1 Chapter scheme:

Chapter I – This chapter consists of Introduction, Need of Study, Objectives of the study, Scope of the
study, Limitation of the study and Research Methodology.

Chapter II – This chapter is related theoretical information like introduction, definition, Types of GST,
Liable to Pay GST, When GST payable?, Composition Scheme, Registration, Tax Invoice, Credit &
Debit Note, E-way Bill, Payment of Tax& Filling of Return, Returns required to file.

Chapter III - This chapter consists of information about Company Who files Return, History of the
Company, mission and vision.

Chapter IV – The fourth chapter is the presentation of data in consist related to the Gst filling data for 5
Years.

Chapter V – The fifth consists of suggestions and conclusion about project report work.
THEROTICAL BACKGROUND
2.1 Introduction to GST
BRIEF HISTORY ABOUT GST IN INDIA
The idea of moving towards the GST was first mooted by the then Union Finance Minister Shri
P. Chidambaram in his Budget for 2006-07. Initially, it was proposed that GST would be introduced by 1st
April, 2010.The Empowered Committee of State Finance Ministers (EC) which had formulated the design
of State VAT was requested to come up with a roadmap and structure for the GST. Joint Working Groups of
officials having representation of the States as well as the Centre were set up to
examine various aspects of the GST and draw up reports specifically on exemptions and thresholds, taxation
of services and taxation of inter-State supplies. Based on discussions with in and between it and the Central
Government, the EC released its First Discussion Paper (FDP) on the GST in November, 2009. This spells out
the features of the proposed GST and has formed the basis for discussion between the Centre and the States
Since then, discussion being held between Central and State Government to consensus on certain conflicting
issues. However, till today no final agreement has been made between Central and State Government.
However, Central Government in view of implementing GST from 1st April, 2016 all over India by agreeing
all the States by making certain modifications in proposed GST
What is GST?
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services at national
level. The GST is expected to replace all the indirect taxes in India. At the centre's level, GST will replace
central excise duty, service tax and customs duties. At the state level, the GST will replace State VAT.
Integration of goods and services taxation would give India a world class tax system and improve tax
collections. It would end the long standing distortions of differential treatments of manufacturing and service
sector.
Why GST?
GST is similar to VAT in terms of the value-added approach. The question that comes to mind is-India
already has VAT then why should someone go for GST? Moreover, it seems to be very complicated and a
difficult exercise, then what are the reasons? The key problems of current taxation system for Goods and
Service in India are as follows:
Unique features of GST as implemented in India
1.Concept of IGST is a unique idea goods move with taxes nowhere else tried in world it is a game changer
2.GST on supply and not on manufacture or sale. This changes entire structure of tax
3.Dual structure of GST
4.Uniform law on goods and services all over India great achievement
Overall structure of Goods and Services Tax
1.Goods and Services Tax (GST) will be on 'supply' of goods or services or both, in India w.e.f. 1-7-2017
(including Jammu and Kashmir w.e.f. 8-7-2017). Area upto 200 nautical miles inside sea is India' for
purpose of GST.
2.For supplies within the State or Union Territory (a) Central tax (Central GST ie. CGST) will be payable to
Central Government and (b) State tax (State GST SGST) or Union Territory Tax (UTGST-Union Territory
GST) will be payable to State Government or Union Territory (as applicable). Area upto 12 nautical miles
inside sea is part of State or Union territory which is nearest.
3.For inter-State supplies (supply from one State or Union Territory to another State or Union Territory),
Integrated tax (Integrated GST ie. IGST) will be payable to Central Government. IGST is payable if supply
is beyond 12 nautical miles but upto 200 nautical miles. However, there is no IGST on high seas sale ie sale
beyond 200 nautical miles or sale before clearance of goods from customs bonded warehouse.
4.In addition, GST Compensation Cess will be payable on few items like pan masala, tobacco products, coal,
aerated waters and motor cars.
5.Basic customs duty, Social Welfare Cess, IGST and GST Compensation Cess (on goods where
Compensation Cess is applicable) will be payable on import of goods.
6.Distinction between goods and services has been reduced. This has reduced problem of dual taxation
which was faced by construction industry, works contract, food related services (like restaurants, canteens
and outdoor catering), leasing and hire services and software services.
7.GST is based on Vat concept of allowing input tax credit of tax paid on inputs, input services and capital
goods, for payment of output tax. This will avoid cascading effect of taxes.
8.GST is consumption based tax ie. normally, tax is payable in the s consumption State where goods or
services or both are finally consumed.
9.The rates of IGST-Nil, 0.25%, 3%, 5%, 12%, 18% and 28%, In case of supply within State, CGST rate
will be 50% of IGST Rates and SGST/UTGST rate for supply within the State or Union Territory will be
50% of IGST rates. Thus, CGST plus SGST/UTGST rates will be equal to IGST Rate.
10.Though tax is payable to both Central Government and State Government/Union Territory, control will
be exercised either by State Government/Union Territory Authorities or Central Government Authorities.
This will avoid dual control.
11.Central Excise duty will continue on petroleum products i.e. petroleum crude, high speed diesel, motor
spirit (commonly known as petrol), natural gas and aviation turbine fuel. These products are out of GST at
present and may be brought under GST later.
12.Tobacco products will be subject to excise duty plus GST.
13. Alcoholic liquor will be subject to State duty. This product is out of GST.
14.GST Council (Goods and Services Tax Council) is Apex Constitutional body which will determine policies
of GST.

Note-The terms used in CGST, SGST, UTGST and IGST Acts are 'Central Tax', 'State Tax', 'Union Territory
Tax' and Integrated Tax'. However, generally, for sake of brevity, the terms used are CGST, SGST, UTGST
and IGST respectively.

2.2 WHAT ARE THE COMPONENTS OF GST? TYPES OF GST

There are mainly 3 applicable taxes under GST:CGST, SGST & IGST.
CGST:
Collected by the Central Government on an intra-state sale (Eg: Within Karnataka)
SGST:
Collected by the State Government on an intra-state sale (Eg: Within Karnataka)
IGST:
Collected by the Central Government for inter-state sale (Eg: Karnataka to Tamil Nadu).
UTGST:

Explained as follow with few more components:

Nature of IGST
◆ IGST (Integrated GST) is payable on supply of goods or services or IGST is intermediary tax mainly on
B2B (Business to Business) transactions. It is not envisaged as final tax as input tax credit of IGST will be
available to recipient in another State.
◆ If IGST is paid on B2C transaction (Business to Customer), the State where goods or services or both are
consumed will get their share of SGST.
◆.IGST Rate is double the CGST rate and will be uniform all over India.
◆.GST will ensure that goods or services or both and taxes move together across the country, which will
ensure seamless and tax free movement of goods and services within the country.
◆.In view of IGST, there will be no need to claim refund of input taxes, except in case of physical exports and
supplies to SEZ Refund is also permissible in case of inverted duty structure Le tax on output is less than tax
payable on inputs and input goods (except in few cases).
◆.Exports and supplies to Special Economic Zones (SEZ) are zero rated ie. input tax credit will be available
even if tax is not paid on output. This will make exports and supplies to SEZ really tax free,
◆ Supply from SEZ to DTA unit will be treated as 'import' by DTA unit and customs duty will be payable.
◆.IGST, concept of 'supply' instead of sales and removal of distinction between goods and services are game
changers in GST.
◆ IGST is a unique concept nowhere else been tried in the world.

Overview of IGST Act

◆ IGST Act is small but very important Act [It can be compared with Central Sales Tax Act].
◆ Integrated tax' means the integrated goods and services tax levied under Integrated Goods and Services Tax
Act section 2(12) of IGST Act [In this write-up, the tax is termed as IGST and Act is termed as IGST Act for
sake of brevity].
◆ The IGST Act carries important definitions relating to export and import of goods, export and import of
services, location of supplier and recipient of services, taxable territory and zero rated supply [section 2 of
IGST Act].
◆ As per Article 246A(2) of the Constitution of India as amended w.e.f. 16-9-2016, Parliament will have
exclusive powers to make laws with respect of goods and services tax where the supply of goods, or of
services, or both takes place in the course of inter- State trade or commerce. Under this constitutional
authority, section 5(1) of IGST Act imposes tax on inter-State supply.
◆ Section 5(3) of IGST Act make provisions in respect of reverse charge in case of notified services. Section
5(4) of IGST Act provides for reverse charge when supplies are received from specified persons in specified
cases.
◆ Parliament may, by law, formulate principles for determining (a) place of supply of goods or services (b)
when supply of goods or services or both are in the course of inter-State trade or commerce Article 269A(2)
of the Constitution of India inserted w.e.f. 16-9- 2016. Under this constitutional authority (a) Sections 7, 8 and
9 of IGST Act define inter-State and intra-State supply (b) Sections 10 to 13 of IGST Act make provisions of
place of supply.
◆IGST and GST Compensation Cess payable on supply of goods by a retail outlet established in the
departure area of an international airport, beyond the immigration counters, is exempted w.e.f. 1-7- 2019. The
retail outlets are entitled to claim refund of Input Tax Credit.
Section 16 of IGST Act defines exports and supplies to SEZ as 'zero rated supply'.
◆ As per Article 269A(1) of Constitution of India (inserted w.e.f. 16-9-2016), IGST collected by Union will
be apportioned between Union and States as per law made by Parliament on the recommendation of GST
Council. Sections 17 and 18 of IGST Act make provisions for such apportionment under this constitutional
authority.
◆ Section 20 of IGST Act provides that provisions of CGST Act shall mutatis mutandis apply to IGST Act.
CGST Compensation Cess
◆Some States, particularly producing States like Maharashtra, Gujarat, Tamil Nadu, Punjab, Karnataka may
lose due to abolition of Central Sales Tax. tax revenue
◆Such States will be paid compensation by Central Government for five years.
◆To enable Central Government to pay the compensation, a GST Compensation Cess has been levied on
supply of goods or services or both within India and also on import of goods and services.
◆ Sections 3 to 7 of GST Cess Act provide for mode of calculating compensation payable to States.
◆ Input Tax Credit of GST Compensation Cess will be available, but the input tax credit in respect of GST
Compensation Cess can be utilized only towards payment of GST Compensation Cess.
◆CGST Rules, 2017 will apply to GST Compensation Cess mutatis mutandis apply [except rules 3 to 7 and
117 to 120] - Notification No. 2/2017-Compensation Cess, dated 1-7-2017.
◆ GST Compensation Cess will continue upto 31-3-2026.

State GST Act (SGST)

◆ Each State Government has passed its own State GST Act to impose SGST on supply of goods or services
or both within the State.
◆ These State GST Acts are practically copies of CGST Act. The definitions and provisions are identical.
There are some variations in transitory provisions and provisions relating to input tax credit, to adapt CGST
Act to SGST Act.
◆ Central Sales Tax is continuing to be applicable to petroleum products. In case of procurement of these
products, C form can be issued even if the final product is covered under GST.

Union Territories GST Act (UTGST)

◆In case of Union Territories which do not have legislature, UTGST (Union Territory Goods and Services
Tax) will be payable. Parliament has passed Union Territory Goods and Services Act, 2017 [UTGST Act] for
this purposes.
◆ The Union Territories to which UTGST Act applies are as follows -(a) Andaman and Nicobar Islands (b)
Lakshadweep (c) Dadra and Nagar Haveli, Daman and Diu (d) Chandigarh; and (e) other territory [as
amended w.e.f. 26-1-2020 vide Regulations 1 and 2 of 2020 dated 24-1-2020, issued by President of India
[Also amended vide Finance Act, 2020].
◆ For the purposes of CGST Act and UTGST Act, each of the territories specified above shall be considered
to be a separate Union territory. Thus, IGST will be payable when supply is made from one Union Territory to
another. ◆ Delhi, Pondicherry and Jammu and Kashmir have their own legislatures and they have their own
GST Act.
◆ "Other territory" includes territories other than those comprising in a State and those referred above section
2(81) of CGST Act. This will cover Exclusive Economic Zone (except territorial waters). Thus, 'other
territory' means area inside sea between 12 nautical miles to 200 nautical miles. UTGST will apply for supply
of goods and services within that area. However, it is not possible to obtain GST registration there, as it is not
possible to have 'fixed establishment' at that place.

2.3 Who is liable to register for GST

◆ Person whose supplies of goods or services or both are more than Rs. twenty lakhs per annum is required to
pay GST. In case of North Eastern States, Jammu and Kashmir, Himachal Pradesh and Uttarakhand, this limit
is Rs. ten lakhs.
◆ He is required to register with GST Authorities. He has to apply electronically and submit his PAN details,
address proof, details of constitution etc.
◆ Persons whose turnover is less than Rs. 150 lakhs per annum can opt to pay tax under composition scheme.
The rates are - CGST +SGST/UTGST 1% for manufacturers and traders and 5% for restaurants. They cannot
make inter-State supplies of goods but can make inter-State supply of services.
◆ Once registered, GST is payable even if value of turnover is less than 20 lakhs (or 10 lakhs in case of some
States).

2.4 When the GST is payable - Time of Supply

◆ The provision of 'Time of Supply' determine when tax becomes payable and what would be rate at which
GST is payable.
◆ Generally, GST is payable when supply is made or when payment is received, whichever is earlier.
◆ In case of services, GST is payable when advance received from recipient, even if supply is to be made
later. However, GST is not payable on 'adjustable deposit'. Receipt voucher is required to be issued. The
recipient of service cannot take ITC, even if supplier has paid the tax on receipt of advance.
◆ GST is payable on monthly basis by specified date of following month. Monthly return is also required to
be filed on same day.
◆ Taxable persons under composition scheme have to pay tax quarterly and file return yearly.

2.5 Composition scheme

◆ GST is very procedure oriented law. Many compliances are required, which are difficult for small taxable
persons. For them, a simplified scheme known as composition scheme has been devised.
◆ The scheme is available to those whose aggregate turnover of supply of goods in the previous financial
year does not exceed Rs. 1.50 lakhs. In case of some States, the limit is lower.
◆ In case of services (other than food supply), similar scheme is available w.e.f. 1-4-2019 to suppliers of
services with aggregate turnover upto Rs. 50 lakhs per annum. They have to pay GST @ 6% [CGST 3% plus
SGST/UTGST 3%] (without ITC).
◆ In case of supply of food in restaurant, canteen or eating joints, the rate is CGST-2.5%, SGST/UTGST-
2.5%. Total 5% (without ITC).
◆ The scheme is optional.
◆ The option lapses on the day his aggregate turnover exceeds the specified limit in the current financial year
- Section 10(3) of CGST Act.
◆ If the aggregate turnover in a financial year exceeds Rs. 150 lakhs (lower limit in specified States), the
composition scheme is not available in next financial year.
◆ The taxable person opting for composition scheme will have to pay a fixed percentage of gross turnover as
tax.
◆ The CGST rates of composition scheme on goods are as follows [section 10(1) of CGST Act and rule 7 of
CGST Rules, 2017] - (a) 0.5% of turnover in State or Union territory in case of a manufacturer (b) 0.5% of
turnover in State or Union Territory in case of other suppliers [ie. traders) (without ITC).
◆ There will be equal SGST/UTGST. Thus, total tax payable will be double the aforesaid rates. IGST rates
have not been specified as person under composition scheme cannot make any inter-State supply.
◆ If a taxable person is supplying both taxable and exempt goods, it may be advisable to deal in exempted
goods under separate partnership firm.

◆ Taxable persons whose all outward supplies of goods are within the State only will be eligible for the
simplified scheme. He should not be engaged in making any inter-State outward supplies of goods.
◆ Taxable persons who opt for composition scheme will not be allowed to charge GST in their invoice. They
cannot show GST in their invoice. They are not entitled to any input tax credit. [section10(4) of CGST Act] •
The person exercising the option to pay tax under section 10 shall comply with the conditions specified in rule
5(1) of CGST Rules, 2017.
◆ A registered person supplying exempted goods or services or both or paying tax under the provisions of
section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner
as may be prescribed - section 31(3)(c) of CGST Act. If a taxable person obtains multiple registrations within
a State or Union Territory, each such unit will be treated as separate taxable person for purpose of GST.
2.6 Registration under GST by New Taxable Persons
◆ Single PAN based registration and single return for SGST/UTGST, IGST and CGST.
◆ There can be single registration for each State even if they have multiple units/branches/divisions within
one State. However, separate registrations can be obtained even if branches or divisions are within the same
State.
◆ Within one State or Union Territory, a taxable person can have more than one registrations. However, in
that case, GST will be payable when goods or services are supplied from one branch or division.
◆ There will be separate registration in each State where the taxable person has trading units/manufacturing
units/service supplying units.
◆ Every person applying for registration shall, before applying for registration, declare his Permanent
Account Number, State or Union territory in Part A of FORM GST REG-01 on the common portal Rule 8(1)
of CGST Rules amended on 26-12-2022.
◆The PAN shall be validated online by the Common Portal from the database maintained by CBDT and shall
also be verified through separate one-time passwords sent to the mobile number and e-mail address linked to
the Permanent Account Number. - Rule 8(2) of CGST Rules. The words in italics inserted w.e.f. 26-12-2022.
◆ Every application made under rule 8(4) shall be followed by biometric-based Aadhaar authentication and
taking photograph of the applicant at the Facilitation Centers notified by the Commissioner - Rule 8(4A) of
CGST Rules as inserted on 26-12- 2022. At present, this provision applies to Gujarat State only.
◆ On receipt of an application under rule 8(4) plication or rule 8(44) of CGST Rules, an acknowledgement
shall be issued electronically to the applicant in form GST REG-02-Rule 8(5) of CGST Rules amended on 26-
12-2022. [Rule 8(4A) of CGST Rule applies only to Gujarat State at present].
◆ Then specified documents should be submitted electronically.
◆ Registration will be approved within seven working days, if documents are in order. Otherwise, notice may
be issued in Form GST REG-03 seeking clarifications
◆ Clarifications shall be given in Form GST REG-04.
◆Proper Officer can reject application electronically in Form GST REG-05.
◆ If no action within seven working days by proper officer, registration shall be deemed to be granted.
◆ Certificate of Registration in Form GST REG-06.
◆ Aadhaar verification is mandatory for GST registration, though there are some relaxations in specified
cases.
◆ Application for registration for TDS in Form GST REG-07.
◆ Non-resident taxable person can apply in Form GST REG-09.
◆ Application for amendment in registration certificate in Form GST REG-13.
◆ Application for cancellation of registration in Form GST REG-14.
2.7Tax invoice, credit note and debit note

◆Every Taxable person supplying goods or services or both is required to issue 'tax invoice'. The Tax Invoice
shall contain details as specified in rule 46 of CGST Rules, 2017.
◆Tax Invoice should have unique consecutive serial number in one or multiple series, including alphabets or
numericals or special character hyphen or dash or slash.
◆Tax Invoice should contain HSN Code of goods or services classification code in respect of tax invoices of
taxable persons having turnover beyond specified limits.
◆ HSN code at four digit level is required for taxpayers having aggregate turnover in preceding year upto Rs.
5 crore. However, if their sale is to unregistered person, HSN code is not required. In case of taxable persons
having annual turnover more than Rs. 5 crores, HSN code at six digits level is required [even if sale to
unregistered person]
◆ E-invoice has been made mandatory w.e.f. 1-10-2022 for registered persons whose aggregate turnover in a
financial year exceeds Rs. 10 (ten) crores - Notification 13/2020-CT, dated 21-3-2020 as amended w.e.f. 1-10-
2022. E-invoice is required for (a) tax invoice [B2B not required for self invoice under RCM] (b) Revised tax
invoice, Credit Note and Debit note (c) Consolidated tax invoice by insurer, banking company or Financial
Institution (d) Export Invoice. E-invoice is not required for supplies by registered person to unregistered
person.
◆ Invoice for export should contain clear endorsement with required details.
◆ If recipient is unregistered person and does not require invoice, a consolidated invoice may be prepared at
close of day in respect of all supplies proviso to rule 46 of CGST Rules, 2017.
◆ Tax Invoice for goods shall be in triplicate with specified marking.
◆Tax Invoice for supply services shall be issued within 30 days of supply of services. In case of banking
company, NBFC or FI invoice can be issued within 45 days.
◆In case of banking company, FI, NBFC or telecom operator providing service to their own branch in another
State, they may issue invoice on quarterly basis.
◆ In case of exempt goods or services or when tax is paid under composition scheme, the supplier should
issue Bill of Supply instead of Tax Invoice with details specified in rule 49 of CGST Rules.
◆When Advance is received, Receipt Voucher should be issued with details as specified in rule 5 of Invoice
rules, Such receipt voucher is not required if supply is made within same taxable period (month or quarter as
applicable). At that stage, GST is payable but recipient cannot avail input tax credit as goods or services or
both have not been received by him.
◆ Supplementary Invoice, Debit Note or Credit Note should be serially numbered and shall contain details as
specified in rule 53 of CGST Rules, 2017. Debit Note and Credit Note can be issued only by supplier and not
by recipient.
◆ Invoice of Input Service Distributor shall contain details as specified in rule 54 of CGST Rules, 2017.
◆Provisions of e-way bill for transport of goods has been made.

E-way bill
◆The provisions apply when value of consignment exceeds Rs. 50,000 in case of inter-State transport. In case
of transport of goods within State, some States have granted exemption from e-way bill provisions if value of
goods does not exceed Rs. one lakh.
◆ However, in following cases, e-way bill should be generated even if value of consignment is below Rs.
50,000 - (a) Sending material inter-State for job work (b) handicraft goods transported inter- State under
exemption if turnover of person below 20/10 lakhs [It is really too much for such small persons to know,
understand and follow these procedures].
◆Consignor who is registered is required to upload information in Part A of Form GST EWB-01,
electronically, before movement of goods commences.
◆ If consignor is not registered but consignee is registered, the consignee is required to upload the details
electronically [rule 138(1) of CGST Rules].
◆ If goods are transported in own conveyance or by air, railways or vessel, the consignor/consignee is also
required to generate e-way bill Form GST EWB-01 electronically on the common portal after furnishing
information in Part B of Form GST EWB-01 [rule 138(2) of CGST Rules]
◆If goods are transported by road by transporter, the consignor/ consignee shall furnish information relating
to transporter in Part B of Form GST EWB-01. Transporter will generate the e-way bill [rule 138(3) of CGST
Rules]
◆On submission of such information, a unique e-way bill number (EBN) will be generated by system.
◆If goods are transshipped from one conveyance to other, details have to be submitted in Form GST EWB-01
[rule 138(5) of CGST Rules]
◆If consignor or consignee does not generate any form, transporter himself must generate Form GST EWB-
01 [rule 138(7) of CGST Rules]
◆An e-way bill or a consolidated e-way bill generated shall be valid as follows, for normal cargo - (1) Upto
200 Km - one day (2) One day for every 200 km or part after first 200 km [rule 138(10) of CGST Rules
amended on 1-1-2021. Earlier, the validity period was 100 km per day]
◆ Exemptions have been provided from provisions of e-way bill in case of transport of exempted goods,
goods under customs clearance, LPG, kerosene, pearls, diamonds, jewellery, currency, coral and household
effects.
◆ Road checks may be made and reporting of road checks has been provided [rule 138C of CGST Rules].
◆ Goods and conveyance can be detained and seized if goods are being transported in contravention of
provisions of GST Act and Rules [may be any contravention, not merely relating to e-way bill]
◆ If goods are taxable, penalty equal to 200% of tax payable will be imposed. In case of exempted goods,
penalty equal to 2% of value of goods or Rs. 25,000 whichever is lower - section 129(1)(a) of CGST Act.
◆E-way bill cannot be generated if two consecutive returns were not filed by supplier or registration of
supplier was suspended.

2.8 Payment of tax and filing of returns

◆GST is payable by taxable person on self-assessment basis.
◆Taxable person can take help of GST Practitioner in filing returns,etc.
◆Electronic payment of taxes under different heads. Payment by Internet Banking, Credit/Debit Card, NEFT
or RTGS. Over the counter payment up to Rs.10,000 can be made by challan generated in Form GST PMT-
06.
◆ Record of cash deposited in 'Electronic Cash Ledger' in Form GST PMT-05.
◆ Record of input tax credit in Electronic Credit Ledger' in Form GST PMT-02.
◆ Tax Liability Register shall be in Form GST PMT-01.
◆ Invoice-wise details of outward supplies to be uploaded by supplier in Form GSTR-1.
◆ These details will be auto-populated in Form GSTR-2A of the recipient.
◆ Payment of tax on self-assessment basis and filing of return by 20th in Form GSTR-3B.
◆If there is difference between tax liability as shown in GSTR-1 and as shown in GSTR-3B return beyond a
specified percentage, query will be raised and if payment is not made or satisfactory clarification for the
difference is not given, the tax amount will be recovered as per provisions of rule 88C of CGST Rules,
inserted w.e.f. 26-12- 2022.
◆Interest is payable for delayed payment of tax @ 18% - section 50(1) of CGST and SGST Act read with
Notification Nos. 13/2017- CT, dated 28-6-2017 and 6/2017-IT, dated 28-6-2017.
◆ Dealers paying tax under composition scheme to file annual return in Form GSTR-4.
◆Later return can be filed only when earlier returns are filed.
◆ If supplier does not pay entire tax on his outward supplies fully within specified period, credit taken by
recipient is reversed with interest.
◆Payments made in Electronic Cash Ledger will first be applied to earlier dues of tax, interest, late fee and
penalty and then to current dues.
◆Unmatched invoices can be adjusted up to return of following September or due date of filing Annual
return.
 ◆Annual Return to be filed by 31st December in following year, in Form GSTR-9.
◆GSTR-9C reconciliation statement with annual financial statements is to be submitted before 31st
December. It should be self certified.
◆GSTR-9B Annual Return by e-commerce operator who are required to collect TCS under section 52.

2.9 Input Tax Credit in respect of supply of taxable as well as exempt supplies of goods and services
◆ If taxable person supplies both taxable goods or services both and exempt/non-taxable goods or services or
both, he can take only proportionate input tax credit attributable to taxable goods or services or both, as per
rules.
◆ The calculation of eligible input tax credit will be made as per formula given in rule 42 of CGST Rules,
2017.
◆ Such calculation will be done on monthly basis. At the end of financial year, actual calculations will be
made and final adjustments will be made by September month, following the financial year.
◆ In case of capital goods which are common for taxable and exempt supplies, the eligible input tax credit
will be as per formula specified in rule 43 of CGST Rules, 2017. It will be spread over five financial years.
Illustration:
A dealer in Maharashtra sells goods to a consumer in Maharashtra worth Rs. 10,000. The GST rate is
18% : comprising CGST of 9% and SGST of 9%.In such cases, the dealer collects Rs. 1800 and of this
amount, Rs. 900 will go to the Central Government and Rs. 900 will go to the Maharashtra government.

Now, let us assume the dealer in Maharashtra had sold the goods to a dealer in Gujarat worth
Rs.10,000.The GST rate is 18% comprising of only IGST. In such case, the dealer has to charge Rs. 1800 as
IGST. This IGST revenue will go to the Central Government.