GST Introduction Slide.pdf

GST Introduction Presentation by: Vishal Somai Sir Sr. Faculty of Direct and Indirect Taxation  What we will cover under GST? Subject Index ❖ GST in India-A brief Introduction ❖ Supply under GST ❖ Charge of GST ❖ Composition Levy ❖ Exemption from GST ❖ Time...

GST Introduction Presentation by: Vishal Somai Sir Sr. Faculty of Direct and Indirect Taxation  What we will cover under GST? Subject Index ❖ GST in India-A brief Introduction ❖ Supply under GST ❖ Charge of GST ❖ Composition Levy ❖ Exemption from GST ❖ Time of Supply ❖ Value of Supply ❖ Input Tax Credit ❖ Registration ❖ Tax Invoice, Credit and Debit Notes  What we will cover under GST? Subject Index ❖ Payment of Tax ❖ E-Way Bill ❖ Returns ❖ Place Of Supply ❖ Accounts and Records under GST ❖ TDS and TCS under GST  Concept of GST Value Added Tax  Purchase Sale Value Rs.5000 Value Rs.6000 Profit 1000 Tax will levied on ? Suppose tax rate is 5%, then tax will be 1000 5%= Rs.50 Supplier / Seller Buyer / Customer Tax Invoice Sale 6000 Add: GST @ 5% 300 Total price 6300  Sale Invoice Purchase Invoice Sale 6000 Purchase 5000 Add: GST @ 5% 300 Add: GST @ 5% 250 Total price 6300 Total price 5250 GST liabilits Output tax 300 Less: input tax credit 250 Net Tax Liablility 50  Total tax 1000 5% = Rs. 50/- or Sales Invoice Tax (output tax) Less: Purchase Invoice Tax (input tax) Net GST Liability  CONCEPT OF GST (1) Value Added Tax: It is a single tax on the supply of goods and services, right from the manufacturer to the consumer with credit of taxes paid at previous stages available as set-off. In a nutshell, only value addition is taxed. (2) Continuous flow of Tax Credits: GST provides comprehensive and continuous chain of tax credits from the manufacturer's point/service provider's point upto the retailer's level/consumer's level thereby taxing only the value addition at each stage of supply chain. (3) Tax incidence is to be ultimately borne by Final Consumer: GST paid on the procurement of goods and services can be set off against that payable on the supply of  Article-265 Article 265 of the Constitution lays down that no tax shall be levied or collected except by the authority of law. Schedule VII divides the subject into 3 categories: Union List only central government has power of legislation State List only state government has power of legislation Concurrent List both central and state government can pass legislation  Article 246 of Schedule VII of Constitution of India (1) Notwithstanding anything in clauses (2), Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule (in this Constitution referred to as the “Union List”). (2) Parliament, and, subject to clause (1), the Legislature of any State also, have power to make laws with respect to any of the matters enumerated in List III in the Seventh Schedule (in this Constitution referred to as the “Concurrent List”). (4) Parliament has power to make laws with respect to any matter for any part of the territory of India not included 2 [in a State] notwithstanding that such matter is a matter enumerated in the State List.  Article 254 (1) If any provision of a law made by the Legislature of a State is repugnant to any provision of a law made by Parliament which Parliament is competent to enact, or to any provision of an existing law with respect to one of the matters enumerated in the Concurrent List, then, subject to the provisions of clause (2), the law made by Parliament, whether passed before or after the law made by the Legislature of such State, or, as the case may be, the existing law, shall prevail and the law made by the Legislature of the State shall, to the extent of the repugnancy, be void. (2) Where a law made by the Legislature of a State with respect to one of the matters enumerated in the Concurrent List contains any provision repugnant to the provisions of an earlier law made by Parliament or an existing law with respect to that matter, then, the law so made by the Legislature of such State shall, if it has been reserved for the consideration of the President and has received his assent, prevail in that State. Provided that nothing in this clause shall prevent Parliament from enacting at any time any law with respect to the same matter including a law adding to, amending, varying or repealing the law so made by the Legislature of the State.  13 Article 246A Special provision with respect to goods and services tax. (1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by Overriding effect. (2) Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.  Levy and collection of goods and services tax in Article 269A course of Inter-State trade or commerce.  ARTICLE-279A GOODS AND SERVICES TAX COUNCIL S Heading Details N 1. Constitution of GST Article 279A of the Constitution empowers the President of India to Council constitute a joint forum of the Centre and States namely, Goods & Services Tax Council (GST Council). The provisions relating to GST Council came into force on 12th September, 2016. The President constituted the GST Council on 15th September, 2016. 2. Members of the GST The GST Council shall consist of the following members, namely: — Council (a) the Union Finance Minister --Chairperson; (b) the Union Minister of State in charge of Revenue or Finance-- Member; (c) the Minister in charge of Finance or Taxation or any other Minister nominated bv each State Government -----Members. 3. Vice-Chairperson The State Finance Minister's shall choose one amongst themselves as Vice- Chairperson of the Council for such period as they may decide. 4. Role of The GST Council shall make recommendations to the Union and the States on- GST (a) the taxes, cesses and surcharges levied by the Union, the States and the local Council bodies which may be subsumed in the goods and services tax; (b) the goods and services that may be subjected to, or exempted from the goods and services tax; (c) model Goods and Services Tax Laws, principles of levy, apportionment of Goods and Services Tax levied on supplies in the course of inter-State trade or commerce under Article 269A and the principles that govern the place of supply; (d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax; (e) the rates including floor rates with bands of goods and services tax; (f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; (g)special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and (h) any other matter relating to the goods and services tax, as the Council may decide. 5. Quorum One-half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. 6. Procedure The Goods and Services Tax Council shall determine the procedure in the performance of its functions. 7. Decisions to be Every decision of the Goods and Services Tax Council shall be taken at a taken by GST meeting, by a majority of not less than 3/4th of the weighted votes of the Council members present and voting, in accordance with the following principles, namely: — (a) the vote of the Central Government shall have a weightage of 1/3rdof the total votes cast, and (b) the votes of all the State Governments taken together shall have a weightage of 2/3rdof the total votes cast, in that meeting. Manner of Utilisation of Input Tax Credit SUMMARY CHART  SUMMARY CHART Transaction within the states/UT's (Intra-State Inter-State- Transactions) transaction CGST SGST/UTGST IGST CGST SGST/UTGST IGST CGST IGST SGST IGST UTGST CGST IGST SGST UTGST Credit of CGST/SGST can be utilised only when credit of IGST has been completely utilised. ITC of SGST/UTGST should be utilized for payment of IGST, only after ITC of CGST has been utilized fully. CGST SGST/UTGST