GST for Final Bcom Students - Syllabus and Chapter 1 (BNU)

 GFGC CHIKKABALLAPUR 

Name of the Program: Bachelor of Commerce (B.Com) Course Code: B.Com 5.6 Name of the Course: Vocational Course – GST – LAW & PRACTICE 

 Syllabus 

Module: 1 – INTRODUCTION TO GST (THEORETICAL BASED) 10 Hrs 

The Concept of Tax and the Objective for its Levy, the Concept of Direct and Indirect Tax and the Differences between the two types of Taxes, the Basic Features of Indirect Taxes and the Principal Indirect taxes in India, Source Based Vs Destination Based Taxation Structure and its Features. The need for GST in India, The Historical background of GST in India, The Framework of GST (Dual Model) and various benefits to be accrued from Implementation of GST. The Significant Amendments made in Constitution (101st Amendment) Act, 2016. GST Council: Constitution, Power and Functions. 

Module: 2 – IMPORTANT DEFINITIONS IN GST AND SUPPLY UNDER GST 14 Hrs 

Definitions of: Goods, Services, Person, Consideration, Aggregate Turnover, Fixed Establishment, Casual Taxable Person, Taxable Supplies, Exempt Supply, Non- taxable Supply, Supply with Consideration in course/ furtherance of Business, Supply without Consideration; Schedule I, II, and III to the GST Act. Continuous Supply, Composite Supply, Mixed Supply, Taxability of Interstate Supply and Intra State Supply. (Problems) Exempt Supply – Education Sector, Government Organisation, Agriculture Sector, Interest Income, Rental Income, Transportation, Health Sector 

Module: 3 – PROCEDURE AND LEVY UNDER GST 14 Hrs

 Registration under GST based on Turnover Limits; Casual Registration; Levy and Collection of CGST/SGST/IGST; GST Under Composition levy- Goods and Services; Reverse Charge Mechanism (RCM)- GTA, Legal Service, Director Remuneration; Tax Invoice and Essential Elements in Invoice; GST on items containing Alcohol; Petroleum Products; GST on Tobacco Products 

Module: 4 – TIME AND VALUE OF SUPPLY 10 Hrs 

Time of Supply for Goods/Services (Point of Tax) for both Forward and Reverse Charge when consideration is received in money and when consideration other than money, Residuary Cases. Value of Supply to Unrelated Persons when price is the sole consideration of the Supply; Computation of Value of supply (Inclusions and Exclusions), Concept of Discount and its treatment

 Module: 5 – INPUT TAX CREDIT AND PAYMENT OF TAXES 12 Hrs 

Definition of: Input (Goods), Input Services, Capital goods, Input on Capital Goods, Concept of elimination of Tax Cascading Effect through Value Added Tax System. Concept of Input Tax Credit. Eligibility and conditions for taking ITC, Cross Utilization of ITC between Goods and Services, Blocked Credits Sec17(5). Concept of Electronic Credit Ledger, Electronic Cash Ledger. GST Returns: Returns for Outward supply (GSTR-1), Returns for Inward Supply (GSTR-2A and 2B), Final Monthly Returns (GSTR-3B). Due Dates, Late Fees and Interest. Setting off OF ITC and Payment of Tax- Computation of GST- Full-fledged Problems

 48 SKILL DEVELOPMENT ACTIVITIES: 

 1. Prepare a tax invoice under the GST Act

 2. Write the procedure for registration under GST

 3. Prepare a chart showing rates of GST

 4. Compute taxable value and tax liability with imaginary figures under CGST, SGST and IGST

 5. List out the exempted Goods and Services under GST 

6. Analyse the custom duties rates of last five years 

 7. Any other activities, which are relevant to the course 

BOOKS FOR REFERENCE 

1. V.S.Datey, Goods and Services Taxes, Taxman 

2. Sathpal Puliana, M. A. Maniyar, Glimpse of Goods and Service Tax, Karnataka Law Journal Publications, Bangalore 

3. Pullani and Maniyar, Goods and Service Tax, Published by Law Journal, Bangalore 4. H.C. Mehrotra and V.P. Agarwal, Goods and Services Tax.

 5. H.C. Mehotra and S.P. Goyal, Goods and Services Tax.

 6. Ghousia Khatoon, C.M. Naveen Kumar and S.N. Venkatesh, Goods and Services Tax, Himalaya Publishing House, Bangalore. 7. R.G. Saha, S.K. Podder and Shruthi Prabhakar, Fundamentals of GST and 

8. Customs Act, Himalaya Publishing House 9. G. B. Baligar, Goods and Services Tax, Ashok Prakashan, Hubli.

The Concept of Tax and Its Objectives

Tax is a compulsory financial charge imposed by a government on its citizens or residents to raise revenue for public services and expenditures. It's a fundamental mechanism through which governments finance their operations and provide essential services to their populations.

Objectives of Tax Levy

1. Revenue Generation: The primary objective of taxation is to generate revenue for the government. This revenue is used to fund various public services, infrastructure projects, social welfare programs, and other government activities.
2. Economic Regulation: Taxes can be used to regulate economic activity. For example, high taxes on certain goods or services can discourage consumption, while tax breaks can encourage investment in specific sectors.
3. Income Redistribution: Progressive taxation, where higher earners pay a larger percentage of their income in taxes, can help reduce income inequality and redistribute wealth.
4. Social and Environmental Goals: Taxes can be used to promote social and environmental objectives. For instance, taxes on tobacco and alcohol can discourage their consumption, while subsidies for renewable energy can encourage its adoption.
5. Protectionism: Tariffs, a type of tax imposed on imported goods, can be used to protect domestic industries from foreign competition.

   Direct vs. Indirect Taxes: A Comparison

   Taxes can be broadly categorized into two main types: direct and indirect. The key difference between these two lies in the manner in which they are collected and who bears the primary burden of the tax.

   Direct Taxes

   • Definition: Direct taxes are those levied directly on the income or wealth of individuals and corporations.
   • Collection: These taxes are collected by the government from the taxpayer themselves.
   • Burden: The primary burden of direct taxes falls directly on the individual or corporation responsible for paying the tax.
   • Examples: Income tax, corporate tax, property tax, and capital gains tax.

   Indirect Taxes

   • Definition: Indirect taxes are those levied on the consumption of goods and services.
   • Collection: These taxes are collected by businesses from consumers and then remitted to the government.
   • Burden: While businesses are initially responsible for collecting indirect taxes, the ultimate burden is often passed on to consumers in the form of higher prices.
   • Examples: Sales tax, value-added tax (VAT), excise tax, and customs duties.

   Key Differences

   Feature	Direct Taxes	Indirect Taxes
   Payer	Individuals and corporations	Consumers
   Collection Method	Directly from the taxpayer	Through businesses
   Burden	Directly on the taxpayer	Ultimately on consumers
   Examples	Income tax, corporate tax	Sales tax, VAT, excise tax

A Comprehensive Guide to GST: Understanding the Indian Tax System

Introduction

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced a plethora of indirect taxes, such as VAT, excise duty, and service tax, aiming to simplify the tax system and promote economic growth.  

Understanding GST

GST is a multi-stage tax, meaning it is levied at every stage of the supply chain, from the manufacturer to the retailer. The concept behind GST is that the final consumer bears the burden of the tax. However, businesses can claim input tax credit (ITC), which is the tax paid on inputs used for business purposes. This helps to reduce the overall tax burden on businesses.

Objectives of GST

The primary objectives of implementing GST in India were:

• Simplification of the tax system: By merging multiple indirect taxes into a single tax, GST aimed to reduce the complexity of tax compliance for businesses.
• Increased efficiency and transparency: GST was expected to streamline the tax collection process, reduce corruption, and improve transparency in the tax system.
• Fairer tax system: GST aimed to create a more equitable tax system by ensuring that everyone pays tax according to their consumption patterns.
• Increased revenue generation: By broadening the tax base and improving tax compliance, GST was expected to increase government revenue.

Direct vs. Indirect Taxes

• Direct taxes: These taxes are levied directly on the income or wealth of individuals and corporations. Examples include income tax, corporate tax, and property tax.
• Indirect taxes: These taxes are levied on the consumption of goods and services. Examples include GST, sales tax, and excise duty.

Key Features of GST

• Multi-stage taxation: GST is levied at every stage of the supply chain.
• Input tax credit: Businesses can claim ITC for the tax paid on inputs used for business purposes.
• Uniform rate structure: GST has a uniform rate structure across all states and union territories, except for certain special categories of goods and services.
• Dual GST structure: GST has a dual structure, with both Central GST (CGST) and State GST (SGST) being levied on intra-state transactions. For inter-state transactions, Integrated GST (IGST) is levied.

GST Rates

GST rates in India vary based on the nature of goods and services. They can be categorized into:

• Standard rates: These are the most common rates and include 5%, 12%, 18%, and 28%.
• Concessional rates: These rates are lower than the standard rates and are applicable to certain goods and services, such as essential items and specific industries.
• Exempt goods and services: These goods and services are not subject to GST.

GST Returns

Businesses registered under GST are required to file periodic returns to report their sales, purchases, and tax liability. The frequency of returns filing depends on the turnover of the business.

GST Compliance

Adhering to GST laws and regulations is crucial for businesses. Non-compliance can lead to penalties, fines, and even cancellation of GST registration. Proper record-keeping, timely filing of returns, and accurate calculation of tax liabilities are essential for GST compliance.

Impact of GST on the Indian Economy

GST has had a significant impact on the Indian economy. It has simplified the tax system, reduced the burden on businesses, and improved the ease of doing business. Additionally, GST has led to increased revenue generation for the government and has promoted economic growth.

Conclusion

GST has been a major reform in the Indian tax system. By understanding the key features, objectives, and compliance requirements, businesses can effectively navigate the GST landscape and optimize their tax liabilities.

crafted  and compiled by 

Suresh Babu MG

GFGC Chikkaballapur