A short presentation by Mr. J.C.Laddha (CEO Copper Business, Hindalco Industries Limited) on GST implementation in India, its successes and challenges ahead. This
2. Good Morning
Meditation is linked with feeling less
stressed as well as actually lowering
the stress
In studies, people who are
trained in mindful meditation
achieved better gaols
Meditation can result in brain
changes that protect against
mental health conditions
Meditation helps to process
emotions, even when we are not
actively meditating
Meditation helps the elderly feel
less lonely
Meditation may be an excellent
supplement to various addictions
treatment
We experience less anxiety as
meditation loosen connections to
particular neural pathways
Meditation is linked to more
creativity / new ideas
Rapid memory recall improves
with daily meditation
It is believed that with daily
meditation you can reverse the
ageing process
Meditation – Good for All of You
2
3. GST would help the
economy pick up
pace, bring down the
inflation rate, and
boost the fortunes of
corporate India, a
nationwide poll of top
chief executive
officers (CEOs)
conducted by
“Business Standard”
revealed.
What did Indian CEO’s Say prior to GST Launch ?
Source – Business Standard , CEOs Survey(N=34)
0 20 40 60 80 100
Will GST have a Positive impact on Economy?
Will it bring down Inflation?
Will your Industry Benefit from GST?
Is your Company adversaly impacted by GST?
Do you have adequate clarity on ITC?
Are you concerned about the antiprofiteering rule could be
misused for harassment?
Do you have plans to relocate any of your plants?
Corporate Voices
Yes No Can't Say
3
4. 30th June 2017
Major Milestones
Announcement of GST for the
first time was made by the then
Union Finance Minister, during
budget of 2006-07 that it would
introduced from 1 April 2010
2006
First Discussion Paper was
released by the
Empowered Committee
2009 Constitution (115th Amendment) Bill introduced
and subsequently lapsed
2011
The Constitution (122nd Amendment)
Bill was introduced in the Lok Sabha
2014
Aug 2016
The Constitution (One
Hundred and First
Amendment) Act was
enacted
March 2017
GST Council Recommends the
CGST, SGST, IGST, UTGST and
Compensation Cess Act
April 2017
CGST, IGST, UTGST and
Compensation Cess Acts
passed
All States
except J&K
passed their
SGST ACT
May 2017
GST Launched
1st July 2017
1st GST Council Meeting
Sep 2016
GST Council
recommends
all the rules
SGST Act passed by J&K; CGST and IGST
Ordinances promulgated to extend GST to J&K
8th July 2017
True Economic Integration of India
Journey Continues… • Notifying and amending rules
• Dealing with IT related issues
• Revision of Rates
• Clarification and communication
with taxpayers
2004
Kelkar Committee formed by then
Prime Minister Mr. A.B.Vajyee
rrecommended GST to replace the
existing tax regime
4
5. Efforts and Work Done
GST
>12 years in
making
30+
subgroups
and
committees
18000 +
Manhours
Discussion by
GST Council
175 + officers
meetings
14 EC
meetings in
10 years
13 GSTC
meetings in
06 months
Prior to Launch Post Launch
Pace at which decisions were taken
during the GST council meetings,
amendments notified, and FAQs were
answered through different platforms
indicated Govt. intentions and
sensitiveness towards teething issues.
• Industry Support was paramount
too which is beyond measuring.
5
7. 7
1
2
3
4
Implementation of GST
01st July 2017
- Rate Rationalization
- Changes in Rules to simplify Compliance
September 25th – 22nd
GST Council Meeting
- Rate Rationalization
- Exemptions Rationalization
January 2018 - 25th GST Council Meeting
- Retrospective
Amendments
- Clarifications on various
ambiguous areas
28th GST Council Meeting
GST – The Time Line – Post Launch
7
9. Economic Impact
GDP Growth of 8.2%
Ease of Doing Business
Fiscal Budget maintained
– Deficit met
CPI grown to 4.6%
Revenue Collection has
started to increase
“GST – Good & Simple Tax” –
Hon'ble Prime Minister Shri Narendra Modi
Impact on Economy
9
10. GST
- Rationalized Rates
- Four rate structure
- Major Rationalization in Nov
- Minimum Exemptions
More Informed Consumer
- The Federal Structure
- Consumption based tax
- Abolition of CST
Poorer States to gain
- Progressive Tax Collection
- Increased Compliance
- Simplified Tax Regime
Increased Transparency
- Removing the Cascading Effect
- Overall Reduction in Prices
Decrease in Inflation
Make in India
Subsuming all Major Levies
Ease of Doing Business
One Nation – One Market – One Tax
Significant Gains of GST
- Export to be zero rated
- Protection of Domestic Industry
10
11. GST
- Nature of rulings issued by advance ruling authorities have crashed
expectations of its being a neutral platform for clarifying interpretative
issues associated with the newly introduced law
Pro revenue and contradictory advance ruling
- Technical issues for applying for returns
- Refund Mechanism for exporters have irked the sectors
- Delay in processing refunds
- Blockage of working capital
GST Refunds – A deal Breaker for Export
- Multiple Tax Rate
- Varied interpretation on levy of Dual GST or IGST
- Negative list of ITC
Ambiguity in Law
- Introduction of E way bill Mechanism to have a check on
movement of goods has not been seen as ease of doing business
E Way Bill
Single Point Implementation
- Introduction of GSTR – 3B has made the concept very tedious
- Issues in filling returns, mismatch fall through
- Refund Filling
GSTN Teething Issues – Poor IT
infrastructure
Pains of GST
- Few things not understood well like Reverse change
mechanism, Time of Supply etc. – deferred till 30th Sep
- Payment by vendors to tax department
- Compliance by vendors
- Payment within 180 days
- Claiming of old credit
- Technical issues in filling TRAN-1
- Credit of old Taxes paid post GST
- Re-credit of old refund issues
Credit Flow & Transaction of Credit
11
12. Rate
Rationalization
Supply Chain
Re-
Engineering
Transparency
& Simplified
Tax Structure
Increased
Credits
Rates of Consumer Necessities reduced
HSN Classification disputes resolved
through rate rationalization
Compounded rate comparison with
erstwhile regime - Positive
• Reduction in logistics cost
• Savings in carrying cost
• Abolition of Check-post
• Elimination of CST
• Make vs. Buy Decision
• One Nation One Market One
Tax
• Fungibility of Taxes
• Interest & Penalties
• Digital Economy
• Increase in transparency
• Reduced restriction on Eligibility
• All uncreditable taxes subsumed in
to GST and available as Credit
(CST, SAD, VAT etc.)
• Inter adjustment of Taxes
The Positive Changes - Reality
12
13. 1
2
3
Invoice wise details of
Outward Supplies
GST Returns : GSTR- 1
Summary of Outward Supplies
Summary of Inward Supplies
Determination of Input Tax Credit
Determination of Net Tax Liability
GSTR – 3B
Mirror Image of GSTR – 1
filed by Vendors
GSTR – 2A
GSTR - 6
Return for Input Service Distributor
4
5 Annual Return
GSTR – 9
GST Compliance
13
14. Simpler Legislation
Expansion of Tax Base &
further rate rationalization
Transparent Tax
Administration
Simplification of
Compliance
Alignment with Global
Principles
GST – The Path Ahead
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