Complete Analysis of EWAYBILL

Who shall furnish detail

Every registered person who causes movement of goods shall furnish information relating to the said goods in PartA of FORM GST EWB-01, electronically, on the common portal, before commencement of such movement. In case of supply by an unregistered person to a registered recipient, then the movement shall be said to be caused by registered recipient if such recipient is known at the time of commencement of the movement of of Goods.

When to submit
If the consignment value of such goods exceeds 50,000/-. Option is given to generate and carry e-way bill even if the consignment value is less than 50,000/-. If movement is in relation to a supply or for reasons other than supply or due to inward supply from an unregistered person.

When not required to Generate E-Way Bill
Generation of e-way bill is not required in the following cases:
1. In case where the goods are transported for a distance of less than 10 Kms intra-state from the place of business of the consignor.
2. Where the goods being transported are specified in annexure to the Notification no 27/2017.
3. Where the goods are being transported by a non-motorized conveyance;
4. Where the goods are being transported from the Port, Airport, Air Cargo Complex and Land Customs Station to an Inland Container Depot or a Container Freight Station for clearance by Customs; or
5. In respect of movement of goods within such areas as are notified under rule 138(14) (d) of the Goods and Services Tax Rules of the concerned State.

Who should enter details in Part B and Generate the E-way bill
 If goods are transported by the registered person himself as a consignor or as a consignee through own conveyance or a hired one or by railways or by air or by vessel The consigner/ consignee as the case may beIf goods are handed over to a transporter for transportation by road The registered person shall only furnish the information relating to the transporter in Part B and the e-way bill shall be generated by the transporter. When movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter. The unregistered person or the transporter may, at their option, generate the e-way bill.

When details of conveyance not required
Details of conveyance in Part B is not required to be provided if goods are transported for a distance of less than ten kms within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation.

EBN Number 
Upon generation of e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

Acceptance or rejection of e-way bill
The details of e-way bill generated shall be made available to the recipient, if registered who shall communicate his acceptance or rejection of the consignment. Where no communication is made within 72 hours, then it shall be deemed that he has accepted the said details.

Transferring goods in transit
If a transporter is transferring goods from one conveyance to another in the course of transit then he shall update the details of conveyance in the e-way bill before such transfer and further movement of goods.

 Multiple consignments
 If multiple consignments are intended to be transported in one conveyance, then the transporter may indicate the serial number of e-way bills of each consignment and a consolidated e-way bill may be generated by him prior to the movement of goods.

If goods not transported as per e-way bill generated
 Where an e-way bill has been generated, but goods are either not transported or are not transported as per the details furnished in the e-waybill, then the e-way bill may be cancelled within 24 hours of generation of the e-way bill.

Validity of e-way bill
 Any e-way bill which is generated shall be valid in every State and Union territory. However, the periodicity of validity shall be as under:
1. Upto 100 Km - 1 day
2. For every 100 km or part thereof thereafter - One additional day the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty four hours. In Case of Exceptional Circumstances, If goods cannot be transported within the validity period of the e-way bill due to circumstances of an exceptional nature, then the transporter may generate another e-way bill after updating the details in Part B.

Documents to be carried
The person in charge of a conveyance shall carry the following:
1. The invoice or bill of supply or delivery challan, as the case may be; and
2. A copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

Mandatory device in the conveyance
Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance for mapping the e-way bill to the said device.

Interception of any conveyance
The Commissioner or an officer empowered by him in this behalf may authorize the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intrastate movement of goods. If a vehicle has been intercepted and detained for a period exceeding thirty minutes, then transporter may upload the said information in FORM GST EWB-04 on the common portal.


Report of inspection
A summary report of every inspection of goods in transit shall be recorded online by the proper officer within 24 hours of inspection and the final report shall be recorded within 3 days of such inspection.

Physical verification of goods
No further physical verification of the said conveyance shall be carried out again in the state, if the physical verification of goods being transported has been done during transit at one place within the State or in any other State, unless specific information relating to evasion of tax is made available subsequently. 

Utilization of Cash from Electronic Cash Ledger

The utilization of Cash from Electronic Cash Ledger is done on the basis of following principles:

1. RULE 1: The amount of Cash deposited for CGST/SGST/UTGST/IGST/Cess in the cash ledger can be used for payment of CGST/SGST/UTGST/IGST/Cess liabilities respectively. No inter head adjustment is allowed for major heads.

2. RULE 2: Cash deposited under the minor head i.e. Tax/Interest/Fee/Penalty/Others in the cash ledger can be utilized for payment of Tax/Interest/Fee/Penalty/Others liabilities respectively of the same major head. No minor head adjustment is allowed.

3. RULE 3: Amount under Cash Ledger will be used in the following priority order:

(a) self-assessed tax, and other dues related to returns of previous tax periods;

Previous month tax liability covers:

a. Tax liability reported but not paid

b. Interest/penalty/fee arising out of previous month return period declarations

(b) self-assessed tax, and other dues related to return of current tax period;

Current month tax liability includes:

a. Liability for invoices and amendments uploaded for previous months

b. ITC reversal due to mismatch of invoice (Reversal under Section 42 (5) & (6) for (M-2) Tax Period)

c. Tax amount increased in M Tax period as a consequence of reduction of liability by supplier in (M-2) tax period but without corresponding reduction in ITC by the receiver (Section 43(6))

d. Liability for invoices and other consolidated declarations uploaded for current month.

(c) Any other amount payable under the Act or the rules made thereunder including the demand determined under section 73 or 74.

4. RULE 4: The amount allowed to be entered for utilization of cash can’t be more than the amount of balance available under the respective major/minor head of tax in Cash Ledger.

Utilization of Credit from Input Tax Credit

The utilization of credit from Input Tax Credit is done on the basis of following principles:

RULE 1: The amount of input tax credit will be available for utilization in following priority:

(a) IGST input tax credit shall first be utilised towards payment of IGST liability and the amount remaining, if any, may be utilised towards the payment of CGST, SGST/UTGST liabilities in that order

(b) CGST input tax credit shall first be utilised towards payment of CGST liability and the amount remaining, if any, may be utilised towards the payment of IGST liability;

(c) SGST input tax credit  shall first be utilised towards payment of SGST  liability and the amount remaining, if any, may be utilised towards payment of IGST liability  if no CGST credit is available.

(d) UTGST input tax credit shall first be utilised towards payment of UTGST  liability and the amount remaining, if any, may be utilised towards payment of IGST liability if no CGST credit is available.

(e) CGST input tax credit shall not be utilised towards payment of SGST/UTGST liabilities and

(f) SGST/UTGST input taxed credit shall not be utilised towards payment of CGST liabilities.

RULE 2: ITC cannot be utilized for payment of reverse charge liabilities.

RULE 3: ITC can be utilized for payment of tax only.

RULE 4:  ITC can’t be utilized for payment of TDS/TCS/interest/penalty/fee/others.

RULE 5: ITC (Provisional ITC) availed for the current tax period can be utilized only for return related liability of the current tax period. Once, recipient files Valid GSTR-3/5, then any such unutilized/excess ITC would be available for payment of other liabilities as well.   

RULE 6: Balance ITC under credit Ledger (other than Provisional ITC for the current tax period) will be used in the following order:

a. Self-assessed tax related to returns of previous tax periods;

Note: Previous month tax liability covers tax liability reported but not paid

b. Self-assessed tax, related to return of current tax period;

Note: Current month tax liability covers:

i) Liability for invoices uploaded for previous months

ii) ITC reversal due to mismatch of invoice in M tax period (say June) for (M-2) (say April) Tax Period

iii) Tax amount increased in M Tax period as a consequence of reduction of liability by supplier in (M-2) tax period but without corresponding reduction in ITC by the receiver (Section 43(6))

iv) Liability for invoices uploaded for current month

c. Any other tax amount payable under the Act or the rules made thereunder including the demand determined under section 73 or 74.

RULE 7: Provisional ITC for current tax period or ITC for previous tax periods cannot be utilized for payment of liability for the current tax period, if liability arising of return for previous tax period is unpaid.

Previous month tax liability covers:

a. Tax liability reported but not paid

b. Interest/penalty/fee arising out of previous month return period

RULE 8: The amount allowed to be entered for utilization of credit can’t be more than the amount of balance available in the credit/cash ledger.

RULE 9: A unique identification number shall be generated at the Common Portal for each debit or credit to the electronic cash or credit or liability ledger and the same will be reflected in the corresponding ledgers of the taxpayer.

RULE 10: Credit availed on input CESS paid on inward supplies will be available for set-off against any output tax liability of Cess only.

There is no Inter head adjustment for Cess Input Tax Credit.

RULE 11: When the taxpayer utilizes the ITC against return related liability, System will adjust the provisional ITC first.

Activities to be treated as Supply even if made Without Consideration

According to Schedule I of Sec 7 of CGST Act 2017 following Activities to be treated as Supply even if made Without Consideration:-

1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.

2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business:

Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.

3. Supply of goods-
(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or (b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.

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List of Items on which GST Cess is applicable

Pan Masala - 60%
Lemonade - 12%
Aerated Waters - 12%
Unmanufactured tobacco (without lime tube) – bearing a brand name - 71%
Unmanufactured tobacco (with lime tube) – bearing a brand name - 65%
Tobacco refuse bearing a brand name -61%
Cigar and cheroots - 21% or Rs. 4170 per thousand, whichever is higher
Cigarillos - 21% or Rs. 4170 per thousand, whichever is higher
Cigarettes containing tobacco other than filter cigarettes, of length not exceeding 65 millimetres - 5% + Rs.1591 per thousand
Cigarettes containing tobacco other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 75 millimetres - 5% + Rs.2876 per thousand
Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetres - 5% + Rs.1591 per thousand
Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 65 millimetres but not exceeding 70 millimetres - 5% + Rs.2126 per thousand
Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres - 5% + Rs.2876 per thousand
Other cigarettes containing tobacco - 5% + Rs.4170 per thousand
Cigarettes of tobacco substitutes - Rs.4006 per thousand
Cigarillos of tobacco substitutes - 12.5% or Rs. 4,006 per thousand whichever is higher
Others - 12.5% or Rs. 4,006 per thousand whichever is higher
Hookah' or 'gudaku' tobacco bearing a brand name - 72%
Tobacco used for smoking 'hookah' or 'chilam' commonly known as 'hookah' tobacco or 'gudaku' not bearing a brand name -17%
Other water pipe smoking tobacco not bearing a brand name. -11%
Smoking mixtures for pipes and cigarettes - 290%
Other smoking tobacco bearing a brand name -49%
Other smoking tobacco not bearing a brand name -11%
“Homogenised” or “reconstituted” tobacco, bearing a brand name -72%
Chewing tobacco (without lime tube) - 160%
Chewing tobacco (with lime tube) - 142%
Filter khaini - 160
Preparations containing chewing tobacco -72%
Jarda scented tobacco -160%
Snuff -72%
Preparations containing snuff - 72%
Preparations containing chewing tobacco -72%
Tobacco extracts and essence bearing a brand name -72%
Tobacco extracts and essence not bearing a brand name -65%
Cut tobacco -20%
Pan masala containing tobacco ‘Gutkha' -204%
All goods, other than pan masala containing tobacco 'gutkha', bearing a brand name - 96%
All goods, other than pan masala containing tobacco 'gutkha', not bearing a brand name -89%
Coal; briquettes, ovoids and similar solid fuels manufactured from coal - Rs. 400 per tonne
Lignite, whether or not agglomerated, excluding jet - Rs. 400 per tonne
Peat (including peat litter), whether or not agglomerated - Rs. 400 per tonne
Motor vehicles for the transport of 10 or more persons but not more than 13, including the driver - 15%
Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm. -1%
Diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm. - 3%
Hybrid Motor Vehicles of engine capacity exceeding 1500 cc - 15%
Mid Segment Cars of engine capacity not exceeding 1500 cc - 17%
Larges Cars [Other then Sports Utility Vehicles (SUV)] of engine capacity exceeding 1500 cc - 20%
Sports Utility Vehicles (SUV) engine capacity exceeding 1500 cc and length eceeding 4000 mm with ground base exceeding 170 mm - 22%
Motorcycles of engine capacity exceeding 350 cc. -3%
Aircrafts for personal use -3%
Yachts and other vessels for pleasure or sports; rowing boats and canoes - 3%

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Negative List under GST

1. Services by an employee to the employer in the course of or in relation to his employment.
2. Services by any Court or Tribunal established under any law for the time being in force.
3. Functions performed by the MPs, MLAs, Members of municipality and Member of other local authorities.
4. Duties performed by any person who holds any constitutional post.
5. Duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause.
6. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
7. Sale of land and sale of building where entire consideration has been received after issuance of completion certificate.
8. Actionable claims other than lottery, betting and gambling.

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Reverse Charge Mechanism (RCM) Under GST

Reverse charge is a mechanism under which the recipient of the goods or services is liable to pay tax instead of the provider of the goods and services. Under the normal taxation regime, supplier of Goods or Service collects the tax from the buyer of Goods or Service and deposits the same after adjusting the output tax liability with the input tax credit available.But under reverse charge mechanism, liability to pay tax shifts from supplier to recipient.

Scope of Reverse Charge Mechanism

• If a person not registered under GST supplies Goods or Services to a person who is registered under GST, then in such cases – Reverse Charge Mechanism would get applicable i.e. the GST would be required to be paid by the Recipient of Goods or Service directly to the Govt on behalf of the supplier. Reverse Charge Mechanism would get applicable only if specified Tax get payer makes inward supply of specified Goods from Unregistered Person. An unregistered dealer cannot make interstate supplies. This means that Reverse Charge will apply only in case of intra-state supply by an unregistered dealer. All persons who are required to pay tax under reverse charge have to register for GST irrespective of the threshold limit.

Input Tax Credit under Reverse Charge Mechanism
Tax paid on reverse charge basis will be available for input tax credit if such goods or services are used, or will be used, for business. The recipient (i.e., who pays reverse tax) can avail input tax credit.

Time Of Supply For Goods Under Reverse Charge Mechanism
Time of supply will be the earliest of the following dates:
When the goods are received i.e. the date of receipt.
When the amount is paid i.e. the date of payment. Date of payment shall be earliest of ‘The date on which payment has been debited from supplier’s bank account’ Or ‘When the recipient records the payment in his books of account’
The date immediately after 30 days from the date the supplier issues invoice.
If the assesse fails to determine the time of supply from the above-mentioned clauses, then the time of supply shall be the date on which recipient enters in his books of account.

Time of Supply for Services Under Reverse Charge
Time of supply will be the earliest of the follwing dates:
When the amount is paid i.e. the date of payment. Date of payment shall be earliest of – ‘The date on which payment has been debited from supplier’s bank account’ Or ‘When the recipient records the payment in his books of account’.
The date immediately after 60 days from the date the supplier issues invoice.
If the assesse fails to determine the time of supply from the above-mentioned clauses, then the time of supply shall be the date on which recipient of service enters in his books of account.

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List of Expenses Debited to Trading and P&L A/C on which GST is applicable

Conveyance Expenses – Radio Taxi like Ola, Uber or other AC Vehicles
Payment to Goods Transport Agency
Travelling in Train by AC or First Class
Job Work/Labour Charges for textile yearn and textile fabrics
Job Work/Labour Charges for diamond, jewellery and precious metal
Job Work/Labour Charges for printing of books, journals
and periodicals
Food & Beverage Expenses (AC & Non AC Restaurant)
Room Rent in a hotel/lodge above Rs. 1,000
Fuel (Furnace Oil/LPG)
Sales Promotion/Business Promotion
Mineral Water
Truck/Tempo Hire Charges
Club & Membership Fee
Advertisement Charges/Hoarding/Magazine/News Papers/Media
AMC Charges
Bank Charges – Service Charges recovered
Broker Fee & Charges
Cancellation Charges
Extended Warranty
House Keeping Charges
Insurance of goods and vehicles
Health Insurance
Payment to Advocates
Loading & Unloading
Training Expenses
Payment to Post Office for Speed Post/Parcel
Postage & Courier Charges
Printing & Stationery (Flex Printing, Board Printing, Notice Printing)
Recruitment Expenses
Commission Paid
Rent paid for commercial use of premises
Rent for godown for commercial purpose
Repairs & Maintenance – Building/Electrical/P&M/ Others
Payment for Sponsorship services
Security Charges
Telephone, Mobile & Internet Charges
Sundry Expenses
Job Work/labour charges for garment processing
Job Work/labour charges – Others
Sitting Fee, Commission or any other payment made to
directors by the company
Audit Fee, Account Writing, Processional Fee (Other than Advocates)
Research & Development Expenses
Food & Beverage Expenses (AC Restaurant)
Wall Paint
Travelling Expenses – International
Amusement Park/Theatre Ticket
Cold Drinks
Repairs & Maintenance Charges if it has not resulted into immovable property
Electric Fittings
Staff Uniform Expenses
Packing Material and Packing Charges
Plant & Machinery/ Furniture & Fixture
Building/ Motor Car
Office Equipment including Computer, Software & Hardware
Free Gifts to Staff (Exempt upto Rs. 50,000 p.a.)
Free Gifts to Staff (Above Rs. 50,000 p.a.)
Diwali/New Year Gifts purchased

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GST Rates on Precious Stones and Jewellery

Gold - 3%

Gold Jewellery - 3%
Gems and Jewellary - 3%
Rough Diamond - 0.25%
Coins - 3%
Pearls - 3%
Imitation Jewellery - 3%

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Interest Rates under GST

As per Notification No. 13/2017 Dated 28/06/2017 by Central Board of Excise and Customs Interest Rates under Central Goods and Service Tax Act , 2017

1. Delay payment of Tax - 18%

2.Contravention of Input Tax Credit of the recipient in his return - 24%

3. Contravention output tax liability of the supplier in his return - 24%

4. Interest payable on Refund in respect of Appeal - 6%

5. Interest Payable on delay payment of refund - 6%

6. Delay payment of  Interest on refund Order passed by Appellate Authority or Appellate Tribunal or court - 9%

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Composition Scheme under GST

GST Composition Scheme is an option available to a registered taxpayer whose aggregate turnover in the preceding financial year did not exceed Rs. 1.5 Crore (Rs.75 lakh in respect of the following Special Category States namely:- Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh) may opt to pay, in lieu tax at the normal rates, tax at such rate as prescribed under composition levy.

Rate of GST under Composition
Traders  will have to pay 1% tax.
Manufacturers will have to pay 1% tax.
Restaurant businesses will have to pay 5% tax.


Persons not eligible to opt for Compositiom Scheme:-
a) a casual Taxable Person or Non - Resident Taxable Person.
b) Suppliers whose turnover exceeds priscribed limit.
c) Supplier who has Purchased any Goods or Services from Unregistered Supplier unless he had paid GST on such Goods or Servive under RCM.
d) Supplier of Service Other than Restaurant Service.
e) Person supplying Goods which are not Taxable under GST.
f) Person Making any Inter - State Outward Supply of Goods.
g) Suppliers making any Supply of Goods through electronic Commerce Operator who is required to Collect Tax at Source u/s 52.
h) a manufacturer of Ice Cream and other edible ice whether or not containing Cocca, Pan Masala and Tobacco and Manufayured Tobacco Substitutes.

Note:- There is no restriction on Procurring Goods from Inter - State Suppliers by Person opting for Composition Scheme.

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Types of GST Returns and their Due Dates

GSTR-1
Details of outward supplies of taxable goods and/or services effected.
Filed by Registered Taxable Supplier.
10th of the next month.

GSTR-2
Details of inward supplies of taxable goods and/or services effected claiming input tax credit.
Filed by Registered Taxable Recipient.
15th of the next month.

GSTR-3
Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax.
Filed by Registered Taxable Person.
20th of the next month.

GSTR-4
Quarterly return for compounding taxable person.
Filed by Composition Supplier.
18th of the month succeeding quarter.

GSTR-5
Return for Non-Resident foreign taxable person
Filed by Non-Resident Taxable Person.
20th of the next month.

GSTR-6
Return for Input Service Distributor
Filed by Input Service Distributor.
13th of the next month.

GSTR-7
Return for authorities deducting tax at source.
Filed by Tax Deductor.
10th of the next month.

GSTR-8
Details of supplies effected through e-commerce operator and the amount of tax collected.
Filed by E-commerce Operator/Tax Collector.
10th of the next month.

GSTR-9
Annual Return
Filed by Registered Taxable Person.
31st December of next financial year.

GSTR-10
Final Return.
Filed by Taxable person whose registration has been surrendered or cancelled.
Within three months of the date of cancellation or date of cancellation order, whichever is later.

GSTR-11
Details of inward supplies to be furnished by a person having UIN
Filed by Person having UIN and claiming refund
28th of the month following the month for which statement is filed.

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GST - Goods and Service Tax

GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

Benefits of GST

For business and industry
Easy compliance:- A robust and comprehensive IT system would be the foundation of the GST regime in
India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be
available to the taxpayers online, which would make compliance easy and transparent.

Uniformity of tax rates and structures:- GST will ensure that indirect tax rates and structures are common
across the country, thereby increasing certainty and ease of doing business. In other words, GST would
make doing business in the country tax neutral, irrespective of the choice of place of doing business.

Removal of cascading:- A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing
business.

Improved competitiveness:- Reduction in transaction costs of doing business would eventually lead to an
improved competitiveness for the trade and industry.

Gain to manufacturers and exporters:- The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost.

For Central and State Governments
Simple and easy to administer:- Multiple indirect taxes at the Central and State levels are being replaced by
GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administer than all
other indirect taxes of the Centre and State levied so far.

Better controls on leakage:- GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an inbuilt mechanism in the design of GST that would incentivize tax compliance by traders.

Higher revenue efficiency:- GST is expected to decrease the cost of collection of tax revenues of the Government, and will therefore, lead to higher revenue efficiency.

For the consumer
Single and transparent tax proportionate to the value of goods and services:- Due to multiple indirect taxes being levied by the Centre and State, with incomplete or no input tax credits available at progressive stages of value addition, the cost of most goods and services in the country today are laden with many hidden taxes. Under GST, there would be only one tax from the manufacturer to the consumer, leading to transparency of taxes paid to the final consumer.

Relief in overall tax burden:- Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers.

Type of Tax Subsummed in GST
At the Central level, the following taxes are being subsumed:
a. Central Excise Duty,
b. Additional Excise Duty,
c. Service Tax,
d. Additional Customs Duty commonly known as Countervailing Duty, and
e. Special Additional Duty of Customs.

At the State level, the following taxes are being subsumed:
a. Subsuming of State Value Added Tax/Sales Tax,
b. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
c. Octroi and Entry tax,
d. Purchase Tax,
e. Luxury tax, and
f. Taxes on lottery, betting and gambling.

GST administration in India
There will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods
and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.

Taxation Treatment of a a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)
The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of Central Excise.

Taxayion Treatment of  Inter-State Transactions of Goods and Services
 In case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution. The IGST would roughly be equal to CGST plus SGST. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one State to another. The inter-State seller would pay IGST on the sale of his goods to the Central Government after adjusting credit of IGST, CGST and SGST on his purchases (in that order). The exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The importing dealer will claim credit of IGST while discharging his output tax liability (both CGST and SGST) in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of
SGST. Since GST is a destination-based tax, all SGST on the final product will ordinarily accrue to the consuming State.

Cross utilization of credits between goods and services
Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST. However, the cross utilization of CGST and SGST would not be allowed except in the case of inter-State supply of goods and services under the IGST
model.

Taxation of Imports under GST
The Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently being levied on imports will be subsumed under GST. As per explanation to clause (1) of article 269A of the Constitution, IGST will be levied on all imports into the territory of India. Unlike in the present regime, the States where
imported goods are consumed will now gain their share from this IGST paid on imported goods.

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System Requirements for Accessing GST Portal and Usage of DSC

 1. System Requirements for Accessing the GST Common Portal

• Desktop Browser: Internet Explorer 10+/ Chrome 49+ or Firefox 45+

• Valid class 2 or class 3 Digital Signature Certificate (DSC) obtained from a DSC provider

• Signing using DSC is not supported on mobile devices and browsers

• Windows 32 / 64 bit OS

• Java 1.6 JRE 1.6.0_38+, Java 1.7, Java 1.8

• Windows: Admin access to install the emSigner component

• Any one of the following ports should be free

Desktop Browser: Internet Explorer 10+/ Chrome 49+ or Firefox 45+

Besides the above on browser compatibility following should not be disabled:

1.      Cascading Style Sheet (CSS) - used to render User Interface look and feel of the portal. Disabling this will not provide appropriate user experience

2.      JavaScript - used to provide enhanced user experience in using User Interface controls. Disabling this will not allow user to perform any transaction in the portal.

3.      Cookie - used to store personalized information of user. Disabling this will not allow user to login and perform any transaction in the portal.

2. System Requirements for Usage of Digital Signature Certificate

Note:

1.      GST Common Portal supports only Crypto Tokens installed in Hard Tokens for DSC Registration

2.      For Hard Token based certificates, please refer user manual provided by Certifying Authority for certificate download, enrolment and usage of Hard Token

Pre-requisites for installing Web socket installer

1.      1645

2.      8080

3.      1812

4.      2083

5.      2948

3. Downloading and Installing the Web Socket Installer

For downloading and installing the Web Socket Installer, perform the following steps:

1.      Download the Web Socket Installer from the DSC Registration page of the GST Common Portal.

2.      Double-click the emSigner.msi executable file.

3.      The emSigner Setup assistant wizard is displayed. Click the Next button.

4.      To install the emSigner in the default folder created under Program Files, click the Next button.

Note: You can click the Browse button, navigate and select the folder to install emSigner

5.      The emSigner Setup page is displayed. Click the Install button to begin the installation process.

6.        Click the Finish button to exit the Set up wizard.

7.         Right click the emSigner icon placed on your Desktop and run as Administrator.

8.      A message indicating the start of the emSigner service is displayed. Click the OK button

On successful set up, Digital Signature Signer window is displayed.

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