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Time, Place and Value of Supply under GST

Time, Place and Value of Supply under GST

time place and value of supply under GST

Under GST, the present approach of levy of tax on the manufacture, provision of taxable offerings, and sale of items shall be replaced via the inspiration of ‘supply’. For this reason, the taxable event under Goods and Service Tax is the ‘give’ of goods or services. Extra underneath ‘Supply’ there are three fundamental standards:

These 3 define the incidence of taxability, i.e whether or not tax will probably be levied or no longer, tax form to be levied i.e SGST, CGST & IGST, the price of taxable deliver of items/services and many others.

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What is Input Tax Credit under GST? And how to claim it?

What is Input Tax Credit under GST? And how to claim it?

What is Input Tax Credit under GST?

The significance of ITC can be effortlessly comprehended when we take the words “information” and ‘expense credit’. Information sources are materials or administrations that a producer buy keeping in mind the end goal to make his item or administrations which is his yield.

Assessment credit implies the duty a maker could decrease while paying his expense on yield.

Information charge credit implies that when a producer pays the assessment on his yield, he can deduct the duty he already paid for the info he acquired. Here, while paying the duty on his yield, he can deduct or assume praise for the expense he paid while obtaining inputs.


A case will make things much clearer. Assume that a ready made piece of clothing firm purchases polyester (contribution) from a provider (of contribution) at Rs 100 and a CGST of Rs 10 is additionally must be paid (CGST rate of 10%). The cost of polyester info will be Rs 110.

Presently the article of clothing maker offers the item at Rs 200 or more assessment (implies his esteem expansion is Rs 100). Envision that the GST rate of ready-made shirt is 12%. Here, the maker must pay an expense of Rs 24. Be that as it may, he has beforehand paid an expense of Rs 10 while buying the contribution of polyester. Consequently, he can guarantee this Rs 10 and needs to pay just the rest of the Rs 14 (of the aggregate Rs 24). The Rs 10 that the producer asserted is the info charge credit.

Conditions for Claiming it :

Just a registered individual will be qualified to assert the info charge credit under the accompanying conditions:

  1. Receipt of goods or services.
  1. Outfitting of an arrival.
  1. Ownership imposes receipt or charge note or record proving installment.
  1. Products conveyed by providing to other individuals against a record of exchange of title of merchandise.
  1. Where the products are getting in gigantic number or amount or portions contribution to credit will be permitted to be benefited when the last parcel or portion is gotten.
  1. No information impose credit will be permitted if devaluation have been asserted on assess part of a capital decent.
  1. In the event that receipt or charge note is gotten later
    • The due of documenting the return for September off next money related year.
    • Or documenting yearly return, whichever is later.
  1. In ability of the provider towards supply of merchandise and ventures in 180 days from the date of receipt input charge credit asserted that it will be added to yield obligation and enthusiasm to and enthusiasm to such assessment included. On the installment to provider include impose credit will again be permitted to be asserted.
  1. Basic credit of info imposes credit utilized usually for
    • Effecting excluded and assessable supplies
    • Business and non-business movement

Documents required for Claiming ITC

  1. A receipt issued by the provider for the supply of products and ventures or both according to the GST law.
  1. The charge notes issued by the provider to the beneficiary if there should be an occurrence of assessable esteem or expense payable specified in the receipt is not as much as the assessable esteem or duty payable on such supply of merchandise and ventures or both.
  1. Bill of passage.
  1. A receipt issued in specific situations like the bill of supply issued rather than impose receipt if the sum is not as much as Rs 200 or in circumstances where the turn around charge is appropriate according to GST law.
  1. A receipt or credit note to be issued by the Input Service Distributor (ISD) according to the receipt governs under the GST.
  1. A Bill of supply issued by the provider of merchandise and enterprises or both according to the receipt manages under the GST.

All the above relevant reports arranged according to the receipt governs under GST are to outfitted at the season of documenting structure GSTR-2.

ITC can’t be guaranteed on the assessment paid on merchandise and ventures or both because of a request for the request raised because of any misrepresentation, stubborn error or concealment of actualities.

Steps for claiming ITC in special circumstances

In the accompanying conditions, certain diverse strides are to be taken after for claiming the ITC:-

  1. An candidate changing from the composition scheme to a normal taxpayer under GST can assert ITC on the info held in stock, capital products, semi-completed and completed merchandise in stock as on the day going before the day on which he ends up noticeably at risk to pay impose as an ordinary citizen.
  1. When an exempt goods or service becomes a taxable supply then the applicant can claim ITC on the input in stock, capital goods, semi-finished or finished goods used for such supply.

When we cannot claim ITC?

  1. You cannot claim an ITC for goods & services used for personal purposes.
  1. If you have acquired goods & services under a contract which results in contraction of immovable property other than plant & machinery.
  1. If you have paid tax on goods & services under the GST composition scheme.
  1. If goods & services have been used to build immovable property other than plant & machinery & such property is not transferred.
  1. Such goods & services which have been used by employees for their personal consumption.
  1. If depreciation has been claimed on the cost of capital goods, then they are not eligible for Input Tax credit.

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Mechanism of ITC : 

Suppose a manufacturer intends to purchase uncooked fabric of his product whose fee is Rs 100. For the sake of comfort, expect tax price of 10 per cent for each present and GST regime. So, the brand would purchase the uncooked substances at Rs 110

The manufacturer would system the raw material, known as value added. If the value added (including profit) is Rs 50. Then the foe turns into Rs 160 and at 10 per cent tax, the new price becomes Rs 176.

The retailer buys the product at Rs 176. The retailer, now, adds the price to the product like tagging, labeling, etc. Suppose the value added through retailer is Rs 20. The rate turns into Rs 215.6 (Rs 196 (170 + 20) + Rs 19.6 @10 percent tax).

So, the client could be paying Rs 215.6 to buy this product. His tax burden could be Rs 45.6 (Rs 10 + Rs 16 + Rs 19.6).

How will GST change this?

Now, below GST which allows claiming input tax credit, the brand buys the raw material on the same Rs 110. However, when he fixes the selling price for his product, he isn’t required to move the legal responsibility of Rs 10 as the VAT to his purchaser. He is not required to pay that quantity once more. He can declare the input tax credit for Rs 10 that he already has paid to the raw material seller.

The company underneath GST would pay Rs 5 as tax at 10 per cent for price addition of Rs 50 at his stage. This reduces the purchase rate of the retailer, who will purchase the product at Rs 165. (Rs 100 + Rs 10 + Rs 50 + Rs 5). Prior, he purchased the identical product at Rs 176.

The worth addition of Rs 20 by means of retailer would not entice a tax of Rs 2. This means that the retailer would repair, the price at Rs 187 (Rs 165 + Rs 20 + Rs 2 at 10 per cent tax) for the final patron, who previously bought the identical product at Rs 215.6.

The tax burden on the customer is Rs 17 underneath the GST as in opposition to Rs 45.6 beneath the present taxation process. The same input tax credit method by way of advantage of being priceless for a business character would be a certain expansion of tax base.

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GST Registration: Who is Liable to get Registered under GST?

GST Registration: Who is Liable to get Registered under GST?

A taxable person under GST is anyone who is registered under GST or required GST Registration. Various criteria’s like turnover, business activity or transaction have been specified in GST Act, which details persons liable to be registered under GST. Further, any person having the registration under Service Tax, VAT or Central Excise on the date of GST coming into force will automatically be considered a taxable person under GST.

GST registration is compulsory for:-

  • Any business whose turnover in a money related year exceeds Rs 20 lakhs (Rs 10 lakhs for North East and slope states). [Note: If your turnover is supply of just exempted goods/administrations which are excluded under the GST, this condition does not apply.]
  • Every individual who is enlisted under a before law (i.e., Excise, VAT, Service Tax and so on.) needs to register under the GST, as well.
  • When a business which is enlisted has been exchanged to somebody/demerged, the transfer might produce an enrollment with results from the date of exchange.
  • Anyone who drives between the state supply of merchandise.
  • Casual assessable individual.
  • Non-Resident assessable individual.
  • Agents of a provider.
  • Those paying duty under the turn around charge component.
  • Input benefit merchant.
  • E-business operator or aggregator.
  • A person who supplies by means of internet business aggregator.
  • The person supplying on the web data and database get to or recovery administrations from a place outside India to a man in India, other than an enrolled assessable individual.

Who is a Casual Taxable Person under GST?

A man who sporadically supplies stock or possibly services in an area where GST is germane anyway he doesn’t have a settled place of business. Such a man will be managed as an agreeable assessable individual as indicated by GST.

Case: A man who has a place of business in Bangalore supplies assessable guiding organizations in Pune where he has no place of business would be managed as a nice assessable individual in Pune.

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Who is a Non-Resident Taxable person under GST?

Right when a non-occupant every so often supplies items/benefits in an area where GST applies, yet he doesn’t have a settled place of business in India. As indicated by GST, he will be managed as a non-occupant assessable person. It resembles above beside the non-resident has no place of business in India.

Who is an Input Service Distributor?

‘Data Service Distributor’ infers an office of the supplier of items/organizations which gets evaluated requesting on receipt of data organizations and issues accuse sales of the true objective of scattering the credit of CGST/SGST/IGST paid on the said organizations to your branch with same PAN. (It must be a supplier of assessable items/organizations having an undefined PAN from that of the working environment implied previously).

In this manner, simply credit on ‘input organizations’ can be passed on and not on input stock or capital items. This will be another thought for assessors who are starting at now not enrolled as a data advantage trader. In any case, this office is optional in nature.

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What is GSTIN (Goods & Services Tax Identification Number)? How to identify it?

What is GSTIN (Goods & Services Tax Identification Number)? How to identify it?

What is GSTIN?

Prior, at whatever point you get a few administrations or products, at that point, the dealer used to give you the bill. In that charge, you, for the most part, discover the TIN (Taxpayer Identification Number). This was one of a kind 11 digit number designated to every business element which registers with the business impose division.

This TIN enrollment was required for all Manufacturer/Traders/Exporters/Dealer.

Presently, after the passage of GST administration, this TIN is currently supplanted with 15 digit GSTIN (Goods and Services Tax Identification Number).

So this 15 digit GSTIN (Goods & Services Tax Identification Number) is only the substitution of TIN of VAT time.

How does GSTIN look like?


GSTIN number is a 15 digit code. The format of GSTIN (Goods & Services Tax Identification Number) is as below ;

  • The first two digits of GSTIN represent the state code.
  • The next ten digits represent PAN number of the business entity.
  • The thirteenth digit will be assigned based on the number of registrations done by the business entity within a state.
  • The fourteenth digit is Z by default, can be allocated in future, based on a number of registrations done by the entity.
  • The last digit is for check code.

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Understanding HSN Codes and SAC Under GST

Understanding HSN Codes and SAC Under GST

What is HSN Code in GST?

HSN stands for Harmonized System of Nomenclature. It is the codification of all the exchanging products into different segments with every section containing warez of comparable nature.

Every product or merchandise exchanged over the world are known by various names indialect contrasts. So also in IT-empowered multinational exchange, a special code is given to each class of tradable ware in view of its inclination and utilization. This arrangement and codification are known as HSN code that you will require to petition for your GST.

What is SAC Code in GST?

If there should arise an occurrence of administrations, for each kind of administration, gaveis given a bound together code for acknowledgement, estimation and tax assessment. These are known as SAC codes. In the present administration impose administration, SAC codes are now characterized by each sort of administration.

HSN / SAC  under GST:

Under Goods and Service Tax, the larger part of merchants should receive two-, four-, or eight-digit HSN codes for their products, contingent upon their turn over the earlier year:

  • Businesses with the turnover of not as much as Rs 1.5 crores won’t be required to utilize HSN codes for their wares.
  • Businesses with turnover between Rs 1.5 crores and Rs 5 crores should be required to utilize two-digit HSN codes for their wares.
  • Businesses with turnover equivalent to Rs 5 crores or more should be required to utilize four-digit HSN codes for their wares.
  • In the instance of imports/sends out, HSN codes of eight digits might be mandatory, as GST must be perfect with worldwide models. You can download the HSN codes and check your HSN code for your business in the GST site.
  • Small merchants under organization plan won’t be required to say HSN codes in their solicitations.
  • HSN will be specified in Invoice and said in the GST expense from points of interest, which will be transferred on the GST entrance.
  • Small organizations under synthesis plan won’t be required to specify HSN codes in their solicitations
  • At the season of enlistment/movement, the business citizen will be required to specify HSN code of the products he manages amid enrollment
  • Services will be named per the Services Accounting Code (SAC). There are Service bookkeeping codes issued by the government for Service charge. This is required to continue as before in GST administration also.


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Types of GST Return Forms, Format and their Due Dates

Types of GST Return Forms, Format and their Due Dates

As per the Goods and service tax regime, every registered taxpayer is required to file three returns in a month and one annual return.  Every taxpayer including the traders, manufacturers, resellers are required to file the returns. The Government has made an attempt to get rid of the tax evasion practices that existed in the previous taxation regime. Every return will be filed electronically and details of the returns filed by the supplier of goods and services and the recipient of goods and services will be matched. Thus goods and service tax regime appear to be much more effective taxation regime.

Types of GST Return Filing Forms

  1. Regular dealer
  2. Composite dealer
  3. Foreign non-resident taxpayer
  4. Input service distributor
  5. Tax deductor
  6. E-commerce operator
  7. Government department & UN bodies

Types of taxpayers and the relevant GST Return Filing Forms that need to be filed by them:

Regular Dealer

GSTR 1 Outward sales by business. MONTHLY 10th of succeeding month
GSTR 2A Auto-populated details of inward supplies made available to the recipient. MONTHLY 11th of succeeding month
GSTR 2 Purchases made by Business. MONTHLY 15th of succeeding month
GSTR 1A Details of outward supplies as added, corrected or deleted by the recipient. MONTHLY 20th of succeeding month
GSTR 3 GST monthly return along with the payment of the amount of tax. MONTHLY 20th of succeeding month
GST ITC 1 Communication of acceptance, discrepancy or duplication of input tax credit claim. MONTHLY
GSTR 3A Notice to a registered taxable person who fails to furnish return under section 27 and 31.    ─
GSTR 9 GST Annual Return. ANNUALLY 31st Dec of next financial year


Composite Dealer

GSTR 4A Details of inward supplies made available to the recipient registered under composition scheme. QUARTERLY

GSTR 4 Quarterly return for GST. QUARTERLY 18th of succeeding month
GSTR 9A Consolidated details of quarterly returns filed along with tax payment details. ANNUALY 31st December of next financial year


Foreign Non-Resident Taxpayer

GSTR 5 Provisions of return filing for Non-Resident Foreign Taxpayers MONTHLY 20th of succeeding month or within 7 days after the expiry of registration


Input Service Distributor

GSTR 6 Every Input Service Distributor is required to furnish details of invoices in form GSTR 6. MONTHLY 13th of succeeding month.
GSTR 6A GSTR 6A will give the auto drafted details of the supplies made by Input Service Distributor to the recipients. MONTHLY 11th of succeeding month.


Tax Deductor

GSTR 7 Furnish details of imports, outward supplies, ITC availed, tax paid, and closing stock MONTHLY 10th of succeeding month.
GSTR 7A It’s the deduction certificate to be issued on monthly basis to the deductee. MONTHLY TDS Certificate to be made available for the download.


E-commerce Operator

GSTR 8 Details of supplies effected through e-commerce operator and the amount of tax collected on supplies MONTHLY 10th of succeeding month


Government Department & UN Bodies

GSTR 11 GST Inward Supplies Statement for UIN MONTHLY 28th of succeeding month
GST Return Filing

GST Return Filing

Under GST, a standard citizen needs to outfit month to month returns and one year return. There are separate returns for citizens under the arrangement conspire, non-inhabitant citizen, citizen enlisted as an “information benefit merchant”, a man obligated to deduct or gather the assessment (TDS/TCS) and a man allowed Unique Identification Number. So citizens are required to document returns contingent upon the exercises they embrace.

Not with standing, for the initial two months, the arrival recording process has been improved by requiring all citizens to give only the outline points of interest in frame GSTR-3B while the structures for outward and internal supplies—GSTR-1 and GSTR-2, individually—can be documented 25 days after they are first due.

gst return filing


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Calculation of GST

Calculation of GST

GST Tax Calculation Formula

All one needs to do is input the net amount of a good or service and the applicable GST rate (5%, 12%, 18% or 28%) into the tool. Click on the ‘Calculate’ button and instantly get the gross price of the good or service. GST calculation is represented by the below example:

A goods or service is sold at the rate of Rs.500. GST rate is 18%. Gross amount of the goods or service = 500 + [500 x (18/100)] = Rs.590

Formula for GST calculation:

  • Add GST:

GST Amount = (Original Cost x GST%)/100

Net Price = Original Cost + GST Amount

  • Remove GST:

GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}]

Net Price = Original Cost – GST Amount


What impact GST has on the pricing of products as compared to the previous scenario?

In the above illustration, you can take note of that the expense paid discounted inside state can be guarantee against assess paid marked down outside the state in GST framework, which is not in introduce charge framework.

The credit of CGST can’t be assumed against SGST and acknowledgement of SGST can’t be taken against CGST yet the two credits can be taken against IGST.

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Benefits of GST (Goods & Services Tax)

Benefits of GST (Goods & Services Tax)


The GST (Goods & Services Tax)  is relied upon to give following advantages:-

  Elimination of Multiple Taxes

 The greatest advantage of the Goods & Services Tax is a disposal of various aberrant expenses. All expenses that as of now exist won’t be in the picture. This implies current assessments like extract, octroi, deals charge, CENVAT, Service imposes, turnover charge and so on won’t be relevant and all that will fall under a basic expense called as GST.

  Saving More Money

For a typical man, GST materialness implies the disposal of twofold charging in the framework. This will diminish the cost of products and enterprises and help normal man for sparing more cash.

It is normal that the cost of FMCG items, little autos, silver screen tickets, electrical wires and so on is required to lessen.

  Ease of business

 GST will bring one nation, one assessment idea. This will counteract unfortunate rivalry among states. It will be useful to do interstate business

   Easy Tax Filing and Documentation

 For a representative, GST will be a shelter. No numerous assessments imply consistence and documentation will be simple. Return recording, impose instalment, and a discount process will simple and bother free.

  Cascading Effect lessening

GST will be material at all phases from assembling to utilization. GST will give charge credit advantage at each phase in the chain. Today at each stage edge is included and impose is paid entire sum, in Goods & Services Tax you will have charge credit advantage and expense will be paid on edge sum as it were.

It will lessen falling impact of duty consequently diminishing the expense of the item.

   More Employment

As GST will lessen the cost of item it is normal that request of an item will increment and to take care of the demand, supply needs to go up. The necessity of more supply will be tended to by just expanding work.

  Increase in GDP

 As request will develop normally generation will develop and subsequently it will build a total national output. It is assessed that GDP will develop by 1-2% because of the GST.

  Reduction in Tax Evasion

 GST is a solitary assessment which will incorporate different expenses, making the framework proficient with next to no odds of defilement and Tax Evasion.

  More Competitive Product

As GST will address the following impact of expense, between state charge, high coordinations cost it will make fabricating more aggressive. This will convey favourable position to agent and buyer.

  Increase in Revenue

 GST will supplant every one of the 17 roundabout assessments with single duty. The increment in item request will eventually expand impose income for state and focal government.

Products and administration assess is a help for the Indian economy and the regular man. It is an appreciated stride taken by the administration.


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What is CGST, SGST and IGST ?

What is CGST, SGST and IGST ?

There are three components of GST tax law Named CGST, SGST and IGST. CGST and SGST are applicable within the state while IGST is applicable in the course of interstate trading.


Since GST subsumed both circuitous assessments of focal government (extract obligation, benefit charges, customary obligation, and so on) and state governments (VAT, Luxury impose, and so forth.),  both the administration now rely upon GST for their backhanded expense income. Accordingly the GST rate is made out of two rates, one of CGST and one of SGST.

Along these lines, while making an interstate deal (i.e., deal inside a similar state), CGST gathered will go to the focal government and SGST gathered will go the individual state government in which deal is made.

For Example: – A merchant in Maharashtra pitches products to the shopper worth Rs. 10,000. The GST rate is 18%, including CGST rate of 9% and SGST rate of 9%. In such a case the merchant will gather Rs. 1800, Rs. 900 will go to the focal government and Rs. 900 will go to the Maharashtra government.


GST is an utilization based duty, i.e.; the assessment ought to be gotten by the state in which the products or administration is devoured not by the state in which such merchandise are fabricated.

IGST is intended to guarantee a consistent stream of info assess credit starting with one state then onto the next. It is outlined so a state doesn’t need to manage each other state to settle the expense sums. A state needs to manage just Central government.

Consequently, if between state deals (i.e., deal starting with one state, then onto the next state) is made then the vendor will charge IGST set up of CGST + SGST.

For example: – A dealer in Maharashtra sells goods to its dealer in Rajasthan worth Rs. 1,00,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%. In such a case the dealer has to charge Rs. 18,000 as IGST.

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