Vendors GST Handbook

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Basics of GST

GST is a comprehensive value added tax on SUPPLY of goods and services

On SUPPLY of goods or services (as against manufacture, sale or provision of service) made for a consideration

• Central GST levied and collected by the Centre

• State GST levied and collected by the States

• Levied where goods and services are consumed

• Exports are nil rated

• Imports are taxed.

• Alcohol for human consumption

• Electricity• Real Estate

Diesel, Petrol, Crude Oil, Natural Gas, Aviation Turbine Fuel

May be brought to GST by notification

WHAT IS GST ? DUAL GSTAPPLICABLILITY

DESTINATION BASED TAX OUT OF GST PETROLEUM

PRODUCTS

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Taxes under GST

Within the same State

For Outside State Supplies

ExportImport

CGST + SGST IGST BCD + IGST

Nil Rated ~ No GST

• VAT• Purchase Tax• Surcharge/Cess• Entry Tax &

Octroi• Luxury Tax

CST • BCD• CVD• SAD• Additional

Duty

Nil RatedPresent Tax

Regime

* Excise Duty and Service Tax subsumed under CGST3

What has changed ?Points of Differences

Present Tax (VAT) GST

Applicability On sale of goods On Supply – Sale, Exchange, Transfer, Rental etc.

Invoice Matching

Not monitored extensively Invoices of supplier and recipient NEED TO MATCH

Input Tax Credit

Available based on returns Can be availed ONLY WHEN INVOICES ARE MATCHED and SELLER PAYS TAX LIABILITY

Input Tax Not able to claim on all business expenses

Available for ALL INWARD suppliesused for furtherance of business

Inter State Transactions

CST imposed which Central Govt collects and gives to supplying state

IGST to apply which goes to the destination State

Stock Transfer No tax if declaration in Form F filed

IGST payable on inter state Stock Transfer

Interaction with Government

Once a quarter or month Minimum of 3 times EVERY MONTH (for regular dealers)

Return Revision Allowed currently No scope of revising return 4

Does GST apply to Me?

Turnover > 20L / 10L(Special States*)

Inter State Supplier

Agents/Person acting on behalf

of supplier

Casual Taxable Person

Non Resident Taxable Person

Paying tax on Reverse Charge

* Special States: Arunachal Pradesh, Assam, J&K, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand

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Know your GSTIN

22 AAAAA0000A 1 Z 5

State Code Permanent Account Number (PAN) Entity No of the same PAN holder in a state

Alphabet ‘Z’ by

default

Check sum digit

15 digit alpha- numeric registration no

• Valid PAN holders will get Provisional IDs• One Provisional ID per State• Multiple locations in 1 State to be registered as

Additional Places

Existing Excise/ ST Assessees

New Registrations

• Filling PAN and Contact details for OTP verification• Uploading documents• Verification by officer within 3 working days• Certificate of Registration

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Marico GSTINs SrNo State GSTN Registration no.

1 Maharashtra 27AAACM7493G1Z72 Gujarat 24AAACM7493G1ZD

3 Madhya Pradesh 23AAACM7493G1ZF

4 Bihar 10AAACM7493G1ZM5 Jharkhand 20AAACM7493G1ZL6 Tripura 16AAACM7493G1ZA7 Assam Depot 18AAACM7493G1Z68 Assam - Unit I 18AAACM7493G3Z4

9 Assam - Unit II 18AAACM7493G5Z2

10 West Bengal 19AAACM7493G1Z411 Orissa 21AAACM7493G1ZJ12 Chattisgarh 22AAACM7493G1ZH13 Telangana 36AAACM7493G1Z8

SrNo State GSTN Registration

no.

14 Andhra Pradesh 37AAACM7493G1Z615 Karnataka 29AAACM7493G1Z316 Kerala 32AAACM7493G1ZG17 Pondicherry 34AAACM7493G1ZC18 Tamilnadu 33AAACM7493G1ZE19 Delhi 07AAACM7493G1Z920 Haryana 06AAACM7493G1ZB21 U P 09AAACM7493G1Z522 Punjab 03AAACM7493G1ZH23 Chandigrah 04AAACM7493G1ZF24 Rajasthan 08AAACM7493G1Z725 J & K 01AAACM7493G1ZL26 H P 02AAACM7493G2ZI27 Uttarakhand 05AAACM7493G1ZD7

Composition Scheme

>20 Lacs

<75 Lacs

Aggregate Turnover

• Lower Tax Rates• No need to issue Tax

Invoice• Lesser Compliance – 4

Quarterly and 1 Annual Return

• No detailed records

• Can NOT avail Input Tax Credit

• Cannot charge tax on invoice

• Penalty for wrongly opting Composition Scheme

If aggregate turnover is more than 20 Lacs but less than 75 Lacs (50L for North Eastern States), the vendor has an option to go into Composition Scheme.

Ineligible for Composition Scheme

Service ProviderInter State SupplierImporter/ ExporterSupplies Goods out of GST

Rates of Tax on Turnover

Manufacturer – 2%Other Supplier – 1%

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Input Tax Credit(ITC)Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs.

Used for furtherance of businessMust have a tax invoice of purchasesShould have received the goods/servicesTax charged has been paid to the governmentSupplier has filed GST returnPayment to vendor within 180 days

Tax to be Paid = Output Tax – Input Tax Credit

Criteria for

availingITC

What is

ITC?

CGST SGST IGST

1

2

3

CGSTIGST

SGSTIGST

IGSTCGSTSGST

Priority Order of Utilization of ITC

No Input Credit on• Staff Welfare• Works Contract on

immovable Property

• Purchase from composition dealer9

Credit of Inventory on 30th June

Criteria

Currently registered under Excise & VAT

Carry forward tax as per last return

Excise/Service Tax – CGSTVAT - SGST

Currently registered under VAT only

Carry forward VAT credit as per last return as SGST

Purchase from registered excise dealer – claim

CGST credit on excise paid on purchases

Currently unregistered

Purchase from registered VAT dealer – claim SGST on VAT paid on purchases

Purchase from registered excise dealer – claim CGST

on excise paid on purchases

• Invoice issued in past 12 months• Regular registered dealer under GST• Goods intended to be used in taxable supply• Goods are presently not exempt from excise/VAT• Supplies should be eligible for credit under GST• Goods to be sold within 6 months from GST Go Live

* In case invoice contains tax details – credit to be claimed basis actual taxes* In case invoice contains tax details – credit to be claimed basis actual taxes* In case invoice doesn’t contain tax details – credit = 60% (if CGST Rate >=18%) or40% (if CGST Rate <18%) of output CGST 10

Formats of InvoicesTax Invoice

Supplier GST no.Recipient GST no.HSN Code

Revised Invoice/ Debit or Credit Note

Bill of Supply

Payment Voucher

Receipt Voucher

Unique Invoice No (Consecutive)

Taxable ValueGST RateGST Amount

Supplier GST no.Recipient GST no.Sl No and Date of Original Invoice

Unique Dr/Cr Note No (Consecutive)

Taxable ValueGST RateGST Amount

v

Supply of exempted goodsSupplier paying tax under Composition SchemeNo tax amount

For receipt of advance from the customer GST applicable on advance on the date of its receipt

For purchase from unregistered dealersFor Reverse Charge supplies

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GST Compliance

Monthly Quarterly Miscellaneous

GSTR 6 Return for Input Service Distributor

Return for Composition Dealers

By 18th of succeeding quarter

Annual Return

By 31st December of next FY

Final Return

Within 3 months of cancellation of RC

GSTR 4 GSTR 9

GSTR 10

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Consequences of Non Compliance

Penalty : Rs 10,000/- or 100% of Amount of Tax evaded

Imprisonment of term ranging from 1 year to 5 years depending on tax evaded with slab ranging from 50 Lakhs to 250 Lakhs

Regular Dealer : Returns not furnished for 6 consecutive monthsComposition Dealer : Returns not furnished for 3 consecutive quarters

Cancellation of Registration

Monthly/ Quarterly Returns: Rs 100/ per day for every day subject to a maximum of Rs 5000/-Annual Return : Rs 100/ per day for every day subject to a maximum of 0.25% of aggregate turnover* Interest on total tax due – Rate to be notified

Late Fees and Interest

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Become GST Ready !

We are here to help you !

Vendor.gst@marico.com

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