by The administration of GST is the responsibility of the Central Board of Indirect Taxes and Customs (CBIC), which is a statutory body under the Ministry of Finance, Government of India. The CBIC is responsible for the following functions related to GST administration:
Registration of taxpayers
Every person who is liable to pay tax under the GST regime must obtain registration by applying online on the GST portal. The registration process is simple and requires the applicant to provide basic information such as name, address, PAN, and Aadhaar number. Once the registration is granted, a unique GST identification number (GSTIN) is issued, which is used for all transactions under the GST regime.
Levy and collection of tax
The GST is a dual levy, which means that both the central and state governments have the power to levy and collect GST on supplies made within their respective jurisdictions. The CGST Act and SG ST Acts provide for the levy and collection of GST by the central and state governments, respectively. The tax is levied on the value of the supply and is collected by the supplier from the recipient of the supply. The supplier is then required to deposit the tax collected with the government within the prescribed due date.
Input tax credit
Input tax credit is a crucial component of the GST system, as it ensures that tax is levied only on the value added at each stage of the supply chain. Under the GST regime, a registered person can claim ITC on purchases made for business purposes, subject to certain conditions. The ITC can be claimed only if the supplier has deposited the tax collected with the government and the recipient has received the goods or services. The ITC can be used to set off the output tax liability of the registered person.
Filing of returns
Every registered person under the GST regime is required to file returns periodically, depending on the nature of their business. The returns must be filed electronically on the GST portal within the prescribed due date. The returns contain details of the supplies made and received during the tax period, along with the tax liability and ITC claimed. The filing of returns is a crucial aspect of GST administration, as it helps the tax authorities to verify the accuracy and completeness of the information provided by the taxpayers.
Audit and assessment
The GST law provides for audit and assessment of registered persons to ensure compliance with the provisions of the law. The audit can be conducted by the tax authorities or by a chartered accountant or a cost accountant appointed by the registered person. The audit report is then submitted to the tax authorities, who may initiate an assessment based on the findings of the audit report.
Refunds
Under the GST regime, a registered person can claim a refund of tax paid on supplies made or received in certain situations, such as exports, deemed exports, and inverted duty structure. The refund process is initiated by filing an application electronically on the GST portal. The application is then verified by the tax authorities, who may issue a refund order if the claim is found to be eligible.
Appeals and adjudication
The GST law provides for a robust system of appeals and adjudication to resolve disputes between the taxpayers and the tax authorities. A person aggrieved by an order of the tax authorities can file an appeal with the appropriate appellate authority within the prescribed time limit. The appellate authority will then examine the appeal and pass a final order, which is binding on both the taxpayer and the tax authorities.
