Referencer 2018 Goods and Service Tax - KC Mehta & Co.

 
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
2018
Goods and Service Tax
Referencer
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
This booklet is prepared exclusively for the benefit and use of the
clients of K. C. Mehta & Co. This should not be used as a substitute
for professional advice. Reasonable care has been taken for
ensuring the accuracy and the authenticity of the contents of this
booklet. However, we do not take any responsibility for any error
or omission contained therein on any account. It is recommended
that the readers should take professional advise before acting on
the same.

This booklet is based on law updated till 25th January 2018
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
Content

Introduction         1

GST Structures       2

Supply Includes     10

Input Tax Credit    20

Job Work            23

Export              24

Import              26

Returns             28

Refund              29

Composition Levy    30

Compensation Cess   31

E-Way Bill          32

Notifications        35
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
Introduction

A comprehensive dual Goods and Services Tax (GST) has replaced
the complex multiple indirect tax structure from 1 July 2017.
Introduction of Goods and Service Tax (GST) is a significant step in
the reform of indirect taxation in India. Various Central and State
taxes are amalgamated into a single tax which helps mitigate the
double taxation, cascading, multiplicity of taxes, classification
issues, taxable event and leading to a common national market. A
comprehensive dual GST has replaced the complex multiple indirect
tax structure from 1 July 2017.

Integration of Taxes undet GST

               Service Tax                                      VAT / CST

      Central Excise                                                   Octroi,
                                                                       Purchase Tax
                                 ntral Taxes

                                                    Sta
                                                     te Taxes

      Additional                                                         State
   Customs Duty                                                          Cess & Surcharges
                               Ce

            Special                                                    Lottery &
    Additional Duty                                                    Gambling Tax

                     Central                                    Luxury Tax,
        Cess and surcharges                                     Entertainment Tax

                                               Goods and Service Tax                    1
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
DESTINATION PRINCIPLE
The GST structure follows the destination principle. Accordingly,
imports are subject to GST, while exports & supply to SEZ qualify as
zero-rated supply. In the case of inter-State transactions within
India, the State tax shall apply in the State of destination as
opposed to that of origin. Under this system, tax is administered,
collected, and shared by both the Centre and the State
governments, based on the nature of transaction (within the state
or interstate).

GST Structure
                                                  CGST
                                                 Central GST

                              Intra State

                                                   SGST
       GST                                         State GST

      Good supplied or
      Services provided

                               Inter State

                                                     IGST
                                                  Integrated GST

  2
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
GST Tax Components

              Central GST

  CGST       

             
                 Supplies within the states
                 Tax is collected by centre

              State GST
                 Supplies within the states
  SGST       

                Tax is collected by state

              Union Territory GST

 UTGST       

             
                 Supplies within union territory
                 Tax is collected by union
                 territory

              Integrated GST

   IGST      

             
                 On inter sate and import transactions
                 Tax is collected and shared between
                 centre and states

                            Goods and Service Tax        3
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
Utilization of ITC (Input Tax Credit)
    ITC
 availed of
                       ITC can be utilized for

                  To be utilized primarily for paying liability of
              1   CGST

  CGST        2   If balance remains after paying CGST, the same
                  can be utilized for paying liability of IGST

              X   Cannot be utilized for paying SGST

              1   To be utilized primarily for paying liability of
                  SGST or UTGST

 SGST /           If balance remains after paying SGST / UTGST,
              2   the same can be utilized for paying liability of
 UTGS             IGST

              X   Cannot be utilized for paying CGST

                  To be utilized primarily for paying liability of
              1   IGST

                  If balance remains after paying IGST, the same
              2
     IGST         can be utilized for paying liability of CGST

                  If balance remains after paying IGST and CGST,
              3   the same can further be utilized for paying
                  liability of SGST

 4
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
THRESHOLDS AND ELIGIBILITY CRITERIA
    Taxpayers with an aggregate turnover of Rs. 20 lakhs would
     be exempted from tax. For, notified states, the exemption
     would be Rs. 10 lakhs.
    Aggregate turnover shall include the aggregate value of all
     taxable and non-taxable/ non-GST supplies, exempt/ Nil-
     rated supplies and exports of goods and/or services and
     exclude taxes under GST.
    Composition Levy threshold limit to be Rs.1 crore.
    Service provided other than Restaurants not serving alcohol
     are not eligible for composite schaeme.
    Turnover limit recommended to be raised to Rs. 1.5 Cr in
     23rd GST Council meeting - to be notified after necessary
     amendment in the Act

                                Goods and Service Tax              5
Referencer 2018 Goods and Service Tax - KC Mehta & Co.
Registration
Every supplier shall be liable to be registered under GST Law in the
State from where he/she makes a taxable supply of goods and/or
services if his/her aggregate turnover exceeds thresholds
mentioned above. However, certain categories are required to get
registered mandatorily irrespective of the thresholds:
         Persons making any Inter-State taxable supply (e.g. from
          Delhi to Maharashtra)
         Casual taxable person (No fixed place where GST is
          applicable)
         Non-resident taxable person (No fixed place in India)
         Persons who are required to pay tax under reverse charge
         Persons who are required to deduct tax at source
         Agents of a supplier
         Input service distributor
         Persons who supply goods or services through E-commerce
          operator
         Every E - commerce operator (e.g. Flipkart, Amazon)
         An aggregator who supplies services under his brand name
         Any Specialized Agency of the UN or any Multilateral
          Financial Institution

  6
RATE CLASSIFICATION FOR GOODS

                              Food grains, Cereals, Milk, Jaggery,
                    Exempt
                              Common Salt

                             Worn clothing, Fly ash, Fishing net and
                     5%      fishing hooks, Sulphur recovered in
                             refining of crude
     Rates of Tax

                             Condensed milk, Printing ink, Specified
                    12%      parts of sewing machine, Furniture wholly
                             made of bamboo or cane, Diabetic food

                             Escalators, Fork lifts, lifting and handling equipment,
                             Electrical apparatus for radio and television
                     18%     broadcasting, Chocolates, Rubber tubes and
                             miscellaneous articles of rubber, Slabs of marbles and
                             granite, Detergents

                             Sugar confectionery, Preparation of cerelas, our, starch
                             or milk, Salt, sulphur, earths and stones, Tanning or
                    28%      dyeing, Essential oils, perfumery, Washing preparations,
                             Explosives, Miscellaneous chemical products, Plastics,
                             rubber, leather, Furskin and woods and articles thereof

                    28%      Small cars (1% or 3% cess), Luxury cars
                    +Cess    (15% cess), Pan masala, Cigarette, tobacco

                                     Goods and Service Tax                               7
RATE CLASSIFICATION FOR SERVICES

                           Education, Healthcare, Residential
                    Exempt accommodation, Hotel/ Lodges with,
                           tariff below INR 1000
     Rates of Tax

                           Goods transport, Rail tickets (other than
                           sleeper class), Economy class air tickets,
                     5%
                           Cab aggregators, Selling space for
                           advertisements in print media

                           Works contract, Business Class air travel,
                     12%
                           Telecom services, Financial services Hotel/
                      to
                     18%   Lodges with tariff between INR 1000 and
                           7500

                    28% Betting, Gambling, Hotel/ Lodges
                           with tariff above INR 7500

 8
Definitions

     Term      Definition

             Goods and Service Tax   9
Supply Includes

 Supply made for consideration - Taxable
     Sale
     Transfer
     Barter
     Exchange
     Licence
     Rental
     Lease or disposal
     Import of service whether or not for furtherance of
      business

  Supply made even without consideration - Taxable

     Permanent transfer or disposal of business where ITC
      has been availed
     Supply between related/distinct person for furtherance
      of business
     Gift by employer to employee exceeding
      fifty thousand rupees
     Supply of goods by principal to agent and
      vice versa
     Import of service from related person or
      from any of his establishment outside
      India in course of furtherance of business

 10
Deemed Supply - Taxable

    Transfer of title in goods including hire purchase
    Transfer of right in goods
    Lease, tenancy, easement, licence to occupy, letting out
     commercial, industrial, residential land and building
    Treatment or process applied on other person's goods
    Transfer of business assets
    Renting of immovable property
    Construction till the issuance of completion certificate
    Works contract
    Supply of goods being food or any article for human
     consumption excluding alcoholic liquor along with supply of
     service
    Supply of goods by unincorporated association of body of
     person to a member thereof

Deemed Supply - Taxable

    Mixed Supply
    Individual supply of goods or services or any combination
     thereof for a single price
    GST shall be paid on the supply which attracts the highest rate
    Composite Supply
    Two or more taxable supply of goods or services
    Naturally bundled
    Conjunction with each other
    GST shall be paid on the principal supply
    Principal supply means supply of goods or service which
     constitutes the predominant element of composite supply

                                   Goods and Service Tax               11
TIME OF SUPPLY
Time of supply means time when goods have been deemed to
be supplied or services have been deemed to be provided. Time
of supply enables us to determine the rate of tax, value, and due
dates for payment of taxes.

Time of Supply of Goods

    In case of         Date of issue of an invoice by the
    Normal /            supplier, or
   Continuous          Date of removal of goods or date on
 Supply of Goods        which goods are made available to
   Earliest of          recipient
                     Date of receipt of goods
                     Date of Payment
      In case of     Date immediately following 30 days
       Reverse        from the date of issue of invoice by the
       Charge         supplier
      Earliest of    Any other case - date of entry of the
                      transaction in the books of accounts of
                      the recipient of supply
      In case of     Date of issue of voucher, if the supply is
      Supply of       identifiable at that point
       Voucher       Date of redemption of voucher, in all

      Earliest of     other cases

 12
Time of Supply of Services
                          Date of issue of an invoice by the
                           supplier, if invoice issued within 30
 In case of Supply         days from provision of service
    of Normal /
                          Date on which supplier receives the
    Continuous
                           payment
 Supply of Service
     Earliest of          Date of provision of service, if invoice
                           issued within 30 days from provision
                           of service
                        Date of Payment
                        Date immediately following 60 days
 In case of Reverse      from the date of issue of invoice by
       Charge            the supplier
     Earliest of        Any other case - date of entry of the
                         transaction in the books of accounts of
                         the recipient of supply
                        Date of issue of voucher, if the supply
 In case of Supply       is identifiable at that point
    of Voucher          Date of redemption of voucher, in all
     Earliest of         other cases

In case time of supply is not determined as detailed above, then
time of supply shall be:
     Date on which a periodical return is filed, or
     Date on which the CGST / SGST is paid, in any other case.

                                  Goods and Service Tax               13
PLACE OF SUPPLY
GST is a destination based tax i.e. the goods/services will be taxed at
the place where they are consumed and not at the origin. Place of
supply of goods/services under GST defines whether the
transaction will be qualified as intra-state or inter-state, and
accordingly levy of SGST, CGST & IGST will be determined.

Place of Supply (PoS) - Goods

      Type of supply             Place of Supply (PoS)

                         Location of goods when the
  Involves movement
                         movement of goods terminates for
  of goods
                         delivery to recipient
  Without movement Location of goods at the time of
  of goods         delivery to recipient

  Supply on board        Location where goods are taken on
  for Conveyance         board

  Supply on direction
                      Location of principle place of business
  of agent/third
                      of such agent/third person
  person
  Goods are
                         Place of supply shall be the place of
  assembled or
                         such installation or assembly
  installed at Site

 14
Place of Supply (PoS) - Service
                              PoS when location of               PoS when Location of
   Type of Supply            Supplier AND Recipient              Supplier OR Recipient
                                    is in India                        is in India
                             Supply to registered Person:       Supply to registered Person:
                             Location of such person            Location of recipient

                             Supply to unregistered person:     Supply to unregistered Person:
 General Rule
                             Location of the recipient where    If the location of recipient not
                             the address on record exists. If   available: Location of supplier
                                                                of service
                             not, location of supplier

 In relation to immovable
 property,
                             Location of such Property
 accommodation at
                             If property outside India-         Location of such Property
 hotel, for social,
                             location of service recipient.
 religious function etc or
 services ancillary to it.

 Restaurant and catering
 services, personal
                             Location where the services        Location where the services
 grooming, fitness,
                             are actually performed             are actually performed
 beauty treatment,
 health service

                             Supply to registered Person:
 Service relating to         Location of such person
                                                                Location where the services
 Training and                Supply to unregistered person:     are actually performed
 performance appraisal       Location where the services are
                             actually performed

 Services provided by
 way of admission to a
 cultural artistic,
                             Location where the event is
 sporting, scientific,                                          Location where event is actually
                             actually held or where the park
 educational or                                                 held
                             or such other place is located
 entertainment event or
 amusement park or
 ancillary service

                                                Goods and Service Tax                          15
Place of Supply (PoS) - Service
                                          PoS when location of               PoS when Location of
         Type of Supply                  Supplier AND Recipient              Supplier OR Recipient
                                                is in India                        is in India

Service provided by way of:
 Organization of a cultural,
      artistic, sporting, scientific,   Supply to registered Person:
      educational or                    Location of such person
      entertainment event
      including supply of service
      in relation to a conference       Supply to any other person:         Location where event is
      fair, exhibition, celebration     Location where event held           actually held
      or similar or events, or
 Service ancillary to                  If event held outside India:
      organization of any of the        Location of recipient
      above events or services, or
      assigning of sponsorship of
      any of the above events.

Service on board a conveyance, Location of the first scheduled              Location of the first
                                                                            scheduled point of
including a vessel, and aircraft, a point of departure of that
                                                                            departure of that
train or a motor vehicle            conveyance for the journey
                                                                            conveyance for the journey

Telecommunication
                                        Where the fixed
Services including data transfer,                                           Location of recipient of
                                        telecommunication line is
broadcasting cable and direct to                                            service
                                        installed for receipt of service
home television services

                                        Location of the recipient of
Banking and other Financial             services on the records of the
                                                                            Location of recipient of
services including stock broking        supplier of services. If not, the
                                                                            service
services                                location of the supplier of
                                        services.

 16
Place of Supply (PoS) - Service
                                                                   PoS when Location of
                             PoS when location of Supplier
    Type of Supply                                                 Supplier OR Recipient
                               AND Recipient is in India
                                                                         is in India

                           Supply to registered Person: Location
Services by way of         of such person
transportation of goods,                                           Location of recipient of
including by mail or       Supply to any other person: Location    service
courier                    at which such goods are handed over
                           for their transportation

                           Supply to registered Person: Location
                           of such person                          Location from where the
Passenger transportation   Supply to any other person: Location    passenger embarks on the
service                    from where the passenger embarks on     conveyance for a
                           the conveyance for a continuous         continuous journey
                           journey

                           Supply to registered Person: Location
                           of such person
                                                                   Location of recipient of
Insurance service          Supply to any other person: Location    service
                           of the recipient of services on the
                           records of the supplier of services

                           Supply to registered Person: Location
                           of such person
Online information and
                           Supply to unregistered person:          Location of recipient of
database access or
                           Location of the recipient where the     service
retrieval services
                           address on record exists. If not,
                           location of supplier
Mobile connection for      Location where such pre-payment is      NA
telecommunication and      received or vouchers are sold
internet services provided
on pre-payment through
a voucher

                                             Goods and Service Tax                            17
VALUE OF SUPPLY
GST will be charged on the 'transaction value'. Transaction value is
the price paid or payable for the supply of goods/services between
un-related parties i.e. price is the sole consideration.

Transaction Value shall Include
  Any taxes, duties, cess, fees, and charges levied under any act,
      except GST
  Any amount that the supplier is liable to pay which has been
      incurred by the recipient and is not included in the price
  The value will include all incidental expenses in relation to sale
      such as packing, commission etc
  Subsidies linked to supply, except Government subsidies

  Interest/late fee/penalty for delayed payment of consideration

Transaction Value shall not Include

  Shown in Invoice: Any discount which is given at anytime
      before or after the supply of goods or services as recorded
      in the invoice
  Not Shown in Invoice: Any discount is established in terms
      of an agreement and Input tax credit has been reversed by
      the recipient

 18
Transactions Value Subject to Rules where

 Consideration not solely in money

 Supply between related and distinct person

 Goods received or made through agent

 Supply of service in case of pure agent

Specific Valuation where

 Purchase and sale of foreign
   currency, including money
   changing
 Booking of tickets for travel by
   air provided by an air travel
   agent
 Life insurance business

 Buying and selling of second
   hand goods
 Redeemable token, voucher,
   coupon, stamp

                                   Goods and Service Tax   19
Input Tax Credit

Eligibility & Conditions
  All goods or services used or intended to be used in the course
      or furtherance of business
  Possession of tax invoice or debit note issued by registered
      supplier
  Receipt of the goods and / or services

  The tax charged on the purchases has been deposited / paid to
      the government by the supplier in cash or via claiming input
      credit
  Supplier has filed GST returns

  In case of merger / amalgamation, ITC shall be allowed to
      merged / amalgamated Company subject to filing of ITC Form
      No 2

Time Limits
Credit for an invoice pertaining to a Financial Year cannot be
claimed after:
  Filing of the return for the month of September following the
      end of Financial Year or
  Filing of the annual return of the Financial Year

Whichever is earlier

 20
Utilization of Credit
Input tax credit of CGST, SGST / UTGST, IGST can be utilized for
paying taxes towards outward supplies. (For detailed utilization of
each type of credit refer page 4)

Negative list
  Motor vehicles and conveyance except for transport of
    goods
  Food and beverages, outdoor catering, beauty treatment,
    health services, cosmetic and plastic surgery except engaged
    in making outward taxable supply of same category
  Sale of membership in a club, health, fitness centre

  Rent-a-cab, Health insurance and Life insurance except
    where Government makes it obligatory for employers to
    provide it to its employees and engaged in making outward
    taxable supply of same category
  Travel benefits extended to employees on vacation such as
    leave or home travel concession
  Works contract service for construction of an immovable
    property except plant & machinery or for providing further
    supply of works contract service
  Goods and/or services for construction of an immovable
    property whether to be used for personal or business use

                                 Goods and Service Tax                21
 Tax paid under composition scheme

  Personal consumption

  Goods lost, stolen, destroyed, written off or disposed of by
      way of gift or free samples
  Goods or services or both received by a non-resident taxable
      person except for any of the goods imported by him

Reversal of credit
  Invoices which are not paid within 180 days of issue

  Inputs partly used for furtherance of business and partly for
      exempt supplies or for personal use
  Capital goods used partly for furtherance of business and
      partly for exempt supplies or for personal us

 22
Job Work

Essentials for Job Work
  Job worker must be registered or included as additional
   place of business by the principal
  Inputs must be returned within 1 year and capital goods
   within 3 years
  Jurisdictional range officer must be intimated

  Principal is responsible for compliance

                           Principal

         Job Worker                         Job Worker

                          Job Worker

            End User                        End User

                           GST Payable by

                                   Goods and Service Tax     23
Export

The export of Goods and Services is considered as Zero Rated Supply.
GST will not be levied on exports.

                            Zero-rated supply refers
                            to supply which is taxable
                            per se with nil rate of but
                            ITC can be availed

                                Zero Rated
                                  Supply

                                                         Supply of goods
              Export of Goods                          and/or services to SEZ
                and Services                           developer or SEZ unit

          Goods                               Services

                                        Supplier- in India
                                        Recipient- outside India
      Taking out of India               POS outside India
       to a place outside               Payment in foreign
              India                     exchange
                                        Not establishment of
                                        distinct person

 24
Exports can be made under Two Options
Option – 1 : Exports may be made under Bond or Letter of
             Undertaking without payment of integrated tax (IGST)
             and claim refund of unutilized input tax credit.
Option – 2 : Exports may also be done on payment of integrated tax
             and claim refund of tax paid on goods and/or services

                             Section Under Bond / LUT
                             16(3)(a)     Form
                                #      GST RFD-11
                                                            Refund
                                                             of ITC

      Export

                             Section      On payment
                             16(3)(b)
                                            of IGST
                                #
                                                            Refund
                                                            of IGST

     # of IGST Act.
     Section 54(6) of CGST Act: 90% Refund within 7 days
     Section 54(7) of CGST Act: Balance after verification within 60 days

                                        Goods and Service Tax              25
Supply of goods against
                                                   Advance Authorization
                                                     Chapter 4 of FTP
       Deemed Exports

     Deemed Export Refund claim                   Supply of capital goods
                                                 against Export Promotion
       Recipient of Deemed Export                     Capital Goods
                    or
                                                     Chapter 5 of FTP
      Supplier of Deemed Export in
      case where recipient does not
        avail ITC and furnishes an
                undertaking
                                                    Supply to Export
                                                     Oriented Unit
        Deemed Export                               Chapter 6 of FTP

                                                 Supply of gold by a bank or
                                                  Public Sector Undertaking
                                                    Notification 50/2017-
                                                  Customs dtd. 30.06.2017

      Import

                           Import of Goods
                           Bringing goods into India from a place
                           outside India
       Definition           Import of Services
                           Supply of service where supplier of service is
                           outside India, recipient of service is in India
                           and place of supply is in India

26
Import of Goods
                   On import of goods IGST shall be levied
                   under the Customs Act, 1962 read with the
                   Custom Tariff Act, 1975
                   Import of Services
     Levy
                   On import of services IGST shall be levied
                   under the IGST Act
                   Import of goods or services will be treated as
                   deemed inter-State supplies and IGST will be
                   levy

                   Import of Goods: Importer of goods
Liability to pay
    tax on         Import of Service: Recipient of service on
                   reverse charger basis

                   Import of Goods:
                   Eligible for credit of IGST paid. No credit of BCD
                   and custom cess paid under customs
 Eligibility of
                   Import of Service:
    Credit
                   Eligible for credit of IGST paid
                   * Subject to goods/services are not specified in
                     ineligible credit list

                                Goods and Service Tax                27
Returns

 Forms of
                             Purpose of Return
  Return

     GSTR-1   Outward Supplies by registered person

     GSTR-2   Inward Supplies by registered person

     GSTR-3   Monthly Summary Return by registered person

     GSTR-4   Quarterly Return for Composition Scheme

     GSTR-5   Non-Resident Tax Person

     GSTR-6   Return by Input Service Distributor

     GSTR-7   Return by a Tax Deductor at Source

     GSTR-8   Return by an E-commerce operator/Tax collector

     GSTR-9   Annual Return by registered person

28
Refund

Type of Refund
    Export of goods and services including supply to SEZ
    Deemed Export
    Refund of accumulated Input Tax Credit on account of inverted
     duty structure other than specified goods, Nil rated or fully
     exempt supplies.
    Excess payment due to mistake.
    Refund of CGST & SGST paid by treating the supply as intra-
     State supply which is subsequently held as inter-State supply
     and vice versa.

Time Limit & Process
    GST refund claims must be filed within 2 years from the
     relevant date by filing Form RFD-01 electronically
    In case other than export, the refund has to be sanctioned
     within a period of 60 days from the date of receipt of the claim

Refund in case of Export
    Refund of accumulated ITC by filling application for refund
     online or Refund of IGST paid by filling table 6A of GSTR1
    90% Refund within 7 days , balance 10% after verification of
     documents

                                 Goods and Service Tax            29
Documents Required
      In case of Export- Statement containing the number and date
       of shipping bills or bills of export and the number and the date
       of the relevant export invoices and bank realization
       certificates in case of export of service or statement containing
       inward invoice details
      In other cases - Statement containing invoice details and other
       as may be specified

COMPOSITION LEV Y
 Composition levy scheme is a voluntary and optional scheme.
 Under this scheme , a registered taxable person , whose aggregate
 turnover does not exceed Rs. One crore in the financial year 2016-
 17 may opt for this scheme.
 A taxpayer registered under composition levy scheme has to pay
 an amount equal to certain fixed percentage of his annual turnover
 as tax to the government. This tax has to be paid on quarterly basis.
 A taxable person opting this scheme has to issue bill of supply.

 Aggregate Turnover
   Includes:                         Excludes:
    Taxable Supplies                 Inward supplies under RCM
    Exempt Supplies                  Taxes including cess paid
    Export of goods or                 under GST
       services or both               Value of supply by a person
    Inter-state supplies               extending deposits, loans or
                                        advances
  30
Rate of Tax (CGST + SGST):

             of the turnover in case of a manufacturer of
      1%
             goods

             of the turnover in state in case of person
      5%     engaged in restaurant services not serving
             alcohol

             of the turnover in state in case of other
      1%
             suppliers

COMPENSATION CESS

  Compensation Cess is levied for providing compensation to
   states for loss of revenue arising due implementation of GST.
  Compensation Cess is levied on Pan Masala, Aerated waters
   containing added sugar or other sweetening matter or
   flavoured, Tobacco and tobacco products, Cigarettes, Coal,
   lignite, Peat and Motor vehicles
  Input tax credit in respect of GST Compensation Cess shall be
   utilized only towards payment of GST Compensation Cess on
   supply of goods and services leviable under the compensation
   bill

                                Goods and Service Tax              31
E-Way Bill

Implementation:
Inter-State:
For below listed states, E-way bill is mandatory for inter-state
transaction from 1st February, 2018. Other states can opt between
1st February to 1st June, 2018.
  Name of Sates: Karnataka, Rajasthan, Sikkim, Kerala, Jharkhand,
                 Uttarakhand, Telangana, Himachal Pradesh,
                 Puducherry, Gujarat and Goa
Intra-State:
From 1st June, 2018 E-way bill rules will uniformly apply to all states

Registration
Every GST Tax payer needs to mandatorily register on the system
with help of GSTIN and mobile number registered with the GST
system.

Meaning
E-Way Bill is an electronic way bill for movement of goods only. E-
Way Bill can be generated on the portal or through SMS.

 32
Applicability
Basic Limit: An e-way bill has to be prepared for every
consignment where the value of the consignment exceeds
Rs.50,000.
Transactions: Issue of E-way bill in case of Inward or Outward
movement of goods for
    a)   Supply of Goods within the State
    b)   Transfer of goods within two units having same GSTIN.
    c)   Semi knocked down/ Complete knocked down
    d)   Supply of Goods Outside the State
    e)   Export
    f)   Import
    g)   Job work (within & outside state)
    h)   Brach transfer
    i)   Cancellation
    j)   Exhibition or Fairs
    k)   Line Sales
    l)   Others
Exemption: No E-way bill is required to be generated in case of
    a)   Transport of goods of value less than Rs. 50,000 (other
         than interstate supply for job-work).
    b)   The goods are being transported by a non-motorised
         conveyance.
    c)   Transport of goods specified in Annexure attached with
         rules.

                                Goods and Service Tax             33
d)   Goods being transported are not treated as supply as
          per Schedule III of the Act
     e)   Goods being transported are alcoholic liquor for
          human consumption, petroleum crude, high speed
          diesel, motor spirit, natural gas or aviation turbine fuel
     f)   Exempted goods specified in notification no. 2/2017 -
          Central tax (Rate) other than de-oiled cake.
     g)   Movement of goods within such areas as are notified
          under clause (d) of sub-rule (14) of rule 138 of the
          Goods and Services Tax Rules of the concerned State.

Who should generate
Registered Person:
E-way bill must be generated when there is a movement of
goods of more than Rs 50,000 in value to or from a Registered
Person. Registered person or the transporter may choose to
generate and carry e-way bill even if the value of goods is less
than Rs 50,000.
Unregistered Persons:
Unregistered persons are also required to generate e-Way Bill.
However, where a supply is made by an unregistered person to
a registered person, the receiver will have to ensure that all the
compliance are met as if they were the supplier.
Transporter:
Transporters carrying goods by road, air, rail, etc. also need to
generate e-Way Bill if the supplier has not generated an e-Way
Bill.

34
Documents / Details require
 Invoice/ Bill of Supply / Challan related to the consignment of
  goods.
 Transport by road – Transporter ID or Vehicle number.

 Transport by rail, air, or ship – Transporter ID, Transport
  document number, and date on the document.

 Notifications

CGST
    Particulars                    Notification

                    Principal Notification No. 01/2017
     To notify      Amended vide Notification No. 27/2017
 scheduled rates
    for Goods       Amended vide Notification No. 34/2017
                    Amended vide Notification No. 41/2017

                    Principal Notification No. 01/2017
 To notify exempt Amended vide Notification No. 28/2017
      Goods       Amended vide Notification No. 35/2017
                    Amended vide Notification No. 42/2017

 To notify exempt
   Goods at the   Principal Notification No. 03/2017
   specified rate

                               Goods and Service Tax           35
Particulars                      Notification

  To notify reverse        Principal Notification No. 04/2017
 Charge on supply of       Amended vide Notification No. 36/2017
       goods               Amended vide Notification No. 43/2017

 To notify supplies of
  goods in respect of   Principal Notification No. 05/2017
  which no refund of    Amended vide Notification No. 29/2017
  unutilised input tax  Amended vide Notification No. 44/2017
credit shall be allowed

                           Principal Notification No. 11/2017
     To notify rates for   Amended vide Notification No. 20/2017
     supply of services    Amended vide Notification No. 24/2017
      under CGST Act       Amended vide Notification No. 31/2017
                           Amended vide Notification No. 46/2017

                           Principal Notification No. 12/2017
                       Amended vide Notification No. 21/2017
To notify exemption on Amended vide Notification No. 25/2017
   supply of services
    under CGST Act     Amended vide Notification No. 30/2017
                       Amended vide Notification No. 32/2017
                           Amended vide Notification No. 47/2017

To notify categories of
 services on which tax     Principal Notification No. 13/2017
will be payable under
                           Amended vide Notification No. 22/2017
    reverse charge
   mechanism under         Amended vide Notification No. 33/2017
       CGST Act

36
Particulars                       Notification

 To notify the supplies which
 shall be treated neither as a
                               Principal Notification No. 14/2017
supply of goods nor a supply
of service under the CGST Ac

 To notify the categories of
  services the tax on intra-  Principal Notification No. 17/2017
State supplies of which shall Amended vide Notification No.
  be paid by the electronic   23/2017
    commerce operator

IGST
    Particulars                       Notification

                       Principal Notification No. 01/2017
                       Amended vide Notification No. 27/2017
 To notify scheduled
                       Amended vide Notification No. 34/2017
   rates for Goods
                       Amended vide Notification No. 35/2017
                       Amended vide Notification No. 43/2017

                       Principal Notification No. 02/2017
  To notify exempt     Amended vide Notification No. 28/2017
       Goods           Amended vide Notification No. 36/2017
                       Amended vide Notification No. 44/2017

  To notify exempt
    Goods at the       Principal Notification No. 03/2017
    specified rate

                                  Goods and Service Tax             37
Particulars                         Notification

                             Principal Notification No. 04/2017
To notify reverse Charge
                             Amended vide Notification No. 37/2017
  on supply of goods
                             Amended vide Notification No. 45/2017

   To notify supplies of
goods in respect of which Principal Notification No. 05/2017
 no refund of unutilised   Amended vide Notification No. 29/2017
 input tax credit shall be Amended vide Notification No. 46/2017
         allowed

                             Principal Notification No. 08/2017
To notify rates for supply   Amended vide Notification No. 20/2017
 of services under CGST      Amended vide Notification No. 24/2017
            Act              Amended vide Notification No. 39/2017
                             Amended vide Notification No. 48/2017

                             Principal Notification No. 09/2017
                             Amended vide Notification No. 21/2017
To notify exemption on       Amended vide Notification No. 25/2017
supply of services under
       CGST Act              Amended vide Notification No. 33/2017
                             Amended vide Notification No. 42/2017
                             Amended vide Notification No. 49/2017

  To notify categories of    Principal Notification No. 10/2017
services on which tax will   Amended vide Notification No. 22/2017
be payable under reverse
charge mechanism under       Amended vide Notification No. 34/2017
         CGST Act

38
Particulars                         Notification

  To notify the supplies which
  shall be treated neither as a
                                   Principal Notification No. 11/2017
supply of goods nor a supply of
   service under the CGST Act

   To notify the categories of     Principal Notification No. 14/2017
 services the tax on intra-State
supplies of which shall be paid
  by the electronic commerce       Amended vide Notification No.
            operator               23/2017

                                   Goods and Service Tax                39
SGST / UTGST

         Particulars                       Notification

  To notify scheduled       The CGST Notification detailed herein shall
    rates for Goods         be pari Materia applicable to SGCT/UTGST

      To notify exempt      The CGST Notification detailed herein shall
           Goods            be pari Materia applicable to SGCT/UTGST

   To notify exempt
                        The CGST Notification detailed herein shall
 Goods at the specified
                        be pari Materia applicable to SGCT/UTGST
         rate

   To notify reverse
                            The CGST Notification detailed herein shall
  Charge on supply of
                            be pari Materia applicable to SGCT/UTGST
        goods

  To notify supplies of
   goods in respect of
                         The CGST Notification detailed herein shall
   which no refund of
                         be pari Materia applicable to SGCT/UTGST
   unutilised input tax
 credit shall be allowed

      To notify rates for
                            The CGST Notification detailed herein shall
      supply of services
                            be pari Materia applicable to SGCT/UTGST
       under CGST Act

  To notify exemption
                            The CGST Notification detailed herein shall
  on supply of services
                            be pari Materia applicable to SGCT/UTGST
    under CGST Act

 40
Particulars                        Notification

   To notify categories of
                              The CGST Notification detailed
services on which tax will be
                              herein shall be pari Materia
payable under reverse charge
                              applicable to SGCT/UTGST
 mechanism under CGST Act

 To notify the supplies which
 shall be treated neither as a The CGST Notification detailed
supply of goods nor a supply herein shall be pari Materia
  of service under the CGST    applicable to SGCT/UTGST
              Act

  To notify the categories of
services the tax on intra-State The CGST Notification detailed
  supplies of which shall be    herein shall be pari Materia
    paid by the electronic      applicable to SGCT/UTGST
     commerce operator

                                  Goods and Service Tax          41
Goods and Service Tax
Website: www.kcmehta.com
Ahmedabad                         Bengaluru
308, Aaryan Workspaces,           19/4, 4th Main,
St. Xavier's College Corner,      Between 7th & 8th Cross,
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Navrangpura, Ahmedabad 380 009,   Bengaluru 560 003, INDIA           Independent Member
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Mumbai                            Vadodara
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