Gold, Gold Jewels and Precious Stones rate of Tax in GST Regime and rate of tax for Rough Diamond

GOLD, GOLD ORNAMENTS AND PRECIOUS STONES
RATE OF TAX IN GST REGIME

The rate of tax for jewellery fixed at 3% under Goods and Services Tax Act, 2017 and most of the dealers searching in the schedule.  The dealers dealing in jewels and precious stones etc., know that the rate of tax is 3% and the rate of tax for jewellery were noted in the GST  rate schedule for certain goods as per the discussions in the GST Council Meeting held on 3^rd June, 2017.  The dealers view the Columns taxable at 0%, 5%, 12%, 18% and 28% and feel there is no column taxable at 3%.  Hence the rate of tax for jewellery available in the schedule is given below for ready reference.

GST RATE SCHEDULE FOR CERTAIN GOODS [As per discussions in the GST Council Meeting held on 3rd June, 2017]

HSN CHAPTER	HSN CODE	NAME OF THE COMMODITY	RATE OF GST
71. (Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof ; imitation jewellery; coin	7101	Pearls, natural or cultured, whether or not worked or graded but not strung, mounted or set; Pearls, natural or cultured, temporarily strung for convenience of transport.	All goods of Chapter 71 (other than rough diamond will attract 3%
	7102	Diamonds, whether or not worked, but not mounted or set [other than rough diamonds].
	7103	Precious stones (other than diamonds) and semi-precious stones, whether or not worked or graded but not strung, mounted or set; ungraded precious stones (other than diamonds) and semi-precious stones, temporarily strung for convenience transport.
	7104	Synthetic or reconstructed precious or semi-precious stones, whether or not worked or graded but not strung, mounted or set; Ungraded synthetic or reconstructed precious stones, temporarily strung for convenience of transport.
	7105	Dust and powder of natural or synthetic precious or semi - precious stones
	7106	Silver (including silver plated with gold or platinum), unwrought or in semi - manufactured forms, or in powder form
	7107	Base metals clad with silver, not further worked than semi – manufactured.
	7108	Gold (including gold plated with platinum) unwrought or in semi - manufactured forms, or in powder form
	7109	Base metals or silver, clad with gold, not further worked than semi – manufactured.
	7110	Platinum, unwrought or in semi - manufactured form, or in powder form.
	7111	Base metals, silver or gold, clad with platinum, not further worked than semi-manufactured.
	7112	Waste and scrap of precious metals, of metal clad with precious metal.
	7113	Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal
	7114	Articles of goldsmiths' or silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal
	7115	Other articles of precious metal or of metal clad with precious metal.
	7116	Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or re-constructed).
	7117	Imitation jewellery.
	7118	Coins.
	7102	Rough Diamond	0.25%

The 10 percent Customs Duty on total tax on gold will continue in GST Regime.

Input tax credit can be claimed for gold jewellery manufacture.

Rough Diamond with HSN Code 7102 will attract 0.25% GST. 

How to download the Certificate of Provisional Registration in GST Portal

HOW TO DOWNLOAD THE CERTIFICATE OF PROVISIONAL REGISTRATION IN GST PORTAL

The Goods and Services Tax Act, 2017 comes into force with effect from 1^st July, 2017. 

Most of the dealers and service providers have enrolled in the GST Portal and received ARN and in certain cases the ARN is pending for want of correction of errors at the time of submission of details in GST Portal.

The Government has announced that the User ID issued is the GSTIN under the Goods and Services Tax Act, 2017 and the same is available in the GST Portal from 26.6.2017 onwards.

The Certification of Provision Registration may be downloaded for ready reference and also for intimating to the suppliers of goods and services by following the steps shown below:

Login in the GST Portal.

Enter User Name and Password and Characters shown in the field.

Click Dashboard in the header Button.

If Dashboard button in the header is clicked the following headings are available.

·       Provisional ID Enrolment

·       My Saved application

·       Register / Update DSC

·       View / Download Certificates

Now click View / Download Certificates option.

Now in the new window the details of Form No., Form Description, Date of Issue and Download button were available.

Click the option Download and take print out of the Certificate of Provisional Registration and proceed further like intimating to Suppliers, etc.

Goods and Services Tax Act 2017 comes into force from 1st July 2017 in India

GOODS AND SERVICES TAX IN INDIA FROM 1.7.2017

EASY TO UNDERSTAND

With the slogan of “One Nation, One Tax, One Market”, the Goods and Services Tax Act comes into force with effect from 1.7.2017. GST means “Goods and Services Tax”. 

When goods manufactured or services provided, the following taxes or duties were levied by the Central Government.

Central Excise Duty

Duties of Excise (Medicinal and Toilet Preparations)

Additional Duties of Excise (Goods of Special Importance)

Additional Duties of Excise (Textiles and Textile Products)

Additional Duties of Customs (commodity known as CVD)

Special Additional Duty of Customs (SAD)

Service Tax

(Goods containing taxes and duties levied by Central Government)

Now the cost of the goods or services increases which includes the above Central Government taxes and duties and then the following taxes or duties were levied by the State Governments and Union Territories.

Value Added Tax

Central Sales Tax

Entry Tax in lieu of octroi

Purchase Tax

State cesses and Surcharges in so far as they relate to supply of goods and services

(Goods containing taxes and duties levied by Central Government and then by the State Government)

When the Goods or services reaches the consumer, the consumer has to pay taxes on the taxes and duties paid to the Central Government also and thus the consumer has to bear more amount of money from his pocket by paying tax on taxes or duties which is called cascading effect.

In order to reduce tax burden on the consumers, the Goods and Services Tax has been launched which comes into force with effect from 1.7.2017 in India.

The Goods and Services Tax will be applicable on the supply of goods or services as against the present concept of tax on the manufacture and sale of goods or provision of services.  It would be a destination based consumption tax.

Burden of GST bourne by the consumer and hence Consumer is the King.

The rate of tax fixed under the Goods and Services Tax act were as follows:

§  Zero Rated

§  5%

§  12%

§  18%

§  28%

§  28% + Cess

The above rates of tax will be applicable for all inter-state supplies without any change. The above rate of tax on Goods and services will be applicable on IGST supplies.

The taxes and duties levied by the Central Government and State Governments and Union Territories are merged under Goods and Services Tax.  Hence the revenue derived from Goods and Services Tax will be equally shared to Central Government and State Governments and the Goods and Services Tax will contain three categories as shown below:

        IGST        -       Integrated Goods and Services Tax

        CGST      -       Central Goods and Services Tax

        SGST       -       State Goods and Services Tax

On inter-state supply of goods and services, the IGST i.e. Integrated Goods and Services Tax will be levied and the collections relates to Central Government.  IGST will also apply on Imports.  (For example a supplier in Tamil Nadu supplies goods to a consumer in Karnataka. The supplier in Tamil Nadu will collect IGST (at GST rate) from the recipient i.e. receiver. In such cases the IGST collected by the Tamil Nadu will go to Central Government.

The CGST and SGST will be levied on the goods or services supplies within the State i.e. intra-state.  GST is a consumption based tax.

The GST rate fixed by the Government comprises CGST and SGST equally and hence the supply turnover has to be assessed at the rates of CGST and SGST given below:

GST	CGST	SGST
5%	2.5%	2.5%
12%	6%	6%
18%	9%	9%
28%	14%	14%
28% + cess	14% + cess	14% + cess
Zero Rated	Zero Rated	Zero Rated

A taxpayer in Tamil Nadu supplies goods to a consumer in Tamil Nadu. The supplier and the consumer are in the same state.  The supplier will collect 50% of GST as CGST which belongs to Central Government and 50% of GST as SGST which belongs to Tamil Nadu State Government on the value goods or services. The consumer has to pay tax to the supplier as the CGST and SGST as the Goods and Services Tax is a consumption based tax. (In simple if a consumer purchases goods from other state he has to pay IGST at the GST Rate and purchases goods within the state he has to pay CGST + SGST which is equal to GST rate.  There is no difference of tax payable by a consumer if purchased inter-state or intra-state i.e. from anywhere in India. There will be Rate difference and not Tax difference)

For taxpayers the Input Tax Credit should be utilized in the following chronological order under reverse charge basis.

IGST	CGST	SGST
IGST	CGST	SGST
CGST	IGST	IGST
SGST	----	----

The IGST payment can be done utilizing ITC or by cash. However, the use of ITC for payment of IGST will be done using the following hierarchy, -

1.  First available ITC of IGST shall be used for payment of  IGST;

2.  Once ITC of IGST is exhausted, the ITC of CGST shall be  used for payment of IGST;

3.  If both ITC of IGST and ITC of CGST are exhausted, then only the dealer would be permitted to use ITC of SGST for payment of IGST.

        4. Remaining IGST liability, if any, shall be discharged using payment       in cash. GST System will ensure maintenance of this hierarchy for         payment of IGST using the credit.

REGISTRATION UNDER GST

The turnover limit for registration under GST Act in other than North Eastern States is Rs. 19 Lakhs and for North Eastern States i.e. Assam, Arunachal Pradesh, Manipur, Maghalaya, Mizoram, Nagaland, Sikkim and Tripura) is Rs. 9 Lakhs. Voluntary Registration is also available under the GST Act.

Compulsory registration required irrespective of turnover in the following cases:

              ·       Inter-state suppliers

·       A person receiving supplies on which tax is payable by recipient on reverse charge basis

·       Casual taxable person who is not having fixed place of business in the State of Union Territory from where he wants to make supply

·       Non-resident taxable persons who are not having fixed place of business in India

·       A person who supplies on behalf of some other taxable person (i.e. an Agent of some Principal)

·       E-Commerce operators, who provide platform to the suppliers to supply through it

·       Suppliers who supply through an e-commerce operator

·       Those e-commerce operators who are notified as liable for GST payment under Section 9(5)

·       TDS Deductor

·       Those supplying online information and data base access or retrieval services from outside India to a non-registered per in India

·       A Casual taxable person is one who has a registered business in some State in India, but wants to effect supplies from some other State in which he is not having any fixed place of business. Such person needs to register in the State from where he seeks to supply as a Casual taxable person. A Non-Resident taxable person is one who is a foreigner and occasionally wants to effect taxable supplies from any State in India, and for that he needs GST registration. GST law prescribes special procedure for registration, as also for extension of the operation period of such Casual or Non-Resident taxable persons. They have to apply for registration at least five days in advance before making any supply. Also, registration is granted to them or period of operation is extended only after they make advance deposit of the estimated tax liability.

In respect of supplies to some notified agencies of United Nations organization, multinational financial institutions and other organizations, a unique identification number (UIN) is issued.

·       

The Registration Fees under the GST Act is Rs. “NIL”

Every person who is registered or holds license under earlier law and Input Service Provider under earlier law is not necessary for fresh registration.  They can enroll themselves under the GST Act as per the guidelines already issued and a certification of registration will be issued on the appointed day which will be valid for a period of 6 months and on completion of required particulars Certification of Registration under CGST and SGST Act will be granted on final by the Central/State Government.

Any trade, commerce, manufacture, profession, vocation or any other similar activity, whether or not it is for a pecuniary benefit and any transaction in connection with incidental or ancillary to above and any transaction in nature, whether or not there is volume, frequency, continuity or regularity of such transaction and supply or acquisition of goods including capital assets and services in connection with commencement or closure of business and provision by a club, association, society or any such boy of the facilities or benefits to its members and admission for a consideration of persons to any premises and services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation is called business.

Supplier of Services, Restaurants, Personal Grooming Services, Transportation of Goods Services (LSP) and Transportation of Passengers Services, Supply of Home Television Services (DTH), Banking and Financial Services, Insurance Services, Courier and Postal Agency, Right to use any goods and Works contract etc will come under Services category.  In simple services means anything other than goods.

In the GST Act the word “furtherance” has been inserted first time in India.  What is the benefit of furtherance of trade?  In earlier acts a dealer or service provider can purchase capital goods and adjust the input tax credit if taxable goods are manufactured within a period of 3 years and if the goods manufactured are exempt from tax no Input Tax credit can be adjusted.  But in the GST Act, a delivery van for supply of goods will not be utilized for manufacture of taxable goods but used only to move goods from supplier to the recipient which is called furtherance of trade. Similarly telephones will be used only for the business communication and the services tax paid on the telephone will be also taken into credit as input tax credit.  For the purpose of business we can travel through train or we can stay in a hotel.  In such cases the Service Tax paid will also be taken into account for input tax credit in the business.  Only thing to do is each and every bill should contain GSTIN details for taking input tax credit.  The transportation of goods will attract service tax through logistics and in some cases insurance will also attract service tax.  Such service tax were also eligible for input tax credit in the course of supply or service

HSN CODE UNDER GST

In the earlier acts, the commodity codes and schedules may differ state to state and rate of tax also differ from state to state.  The rate of tax for the same commodity may vary as exempt, 1%, 2%, 5%, 14.5% etc. state to state.  In the GST Act, the Commodity codes were called HSN Codes and the rate of tax under the GST will be the same all over India without any deviation as decided by the GST Council.   Due to the introduction of HSN Code mismatch in commodity will not arise if correct HSN code applied for supplies and Services between supplier and recipient.

EXEMPTION THRESHOLD LIMIT UNDER GST

Threshold turnover for exemption per annum    Rs.20 Lakhs

In all States and Union Territories in India

(Except North Eastern States)

North Eastern States i.e. Assam,                          Rs.10 Lakhs

Arunachal Pradesh, Manipur, Maghalaya,

Mizoram, Nagaland, Sikkim and Tripura)

FILING OF RETURNS UNDER GST

There are three types of return filing options available under the GST Act to suppliers and service providers:

a.  Monthly

b.  Quarterly (for compounding options)

c. Annual

Persons who want to avail input tax credit must opt for monthly basis and persons who do not want to avail input tax credit may opt for compounding and a deduction under section 37 (Tax deduction at source), a casual taxable person and a non-resident taxable person may opt for Annual basis.

TYPES OF RETURNS UNDER GST

TYPE OF TAXPAYER	TYPE OF RETURNS TO BE FILED
Regular Taxpayer	GSTR 1 GSTR 1A GSTR 2 GSTR 2A GSTR 3 GSTR 3A GSTR ITC-1 GSTR 9
Composite Taxpayer	GSTR 4 GSTR 4A GSTR 9A
Foreigner – Non-resident Taxpayer	GSTR 5
Input Service Distributor	GSTR 6 GSTR 6A
Tax Deductor (TDS Return)	GSTR 7 GSTR 7A
E Commerce	GSTR 8
Aggregate Turnover	GSTR 9B
Final Return – For taxable person whose registration has been surrendered or cancelled	GSTR 10

RETURN TYPE, RETURN PERIOD AND RETURN DUE DATE

Return Form	Details to be furnished	Who has to file return	Period	Due Date for filing
GSTR 1	Details of outward supplies of taxable goods and / or services effected	Registered taxable Supplier	Monthly	10th of the succeeding month
GSTR 1A	Details of outward supplies as added, corrected or deleted by the recipient	Registered taxable Supplier	Additions deletions or corrections if any furnished in Form GSTR 1 should be made in Form GSTR 1A	11TH of the succeeding month
GSTR 2	Details of inward supplies of taxable goods and/or services claiming input tax credit	Registered taxable Recipient	Monthly	15th of the succeeding month
GSTR 2A	Auto populated details of inward supplies made available to the recipient on the basis of FORM GSTR-1 furnished by the supplier	Registered taxable Recipient	Additions deletions or corrections if any in the auto populated details of inward supplies made available to the recipient on the basis of GSTR furnished in Form GSTR 1 furnished by the supplier should be made in Form GSTR 2A	Before 15th of the succeeding month (in Form GSTR 2)
				The assessee is required to verify, validate, modify or even delete the details furnished by the suppliers.
GSTR 3	Monthly return on the basis of finalization of details of outward supplies and inward supplies (auto populated)  along with the payment of amount of tax	Registered taxable Person	Monthly	20th of the succeeding month
GSTR 3A	Notice to a registered taxable person who fails to furnish return under section 27 and section 31	By the Tax Authority i.e. proper officer	--	On receipt of notice from the Department the Taxpayer file returns within 15 days of receipt of notice
GSTR 4	Quarterly Return for compounding Taxable persons	Composition dealer	Quarterly	18th of the month succeeding quarter
GSTR 4A	Auto populated details of inward supplies made available to the recipient on the basis of FORM GSTR-1 furnished by the supplier (quarterly)	Composition dealer	Quarterly	The assessee is required to verify, validate, modify or even delete the details furnished by the suppliers every month.
GSTR 5	Details of imports, outward supplies, ITC availed, tax paid, and closing stock details	Non-Resident Taxable Person (Foreigner)	Monthly	The assessee is required to verify, validate, modify or even delete the details furnished by the suppliers.
			Expiry of Registration	Within 7 days after expiry of registration.
GSTR 6	ISD return. Details of input credit distributed.	Input Service Distributor	Monthly	13th of the succeeding month
GSTR 6A	Details of inward supplies made available to the ISD recipient on the basis of FORM GSTR-1 furnished by the supplier	Registered taxable Input Service Recipient	Additions deletions or corrections if any in the auto populate details of inward supplies made available to the recipient on the basis of GSTR furnished in Form GSTR 1 furnished by the supplier should be made in Form GSTR 6A	11th of the succeeding month
GSTR 7	Return for authorities deducting tax at source	Tax Deductor	Monthly	10th of the succeeding month
GSTR 7A	TDS Certificate to be made available for download	TDS Certificate – capture details of value on which TDS is deducted and deposit on TDS deducted into appropriate Government	Monthly	..
GST - ITC-1	Communication of acceptance, discrepancy or duplication of input tax credit claim
GSTR 8	Details of supplies effected through e-commerce operator and the amount of tax collected on supplies as required under sub-section (1) of section 43C	E-commerce Operator / Tax Collector	Monthly	10th of the succeeding month
GSTR 9	Annual Return	Registered Taxable Person	Annual	31st December of next financial year
		Input Service distributor, deductor of tax, casual taxable person and Non-Resident taxable person are not required to furnish annual return.
GSTR 9A	Simplified Annual return by Compounding taxable persons registered under section 8	Composition dealer	Annual	31st December of next financial year
GSTR 9B	Reconciliation Statement – audited annual accounts and a reconciliation statement, duly certified	By Taxpayers whose aggregate turnover exceeds 1 crore in a year	Annual	31st December of succeeding year.
GSTR 10	Final return with details of inputs and capital goods held tax paid and payable.	Taxable person whose registration has been surrendered or cancelled	Monthly	Within three months of the date of cancellation or date of cancellation order, whichever is later.
GSTR 11	Details of inward supplies to be furnished by a person having UIN	Person having UIN and claiming refund and Government Departments	Monthly	28th of the month following the month for which statement is filed

RATES OF TAX FOR GOODS AND SERVICES

IN CERTAIN CIRCUMSTANCES

In the existing acts, the schedules contains the words “parts and accessories thereof” or “spare parts and accessories thereof”.  The parts and accessories were billed with the main commodity, the rate of tax for the main commodity will attract.

In the GST regime, there are three types of supplies 1) Principal supply; 2) Composite supply and 3) Mixed supply.

PRINCIPAL SUPPLY

A consumer comes to a taxpayer’s premises and buys a stabilizer (purpose not known) spot delivery basis and pays cash.  The Supplier supplies goods and levies tax at the rate mentioned in the schedule for stabilizer.  This is principal supply and attract rate of tax for goods mentioned against HSN Code.

The Tax Invoice issued with GSTIN and address of the recipient will be treated as B2B (i.e. Business to Business) transactions.  The Tax Invoice issued without GSTIN will be treated as B2C (i.e. Business to Consumer) transactions.  Only B2B transactions are eligible for Reverse Charge Input Tax Credit and B2C transactions are not eligible for Input Tax Credit under Goods and Services Tax Regime.

In the GST regime a new concept of supplying the goods together has been introduced which is called Composite supply and Mixed supply.  The differences between the composite supply and mixed supply are as follows:

COMPOSITE SUPPLY

Section 2 (30): “composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;

Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply

For example a consumer purchases an Air-conditioner with warranty and the goods were delivered by the supplier’s vehicle to the recipient’s premises and installation made by the supplier. In this case supply of goods and services were made in the ordinary course of business, one of which is a principal supply of Air-conditioner i.e. supplies comprising two or more goods/services, which are naturally bundled and supplied in the ordinary course of business, one of which is principal supply i.e. Air-Conditioner.  In this case supply of Air-conditioner is the principal supply, transportation, installation and warranty and maintenance service are ancillary. This type of supply is called composite supply.

MIXED SUPPLY

Section 2(74): “mixed supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately..

  

Now there are so many offers like the following:

·       Cooker with Tawa

·       Refrigerator with Travel Bag

·       Cell Phone with Memory Card

·       Computer with UPS

·       Washing machine with foldable laundry bag

·       Mattress with pillows

·       Cherry fruits in plastic containers

·       Fruit Juices in plastic bottles

·       Sweets in carton box or plastic container 

·    

The above items can be supplied separately and it is not dependent on any other.  If the goods were supplied to a recipient with other goods, the same is treated as mixed supply under GST i.e. two or more individual supplies of goods or services, or any combination, made together with each other by a taxable person for a single price. A mixed supply comprising two or more supplies shall be treated as supply of the item which has the highest rate of tax.

Hence the business activities has to be changed in such way that the commodities attracting the same rate of tax are clubbed together to avoid higher rate of taxation. The exempted commodities will also attract higher rate of tax in mixed supply even though the principal commodities were exempt under the GST Regime.

DIFFERENT RATE OF TAX FOR SAME TYPE OF GOODS

Mixed supplies will attract the rate of tax of the main commodity irrespective of ancillary commodity.

Similarly dates, figs, pincappies, avocados, guavas, mangoes and mangosteens are exempt in fresh or dried form and the same is taxable at 12% (HSN Code:0804) and Fresh Grapes are exempt and taxable at 12% (HSN Code:0806), and  fresh peel of citrus fruit or melons (including watermelons) are exempt and taxable at 5% (if frozen, dried or provisionally preserved in brine, in sulphur water or in other preservative solutions).

Similarly in some commodities, the quality has to be ascertained and tax to be collected. For example all Oil seeds, oleaginous fruits miscellaneous grains, seeds and fruit (HSN Code 12.1201 to 12.1213) will be zero rated if the goods are of seed quality and the same will be taxed at 5% if the goods are other than of seed quality. But for both commodities the HSN code is the same and while furnishing returns care should be taken.

There are some commodities taxable at various rates with the same HSN Code and also zero rated.  Similarly some commodities were zero rated if sold without packing and the same is liable for taxation if packed.

PLACE OF SUPPLY UNDER GST ACT

In the existing act a dealer can simply raise the bill entering the address details of the consignee and the same may be either intra-state (if sold to the customers within the state) or inter-state (if sold to the customers outside the state) or export (if sold to other countries) and in all cases place of supply and sufferance of tax is in the same location of the business premises of the seller and tax collected by the seller belongs to the selling dealer’s state. 

In the GST regime a new concept has been introduced which is called place of supply. Based on the place of supply concept Tax invoice of the supplier is designed with the following details.

1.  Details of supplier containing 1) GSTIN 2) Name of supplier 3) Address 4) Serial Number of Invoice and 5) Date of Invoice

2.  Details of receiver (Billed to) containing 1) Name 2) Address 3) State 4) State Code and 5) GSTIN/Unique ID

3.  Details of consignee (Shipped to) containing 1) Name 2) Address 3) State 4) State Code and 5) GSTIN/Unique ID

In the existing acts, the tax realized will be the revenue of the concerned governments where the business premises lies but in the GST regime the tax SGST revenue received on supply of goods or services or both will belongs to the consumer location based government which will be allocated by the Central Government.  In simple the tax would accrue to the taxing authority which has jurisdiction over the place of consumption which also termed as place of supply.

The Tax Invoice issued with GSTIN and address of the recipient will be treated as B2B (i.e. Business to Business) transactions.  The Tax Invoice issued without GSTIN will be treated as B2C (i.e. Business to Consumer) transactions.  Only B2B transactions are eligible for Reverse Charge Input Tax Credit and B2C transactions are not eligible for Input Tax Credit in Goods and Services Tax Regime.

If a consumer i.e. recipient comes to a registered business place of a supplier and purchases goods and goods delivered at the same place, In this case, the place of delivery will be treated as supply of goods at the registered place of business.  Example: Cash sales or counter sales etc.

Services undertaken at the registered place of service provider will be treated as services at the registered place of service. Example: Undertaking repairs at the registered place under the GST Act.

If goods delivered or services provided other than the place of business, the place of supply will be where the goods delivered to the consumer or service recipient. Example: Installation / assembly at site.

If the recipient of goods and recipient of services and supplier of goods or services are in the same state CGST and SGST is applicable.

If the supplier of goods and services or both and the recipient of goods and services or both are in different states IGST is applicable.

Services provided in immovable property i.e. construction, repair, renovation etc. the place of business will be the location at which the immovable property is located.

In respect of restaurant and catering, personal grooming, fitness, beauty treatment, health services cosmetic and plastic surgery will come under services and place of supply will be location where the services are actually performed.

In respect of goods imported from other countries, the location of importer is the place of supply of goods imported.

In case of services provided on goods but from a remote location by way of electronic means, the location where goods are situated at the time of supply of services will be the place of supply of services.  Example: Maintenance of software through internet.

In case of transportation of goods, other than by way of email or courier, the place of destination of such goods will be the place of supply of services. Example: Logistics.

MAINTENANCE OF ACCOUNTS TO FILE RETURNS

Each and everybody having interested in knowing the maintenance of accounts and filing of returns and attends the training classes conducted by trained trainers.

In all the training classes the trainers says “filing of returns is very easy in the GST Regime. Just upload the sales details in Form GSTR I on or before 10^th of the succeeding month.  The inward goods/services details will be auto populated and you just very the same and reconcile the turnover. If you verify the inward goods/services turnover and reconcile the same and confirm the same the inward goods/services   returns will be filed automatically.  You just open the portal before 20^th and see the auto generated GST return and make payment”

It is very easy to say but very difficult to follow practically. At present the dealers can prepare inward goods details and supply of goods details and if ITC is carried forward closing details (in the form of annexure) and if the annexures are uploaded in the website and generate base form the VAT return and CST return will be visible. You just enter the purchase of goods from the unregistered and sale of goods to the unregistered consumers and the return will be prepared and tax payable or excess input tax credit will be calculated in the present system. This can be done within one or two days for small concerns and within 5 days for major concerns and filing of returns can be completed from 1^st of the succeeding month. Filing of returns and payment of taxes in full will be completed on any date from 1^st to the last due date and you cannot wait for others.

But in the GST regime the supply details have to be uploaded on or before 10^th of the succeeding month. If there is no supplies in a particular month “NIL” returns have to be filed compulsorily.  If the taxpayer has not made any purchases, the taxpayer will have to wait until 11^th to view the auto populated inward goods/services details. Returns in complete shape will be generated only after 15^th and payment and filing of return to be done before 20^th. If there is any delay penalty of Rs. 100 per day will be applicable for each category.  A Taxpayer has to wait for auto populated inward goods/services details and then only he will be able to file full return in complete shape.

For that purpose, each every taxpayer has to complete the accounts before 10^th of the succeeding month and file supply   details. The inward goods/services details must be kept ready alphabetically or supplier-wise in order to verify the correctness of auto populated inward supplies then only the verification of auto populated inward supplies will be possible. Variations if any must be reconciled before 17^th and final return to be filed. 

In the old regime taxpayer can prepare returns at any time before the last date but in the GST regime supply details have to be uploaded before 10^th and inward details to be verified before 15^th and final return to be filed before 20^th in three stages.  Filing of return without payment of due is not a complete return.  All communications and filing of returns are only electronically and there is no manual filing of returns.

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