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Dear Readers,

This GST Compliance Handbook contains all basic information for the reader to get the ease of understanding of the relevant compliances under the GST Act and Rules as implemented from 1st July, 2017.

Various important provisions of the GST Act and the Rules have been set out in a crisp format in this handbook to give a bird’s eye view on the subject. This handbook focuses on the understanding of the concept of GST, rather than plain reading of the Law.

I sincerely believe that the readers would find the contents of this GST Compliance Handbook useful and I look forward to constructive views and suggestions for further improving the contents of this Handbook.

For ease of understanding, various technical terms of GST have been replaced in this handbook by a simpler and generic term, such as: � Seller is interchangeably used for Outward Supplier. � Buyer is interchangeably used for Inward Supplier. � Sale is interchangeably used for Supply / Outward Supply. � Purchase is interchangeably used for Inward Supply.

Disclaimer: The contents herein are specifically prepared for information & personal reference of intended recipients only. The information cited in this Handbook has been drawn from the GST Acts, Rules and Notifications issued till 1st July, 2017, prevailing at the time of preparation which may have undergone change from time-to-time. While every effort has been made to keep the information cited in this Handbook error free, I do not take the responsibility for any typographical or clerical error which may have crept while compiling this Handbook.

CA Gagan Kedia, Kolkata, 2017

PREFACE


SL NO.

PARTICULARS PAGE NO.

1. Flow Chart of Reading GST 3

2. Registrations under GST 4 – 6

3. Invoicing under GST 7 – 11

4. Accounting of GST 12 – 13

5. Payment of Taxes under GST 14 – 16

6. Decoding RCM - Reverse Charge Mechanism 17 – 20

7. All about Input Tax Credits (ITC) under GST 21 – 24

8. Returns under GST 25 - 27

9. Pure Agent 28

10. State Code list 29

11. About the Author 30

12. Important Links 31

INDEX


Any Transaction

Check for Charging Section / Levy

[Ref: Sec 9 of CGST Act (for local supply) /Sec 5 of IGST Act (for Interstate supply)

Is it a Supply[Ref: Sec 7 & 8, Sch1, 2 & 3 of CGST Act]

Yes

Is it supply of Goods or Services

[Ref : Sec 2(52) Goods & 2(102) Services]

CHARGEABLE TO GST

Check for EXEMPTIONS (if any)

[Ref: Sec 11 / 6 of CGST / IGST Act) TAXABLE under GST

Flow Chart of Reading GST

NO

NO

NO GST

Ref: Sec 15 of CGST Act & the Valuation Rules.

ON WHAT VALUE ?

Ref: Various Govt Notifications.

Note: INPUT TAX CREDITS available

u/s. 1621 of CGST

Act.

AT WHAT RATE ? / How Much Tax

?

Ref: Sec 12 & 13 of CGST Act &

govt notifications.

TIME OF PAYMET

Normally –

Supplier

Some Cases - under RCM

Ref : Sec9(3) & 9(4) of CGST Act.

WHO SHALL PAY TAX TO GOVT?

FIRST CHECK whether inter-

state supply or intra-state

supply.

[Ref: Sec 10,11 or 12,13 of

the IGST Act for Place of

Supply]

NOW


(A) WHEN TO TAKE REGISTRATION ?

� When aggregate turnover in a financial year exceeds INR 20 lakhs.

� Aggregate Turnover includes taxable supply + exempt supply + exports, of all units under same PAN number on all India basis.

� The limit is reduced to INR 10 lakhs in case of 11 special category states that is 7 north east states & 4 hill states (Sikkim, Uttarakhand, Himachal Pradesh & Jammu & Kashmir)

� Registration needs to be taken within 30 days of being liable to register.

2. REGISTRATIONS UNDER GST

When to Take Registration?

[Refer point A]

When Mandatory to take Registration?

[Refer point B]

When NOT to Take

Registration? [Refer point C]

In WHICH STATE should I take Registration? [Refer point D]

HOW to take Registration? / PROCEDURES. [Refer point E]


(B) WHEN MANDATORY TO TAKE REGISTRATION ?

Following persons need to take mandatory registrations & pay taxes accordingly. (That is even if their turnover or supply is less than 20L / 10L, registration is mandatory)

� If supplying inter-state. (Applicable even for Services)

� If liable to pay tax under Reverse Charge (RCM)

� Agents supplying goods/services on behalf of another (even if their agency commission is less than 20L / 10L)

� Persons supplying through e-commerce portal (like Amazon, Flipkart, Paytm, etc.) or an e-commerce operator itself.

� A casual taxable person or a non-resident person amongst others.

(C) WHEN NOT TO TAKE REGISTRATION ?

In the following cases, a person is not liable to take Registration under GST:

� If a person is engaged in exclusively supplying goods / services:

� Which is wholly exempt from GST (e.g.: any nil rated goods or any exempted services such as health care services, etc.)

� Tax on which is payable under RCM by the receiver. (e.g.: Services of an insurance agent providing agency services to Insurance Company is under RCM. Now if the agents’ entire services are falling under RCM, then the insurance agent is not liable to take registration, as the Insurance Company will be discharging the tax liability.)

� An agriculturist is not liable to take registration to the extent of supply of produce out of land cultivation.


(D) IN WHICH STATE SHOULD I TAKE REGISTRATION ?

� Registration is State Specific. (1 registration in 1 State)

� Registration is required in the State FROM WHERE taxable supplies are made (& not in any other state)

� Example 1 – A Ltd. has one factory in West Bengal and another in Orissa. Both the factories supply taxable goods. It also has a representative office in Delhi which is not supplying any taxable goods. So the Registrations are required in West Bengal & Orissa and NOT in Delhi. However, an ISD registration may be opted in Delhi if required.

� Example 2 – X Ltd. has a factory in Gujarat which sells major of its goods to a customer Maharashtra. In this case, registration is required only in Gujarat & not in Maharashtra.

(E) HOW TO TAKE REGISTRATION? / PROCEDURES

� Registration is PAN based. So having an Income-Tax PAN is must.

� Separate registration for separate business verticals in one state is optional to the assessee.

� Separate Registration is required for an ISD (to be able to distribute credit) or for cases where TDS/TCS is applicable.

� Application for registration is required to be made online on the common portal and requisite documents are to be submitted therein. Application needs to be electronically verified by DSC or Aadhar / EVC. DSC is mandatory for Companies & LLP.

� Registration will be deemed granted if no action taken or no clarifications sought within 3 working days of applying online.

� Registration Certificate in REG-06 shall be issued and should be displayed by the assessee at all its place of business.

*****


(A) WHEN TO ISSUE AN INVOICE?

SL NO. SUPPLIER TIME LIMIT 1. Supplier of Taxable

Goods On or before date of removal/ making goods available to buyer.

2. Supplier of Taxable Services

Within 30 days from the date of supply of Services

3. Insurer/ Banker/ FI/ NBFC

Within 45 days from the date of supply of Services

4. Insurer/ Banker/ FI/ NBFC/ Telecom Operator/ Distinct Persons notified u/s 25

Before or at the time supplier Records the same in his Books of A/c OR Before Expiry of the Quarter in which the supply is made

When to issue an Invoice?

[Refer point A]

What type of Invoice/

Document to be issued?

[Refer point B]

How many copies of Invoice

Required? [Refer point C]

3. INVOICING UNDER GST

Contents of a Tax Invoice

[Refer point D]

Transportation of goods without

issue of Invoice

[Refer point E]


(B) WHAT TYPE OF INVOICE / DOCUMENT TO BE ISSUED?

TRANSACTION DOCUMENT TYPE

Supplier of Goods / Services Tax Invoice

Transportation of Goods without issue of Invoice (refer point E below for more details)

Delivery Challan

Supplier of Exempted Goods / Services or Supplier Registered under Composition Scheme

Bill of Supply

On Receipt of Advance Payment for any supply of Goods/ Services

Receipt Voucher

Refund to be made where no supply has been made on Receiving Advance under Receipt Voucher

Refund Voucher

Registered Person liable to pay tax for Goods/ Services Received from Unregistered Person

Self-Invoice [Sec. 31(3)(f)]

Registered Person liable to pay tax under RCM [9(3) or 9(4)] at the time of Making Payment to the Supplier

Payment Voucher

Goods Transport Agency Tax Invoice/ Any other Document

Input Service Distributor ISD Tax Invoice/ ISD

Credit Note

Insurer/ Banker/ FI/ NBFC Tax Invoice/ Any other Document

Passenger Transport Service Tax Invoice/ Ticket

in Any Form


(C) HOW MANY COPIES OF INVOICE REQUIRED?

(D) CONTENTS OF A TAX INVOICE

a. Name, address and ;

b. a consecutive not exceeding 16 characters and unique for a financial year;

c. of its issue;

d. name, address and or Unique Identity Number , if registered;

e. name and address of the recipient and the address of delivery, along with the name of the State and its code, if such

and where the value of the taxable supply is ;

ISSUE TAX INVOICE

In Case of Supply of Goods

In Case of Supply of Services

Original

for

Recipient

Duplicate

for

Transporter

Triplicate

for

Supplier

Original

for

Recipient

Duplicate

for

Supplier


f. and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the of the taxable supply

rupees that such details be recorded in the tax invoice;

g. 0, 2 or 4 digits of for goods or services;

h. of goods or services;

i. in case of goods and unit or Unique Quantity Code thereof;

j. total value of supply of goods or services or both;

k. of the supply of goods or services or both taking into account discount or abatement, if any;

l. (central tax, State tax, integrated tax, Union territory tax or cess);

m. charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);

n. along with the name of the State, in the case of a supply in the course of inter-State trade or commerce;

o. if the same is different from the place of supply;

p. whether the tax is payable on basis; and

q. or digital signature of the supplier or his authorised representative..


(E) TRANSPORTATION OF GOODS WITHOUT ISSUE OF INVOICE

a) and of the delivery challan;

b) name, address and , if registered;

c) name, address and GSTIN or UIN of the consignee, if registered;

d) ;

e) quantity (provisional, where the exact quantity is not known);

f) taxable value;

g) tax rate and tax amount, where the transportation is for supply to the consignee;

h) place of supply, in case of inter-State movement; and

i) Signature.

*****

ISSUE OF DELIVERY CHALLAN

Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known

Goods transported for job work

Transportation of goods for reasons other than by way of supply.

(E.g. Branch transfer within same State b/w units having same GSTIN)

Such other supplies as may be notified by the Board


4. ACCOUNTING UNDER GST

Sample Journal Entries [Refer point A]

� To be maintained REGISTRATION NO. Wise.

� Should Match with ELECTRONIC CREDIT LEDGER as per portal.


� And RATE WISE for B2C transactions below 2.5L


� Should Match with ELECTRONIC LIABILITY REGISTER as per portal.

� RCM Liability to be always paid through cash ledger & not by utilising ITC.

� RCM liability u/s 9(3) – LIST or 9(4) – from unregistered person should be separately maintained.

Ledgers to be Maintained

Relating to INPUT TAX � Input CGST A/c. (Local sales) � ” SGST A/c. (Local sales) � ” IGST A/c. (Inter-State sales) � ” Cess A/c. (If applicable)

Relating to OUTPUT TAX � Output CGST A/c. (Local sales) � ” SGST A/c. (Local sales) � ” IGST A/c. (Inter-State sales) � ” Cess A/c. (If applicable)

Relating to TAX LIABILITY � CGST Liability A/c. � SGST Liability A/c. � IGST Liability A/c. � GST Cess Liability A/c.

Relating to REVERSE CHARGE � CGST Liability under RCM A/c. � SGST Liability under RCM A/c. � IGST Liability under RCM A/c.


(A) SAMPLE JOURNAL ENTRIES

REGULAR PURCHASE & SALE NatureofTransaction

JournalEntry Debit(Rs.)

Credit(Rs.)

GoodspurchasedfromadifferentState.

Purchase A/c Dr

Input IGST A/c Dr To Vendor / Cash / Bank A/c Cr

10,000

1,800

11,800

Afteradding50%margin,samegoodssoldlocally.

Debtors / Cash / Bank A/c. Dr

To Sales A/c. Cr

To Output CGST @ 9% Cr

To Output SGST @ 9% Cr

17,700

15,000

1,350

1,350

Atthemonthend,whenNETTAXLIABILITYisdetermined

Output CGST @ 9% Dr

Output SGST @ 9% Dr

To Input IGST Cr

To SGST Liability (Bal Fig) Cr

1,350

1,350

1,800

900

WhenNetTaxLiabilityispaidthroughCash

SGST Liability A/c. Dr

To BANK A/c. Cr

900

900

PURCHASES LIABLE FOR TAX UNDER RCM NatureofTransaction

JournalEntry Debit(Rs.)

Credit(Rs.)

Taxablegoods/servicespurchasedlocallyfromUnregisteredPerson

Purchase or Expense A/c Dr

Input CGST A/c. Dr

Input SGST A/c. Dr

To Vendor / Cash / Bank A/c Cr

To CGST Liability under RCM Cr

To SGST Liability under RCM Cr

10,000

900

900

10,000

900

900

NOTES: 1) Since the unregistered seller will not charge any GST,

hence the payment to the seller will be of basic value of

goods / services (i.e. Rs. 10,000)

2) The tax liability under RCM needs to be paid in cash and

is eligible as Input Tax Credit, Subject to section 16 & 17.

*****


(A) HOW FREQUENTLY TO PAY TAX?

PERSON TIME LIMIT

Every Registered Person Not later than the last date on which he is required to furnish Return i.e., within 20th of the Succeeding month

Composite Dealer Not later than the last date on which he is required to furnish Return i.e., within 18th of the month succeeding the quarter

How Often to Pay Tax? / Frequency of Paying

Tax [Refer point

A]

Who has to Pay Tax?

[Refer point B]

How to Pay Tax?

[Refer point C]

5. TAX PAYMENTS UNDER GST

How to Deposit Tax in

Challan? [Refer point

E]

Sequence of Paying

Tax

[Refer point D]


(B) WHO HAS TO PAY TAX?

(C) HOW TO PAY TAX?

� Either by Adjusting Available Input Tax Credit.

OR

� By Cash / Bank (i.e. through Challan)

(D) ORDER OF PAYING TAX

� FIRST, pay self-assessed tax and other dues for all the previous periods.

� THEN, pay self-assessed tax and other dues for the current period.

� THEREAFTER, any other amount payable under this Act or the rules made there under including the demand determined under section 73 or section 74.

LIABILITY TO PAY TAX

Supplier of Goods/ Services

Recipient of Goods/ Services

under RCM

Third Person (TDS Deductor/ TCS Collector)


(E) HOW TO DEPOSIT TAX THROUGH CHALLAN

NEFT/ RTGS

Debit/ Credit Card

Internet Banking

PROCESS OF PAYMENT:

1. Generate Challan in GST PMT-06 – Valid for 15 days 2. Make Payment by any of the above modes.

(F) FAQs

Q1. What if I don’t pay tax in time?

� Return will be invalid � Interest liability @ 18% p.a.

*****

MODES OF PAYMENT

Cash/ Cheque/ Demand Draft

Online Methods

Maximum amount = Rs. 10,000 per challan per tax period


RCM – I Section 9(3)

� A LIST of Goods/ Services has been notified by the Government.

� If the transaction falls in this list, applicability of RCM arises (no matter the services are received from a registered or unregistered person)

6. RCM or REVERSE CHARGE MECHANISM Cases where liability to pay tax to the government is on

Supply Receiver and not Supplier.

RCM – II Section 9(4)

� Where the purchases

of goods/ services are made by a registered person from an unregistered person, the applicability of RCM u/s 9(4) arises.

Where Aggregate Value of Supplies in a day is less than Rs.5000/- then GST on such supply will not be required to be paid under RCM.

RCM u/s 9(4) where goods are purchased from Composite Dealer as he is a Registered person under GST.

Refer Table A & B below for the RCM List.


(A) NOTIFIED SUPPLIES OF GOODS UNDER RCM

SL No.

Description of supply of Goods

Supplier of goods Recipient of supply

1. Cashew nuts, not shelled or peeled

Agriculturist Any registered person

2. Bidi wrapper leaves (tendu)

Agriculturist Any registered person

3. Tobacco leaves Agriculturist Any registered person

4. Silk yarn Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn

Any registered person

5. Supply of lottery. State Government, Union Territory or any local authority

Lottery distributor or selling agent.

(B) NOTIFIED SUPPLIES OF SERVICES UNDER RCM

SL No.

Description of supply of Service

Supplier of Service

Recipient of Service

1. Transport of Goods by

Road services.

GTA Person Registered under GST, a body corporate or a Partnership Firm (amongst others)

2. Legal Services by Advocate

An advocate or firm of advocates.

Any business entity located in the taxable territory.

3. Services supplied by an arbitral tribunal.

An arbitral tribunal.



SL No.

Description of supply of Service

Supplier of Service

Recipient of Service

4. Sponsorship Services Any person A body-corporate or a partnership firm located in the taxable territory.

5. Services BY Government (Central, State, UT, Local Authority) Except following:

a. Renting of immovable

property

b. Transport of goods or passenger.

c. Certain Services by dept. of post.

d. Services in relation to an aircraft or vessel......

Central Government, State Government, Union Territory Or Local authority


6. Services by Director A director of a company or a body corporate

The company or a body corporate located in the taxable territory.

7. Insurance Services An insurance agent

Any person carrying on insurance business, located in the taxable territory.

8. Recovery Agent Services A recovery agent

Banking Company or a Financial Institution or a NBFC located in taxable territory.

9. Services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use of a copyright relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like.

An Author or a music composer, or a photographer, or an artist, or the like.

Publisher, music company, producer or the like, located in the taxable territory.


(C) FAQs

1. Is Registration mandatory in case tax is required to be paid under RCM?

� Yes, for example, even when supplying exempted goods / services, registration is required in case RCM u/s. 9(3) is applicable .

2. Whether a Composite dealer also needs to pay tax under RCM?

� Yes, under both the sections of RCM, the Composite Dealer is liable to pay tax at the regular rate of goods/ services received.

3. Whether the liability under RCM can be paid through ITC?

� No, ITC cannot be used to pay tax liability under RCM. Which means that the liability of tax under RCM can only be paid through Cash/Chq/Bank.

4. When does the liability to pay tax arise?

� For Goods : Earlier of (a) receipt of goods, (b) payment made to vendor or (c) 31st day from purchase bill date.

For Services : Earlier of (a) payment made to vendor or (b) 61st day from purchase bill date.

5. Whether ITC is available under RCM?

� The service recipient can avail Input Tax credit on the Tax amount that is paid under reverse charge on goods and services, the only condition is that the goods and services are used or will be used for business or furtherance of business.

*****


Fulfilled

N

O

W

Input Tax Credit (ITC) means credit of tax already paid on purchases that can be adjusted

against tax collected on sales. The balance (if any) is required to be paid to government.

ELIGIBLE CREDIT

u/s 16 (1) of CGST Act

ITC is eligible if goods /

services are used or

intended to be used in the

course or furtherance of

business.

BLOCKED CREDIT

u/s 17 (5) of CGST Act

Certain goods / services

are specially listed,

wherein ITC on purchase

of such goods / services

are not available (except few cases)

[Refer Point A]

First Check whether

the credit falls under

Eligible credit or

Blocked credits.

Then check the

conditions to be

fulfilled to claim the

credit & time available

to avail the credit

Check for Conditions to be

fulfilled for availing credit u/s

16(2) of CGST Act (4 conditions)

[Refer Point B]

Check for Time period

to claim / avail the ITC

u/s 16(4) of CGST Act

[Refer Point C]

7. INPUT TAX CREDIT


A. BLOCKED CREDITS

Sl.No.

DescriptionofBlockedGoods/Service

Conditionsforclaimingsuchcredit

1. Motor Vehicle & Other

Conveyance

Further taxable supply of:

a) Such vehicle & conveyance

b) Transportation of passenger

c) Imparting training (for flying, driving,

navigation etc.)

Or for Transportation of Goods

2. Food & Beverages, Outdoor

Catering When inward supply is used for making

outward supply of same category of

goods/services.

3. Beauty Treatment, Cosmetic

& Plastic surgeries

4. Healthcare Services

5. Membership of a club, health

and fitness centre

6. Rent acab service a) When Obligatory for an employer to

provide such service to its employees

under Govt. notification

b) When inward supply is used for making

outward supply of same category of

goods/services.

7. Life insurance, Health

insurance

8. Travel Benefits to Employees

on vacation

9. Works Contract Service (in relation to immovable property)

When input service is used for making

outward supply of works contract service.

10. Purchase of Goods or Services for

Construction of Immovable

Property (on own account)

11. Local purchases by a Non

resident taxable person

12. Goods/services used for personal

consumption

13. Goods Lost/ Stolen/ Destroyed/

Written off/

14. Goods Disposed of by way of gift

or free samples

15. Tax paid under

Demand/Seizure/confiscation


B. CONDITIONS FOR TAKING ITC BY A REGISTERED PERSON

These 4 conditions are very important because, in case even if one

condition is not fulfilled, Credit cannot be claimed, even though it is an

eligible Credit.

� He is in possession of Invoice/Debit note/Other taxpaying

document

� He has received the goods or services or both

� The Seller, (who has collected the tax from buyer) must

have paid the taxes to the government.

� Both supplier and receiver have furnished GST returns.

C. TIME PERIOD AVAILABLE FOR AVAILING / CLAIMING OF CREDITS

Earlier of:

� 1 year from the invoice date.

� The due date of furnishing of return for the month of September

following the FY to which the invoice pertains (i.e. for FY 201718, due date

shall be 20th October, 2018)

� Furnishing of relevant annual return (i.e. for FY 201718, due date for

Annual Return is 31st December, 2018.)

D. FREQUENTLY ASKED QUESTIONS

1. How to claim ITC on Capital Goods?

� 100% in the year of purchase

� ITC shall not be available if the tax portion paid on capital goods is

capitalised in books of Accounts and depreciation has been claimed.


2. Can full ITC be claimed when Inputs are used partly for taxable and

partly for exempt supplies

No.

� Amount of credit available shall be restricted to input tax

attributable to be used for taxable supplies.

� ITC can only be claimed in respect of goods exclusively used for

providing taxable supplies.

3. How to take ITC on goods sent to Job worker?

� For goods directly sent to job worker – the goods are deemed to

be received by the principal and shall be entitled to take credit.

� For input not received back by the principal within 1 year of being

sent to job worker, treated as ‘Deemed Supply’.

� For capital goods not received back by the principal within 3 year

of being sent to job worker, treated as ‘Deemed Supply’.

4. Whether ITC is available on purchase of a goods delivery vehicle

by a person for transportation of his own Goods from one place

to another?

Yes

� Credit shall be eligible to a manufacturer/trader but not a Goods

Transport Agency (as has been specifically restricted by the tax

rate schedule)

*****


Types of Returns Credit Matching

System Data Relevant for Return

(Refer Point A)

Provisional Credit

At first, every person is

entitled to input tax credit

on self assessment basis.

(Refer Point B)

Matching

Then, each credit is matched

with corresponding detail of

outward supply filed by all the

sellers.

(Refer Point C)

Final Credit

Finally, claim of ITC is either

accepted or a report of

mismatch is communicated

to both the parties.

(Refer Point C)

A Regular person needs to file 3

returns /statements in a month

(GSTR-1 for sales, GSTR-2 for

purchases, & GSTR-3 for calculation

of output tax and payment)

An Input Service Distributor to file

monthly details of credit distributed

in GSTR6 by 13th

of next month.

A composition dealer needs to file

quarterly return in GSTR4, by 18th

of following month.

Person required to deduct TDS has

to furnish monthly details in GSTR7

by 10th

of next month.

Ecommerce operator is required to

collect TCS and file monthly details in

GSTR8 by 10th

of next month.

8. RETURNS UNDER GST


A. DATA RELEVANT FOR RETURN

1. For Sale to Registered Person

� Invoice level details to be furnished for all sales (i.e. interstate /

Intrastate)

2. For Sale to UnRegistered Person

i. Interstate sales (i.e. outside state) –

� Invoice level details for Invoice value > Rs. 2.5 Lakhs

� State wise Consolidated total sales for each rate of tax for Invoice

value < Rs. 2.5 Lakhs

ii. Intrastate Sales (i.e. within state) – Consolidated total sales for each

rate of tax

B. PROCESS OF TAKING PROVISIONAL CREDIT

Date FormofReturn

Personto

Attend

Details/Actionrequired

Before 10thof themonth

GSTR1 Seller Furnish Details of all the Sales

10th–13th GSTR2A Buyer Verify/Modify the purchases i.e.

auto populated according to details

furnished by various sellers.


GSTR2 Buyer Furnish Details of Sales + Tax payable

under RCM + Dr/Cr. notes

15th–17th GSTR1A Seller Accept/Reject the changes made by

buyer in his return (GSTR2) if any.


GSTR3 Seller +

Buyer

Furnishing of Final Return

� Most of the data will be auto

populated

� Furnish details of output tax paid

and self assessed ITC utilised for

payment of output tax.


C. MATCHING OF INPUT TAX CREDIT (ITC)

After filing of GSTR3, the details of ITC claimed by the buyer would be matched by

GST Common portal.

OUTCOME OF MATCHING

MATCHED

ITC is treated as matched when:

� When ITC claimed by the

buyer is equal to or less than

the output tax paid by the

seller

DISCREPANCY IN CLAIM

Reasons for Discrepancies can be:

� ITC claimed by the buyer is more

than that declared by seller

� Corresponding sale is not

declared by the seller

� Duplication of ITC claim by buyer

Final acceptance of ITC will

reflect in GST MIS01 Communication of

discrepancy (Say in Month 1): � GST MIS1 to Purchaser

� GST MIS2 to Seller

RECTIFIED

(By 20th of Month 2)

NOT RECTIFIED

(By 20th of Month 2)

Either Seller rectifies his sales OR

Purchaser reduces his purchase.

Report of final matching will

reflect in GST MIS01.

Amount of mismatched

credit is added to Output Tax

Liability of purchaser in

GSTR3 of Month 3.


The expenditure or costs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely,

i. the supplier acts as a pure agent of the recipient of the supply, when he

makes the payment to the third party on authorisation by such recipient;

ii. the payment made by the pure agent on behalf of the recipient of supply

has been separately indicated in the invoice issued by the pure agent to

the recipient of service; and

iii. the supplies procured by the pure agent from the third party as a pure

agent of the recipient of supply are in addition to the services he supplies

on his own account.

Explanation. For the purposes of this rule, the expression “pure agent” means a

person who

a) enters into a contractual agreement with the recipient of supply to act as

his pure agent to incur expenditure or costs in the course of supply of

goods or services or both;

b) neither intends to hold nor holds any title to the goods or services or

both so procured or supplied as pure agent of the recipient of supply;

c) does not use for his own interest such goods or services so procured;

and

d) receives only the actual amount incurred to procure such goods or

services in addition to the amount received for supply he provides on his

own account.

Conditions for Pure Agent


ALPHABET WISE State Name Code

SERIAL NO WISE State Name Code

Andaman & Nicobar (U/T) 35 Jammu & Kashmir 01

Andhra Pradesh 28 Himachal Pradesh 02

Arunachal Pradesh 12 Punjab 03

Assam 18 Chandigarh (U/T) 04

Bihar 10 Uttarakhand 05

Chandigarh (U/T) 04 Haryana 06

Chhattisgarh 22 Delhi 07

Dadra & Nagar Haveli (U/T) 26 Rajasthan 08

Daman & Diu (U/T) 25 Uttar Pradesh 09

Delhi 07 Bihar 10

Goa 30 Sikkim 11

Gujarat 24 Arunachal Pradesh 12

Haryana 06 Nagaland 13

Himachal Pradesh 02 Manipur 14

Jammu & Kashmir 01 Mizoram 15

Jharkhand 20 Tripura 16

Karnataka 29 Meghalaya 17

Kerala 32 Assam 18

Lakshadweep Islands (U/T) 31 West Bengal 19

Madhya Pradesh 23 Jharkhand 20

Maharashtra 27 Odisha 21

Manipur 14 Chhattisgarh 22

Meghalaya 17 Madhya Pradesh 23

Mizoram 15 Gujarat 24

Nagaland 13 Daman & Diu (U/T) 25

Odisha 21 Dadra & Nagar Haveli (U/T) 26

Pondicherry 34 Maharashtra 27

Punjab 03 Andhra Pradesh 28

Rajasthan 08 Karnataka 29

Sikkim 11 Goa 30

Tamil Nadu 33 Lakshadweep Islands (U/T) 31

Telangana 36 Kerala 32

Tripura 16 Tamil Nadu 33

Uttar Pradesh 09 Pondicherry 34

Uttarakhand 05 Andaman & Nicobar (U/T) 35

West Bengal 19 Telangana 36

STATE CODES


Gagan Kedia is a commerce graduate, a Chartered Accountant and a Company Secretary by qualification who has dedicated over past 1 year of his life in GST research, working closely with various authorities. He has over 7 years of experience in the field of Service Tax and International Taxation. He has worked with Deloitte Haskins & Sells catering to Tax Advisory & Litigation needs of Global Retail Conglomerates and IT giants. Passionate about his profession, Gagan has keen interest in training and has also conducted various training workshops with big corporate houses in the area of Taxation & Accounting. He is a Kolkata native but has travelled extensively for various roles in his career. He is also a selected faculty member of the Indirect Tax Committee of ICAI for GST Trainings and an active member of the privileged Kolkata Study Group of Indirect Tax Committee of ICAI, dealing in – GST Research, Representations to Governments, Publication of Books, etc. He is the Managing Partner of the Firm M/s. MRG KEDIA & Co., looking after Transaction Advisory & Litigations in the field of Service Tax & GST for various clients. Gagan can be reached at [email protected] | + 98306 82188

C/o. MRG KEDIA & Co. Unit # 408, 4th Floor, Kamalalaya Centre, 156A, Lenin Sarani, Dharamtolla, Kolkata – 700013, West Bengal, India.

About the Author


SLNo

Particulars Link

1 GST Common Portal https://www.gst.gov.in/

2 CBEC Home Page http://www.cbec.gov.in/

3 Acts, Rules, GST Rates,

Notifications, Circulars of CGST, IGST, UTGST & Cess

http://www.cbec.gov.in/htdocs

cbec/gst/index

4 List of Services which are Exempt from GST


cbec/gst/Notification9IGST.pdf

5 List of Services where RCM

Applicable.


cbec/gst/Notification10IGST.pdf

6 IGST Exemption to SEZs on

import of goods & services by a

unit / developer in SEZ


cbec/gst/notification18igstrate.pdf

7 CGST Rules, as amended upto

01.07.2017


cbec/gst/cgstrules

01july2017%20.pdf

8 West Bengal State GST (Acts, Rules, Notifications)

http://wbcomtax.nic.in/GST/gst.html

Important Links

CA Gagan Kedia | [email protected] Page 0mrgkedia.com/Image/GST Compliance Handbook - BY CA Gagan...

Documents

Transcript of CA Gagan Kedia | [email protected] Page 0mrgkedia.com/Image/GST Compliance Handbook - BY CA Gagan...