GST Returns. 8. Professional Course, Course on GST Exports Intra state supply means supply with in the state. Service provided by employee to an employer In the normal scenario one who provides service needs to charge GST to the service provider and he is required to deposit GST to the government but under reverse charge mechanism service receiver must pay GST. What is the concept of Input Service Distributor under GST with Example. IGST is the connecting link, a bridge between the states to pass on the input tax credit to another state. 4. Limited Period Offer Avail 20% discount in all subjects CA,CS and CMA,Coupon- OFFER20 Call: 088803-20003, Aniruddha Deshpande  If the recipient is not a registered person, then the place of supply will be the location of the recipient where the address on record exists otherwise it will be the location of the supplier. For example, if you charged RM100 for your services to a customer in Malaysia, you must invoice your customer RM106 (RM100 for your service plus 6% GST tax). Any person who holds position under constitutions CGST: CGST (Central GST) is charged by central government. Therefore, the place of supply is Rajasthan and it is an inter-state sales. However, there is much more to GST than meets the eye. II. VII. GST excluding amount = 525/(1+5/100) = 525/1.05 = 500. IGST is also charged on the import goods. SGST: SGST (State GST) is applicable on the Intrastate supply. 4,180 is allowed as a deduction from the Gross tax payable of Rs. For example, if supply of good or service requires to charge total 18% GST than the same divided into equal proportion and 9% of the amount of supply of Goods and services are charged as CGST and rest 9% amount is charged as SGST. In India there are total 9 union territories. This Council would function under the Chairmanship of the Union Finance Minister and will have Minister in charge of Finance/Taxation or Minister nominated by each of the States & UTs with Legislatures, as members. A dealer in Delhi makes a sale to another dealer in Delhi. Save your team efforts and time. • LIC Agent, Indian post service by way of speed post But learning more about GST, first learn what does GST stands for. Model of GST with example: The GST shall have two components: one levied by the Centre (referred to as Central GST or CGST), and the other levied by the States (referred to as State GST or SGST). 5,000. Intra state than CGST is charged. Transfer: Transfer of goods/product without title Services provided at the time of funeral/ mortuary. • Customs- Still existed No spam, Only relevant mails. The main reason to introduce GST was to eliminate cascading effect which was they’re in the previous tax structure. GST is basically consumption-based tax. The GST is essentially a tax on value addition at each stage of the supply chain; every supplier, who is the person supplying the goods and/ or services or an agent acting as such on behalf of such a supplier, can claim credits (over input taxes paid at each stage of supply chain) in the subsequent stage of value addition. 2,000 each at a rate of 5%. As we have seen in the example of CGST that if certain supply of service or product requires to charge 18% GST than the this 18% will be bifurcate in the same proportion. 1. Duties performed by MP/MLA/State leister/Panchayat/ Municipalities and other local authorities. 50,000/- E-way bill can be generated through SMS, Android App. It was difficult for small businessmen to maintain calendars for payment dates and return dates. All such persons are required to collect GST from their customers and pay to the government. Capital goods are those goods which you had NOT purchased for the purpose of reselling. GST excluding amount = 525/ (1+5/100) = 525/1.05 = 500 GST is calculated on the transaction amount and not on the MRP. 1. Under GST input tax credit can be claimed irrespective of place of supplier, thus making accessibility for sales and purchase of goods easier. For e.g. As you can see from the above examples, the input tax credit flows freely in GST regime from one party to another party. Subscribe to our weekly newsletter and get updates in your email. How will tax liability on a composite supply be determined under GST? 525 and GST rate is 5%. Disposal: In simple terms scrapping of goods or sending one goods from one branch to another branch will cover under this. • Property tax. The taxable event under GST shall be the supply of goods or services or both made for… In GST Concepts. 17 taxes. Any person who is selling goods or providing inter-state services are required to register for GST compulsorily. This is to avoid cascading effect of tax. 7. When goods/service is supplied with in same state i.e. As stated above, TDS concept was originally introduced in Income Tax Act, and later introduced in GST. Goods and Services Tax is a destination-based, multi-stage, comprehensive tax levied at each stage of value addition. 180. This workshop will help you reinforce your current knowledge on GST fundamentals and concepts and to keep pace with the changes. 80,000 and paid CGST and SGST of Rs. As we know Goods and Service Tax (GST) will 100% be implemented on 01-07-2017. II. There are certain limitations and restrictions on taking the input tax credit. Input tax credit is used while paying tax liability. VI. In GST Concepts. Let’s understand the concept by taking an example. If you have the amount which is already including the GST then you can calculate the GST excluding amount by below formula, GST excluding amount = GST including amount/(1+ GST rate/100). If transactions are made with in two union territories than UTGST+CGST are charged in equal proportion. while at the time of supplying goods/ services it is accounted for GST payable account. If person supplies good or service than he charged GST to the customer. As we have seen in the CGST, IGST, SGST and in the UGST that taxes are charged according to the destination from which person has supplied goods and service. Implemented by a majority of nations worldwide with respective customisations, the tax has been successful in simplifying the indirect taxation structure of In… Now the question arises: What is a place of supply? Check GST return status of your client’s or suppliers using GSTIN. Reverse charge Mechanism (RCM) means service receiver is required to pay GST and service provider. SGST- State Goods and Service Tax Types of taxation in GST:-IGST : Integrated GST. It has direct bearing on the amount of GST charged on a particular supply. VIII. Here are some point which help you to understand the whole concept of GST. GST is not applicable to alcohol, crude petroleum, motor spirit, diesel, aviation turbine fuel and natural gas. Calculation of GST Amount payable to Government apply to goods. The cost of GST is borne by the final consumer, who can’t claim GST credits, i.e. GST Concepts and Principles 3 Scope of GST The scope of GST is provided for under Section 7 of the GST Act. If the business is in union territory, then UTGST will apply in place of SGST. To help you understand the concept of Inverted Duty Structure, the following is an example where GST on raw pulp (input) is higher than the GST rate on a paper bag (output). 3.7 GST Council: In the GST regime, a Goods and Services Tax Council is being created under the Constitution. Mr. A of Maharashtra sells goods to Mr. B of Gujarat at INR 1000. To attract domestic investors and foreign investors to simplify rules for boosting Indian economy it was necessary to simplified tax rules and to introduce tax laws which are easy to adhere and will cover Goods and service under one law. Actionable claim in the simple word can describe as claims can be enforced only by legal/suit action. Supply includes Sale, transfer, barter, license, rental, lease, exchange and disposal. Mr. B will able to avail input tax credit of INR 50. As we have seen above that GST law has made in very lucid manner and less complicated terminologies are used in the GST. For example, GST including amount is Rs. Sale: Transfer of ownership of goods or product. Government Fees (such as MCA fees, land registration fees etc. VI. This is called Reverse Charge in GST Example A will provide Service to B of 100000 (without tax) In this case, ... (There was no reverse charge concept in Vat) However, now in GST, it is applicable in Goods Also Example X Sold Goods to B of Rs 100000 Suppose GST Rate is 5%, X will sell goods to Y for Rs 100000 + GST 5% = 105000 You can easily calculate GST amount using our GST Calculator. GST concepts and . 3. For example, 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 the principal supply. If CGST & SGST/UTGST is to be applied then CGST and SGST both amounts are half of the total GST amount. Professional Course, Online Excel Course The tax is levied on goods and services sold within India’s domestic boundary for consumption. V. Actionable claim (Excluding Betting/Gambling and lottery). If A provides service to B and if A and B are located into Maharashtra (i.e in the same state) than SGST is charged on the goods. An example of composite s… IGST: IGST (Integrated GST) is applicable on interstate transactions of goods and service tax. State who consumes service will get tax benefit irrespective of service supplied by other state. As . SGST : State GST … Venue : Singapore Marriott Hotel Programme : 9am to 5pm Dates : 19 February & 13 May 2016. Q 20. explained with an example GST is a single tax on the supply of goods and services. • Renting immovable properties, When transporters carry/moves goods from one place to another, transporter is required to generate E-way bill. If transporter does not generate E-way bill than GST authority can charge penalty of Rs. Mr. B of Gujarat sells … Rental: If Person rents his/her asset against receiving periodical payment from another person. VII. It also has bearing on the aggregate turnover of the supplier and therefore Section 194J | TDS on Professional or Technical Fees, 14 Reasons Why your GST registration may be suspended, GST Registration to be cancelled for Mismatch in Sales Return, TDS on Payments to Residents & Non-Residents, All About Voluntary Payment Using Form GST DRC 03, Departmental GST Audit Process - Key Highlights. Tracking dates of for payment of all Indirect taxes and filling monthly/Quarterly / half yearly annual return was tedious process. You can also submit your article by sending to article@caclubindia.com, GST certification This tax is collected on the transactions made with in state. Place of supply in case of services will be the location of the recipient if he is a registered person. For example, if supply of good or service requires to charge total 18% GST than the same divided into equal proportion and 9% of the amount of supply of Goods and services are charged as CGST and rest 9% amount is charged as SGST. Now let us see what the term supply in the GST is. Central Indirect Taxes – Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD), Special Additional Customs Duty, Central Surcharges and Cess, State Indirect Taxes – VAT/Sales Tax, Entertainment Tax, Central Sales Tax, Octroi and Entry Tax, Purchase Tax, Luxury Tax, Tax on Lottery, State Cesses and Surcharges. Manage your practice efficiently. 20 and Rs.40 Lakhs yearly (in case of supply of goods) and Rs. You can read more about it from here – Input Tax Credit Under GST. Write a comment below and I will try my best to answer quickly. He had also paid a bill of internet of Rs. Lakshadweep 3. ... Part 1 in reference to Basic Concepts of GST is an excellent way to share the real concepts proposed in GST. Time of Supply. Taxpayers often fall victim to the misconception that GST is simple - just charge 7%. Prateek Agarwal is a Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. I. GST Returns, Types of GST Returns, New GST Returns & Forms, Sahaj GST Returns, Sugam GST Returns, GSTR 1, GSTR 2, GSTR 3B, GSTR 4, GSTR 5, GSTR 5A, GSTR 6, GSTR 7, GSTR 8, GSTR 9, GSTR 10, GSTR 11 India ... for example, banking, insurance, or public utilities. Composite Supply: The composite supply under GST section means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or supplied in a 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. Now will deeply study each term. 2,500 at the rate of 5%. A dealer in Mumbai makes a sale to a dealer in Delhi. 10 Lakhs (In case of Person carrying business in the North-East states) and 20 Lakhs are required to register for GST(in case of supply of goods who is carrying business in the north-east states). License: If one person grants permission to use his/her product to another person. GST rate is 18%, so CGST of 9% and SGST of 9% will be applicable. • Fees paid to advocate Meaning of Furtherance of Business under GST: Is the activity, a serious undertaking earnestly pursued? Professional Course, India's largest network for finance professionals. An example of this is when we go out to eat at a restaurant. Supply may be Interstate or Intra state. Since Delhi and Pondicherry have their own legislation, they are charging SGST instead of CGST. 525 and GST rate is 5%. Unregistered person is also required to generate E-way bill. 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