L2 | Charge of GST Composition Levy | GST Revision | CA Inter Tax September '24/January '25 Revision

Summary

This video script is from a lecture discussing the revision of India's Goods and Services Tax (GST), specifically for the ME 24 CE Intermediate exams. It covers various aspects of GST, including types of GST charges, collection, and payment responsibilities of taxpayers. The lecture also delves into the revised rates, the application of GST on different types of supplies, and the conditions for reverse charge mechanisms. Additionally, it touches on the composition levy scheme for small suppliers, explaining eligibility, tax rates, and the implications of exceeding turnover limits, providing a comprehensive overview of GST regulations and their impact on businesses.

Takeaways

• 😀 The session is part of a GST revision series for ME 24 CE Intermediate Exams, focusing on the revision of the charge of GST and composition levy.
• 📅 The revision of the Income Tax was completed by 4th March, and now GST revision has commenced.
• 🔍 The lecture discusses the types of GST applicable, including CGST, SGST, UTGST, and IGST, depending on the nature of the supply and the location.
• 📚 Section 91 of the CGST Act is highlighted, explaining where the tax is levied, collected, and paid.
• 💡 The concept of 'supply' is crucial, and the script explains the difference between interstate supply and intrastate supply, and the corresponding taxes.
• 🛒 The script mentions that certain petroleum products will attract GST, but it will be effective from a future notified date.
• 🔙 The topic of reverse charge is discussed, explaining when it applies and the implications for suppliers and recipients.
• 💼 The script touches on services provided by the government and the reverse charge mechanism, with certain exceptions.
• 🏢 Composition levy under GST is explained, aimed at small suppliers to simplify the tax process, with specific turnover limits mentioned.
• 📈 The eligibility criteria for the composition scheme, including turnover limits and specified states, are outlined.
• ⚖️ The script concludes with a discussion on the important aspects and questions to review for the upcoming exam.

Q & A

What is the main topic of the lecture series mentioned in the transcript?

The main topic of the lecture series is the revision of GST (Goods and Services Tax) for the ME 24 course, specifically focusing on the second lecture of the series.

When did the revision of income tax start as per the transcript?

The revision of income tax started from the first of February as mentioned in the transcript.

What are the different types of GST charges discussed in the transcript?

The transcript discusses various types of GST charges including CGST (Central GST), SGST (State GST), IGST (Integrated GST), and UTGST (Union Territory GST).

What is the significance of Section 91 in the context of GST as mentioned in the transcript?

Section 91 of the CGST Act is significant as it discusses where the tax is levied and collected, specifically on intrastate supply of goods, services, or both.

How is the value for levy of GST determined according to the transcript?

The value for levy of GST is determined based on the transaction value under Section 15 of the CGST Act, which includes the value of goods or services or both.

What is the maximum rate of GST that can be applied as discussed in the transcript?

The maximum rate of GST that can be applied is 20% for CGST and SGST, and 40% for IGST as per the transcript.

What are the petroleum products that will attract GST at a future notified date as per the transcript?

The petroleum products that will attract GST at a future notified date include petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas, and aviation turbine fuel.

What does reverse charge mean in the context of GST as explained in the transcript?

Reverse charge in GST means that the recipient of goods or services is liable to pay the GST instead of the supplier in certain specified transactions.

What are the conditions for a business to be eligible for the composition levy scheme under GST as per the transcript?

For a business to be eligible for the composition levy scheme under GST, their aggregate turnover should be less than Rs. 1.5 crores in specified states and Rs. 75 lakhs in other states.

What are the important points to consider regarding the composition levy scheme under GST as outlined in the transcript?

Important points regarding the composition levy scheme include the eligibility criteria based on turnover, the types of suppliers who can opt for the scheme, the tax rates applicable, and the limit on turnover after which a business must exit the scheme and move to the normal GST regime.

What are the consequences of incorrect scheme usage under GST as warned in the transcript?

The consequences of incorrect scheme usage under GST include penalties for not collecting tax from customers, affecting input tax credit, and incorrect issuance of tax invoices, which can lead to financial and compliance issues.