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Goods and Services Tax

An Overview

NEW DELHI-MUMBAI - BENGALURU - CHENNAI - HYDERABAD - AHMEDABAD – PUNE KOLKATA - CHANDIGARH - GURGAON – ALLAHABAD – GENEVA - LONDON


Taxes to be subsumed under GST

Central Levies

Central excise duty

Additional excise duties

ED under the Medicinal & Toiletries

Preparation Act

Service tax

Additional Customs Duty s(CVD)

Special additional duty (SAD)

Surcharges and cesses relating to

supply of goods and services.

State Levies

VAT/Sales tax

Central Sales Tax (CST)

Entertainment tax (other than levied by

local bodies)

Octroi and Entry tax

Purchase tax

Luxury tax

Taxes on lottery, betting, gambling

State surcharges, cesses relating to

supply of goods and services

GST

CGST SGST IGST


Registration

No centralized Registration

One Registration in each State

Section 10 of the Revised Model GST Law :Taxable person

Taxable Person means a person who is registered or liable to be registered

under Schedule V

Schedule V - Liability to be Registered : Every supplier shall be liable to be

registered under this Act in the State from where he makes a taxable supply of

goods and/or services.


Taxable Event – Supply

Specific Inclusive Clauses

Supplies for consideration

Supplies without consideration (Schedule I)

Deemed supply of goods / deemed supply of services (Schedule II)

Section 3 (1)(a) of the Model GST Law (1) Supply includes

(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.


Place of Supply : Local / Inter-State

Situation Place of Supply

Inter-State Supplies (Leviable to

IGST)

Intra-State Supplies (Leviable to

CGST / SGST)

If location of supplier and place of supply are in

different States.

If location of supplier and place of supply are in

same State.

Import of services/goods

Export of services/goods

Deemed to be inter-State supply of goods and

services

Export is zero rated

Concept of deemed export present

SEZ


Place of Supply of Goods

Situations Place of Supply

When movement of goods involved Location of goods at the time

movement terminates for delivery

When movement of goods not involved Location of goods at the time of

delivery

Where the goods are delivered by the supplier to a

recipient or any other person, on the direction of a

third person

Place of supply of such goods shall

be the principal place of business

of third person

Goods supplied on board a conveyance

Place where goods taken on board

When goods assembled or installed at site Place of installation or assembly


Input Tax Credit

Indian GST regime proposes to provide Input Tax Credit or ITC on goods and services which are used in the course or furtherance of business except those specified as not eligible

Cross utilization of ITC allowed except CGST not permitted to be utilized for payment of SGST and vice versa

Model Law on GST provides for matching concept


Migration of existing taxpayers

Procedure

All Taxpayers in current regime liable to get registered under GST regime

Provisional registration certificate for 6 months

Final registration on furnishing information

Provisional registration to be cancelled if no information furnished in 6 months

Person can apply for cancellation of provisional registration


Credit carry forward

CENVAT credit/ input tax credit

balance reported in return

balance of capital goods not reported in return

goods lying with agent

capital goods lying with agent

Transitional

Credit

Excise

Service

Tax

VAT

GST

Transitional Credit - Eligibility


Anti-Profiteering measure

Central Government may by law constitute an Authority or entrust an existing authority constituted under any existing law, to examine whether input tax credits availed by any registered taxable person or the reduction in the price on account of any reduction in the tax rate have actually resulted in a commensurate reduction in the price of the said goods and/or services supplied by him


Returns and Ledgers

Return/ Ledger

For To Be Filed By

GSTR–1 Outward supplies made by the Taxpayer 10th of the next month

GSTR–2 Inward supplies received by the Taxpayer 15th of the next month

GSTR–3 Monthly Return 20th of the next month

GSTR–9 Annual Return 31st December of the next Financial Year

ITC Ledger of the Taxpayer Continuous

Cash Ledger of the Taxpayer Continuous

Tax Ledger of the Taxpayer Continuous


The Way Forward

• Analyzing the impact based on Model GST Law

• Devising new business models for more efficient

shift to GST regime

• GST compliant Accounting and IT solutions

• Managing transition

12


L&S GST Support

GST Handholding - Advice on transitional provisions, Assistance in ERP implementation, Dispute resolution and representational services on implementation of GST

GST Advisory - Assessing GST readiness and providing innovative solutions, Impact Study, re-design of supply chain

Contract Review - Review contracts to ensure GST does not become cost and minimize dispute exposure.

GST Compliance Review - Comprehensive health checkup to identify risk and opportunities

GST Training – GST training for in-house personnel and supply chain partners

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