Definition of GST

• Article 366(12A)
• “Goods and services tax” means any tax on supply of goods, or services or
both except taxes on the supply of the alcoholic liquor for human
consumption
•
 Needs of GST
• GST is to get rid of the problem of indirect
taxes
• Interstate movement of goods
• Uniform tax laws
• Cascading effect of taxes
COMPONENTS OF GST IN INDIA
SLAB RATES OF GST
 SUPPLY UNDER GST
1. Time of Supply
• Time of supply means the point in time when goods/services are considered supplied’. When the
seller knows the ‘time’, it helps him identify due date for payment of taxes.
A. Time of Supply of Goods
B. Time of Supply for Services
C. Time of Supply under Reverse Charge
2. Place of supply

Location of Service Place of supply Nature of Supply GST Applicable

Receiver
Maharashtra Maharashtra Intra-state CGST + SGST
Maharashtra Kerala Inter-state IGST
A. Place of Supply of Goods
B. Place of Supply for Services

3. Value of Supply of Goods or Services

• Value of supply means the money that a seller would want to collect the
goods and services supplied.
• The amount collected by the seller from the buyer is the value of supply.
• But where parties are related and a reasonable value may not be charged, or
transaction may take place as a barter or exchange; the GST law prescribes
that the value on which GST is charged must be its ‘transactional value’.
 CHARGE OF GST
1. What is Reverse Charge?
• Normally, the supplier of goods or services pays the tax on
supply. In the case of Reverse Charge, the receiver becomes
liable to pay the tax, i.e., the chargeability gets reversed.
2. What is Forward charge?
• Forward charge or direct charge is the mechanism where
the supplier of goods/services is liable to pay tax.
• For instance, if a chartered accountant provided a service
to his client, the service tax will be payable by the
chartered accountant.
• Or for instance, if a car manufacturing company sold some
auto parts to a trader and collected tax from the trader,
the manufacturing company remits the tax.
• Under the current tax system, most transactions are
covered under the forward charge mechanism.
 REGISTRATION
What is GST Registration?
• In the GST Regime, businesses whose turnover exceeds Rs. 20 lakhs (Rs 10
lakhs for NE and hill states) is required to register as a normal taxable
person. This process of registration is called GST registration.
• For certain businesses, registration under GST is mandatory. If the
organization carries on business without registering under GST, it will be
an offence under GST and heavy penalties will apply
 Who Should Register for GST?
• Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax
etc.)
• Businesses with turnover above the threshold limit of Rs. 20 Lakhs (Rs. 10
Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
• Casual taxable person / Non-Resident taxable person
• Agents of a supplier & Input service distributor
• Those paying tax under the reverse charge mechanism
• Person who supplies via e-commerce aggregator
• Every e-commerce aggregator
• Person supplying online information and database access or retrieval
services from a place outside India to a person in India, other than a
registered taxable person
 PROCESS OF REGISTRATION
Documents Required for GST
Registration

1. PAN of the Applicant

2. Aadhaar card
3. Proof of business registration or
Incorporation certificate
4. Identity and Address proof of
Promoters/Director with
Photographs
5. Address proof of the place of
business
6. Bank Account statement/Cancelled
cheque
7. Digital Signature
8. Letter of Authorization/Board
Resolution for Authorized Signatory
 E WAY BILL
1. What is an eWay Bill?
• Way Bill is an Electronic Way bill for movement of goods to be
generated on the eWay Bill Portal. A GST registered person
cannot transport goods in a vehicle whose value exceeds Rs.
50,000 (Single Invoice/bill/delivery challan) without an e-way bill
that is generated on ewaybillgst.gov.in Alternatively, Eway bill
can also be generated or cancelled through SMS, Android App
and by site-to-site integration through API. When an eway bill is
generated, a unique Eway Bill Number (EBN) is allocated and is
available to the supplier, recipient, and the transporter.
2.When Should eWay Bill be issued?
eWay bill will be generated when there is a movement of goods
in a vehicle/ conveyance of value more than Rs. 50,000( either each
Invoice or in (aggregate of all Invoices in a vehicle/ Conveyance)# )
• In relation to a ‘supply’
• For reasons other than a ‘supply’ ( say a return)
• Due to inward ‘supply’ from an unregistered person
For this purpose, a supply may be either of the following:
• A supply made for a consideration (payment) in the course of
business
• A supply made for a consideration (payment) which may not be in
the course of business
• A supply without consideration (without payment)In simpler
terms.
3. Who should Generate an eWay Bill?
• Registered Person – Eway bill must be generated when there
is a movement of goods of more than Rs 50,000 in value to
or from a Registered Person. A Registered person or the
transporter may choose to generate and carry eway bill even
if the value of goods is less than Rs 50,000.
• Unregistered Persons – Unregistered persons are also
required to generate e-Way Bill. However, where a supply is
made by an unregistered person to a registered person, the
receiver will have to ensure all the compliances are met as if
they were the supplier.
• Transporter – Transporters carrying goods by road, air, rail,
etc. also need to generate e-Way Bill if the supplier has not
generated an e-Way Bill.
 CONCLUSION
• Implementation of GST is one of the best decision taken by the Indian
government. For the same reason, July 1 was celebrated as Financial
Independence day in India when all the Members of Parliament
attended the function in Parliament House. The transition to the GST
regime which is accepted by 159 countries would not be easy.
Confusions and complexities were expected and will happen. India, at
some point, had to comply with such regime. Though the structure
might not be a perfect one but once in place, such a tax structure will
make India a better economy favorable for foreign investments. Until
now India was a union of 29 small tax economies and 7 union territories
with different levies unique to each state. It is a much accepted and
appreciated regime because it does away with multiple tax rates by
Centre and States. And if you are doing any kind of business then you
should register for GST as it is not only going to help Indian government
but will help you also to track your business weekly as in GST you have
to make your business activity statement each week.
ANY QUERIES?
THANK YOU!!