GST Application at AQM Technologies

Introduction to GST

• GST (Goods and Services Tax) is a comprehensive indirect tax reform in India
• Introduced in 2017 to replace multiple taxes, such as VAT, Excise, and Service Tax

History of GST

• GST concept was first proposed in 2006 by the then Union Finance Minister
• The Constitution (101st Amendment) Act 2016 was passed to enable GST implementation
• GST was launched on July 1, 2017, with a mid-night function at the Central Hall of Parliament

Company Profile

• AQM Technologies Pvt. Ltd. is a company that provides Quality of Service (QoS) monitoring and reporting solutions
• Founded in 2000 with a mission to make testing experience a "HAPPY TESTING" experience
• Offers a range of services, including testing, security, and performance monitoring

Objective of GST

• To understand the meaning of Goods and Services Tax (GST)
• To analyze the impact of GST on Gross Domestic Product (GDP)
• To reduce tax evasion and corruption
• To introduce a "One Country – One Tax" system

Research Methodology

• Define project objectives
• Conduct user requirement analysis
• Assess available technologies
• Develop and test the GST application
• Deploy and integrate the application
• Monitor and evaluate the application's performance
• Gather feedback and iterate

Types of GST

• CGST (Central Goods and Services Tax)
• SGST (State Goods and Services Tax)
• IGST (Integrated Goods and Services Tax)
• UTGST (Union Territory Goods and Services Tax)

Forms and Returns

• Form GSTR-1: Statement of Outward Supplies
• Form GSTR-3B: Simplified summary return
• Importance of reconciliation between GSTR-1 and GSTR-3B

Scope of GST

• Introduction to GST
• Types of GST
• GST implementation
• GST administration
• Technology and GST

Limitations of GST

• Data security and privacy concerns
• User adoption and training challenges
• Maintenance and support requirements### Importance of GST Application
• Adequate resources and mechanisms for ongoing support and enhancement of the GST application are crucial for its long-term viability and effectiveness.
• Developing and maintaining a GST application incurs significant costs, including software development, infrastructure, licensing fees, and personnel expenses.

Concepts of GST

• GST is a unified tax that includes all indirect taxes of central and state governments.
• It is a destination-based tax that is collected on both goods and services at all stages of value addition.
• GST consists of Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST).
• Integrated Goods and Service Tax (IGST) is a component of GST that examines interstate transactions of goods and services.

Structure of GST

• GST System Project is a unique and complex IT initiative that establishes a uniform interface for taxpayers and a common and shared IT infrastructure between the Centre and States.
• Private players have a 51% share in the GST Network (GSTN), and the remaining is owned by the government.
• GSTN is responsible for providing robust IT infrastructure and information passing.

Functions of GST

• Registration: GSTN issues GST Identification Number to taxpayers and files information with tax authorities after registration verification.
• Invoice Matching: GSTN tallies purchase invoices with sale invoices to check for mismatches and fixes them for Input Tax Credit.
• Return Filing: GSTN processes and forwards returns to central and state tax authorities.
• Taxpayer Profile Analysis: GSTN verifies taxpayer details and puts them forth to central and state government tax authorities for approval.

Timeline and Evolution of GST

• 2000: Empowered Committee set up to consider GST implementation.
• 2006: Finance Minister announces GST implementation on April 1, 2010.
• 2009: Empowered Committee submits discussion paper on GST in India.
• 2010: GST implementation delayed to April 2011.
• 2011: Constitution (115th Amendment) Bill introduced in Lok Sabha to introduce GST.
• 2014: Lok Sabha dissolves, and the Bill lapses.
• 2015: Constitution (122nd Amendment) Bill introduced in Lok Sabha to introduce GST.
• 2016: Bill is passed by Lok Sabha and Rajya Sabha, and is notified as the Constitution (101st Amendment) Act.
• 2017: GST is officially rolled out.

Taxes before GST Introduction

• VAT (Value Added Tax)
• Excise Duty
• Customs Duty
• Central Sales Tax
• Service Tax

Changes after GST Introduction

• GST focuses on the "supply" of goods and services, unlike older taxes that were also applicable to the manufacturing process.
• It has replaced multiple taxes, including Service Tax, Central Excise Duty, and Additional duties related to Excise.
• GST has absorbed VAT, Luxury Tax, Purchase Tax, Entertainment Tax, and Taxes on lottery, gambling, and advertisements.

Positive Impacts of GST in India

• Single taxation system reduces the number of indirect taxes.
• Improves cost competition of goods and services.
• Business-friendly environment increases tax-GDP ratio and reduces inflation rate.
• Corrupt-free taxation system is established.
• Manufacturing cost is reduced, and prices of consumer goods likely to come down.

Negative Impacts of GST in India

• Real estate market affected badly by GST introduction.
• Dealers who don't pay central excise tax may be forced to pay GST.
• Short-term impact of GST may be negative for the broader economy.
• GST is mystifying term where double tax is changed in the name of single tax.

Sector-Wise Impact of GST

• Pharma: Simplifies taxation structure, boosts medical tourism, and creates a level playing field for generic drug makers.
• FMCG: Reduction in price of consumer goods.
• Real Estate: Partial impact due to the sale or transfer of immovable property not being included in GST.
• Telecommunication: Handset manufacturers will find it easier to sell their equipment.
• Agriculture: GST may provide India with its first national market for agricultural goods.
• Service Sector: Increase in cost of services like Banking, Insurance, and Telecom.
• Textiles: Manufacturing cost may be reduced due to the subsuming of various taxes.

Challenges of GST

• Successful implementation requires all states to implement GST.
• GST rules need to be refined and free from uncertainty.
• GST is a destination-based tax, making it necessary to clearly identify the recipient of goods.
• Awareness about GST and its advantages needs to be increased.

Revising GST Rates

• GST rates can be revised according to the convenience of the people.
• Rates on essential goods can be reduced, while rates on luxuries can be increased.
• Tax rates on harmful products like tobacco can be increased.### Filing Nil Form GSTR-1 Online by Normal Taxpayer
• A nil return can be filed if there are no outward supplies, no amendments to be made, no credit/debit notes to be declared or adjusted, and previous month's return GSTR-1 and GSTR-3B is filed.
• Steps to file a nil Form GSTR-1:
  • Access the GST portal and log in with valid credentials.
  • Navigate to Services > Returns > Returns Dashboard and select the financial year, quarter, and period for which the return is being filed.
  • Click the PREPARE ONLINE button in the GSTR-1 tile.
  • Select the File Nil GSTR-1 checkbox and delete any saved records.
  • Confirm the deletion of saved records.
  • Select the File Nil GSTR-1 checkbox again.
  • Click the FILE STATEMENT button.

Viewing Issued Notice, Filing Reply, and Taking Subsequent Actions during Audit Process

• Steps to view all communications issued by the tax official during audit process:
  • Access the GST portal and log in with valid credentials.
  • Navigate to Dashboard > Services > User Services > View Additional Notices/Orders option.
  • Click the View hyperlink under the Action column to go to the Case Details screen of the issued notices/reports.

Filing Reply to the Issued Notice

• Steps to file a reply to an issued notice:
  • Navigate to the Case Details page of the particular case ID and select the REPLIES tab.
  • Click the REPLY button and select the Reply to Notice option from the drop-down.
  • Generate a new reply reference number.
  • Upload supporting documents, if any.
  • Enter the reason for reply and select the declaration checkbox.
  • Click the SUBMIT button.

Request for Adjournment of Notice for Discrepancy under rule 101(4)

• Steps to request for adjournment of notice for discrepancy:
  • Navigate to the Case Details page of the particular case ID and select the NOTICES tab.
  • Click the Reply hyperlink under the Status column.
  • Alternatively, navigate to the REPLIES tab and select Request for Adjournment of Notice for Discrepancy under rule 101(4) from the drop-down.

Make Payment via Replies Tab to Issued Notices/Reports

• Steps to make payment against the notices/reports issued by the tax official:
  • Navigate to the Case Details page of the particular case ID and select the REPLIES tab.
  • Click the REPLY button and select the Reply to Notice option from the drop-down.
  • Generate a new reply reference number.
  • Enter the amount to be paid and select the payment option.

Enforcement

• The enforcement process involves gathering intelligence, calling for documents, issuing summons, recording statements, inspecting/searching premises, seizing documents/goods, and detaining goods/conveyance.
• Communications received as part of enforcement case proceedings can be accessed through the GST portal.

Terms and Conditions

• The GST portal shall be used only for purposes authorized by GST Law/GST portal policy.
• Confidential information and personally identifiable information of taxpayers shall not be disclosed.
• Users of GST portal shall comply with all applicable laws and provide up-to-date, correct, and accurate information.

Conclusion

• GST has both positive and negative impacts on the economy.
• GST has facilitated economic growth by being transparent and has created losses in some sectors due to increased prices of commodities.
• GST has resulted in numerous economic benefits, and the government must continue to improve the GST regime to address concerns raised by stakeholders.