IMPACT OF GS GST O ON HIGH GHER ED EDUC UCATION N & & SMEs SM D DAS & K KAMALUDDIN UDDIN CHAR ARTER TERED ED ACCOUN COUNTA TANTS NTS
The Journey of GST The Constitution First Discussion Paper (122 nd Amendment) Bill was released by the was introduced in the Lok Sabha Empowered Committee 2006 201 1 200 201 Announcement of GST for the first time was Constitution (115 th Amendment) Bill made by the then Union Finance Minister, 9 4 The Constitution (One introduced and subsequently lapsed during budget of 2006-07 that it would Hundred and First introduced from 1 April 2010 Aug Amendment) Act was 2016 enacted April May March Sep 2017 2017 2017 2016 CGST, IGST, UTGST and GST Council GST Council Recommends 1 st GST Council Compensation Cess Acts recommends the CGST, SGST, IGST, Meeting passed all the rules UTGST and Compensation All States Cess Act except J&K 30 th June passed their 2017 SGST ACT Journey • Notifying and amending rules 1 st July 8 th July Continues… • Dealing with IT related issues 2017 • 2017 Revision of Rates • Clarification and communication with taxpayers GST Launched SGST Act passed by J&K; CGST and IGST Ordinances promulgated to extend GST to J&K True Economic Integration of India 3
WHAT I WH T IS G S GST ST ▪ A tax ch charged ged on on suppl ply of of Goods ods and Ser ervices vices or or both both for co consi sideration deration. ▪ GST is is a desti tination nation based co consumpti sumption on tax. ▪ GS GST is is a value lue add added ed tax tax to to be be levi evied ed on on both both goods goods and and serv ervic ices, es, (except (exce pt th the exempted ex empted goods goods and and ser ervices) vices). ▪ The he tax tax wi will ll be be levied evied on on the the value value of of the the goods goods or or service vice supplie lied and whethe her sold or or not. Destina tinati tion on Seaml mless Multi Stage ge Value ue Added base sed Credit it across ss Tax Tax Tax Tax consum umpti tion on enti tire re supply y tax chain
CO CONS NSTI TITU TUEN ENTS TS OF GS GST GST Inter- State te Intra- State te IGST SGST CGST Revenue will be ultimately received by the state in which goods are finally consumed
Central GST (CGST) - Levy on supply of ALL goods and/ or services within State, by the Central Government State GST (SGST) - Levy on supply of ALL goods and/ or services within State, by the respective State Government Integrated GST (IGST) – Levy on ALL inter-State supplies of goods and/ or services, by the Central Government
• Single Tax-GST • Multiple State Taxes • • Single Tax Central Taxes • Multiple State Tax • Tax Administrations Administration Administrations • CEx/ST Act &Rules • • Uniform law Multiple Acts & Rules SingleTax-GST • Procedures • • Computerized Multiple procedures Single Tax uniform Administratio procedures n Pre-GST Indirect tax structure in India Uniform law GST Computerized uniform CGST IGST procedures SGST /UTG S T GST Structure in India As per Order 0 1 / 2017 dated 06 / 11 / 2017 Division of Taxpayer base between the Central Government and the Government of West Bengal for the entire state of West Bengal has been distributed the list of the taxpayer to be assessed by central & state authorities are given in the CBEC Portal.
➢ Agg ggregat regate e Turnover” - Sec 2(6): ): Aggregate Turnover means the aggregate value of all taxable supplies, exempt supplies, export of goods and/or services and inter-state supplies of a person having the same PAN, to be computed on all India basis excludes taxes, if any charged under the CGST Act, SGST Act, and the IGST Act, as the case may be; Explanation: Aggregate turnover does not include the value of inward supplies on which tax is payable by a person on reverse charge basis and the value of inward supplies. Inputs: ts: ‘Inputs’ are defined under Section 2(59) of the CGST Act as any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business.
Input put tax cred edit: it: Input tax credit means the credit of central tax, state/ union territory tax and integrated tax available to a registered person on the inward supply of goods or services or both, made to him excluding the tax paid on supplies liable to composite tax. It further includes the integrated tax applicable on import of goods and the tax payable under reverse charge mechanism. Exemp mpt Supplies lies: : ‘ Exempt Supplies ’ for this purposes means all supplies other than taxable and zero rated supplies and specifically include the following: Supplies liable to tax under reverse charge mechanism; Transactions in securities; Sale of land; Sale of building ( After Completion) Educat cational ional insti titution tution : Educational Institution means an institution providing services by way of: (i) Preschool education and education up to higher secondary school or equivalent; (ii) Education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) Education as a part of an approved vocational education course.
“ Educatio ducation as a part of cur urric iculu lum m for obtain ainin ing g a quali alifi ficat ation ion recognized by law” Only such educational services are in the exemption list as are related to delivery of education as ‘a part’ of the curriculum that has been prescribed for obtaining a qualification prescribed by law. It is important to understand that to be in the exemption list the service should be delivered as part of curriculum. Conduct of degree courses by colleges, universities or institutions which lead grant of qualifications recognized by law would be covered. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification. An “approved vocational education course” means, - (i) A course run by an industrial training institute or an industrial Training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961(52 of 1961); or (ii) A Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship.
MANUFACTURING UFACTURING SERVICE SE VICE SE SECTOR TOR SECTOR SE TOR INVESTMENT IN PLANT INVESTMENT EQUIPMENTS AND MACHINERY MORE MORE THAN 10 LAKHS SMAL SM ALL THAN 25 LAKHS BUT NOT BUT NOT EXCEEDING 2 EXCEEDING 5 CRORES CRORES INVESTMENT IN PLANT INVESTMENT IN PLANT AND MACHINERY MORE AND MACHINERY MORE MEDIU IUM THAN 5 CRORES BUT NOT THAN 2 CRORES BUT NOT EXCEEDING 10 CRORES EXCEEDING 5 CRORES
) :- SUPPLY Y INCLUDES DES (Sub-se sect ctio ion (1) of Sectio tion 7,CGST T Act) All form of supply ly of g goods or services ices or both such as Sale, Trans ansfer, er, Barter, er, Exchange hange Licenc ence, e, Rental, tal, Lease e or Disposal al made or agreed to be made for a consid siderat eration ion by a person in the course or furtherance of busines iness; import rt of s servic vices es for a consid iderati eration on whether her or not in course or furtherance of busines iness, the activities specified in SCHEDUL HEDULE E I, made or agreed to be made with thout out a cons nsid iderat eration ion; and the activities to be treated as supply of goods or supply of services as referred to in SCHE HEDUL DULE E II.
Turnover Based Registration & Voluntary Registration Aggregate Turnover limits AT > 1crore AT < 10/ 20 lakhs 10 / 20 lakhs < AT < /75 lakhs 1 crore/ 75 Lakhs Normal Normal Composition Registration Registration Registration (Mandatory) Voluntary No Registration Registr ation Special Category states for which the threshold is Rs. 10 lakhs to 75 Lakhs: Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand
(Se Sect ctio ion n No No 13) 13) Time of supply of services shall be the earliest of the following: (a) Date of issue of invoice; or (b) Due date of issue of invoice under Section 31; or (c) Date when the payment entry in relation to supply of services is recorded in books of accounts; or (d) Date on which the payment is credited to suppliers bank account.
PLAC ACE E OF OF SUPPLY PPLY OF OF SERVICE CES WHERE THE LOC OCATION TION OF OF SUPP PPLIER IER OF OF SERVICE CE AND THE LOC OCAT ATION ION OF OF THE RECIPIENT PIENT OF OF SERVIC ICE E IS IN INDIA DIA (SECTION ION 12, I IGST Act ct) Sect ction ion 12(2):For services other than the specified services the place of supply of service would be as under: (a) The service is provided to registered person place of supply shall be location of such person. (b) The service is provided to a person other than registered person location of the service shall be (i) location of the recipient where the address on record exists (ii) location of the supplier of services in other cases
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