GST Application at AQM Technologies

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Questions and Answers

What is the acronym GSTN stand for?

Goods and Services Tax Network

When was the Goods and Services Tax (GST) launched in India?

1st April, 2010

1st January, 2015

1st July, 2017 (correct)

1st September, 2016

GST aims to reduce tax evasion and corruption in the taxation system.

True

What is the purpose of Form GSTR-1?

To furnish details of outward supplies of goods and services Signup and view all the answers

Who is required to file Form GSTR-1?

Every registered taxable person, except specified categories Signup and view all the answers

What is the purpose of Form GSTR-3B?

To declare summary GST liabilities for a specific tax period Signup and view all the answers

Why is reconciliation between GSTR-3B and GSTR-1 important?

To ensure accurate calculation of output tax payable and avoid discrepancies Signup and view all the answers

What is the primary purpose of GSTN (Goods and Services Tax Network)?

Facilitating GST administration Signup and view all the answers

Who are the owners of the GSTN?

All of the above Signup and view all the answers

The GSTN helps taxpayers with registration, tax payments, and claiming GST returns.

True Signup and view all the answers

What is the primary responsibility of GSTN regarding GST payments?

calculating and settling the Integrated GST (IGST) along with the Input Tax Credit (ITC) Signup and view all the answers

GSTN is responsible for matching purchase invoices with sale invoices to fix any __________.

mismatches Signup and view all the answers

Match the taxes with their descriptions:

VAT = State level tax levied on goods and services sold intra-state Excise Duty = Tax on products manufactured domestically by the Central Government Service Tax = Tax levied on service providers for services provided Customs Duty = Tax on imports and exports for international transactions Signup and view all the answers

What is the impact of GST on the sale or transfer of immovable property?

It is not included in GST Signup and view all the answers

GST implementation will lead to a decrease in prices in the telecom sector.

True Signup and view all the answers

What percentage of India's GDP does the agriculture sector cover?

16% Signup and view all the answers

Service sector in India constitutes ____% of the GDP.

60 Signup and view all the answers

Match the following tax rates with the corresponding products:

0% = Milk, Egg, Curd, Lassi, Unpacked foodgrains, Paneer 5% = Sugar, Packaged Paneer, Coffee Beans, Domestic LPG, Skimmed Milk, Cashew Nuts 12% = Butter, Ghee, Processed Food, Almonds, Mobile 18% = Hair Oil, Capital Goods, Toothpaste, Pasta, Computers 28% = Small cars, Consumer Durables (AC & Fridge), Luxury and Sin Items Signup and view all the answers

What tab should you select on the case details page to submit an adjournment request?

NOTICES Signup and view all the answers

How many PDF/JPEG files can you upload when submitting supporting documents for an adjournment request?

Four Signup and view all the answers

To file a request for adjournment, you need to click the _______ button.

SUBMIT Signup and view all the answers

If the second adjournment request is rejected, a taxpayer can request a third adjournment.

False Signup and view all the answers

Match the notice/report with its corresponding type:

Notice for Discrepancy under rule 101(4)

Additional Notice for Discrepancy under rule 101(4)

Audit Report u/s 65(6) (GST ADT-02)

Audit Report u/s 66 (GST ADT-04)

Show Cause Notice (DRC-01)

1 = Notice for Discrepancy under rule 101(4) 2 = Additional Notice for Discrepancy under rule 101(4) 3 = Audit Report u/s 65(6) (GST ADT-02) 4 = Audit Report u/s 66 (GST ADT-04) 5 = Show Cause Notice (DRC-01) Signup and view all the answers

Study Notes

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.

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Description

Project report on implementation of Goods and Services Tax at AQM Technologies Pvt. Ltd. as part of Master of Business Administration course. The report analyzes the application of GST in the company.