Taxmann's GST Mini Ready Reckoner

About the Authors

Preface

TEAM WORK MAKES THE DREAM WORK

The above phrase truly justifies the efforts with which this book “GST - Mini ready reckoner” has been drafted. The book is drafted with a view to provide the readers an understanding of GST and an ease in complying with the GST law. With the simplicity of language used, the sole aim was to deliver a handy book which would provide the basic working knowledge of GST mechanism.

We feel proud to acknowledge that this is our 3rd publication on GST, which would not have been possible without the mutual efforts of our team.

The Vision of this publication was to make even a common man understand the concepts of GST Law and also to meet the requirements of beginners & professionals belonging to this field. The book will take you step by step through the process of GST mechanism starting from the meaning of Goods & Services to the end procedure of payment of tax & penalties under the law.

In this book, we have tried to explain each and every concept to its fullest through the relevant examples,

FAQs, flow charts and diagrams. This method will help you to understand, to implement and to comply with the complicated law of GST.

CA AKHIL SINGLA ADV. PAVAN KUMAR GAUR

Acknowledgements

We thanks to TAXMANN for their efforts in publishing of this book and to CA Ganesh Kumar Garg for his never ending truly inspirational support. Without his guidance and endless support this would remain a dream forever.

My foremost thanks goes to my parents as well as my soul mate, CA Shweta Singla, for her infinite support & understanding. My special thanks to all the team members: Anisha Bhateja, Deepanshu Singla, Madhur Goel, Mayank Singla, Yatendra Dubey, Roshani Neupane and Nitin Garg without whom this endeavour could not have been possible to achieve. May this book gives enough encouragement to all of us to go harder & wish confidence for every milestone yet to conquer.

- CA Akhil Singla

I truly dedicate this book to my parents, my wife and my loving daughters, who have remained by my side in my ups & downs and their constant support and encouragement led me to write this book efficiently and with creativity. The idea of writing this book started with my senior and my inspiration CA Akhil Singla Sir and my hearty thanks to him for this initiative.

- Adv. Pavan Kumar Gaur

GST Compliance Calendar for April 2022 - March 2023

1. FORM GSTR 1/IFF FACILITY

2. FORM GSTR 3B FOR APRIL

3. FORM GSTR 3B FROM MAY ONWARDS

4. FILING OF CMP-08 & GSTR-4 FOR COMPOSITION DEALERS

5. OTHER DUE DATES

Amendments in GST enacted through the Finance Act, 20231

Option to pay tax under the composition scheme for registered persons supplying goods through E-Commerce Operator

Penalty provisions for E-Commerce Operator

ECO allows an unregistered person (other than one who has been exempted by the Govt. to obtain registration) to supply goods/services through him

I-17

ECO allows those persons to carry out inter-state supplies through it who are ineligible to make such inter-state supply [e.g., composition dealer]

ECO fails to provide information on supplies made through it by persons exempted from obtaining GST registration

Input Tax Credit for expenditure related to Corporate Social Responsibility (“CSR”)

Maximum Period defined for filing returns under GST

Decriminalization of certain offences

one crores to two crores

Facilitating the information shared on the GST portal with other systems as may be prescribed by the government

Place of Supply in certain cases

Revision in the definition of the Non-Taxable Online Recipient

Sale of Goods From Custom Bonded Warehouse Before Clearance Shall Attract Reversal of ITC Under Rules 42 & 43

Removal of confusion regarding the availability of exemption from GST registration under Section 23

Notwithstanding anything to the contrary contained in sub-section (1) of section 22 or section 24”.

e.g.,

Clarification on Retrospective Applicability of Exemption to Certain Activities Covered Under Schedule III

Compliance Related Relief Measures*

Amnesty Scheme has been introduced to provide relief to taxpayers regarding late fees for pending GST Returns.

Rationalization of Late fees - The Late Fees for delay in furnishing of Form GSTR-3B and GSTR-1 for prospective tax periods has been capped as mentioned below:

Chargeability of Interest on delayed filing of GSTR-3B for the Tax periods March 2021, April 2021 and May 2021.

Waiver of Late fees on delayed filing of GSTR-3B for the Tax periods March 2021, April 2021 and May 2021 if filed till specified date.

I-23

Other Compliance Related Relaxations

Relaxation in time limit for completion and compliance under GST Law

Chapter-heads

COMPOSITION SCHEME UNDER GST (SECTION 10)

4 Input Tax Credit (ITC)

4.1 DEFINITIONS OF ITC (INPUT TAX CREDIT) & FEW TERMS USED IN THIS CHAPTER

Input Tax Credit: by the Registered Supplier to any Registered Recipient.

a reverse charge basis by the registered recipient of supply on certain specified goods or services such as GTA, Advocate services etc.

b import of goods

For Example: -

Registered Supplier:

Registered Recipient:

4.2 ELIGIBILITY AND CONDITIONS FOR TAKING INPUT TAX CREDIT (ITC) (SECTION 16 READ WITH RULES 36 & 37 OF CGST RULES)

Registered Recipient

Please Note that the any of the above-mentioned documents must contain at least all the following five particulars for availing the ITC:The amount of tax charged, Description of goods or services, Total value of supply, GST No. of the supplier and recipient, Place of supply in case of transaction happened between two different States.

aa This condition is effective from 1st January 2022: -

For Example: goods against an invoice are received in lots or instalments after receiving the last lot.

For example:

ba This condition is effective from 1st October 2022:

c paid the GST charged from the registered recipient to the government

The Amendment effective from 1st October, 2022

d

e filed the requisite GST returns (Kindly refer GST returns chapter for the different types of returns)

f on the capital assets if the depreciation is claimed on the tax part also.

For example:

g composition scheme, cannot claim

h

which are used or intended to be used in relation to his business.

4.2.1 New restriction imposed on the availment of ITC with effect from 9-10-2019 (Rule 36(4) in CGST Rules, 2017)

Eligibility before 9-10-2019: eligible input

Eligibility from 9-10-2019 to 31-12-2019: eligible input

(Eligible ITC existing in 2A + 20% of the eligible ITC existing in 2A) = Provisional ITC maximum allowable in a tax period

Eligibility from 1-1-2020 to 31-12-2020: eligible input

(Eligible ITC existing in 2A + 10% of the eligible ITC existing in 2A) = Provisional ITC maximum allowable in a tax period

Eligibility from 1-1-2021 to 31-12-2021:

Eligible Input:

Please note that the said condition shall apply cumulatively for the period February, March, April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above.

Some conditions of this new rule: -

(Exclusions)

Case Balance Eligible ITC as per books

Eligible ITC reflected in 2A (out of balance left)

Permissible ITC (Eligible ITC in 2A + 20%)

Actual ITC which can be claimed

Eligibility from 01-01-2022:

4.2.2 Time limit or deadlines for availing ITC

Due date of filing of GST Return (return in which ITC is availed i.e. GSTR-3B for regular taxpayers) for the month of September following the end of financial year

Actual Date of furnishing of GST annual return (i.e. GSTR-9) Whichever is earlier………

For Example: - ` a. -

20th Oct 2019 (GSTR-3B)

b.

11th Nov 2019.

Hence, in this case the last date of taking GST input of FY 2018-19 would be 20th Oct 2019. (Earlier of 20th Oct 2019 & 11th Nov 2019)

The most important amendment in the deadlines to avail the ITC (Effective from 1st October, 2022)

30th November following the end of financial year or

Actual Date of furnishing of GST annual return (i.e. GSTR-9) Whichever is earlier………

NOTE NO. 1 i ii

(However with effect from 01/01/2021, the date of the debit note)

Point to be noted

“Please note that via special order, Govt. has extended the last date to avail ITC for the FY 2017-18 to 20th March 2019 instead of 20th Oct 2018.”

Amendments effective from 1st January, 2021

Relaxation notified by the Government during pandemic of COVID-19, for the deadlines already prescribed earlier in the Act & rules in relation to the GST compliances

20th March 2020 to 30th August 2020

shall be extended up to 31st August 2020.

Relaxation for the second wave of COVID-19 pandemic

15th April 2021 to 30th May 2021

shall be extended up to 31st May 2021.

4.2.3 Restriction on the availment of ITC if the payment of invoice is not made within 180 days by the registered recipient (Rule 37 of CGST Rules)

[whether wholly or partly w.e.f. 01st October, 2022]

[or reverse w.e.f. 01st October, 2022]

[proportionate to the Invoice amount not paid to the supplier w.e.f. 01st October, 2022] -

*Here reverse charge inward supplies are not included in goods or services. It means that the condition of 180 days is not applicable in case of inward supplies on which RCM is applicable.

For Example: -

Points to be noted

Interest shall be calculated @ 18% p.a. as per section 50 of the CGST Act, 2017.

Please note that the ITC added to the output tax liability on account of above-mentioned case can be re-claimed once the payment of the invoice is made to the supplier. In this case the time limit as specified in para No. 4.2.2 will not be applicable. “It means that the re-claim of ITC on payment of invoice value to the limit allowed.”

In the above example, if A Ltd. made the payment of ` 1,18,000 (Invoice Value) to B ltd on 25th Nov 2019, the ITC which was added to the output tax liability earlier can be reclaimed in the GST return for the month of Nov 2019 ignoring the deadline to claim ITC i.e. 20th Oct 2019.

The value of supplies made without consideration as specified in Schedule I of the said Act shall be deemed to have been paid for the purpose of this section.

The value of supply on account of any amount that the supplier is liable to pay in relation to such supply but which has been paid by the recipient of the supply and not included in the price actually paid or payable for the supply, in such case also, the value of such supply shall be deemed to have been paid for this section.

GST Mini Ready Reckoner

AUTHOR : AKHIL SINGLA , PAVAN KUMAR GAUR

PUBLISHER : TAXMANN

DATE OF PUBLICATION : APRIL 2023

EDITION : 4th Edition

ISBN NO : 9789357782456

NO. OF PAGES : 344

BINDING TYPE : PAPERBACK

Rs. 895 | USD 40

DESCRIPTION

This book provides a 'basic working knowledge' of the GST mechanism, right from understanding the GST process, to the procedure and payment of tax & penalties under the law.

This book will be helpful for beginners, students & professionals who wish to understand the concepts of GST Law in a simplified manner.

The Present Publication is the 4th Edition and has been amended by the Finance Act 2023. This book is authored by CA Akhil Singla & Adv. Pavan Kumar Gaur, with the noteworthy features:

• [Step-by-Step Guide] for a basic understanding of GST law & compliances

• [Lucid & Simple Language] to explain the entire GST process

• [FAQs, Examples, Flow Charts & Diagrams] are used to aid the learning process

• [GST Compliance Chart] for April 2022 – March 2023

• [Coverage of GST Amendments] made by the Finance Act 2023

The contents of the book are as follows:

• Levy and Collection on Supply

• Nature of Supply

• Time and Value of Supply

• Input Tax Credit (ITC)

• GST Registration & Types of Taxpayers

• Composition Scheme under GST (Section 10)

• Tax Invoice, Credit & Debit Notes

• E-Way Bill

• Accounts & Records

• GST Returns

• Payment of Tax & other Dues

• Zero Rated Supply & Refund

• Assessment and Audit

• Offences & Penalties

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