of next month (monthly) / 13th (quarterly) GSTR-3B → 20th of next month (varies by turnover & scheme) GSTR-9/9C → 31st December of following financial year

18. 5. Importance of GST Returns Ensures legal compliance Helps in claiming Input Tax Credit (ITC) Avoids penalties & late fees Maintains business credibility Provides government with data on tax collection 6. Penalties for Non-Compliance Late filing fee → ₹50/day (₹20/day for nil return) Interest → 18% per annum on unpaid tax Heavy penalties for fraud/non-filing

19. GST Tax Payment 1. Introduction GST tax payment = process of paying collected GST to the government . Businesses collect GST from customers on sales and then deposit it with the government after adjusting Input Tax Credit (ITC). Tax payment is done online through GST portal . 2. Modes of Payment Online Payment Net banking Credit/Debit card UPI/NEFT/RTGS Offline Payment Through challan (at authorized banks using cash/cheque/DD)

20. 3 . GST Payment Process Login to GST portal → www.gst.gov.in Generate challan (Form GST PMT-06) Choose payment mode (online/offline) Pay tax → Payment receipt with CIN (Challan Identification Number) generated Tax credited to Electronic Cash Ledger of taxpayer 4. Components of GST Payment CGST → Central GST (collected by Central Government) SGST / UTGST → State GST / Union Territory GST (collected by State/UT Government) IGST → Integrated GST (for inter-state supply, collected by Centre and shared with States) Cess → Compensation cess on specific goods (luxury/sin goods like tobacco, aerated drinks, etc.)

21. 5 . Due Date of Tax Payment Monthly/Quarterly basis (along with return filing) Generally → 20th of next month for regular taxpayers (with GSTR-3B) For Composition scheme → quarterly payment 6. Importance of Timely Tax Payment Ensures compliance with law Avoids penalties and interest Maintains business credibility Prevents cancellation of GST registration