Gst Momentous Ahead New Concepts New Areas New Procedures

GST Momentous ahead: New Concepts, New Areas & New Procedures

Cardinal Points

Supply without consideration is TaxableInterstate supply to own branches, Units would be taxableLevy of GST on Billed to Shipped to transactionsIntangible would be considered as Goods & Services (Revised)Concept of IGSTHead office to Branch or Vice-versa, within state and interstate – TaxabilityService oriented companies having provisions from different states then state wise separate Registrations, Returns & PaymentsGST credits – GSTN & E- Credit Ledger, Provisional CreditsTaxation for Job WorkersE-commerce taxation (TCS)No Revised ReturnsISD would distribute GST Credits, Separate Registrations for ISDSeparate Registrations for verticals of a Company in a state would be allowed. GST applicable on supplies between such Verticals.Digital Record Allowed.GST Council would be most powerful body under GST Regime as it would take most critical decisions.

Uniform Law & Design

NEW CONCEPT / DEFINITIONS Supply of goods and services:

In the course of business or furtherance of business

Goods Every kind of movable property,

Intangible Goods;Does not include; Immovable Property, Actionable Claims & Money

Services Anything other than goods

Works Contracts (Deemed Supply), Job Works etc.Does not include Actionable Claims

GST RATES, EXEMPTIONS, THRESHOLDS The GST Council has decided on Most of the Points:

GST Rates, Exemptions, thresholds Limits, dispute ResolutionModel GST Law

LEVY OF GST

Levy of GST on supply of goods and services, S-GST, C-GST & I-GSTI-GST would be handled by the Central Govt. which is applicable on imports, inter-state supplies and inter-state servicesProvision for GST Credits on inputs

GST COMPLIANCE

GST Registrations – Voluntary or threshold limit of Rs.20 lakhs, State wise Registrations .Vertical wise Separate Registrations in a State.Returns – State wise monthly, & Annual Returns. Quarterly Returns for Composite Tax Payers. No Revised Returns.GST Payments – Electronically through most of the Banks, State wise.GST Refunds – Online process to be followedGST Returns / Payments in the state of origin of goods or provision of services. IGST would be transferred to destination/consuming states by way of clearing house mechanism.

Composition Tax – Small Tax Payers

Rates – 2% for Manufacturers, 5% for hoteliers and 1% for others.For Annual turnover below Rs. 50 Lakhs. No GST credits available.

Specific areas of GST Taxation

Taxation on Job works, supplies without Consideration, TCS for e commerce operators, Works Contracts, Intangible Assets, Branch Transfers etc.

Not Taxable under GST

Tobacco & Tobacco Products – Subject to GST, Central Excise DutyAlcoholic liquor for human consumption – State Excise and VAT to continueElectricity Duty – States would continue to levyPetroleum Products – Petrol, Diesel & ATF (Excise + VAT to continue)

GST – Concept, Levy & Design (Summary)

GST is destination based Consumption Tax.I-GST – A Novel concept (Clearing House Mechanism).Seamless Flow of GST Credits. No Cost to Business.Returns – Output GST Payable (-) Input GST Credit = Net GST Payable or Refund (Single Return in each State).Payments – Through Electronic Mode only C-GST to C-GST to I-GST, S-GST to S-GST to I-GST. I-GST to I-GST to C-GST then to S-GST. No adjustment between C-GST & S-GST. GST would not be issue for Companies for deciding on sourcing & distribution routes.New Concepts – Taxable person, Supply of goods & services without Consideration etc.Service Companies – State wise Registrations for Service Companies