Follow Us :

Manoj Malu

GOODS AND SERVICE TAX-GST

Under GST, There are 4 types of taxes

  • CGST- Central Goods and Service Tax
  • SGST- State Goods and Service Tax
  • IGST- Integrated Goods and Service Tax
  • UTGST-Union Territory Goods and Service Tax

How will above taxes Charged

  • CGST and SGST will charged when supply is made in intrastate
  • IGST will charges when supply is made in interstate
  • UTGST will charged by Union Territories like Andaman and

Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi (National Capital Territory of Delhi), Lakshadweep, Punducherry etc.

UNDER GST FOLLOWING TAX SUBSUMED

Taxes

DEFINATIONS:

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

Sr. No. Type Description
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%

Entries

Entries 2

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

5)

Entries 3Ο 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

Note:

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.

Download Above Article in PPT Format

(Author Manoj Malu can be reached at +91-9967239349 or on manojmalu7584@gmail.com)

Author Bio

My self Manoj Malu, View Full Profile

My Published Posts

Tax Planning For Financial Year 2020-21 Accounting Treatment of Reverse Charge Mechanism (RCM) under GST Guide on Filing of GSTR-9- Annual Return Manual Procedure for filing Refund Under GST Refund Under GST regime View More Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

2 Comments

  1. Amit Sharma says:

    First of all, UTGST is not applicable on Delhi & Pondicherry. The constitution (one hundred & first amendment) Act, 2016 has inserted a new clause, namely clause 26B on “State” in Article 366. As per the clause, “State” with reference to Article 246A, 268,269A and 279A, includes a Union Territory with legislature even “State” for the purposes of GST.
    The main agenda has been taken up by the GST Council for which the apex body has introduced the UTGST which will continue to provide benefits as same as SGST. Apart from that, New Delhi & Pondicherry will still enjoy the SGST Provisions as both state have their separate Legislatures and can operate freely on the terms of SGST and has also been considered as the state by the GST Council.
    Secondly the rate of GST is 0.25% on rough diamonds.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
March 2024
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031