PRESENTATION ON OVERVIEW OF GST Subodh Vora Co

PRESENTATION ON OVERVIEW OF GST Subodh Vora & Co. Rotary Club 14. 05. 2017 Powerpoint Templates

OVERVIEW OF GST Powerpoint Templates

GST ROADMAP- APRIL 2017 July 16 Aug 16 Sept 16 Constitutional Bill ratified by states & President Model GST Law Published GST Constitutional Bill passed in Parliament Mar 17 Revised Model GST Law published + GST Council formed Nov 16 Draft GST Rules Published Subodh Vora & Co. , Chartered Accountants. All rights reserved GST laws passed by Council 3

GST COUNCIL • To be formed within 60 days • Constitutional body to control law & take admin decisions • Recommendatory powers GST COUNCIL COMPOSITION • Union FM + Union MOS • Minister in charge of Finance/ Taxation of each state • Chairperson- Union FM • Vice Chairperson- Minister of State Govt Subodh Vora & Co. , Chartered Accountants. All rights reserved • Quorum- 50% of total members • Majority by 75% of Weighted votes • Weights- 1/3 rd of Centre & 2/3 rd of State MAJORITY 4

WHAT IS GST? 1. Comprehensive tax on supply of goods + services 2. Destination/ consumption based tax 3. Indian GST- Dual Model- CGST + SGST or (IGST-Inter-state transaction) 4. IGST- Inter state supply, stock transfers, imports, exports of goods & services 5. Fungibility of Credits. No Overlapping of tax Subodh Vora & Co. , Chartered Accountants. All rights reserved

TAXES TO BE SUBSUMED & NOT TO BE SUBSUMED State Levy Central Levy Customs Duty. CVD/ SAD Excise Duty State VAT Entry Tax/ Purchase Tax Octroi/ LBT Luxury/ Entertainmen t Tax GST CST Service Tax Basic Customs Duty Terminal Tax on goods/ passengers Tax on Electricity Stamp Duty Profession Tax Lottery, Betting & Gambling Tax Toll Tax Road Tax Subodh Vora & Co. , Chartered Accountants. All rights reserved 6

GST RATES- SPECULATIONS? STANDARD RATE (12%) BASIC RATE (5%) Necessities NIL RATE GST RATES STANDARD RATE (18%) HIGH RATE (28%) Consumer Durables Subodh Vora & Co. , Chartered Accountants. All rights reserved Plus CESS

REGISTRATION Powerpoint Templates

Threshold limit for registration AGGREGATE TURNOVER In each State where Supply takes place Exempt Supplies Taxable Supplies > Same PAN All India GST Tax to be excluded 20 Lakhs- Normal States 10 Lakhs - North Eastern States CGST + SGST Registration Exports Subodh Vora & Co. , Chartered Accountants. All rights reserved 9

No Threshold. Registration mandatory from 1 st transaction Any other person as notified Inter state Supply Casual Taxable Person Aggregators No Threshold Reverse Charge E-Commerce Players Input Service Distributor Subodh Vora & Co. , Chartered Accountants. All rights reserved Non Resident Taxable person

‘SUPPLY- MEANING’ Powerpoint Templates

“SUPPLY” For ‘Consideration’ & for ‘Business’ • Sale, • Transfer For ‘Consideration’ & without ‘Business’ • Importation of Service Schedule I- Without Consideration • Permanent transfer/disposal of business assets where ITC is availed. • Barter • Supply of goods or services between related persons made in furtherance of business • Exchange; • Supply of goods between principal and agents • License; • Importation of service from related person or any of its other establishment for furtherance of business. • Rental, • Lease; • Disposal Subodh Vora & Co. , Chartered Accountants. All rights reserved

IGST VS CSGST/SGST (Section 3 of IGST) CGST + SGST ‘Location of supplier’ and ‘place of supply’ are in same state Location of supplier’ and ‘place of supply’ in different states IGST Import of goods/ services Supply of goods/ services to SEZ Any supply of goods/ service which is not intra state Subodh Vora & Co. , Chartered Accountants. All rights reserved 13

‘INPUT TAX CREDIT’ Powerpoint Templates

AVAILABILITY OF ITC INPUTS INPUT SERVICES CAPITAL GOODS • Except in case of pipelines & telecommunication towers where ITC available in staggered manner Subodh Vora & Co. , Chartered Accountants. All rights reserved 15

COMPLIANCES UNDER GST Powerpoint Templates

RETURN PROCESSES Return Form Type of Return Time Limit Total Returns per year GSTR-1 Outward Supplies 10 th of Next Month 12 GSTR-2 Inward Supplies 15 th of Next Month 12 GSTR-3 Main Return 20 th of Next Month 12 GSTR-6 Input Service Distributor 13 th of Next Month 12 GSTR-7 TDS Return 10 th of Next Month 12 GSTR-8 Annual Return 31 st December following F. Y. 1 61 Subodh Vora & Co. , Chartered Accountants. All rights reserved

OTHER IMPORTANT PROVISIONS Powerpoint Templates

OTHER IMPORTANT PROVISIONS • Rating to each dealer on scale on 1 to 10 GST Compliance rating [S. 138] • Possible trigger points for blacklisting- Continuous return non filers, short reporting of turnover • Profile of blacklisted dealers to be published in public domain • Advantages of blacklisting Burden of Proof S. 145 Anti profiteering measure S. 163 • Burden of proof is on person who is claiming the ITC • There should be reduction in prices on account of reduction of tax rate/ seamless credit • Imposition of penalty as may be prescribed in case on non compliance • How to control, method, complications, more power to bureaucracy Subodh Vora & Co. , Chartered Accountants. All rights reserved 19

THANK YOU Powerpoint Templates