GOODS AND SERVICE TAX-GST
Under GST, There are 4 types of taxes
How will above taxes Charged
Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi (National Capital Territory of Delhi), Lakshadweep, Punducherry etc.
UNDER GST FOLLOWING TAX SUBSUMED
Ο Registered Dealer- one who is registered under GST or having provisional ID.
Ο Unregistered Dealer- one who is not registered under GST or not having provisional ID.
Ο RCM- If any goods or services obtain from unregistered, then we need to pay tax under RCM (Reverse Charges Mechanism)
Ο E-way Bill- is an electronic way bill for movement of goods which can be generated on the GSTN portal
RATES UNDER GST-:
Ο 3 % on all Interstate and Intra state Supply of Goods i.e. Polished Diamond
Ο 0.25 % on all Interstate and Intra state Supply of Goods i.e. Rough Diamond
Ο Branch transfer is now taxable
Ο 5% on job work charges- (earlier there is not any taxes on Job work)
Ο 18% on supply of service.
Ο RCM (Goods as well as Services)-items are same as in Service tax.
Eg. If we received any professional fees from unregistered, then we need to paid GST under RCM.
INPUT TAX CREDIT UNDER GST
Ο Will get all input tax credit except which is blocked for credit
Ο Input tax credit on RCM on payment basis
Ο Input tax credit on capital goods also
Ο No input tax credit on composition tax paid
Blocked credit for setoff:
Ο On purchase of Motor vehicles
Ο Food and beverages, outdoor catering
Ο Membership of a club, health and fitness centre
Ο Rent-a-cab, life insurance and health insurance.
TYPES OF INVOICES UNDER GST
|1||Tax Invoice||By Registered person , if supply is taxable|
|2||Bill of Supply||By registered person to un reg. or to reg. person, when supply of exempted goods or service|
|3||Export Invoice||By Registered person to customer outside India|
|4||Receipt Voucher||When Advance payment is received (GST Attract)- also required mention of advance recd on tax invoice|
|5||Refund Voucher||When taxable supply not made against advance received|
|6||Payment Voucher||Under RCM, for payment to unregistered person|
|7||Revised Tax Invoice||Within one month from the date of issue of the registration certificate to already issued tax invoice|
|8||Debit Note/Credit Note||If any deficiency found in a tax invoice already issued|
Note: Standard contains for above invoice are mention in Tax Invoice rules
TAX HEADS FOR ACCOUNTING
Ο Input CGST a/c
Ο Output CGST a/c
Ο Input SGST a/c
Ο Output SGST a/c
Ο Input IGST a/c
Ο Output IGST a/c
Ο Electronic Cash Ledger (to be maintained on Government GST portal to pay GST)
Ο Electronic credit ledger
ACCOUNTING ENTRIES UNDER GST
Example 1: Intra-state
ο X purchased goods Rs. 1,00,000 locally (intrastate)
ο He sold them for Rs. 1,50,000 in the same state
ο He paid legal consultation fees Rs. 5,000
ο He purchased furniture for his office for Rs. 12,000
ο Assuming CGST @8% and SGST@8%
Ο Total Input CGST=8,000+400+960= Rs. 9,360
Total Input SGST=8,000+400+960= Rs. 9,360
Total output CGST=12,000
Total output SGST=12,000
Therefore Net CGST payable=12,000-9,360=2,640
Net SGST payable=12,000-9,360=2,640
Ο Thus due to input tax credit, tax liability of Rs. 24,000 is reduced to only Rs.5,280. Also, GST on legal fees is also adjusted which was not possible in current tax regime.
Ο If there had been any input tax credit left it would have been carried forward to the next year.
SETOFF OF TAXES PAID
Ο Order of setoff is as follow
⇒ IGST = IGST → CGST → SGST
⇒ CGST = CGST → IGST
⇒ SGST = SGST → IGST
Cross utilisation of SGST against CGST and vice versa is not allowed
Ο If cash payment for IGST, CGST, SGST made, than inter head of cash payment is not allowed, even intra head is also not allowed.
Ο If we wrongly made cash payment against IGST, instead of CGST,SGST, then we need to paid again against our liability and claim refund for wrong payment.
DUE DATES FOR FILING RETURNS
|Sr. No.||Forms||Description||Due date|
|1.||GSTR-1||Outward supplies of taxable Goods and Services||10th of Next Month|
|2.||GSTR-2||Inward supplies of taxable Goods and Services||15th of Next Month|
|3.||GSTR-3||Monthly Return||20th of Next Month|
|4.||GSTR-9||Annual Return||31st Dec of Next F.Y.|
|5.||GSTR- 3B||For July and Aug-2017||20th Aug, 20th Sep|
|6.||GSTR-1||For July and Aug-2017||6-10th Sep for July 21-25th Sep for Aug|
1) we need to file 37 return in a year, against 14 return in current tax regime.
2) No late fees and penalty would be levied for the interim period.
PROCEDURE FOR GST RETURNS
Ο We file our outward return GSTR- 1(i.e. line by line items of Invoices with HSN code)by 10th of next month
Ο Buyer will check our data in GSTR-2A
Ο Our buyer approves the sale and file GSTR-2
Ο If buyer mark any changes, we can see in GSTR- 1A
Ο We can accept or deny any changes made by buyer
Ο When buyer and seller approve, GSTR-3 will auto
Ο Generate with payment of taxes by 20th of next Month.
OUTCOME OF 17TH GST COUNCIL MEETING HELD ON DT. 18TH ,JUN-2017
Ο GST Council decided that for 1st two months of GST, tax would be payable on a simple
Ο Return will contains summary of outward, inward supplies which will be submitted before 20th of succeeding month.
Ο No late fees & penalties will be levied for interim period.
Ο GST network to take 4-5 months to prepare E-way Bill. Till then alternative or transient rule will prevail.
Simplified summary return (GSTR 3B) for the first 2 Months:
Ο For the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B containing summary of outward and inward supplies which will be submitted before 20thof the succeeding month. It means, all the supplies need to filed up anyway as expected, but the things are bit simpler. But don’t get relaxed, we need to record each & every transaction for future disclosure.
(Author Manoj Malu can be reached at +91-9967239349 or on firstname.lastname@example.org)
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018