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It is designed to collect tax on the value-added at each stage of the production and supply of goods and service with the ITC .

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GST Dual (subsume the taxes)

CGSTSGSTM D GARG & Company20/08/20163

An ultimate unified destination based dual Tax reform in India M D GARG & Company, Indore 20/08/20164

StructureThe GST comprises 27 (25)chapters 178(162) clauses 4 schedules

Schedule Subject

Schedule-I Matters related to supply without consideration

Schedule-II Matters related to supply of goods or services

Schedule-III Liability to be registered

Schedule-IV Government body shall not be treated as a taxableperson [indicative list of activities or transaction].M D GARG & Company, Indore 20/08/20165

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Supply has wider meaning then word supply has in dictionerySupply includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration.

It also includes importation of service, whether or not for a consideration.M D GARG & Company, Indore 20/08/20166

Registration(Liability to tax will arise if the turnover exceeds Rs. 10.0 Lakh (5.00Lakh)Compulsory (Registerable in terms of Shedule III)Voluntarily

Aggregate turnover in a F Y exceeds Rs. 9.00 Lakh (4.00 Lakh in case North Eastern State including Sikkim) of a dealer has to registered himself by completing KYC norms, in the state from where taxable goods and services are supplied,

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State codePANBlank for future Check

The way by which registration no. granted to dealerBusiness identification no i.e. BINM D GARG & Company, Indore 20/08/20168

Point of Taxation Where the goods are movable, the date on which the goods are removed for supply to the recipient In the case of immovable properties, it will be the date on which the goods are made available to the concerned personDate of issue of invoice by the supplierWhen payment is given to the supplier Date when the receipt of goods is acknowledged by book entries by the recipient. (Which ever is earlier)*** Depend upon the T& C between two partiesM D GARG & Company, Indore 20/08/20169

Tax Rates

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Illustration (Same State)

A Wholesale dealer in Madhya Pradesh, supply goods /services covered under taxable category,

NO cross Utilization of credit would be permitted Bill NO 1 From A to BB to C (10 % Pr)B has to deposit taxGoods value200/-220/-CGST 10%20/-22/-2/-SGST 10%20/-22/-2/-240/-262/-236.00

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Illustration (Other State)

A Wholesale dealer in Madhya Pradesh, supply goods /services covered under taxable category,

Balance ITC can be adjust with liability of IGST. Bill NO 1 Bal Input Credit of BB to C (10 % Pr)B has to deposit taxInterstate transaction,(Article 269A(1) central will collect the integrated goods & service tax ,(CGST+SGST)Goods value220.00IGST 20%40.0044.004.00Additional Tax 1%2.202.20266.206.20

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Setoff of ITC

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Inspection(survey )(NO restriction in regard to time of inspection)Authorized person not below the rank of Joint Commissioner ,where there is reason to believe that the someone has EVADE THE TAX through > Suppressed any transaction or >> claimed excess input tax credit or >>> indulged in contravention of provisions of the Act and its rules, can inspect goods in transit (clause 60 a&b and 61)/access to business premises (Clause 64).M D GARG & Company, Indore 20/08/201616

Search During the inspection or otherwise , Assessing officer not below the rank of Joint Commissioner has reason to believe that any goods /any documents/books/things liable to confiscation with the explanation the above are useful for or relevant to any proceedings under the Act are secreted in any place with the retained condition for so long as may be necessary.The Provision relating to seizure are not properly explained Power to arrest gives to commissioner , to be carried out by them through his authorized officer is harsh and apparently unfair Clause 73 (1) (i) (ii) and 73(2)M D GARG & Company, Indore 20/08/201617

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20/08/2016M D GARG & Company, Indore 18BIG DIFFERENCE

Patent , Trademark, Software, and copyrights etc. now will be treated as SERVICES

GDP will be increased by 1 %to 2%

Thanks

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