ra SECTION from business sources, and not on person ~ Answer any Three of the following : Gx 5 = 15) 4 2) Explain the Concept and Principle of GST? Ans.: The Concept and Principles of GST are as under = 1. Value Added Tax : GST is a Broad-based value added tax levied on value added to goods and/or services at each stage of supply chain. 2. Destination based tax on consumption : GST is the revenue of that state which has jurisdiction over the place of consumption of goods and/or services which is also termed as place of supply. Tax on Business Ac GST is a tax on the consumption of products / services hobby activities. Continuous Chain of Tax Credits available from producer se provider's point upto the retailer), consumer's level thus taxing only the vil added at each stage of supply chain, Burden Borne by Final Consumer : Oy), the final consumer bears the GST charges by the last supplier in supply chain as a all the previous stages~ set off benefits are available to the suppliers. No Cascading of Taxes: As GST is charged only on value added at each stage, there is no cascading of taxes in this system and it avoids double ti— 6) Explain in brief Conditions for availing Composition Scheme? ‘Ans.: The following conditions must be satisfied order to opt for composition scheme : a) No Input Tax Credit can be claimed by a dealer opting for composition scheme. b) The dealer cannot supply GST exempted goods. c) The taxpayer has to pay tax at normal rates for transactions under the Reverse Charge Mechanism. 4) Ifa taxable person has different segments of businesses (such as textile, electronic, accessories, groceries, etc.) under the same PAN, they must register all such businesses e) 8) h) under the scheme collect the scheme. The taxpayer has to ment ‘composition taxable person’ on every notice or signboard displayed prominently at their place of business. The taxpayer has to mention the words ‘composition taxable p:rson’ on every bill of supply issued by him. As per the CGST (Amendment) act, 2018, a manufacturer or trader can now also supply services to an extent of ten percent of turnover or Rs.5 lakhs. The dealer is not allowed from carrying out inter-state transactions. y oF opt out of m the wordsSCTION 'B' = Answer any Three of the following (jx 5 = IS) 2) Mention the various components under GST and also discuss them in brief. Ans.: CGST : — It stands for Central Goods and Service Tax which is levied and collected by Central Government on intra-state supply of goods and/or services - It is governed by Central Goods and Services Tax Act, 2017 SGST: — It stands for State Goods and Service tax which is levied and collected by respective State Government on intra-state supply of goods and/or services. — Ibis govemed by State Goods and Services Tax Act, 2017. UTGST : = It stands for Union Territories Goods and Services Tax which is levied and collected by Central Government on intra-state supply of goods and/or services. It is ge Act, 2017 and Services IGST It stands for inte} Tax which is levied and collected by on}, Central Government on inter-state Supply grated Goods and Ser of goods and/or services. The tax so collected is then apportioney between Central Government and respective State Government where goods are consumed. It is governed by integrated Goods ang Services Tax Act, 2017. GST Compensation Cess It is a compensation to States for loss of revenue on account of introduction of GST and is provided by Parliament, by law on recommendation of GST Council for 5 years. It is levied by Central Government on notified goods only- on intra / inter-state supply. It is governed by GST (Compensation to states) Cess Act, 2017.SAP SERIES for B.Com. Gth Sem. As poy CBCS Syllabus GOODS & SERVICES TAX |15 3) Discuss the functions of Common Gsr portal / GSTN? - ‘Ans.: Common GST portal is a robust settlement mechanicm amongst the States and the Centre as GST is a destination-based tax. jis a clearing house and it verifies the claims — and inform the respective Governments to transfer the funds. = Thus, Common GST Electronic Portal — wwwgstgov.in — is a website managed by Goods and Services Network (GSTN). It - establishes a uniform interface for tax payer — and a common and shared IT infrastructure between the Centre and States. = The functions of Common GST portal/ - TN include : Facilitating registration Forwarding the returns to Central and State authorities Computation and settlement of IGST Matching for tax payment details with banking network Providing various MIS reports to the Central and the State Governments based on the taxpayer return information Providing analysis of taxpayers’ profile Running the matching engine for matching. reversal and reclaim of input tax credit For furnishing E-Way Bill For generation of E-Invoice.} eT EEE ——— ( SECTION 'B' _ answer any Three of the following (3x 5 = 15) 2) Which are the commodities kept outside the purview of GST? OR Supply of all goods and/or services is taxable under GST. Discuss the validity of the statement. ‘Ans. The statement is invalid due to the following reasons = we Supplies of all goods and/or services are taxable under GST. = except alcoholic liquor for human consumption. = Supply of following would be taxable with effect from the date notified by Government on recommendations of the GST Council : — petroluem crude, ‘ = high speed diesel, = motor spirit (petrol), - natural gas and - aviation turbine fueol, 3) What is.composition levy as per section 10 of CGST Act? Also state the threshold limit ‘for opting’ to pay tax under this scheme. Ans.: Eligibility of Scheme : « alternative method © ‘The composition levy is of levy of tax designed for small taxpayers 1 this scheme is The option to pay tax unde available u/s 10(1)/ 102A) of CGST Act to a registered person whose aggregate turnover year was not in preceding financial exceeding : Under Section 10(1) of CGST Act: — Rs.1.5 Crore in other than special category states but including Assam, Himachal Pradesh and Jammu & Kashmir and — Rs. 75 lakhs in special category states except Assam, Himachal Pradesh and Jammu & Kashmir. b) Under Section 10(2A) of CGST Act: = Rs. 50 lakhs for person who are ineligible to opt w/s 10(1). © The benefit of composition scheme can be availed upto the turnover of Rs. 1.5 Cr./ Rs. 75/Rs.50 lakh as the case may be in the current financial year. Objective : To bring simplicity and reduce compliance cost for the small taxpayers. Optional Scheme : This scheme is optional and the eligible person opting this scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at normal rate.SECTION 'B' Answer any Three of the following (3 x 5 = 15) yy Explain the significance of time of supply under GST law. _ same can be paid to Government by the du date prescribed with reference to the ae ‘time of supply & GST is leviable on supply of goods and/or © There are separate provisions for time services. en supply for goods and services under sec Time of supply indicates the point in time 12 and 13 of the CGST Act respec when the liability to pay tax arises © Though, the liability to pay the tax arises at the time of supply, the payment of the 3) GST Rates applicable to goods. Ans All goods are divided into 6 schedules for rate purpose as stated below : Inter-state supply | Supply of goods Intra-state supply Schedule IGST Rate GST Rate SGST Rate (in %) (in %) (in %) I 5 a5 2 I 12 6 6 Tl 18 9 9 Vv 28 14 14 Vv 3 15 aS VI 0.25 0.125 0.125 empt from tax; Also some are liable for Nil rates. The GST is levied t Some goods are ¢x' le value of supply:SCTION 'B! Answer any Three of the following : i (3.x $ = 15) ?) Mention the various components under GST. and also discuss them in brief, Ans.: cost: Tt stands for Central Goods and Service Tax Which is levied and collected by Central Goverment on inta-state supply of goods and/or services Its govemed by Central Goods and Services Tax Act, 2017 SGST: Tt stands for State which is levied and Goods and Service tax collected by respective State Government on intra-state supply of B00ds and/or servi It is govemed by Tax Act, 2017 UTGST: It stands. for Union Terttories. Goads and Services Tax which is levied and collected by Central Government on intr of goods and/or services, Its govemed by Union ‘Teritory Goods and Services Tax Act, 2017 IGST; It stands for integrated Goods and Service Tax which is levied and collected by only State Goods and Services state supply Central Government om mer goods and/or services ~The tax s0 collected is the, DD, ANd t4,% State Government where good es are cgp is govered by interred ga Services Tax Act, 2017 wa GST Compensation Coss; Iis compensation to States 4 Fevenue on account of introdueti and is provided by Parliament. » between Central Governmen, OF Jose On Of Ge. Ya g Tecommendation of GST Couneit for§ Ts levied by Central Government on foods only— on intra / inter-state Yea tgs cml Tis govemed by GST (Compe states) Cess Act, 2017. sation 1) 3) What is composition levy ay er section COST Act? Also state the threshold init Jor opting to pay tax under this scheme Ans.: Eligibility of Scheme : The composition levy isan altemative mets Of levy of tax designed for small texpayes ‘> The option to pay tax under this schem « available ws 10(1) / 10(2A) of CGST Act 2 Tegistered person whose azgrepate tumover in preceding financial exceeding a) Under Section 10(1) of CGST Acq; Rs.1.5 Crore in other than speci) category states but including Assam, Year was not Himachal‘Guap SERIES for B.Com. 6th Sem. As per CBCS Syllabus GOODS & SERVICES TAX [51} Pradesh and Jammu & Kashmir and 75/Rs.50 lakh as the case may be in the — Rs. 75 lakhs in special category states current finaneial year. except Assam, Himachal Pradesh and Objective: To bring simplicity and reduce Jammu & Kashmir. | compliance cost for the small taxpayers b) Under Section 10(2A) of CGST Act: Optional Scheme : This scheme is optional = Rs. 50 lakhs for person who are ineligible and the eligible person opting this scheme can to opt u/s 10(1). pay tax at a prescribed percentage of his tumover > The benefit of composition scheme can be every quarter, instead of paying tax at normal availed upto the turnover of Rs. 1.5 Cr./Rs. rate.