(GST) Goods and Services Tax

Concept of GST
Historical reforms
Goods and Services Tax (GST) is a historical proposed system of indirect taxation in India merging most of the existing indirect taxes into unified system of taxation. It was introduced as The Constitution (One Hundred and First Amendment) Act 2016. The GST is administered & governed by GST Council and its Chairman is Union Finance Minister of India Arun Jaitley.

Replacing all Central & State Indirect Taxes
GST would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the Central and State Governments.
The GST will subsume 17 Central as well as State levies including Excise, Service Tax, CVD, SAD, VAT, CST, Octroi, Purchase Tax, Entertainment Tax, Luxury Tax and various surcharges and cesses making the movement of goods cheaper and seamless across a market holding 1.3 billion consumers, about four times the U.S. population. It would be far simpler than the current system, where a good is taxed multiple times at different rates. The underlying principle is to tax goods at the point of consumption rather than production.

No double taxation
With the implementation of GST, consumers will not be subjected to double taxation. All taxes that are levied while purchasing good will include both the Central Government’s taxes as well as the State Government’s taxes. The move would deter State Governments from indiscriminately increasing taxes fearing public backlash.

GDP Booster
GST can boost economic growth by as much as 2 percentage points, according to Finance Minister Arun Jaitley. Greater tax compliance has the potential to boost revenues for the government.

Exclusions from GST
Taxes which are not subsumed under GST are Basic Custom Duty, Tobacco Products (Partly), Petroleum Products (Petroleum Crude, High Speed Diesel, Motor Spirit, Natural Gas, and Aviation Turbine Fuel), Electricity and Power, Real Estate-Stamp Duty, Clean Energy Cess, Alcohol for human consumption. The Central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.

Advent of Laws
Four crucial GST Bills i.e. CGST (for Intra-State transactions), IGST (For Inter- State transactions), UTGST (For Intra-State Transactions in UTs) and Compensation Bill (For compensation of loss from GST by Centre to State) have been passed in Lok Sabha on 29-Mar- 17.The Council has issued 9 Goods and Services Tax Rules viz. Composition Rules, Valuation Rules, Transition Rules, Input Tax Credit Rules, Registration Rules, Invoice Rules, Payment Rules, Return Rules and Refund Rules for public comments. States will now take up the SGST Bills in in their respective assemblies for adoption, which would be more or less the replica of the CGST and UTGST Bills

Rate Structure
Expected Rate Structure under GST-To be finalized in Coming Council Meetings
Slab Goods Examples
0% Exemption Items goods of mass consumption viz. food grains, milk etc.
5% Essential items Goods which are exempt from Excise duty and attract VAT @5% such as edible oil, spices, tea, coffee, etc.
12% Lower Standard rate Where current tax incidence between 9% to 15% such as computers, processed food, etc
18% Higher Standard rate Where current tax incidence between 15% to 21% such as soaps, oils, shaving sticks, etc.
28% Luxury/ white goods Generally, goods presently attracting 12.5% excise duty and 14.5% VAT
28% + Cesses Aerated drinks, pan masala, luxury cars, tobacco products and other products Goods presently attracting taxes in the range of 40% - 60%
Services–Likely to have three rates i.e. basic rate of 12%, standard rate of 18% and luxury rate of 28%
All eyes are now on fitment of various goods and services in these tax slabs, which will be taken up by the GST Council in its next meetings for the new indirect tax system to be rolled out from July 1.

Challenges ahead
  • Fitment of rates
  • Administration
  • IT Infrastructure
  • Fear of Inflation
  • Competency of Laws
  • Dispute Resolutions
  • Rural India-a big threat
  • Place of taxation
  • Monitoring inter-State supplies
  • Political hurdles
Opportunities in GST
GST regime will be bursting up with Ocean of Opportunities for all Professionals, Manager Accounts, Entrepreneurs, CEOs, CFOs, Revenue Officials, CA Final Students and Journalists. We can only say that “Today’s Learning will be Tomorrow’s Earnings”.
The opportunities in GST may be summarized as under-

1. Global Opportunities
  • Tax Advisory Services
  • International Research Issues
  • Knowledge Process Outsourcing
  • Information & Knowledge Sharing
  • Capacity Building Services "process of developing and strengthening the skills, instincts, abilities, processes and resources that organizations and communities need to survive, adapt, and thrive in the fast-changing world."
  • Technology Support Services
2. Audit and Assurance Service
  • Internal Review of Change Management
  • Internal Controls
  • Internal Audit of Compliance
  • Checklist for Statutory Audit
  • Assistance in Department Audit
3. Operational Consultancy
  • Legislation Impact Analysis, Place of Supply Rules
  • Analysis of Costs and Price/ Margin Restructuring
  • Restructuring Supply Chain Management
  • Comparative Study of Laws
  • Understanding Principle of Destination
  • Financial Management & Competition Analysis
  • Review of Existing Contracts
4. Network Support and Infrastructure
  • Synchronising IT Systems & Old Data
  • Strong Management Information System
  • System Reconciliations
  • Data Integration between Centre & States
  • Automation of Returns and other Utilities at Centre as well as States
  • Updating Amendments in IT Systems
  • Data Management for State Jurisdiction
5. Accounting and Taxation Services
  • Treatment of Incentives
  • Process Documentations & Accounting Manuals
  • Branch Transfers
  • Budgetary Controls
  • Control & Dispute Settlement
  • Refunds, Appeals and Adjudications
  • Point of Taxation
6. Compliance Requirements
  • Compliances under State Jurisdictions
  • Registration under New Scheme
  • Online Filing of Return for each State Jurisdiction
  • Evaluation of Tax Liability with credit set off
  • Statutory Compliances and Record Keeping
  • Filing of Declarations
  • Export Management
7. Transitional Support
  • Deregistration from existing laws
  • Managing Pending Litigations
  • Review and Certification of stock on date of Transition
  • Knowledge Sharing & Capacity Building
  • Credit Analysis & Utilization
  • Comparative Valuation under GST
8. Centre/State Support Service
  • Conscripting Legislation & Rules/Procedures
  • Reconciliation with Clearing House
  • Monitoring Transactions & Revenues
  • Coordination between Centre/States
  • Cross-Verification with Other Acts
  • Training and Education
  • Fixing rate based on RNR and Review
Certificate Course in GST (Syllabus for 12 sessions) by CA Ashok Batra
- Schedule II - Goods or Services
- Composition Scheme for payment of tax
2 1. Meaning of Supply
- Inter-state supply of goods or services
- Zero-rated supply
- Mixed & Composite Supply
- Schedule I – Supply without consideration
- Schedule III – Neither supply of goods nor services
2. Meaning of Taxable person
3 1. Place of Supply of goods or services or both
2. Provisions for e-commerce / Job Work / Works Contract
4 1. Input Tax Credit
- Including concept of ISD
5 1. Registration
2. Time of Supply
3. Payment of Tax
6 1. Value of taxable supply of goods & services
2. Tax Invoice / Debit note / Credit note
7 1. Transitional provisions
2. Accounts & Records
3. Miscellaneous Provisions
- Anti-profiteering Measures
8 1. Returns
2. Refunds
3. Assessments
4. Audits
9 1. Offences & Penalties
10 1. Demand & Recovery
2. Appeals & Revision
11 1. Impact of GST on various sectors
- Manufacturing
- Trading
12 1. Impact of GST on Service Sector
- Hospitality / Tourism
- Banking
- Construction & Real Estate
- Professionals such as CA / Advocates
Certificate Course in GST (Syllabus for 12 sessions) by CA Virender Chauhan
Sessions Topics
S.1 Concept of GST-Overview
  • Introduction and Background
  • Constitutional 101 st Amnd. Act,
  • Powers and Functions of GST Council,
  • Concept of Uniform Tax,
  • Origin to Destination, Exclusion of J&K-Impact, Important Definitions
  • Practical examples
  • FAQ/ MCQ
S.2 Concept of Supply
  • Inclusions & exclusions;
  • Supplies even if made without consideration-whether taxable?
  • Supply of goods or supply of services-ambiguity resolved;
  • Negative list;
  • Govt. services/ supplies;
  • Composition levy;
  • Taxability of supplies on reverse charge basis
  • Practical examples
  • FAQ/ MCQ
S.3 Time and Value of supply
  • Time of supply of goods;
  • Time of supply of services;
  • Concept of voucher;
  • Valuation of supply-
    1. Between distinct or related parties,
    2. When consideration is not wholly in money,
    3. Buy one get one free,
    4. Supply through an agent,
    5. Special situations-money changing etc.
  • Practical examples
  • FAQ/ MCQ
S.4 Input Tax Credit
  • Credits during transition
  • Credits to new registrants
  • Credit on capital goods
  • Non-creditable items
  • Credit mechanism for banking company
  • Credits on works contract & job work
  • Input service distributor (ISD)
  • Practical examples
  • FAQ/ MCQ
S.5 Registration
  • Migration of existing taxpayers
  • Threshold limits
  • Concept of aggregate turnover
  • Person not liable for registration
  • Compulsory registration-irrespective threshold
  • Casual taxable person and Non-resident taxable person
  • Amendment, Cancellation and Revocation of registration
  • Penalty for non-registration
  • Practical examples
  • FAQ/ MCQ
S.6 Accounts and Records, Audit and Assessments
  • Kind of records to be maintained
  • Electronic format
  • Audit of accounts
  • Period of retention
  • Self-assessment
  • Provisional assessment
  • Best-judgement assessment
  • Audit by Commissioner
  • Special audit by CA’s
  • Practical examples
  • FAQ/ MCQ
S.7 Payment and Refund of Tax
  • Modes of payment
  • Types of Electronic Ledgers- Cash, Credit, Liability Register
  • TDS/ TCS
  • Refunds-Whether Automatic?
  • Situations where refunds are allowed
  • Provisional refund
  • Documentation for refund
  • Practical examples
  • FAQ/ MCQ
S.8 Filing of returns
  • Types of returns
  • First return
  • Matching concept
  • Annual return
  • Fee for late return
  • Role of GST practitioner
  • Practical examples
  • FAQ/ MCQ
S.9 Miscellaneous Provisions
  • GST Compliance rating
  • Anti-profiteering measures
  • Goods sent to a job-worker
  • Deemed exports
  • Rectification of errors
  • Service of Notice
  • Compensation to States
Offences and Penalties
  • Various offences under GST law
  • Penalties thereof
  • Imprisonment in certain cases
  • Practical examples
  • FAQ/ MCQ
S.10 Place of Supply-IGST
  • Concept of IGST
  • Place of supply of goods-within India
  • Place of supply of goods-Import/ Exports
  • Place of supply of services-within India
  • Place of supply of services-Import/ Exports
  • Practical examples
  • FAQ/ MCQ
S.11 Transitional Provisions
  • Input tax credit on inputs held in stock on appointed date
  • Goods sent on job-work
  • Input tax credit even if no duty paying documents of Central taxes to VAT dealers
  • Goods in transit
  • Goods returned in GST regime
  • Treatment of continuing contracts
  • Other transitional issues
  • Practical examples
  • FAQ/ MCQ
S.12 Impact on industries
  • Logistics Sector
  • Aviation Sector
  • FMCG Sector
  • Banking Sector
  • Real Estate Sector
  • Infrastructure Industry-Energy Sector
  • Telecommunication Sector
  • Practical examples
  • FAQ/ MCQ
Some special transactions
  • Consignment sales/ stock transfers
  • Supply between related parties or distinct parties, captive consumption
  • AMC, repairs & warranty contracts
  • Gifts and samples; free supplies to employees
  • Donations
  • Free imports
  • E-com operators
  • Practical examples
  • FAQ/ MCQ
Study Material - Synopsis & Videos

Synopsis of CGST Bill 2017 By CA Ashok Batra
Demo Videos of CGST Bill 2017 By CA Ashok Batra

CGST Bill Digest By CA Virender Chauhan
IGST Bill Digest By CA Virender Chauhan
UTGST Bill Digest By CA Virender Chauhan
Compensation to States Bill Digest By CA Virender Chauhan
GST Demo Videos By CA Virender Chauhan

to know more details about class schedule & fees details
GST Input Tax Credit Rules
1.Documentary requirements and conditions for claiming input tax credit

(1) The input tax credit shall be availed by a registered person, including the Input Service Distributor, on the basis of any of the following documents, namely:-
(a) an invoice issued by the supplier of goods or services or both in accordance with the provisions of section 31;
(b) a debit note issued by a supplier in accordance with the provisions of section 34;
(c) a bill of entry;
(d) an invoice issued in accordance with the provisions of clause (f) of sub-section (3) of section 31;
(e) a document issued by an Input Service Distributor in accordance with the provisions of sub-rule (1) of rule invoice.7;
(f) a document issued by an Input Service Distributor, as prescribed in clause (g) of sub-rule (1) of rule 4.

(2) Input tax credit shall be availed by a registered person only if all the applicable particulars as prescribed in Chapter ---- (Invoice Rules) are contained in the said document, and the relevant information, as contained in the said document, is furnished in FORM GSTR-2 by such person.

(3) No input tax credit shall be availed by a registered person in respect of any tax that has been paid in pursuance of any order where any demand has been raised on account of any fraud, willful misstatement or suppression of facts. Click here to read more
GST Transition Rules
1. Application in respect of tax or duty credit carried forward under any existing law or on goods held in stock on the appointed day

(1) Every registered person entitled to take credit of input tax under section 140 shall, within sixty days of the appointed day, submit an application electronically in FORM GST TRAN1, duly signed, on the Common Portal specifying therein, separately, the amount of tax or duty to the credit of which the said person is entitled under the provisions of the said section: Provided that where the inputs have been received from an Export Oriented Unit or a unit located in Electronic Hardware Technology Park, the credit shall be allowed to the extent as provided in sub-rule (7) of rule 3 of the CENVAT Credit Rules, 2004: Click here to read more
GST Valuation Rules
1. Value of supply of goods or services where the consideration is not wholly in money

Where the supply of goods or services is for a consideration not wholly in money, the value of the supply shall,
(a) be the open market value of such supply;
(b) if open market value is not available, be the sum total of consideration in money and any such further amount in money as is equivalent to the consideration not in money if such amount is known at the time of supply;
(c) if the value of supply is not determinable under clause (a) or clause (b), be the value of supply of goods or services or both of like kind and quality;
(d) if value is not determinable under clause (a) or clause (b) or clause (c), be the sum total of consideration in money and such further amount in money that is equivalent to consideration not in money as determined by application of rule 4 or rule 5 in that order. Click here to read more
GST Composition Rules
1. Intimation for composition levy

(1) Any person who has been granted registration on a provisional basis under sub-rule (1) of rule Registration.16 and who opts to pay tax under section 10, shall electronically file an intimation in FORM GST CMP-01, duly signed, on the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, prior to the appointed day, but not later than thirty days after the said day, or such further period as may be extended by the Commissioner in this behalf: Provided that where the intimation in FORM GST CMP-01 is filed after the appointed day, the registered person shall not collect any tax from the appointed day but shall issue bill of supply for supplies made after the said day.

(2) Any person who applies for registration under rule Registration.1 may give an option to pay tax under section 10 in Part B of FORM GST REG-01, which shall be considered as an intimation to pay tax under the said section. Click here to read more
GST Revised Refund Rules
1. Application for refund of tax, interest, penalty, fees or any other amount

(1) Any person, except the persons covered by notification issued under section 55, claiming refund of any tax, interest, penalty, fees or any other amount paid by him, may file an application in FORM GST RFD-01 electronically through the Common Portal either directly or through a Facilitation Centre notified by the Commissioner:
Provided that any claim for refund relating to balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 may also be made through the return furnished for the relevant tax period in FORM GSTR-3, FORM GSTR-4 or FORM GSTR-7, as the case may be: Provided further that in case of export of goods, application for refund shall be filed only after the export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 1962 in respect of such goods:
Provided also that in respect of supplies to a Special Economic Zone unit or a Special Economic Zone developer, the application for refund shall be filed by the supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorized operations, as endorsed by the specified officer of the Zone:
Click here to read more
Traders and dealers who have not completed their registration process can continue to do their business under the GST regime from July 1 using the provisional ID, a top government official said. The 15-digit provisional ID would work as the Goods and Services Taxpayer Identification Number (GSTIN) for the first initial few months, Revenue Secretary Hasmukh Adhia said. In an interview to PTI, Adhia sought to assuage industry concerns about the GST registration process saying that businesses need not panic and need not rush for registration as the dealers and traders who have secured a provisional ID can conduct business in the new indirect regime. "You can continue to do your business using the provisional ID and quote the GSTIN in all businesses. They will not have to wait for final GSTIN to come. Even if they have not given their details fully, from July 1 they can continue their business. People should not panic," he said. Of the 80.91 lakh excise, service tax and VAT assessees, 65.6 lakh, or 81 per cent, have already migrated to the GSTN portal. However, of this 65.6 lakh, as many as 13 lakh business have not completed the second stage of the registration process which entails the verification process. When a business registers under GST, it is given a provisional GSTIN. After that, in the second stage, the business has to log in to the GSTN portal and give details of its business, like the main place of business, additional place of business, directors and bank account details. Adhia said the government has done away with the requirement of verification of registration through digital signature, or by generating electronic verification code (EVC). "They don't have to give digital signature or e-sign it now. They can just save it and automatically an e mail will be sent to them saying all their details are received and it is complete. Once they have saved the details, they will have no other worry. Even if they don't receive the e-mail immediately, they don't need to panic. They can still continue to do their business from July 1," Adhia said. However, the details should be given to the GSTN portal "as early as possible". Adhia said that the registration of new businesses will start from June 25 and they will have 30 days time for registration. The window for taxpayers wanting to migrate on GSTN portal will open on the same day. "They should not rush on the same day on June 25. We would appeal to all to keep their papers ready and do it in time," he said. The biggest tax reform since independence, GST will be rolled out on the midnight of June 30 and make India a single market for seamless movement of goods and services. The GST subsumes 16 different levies, including excise, service tax and VAT.
Makers of consumer durables say they expect the market to take at least 2-3 months to normalise operations post the implementation of Goods and Services Tax from July 1. Migration to the new indirect tax regime, they said, is causing 'discomfort' among their trade partners who are busy clearing old stock to avoid losses before the new indirect tax regime kicks in next month. "GST has caused a sense of discomfort amongst the traders as they are worried about the cash flow that might occur during GST implementation therefore, consumer-centric offers are being introduced," Panasonic India Head-Channel Operations Ajay Seth told PTI. Explaining the current situation in the industry value chain, Godrej Appliances Business Head and Executive Vice President Kamal Nandi said that if distributors were to carry forward stocks to the GST regime from VAT regime, they would lose around 3-4 per cent margin. "Right now they are liquidating their stock. If they do not have any stock, they are purchasing it. They are not upstocking anything," he added. According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the situation could take up to three months to normalise after the implementation of GST. "Business will be normalised over the next two-three months of operations," CEAMA President Manish Sharma. Nandi ruled out any panic in the market saying informed decisions and planned strategies are being executed, and companies are supporting their dealer partners. "We have given some sell out schemes to reduce stocks and they (trade partners) would purchase from July 1," he added. Expressing similar views, Videocon COO C M Singh said traders are focusing on liquidating their stocks. "In order to help out traders in the given situation, we are extending the excise paid bills," he added. Under the GST regime, most of the home appliances and consumer durables will attract 28 per cent levy barring some items such as air coolers which are under the 18 per cent bracket.
"How would you treat a car given to employees for their use under GST (goods and services tax)?" a tax head of a car company asked me. 'Why should it be such a big problem?' I wondered. Until I realised the nuances of such a transaction. Is the car capitalised in the books of the company? Is it registered in the company's or employee's name? As per the company's HR policy, is the employee allowed personal use of the car? If yes, is there any way to identify that personal use? Are there different entitlements, different models or variants of cars specified for each level in the organisational hierarchy? And many more queries. Very often, we believe the employer-employee relationship to be beyond the purview of indirect tax. The company, we figure, is only a juridical person and operates through the acts of its employees. So, the employee and the company should not be treated as different persons to charge tax on every transaction between them. But some of the entries in the GST law tend to defy this logic. Schedule 3 of the Central GST (CGST) Act 2017 deals with activities or transactions that shall not be treated as supply. One entry specifies "services provided by an employee to the employer in the course of or in relation to his employment". So, the consideration paid by an employer to the employee i.e., salary paid for rendering services in the course of employment would not be taxable under GST. But what all can be treated as services in the context of employment? Will components covered in the cost-to-company (CTC) of an employee house rent allowance, dearness allowance, etc. not attract GST, since this would be pure consideration to an employee for his employment? Also, what would be the treatment of, say, club fees reimbursed over and above the CTC? If an employee of an IT company acts as a DJ at an office party and gets paid for the service, would it not be services rendered in the course of his employment? Would the same be treated as a service liable to GST? The GST law complicates the employer-employee relationship further by way of Entry 2 in Schedule 1 of the CGST Act, "Supply of goods/services made without a consideration between related persons, when made in the course or furtherance of business, would be Further, the law deems the employer and employee to be related persons. So, even if there is no consideration for the goods/services provided to an employee, the supply could still attract tax. Would this mean that laptops provided to employees would get covered, as these are provided in the furtherance of business? Well, they shouldn't. Why? Because there must exist an element of 'supply' in the transaction. Supply mostly occurs when someone loses possession or ownership or both. Barring exceptions, typically this test holds good. When a laptop is given to an employee, he gets its possession, which he retains till he is in employment. But would that qualify as a supply? If it does, then even the workstation allotted to the employee must qualify as one. This makes the scenario absurd. However, all things are not as black and white. If we take the example of free coffee from a vending machine provided to an employee, the answer may not be so simple. Another twist in the tale is that the proviso to Entry 2 in Schedule 2 excludes from the definition of 'supply' gifts up to Rs. 50,000 provided to an employee in a financial year. Hence, gifts above Rs. 50,000 would be liable to GST and a company would be required to keep a record of gifts provided to each employee. But would showing appreciation in the form of cash rewards or vouchers as opposed to a gold coin, for instance be considered as a gift? Or would it be considered for services of employment provided by the employee? The employee and employer relationship revolves around many such examples. It is the play of words like 'in furtherance of', 'in relation to' and 'in the course of ' that makes the difference. So, it is necessary to understand each transaction and view it under the lens of the GST law. Sometimes it may be prudent to tweak the HR policies and CTC structures, so as to make the compliance under GST simpler. Who said tax managers and tax consultants would lose relevance under GST?
Filing a tax return on the Goods and Services Tax Network (GSTN) portal by an entity will cost Rs. 55 a month but the state will bear this burden. The user charge for all eight million taxpayers will be borne by the Union and the state governments, to keep revenue flowing for GSTN, the company charged with providing the information technology (IT) backbone for the reform, without burdening the assessees. GST is set to be rolled out from Friday and will absorb a slew of indirect taxes including service tax, central excise, value added tax, central sales tax and octroi. GSTN, officially a private body (it was formed at the government's behest and support), has estimated the total cost of the project at Rs. 3,000 crore. That covers salaries, interest cost, security operations for five years of operation and the ongoing development period of two years. It awarded a contract worth Rs. 1,320 crore to Infosys for building and maintain the IT network, crucial for implementing the proposed system across the country, for five years. GSTN's job is to provide a common platform for registration, a filing of returns and e-payment. It will also integrate the common GST portal with the tax administration systems of Centre and states. The Centre and states will pay Rs. 550 crore to GSTN for the expenses incurred this financial year. The budget proposal was approved by the GST Council in its recent meeting. "We will get money on a per-taxpayer basis for all the cost we are incurring and other expenses that will come up. We have worked out the per-taxpayer cost," said Navin Kumar, chairman, GSTN. It had earlier proposed to charge a user fee for filing a return using the portal. The government rejected the proposal. 'The government disagreed as taxpayers have never been charged anything for filing a return. It asked for the number of taxpayers and said they will pay," said Kumar. The cost of each taxpayer will be split between the Centre and states on a monthly basis. The cost per state will be calculated on the basis of the number of taxpayers in that state and will be shared with the Centre. With that, the Centre will pay the GSTN a little over Rs. 23 crore a month. The total cost was arrived by taking into account the slightly over eight million taxpayers. "Using the same formula, we will calculate the cost for next year as well," said Kumar. The Rs. 550 crore revenue will go towards repaying a Rs. 550 crore loan from IDFC and to pay, Infosys, besides salaries for the staff. The GSTN had taken the term loan earlier this year and will further take a working capital loan. The government has provided a guarantee for the loan, used for developing the service and hardware. The loan is needed only till rollout of the portal. The revenue model of charging on a per-user basis will help it sustain afterwards. GSTN was incorporated at end-March 2013, as a private limited company, with government shareholding of 49 per cent and private shareholding of 51 per cent. ICICI Bank, HDFC Bank, LIC Housing and NSE Strategic Investment Corporation hold at least 10 per cent stake each. The other 49 per cent is held by the central and state governments, each holding 24.5 per cent. About 6.6 million taxpayers have already migrated to the GST portal and received provisional identification. The window for migrating was earlier closed for a while; it reopened for new taxpayers last week. It is compulsory for dealers with an annual turnover of more than Rs. 20 lakh to register.