GST

 MINISTRY OF LAW AND JUSTICE

 (Legislative Department) 

 New Delhi, the 12th of April 2017/Chaitra 22, 1939 (Saka) The following Act of Parliament received the assent of the President on the 12th of April 2017 and is hereby published for general information: — THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 NO. 12 OF 2017 [12th April 2017.] An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows: — CHAPTER I PRELIMINARY 1. Short title, extent and commencement. — (1) This Act may be called the Central Goods and Services Tax Act, 2017. (2) (3) It extends to the whole of India [*****.]1 It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be

CHAPTER V INPUT TAX CREDIT 2019.]36 17. 

 Apportionment of credit and blocked credits. — (1) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business. (2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. (3) The value of exempt supply under sub-section (2) shall be such as may be prescribed and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. [Explanation.— For the purposes of this sub-section, the expression ‗‗value of exempt supply‘‘ shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule;]37 (4) A banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to either comply with the provisions of sub section (2), or avail of, every month, an amount equal to fifty per cent. of the eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse: Provided that the option once exercised shall not be withdrawn during the remaining part of the financial year: Provided further that the restriction of fifty per cent. shall not apply to the tax paid on supplies made by one registered person to another registered person having the same 

CHAPTER V INPUT TAX CREDIT 

 Permanent Account Number. (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub- section (1) of section 18, input tax credit shall not be available in respect of the following, namely:— (a) [motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:— (A) (B) (C) (aa) further supply of such motor vehicles; or transportation of passengers; or imparting training on driving such motor vehicles; vessels and aircraft except when they are used–– (i) (ii) for making the following taxable supplies, namely:— (A) (B) (C) (D) further supply of such vessels or aircraft; or transportation of passengers; or imparting training on navigating such vessels; or imparting training on flying such aircraft; for transportation of goods; (ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): Provided that the input tax credit in respect of such services shall be available— (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; (ii) where received by a taxable person engaged— (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor

CHAPTER V INPUT TAX CREDIT

 vehicles, vessels or aircraft insured by him;]38 (b) (i) [the following supply of goods or services or both— food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; (ii) (iii) membership of a club, health and fitness center; and travel benefits extended to employees on vacation such as leave or home travel concession: Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.]39 

GST RETURNS

 GST RETURNS

Every person registered under the Goods and Services Tax Act, 2017 has to file return, Under the GST law, a normal taxpayer needs to file monthly returns and one annual return. similarly, there are separate returns for taxpayers registered under the composition scheme, a person liable to deduct or collect the tax (TDS/TCS)

All the returns have to be filed through online by using any of the following methods.

1. Through GSTN portal (www.gst.gov.in)

2. Through offline utilities provided by GSTN

3. Through GST Suvidha providers (GSPs)

GSTR 1 (Statement of outward supplies)

In GSTR -1, supplies made to the registered dealers as well as unregistered dealers has to be entered. If inter-state

 is made to an un- registered person, where invoice value is more than Rs. 250000/-, it has to be separately shown. Consolidated amount of Intra-State supplies made to un-registered persons for each rate of tax, exempted supplies, Nill rated supplies, Exports (including deemed exports) and non-GST, Advance, if any, received by the dealer and supplies made through e- commerce operator has to be shown separately. The supplier also has to mention the HSN (Harmonized system of Nomenclature) for Goods and SAC (Accounting code) for Services.

GSTR -2 (Statement of Inward supplies)

In GSTR-2, the details of inward supplies made from registered persons and unregistered persons has to be entered. Details of debit note/credit notes issued by the supplier, details of inward supplies attracting reverse charge has to be entered. Details of goods, Capital goods and services procured from outside India has to be reported. the details of total eligible input tax credit and input tax credit available in the current tax period has to be disclosed. Supples received from composition taxable persons, unregister persons and other exempt/NIL/non- GST supplies has to be reported separately.

GSTR -3 (Complete Return)

Every registered person, other than an Input Service Distributor, a non-resident taxable person, dealers paying tax under composition scheme and persons liable to deduct or collect tax (TDS/TCS) has to furnish a return electronically (the inward and outward supplies of goods or services or both, input tax credit availed, tax payable and tax paid details) on or before 20th of the month succeeding the tax period

    PROCESS OF RETURN FILLING

When the supplier reports the outward suppliers made by him in GSTR -1 and submit the same, the same will be auto populated in the receiver's inward supply in GSTR -2. However, the receiver can modify, delete or include data submitted by the supplier and re- submit the same from 11th to 15th of the month succeeding the said tax period

The supplier can either accept the modification, deletion or addition of data submitted by the recipient or reject the same. He has to do it on or before 17th, but not before 15th day of the month succeeding the tax period. However, the details furnished by the supplier and the return filed by the supplier is final.