CA Umesh Sharma

CA Umesh SharmaArjuna (Fictional Character): Krishna, GST is applicable from 1st July, 2017. So, today give information about this.

Krishna (Fictional Character): Arjuna, Honorable President, Honorable Prime Minister, Honorable Finance Minister, declared that GST is applicable on 30th June at midnight 12 AM. GST is the biggest change in indirect taxes. The provisions of GST are applicable from small dealers to big dealers on every stage. Every trader must do business by understanding provisions of the act.

Arjuna: Krishna, What are the provisions which are applicable to all traders?

Krishna: Arjuna, the provisions which are applicable for all the traders are as follows:

1. All the information about GST is available at

2. If the aggregate turnover of any person is more than Rs. 20 Lakh then it is compulsory to take the registration for him.

3. On Interstate transactions IGST will be levied. CGST and SGST will be levied on Intrastate transactions. Similarly, UTGST will be levied on Union territory transactions.

4. There are 0%, 3%, 5%, 12%, 18% and 28% tax rates in GST.

5. In GST, petroleum products like petroleum crude, motor spirit, natural gas, Aviation turbine Fuel, are temporarily out of the ambit of GST.

6. In GST, tax is payable on advances also. It means if we gave any amount in advance the GST will be levied on it.

7. If goods or services purchased from unregistered dealer then GST is to be paid by Reverse charge Mechanism.

8. If the bill amount of one day from unregistered dealer is less than Rs. 5000 then there is no need to pay tax in RCM.

9. In GST Monthly Return will have to be filed.

10. GST is based on supply. At the time of supply, GST will be levied.

11. Small taxpayers whose aggregate turnover in a financial year is less than Rs. 75 Lakh can opt for composition scheme.

12. As per the provisions of composition scheme, manufacturer will have to pay 2% CGST and SGST. Retailer will have to pay 1% CGST and SGST and hoteliers will have to pay 5% CGST and SGST.

13. Registered taxable person will get ITC of tax paid on Input goods, input services and capital goods.

14. In GST, ITC of food and beverages, immovable property, passenger vehicle, goods of personal use, works contract etc. not available.

15. For goods HSN Codes and for services SAC Codes are used in GST. Tax rates of goods and services are decided using these codes.

16. Every taxpayer should check tax rates of goods and services according to the schedule and notifications otherwise taxpayer will have to face consequences.

17. At the time of supply of goods or services the supplier have to give tax invoice to the recipient. The tax invoice shall contain all the information which is necessary as per law.

18. If the aggregate turnover of taxpayer is less than Rs. 1.5 Crore then there is no need to mention HSN code of goods on invoice. If the turnover is more than Rs. 1.5 Crore but less than Rs. 5 Crore then it is necessary to mention two digits HSN code on the Invoice. If the turnover is Rs. 5 Crore or more then mention four digits HSN code on the invoice. If the goods are exported then mention eight digits HSN code on that Invoice.

Arjuna: Krishna, what lesson the taxpayer should learn from this?

Krishna: Arjuna, GST is new law. Government is giving so many notifications from 22nd June, 2017. It is important to do the business by understanding all the things. Businessman must be updated with the upcoming changes in the law.

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Author Bio

Qualification: CA in Practice
Company: R.B. Sharma and Co
Location: Aurangabad, Maharashtra, India
Member Since: 27 Jan 2018 | Total Posts: 359
1. Vice-Chairmen of WIRC of ICAI for the year 2015-2021. 2. Youngest Chairman of Aurangabad Branch of WIRC of ICAI in 2002. 3. Author of Popular Tax articles series based on Krishna and Arjuna conversation i.e “KARNITI” published in Lokmat on every Monday. Till date 335+ weekly articles ha View Full Profile

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  1. Sujit Kumar Das says:

    Please refer to your ponit serial no. 14, where you mention the nonavailability of ITC of GST. Can you provide the related realted Section, Rule please? It will help a lot.

  2. RSS says:


  3. yv rao says:

    we are covered under work contract ,we have sites all over india.some capital goods registered under motors vehicles act like tippers 4 wheelers etc. now we transfer tippers from one state to another site.what is the procedure to be followed for transfer

  4. ANIL ROY says:

    Earlier importer use to pass cenvat and charge vat/cst and how to invoice on the closing stock. We will be charging only gst and what about cenvat. Pls advice

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