Input Tax Credit under Goods and Services Tax

Input Tax Credit under Goods and Services Tax Law (“GST”) Decoding the regulation…. CA Ankit Chande 29 th April, 2017 Aurangabad Branch of WIRC of ICAI

GST “Dual” Model : Example Transaction A –B B-C C–D Net Effect Sale Price 100 200 300 CGST Collected 10 20 30 30 SGST Collected 10 20 30 30 Output GST 10 20 30 60 Input GST 0 (-)10 (-)20 (-)30 CGST to Pay 10 10 10 30 Output SGST 10 20 30 60 Input SGST 0 (-)10 (-)20 (-)30 SGST to Pay 10 10 10 30

Dual GST : Basics LOCATION OF PLACE OF SUPPLY SUPPLIER Supply Tax State “A” Intra State CGST + SGST State “A” State “B” Inter State IGST Country “P” INDIA Imports IGST (CVD/RCM) INDIA Country “Q” Exports Zero Rated

Existing Cenvat Credit Scheme Shortcomings Non-fungibility of input tax credit: • Manufacturers / Traders not eligible for input CST credit • Service provider not eligible for input VAT credit • Service provider not eligible for credit of SAD paid on imports • Traders not eligible for credit of input excise duty and service tax Restrictive tax credits – non admissible tax credits

Input Tax cedit – Essential Conditions Goods/ Services are received Not listed as ineligible for credits Tax Invoice received Vendor PAID the tax either by CASH or by ELIGIBLE credit Vendor uploaded the tax to the customers account

Credit – Further Points Rules of Preference for Adjustment of Credit Prescribed. Each State a separate basket Refund only in case of inverted rate structure and exports – all other cases, only carry forward excess credit

ITC under GST - Important definitions and concepts January 19, 2017 7

Meaning- Capital Goods, Input service Capital goods means [sec 2(19)] : • Goods, the value of which is capitalized in the books of accounts of the person claiming the credit; and • Which are used or intended to be used in the course or furtherance of business Input means [sec 2(59] : • Any goods other than capital goods, • Used or intended to be used by a supplier for in the course or furtherance of business Input Service means [sec 2(60)] : • Any service; • used or intended to be used by a supplier in the course or furtherance of business

Meaning of Output tax, Outward supply, Taxable supply Output tax in relation to a taxable person means [sec 2(82)] : • CGST/SGST chargeable under this Act; • On taxable supply of goods/services made by him or by his agent • Excludes tax payable by him on reverse charge basis Outward supply in relation to a person means [sec 2(83)] : • Supply of goods and/or services • Whether by sale, transfer, barter, exchange, license, rental, lease or disposal or any other means • Made or agreed to be made by such person • In the course or furtherance of business, Taxable supply means [sec 2(108)] : • A supply of goods and/or services • Which is chargeable to tax under this Act

Exempt Supplies and Non-Taxable supplies Exempt Supply means [sec 2(47)]: • Supply of any goods and / or services which are not taxable under this Act; and • Includes: such supply of goods and / or services which attract nil rate ; or which may be exempt from tax u/s 11 or u/s 6 of IGST Act Non-taxable supply means [sec 2(78)] : • A supply of goods or services • Which is not chargeable to tax under this Act

Zero Rated Supplies [Sec. 16 of IGST Act] Zero Rated Supply means : • • Following taxable supply of goods and/or services – Export of goods and/or services; or Supply of goods and/or services to a SEZ developer or an SEZ unit Subject to provisions of sub section (5) of section 17 of the CGST Act, credit of input tax may be availed for making zero rated supplies, even if that supply is an exempt supply

Meaning of Input Tax Credit (‘ITC’) Input Tax Credit means credit of ‘input tax’ as defined in [Section 2(62)] Input Tax in relation to taxable person: [Sec 2(62)]: Means • IGST (Including that on import of goods) • CGST; and • SGST Charged on any supply of goods or services to him Includes Excludes Tax payable under section Tax paid under section 9 under 8(3) Under reverse charge composition levy

Exclusion from ITC [Section 17(5)] Particulars Credit restricted on Motor vehicles All Motor Vehicle and other conveyance except when they are used for: and other • conveyance [Section 17(5)(a)] • Making the following taxable supplies Further supply of such vehicles or conveyance; or Transportation of passengers ; or Imparting training on driving, flying, navigating such vehicles or conveyance Transportation of goods

Exclusion from ITC [Section 17(5)] Particulars Specified supply of goods or services [Section 17(5)(b)] Credit restricted on • Food and beverages • Outdoor catering • Beauty treatment • Health services • Cosmetic and plastic surgery • Membership of a club, Health and Except where said category of inward supply of goods or services are used for making an outward supply of goods or service of same category or as an element of composite or mixed supply fitness center • Rent-a-cab • Life insurance • Health insurance Except where the government notifies the services which are obligatory for an employer to provide to its employees Travel benefits extended to employees on vacation such as leave or home travel concession

Exclusion from ITC [Section 17(5)] Particulars Credit restricted on Works contract services When supplied for construction of immovable property (other than plant and machinery) [Section 17(5)(c)] except where it is an input service for further supply of works contract service Goods or services When it is received by a taxable person for construction of an immovable [Section 17(5)(d)] property on his own account (other than plant and machinery) even when used in course or furtherance of business

Exclusion from ITC [Section 17(5)] Construction includes : Re-Construction Renovation Additions Alterations Repairs To the extent capitalization, the said immovable property Plant and Machinery means : Apparatus Equipment Pipelines Machinery Telecommunication tower fixed to earth by foundation or structural support that are used for making outward supply and includes such foundation and structural supports but excludes land, building or any other civil structures ITC of Works contract resulting into ‘plant and machinery’ is admissible Whether ITC on works contract for completion & finishing services, repairs, maintenance, renovation or restoration in respect of immovable property are also excluded from ITC?

Exclusion from ITC [Section 17(5)] Particulars Credit restricted on Goods and/or services Tax paid under Section 10[Composition levy] - [Section 17(5)(e)] Used for personal consumption - [Section 17(5)(f)] used for personal consumption - [Section 17(5)(g)] Goods which are lost, stolen, destroyed, written off or disposed of by way of gift or free samples- [Section 17(5)(h)] Any tax paid in terms of the following : [Section 17(5)(i)] • Tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any wilful – misstatement or suppression of facts [Section 67] • Detention and release of goods and conveyance in transit [Section 89] • Confiscation of goods or conveyance and levy of penalty [Section 90] Central or a State government may, by notification issued in this behalf, prescribe the manner in which the credit referred above me attributed - [Section 17(6)]

ITC Availment 19

Persons Eligible for ITC Person Eligible to take ITC: • Registered Taxable person [Section 16 of CGST/ SGST Act] • Person making zero rated supplies [Section 16(3) of IGST Act] Person Not Eligible to take ITC: • Non-registered taxable person • Person having aggregate turnover below threshold limit • Supplier under Composition Scheme • Supplier exclusively engaged in making exempt or non-taxable supplies • Agriculturist • Government or any local authority making supplies specified in Schedule IV to MGL 20

Manner of availing ITC [sec 16(1)] - Every registered taxable Person - subject to such conditions and restrictions as may be prescribed; and - Within the time and manner specified in section 49 Entitled to take ITC admissible to him Said amount to be credited to the electronic credit ledger of such person 21

Conditions for availing ITC [Section 16(2)] Registered person shall not be entitled to take credit of any input tax in respect of any supply of goods and/or services to him unless: He is possession of: • • • Tax invoice Receipt of goods and / or services Debit note Such other tax paying document as may be prescribed - Can ITC be claimed on tax paid on advance? Payment of tax charged in respect of such supply to credit of appropriate government in: • Cash; or Furnished return u/s 34 - Whether this refers to return filed by : Vendor ; or Assesse Utilization of ITC admissible in respect of said supply Where goods against an invoice are received in instalments / lots – ITC will be available only after receipt of last lot / instalment Rule 1(2) of Draft GST Rules –All particulars in the Invoice –is it needed Issued by supplier registered under the Act •

Conditions for availing ITC [Section 16(2)] Explanation as to term receipt of goods [Explanation to sec 16(2)]: • For the purpose of receiving goods it shall be deemed that the taxable person has received the goods where: the goods are delivered by the supplier to a recipient or any other person on the direction of such taxable person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise Q 27 of Chapter of FAQs released by CBEC on 21. 09. 2016 clarifies that: • In ‘Bill to – ship to’ scenario, ITC on goods will be available to person on whose order the goods are delivered to third person

Conditions for availing ITC [Section 16(2)] No input tax credit of tax paid on account of fraud, willful misstatement or suppression of facts will be allowed. (Rule 1(3) of Draft Input Tax Credit Rules) Where recipient fails to pay the supplier value of the goods & tax thereon of goods or services within 180 days from the date of issuance of invoice by the supplier, following consequences follows : • Amount of ITC credit taken on such services shall be added to recipient’s output tax liability ; and • Interest thereon will have to be discharged In addition to output liability, interest from the date of availment of credit till date of addition in the output tax liability.

Denial of ITC and Time limit [Section 16(3) & 16(4)] Input tax credit will not be allowed to the registered taxable person on the tax component who has already claimed depreciation on the tax component of the cost of capital goods under the provisions of Income Tax Act, 1961 (43 of 1961) A taxable person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods and/or services after: • Filing of the return u/s 39 for the month of September following the end of financial year to • which such invoice or invoice relating to such debit note pertains; or Furnishing of the relevant annual return Whichever is earlier No credit after the expiry of one year from date of issue of invoice relating to such supply

Apportionment of ITC and blocked credits January 19, 2017 27

ITC – Business and other purposes [Section 17(1)] Goods/ Services Not defined Used for Business purpose Input tax attributable to business purpose allowable Other purpose Input tax attributable to other purpose NOT allowable Central or State Govt. may by notification prescribe the manner for attributing the above credit [Section 17(5)] Does this provision apply to ITC related to ‘capital goods’?

ITC – Exempt Supplies [section 17(2)] Goods / Services Zero rated supply is defined u/s 2(111) r. w. section 16 of IGST Act to mean : Used for For -Taxable supplies - Zero Rated Supplies For Exempt supplies - It shall include supplies on which recipient is liable to pay tax under Reverse charge Input tax attributable to: taxable supplies including Zero rated supplies allowable ITC is not allowed in respect of input tax attributable to exempt supply Central or State Govt. may by notification prescribe the manner for attributing the above credit [Section 17(5)] • Exports of goods/service • Goods/service supplied to SEZ units / developer of SEZ Zero rated supply does not include goods/services supplied to EOU Does this provision apply to ITC related to ‘capital goods’? [ITC RULES]

ITC – Taxable and exempt supplies Input Goods & Input Services [Rule 7] Procedure to calculate the amount of input tax to be revered in respect of common inputs used for both taxable & tax free supplies is as follows: Calculate: C 2 = C 1 - T 4 (PARTLY ALLOWED) D 1= Common ITC attributable towards exempt supplies. D 2= Common ITC attributable towards T= Total input tax on ALL inputs non-business supplies. T 1=ITC on inputs used exclusively for non-business supplies. (TOTALLY DISALLOWED) (The amount equal to ‘D 1’ and ‘D 2’ T 2=ITC on inputs used exclusively for exempt supplies. (TOTALLY shall be added to the output tax DISALLOWED) liability of the registered person) T 3= ITC inadmissible u/s 17(5). (TOTALLY DISALLOWED) C 1= ITC credited to the electronic credit ledger. D 1=C 2*F (DISALLOWED) C 1 = T- (T 1+T 2+T 3); E T 4 = ITC on inputs used exclusively for taxable supplies including zero rated supplies(TOTALLY ALLOWED) D 2 = 5% of C 2 ? ? (DISALLOWED) All T, T 1, T 2, T 3 & T 4 to be declared by the registered person in FORM GSTR-02 Total turnover of the that tax period (F) Exempt turnover of the that tax period Out of ITC credited to credit ledger account (i. e. C 1), the amount of (E) ITC on inputs used for common purpose i. e. common ITC is C 2

ITC – Taxable and exempt supplies Capital Goods [Rule 8] The amount of input tax in respect of capital goods used commonly for both taxable & tax free supplies, denoted as ‘A’, shall be credited to the electronic credit ledger and the useful life of such goods shall be taken as five years: A= ITC on invoice of new asset Available ITC of such goods shall be: A = ITC on invoice of asset Less: 5% per qtr (or part thereof) for already used life. Total Credits of all new assets added to this system during the tax period. (Tc) Tc= ∑A’s of all new & existing assets added to this system during the tax period. Total monthly credit of all new assets added to this system during the tax period. (Tm) Tm= Tc / 60 Total ITC of the particular tax period including new & existing assets(Tr) Tr= Tm’s of assets introduced to this system in this tax period + Tm of assets already existing in this system as on beginning of this ITC related to exempt supplies etc. to be reversed (Te) Te=Tr*F E Total ITC of the particular tax period (Tr. ) Total turnover of the that tax period (F) Exempt turnover of the that tax period (E)

ITC availability - Summary Nature of Supply made by taxable person Credit Admissible Wholly taxable supplies Yes Wholly zero-rated supplies Yes Both taxable and zero-rated supplies Yes Wholly non-taxable or exempt supply No Wholly for non-business purpose No Both business and non-business purpose Proportionate credit Both taxable and non-taxable supply Proportionate credit

Job Work - ITC availment 31

ITC – Inputs sent for job worker (Section 19) Principal can avail ITC on inputs to the job worker on receipt of inputs by him or directly by job worker Sends RM/SFG/FG without tax on supply Principal • Returns FG/SFG/RM within 1 year without tax on supply and charging GST on job work charges RM- Raw material ; SFG- Semi finished goods; FG – Finished goods Job worker

ITC – Capital goods sent for job worker (Section 19) Principal can avail ITC on capital goods to the job worker on receipt of capital goods by him or directly by job worker Sends Capital goods (CG) without tax on supply Principal Returns Capital goods (CG) within 3 years without tax on supply and charging GST on job work charges Job worker

ITCUtilisation 34

MANNER OF DISTRIBUTION OF CREDIT (SECTION 17) Input service distributor may distribute the credits by way of prescribed document in the following manner: Nature of input tax Credit may be distributed as Situation CGST or SGST or IGST Where the distributor and the recipient of credit are located in the different States CGST or IGST CGST SGST or IGST SGST Where the distributor and the recipient of credit, being a business vertical, are located in the same State

ITC Availment and utilisation – basic Input tax credit (as self assessed in the return of taxable person) shall be credited to its electronic credit ledger[Section 44(2)] Amount available in the electronic credit ledger can be utilised for making payment towards output tax : [Section 44(4)]: • In such manner; and • subject to conditions; and • Within such time as may be prescribed • Electronic credit ledger balance cannot be utilised for payment of: Interest Penalty Fees Liability under Reverse charge Any other amount payable under Act or Rules made thereunder 35

Manner of claiming credit in special circumstances(18(1)&Rule 5 of Draft ITC) Input tax credit claimed in accordance with the provisions of sub-section (1) of section 18 [Composition to Normal , Exempt to taxable] on the inputs lying in stock or inputs contained in semifinished or finished goods lying in stock, or the credit claimed on capital goods in accordance with the provisions of clauses (c) and (d) of the said sub-section, shall be subject to the following conditions input tax paid on capital goods will be allowed after reducing credit by 5% per quarter from the date of invoice. Such dealer will be required to file Form GST ITC-01 within 30 days from the date of becoming eligible declaring that dealer is eligible for availing input tax credit. The declaration in GST ITC-01 should have following details as on the last of transition a) Stock of Inputs b) Inputs contained in semi finished goods c) Input contained in Finished goods d) Capital Goods In case of claim of credit in excess of Rs. 2, 000, certificate from practicing CA/CWA 35

Manner of claiming credit in special circumstances (Sec 18(3)Rule 6 of Draft ITC) Rule 6 : Transfer of credit on sale, merger, amalgamation, lease or transfer of a business Registered Taxable person shall transfer untilised credit lying in his electronic credit ledger to the transferee Application in Form GST ITC-02, needs to be made in case of transfer of credit on Sale, merger, amalgamation, lease or transfer of business. Certificate, certifying transfer of liabilities, from practicing Chartered Accountant or Cost Accountant will be required to be submitted. 35

ITC – Banking Company and FI [section 17(2)] Banking & financial institution has option to avail 50% of the input tax credit. This rule specified the methodology of availment of the said 50% credit. The methodology is summarised below, a) Identify the total tax on purchase of goods & services b) Reduce the total tax credit by following ➢ Ineligible credit as per Section 17 ➢ Credit pertaining to invoices for which the payment has not been made within 180 days. c) 50% of balance credit will eligible to Banking & Financial Institute

Refund of ITC 44

Refund of unutilized / accumulated ITC Balance in the credit ledger after payment of tax [section 44(6) r. w. sec 48]: • may be refunded in accordance with provisions of section 48; and • the amount collected as CGST / SGST shall stand reduced to that extent Refund of unutilized ITC to be allowed only in following cases [Proviso to section 48(3)]: • Exports (including zero rated supplies) o Exception – No ITC on exports which are subject to export duty • credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on outputs Refund to be claimed within two years from relevant date [section 48(1)]

Refund of unutilized / accumulated ITC Refund of unutilised credit on account of export of goods / services to be granted as under : • provisional refund of 90% of claim amount without detailed verification (time limit? ? ) • Balance 10% to be granted after due verification within 60 days [sec 48(6) and 48(7)] In case claimant has defaulted in furnishing any return or payment of tax, interest or penalty, Officer has power to: • Withhold payment of refund due until the said claimant has submitted the return or has paid the tax, interest or penalty as the case may be • Deduct from the refund due, any tax, interest or penalty which claimant (taxable person) is liable to pay but remains unpaid If refund is not granted within 3 months from date of receipt of application, interest at prescribed rate shall be payable for the period of due date of sanction of refund till actual date of refund

Return Filing Process GSTR-1 [Section 25] Details of outward Supplies 10 th of succeeding month Upload supply invoice details GSTR-2 [Section 26] Details of Inward Supplies 15 th of succeeding month Upload Purchase Invoice details Matching [Section 29] On the online portal Prescribed time Finalizing supply and purchase details GSTR-3 [Section 27] Filing of Returns 20 th of succeeding month File the return

Return Filing Process GSTR-1 [Section 25] Details of outward Supplies 10 th of succeeding month Upload supply invoice details GSTR-2 [Section 26] Details of Inward Supplies 15 th of succeeding month Upload Purchase Invoice details Matching [Section 29] On the online portal Prescribed time Finalizing supply and purchase details GSTR-3 [Section 27] Filing of Returns 20 th of succeeding month File the return

Return process Supplier will upload details of sales Invoices Supplier files GSTR-1 (returns for outward supplies by 10 th) Details filed by supplier are sent to receiver in GSTR-2 A by GSTN after 10 th Receiver adds details of Import of goods and services in GSTR-2 Based on this, details of inward supplies are auto-populated for ITC in GSTR-2 If receiver wants to modify or add anything he can do so Receiver files GSTR 2 (return for inward supplies) by 15 th The details modified/added by receiver are sent to supplier in GSTR-1 A who accepts/rejects same by 17 th Based on this modification, Final GST-1 of supplier & GSTR-2 of the receiver is deemed to be revised to that extent

Invoice Matching and Credit Reversal • B 2 B supply information given by the supplying taxpayer in GSTR-1 will be auto-populated into GSTR-2 of the counterparty purchaser • Purchasing taxpayers will be allowed to add invoice details in GSTR-2 & avail credit if he is in possession of valid invoice & have received supply of goods or services • Counterparty registered taxpayers shall have a 2 day window to reconcile invoice information among themselves prior to filing of GSTR-3 • Credit availed on unmatched invoices shall be auto-reversed in the next to next return period (e. g. mismatched ITC for April to be autoreversed in return for June)

Transitional provisions of ITC Section 167 Heading Provisions This provision allows a registered taxable person to take in his electronic credit ledger, the amount of CENVAT Credit shown as closing balance in his return filed for the period immediately preceding the appointed date. The CENVAT Credit lying in balance as on the date Amount of CENVAT Credit / Input Tax immediately preceding the appointed date will be Credit carried forward in Return to be admissible as Input Tax Credit of the CGST portion in allowed as Input Tax Credit the Electronic Credit ledger. Similarly the Input Tax Credit lying in balance on account of the amount of VAT and Entry Tax lying in balance as on the date immediately preceding the appointed date will be admissible as Input Tax Credit of SGST portion in the Electronic Credit Ledger.

Transitional provisions of ITC Section Heading 168 169 CENVAT Credit / Input Tax Credit on Capital Goods, not carried forward in Tax Return, to be allowed to be carried forward. Provisions In respect of Capital Goods, under the CENVAT Credit Rules, 2004, only 50% CENVAT Credit can be availed during the first year. The remaining 50% of CENVAT Credit can be availed in any of the subsequent financial years. This section enables a registered taxable person to avail the balance unavailed CENVAT Credit in his electronic credit ledger, in respect of the Capital Goods which is not carried forward by him in his return filed for the period immediately preceding the appointed date. registered taxable person will be allowed to avail CENVAT Credit of duties paid on Inputs held in stock, contained in semi-finished goods or finished goods held in stock, on the appointed date, subject to certain conditions. Such registered Taxable person should have been – Credit of eligible duties and taxes a. person not liable to be registered under earlier law or; on Inputs held in stock to be b. engaged in the manufacture of exempted goods or provision of exempted service allowed or; c. was providing works contract service and was paying service tax on abated value or; d. was a first stage dealer or second stage dealer or registered importer.

Transitional provisions of ITC Section 170 Heading Provisions This section provides that where registered taxable person is engaged in the Credit of eligible duties and manufacture or provision of dutiable as well as exempted goods or services, then he taxes in respect of inputs held shall be entitled to avail in his electronic credit ledger, CENVAT Credit carried in stock to be allowed in forward in a return furnished under the earlier law and the amount of CENVAT Credit certain situations on Inputs lying in stock or contained in semi-finished or finished goods lying in stock as on the appointed date, relating to the exempted goods or services. 171 In such situation, a registered taxable person receiving such goods and or services after the appointed date, on which appropriate duty or tax has been paid under the Credit of duties and taxes in earlier law, shall be entitled to take in his electronic credit ledger, the amount of duty respect of Inputs and Input or taxes paid on such input or input services SUBJECT TO THE CONDITION THAT the services, in respect of goods in Bill or Invoice should be recorded in the books of accounts within a period of thirty transit. days from the appointed date. Secondly the registered taxable person shall furnish a statement of Invoices, on which credit has been taken under this section.

Transitional provisions of ITC Section 172 182 Heading Provisions Where a taxable person was working under composition scheme under the earlier law (i. e. paying tax at a fixed rate or paying a fixed amount instead of the tax Credit of duties and taxes on payable amount) then he can take in his electronic credit ledger, the credit of Inputs held in stock while eligible duties and taxes, in respect of Inputs held in stock, inputs contained in switching over from the semi-finished goods and finished goods as on the appointed date, subject to the composition scheme following prescribed conditions – a. The inputs / goods should be used for making taxable outward supply under the GST; All the claims of CENVAT Credit / Input Tax Credit, pending in an appeal, revision, review or reference, shall be disposed of in accordance with the provisions of earlier law and if any amount is found admissible to the claimant, then the same Claim of CENVAT / Input Tax shall be refunded in cash, provided the assessee has not carried forward the said Credit under the earlier law amount as credit balance on the appointed date, under the Act. Similarly if any amount / claim of CENVAT / Input Tax Credit, is found to be recoverable as a result of the appeal, revision, review, or reference, the same shall be recovered as an arrears of tax under this Act.

Transitional provisions of ITC Section 190 Heading Provisions Credit distribution of Service Tax by ISD 192 and Tax paid on goods (inputs / capital goods) lying To be allowed as Credit to the agent 193 with agents, to be allowed as Credit 197 191 As per CENVAT Credit Rules, 2004, where CENVAT Credit has been availed on Input services, but has not made payment of such Invoices including the service tax, to the service provider, within Transitional provisions for availing CENVAT three months from the date of Invoice, the assessee has to reverse Credit in certain cases - the CENVAT Credit availed on such Input Services. Such Credit which has been reversed due to non-payment , can be reclaimed provided the assessee makes the payment of the Invoice, within three months from the appointed day. Where a registered taxable person, had obtained Centralized Registration under the earlier law, then such person shall be Transfer of unutilised CENVAT Credit by a allowed to avail, in his electronic credit ledger, the amount of taxable person having Centralised Registration CENVAT Credit, carried forward by him in the return furnished under the earlier law

Industry : Things to do… e edg wl o n n • K pdate ntatio U rese ep R • • Procurement Chain • Distribution Chain • Warehousing • ERP • Payment Process • Documentation • Fina ncial Im pact on Pricing • Vend or Price Realign m ent • Cred it Balan cing • • n Litigatio y Inventor sition an Other Tr ance i l p m o C Regular

“Thank You” Journey begins…. .