GOODS AND SERVICES TAX

1 GOODS AND SERVICES TAX. GOODS AND SERVICES TAX PART II. GOODS AND SERVICES TAX PART II. Taxes under GST. Registration Supply Time of Supply Value of Supply Place of Supply Input Tax Credit Payment of Taxes Returns TAXES UNDER GST. Different types of taxes are levied under GOODS and SERVICES Tax for supplies of GOODS or SERVICES or both, which are as under: Sl. Act which governs levy Type of Tax Rate of Tax No. of such tax 1 Central GOODS and SERVICES Tax CGST Act, 2017 of applicable GST rate if (CGST) GST rate 5%, then CGST rate 2 State GOODS and SERVICES Tax SGST Act, 2017 of of applicable GST rate if (SGST) respective State GST rate if 12%, then SGST rate is 6%. 3 Union Territory GOODS and UTGST Act, 2017 of applicable GST rate if SERVICES Tax (UTGST) GST rate if 18%, then UGST rate is 9%. 4 Integrated GOODS and SERVICES IGST Act, 2017 GST rate Tax (IGST). Apart from the above four different types of taxes, Compensation Cess is payable on certain GOODS and SERVICES .

2 1. Central GOODS and SERVICES Tax (CGST). Central GOODS and SERVICES Tax (CGST) is levied on all intra-state (within the state) supplies of GOODS or SERVICES or both. CGST is levied as per provisions of of the CGST Act, 2017. It is a Central tax and CGST amount collected from tax payers is tax revenue of the Central Government. However, CGST is not leviable on the following items: a. Alcoholic liquor for human consumption b. Petroleum crude c. High Speed Diesel (HSD). d. Motor spirit (Petrol). e. Natural gas, and f. Aviation Turbine Fuel (ATF). Rate of CGST has been notified by the Government on the recommendation of the GST Council and such rates are half of the GST rate as mentioned below: Applicable GST Approximate number CGST Rate GOODS /Service Rate of items covered GOODS 149. NIL Rate NIL Rate SERVICES 87. 0% 0% Exports of GOODS GOODS Unpolished Diamond, precious 3. stones etc. 1% GOODS - Traders who have opted for 1.

3 GOODS AND SERVICES TAX PART II. Composition levy scheme 2% 1% GOODS - Manufacturers who have opted for All GOODS which are Composition levy scheme manufactured except, Pan Masala, tobacco and ice -cream 3% GOODS - Gold, Silver, Jewellery etc. 18. GOODS Frozen food items, Tea, Coffee, 263. branded food products, Medicines etc. SERVICES Restaurants without service of 1. alcohol who have opted for Composition 5% levy SERVICES Transport of GOODS by rail, in 12. vessel, Transport of passengers by rail in Air- Conditioned coaches or First Class etc., GOODS - Meat products, dried fruits, food 242. items, lottery etc. 12% 6% SERVICES Food in a Non-AC Restaurant, 7. Hotel stay with room rent of more than `1,000/- but less than `2,500/- etc. GOODS - Hair Oil, Toothpastes, Refractory 452. cements etc. SERVICES - Food in an AC Restaurant, Works 8. 18% 9% Contract, Hotel stay with room rent of more than ` but less than `7,500/- any service which is not taxed at any specified rate etc.

4 GOODS - Chewing gum, Chocolates, Pan 228. masala etc. 28% 14%. SERVICES - Hotel stay with room rent of more 4. than ` , Gambling etc. 2. State GOODS and SERVICES Tax (SGST). State GOODS and SERVICES Tax (SGST) is levied on all intra-state (within the state) supplies of GOODS or SERVICES or both. SGST is levied as per the provisions of respective State GST Acts. SGST rate is same to that of CGST rate. It is a State tax and SGST amount paid by tax payers is tax revenue of the respective State Government. SGST is applicable to 29 States and two Union Territories Delhi and Puducherry who have state legislatures. 3. Union Territory GOODS and SERVICES Tax (UTGST). Union Territory GOODS and SERVICES Tax (UTGST) is levied on all intra-Union Territory (within the Union Territory) supplies of GOODS or SERVICES or both. UTGST is levied as per the provisions of UTGST Act, 2017. and applicable to all five Union Territory which are as under: a.

5 Andaman & Nicobar Islands b. Lakshadeep c. Dadra and Nagar Haveli d. Daman and Diu, and e. Chandigarh. UTGST rate is same to that of SGST rate. 4. Integrated GOODS and SERVICES Tax (IGST). Integrated GOODS and SERVICES Tax (IGST) is levied on all inter-State (between the states) supplies of GOODS or SERVICES or both. IGST is levied as per the provisions of IGST Act, 2017. All imports are also subject to IGST. IGST amount paid by tax payers is apportioned between the Centre and respective State Government where supply is made. However, IGST is collected by Central Government for easy administration and later on Central Government transfer the State share to respective state. Applicable GST rate is the IGST rate and the taxpayer do not split IGST into CGST and SGST while paying. 2. GOODS AND SERVICES TAX PART II. 5. Compensation Cess Compensation cess is levied on intra-state supply of GOODS or SERVICES or both as per recommendation of the GST Council.

6 Basic objective of levy of Compensation cess is to provide compensation to States for a period of five years with effect from , for the loss of revenue arising out of implementation of GST. However, Compensation cess is not applicable for taxpayers who opt for Composition levy scheme. Compensation Cess is levied either as a equivalent rate of GST or a fixed amount per quantity. Usually sin GOODS like pan masala, cigarette etc. and luxury GOODS like car etc. and environment polluting GOODS like coal attract Compensation Cess which is over and above the applicable GST. Some of the cess rates are as under: Description of GOODS Rate of GST Compensation cess Pan-masala 60%. Aerated waters 12%. Lemonade 12%. Others 12%. Unmanufactured tobacco (without lime tube) 71%. bearing a brand name Unmanufactured tobacco (with lime tube) 65%. bearing a brand name Tobacco refuse, bearing a brand name 61%. Cigar and cheroots 21% or ` 4170 per thousand, whichever is higher Cigarillos 21% or ` 4170 per thousand, whichever is higher Cigarettes containing tobacco other than filter 5% + `1591 per thousand cigarettes, of length not exceeding 65 millimetres Cigarettes containing tobacco other than filter 5% + `2876 per thousand cigarettes, of length exceeding 65 millimetres but not exceeding 75 millimetres Filter Khaini 160%.

7 Pan-masala containing tobacco 'Gutkha' 204%. Coal `400 per tonne REGISTRATION. Registration is required for every Supplier for each State or Union Territory when the following conditions are fulfilled: a. The Supplier is making taxable supply of GOODS or service or both; and b. Aggregate turnover in a financial year exceeds rupees twenty lakhs. This limit of rupees twenty lakhs is rupees ten lakhs for the special category states. Refer for more details. Registered persons under the pre-GST Law persons who were registered earlier for Central Excise, Service Tax, VAT, CST, Entry Tax etc. had to migrate into GST as those taxes, duties and cess subsumed into GST. However, persons dealing with alcohol for human consumption and the five petroleum products like petroleum crude, diesel, petrol, aviation turbine fuel and natural gas are still continuing as per the pre-GST Law and have not migrated into GST if they are exclusively dealing with these non-GST.

8 GOODS even in GST regime. A Person who is supposed to be registered under GST includes: a. an individual;. b. a Hindu Undivided Family;. c. a company;. d. a firm;. e. a Limited Liability Partnership;. 3. GOODS AND SERVICES TAX PART II. f. an association of persons or a body of individuals, whether incorporated or not, in India or outside India;. g. any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013;. h. any body corporate incorporated by or under the laws of a country outside India;. i. a co-operative society registered under any law relating to co-operative societies;. j. a local authority;. k. Central Government or a State Government;. l. society as defined under the Societies Registration Act, 1860;. m. trust; and n. every artificial juridical person, not falling within any of the above;. Registration is compulsory for the following types of persons as per GST Law: (i) persons making any inter-State taxable supply, except supplier of SERVICES whose turnover is less than ` lakhs for all taxable territories excluding the state of Jammu and Kashmir for which the limit is ` lakhs.

9 (ii) casual taxable persons making taxable supply;. (iii) persons who are required to pay tax under reverse charge;. (iv) specific SERVICES which are intra-state supplies and for which the electronic commerce operators pay the taxes;. (v) non-resident taxable persons making taxable supply;. (vi) persons who are required to deduct Tax Deduction at Source (TDS), whether or not separately registered under this Act;. (vii) persons who make taxable supply of GOODS or SERVICES or both on behalf of other taxable persons whether as an agent or otherwise;. (viii) Input Service Distributor, whether or not separately registered under this Act;. (ix) persons who supply GOODS or SERVICES or both, through such electronic commerce operator who is required to collect tax at source;. (x) every electronic commerce operator;. (xi) every person supplying online information and database access or retrieval SERVICES from a place outside India to a person in India, other than a registered person; and (xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council.

10 The following persons are not be liable to registration: (a) any person engaged exclusively in the business of supplying GOODS or SERVICES or both that are not liable to tax or wholly exempt from tax;. (b) an agriculturist, to the extent of supply of produce out of cultivation of land. Threshold for Registration A person whose aggregate turnover during a financial year does not exceed the following threshold (small tax payers) is not liable for registration in normal situation. Threshold Limit States/Union Territory to which applicable ` lakhs 1. Arunachal Pradesh 2. Assam 3. Jammu & Kashmir 4. Manipur 5. Meghalaya 6. Mizoram 7. Nagaland 8. Sikkim 9. Tripura 10. Himachal Pradesh, and 11. Uttarakhand ` lakhs Remaining 18 States, 2 Union Territory having state legislature Delhi and Puducherry and five Union Territories Aggregate turnover is the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, export of 4.