CHAPTER

Introduction
WHAT IS TAX ? A COMPULSORY EXTORTION OF MONEY
+
MADE UNDER AN ACT / LAW
+
TO SUPPORT THE NATION

TYPE OF TAXES (LEVIED IN INDIA):

Type of Taxes

Direct Taxes Indirect Taxes

The incidence of tax borne by the The incidence of tax not borne by the person on
Incidence of tax- person on whom it is levied. whom it is levied rather it is borne by ultimate user
/ End user.
Progressive in nature (High rate of Regressive (All the consumers equally bear the
Nature of tax-
taxes for people having higher burden, irrespective of their ability to pay)
ability to pay)
Goods and Service Tax, etc.
Types of tax- Income Tax, etc

Example: -
Paid
Tax Imposed On Tax Borne By Type of Tax Applicable

Mr. Raj Student Indirect Tax

Mr. Raj Mr. Raj Direct Tax

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Chapter I: Introduction CA. Raj Kumar
Example:
Value 10,000
Add: - GST @ 18% 1,800
Total 11,800
Less: - GST paid to Government (1,800) Indirect Tax
Net Amount 10,000
Less: -Expenses (4,000)
Gross Income 6,000
Less: - Income Tax (on above income) (1,800) Direct Tax
(6000 x 30%)
Net Income 4,200

DESTINATION PRINCIPLE:

USA India
End User of Goods / services in
Manufacturer India i.e. it is consumed in India,
Then Tax = to Indian Govt.)

USA
End User of
Goods / services - India
in USA i.e. it is
consumed in Manufacturer
USA, Then Tax =
to USA Govt.)

WHAT IF -
=> Goods imported from USA to India and
=> Cleared for Home consumption in India on payment of Import duty,
=> Now exported to Sri Lanka i.e. End User in Sri Lanka,
=> In such case Tax will goes to Government of Sri Lanka.
=> & What about tax paid to Indian Govt.?

It will be refunded
with the name of
DUTY
DRAWBACK.

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CA. Raj Kumar Chapter I: Introduction

Why Tax: Government need fund to fulfill Increasing developmental needs of country
or to fulfill Socio Economic Objectives of the country, that’s why Government
impose tax.

What is Tax: Tax is a Compulsory Extortion of money made under an Act to support the
nation.

Type of Tax: It can be classified into two parts as direct Tax & Indirect Tax. Where burden
of tax borne by the person on whom it is levied then the tax will be direct Tax
and where burden of Tax shifted to another person i.e. ultimate consumer
then it will be called as Indirect Tax.

Destination principle According to this principle, if any goods or services, weather domestic or
imported

Consumed in India: Tax will be levied and collected by Indian

Government only.

Consumed outside India: Tax will be levied and collected by

Government outside India only

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Chapter I: Introduction CA. Raj Kumar

Concept of CST:
Haryana Govt
U.P. Govt
(CST Rs 1000 )

Asta ORIGITPRI
Mr. Y
Mr. X
(Registered
(Registered in UP)
a In Haryana)
11000 14000
Value =10000
Credit of Rs 1000- cannot be allowed Sold out the goods- m
to buyer. It will become part of cost Value=25000
+ CST @10% =1000
of goods. +
CST @10% =2500
Total = 11000 Tooo
Total = 27500

(Credit= Nil)

1) CST Money goes to ? = State Govt. (Constitutional Provision)

2) Which State Govt ? = Original State
3) What about credit to buyer ? = No credit available
4) CST goes to State Govt, then why Central Law applies? = Because of the need of a Uniform Law

Uniform Law:

States
UP
Haryana
Punjab
Countries
India
USA
Canada
EH
Maharashtra France

Ch Law frame Claw Uniformly

WTO Central
Govt.
in Germany

Raf
WTO uniform LI
Cosima
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CA. Raj Kumar Chapter I: Introduction

WHY GST
TRADE

INTER-NATIONAL
INTRA – STATE INTER – STATE
LEVEL
LEVEL LEVEL
Eg. INDIA - USA
Eg UP TO UP Eg UP TO HR
customaw
Value 100: XXX Value :
100 Import of Goods:
+ Central Excise Duty : XXX XXX Value of
MANUFACTURER Cum Duty price : XXX + Central Excise Duty : 10 Goods : XXX
Cca + VAT on
Cum Duty price
lot.fI : XXX
: XXX
XXX
Cum Duty price :
110 + Import duty : XXX

XXX Export of Goods:

+ C.S.T lol
On Cum Duty price :
: XXX Value of
Goods : XXX
cost11,0
Value :
71
XXX
40 150 XXX 121 + No TAX : …….
: XXX
TRADER State + VAT : XXX
a lol XXX II co 1214 11 161
Value of Goods : XXX
Cost167 + C.S.T
lot
:
16.1 Import of Service :
Value of Service : XXX XXX
SERVICE + Service Tax : XXX
PROVIDER h 177.1 Value : XXX
op XXX XXX Service Tax : XXX
XXX
COST 1771 Export of Service :
Value of Service : XXX
+ Service Tax : XXX Value : XXX
No Tax : NIL

Cascading Valle 10000 foods

IEEEEO
Double taxable y Goat
87 11
É
service
Gox
E
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Chapter I: Introduction CA. Raj Kumar

Basis of difference PRE GST POST GST

Multiple Tax Central Excise Duty, VAT, CST, Service Tax, GST (one nation one tax)
ie Total 17 Taxes.

Multiple Procedure Separate: Registration, Books of Account, ONE (Procedure)

Invoice etc.

Multiple Taxable Manufacturing , Sales, Entry in other state etc. SUPPLY

Event

Person / TaxPayer Manufacturer, Service provider, Trader etc. Taxable PERSON (Supplier / Recepient)

Cascading Effect YES NO (Cascading Effect) upto 99.99%

Double Taxation YES NO Double Taxation upto 99.99%

Level Intra state, inter state, international Intra state, inter state, (International will
also called as inter state.)

What is
GST
A TAX on “Goods/Services”

SUPPLY

GST: IMPOSED

NATURE OF SUPPLY
Origin & Destination Origin & Destination
In Same State / Crux: Any border exists in 2 Different States
Union territory In between then Inter- in 2 Different Union territories
State otherwise Intra- in a State & a Union Territory
State. in 2 Different Countries
INTRA STATE
Ie, UP To UP to H
INTER - STATE
Value of Goods / Service : XXX
+ C- GST : XXX
100 Value of Goods / Service : XXX
+ S – GST (UP) E : XXX 9 + I- GST
0
: XXX 18
What About Daman to Daman?
: XXX

II 21 (A Sum Total of
CGST + HR GST) : XXX TO
9 9
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 CA. Raj Kumar Chapter I: Introduction

- GST is a Tax imposed on Goods and/or Services. It is a value added tax

having continuous chain
Renny
- There must be a supply of Goods/Services. of credit where burden

- Supply Can be of Two Types as follows—

is shifted on END User
y_z2 I
BtoB 11 B B III sport
Retallr
54k
Bloc
y WIS I
M74 WIS I EYE may
* 8h It 81 7 WE
MH
Inter State Supply: Where origin & destination of supply fall under 2 Different States, UT’s,
State & UT, countries then the supply will be Inter State and IGST would be levied.

IGST will be payable to C.G. and C.G. retain CGST potion out of IGST & Balance Portion (SGST)
will be transferred to destination or consuming State. [Where Destination is an Union
Territory then Balance Portion (UT GST) will be retained by C.G. itself in different
Pocket/account.

* Intra State: Where origin and destination of supply falls under same State/UT then the
supply will be Intra State & accordingly CGST & SGST/UT GST would be payable.

PRACTICE OF INTER & INTRA

IGST CVD 317 IGST Payable to central govt.
Along with STARI Central Govt T/F 50% to
Import INTER INTRA MH INTER UP INTER CGST fund and 50% to
Duty MH UTGST fund.

IMPORT CGST – Payable to IGST – Payable to

Central Govt. central govt.(18%)
USA MH-GST Payable to & central govt DAMAN IGST: Payable to
MH Govt. . retain : 9% & CG. CG T/F 50%
f No Tax to
Indian Govt
Balance 50% transfer to
U.P.Govt.
INTER to CGST fund and to
50% to UTGST fund
Destination CHD
Out of India
EXPORT
INTRA INTER Deeg.EE
ANDMAN INTRA INTER (IGST) : Payable to Central Govt.
O
DL
ANDMAN

CGST : To Central govt.

O
DL
IGST : Central govt. CGST: Payable to central govt.
CG T/f 50% to CGST fund
& 50% to Delhi Govt.
UT – GST Central govt. 50% CGST fund DL – GST: Payable to DL govt.
50% UTGST Fund

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 Chapter I: Introduction CA. Raj Kumar

TOTAL NUMBERS OF STATES AND UTS

Natural States Union Territories [UT]
Mixed UT [Termed as deemed state in the Pure UT- An UT without
world of GST] legislature ie no own
Its an UT with legislature ie having its own assembly, no own Chief
assembly, own Chief Minister. Minister.
In simple its having some charecterstick of State
29 States 2 Mixed UT [Delhi and Puducherry ] 5 Pure UT

De-Merger of J&K 1 Mixed UT [J&K] 1 Pure UT [Ladakh]

a

Merger of 2 Pure UT’s Dadar - (1) Pure UT

and Nagar Haveli, Daman & Diu
__
Total : Natural States = 28 Total deemed states = 3 Total Pure UT’s = 5
I
FINALLY TOTAL NUMBER OF STATES (Natural and Deemed states )= 31
auto
TE
GST LAW

CGST CGST Shst CGST Ast CGST Iast

*Payable to central govt. *Payable to central govt. *Payable to central govt. *Payable to central govt.
*In CGST FUND *In CGST FUND *In CGST FUND *In CGST FUND
sum
*CGST Act, 2017 *CGST Act, 2017 *CGST Act, 2017 *CGST Act, 2017 II
guess
*Section 1 to 174 *Section 1 to 174 *Section 1 to 174 *Section 1 to 174

Total Act = 1 I
Total Act = 1 Total Act = 1 Total Act = 1

GST “Compansation CESS” Act, 2017

The CONSTITUTION Amendment Act, 2016 (Section 1 to 20) qq.oeti.int
I.8 AE
10,000
CA. Raj Kumar Chapter I: Introduction
CREDIT SYSTEM
CONCEPT OF INPUT TAX CREDIT

CONCERNED PERSON PARTICULARS AMOUNT TAX TO GOVT.

GSt YAT
Manufacturer 1- Value = 100

Raw Material (Iron) Wire

GST @ 18% = 18 Rs. 18
0
Total= 118

Otp 27

FettyManufacturer 2- M Value = 1000 (Credit=18)

GST @ 18% = 180 Rs. 180-18

Wire Compressor

EET Total= 1180

O
=Rs. 162

MAGEN
Manufacturer 3- Value = 10000
D
(Credit=180)

GST @ 18% = 1800 Rs. 1800-180

Compressor AC
Total= 11800 =Rs. 1620

End User- Value = 500000 (Credit=1800)

GST @ 18% =
t
90000 Rs. 90000

0
AC Car t
Total= 590000
C
- 1800

= Rs. 88200

O
Total = Rs 90000

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Chapter I: Introduction CA. Raj Kumar

REE p

É
Taxable Person
Inward Supply Outward Supply

Value : 100000
IGST : 18000 sunt Value : 150,000
IGST : 27000
or
118000 177000

INPUT TAX = 18000/-

Outward Tax = 27000
Less ITC USE = 18000
9000
INPUT TAX CREDIT = 18000/-
MANNER OF UTILISATION
A ITC Output TAX
__
Purchase Account Dr. 100000 __
ITC Dr. 18000 (2) C C
TO Bank 118000

ITC Book / Avail/ Allowed (1)

8888
I
a I
12 Coditions – for Booking of ITC b
Eg. Invoice Received, Goods Received (3)

856
S S
UT UT

Emine IEEE C - CGST

I - IGST
S - SGST
UT – UTGST

Rank Credit Utilized for

Rank 1 Credit of IGST to be utilized for I) IGST
t II) CGST or SGST (In any order/Ratio)

Rank 2 Credit of CGST to be utilized for I) CGST

II) IGST

Rank 3 Credit of SGST to be utilized for I) SGST

II) IGST
(Or) (Or)

Rank 3 Credit of UTGST to be utilized for I) UTGST

II) IGST

Note: Credit of SGST can NOT be utilised for the payment of CGST & Vice Versa.

Credit of UTGST can NOT be utilised for the payment of CGST & Vice Versa.

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CA. Raj Kumar Chapter I: Introduction
EXAMPLE :
Total Output GST= 62,000 Output IGST Output CGST Output SGST

In
Total ITC = 60,000

1)ITC of IGST = 20000

O
15000/-

(15000)
O
12000/-

(2000)
0
35000/-

(3000)
620

t
Balance ITC = NIL 10000 32000

2) ITC of CGST = 10000 - (10000) -

___
Balance ITC = in Nil Nil
O
32000

3) ITC of SGST = 30000 - - (30000)

te sash
Cash Liability 2000

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Chapter I: Introduction CA. Raj Kumar

AN ANALYSIS OF PRE AND POST GST

Pre GST Post GST

Central excise duty, additional Excise Duty, Excise GST : [CGST +SGST, IGST]
Duty on Medicinal and Toilet Preparations,

State level VAT,

Central Sales Tax,

Entry tax / Octroi,

Purchase Tax,

Service Tax,

CVD 3(1), CVD 3(5), [countervailing Duty]

Tax on betting, gambling, Lotteries

Luxury Tax on hotels

Entertainment Taxes levied by State Govt.

VARIOUS CESSES:

Swachh Bharat Cess,

Krishi Kalyan Cess,

INFRASTRUCTURE CESS,

AUTOMOBILE CESS,

R&D CESS etc.

Basic Custom Duty, Anti -Dumping Duty, CVD on Not subsumed in GST so these taxes will be
subsidized Articles, Import Export continued in proposed system

Export duty Basic Custom Duty, Anti -Dumping Duty,

CVD on subsidized Articles,
Entertainment Taxes levied by Local bodies.
Export duty
Electricity duty/Tax.
Entertainment Taxes levied by Local bodies.
Stamp Duty.
Electricity duty/Tax.
Road Tax & passenger tax
Stamp Duty.
Toll tax
Road Tax & passenger tax
Property Tax.
Toll tax, Property Tax.
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CA. Raj Kumar Chapter I: Introduction

Old and New Tax

Alcoholic Liquor for human consumption State Excise duty NO GST
2121T Sales Tax

5 Petroleum Products
Fist Central Excise duty

Sales tax

Tobacco Central Excise duty Yes GST

Ét_a
É stag Sales tax ask
Rest of the goods - Yes GST

All Services

GI
Comments on Number of Taxes
Multiple Taxes Subsumed But Not All the Taxes eg. Electricity Duty, Stamp Duty, Anti-Dumping Duty, Basic
Custom Duty & therefore such taxes will create disturbance/ cascading effects & the Inflation will go up.

On the other side by subsuming all the Taxes, GST RNR will go high, which may affect General Public and may
cause of failure of GST concept. Moreover states will not be agreed to lose its revenue of stamp duty, Excise Duty
on alcoholic liquor for human consumption etc.
80 0
EE
Comments on on
Comments Taxable Event
Taxable Event

Multiple Taxable Events subsumed in ONE word “Supply” moreover the word “manufacture” which was the
taxable event to levy central excise duty and much disputed Point has No relevance in the word SUPPLY.
Accordingly multiple Legislation subsumed in GST law ie now one Geeta, One Bible, One Quran - resulting-
Less litigation free flow movement – Time saving on road.

On the Other Side: Stock transfer liable to Excise Duty only But now liable to GST which is sum total of Central
Excise Duty & VAT. So a Businessmen Need more working capital (However solution thereof has been given
under valuation Rule by playing with value of stock transfer) Similar problem with free sample distribution.

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Chapter I: Introduction CA. Raj Kumar
Old System:-

(MP) (UP- Noida)

"TEVA API" "TEVA API"
Stock Transfer
Raw Medicine Medicine Medicines
Material Powder Powder
Invoice: -
Value = 100000
+ Central Excise duty @ 12% = 12,000 (Credit=12000)
o
+ Sales Tax @14% = NIL
Total = 1,12,000 Taxable
SEED
* Cost to UP Unit = Rs. 100000
* Credit to UP Unit = Rs. 12000
if
O

GST System:-

(MP) (UP- Noida)

"TEVA API" "TEVA API"
Stock Transfer
Raw Medicine Medicine Medicines
Material Powder (B2B) Powder
(It is a Supply ) t

Invoice: - (Credit=28000)

81
Value = 100000
+ GST @28% = 28000 Taxable
Total = 128000

* Cost to UP Unit = Rs. 100000

**Cost to to
UPUP
Unit = Rs. 100000
qI
Credit Unit = Rs. 28000
* Credit to UP Unit = Rs. 28000
Note: -
Problem: -Fund of Rs 28000 is Solution: - To solve this problem, Government has
blocked in form of credit in place introduced "Rule-28",
of Rs 12000. In case of Stock Transfer, supplier has the option
So there is an issue of working to choose value of supply at his own i.e. whatever
capital, with extra load of interest, the value will be declared, that will be deemed as
Because of this TEVA API will Assessable value.
have to take short term loan on By doing this less amount will be blocked in form
heavy rate of interest to fulfil of credit.
working capital needs.

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CA. Raj Kumar Chapter I: Introduction

Comments on Cascading Effect

Earlier most of the taxes/Cesses were not eligible for credit like KKC to manufacturer, VAT to service provider
etc. – consequently there was a Tax on Tax i.e. Cascading Effect. Since most of the Taxes Now subsumed so no
cascading effect.

On the other side, GST is calculated on the value Including All Taxes Except GST & Compensation CESS (For
Example: - In Case of Tobacco: GST is calculated on cum Central Excise duty Value therefore cascading effect is
existed even after introduction of GST- to some extent.

Manufacturer: -
Raw Material Tobacco
Invoice- Amount (Rs.)
Value of Tobacco = 100.00
+ Excise duty @10% = 10.00
Total = 110.00 (All other taxes are
inclusive in value for
+ GST @ 28% = 30.80 calculating GST)
all Total =
of
140.80 1
Comments
Commentson DoubleTaxation
on Double Taxation

Earlier One Value i.e. Common Value liable to two type of taxes e.g. In Case of Restaurant service full value
liable to VAT & a certain portion (40%) also liable to service Tax But Under GST regime these situations are
classified as service only & liable to GST i.e. No Double Taxation.

On the other hand even as of Now double Taxation is Existed to the extent e.g. Tobacco is imported liable to
import Duty Including CVD & also liable to IGST, Another Example “cost of Transportation” of goods imported
By vessel liable to GST as service & also Included in value of goods for the purpose of calculating import Duty &
IGST.

Comments ononExemptions
Comment Exemptions

Earlier various goods & Services were exempted under central excise Law/VAT/CST/Service Tax etc. (In
Totality 600 entries Approximately]

Under GST Regime A Unified Exemption list have been Introduced which consist Approximately 100 entries for
services & 150 entries of goods ie total 250 Approximately due to this tax burden will be rationalized & will
Create a Broder tax Base – so that more number of persons will be covered under GST law.

Moreover earlier threshold exemption under central excise was Rs1.5cr which is now limited to Rs 20 lakh/ 10
Lakh it will also create a broader Tax Base. It was needed to maintain R.N.R as low as possible

2000 915 The 2000 Gls

Total I.15

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Chapter I: Introduction CA. Raj Kumar

Comments
Commenton
on Computation
Computation

Earlier Multiple Legislation, Multiple Assessable Value, Multiple Rate - Now one law, One Assessable Value, 4
to 6 type of rates of GST. Moreover Restaurant services, works contracts service, Software treatment much
smoother comparatively as under GST regime these are treated as supply of service only.

On the other side in GST valuation some provisions are not good to the extent eg. Inclusion of Interest, Penalty,
Fine etc. in Assessable Value

Rate of Taxes
Earlier there is a “Rate War”, But under GST Regime there are 4 to 6 Rates.

0.25 % & 3% : For Gems & Jewellery Sector.

5% : Items of Mass Consumption which are particularly used by common people.

12% & 18% : Standard Rate

28% : Demerit Goods & white goods eg. Washing Machine, AC, Fridge, Consumer
Durables and some Notified Services.

28% + Compensation Cess : Luxury cars, Aerated Water, Beverages, Pan Masala, tobacco..

Note: Rates of GST are near about the “Rates of Central excise Duty plus VAT Rat

Comments on Reverse Charge

Earlier Reverse Charge was Applicable only on Notified Services; But under GST Regime Reverse Charge is
applicable on Notified services as well as Notified goods to Check Tax Evasion.

Comments on Point
Comment ofof Taxation/Time
on Point of Supply
Taxation/ Time of Supply

Approximately same provision of Time of supply as were given under point of Taxation. Point of Taxation was
for services only but time of supply is for service as well as for goods.

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CA. Raj Kumar Chapter I: Introduction

Comments
Commentson
on Procedural Part
Procedural Part

Now it is easy to handle procedure because of fully automated processes under GST law.

On the other side there is a problem to small dealer Due to adaptability, Internet, Computer etc. moreover multiple
RC mean multiple Payment, Returns, Books of Account etc.

his
Need For GST in India/ Deficiencies in the old value added taxation

Multiple taxes: There are multiple taxes in India in old regime like central excise duty, state level vat, service tax, various
kinds of cesses consequently multiple legislation and multiple taxable events, multiple procedures and there was no
coordination among all taxes.

Cascading effect: In the old regime, a manufacturer of excisable goods charges excise duty and value added tax (VAT)
on intra-State sale of goods, even vat was charged on cum duty price consequently it creates cascading effects. Moreover
credit of CST not available atall to any one consequently creates cascading effect and many more examples of cascading
effects.

Double taxation: Double taxation of a transaction as both goods and services as the distinction between
goods and services was often blurred, e.g. software was liable to both VAT and service tax. It was Just because of lack
of proper coordination among various tax laws there was a situation of double taxation eg. Restaurants services, works
contract, etc. liable to both service tax and vat.

No Uniformity: Because of multiple taxes there were multiple legislation, Multiple Procedure, multiple returns,
registration, invoicing, multiple threshold

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Chapter I: Introduction CA. Raj Kumar
FINALLY 4 PILLERS of GST
FINALLY 4 PILLERS OF GST
Earlier Regime GST Regime

- Multiple Taxes - One Nation, One Tax, One Law

- Multiple Procedure - One Procedure
- Cascading Effect - No cascading Effect (upto 99 %)
- Double Taxation - No double Taxation (upto 99 %)

BENEFITS OF GST
GST brings benefits to all the stakeholders of industry, Government and the consumer. It will lower the cost of goods and
services, give a boost to the economy and make the products and services globally competitive. GST is a win-win
situation for the entire country. The significant benefits of GST are discussed hereunder:

No multiple taxes (to the extent): GST will subsume majority of existing indirect tax levies both at Central and State
level into one tax i.e., GST which will be leviable uniformly on goods and services.

No cascading effect (to the extent): By subsuming most of the Central and State taxes into a single tax and by allowing a
set-off of prior-stage taxes for the transactions across the entire value chain, it would mitigate the ill effects of cascading,
improve competitiveness and improve liquidity of the businesses.

No double taxation (to the extent): GST will make doing business easier and will also tackle the highly disputed issues
relating to double taxation of a transaction as both goods and services.

Uniformity in provision (to the extent): GST aims to make India a common market with common tax rates and
procedures and remove the economic barriers thus paving the way for an integrated economy at the national level.

Buoyancy to the Government Revenue: GST is expected to bring buoyancy to the Government Revenue by widening
the tax base and improving the taxpayer compliance.

Boost to 'Make in India' initiative: GST will give a major boost to the 'Make in India' initiative of the Government of
India by making goods and services produced in India competitive in the national as well as international market.

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CA. Raj Kumar Chapter I: Introduction

GENESIS OF GST IN INDIA

GST is a path breaking indirect tax reform which will create a common national market by dismantling inter-State trade
barriers. GST has subsumed multiple indirect taxes like excise duty, service tax, VAT, CST, luxury tax, entertainment tax,
entry tax, etc.

Year Event

1954 France was the first country to implement GST in the year 1954.

2004 The idea of national Goods and Services Tax (GST) in India was mooted by Kelkar Task Force
in 2004.

2014 NDA Government tabled the Constitution (122nd Amendment) Bill.

2016 Constitution (122nd Amendment) Bill, 2014 received the assent of the President on 8th
September, 2016 and became
I Constitution
K (101st Amendment) Act, 2016.

2017 The Central GST legislations - Central Goods and Services Tax Bill, 2017, Integrated Goods and
(March) Services Tax Bill, 2017, Union Territory Goods and Services Tax Bill, 2017 and Goods and
Services Tax (Compensation to States) Bill, 2017 were introduced in Lok Sabha.

2017 Finally Govt. rolled out GST by 1st July, 2017, by achieving consensus on all the issues relating
(July) thereto.

Goods and Services Network (GSTN)

GSTN is a company Registered under section 8 of Companies Act, 2013 i.e. A company “Not for Profit”.

- Both the Government provides funding to GSTN.

GSTM
- GSTN provides GST portal service to Govt. and Tax Payers. Coupee

- Facilities offered by GSTN/GST Portal are as follows—

Registration,

filing of Return,

Distribution of IGST Between CG & SG/UT,

Infor
É F
Matching of Returns,

Analysis Tax Payer’s profile and provide Various Kinds of Report to Government.

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Chapter I: Introduction CA. Raj Kumar
NOTE: “WWW.EWAYBILLGST.GOV.IN” MEANS THE WEBSITE MANAGED BY THE NATIONAL INFORMATICS CENTRE, MINISTRY OF

Inuol ell s t Goime

th
ELECTRONICS & INFORMATION TECHNOLOGY, GOVERNMENT OF INDIA.

GSPs/ASPs
- GSTN HAS SELECTED CERTAIN IT, ITES AND FINANCIAL TECHNOLOGY COMPANIES, TO BE CALLED GST SUVIDHA
PROVIDERS (GSPS).
TEETHly
- GSPS DEVELOP APPLICATIONS TO BE USED BY TAXPAYERS FOR INTERACTING WITH THE GSTN.
- THEY FACILITATE THE TAX PAYERS IN UPLOADING INVOICES AS WELL AS FILING OF RETURNS AND ACT AS A SINGLE STOP
SHOP FOR GST RELATED SERVICES.

- THEY CUSTOMIZE PRODUCTS THAT ADDRESS THE NEEDS OF DIFFERENT SEGMENT OF USERS.
- GSPS MAY TAKE THE HELP OF APPLICATION SERVICE PROVIDERS (ASPS) WHO ACT AS A LINK BETWEEN TAXPAYERS AND
GSPS.

Analysis GST Portal

Push (GSTR-1/ GSTR-3B- Organised Data)

GST Suvidha Provider (GSP) /

K Application Service Provider (ASP) GSPa milk
Asp Horly
It is A communicator between Computer of
taxpayer and GST Portal
Pull (Work Mode @ Pull / Push Mode)

All Raw Data

File GSTR-3B
91161
File GSTR-2 File GSTR-1
Computer of Tax payer
Input tax credit Output GST

Invoice Received Invoice Issued

I.20