Pradeep Singhi &

Associates
Chartered Accountants
Mumbai | Surat
For PS&A 2017-18
 Table of Contents
Overview of GST.
Concept of Supply
Registrations
Time Of Supply (TOS)
Tax Invoices / Rates
Composition Levy
Input Tax Credits (ITC)
TDS under GST
Payment of Taxes
Filling of Returns
Refunds
Audits
Penalty & Prosecution Provisions
Transitional Provisions
For PS&A 2017-18
 Overview of GST
State
Service
Excise
Tax Goods & Duty
Service Tax
Excise (GST) Entertai
Duty nment
Tax

VAT
CST
Luxury Octroi
Tax Duty

Features of GST. GST Council

1. One Nation & One Tax & One Market
2. Events are based on Concept of Supply.
3. Streamlining & Cross Utilization of Input
Tax Credits.
4. Revolutionary Invoice Matching Concept.
GST Governing Body with power to take
decision on rates, exemption, threshold
exemptions, etc with 33.33% voting power
of Union Government & 66.66% power lies
with the State Government.

For Pradeep Singhi & Associates.

 Concept of Supply
All the Earlier Laws, Taxes were based on Events like 
Manufacturing, Provision of Service, Sales, Contract entered, Agreement made, etc.
An Act of
Transfer of Sale / Barter /
Refraining /
Land Lease, Business Exchange /
Tolerating /
Tenancy, or Letting Assets Transfer / License
Obligating, etc
out of Any Building / Rental / Lease /
for Commerce Disposal of Goods.

Under GST, the Concept of

Electronic
Treatment of Supply has tremendously
Commerce
Goods. increased the Scope of Operator
Taxable events.

IT Services –
Import of Designing,
Goods / Transfer of
Construction Development,
Services. Title in Goods
Services etc
/ Rights in
Goods.
For Pradeep Singhi & Associates.
 Concept of Supply……….. Continued

• What is “NOT” a Supply? • Supply without Consideration.

• Any Exemption provided vide Notification of
the Council.
• Proportion of Abatement as notified by the
Council.
• Employer – Employee Services.
• Services By Courts & Tribunal
• Services of Government
(State/Central/Local Authority).
• Statutory Duty to be performed by
Government.
• Disposal of Assets of Business where Input
Tax Credit has been availed.
• Supply undertaken between Related
Person.
• Import of Services from a Related Person.
• Supply of Goods – Agent Principal
Relationship.
• Business Assets utilized for personal used.
• Inter-state Stock Transfer shall be treated
as supply of Goods.

For Pradeep Singhi & Associates.

 Schedule I – Supply without Consideration

• Transfer of business assets, where ITC has been availed

• Business Assets transferred w/o consideration to third party – taxable only if ITC availed

• Gift upto Rs. 50,000 in a year to employee – not a supply

• Services by an employee to an employer in the course of employment – in the negative list (Sch. III)
• All perquisites which are part of employment contract are not supplies e.g. bonus, LTC, rent free
accommodation or car, medical reimbursement, etc.
• Gift of any goods or services beyond contractual terms – is covered under this entry e.g. Diwali gifts
or vouchers
• Litigation prone as activities like free lunch or free car or parties or foreign trips
 Registrations

Registration not required upto

turnover upto 20 Lacs & 10 Lacs for
Special Category States(Current • Single Registration for
Limit Proposed in Law.) IGST/SGST/CGST/UGST
per state.
No threshold Exemption applicable • Registration required in
to following Items, each state from where
• Inter-State Taxable Supply supplies made – No
• Casual Taxable Person Centralized Registration.
• Liability to Pay Under RCM. • Multiple Business
• ECOs
Verticals in a State –
• NRIs
May opt for separate
• GST TDS Deductors.
• ISD registration for each
• Online Information & Data Business Vertical.
Retrieval Services.
• Others, as maybe notified.
For Pradeep Singhi & Associates.
 Registrations

• PROOF OF CONSTITUTION OF BUSINESS

• DETAILS OF ALL BANK ACCOUNTS
• PROOF OF PRINCIPAL AND ADDITIONAL PLACE OF BUSINESS
Documents Required • DETAILS OF PARTNERS/ PARTNERS/ DIRECTORS
for Registration • DETAILS OF GOODS OR SERVICES TO BE SUPPLIED
• HSN CODE OF GOODS AND SERVICES
• PHOTOGRAPHS OF PARTNERS/ DIRECTORS/ PROPRIETOR
• ANY OTHER DOCUMENTS AS MAY BE PRESCRIBED.

Format of Prov. GST •

Reg.

For Pradeep Singhi & Associates.

 Time Of Supply (TOS)
Time of Supply shall decide the liability to Pay Goods & Service Tax (GST).

Inputs/services
received or Non- TAXABLE PERSON OUTPUT SALES /
Registered Person. SERVICES PROVIDED.

Inward Supply of Goods/ Services Outward Supply of Goods/Services

Earlier of , Earlier of ,
- Date of Receipts of Goods. - Date of Issue of Invoice, or
- Date of Payment of Goods / - Last Date of Issuance of Invoice
Services in case of Goods
- Date immediately following 30 - Provision of Service if Invoice
days (Goods) & 60 days Not issued within prescribed
(Services) from date of time
Issuance of Invoice. - Date on which the payment is
- For Service, if neither received.
applicable then date of receipt - For Service, if neither
of service in Books. applicable then date of receipt
of service in Books.
For Pradeep Singhi & Associates.
 Levy of GST on purchases from URD Sec 9(4)

• On purchase of taxable goods and services from URD, buyer liable to GST on Reverse Charge
basis

• No definition of taxable goods and services.

• Illustrations: (Areas could possibly be covered)
• Purchases from suppliers falling below threshold limit
• Trader purchasing office supplies like stationery, tea, cleaning services from URD
• A company purchasing cold drinks, cigarettes or sweets from nearby shops
 Tax Invoices / Rates
• Single Goods / Services / Commodity shall 0 % Nil Rate Items
have Rates Prescribed in CGST / SGST & 5/6 Tier Rate
IGST. Structure Proposed for 5% Essential Items
• If the Receiver is Located within the State • CGST (20%)
12 % Standard Rate
CGST & SGST both shall be made • SGST (20%)
applicable. • IGST (40%) 18 % Standard Rate
• If the Receiver is Located in other State, • UGST (20%)
IGST shall be made applicable. 28 % Luxury Items
Addon Tax on Ultra Lux,
Proposed Format of the Tax Invoices Add. Levy % Sin & Demerits Items

For Pradeep Singhi & Associates.

 Composition Levy for Turnover < 50 Lacs
(May Increase upto 1 Cr)

CONDITION FOR RATE OF TAX

WHO CAN OPT WHO CANNOT OPT
• A registered taxable • Supplier of Services ELIGIBILITY • 1% of turnover in a
(State/UT) in Case of a
person whose turnover • Supplier of Exempted • The person shall not Manufacturer
in preceding financial Goods collect tax from the
year did not exceed • 2.5% of turnover in a
• Who makes inter-state recipient on supplies
fifty lakh rupees (State/UT) in case of a
supply of goods (IGST) made by him nor he
supply of food & non-
• If the turnover in the • Supplies goods through shall be eligible for any
alcoholic liquor for
current financial year ECO. input tax credit.
human consumption.
exceeds fifty lakh • Unless all units
rupees, the permission • 0.5% of the turnover
registered for Same (State/UT) in case of a
shall stand withdrawn PAN others suppliers.

For Pradeep Singhi & Associates.

Input Tax Credits (ITC)

CGST paid = Rs. 10

CGST @ 10%
CGST paid = Rs. 10
CGST paid = Rs. 10 (Rs. 30 – 20 (Input Tax Credit)
(Rs. 20 – 10 (Input Tax Credit)

T1 T2 T3
A B C D

SGST paid = Rs. 10

(Rs. 20 – 10 (Input Tax Credit)
CGST paid = Rs. 10
(Rs. 30 – 20 (Input Tax Credit)

SGST @ 10%
SGST paid = Rs. 10

For Pradeep Singhi & Associates.

 Various Taxes and its Credit aspect.

Taxes Manufacturer Trader Service Provider Contractors

Excise Duty
VAT
Octroi
CST
SAD
Service Tax (General)
Luxury Tax
 Input Tax Credits (ITC)……… continued

What are the Credits available?

• All Input tax Charged on supply of Goods / Services on the Goods & Services intended to be used in course of
furtherance of Business or Commerce including GST paid on RCM basis.
• Credits available for WCS in relation to Plants and Machinery other than Land, Buildings & other Civil Structures,
Telecommunication Towers, Pipelines outside the factory premises.

What are the conditions for availing Input Credits in General?

• Registered person should be in possession of tax invoices or debit notes.
• Should have received the goods and services or both.
• Tax charged in respect of such supply has been actually paid to the government, subject to provisional availment of
credit by supplier, and,
• Supplier has furnished the Monthly Return.
• If the recipient fails to pay the supplier within 180 days, then amount of such credit availed needs to be added back to
their output liability alongwith Interest. Credits shall be allowed subsequently on the payment made the supplier.
• No credits shall be allowed after due date of Monthly Return to be filed for September following the F.Y. for which such
Invoice pertains to, or , Furnishing of Annual Returns. i.e. For F.Y. 2017-18 uptill 20th Oct’18 or Date of Annual Return
filed (Due date is 31st Dec’ 2018)

For Pradeep Singhi & Associates.

 Input Tax Credits (ITC)
What/Whose Credits are disallowed?
• Non Registered Taxable person
• No Credit on Depreciated components of the Capital Goods.
• Apportionment of the ITC, if claimed partly for Business (including zero rated suppliers) and Partly of
Personal Use or use of Exempted Supply (incl t/o of RCM, securities, sale of land, sale of building excl
construction services).
• Option to Banking company, FI, NBFC to avail 50% of the eligible credit of the month without complying Taxable /
Exempted apportionment
• No Credit of Motor Vehicles & other Conveyances, in general except when used similar conveyances, transportation of
passengers or imparting training & Transportation of Goods.
• Supply of foods, beverages, catering, etc except when used to similar outward supply.
• Membership of club, health & fitness centre.
• Rent-a-Cab, Life & Health Insurance, except Government Notified obligatory duty or similar outward supply.
• Travel benefits extended to employees.
• Works Contract Services for construction of immovable property (other than P&M) except when used for
similar outward supplies
• Goods & Services received for construction of immovable property (other than P&M) on his own account or
even for furtherance of Business. (Consider Section 2(119) & Sch II 5(b) for Definition of Construction)
• Person paying Tax in Composition Scheme.
 Input Tax Credits (ITC)
Case Study 1:-

Cenvat Credits to Works Contractor.

Ans: YES u/s 17(5)(c). Only for Works Contract
Scenario 1: Civil Contractor has undertaken Taxable Services.
Works Contract for Municipal Corp, he hire multiple
contractors and gives them separate works contracts.
Whether he shall be available to take credit under GST?
 Input Tax Credits (ITC)
Case Study 2:-
Cenvat Credits to Builders.

Scenario 1: Builder/Developer has a partially completed construction. He continued to avail CENVAT Credit under
Service Tax Regime. Service Tax Credit is available on all the input services and not on inputs including works
contractors services. Vat is Payable at 0.6% & Service Tax is payable at 4.5% Stamp Duty is also paid at ~5%. Whether
Cenvat shall be available?

Conditions : - As per Section 17(5)(d), which states,

" (5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit
shall not be available in respect of the following, namely:—
(d) goods or services or both received by a taxable person for construction of an immovable
property (other than plant or machinery) on his own account including when such goods or services or
both are used in the course or furtherance of business.”

Issues : - Inputs were mainly charged under Excise & VAT. Input services were charged under Service Tax. With the
Enactment of GST, segregation of Labour & Material under CGST, SGST and IGST become virtually impossible and
therefore, most likely no Credits whatsoever shall be made available to builders and standard fix tax rates shall be
made applicable only on deemed supply of services i.e. booking before OC.

Unutilized credits should ideally shall be denied under the GST, as any transitional credits needs to be eligible in both
the Laws.
 Migration of Credit from Existing Law – Transitional Provision

1. Migration of Credits by 3. Person exempted under

3. Person exempted under
2. Unavailed ITC of Capital earlier law, WCS availing
the Existing Registered benefit of 26/2012,
earlier law, without
Goods Invoices……. Continued………
Person. First/Second Stage dealer, etc

ITC available for Person other than

Should be eligible Manufacturer &
No credit if not inputs, semi-
ITC under both the Supplier of Services can
eligible under GST finished, finished avail ITC without any
Laws. Earlier and
Act. goods held in stock duty availing
GST
on the appointed documents.
day. Similar
Credit allowed on Provision
Not Furnished the Central Tax payable @
Returns under the Prov. Such inputs 40%. The same shall be of VAT
shall be used for credited after supply
Earlier Laws being made and tax under
making taxable been paid.
supplies. SGST
Rules for
Credit relates to State
Scheme shall be
goods Supplier of Services
manufactured/clear not eligible for
available for 6 tax offering
periods.
ed under Exemption abatement under Tax on
this Act. MRP
Goods should not be Scheme
exempted or nil rated,
Inputs are eligible of ITC
doc. Of procurement
under GST & All the
needs to be available,
duty availing
Details to Stock to be
documents are
Furnished.
available not more than
12 month. For Pradeep Singhi & Associates. 2017-18
 Migration of Credit from Existing Law – Transitional Provision
4. Received Inputs /
Inputs Services after 5. Person Migrating from
Appointed day for which Composition Scheme.
Tax Paid under Earlier Law
All Such Invoices to
be Recorded within
30 days of
Appointed Day.
6. Person with 7. Credit reversed
Centralized due to Non-Payment
Registration under Earlier Law
ITC available for Credit can be
Should be eligible
Credit shown in availed if payment
ITC under both the
Return under done within 3
Laws. Earlier and
Existing Law. Need months of
GST
to file within 3 appointed day
months.
ITC available for
inputs, semi-
finished, finished Can be transferred
goods held in stock to any registered
on the appointed person having same
day. PAN.
Prov. Such inputs
shall be used for Inputs are eligible of
making taxable ITC under GST
supplies.
Possession of
Invoices & shall not
pay Tax u/s 10 of
GST (Composition).
Not more than 1 yr For Pradeep Singhi & Associates. 2017-18
 Tax Deduction at Source @ 1%

LIABILITY TO VALUE OF CREDIT OF TAX

DEDUCT CONTRACT DEDUCTED REFUND OF EXCESS
• A department or • Liability to deduct if • The deductee can TAX DEDUCTED
establishment of value of contract claim credit of the • Refund of excess
central or state exceeds Rs 2.5 Lakhs tax deducted in his amount or
government • Only Same State. electronic cash erroneous deduction
• Local authority • Paid by 10th of Next ledger shall be dealt with in
• Governmental Month. accordance of
agencies • For the purpose of refund provisions
• Such persons or tax deduction, the • No refund shall be
categories of value of supply shall granted where the
persons as may be be taken as amount amount deducted
notified on excluding the tax has been credited to
recommendations of amount in the the electronic cash
the GST Council invoice ledger of the
deductee

For Pradeep Singhi & Associates. 2017-18

 Payment of Taxes
• Tax
ELECTRONIC • Interest
CASH • Penalty
REGISTER • Arrears
• Fees or any
LIABILITY AS other amount
AVAILABLE payable
IN CAN BE under the act
ELECTRONIC DISCHARGED IGST
LIABILITY THROUGH IGST CGST
REGISTER SGST
ELECTRONIC
CREDIT CGST CGST
REGISTER IGST
SGST
SGST
IGST
UGST
UGST
IGST

LIABLITY TO BE DISCHARGED ON REVERSE CHARGE BASIS WILL BE DISCHARGED THROUGH CASH REGISTER
For Pradeep Singhi & Associates.
 Filling of Returns
ANNUAL RETURN IN GSTR 9 BY 31ST
DECEMBER OF SUCCEEDING FINANCIAL YEAR

MONTHLY RETURN IN GSTR 3 OF TAX BY 20TH OF

SUCCEEDING MONTH

Final Turnover of Input Autopopulated based on GSTR-2 Final Turnover of Output Autopopulated based on GSTR 1

INWARD GSTR 2 TAXABLE GSTR 1 OUTWARD

SUPPLIER PERSON 10TH OF SUCCEEDING RECEIPIENT
15TH OF SUCCEEDING
MONTH MONTH

ANY ALTER, REJECT, MODIFY,

UNDER GSTR – 2 TO BE INTIMATED AUTOPOPULATED UNDER
UNDER GSTR –1A PART A OF GSTR-2A

INVOICE WISE DETAILS TO BE UPLOADED IN THE RETURNS UNDER GSTR-I.

CANNOT FILE GSTR-1 FROM 11TH TO 15TH OF THE SUCEEDING MONTH.
CONCEPT OF INVOICE MATCHING INTRODUCED IN THE RETURNS

For Pradeep Singhi & Associates.

 GSTN – Return Compliances

Step 4
Step 1
GSTR-1A : The details of inward 16 10
supplies added, corrected or Step 8 20
GSTR 1: Details
deleted by the recipient shall be
of Outward
made available to the supplier
supplies Step 2 GSTR 3
GSTR 2A: Auto-
Step 5 11
populated in
17 Step 3
Supplier will accept or part A of the Part B of
reject the modifications GSTR 2: On the basis of GSTR-2A of GSTR 3
above GSTR-2A, details recipients
Step 7
of inward supplies
added, corrected or 15 Make
Step 6 deleted by recipient to
17 Part A of GSTR 3
Payment
GSTR-1 will be amended be disclosed under
to the extent GSTR-2, including RCM
details 20
modifications are Part A of GSTR 3
accepted by supplier.
 Filling of Returns……. continued
OTHER RETURNS FORM DUE DATE
QUARTERLY RETURN FOR COMPOSITION LEVY GSTR -4 18TH
MONTHLY RETURN FOR NON-RESIDENT FOREIGN TAXABLE PERSON GSTR -5 20TH
ISD RETURN GSTR -6 13TH
RETURN FOR PERSONS DEDUCTING TAX AT SOURCE GSTR -7 10TH
OTHER FEATURES

• Annual return to be submitted along with copy of audited annual accounts and a
reconciliation statement, reconciling the values of supplies declared in the return furnished
in the year
• Filing of Nil return (Regular / Composition) also mandatory under GST
• No Returns can be filed if previous period returns pending.
• If GSTR-1 10th Deadline missed – Min. Penalty of Rs.500

• Late fee prescribed for late filing of returns

• Furnishing Details/Monthly Returns – 100/day or 5000/- .
• Annual Returns - 100/day or 0.25% of the Annual Turnover in that State.
For Pradeep Singhi & Associates.
RETURNS: GSTN PORTAL - LEDGER BALANCE
RETURNS: GSTN PORTAL -- RECEIVER & SUPPLIER MISMATCH REPORT
RETURNS: GSTN PORTAL --ALL TYPES OF RETURNS
RETURNS: GSTN PORTAL -- DETAILS OF OUTWARD SUPPLIES TO BE FURNISHED

If Invoice value more

Inter State than Rs.2.5 Lacs than
Supplies made Supplies invoice wise details
to Unreg.
persons
If Invoice value less than
Details of Intra State Rs.2.5 Lacs than state wise
Outward Supplies consolidated details of
Supplies supplies

Supplies made Consolidated

Invoice wise details of
to Reg. persons
details of all Inter Supplies
State & Intra
State Supplies
GSTR-1 – INVOICE DETAILS
GSTR-2 - INWARD SUPPLIES
 Rule 7 of ITC – Apportionment of Credit on Inputs or
Input Service
Case Study 3:-
Reversal of Credit when Registered Person using inputs partly for Non Business Purpose , partly for Exempt Supplies , partly
for Taxable Supplies.
 T = Total input tax on inputs of a tax period T=1000000
 T1 = Input tax on inputs exclusively used for non business purpose.
 T2 = Input tax on inputs exclusively used for exempt supplies. T1 = 25000, T2 = 345000, T3 = 67000
 T3 = Input tax on inputs in eligible
T4=472000
 T4 = ITC attributable excl. for Zero rate supplies & Taxable Supplies.
 C1 = Amount credited to electronic ledger. C1=T-(T1+T2+T3) = 1000000-(25000+345000+67000) = 563000
 C2 = Common credit after attribution of ITC to taxable supplies(T4).
C2=C1–T4 = 563000 – 472000 = 91000
 D1 = Common ITC attributable to exempt supplies.
 E = Total exempt supplies of a tax period. (Prev. month if no data) D1=(E÷F) X C2 = (7/10) x 91000 = 63700
 F = Total turnover of a tax period. (Prev. month if no data)
 D2 = common ITC attributable to non business purpose supplies. D2=5% of C2 = 0.05 x 91000 = 4550
 C3 = remainder common credit attributable to taxable and zero rated supplies.
C3=C2-(D1+D2) = 91000-(63700+4550) = 22750
 C3 shall be computed separately for CGST, IGST, UGST, SGST.
 Amt equal to d1 and d2 shall be added to output tax liability.
 The ITC will be calculated finally for entire F.Y. as per the rule 7 before Sept of the succeeding year.
 If difference between total amts calculated annually in respect of D1 & D2 exceeds the total of the amt determined for each tax period is
excess, it shall be added to the output tax liability and such amt is to be paid with interest from April of succeeding year till date of
payment.
 In Vice versa situation the difference shall be claimed as credit not later than September of succeeding year.
GSTR-3 - DETAILS OF MONTHLY RETURN
GSTR-3 – TURNOVER DETAILS
 MATCHING, REVERSAL & RECLAIM OF ITC

Case Study 4 : If Taxable person claims excess ITC for the Month of April in their Return or the supply
is not being declared by the Suppliers for the month of April.

May’ May’ Rectified then

May’15-17 Final and GSTR 1
15 15
stands
Inward Supply Excess ITC Claimed/ Mismatch Amended.
Furnished in GSTR Communicated to Not Rectified by
Supply Not Declared
2. Supplier in GSTR-1A Supplier
by supplier
Either Suppliers
issues Debit note
Reduced from OTL of increases OTL for
Recipient if Supplier Added to OTL of May Month
Any Rectification declares details within Recipient & shall pay Communicated
before Sept of time specified u/s alongwith Interest under GSTN
Suceeding F.Y. or 39(9) Mismatch Reports
Annual Return. Either Receiver
shall reverse the
OTL June Credit in May
If declared by supplier May 20-31 month with
than OTL shall be reduced Interest.
& Interest shall be credited
to electronic ledger of the
Recipient
 MATCHING, REVERSAL & RECLAIM OF ITC
Case Study 5 : If the Recipient claims ITC equals to or less than the output tax paid by the supplier.
MATCHED
Rule 10 exp(2)

Case Study 6 : If the Supplier reduces the output tax liability by issuing the Credit Notes for the Month of April.
Either Suppliers
Reduction in OTL Mismatch cancels credit
Credit note relating Communicated to
to outward supply exceeds corresponding note increases Not Rectified by
reduction in claim for Supplier & OTL for May Recipient
furnished in GSTR-1 Recipient
ITC – 1A reflects Excess Month
Credit
May’ May’
10 Either Receiver
May’ 20-31
Rectified then shall reverse the
15-17 Credit in May
Final and GSTR 1 Added to OTL of
stands month with Supplier & shall
Amended. Interest. pay alongwith
interest
OTL
Any Rectification If declared by Recipient Reduced from OTL of June
before Sept of than OTL shall be reduced Supplier if Recipient
Suceeding F.Y. or & Interest shall be credited declares details
Annual Return. to electronic ledger of the within time specified
Supplier u/s 39(9)
 Refunds
Refund of Unutilized ITC
• For exempted exports including zero rated supplies
• Rate of Tax on inputs is higher than on output supplies
(Inverted Levy)
• No Refund if Duty Drawback claimed.

Refund of Tax & Interest

• Application shall be filed before expiry of 2 years.
• Special category persons shall file before expiry of 6 months.
• Refund filed for tax, duty, cenvat credit or interest paid in earlier law shall be disposed of as per earlier law & if
admissible shall be paid in Cash. (Transitional Provision)

Procedure & Timings for Sanctioning Refunds

• Provide documentary evidence as prescribed
• If refund is < Rs.2 Lac, than he shall only file a declaration that incidence of tax has not been passed.
• If refund Zero rated supplies of G/S is claimed, 90% of claim shall be refunded on provisional basis.
• Officer shall issue order within 60 days of receipt of application
• Interest not exceeding 6%shall be paid if not refunded within 60 days
For Pradeep Singhi & Associates.
 Audits & Records
Turnover based Audit – Where turnover of a registered taxable
person exceeds a 1 Crore (Return Rule 21(2)) in a financial year, he
shall get his accounts audited by a Chartered Accountant or Cost
Accountant & shall submit audited annual accounts, reconciliation
statement & other documents as prescribed.
Types of Audit • Departmental Audit - Commissioner may by general or
special order undertake audit of any taxable person which shall
be conducted by tax authorities.
• Special Audit – At any proceedings, any officer having regard
to nature & complexity of the case with prior approval of
Commissioner, may get the accounts audited by a Chartered
Accountant or Cost Accountant nominated by the
Commissioner & remuneration of such audit shall be paid by
Commissioner.

• Maintain books of accounts & other records for a period of 6

Records years from the due date of filing of Annual Return for the year
pertaining to such accounts & records

For Pradeep Singhi & Associates.

 Penalty & Prosecution Provisions
Reasons other than fraud,etc (S.73)
Tax has been paid or short paid or erroneously refunded or ITC wrongly availed
By reason of fraud,etc (S.74)
TYPES OF OFFENSES
Particulars U/s 73 U/s 74
1. Supplies G/S without issue of any invoice
Maximum Penalty 10% of tax OR 100% of > Rs.5Cr.
2. Issue of invoice without supply of G/S Cognizable
Rs.10,000 WEH tax
3. Collects tax but fails to pay to the credit of Govt. & Non-
Period covered 3 yrs. 5 yrs.
4. Takes/utilizes ITC point # 2 above. Bailable.
Paid before SCN - 15% of tax
5. Collects tax in contravention of provisions but fails
After SCN but - 25% of tax
to pay to the credit of Govt.
within 30 days
6. Evades tax, wrongly avails ITC or refund
After Order issued 10% of tax OR 50% of tax
but within 30 days Rs.10,000 WEH 7. Falsifies financial records Imprisonment
8. Prevents officer in discharge of his duties upto 6 month
Amount of Evasion Imprisonment with/or Fine.
9. Tampers or destroys any evidence
> Rs. 5 Cr Upto 5 yrs. with Fine
10. Engages in services which are in contravention
Rs. 2 Cr - 5 Cr Upto 3 yrs. with Fine
11. Engages in goods liable for confiscation
Rs. 1 Cr - 2 Cr Upto 1 yr. with Fine
12. Fails to supply information under this Act
For Pradeep Singhi & Associates. 13. Attempts to commit any of the above
 Dedicated GST Helpline

A Free Initiative to Assist in our

Endeavour for Smoother GST.

Please email your queries to

gst.helpline@pradeepsinghi.com

Pradeep Singhi &

Chartered Accountants
Associates
Mumbai | Surat For PS&A 2017-18
 Thank You!
Pradeep Singhi &
Chartered Accountants
Associates
Mumbai | Surat For PS&A 2017-18