Input tax credit under GST, Matching with return under GST, Annual Return, Final Return, Monthly return, late filing fees under GST, Transitional Provision

1. INPUT TAX CREDIT UNDER GST & MATCHING WITH RETURN

2. WHAT’S INSIDE?
In this presentation, we will learn the following topics:
1. Input Tax credit under GST
2. Transitional Provision related to ITC
3. Matching of return
4. Annual & Final Return Under GST

3. WHAT IS INPUT TAX CREDIT?
ITC does not include Tax paid on purchase from person
opting for composition scheme
Input Tax Credit
Means
IGST Paid on Inter
State Purchases of
goods or services or
Import of Goods
CGST Paid on Intra
State purchase of
goods or services
SGST paid on Intra
state purchase of
goods or services
Including tax paid
on reverse charge
basis

4. WHO IS ELIGIBLE FOR INPUT TAX CREDIT?
Every
registered
taxable
person
Is entitled
to take
credit of
input tax
charged
on any
supply of
goods or
capital
goods or
services to
him
which are
used or
intended to
be used in
the course
or
furtherance
of his
business
said amount
shall be
credited to
the
electronic
credit
ledger of
such person

5. WHAT IS ELECTRONIC CASH LEDGER & ELECTRONIC
CREDIT LEDGER?
Electronic Cash Ledger:
• Where taxable person can make deposit
• In the joint account with government
• maintained for the purpose of Payment of Tax, interest, Penalty,
fees or any other amount
Electronic Credit Ledger :
• Where Credit of Tax paid on purchase is directly credited to this account
• On filing of outward detail by supplier
• And the same is accepted by taxable person
• This credit can be utilize only for the purpose of Tax Liability and
not for the purpose of Interest or penalty, etc.

6. PRIORITY OF UTILIZATION OF CREDIT
CGST SGST IGST
CGST SGST IGST
IGST IGST CGST
SGST
CGST IGST SGST
Input 10000 30000 10000
Output 25000 10000 25000
Net
(Refund)/
Payable
15000 (20000) 15000
Payable - - 10000

7. EXAMPLE ON UTILIZATION OF ITC
Timber Maker
Mr. A
Furniture Maker
Mr. B
State X
SGST
RATE=10%
Tax Invoice (A)
Cost of Goods = 100
SGST (G) @10% = 10
CGST @10% = 10
Total = 120
Trf of goods within same State
Furniture Retailer
Mr. C
Trf of goods in other State
Tax Invoice (B)
Cost of Goods = 200
IGST @20% = 40
Total = 240
Payment of IGST
IGST Payable =40
Less: CGST ITC = 10
Less: SGST ITC = 10
IGST Paid = 20
Centre:
CGST=10%
IGST=20%
Payment of GST
CGST Payable =10
SGST Payable = 10
Total GST Paid= 20
State X
SGST
RATE=10%

8. CONDITION FOR TAKING INPUT TAX CREDIT?
Registered taxable person is not entitled to input tax credit on supply of goods and/or services
unless
He is in
possession of
a tax invoice
not Older
Than 1 year
He has
received the
goods and/or
services
The tax
charged in
respect of
such supply
has been
actually paid
He has
furnished the
return under
section 34

9. WHAT ARE INELIGIBLE CREDIT?
Following are ineligible credit:
Motor vehicles except used for:
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
(D) for transportation of goods.
 Specified goods and / or services as are used primarily for personal use or consumption of employee
 Works contract services when supplied for construction of immovable property, other than plant and machinery,
except where it is an input service for further supply of works contract service;
Goods or services received by a taxable person for construction of an immovable property on his own account,
other than plant and machinery, even when used in course or furtherance of business;
Goods and/or services on which tax has been paid under composition scheme.
 Goods and/or services used for private or personal consumption to the extent they are so consumed.NOTE: Where the tax component has been capitalised to the asset and depreciation is claimed on it under Income-
Tax Act, then no input tax credit shall be allowed on such tax component.

10. PROPORTIONATE CREDIT CONCEPT
Proportionate Credit
Goods Used for:
For Business Purpose: 60% Non-Business Purpose: 40%
ITC Allowed:
60%
ITC Disallowed: 40%
Goods Used for:
For Taxable supplies plus zero-
rated supplies : 60%
For Non-taxable supplies
plus exempted supplies:
40%
ITC Allowed:
60%
ITC Disallowed: 40%
Banking company or a financial institution including NBFC :
Have the option to either comply with provision of proportionate credit 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.

12. • Person applied for registration within 30
days from the date of liable to registration
and the registration has been granted to him
Eligible
persons
• Credit of tax paid on Inputs held in stock
Credit
Entitled
• The day immediately preceding the date
from which he becomes liable to pay tax
Held as on
If Registration is not obtain on time specified than no credit will be allowed in respect to stock held

13. • Person who is not required to
register, but obtains Voluntary
registration
Eligible
persons
• Credit of tax paid on Inputs held
in stock
Credit
Entitled
• The day immediately preceding
the date of registrationHeld as on

14. • Person ceases to pay composition tax
Eligible
persons
• Credit of tax paid on Inputs held in stock
& Capital Goods after providing
certain reduction as may be prescribed
Credit
Entitled
• The day immediately preceding the date
from which he becomes liable to pay tax
under regular schemeHeld as on

15. • Person supplying exempted goods now become
taxableEligible
persons
• Credit of tax paid on Inputs held in stock relatable
to that supplies & Capital Goods after providing
certain reduction as may be prescribed
exclusively used for such exempted supplies
Credit
Entitled
• The day immediately preceding the date from which
he becomes liable to pay tax on such goods
Held as on

16. EXICES
SERVICE TAX
VAT
GST

17. TRANSITIONAL PROVISION OF CENVAT CREDIT STANDING IN RETURN
Input Tax
Credit
CENVAT credit
VAT credit
It includes
Central excise
Service Tax
Education cess
NCCD
 krishikalyan cess (only to service
provider)
Additional duty u/s 3(1) of Custom
Tariff Act
It includes
ITC under VAT law of state
 CVD 3(5) under CTA
Can be availed against
payment of CGST i.e.as a
CGST Credit
Can be availed against
payment of SGST i.e.as a
SGST Credit
Person Is
Register Under
Existing Law
Person is
register under
GST and not
opting for
composition
scheme
CENVAT or
VAT is carried
forward in
return as per
Earlier Law
Said Credit can
be carried
forward as ITC
under GST in
Following
manner

18. TRANSITIONAL PROVISION OF UN-AVAILED CENVAT CREDIT ON CAPITAL GOODS
Person Is Register Under Existing Law
(Excise or Service Tax)
Person is register under GST and not
opting for composition scheme
There is un-availed CENVAT not carried
forward in return as per Earlier Law
Said Credit can be taken as ITC under
GST as CGST

19. TRANSITIONAL PROVISION OF CREDIT OF INPUT HELD IN STOCK
Person is
-Not liable to Register Under Existing Law or
-Manufacture exempted goods or
-Providing exempted service or
-Paying tax under composition scheme in earlier law or
-Register importer
Person is register under GST
There is stock in hand on
appointed day on which tax
has been paid under earlier
law
Tax paid on such stock can
be taken as ITC under GST
as follow
Excise Service tax- as CGST
VAT- as SGST

20. Condition for taking such credit
Such inputs are used or intended to be used for making
taxable supplies under GST
He has passes on the benefit of such credit by way of
reduced prices to the recipient
He is eligible for input tax credit on such inputs under GST
He is in possession of invoice not older than 12 month
evidencing payment of duty under the earlier law in respect
of such inputs
the supplier of services is not eligible for any abatement
under GST
In case of dealer/traders
-who is not in possession
of an invoice evidencing
payment of excise
-he shall be allowed to
take credit at the rate and
in the manner prescribed.

21. IN CASE OF MANUFACTURE OF EXEMPTED AS WELL NON-EXEMPTED GOODS
Engage in manufacturing of taxable as well as Exempted goods
Or
Engage in provision of taxable as well as exempted services
Now in GST whole supply become taxable
Entitle to take ITC carried
forward in return file
under earlier law
Entitle to take credit of
duties paid on input held
in stock related to
exempted goods or
services

22. PURCHASE RETURN OF EXEMPTED GOODS
Remove removed exempted goods under earlier law
Removal is within 6 months before appointed date
Return by register person within 6
months from the date of applicability
of GST
OR
Return by unregister person
No taxes will be payable by person
returning goods
Return by register taxable
person after 6 months from the
date of applicability of GST
GST will be payable by person
returning goods i.e. treated as
fresh supply under GST

23. PURCHASE RETURN OF DUTY PAID GOODS
Removed duty paid goods under earlier law
Removal is within 6 months before appointed date
Goods are return from person
who is not registered under GST
Return within 6 months from the
date of applicability of GST
Refund of tax paid under earlier
law may be claimed on receipt of
goods.
Return by person register
under GST
GST will be payable by person
returning goods i.e. treated as
fresh supply under GST
Return after 6 months from the
date of applicability of GST
No Refund allowed

24. SALE OF CAPITAL GOODS ON WHICH ITC IS TAKEN
Capital Goods means goods the value of which is capitalized in the books of accounts which
are used or intended to be used in the course or furtherance of business.
The registered taxable person on sale of capital goods shall:
- pay an amount equal to input tax credit taken on such capital goods
- reduced by percentage points as prescribed or
-tax on the transaction value of such capital goods, whichever is higher.
Particulars Amount
ITC taken on such capital goods xxxx
Less: % prescribed by the Govt xxxx
Total (A) XXXX
Tax on the transaction value of such capital goods (B) XXXX
The taxable person shall pay an amount higher of A or B.

25. SHIFT OVER FROM NORMAL SCHEME TO COMPOSITION SCHEME UNDER GST
Taxable person registered under normal scheme in existing law
There are unutilized portion of input tax credit under old law
Now Opted for Composition Scheme under GST
Liable to pay credit availed for input held in stock
Reverse credit not availed.

26. ITC ON GOODS SENT FOR JOB WORK
Eligible to take credit of Input or Capital Goods sent to Job Work provided:
Credit of Input: Input of Capital Goods:
If Inputs is received back
in 180 days
Inputs not received back
in 180 days
Eligible to take ITC
Pay the credit utilized
along with Interest
If Capital goods is received
back in 2 Years
If Capital goods is not
received back in 2 Years
Eligible to take ITC
Pay the credit utilized
along with Interest
If Inputs or Capital goods are received back after 180 days/ 2 years as the case may be
Book the credit along with interest on Receipt
Note: Credit is allowed even if the Inputs/Capital goods is directly received at Job Worker’s premises.

27. RETURN OVERVIEW
• A return is a statement of specified particulars relating to
business activity undertaken by the taxable person during a
prescribed period
What is return?
• There will be common e-return for CGST, SGST and IGST.
Whether diff. return
under CGST, SGST &
IGST?
• A registered taxable person shall not be allowed to furnish
return for tax period if valid return for any previous tax period
has not been furnished by him
What if return not filed
in any previous period?
• Every registered person is required to file a return for the
prescribed tax period. A return needs to be filed even if there is
no business activity (i.e. Nil Return) during the said tax period
What if there are no
business during period?

28. Return Summary
Furnish detail
of outward
supplies on
10th
Furnish
detail of
inward
supplies on
15th
Modify
detail of
Outward
supplies by
17th
Monthly
return by
20th of
following
Month
Annual
Return by
31th of
December of
following
year

29. FURNISHING DETAILS OF OUTWARD SUPPLIES (GSTR 1)
• Every register person except:
• Input service Distributor,
• Non-resident taxable person,
• Composition Taxpayer,
• Person deducting TDS or collecting TCS
Who is require
to file?
• Detail of outward supplies of goods or services made
during the month: I.e. detail of Invoice, Debit Note, Credit
note & Revised invoice and same is require to
communicate to recipient.
What are detail
require to file?
• Due date of GSTR 1 is 10th of following month of relevant
tax period
What is due date
of filing GSTR 1?

30. FURNISHING DETAIL OF INWARD SUPPLIES ( GSTR 1A)
• Every register person except:
• Input service Distributor,
• Non-resident taxable person,
• Composition Taxpayer,
• Person deducting TDS or collecting TCS
Who is
require to
file?
• Person can Verify, Validate , modify or Delete detail
relating to outward supplies furnish by supplier in
GSTR 1 which become auto drafted GSTR 1A
What is the
process?
• 15th of Month following the month of relevant tax
period.
What is the
due date?

31. ADDITIONAL INWARD SUPPLIES ( GSTR 2 & 2A)
• Every register person except:
• Input service Distributor,
• Non-resident taxable person,
• Composition Taxpayer,
• Person deducting TDS or collecting TCS
Who is require to
file?
• Recipient in GSTR 2 can add detail of inward supplies
which has not been furnished by supplier in GSTR 1
and the same is require to communicated to supplier.
What is the process?
• 15th of Month following the month of tax periodWhat is the due date?
• Supplier in auto drafted GSTR 2A, accept, modify or delete detail
furnished by recipient in GSTR 2 on or before 17th of month
following the month of relevant tax period.
What is action require
from supplier?

32. MISMATCH OF OUTWARD & INWARD SUPPLIES
Mismatch of Outward supplies
• Supplier who has furnished
GSTR 1 remain unmatched
due to error or omission
• Should rectify details in the
return filed for the month in
which error or omission
found
• And pay tax & interest if any
short paid.
Mismatch of Inward supplies
• Recipient who has accepted
inward supplies furnished by
supplier or add detail of
inward supplies, remains
unmatched due to error or
omission
• Should rectify details in the
return filed for the month in
which error or omission
noticed
• And pay tax & interest if any
short paid.

33. Monthly Return for Normal Taxpayer
• Every register person except:
• Input service Distributor,
• Non-resident taxable person,
• Composition Taxpayer,
• Person deducting TDS or collecting TCS
Who is require to
file?
• Detail of outward supplies, inward supplies, Input Tax credit
availed, Tax Payable, Tax paid and other particulars as
prescribed.
What are the detail
require to file?
• Monthly return is to be filed in GSTR 3 whether or not any
supply has been effected during such a tax period ( nil Return if
no supplies)
In which form?
• 20th of Month following the month of tax periodWhat is the due date?

34. FIRST RETURN
• A First Return file by Registered taxable person after
grant of registration.What is First Return?
• Person has to declare detail of outward supplies
made during the period of person liable to register
till date of registration is granted.
What are special point
in First Return?
• Due date of 1st return is 20th of next month
following the month of effective date of registration
What is due date of
filing first return?
• Person has to declare Nil outward supplies in case
there is no supplies in that period.
What if there are no
business during that
period?

35. MONTHLY RETURN FOR COMPOUNDING TAX PAYER
• Compounding tax payerWho is require to file?
• Detail of inward supplies of good and services, debit
and credit notes, tax payable and tax paid and
interest payable the other particulars as prescribed.
What are the detail
require to file?
• Monthly return is to be filed in GSTR 4 whether or
not any supplies has been effected during such tax
period.
In which form?
• 18th of Month following the quarter.
What is the due
date?

36. MONTHLY RETURN OF TDS
• Every person who require to deduct tax at source(TDS)Who is require to file?
• TDS require to be deducted, TDS deducted, Value on which
deducted, interest on belated payment.
What are the detail
require to file?
• Monthly return is to be filed in GSTR 7In which form?
• 10th of Month following the month in which TDS is deducted.What is the due date?
• No return is to be filled for the month in which no TDS is
deducted.
What if no TDS deducted
during month

37. ANNUAL RETURN
• Every register person except:
• Input service Distributor,
• Casual Taxable person
• Non-resident taxable person,
• Composition Taxpayer,
• Person deducting TDS or collecting TCS
Who is require to
file?
• In Form GSTR 9In Which form?
• Detail of Expenditure & Purchase
• Detail of Income & Supplies
• Detail of Return reconciliation along with Refund if any
What are detail
require to file?
• 31st day of December following the end of financial Year.What if due date ?

38. • Liable to pay late fees of One Hundred
Rupee per day during which such default
continue
• Maximum penalty is Rs.5000
Fails to file on or before due date
-Outwards Supplies
-Inward Supplies
-Monthly Return
-Final Return
• Liable to pay late fees of One Hundred Rupee
per day during which such default continue
• Maximum penalty is 0.25% of turnover in a
state
Fails to File Annual Return
Levy of Late Fees

39. ASK YOUR QUARY

40. CA Nikhil Malaiya
Cell: 9545727818
CA Mayur Zamwar
Cell: 9422855595