4.optitax's presentation on gst (25 june 17)

© 2017 Optitax’s, an Indian Limited Liability Partnership Firm. All rights reserved.© 2017 Optitax’s, an Indian Limited Liability Partnership Firm. All rights reserved.25 June 2017
Optitax’s
c
Goods and Services Tax
(GST)
ARE YOU READY FOR THE UNREADINESS?

© 2017 Optitax’s, an Indian Limited Liability Partnership Firm. All rights reserved.
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About Optitax’s
Summary of Transitional provisions
Compliance calendar
Transitional Provisions
Key concepts under GST
Documents formats under GST
GST Training

1 About Optitax’s

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About Optitax’s
• We at Optitax’s, have a strong 25 member team which includes experienced professionals with 25 plus years of experience in Indirect tax field and
budding young professionals (CA’s, CMA’s CS’s, Lawyers)
• The Firm specializes in providing optimized indirect tax solutions viz. advisory in relation to complex transactions, litigation support, representation
during investigation and audit, SVB assistance, refunds/rebates, GST compliance, etc
• We virtually take care of Indirect tax function of an organization through appropriate advisory, assistance in compliances, regular periodical audit
aimed to avoid surprises during visit by the departmental officers
• In its endeavour to contribute in a major tax reform GST, team Optitax’s started training in the month of Nov 2017. So far, we have completed more
than 25 batches of comprehensive 24 hours “In-depth GST Training Certification Course”. We have trained more than 1500 participants till date
which includes Chartered Accountants, Cost Accountants, Company Secretaries and Indirect tax professionals. The batches are conducted on every
weekend and now we are starting GST Training in Marathi
• We also are helping our clients having diversified operation in manufacturing, service and trading sector to understand GST impact not only in
terms financial impact but also the impact on the key individual transactions and the procedures
• Taking clue from the inputs received in training We thought to help trade to understand GST in nutshell so as to get them ready for such a mighty
tax reform
• The key to have a peaceful sleep in such major transition could be on appropriate compliances being done on timely basis. It can be achieved based
on a systematic approach whether on manual basis or using an ERP. Use of any tool or services of ASP or GSP can be effective only when system is
configured appropriately
• The system can be configured appropriately only when the business transactions are analysed in the context of GST law.
• We have analysed possible business transactions comprehensively and have prepared process flow charts of such transactions. The ultimate aim is
to ensure filling of the annual return in the next year with at most correct reconciliation of the GST returns and financials without being getting
desperate at the last movement

2 Summary of Transitional provisions

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Summary of Transitional Provisions
Situation Name of Form Format Link
Transfer of credit balance carried forward in Central
Excise, Service Tax and VAT return in electronic credit
ledger of GST
FORM GST
TRAN-1
http://optitaxsconsulting.com/gst-knowledge-portal/
Carry forward of availed credit on capital goods under
existing law
FORM GST
TRAN-1
Amount of duties and taxes on inputs claimed as
credit on appointed day where duty paid invoices or
any other specified documents are available
FORM GST
TRAN-1
Amount of duties and taxes on inputs claimed as
credit on appointed day where duty paid invoices are
not available – Applicable only for person other than
manufacturer or service provider
FORM GST
TRAN-2
Details of transfer of CENVAT credit for registered
person having centralized registration under existing
law
FORM GST
TRAN-1
Details of goods sent to job-worker and held in his
stock on behalf of principal & Details of goods held in
stock as job worker on behalf of principal
FORM GST
TRAN-1
Details of goods sent on approval basis six months
prior to appointed day
FORM GST
TRAN-1
Details of goods in transit and input services tax on
which is paid
FORM GST
TRAN-1
Please download format from serial
number 82 to 90

3 Compliance calendar

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GST Compliance calendar
Name of Form Particulars Status of taxpayers Due date
Form GST TRAN 1
Details of tax credit carried forward in the return filed
under existing laws and statutory forms received
regarding credit
Registered taxable person Within 90 days from appointed day
Form GST TRAN 2
Details of inputs held on stock on appointment date
claiming credit on taxes and duties in the stock
Registered taxable person other than manufacturer and
service provider not having duty paid documents
Within 90 days from appointed day
Form GSTR-3B
Summary return of self-declaration basis for the first
two months i.e. July and August
Registered taxable person
20 day of the following month i.e. 20
August and 20 September
Form GSTR-1
Details of outward supplies of taxable goods and/or
services effected for the month of July, 2017
Registered taxable supplier 1 – 5 September
Form GSTR-1
services effected for the month of August, 2017
Registered taxable supplier 16 - 20 September
Form GSTR-2
Details of inward supplies of taxable goods and/or
services effected claiming input tax credit for the
month of July, 2017
Registered taxable recipient 6 – 10 September
Form GSTR-2
services effected claiming input tax credit for the
month of August, 2017
Registered taxable recipient
21 - 25 September
Form GSTR-1
services effected
Registered Taxable Supplier 10 of the succeeding month
Form GSTR-2
services effected claiming input tax credit.
Registered Taxable Recipient 15 of the next month

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GST Compliance calendar
Name of Form Particulars Status of taxpayers Due date
Form GSTR-3
Monthly return on the basis of finalization of details of
outward supplies and inward supplies along with the
payment of amount of tax.
Registered taxable person 20 of the next month
Form GSTR-4
Quarterly return for compounding taxable person. Composition Supplier
18 of the month succeeding quarter
Form GSTR-5
Return for Non-Resident foreign taxable person Non-Resident Taxable Person 20 of the next month
Form GSTR-6
Return for Input Service Distributor Input Service Distributor 13 of the next month
Form GSTR-7
Return for authorities deducting tax at source. Tax Deductor 10 of the next month
Form GSTR-8
Details of supplies effected through e-commerce
operator and the amount of tax collected
E-commerce Operator/Tax Collector 10 of the next month
Form GSTR-9
Annual Return Registered Taxable Person 31 December of next financial year
Form GSTR-10
Final Return Taxable person whose registration has been surrendered
or cancelled.
Within three months of the date of
cancellation or date of cancellation
order, whichever is later.
Form GSTR-11
Details of inward supplies to be furnished by a person
having UIN
Person having UIN and claiming refund
28 of the month following the month
for which statement is filed

4 Transitional Provisions

© 2017 Optitax’s, an Indian Limited Liability Partnership Firm. All rights reserved.© 2017 Optitax’s, an Indian Limited Liability Partnership Firm. All rights reserved.
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Migration of existing tax payers
• On or after 27 June 2017, the assessees would be able to download Provisional Registration Certificate from "Download Certificates" at https://www.gst.gov.in/

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Process
Migration of existing tax payers
Already enrolled on
GST common portal
Grant “Provisional
Certificate” in Form
GST REG-25
Verification by
proper officer
Whether details
furnished are correct
and complete?
No
Yes
Within 3
months
Grant a “Certificate
of Registration” in
Form GST REG-06
Issue “Show Cause”
notice in Form GST
REG-27
Whether details
furnished are correct
and complete?
No
Yes
Cancel the “Provisional
Certificate” in Form GST
REG-28
(after giving reasonable
opportunity of being heard)
(On 27 June 2017)
Yes
Enrolment window will reopen on 25th June
2017 and continue for 3 months as per ruleNo

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Carry forward of input tax credit – CENVAT credit on inputs
• The taxpayer shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in return relating to the period ending with the day
immediately preceding the appointed day subject to following conditions
i. where the said amount of credit is not admissible as input tax credit under this Act; or
ii. where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; or
iii. where the said amount of credit relates to goods manufactured and cleared under such exemption notifications as are notified by the Government
Process
Whether CENVAT
credit carried
forward in return?
Yes
Whether credit is
admissible as ITC
under GST?
Whether returns for
six months has
been filed?
Whether goods are
not manufactured
and cleared under
exemption
notification
Yes
Electronically declare
stock of goods as on
30 June 17 in Form
GST TRAN-1Within
90 days
Credit automatically
get transferred in
credit ledger as CGST
in Form GST PMT-2

details of credit not
availed or utilized
under existing law on
in Form GST TRAN-1
Credit lapse
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Carry forward of input tax credit – CENVAT/VAT/Entry Tax on Capital goods
• The taxpayer shall be entitled to take in electronic credit ledger, credit of the unavailed CENVAT/VAT/Entry Tax credit in respect of capital goods, not carried forward in
return relating to the period ending with the day immediately preceding the appointed day, provided that the said CENVAT was admissible under existing law and is also
admissible as input tax credit under GST Act
• In terms of CENVAT credit Rules the assesses are allowed to take 50 percent credit of the capital goods in first year. The balance credit can be availed in the next year.
Accordingly the balance credit of capital goods received from April 2017 to June 2017 can be availed under the said transitional provision
Process
Credit
• Excise duty
• CVD
• SAD
• VAT
• Entry tax
Balance credit on capital not
availed under existing law
Whether Credit admissible as
ITC under GST?
No
Yes
Within
90 days
Credit
State taxes
- SGST credit
Central taxes
- CGST credit
In Form GST
PMT-2

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Input tax credit in certain cases - Central taxes
• A registered person, who was not liable to be registered under the existing law, or
• Who was engaged in the manufacture of exempted goods or
• Provision of exempted services, or
• Who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or
• A first stage dealer or
• A second stage dealer or
• A registered importer or
• A depot of a manufacturer,
shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held
in stock on the appointed day subject to the following conditions, namely:––
(i) such inputs or goods are used or intended to be used for making taxable supplies under this Act;
(ii) the said registered person is eligible for input tax credit on such inputs under this Act;
(iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs;
(iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day; and
(v) the supplier of services is not eligible for any abatement under this Act:

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Input tax credit in certain cases – Central taxes
Process
Whether there are some Inputs held in stock and
inputs contained in semi-finished or finished goods
held in stock on 1 July 2017
A person
• who was not liable to be registered under the
existing law
• Is engaged in manufacturing of exempted
goods
• Is engaged provision of exempted services
• Is First/second Stage dealer
• Is registered importer
• Depot of a manufacturer
Yes
Whether such inputs or goods are used or intended
to be used for making taxable supplies under GST Act
Whether the said registered person is eligible for
input tax credit on such inputs under this Act;
Whether the said registered person is in possession
of invoice or other prescribed documents evidencing
payment of duty under the existing law in respect of
such inputs?
Whether such invoices or other prescribed
documents were issued not earlier than twelve
months immediately preceding the appointed day?
Whether the supplier of services is not eligible for any
abatement under GST Act?
Yes
availed or utilized
in Form GST TRAN-1
Within
90 days
get transferred in
credit ledger as CGST
in Form GST PMT-2

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Input tax credit to specified persons – State taxes
A registered person,
• who was not liable to be registered under the existing law or
• who was engaged in the sale of exempted goods or
• sale of tax free goods or
• goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax in the State under the existing law but
which are liable to tax under this Act or
• where the person was entitled to the credit of input tax at the time of sale of goods, if any,
shall be entitled to take, in his electronic credit ledger, credit of the value added tax and entry tax in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock on the appointed day subject to the following conditions, namely :––
(i) such inputs or goods are used or intended to be used for making taxable supplies under this Act ;
(ii) the said registered person is eligible for input tax credit on such inputs under this Act ;
(iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of tax under the existing law in respect of such inputs ; and
(iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day :

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Input tax credit in certain cases – State taxes
Process
Whether there are some Inputs held in stock and
inputs contained in semi-finished or finished goods
held in stock on 1 July 2017
A person
• who was not liable to be registered under the
existing law
• Is engaged in manufacturing of exempted
goods
• Is engaged provision of exempted services
• Is First/second Stage dealer
• Is registered importer
• Depot of a manufacturer
Yes
such inputs?
Yes
availed or utilized
in Form GST TRAN-1
Within
90 days
get transferred in
credit ledger as SGST
credit in Form GST
PMT-2

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Input tax credit in certain cases – Central and State taxes
Where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of tax in
respect of inputs, then, such registered person shall, entitled to take credit of such inputs in following manner:
Intra State supply:
• Sixty per cent. of central and State tax on such goods which attract central and State tax at the rate of nine per cent. or more each and
• Forty per cent. of the central and State tax on such goods which attracts central and State tax at the rate of less than nine per cent.
Inter State supply:
• Thirty per cent of central tax and twenty per cent of State tax
The said credit shall be credited after the central tax payable on such supply has been paid:
The scheme shall be available for six month after appointed date tax
In addition to above manner, following conditions also needs to be fulfilled:
• Such goods were not unconditionally exempt from the whole of the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 or were not nil
rated in the said Schedule
• The document for procurement of such goods is available with the registered person
• The registered person availing of this scheme and having furnished the details of stock held by him, submits a statement in FORM GST TRAN 2 at the end of each of the
six tax periods during which the scheme is in operation indicating therein the details of supplies of such goods effected during the tax period
• The amount of credit allowed shall be credited to the electronic credit ledger of the applicant maintained in FORM GST PMT-2 on the Common Portal
• The stock of goods on which the credit is availed is so stored that it can be easily identified by the registered person

Credit
automatically
get transferred
in credit ledger
in Form GST
PMT-2
availed or utilized
in Form GST TRAN-2
30% of CGST and 20 % SGST rate will credited to credit
ledger after payment of respective GST liability
40% of CGST/SGST rate will
credited to credit ledger after
payment of respective GST
liability
60% of CGST/SGST rate will
credited to credit ledger after
payment of respective GST
liability
Credit will lapse
Follow procedure
explained in previous slide
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Input tax credit to certain cases – Central and State taxes
Credit
• Excise duty
• CVD
• SAD
• VAT
Whether duty
paid documents
are available?
Yes
No
Whether person is
manufacturer or
service provider?
Yes
No
Intra State
Inter State
CGST/SGST rate is
9% or more than 9%
CGST/SGST rate is
less than 9%
• The scheme is available for six month from 1 July 2017
• The said goods were not unconditionally exempt from the whole of the duty of excise specified in the First Schedule to Central Excise Tariff Act or NIL rated in said
schedule or exempted in respective State Act
• Document for procurement is available with the registered person

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Input tax credit in certain cases – Taxable and exempted
A registered person, who was engaged in the manufacture/sale of taxable as well as exempted goods under the Central Excise Act, 1944/respective State Act or provision of
taxable as well as exempted services under Chapter V of the Finance Act, 1994, but which are liable to tax under this Act, shall be entitled to take, in his electronic credit
ledger,—
(a) the amount of CENVAT credit carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and
(b) the amount of CENVAT credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed
day, relating to such exempted goods or services, in accordance with the provisions of sub-section (3).
Process
Engaged in manufacture/sale/services
taxable as well as exempt
Taxable goods or services Exempted goods or services
Follow procedure provided
in slide 13
Follow procedure provided
in slide 15 to 20

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Input tax credit in certain cases – Goods/service in transit
A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the
appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other duty or tax
paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day
Chart
1 July 17
Duty or taxes paid before 1
July 17
Goods or services received on
or after 1 July 17
• The registered person will get credit of in his electronic ledger subject to condition that duty paid documents or invoice will be recorded within 30 days from 1 July 2017
• In addition to above following detailed to be required to avail the credit
i. the name of the supplier, serial number and date of issue of the invoice by the supplier or any document on the basis of which credit of input tax was admissible under
the existing law,
ii. the description and value of the goods or services,
iii. the quantity in case of goods and the unit or unit quantity code thereof,
iv. the amount of eligible taxes and duties or, as the case may be, the value added tax [or entry tax] charged by the supplier in respect of the goods or services, and
v. the date on which the receipt of goods or services is entered in the books of account of the recipient.

Credit automatically get
transferred in credit ledger as
CGST/SGST in Form GST PMT-2
availed or utilized
in Form GST TRAN-1
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Input tax credit in certain cases – Fixed rate or fixed amount of tax
A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his
electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day
subject to the following conditions, namely:––
(i) such inputs or goods are used or intended to be used for making taxable supplies under this Act;
(ii) the said registered person is not paying tax under section 10;
(iii) the said registered person is eligible for input tax credit on such inputs under this Act;
(iv) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of inputs; and
(v) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day.
Process
Whether there are some Inputs held in stock
and inputs contained in semi-finished or
finished goods held in stock on 1 July 2017
Any person paying tax at fix rate
or fixed amount of tax under
existing law but not under GST Act
such inputs?
Yes
Yes
Within
90 days

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Input tax credit in certain cases – Input services
• ISD shall be eligible to distribute the credit of services received before 1 July 2017 but invoices relating to that received on or after 1 July 2017
• Service provider who has taken centralised registration shall be eligible for credit carried forward in return furnished before the appointed day. Further, he can claim the
credit for the period preceding 1 July 2017 provided he has filed return for said period within three months from 1 July 2017
• He has to declare details in Form GST TRAN – 1 and upload it within 90 days from 1 July 2017
• However, CBEC has issued Notification No.18/2017 – Service Tax, Return for period from 1 April 17 to 30 June 17 to be filed by 15 August 17 and also period of revise
return is reduced to 45 days from date of submission of original return
• The registered person who has obtained centralised registration under existing law may be transferred to distinct persons
• Any input services availed under existing law has been reversed due to non payment of consideration within 90 days under existing law can be reclaimed if consideration
is made within 3 months from 1 July 2017

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Inputs, semi-finished, finished goods removed for job work or any other premises
• Inputs
• Semi-finished goods
• Finished goods
• Inputs
• Semi-finished goods
• Finished goods
Removed b4
1 July 17
Customer
Returned within 6
months from 1 July 17
Supplied from any premises only in
case of semi-finished/ finished goods
within 6 months from 1 July 17
1
2
3
1 Inputs, semi-finished/finished goods returned within 6 months from 1 July 17
No tax implications
2 Semi-finished/finished goods supplied directly from any other locations
No tax implications
3 Not returned or supplied from any other location within 6 months
Tax shall be recovered under existing law and if not possible under existing law it will
be treated as arrear of tax under GST Act
• Both the manufacturer and job worker should declare the details in Form
GST TRAN-1 within 90 days from 1 July 2017

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Removal of goods after appointed date but returned after appointed date
1 July 171 Jan 17 31 Dec 17
12 2
1
1
• This transitional provision is applicable only if goods were removed/sold six month before appointed date and returned within six month after appointed date
• In case where goods are returned by any unregistered person, then supplier will get refund of duty or taxes paid at the time of removal or sale under existing law
• Such goods are identifiable to the satisfaction of the proper officer
• In case where goods are returned by registered person then it will be deemed as supply by such registered person and supplier will pay GST on that and take credit
for the same
2 • If goods were removed or sold before six months from appointed date or returned after appointed date then supplier will not get refund of duty paid under existing
law
Removal or sale Return

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Upward and downward revision of price
1 July 17
Contract entered before 1 July 17 Revision of price on or after 1 July 17
• Supplier shall issue a supplementary invoice or debit note within 30 days from upward revision of price and pay GST on that as it will be treated supplementary invoice or
debit note in respect to outward supply under GST
Upward revision
• Supplier shall issue credit note within 30 days from upward revision of price and reduce his GST on that as it will be treated as credit note in respect to outward supply
under GST
Downward revision

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Sale and approval basis
1 July 171 Jan 17 31 Dec 17
12 21
Sale on approval basis Rejected and returned
1 • If goods are returned within six months then no need to pay GST on such removal of goods
• If sale is confirmed by the buyer within six month then GST will be payable on such confirmation
• Details of goods lying with customer shall be required to declare in Form GST TRAN-1 within 90 days from 1 July 2017
2 If neither goods received nor confirmation received from customer then supplier to pay GST on that

5 Key concepts under GST

Levy of GST
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CGST+UTGST
CGST+SGSTSupply
Goods
Services
Both
Petroleum products
Except
Alcoholic liquor for
human consumption
LEVY
Sec. 9(1) & 5(1) – No GST – Current taxes will continue
Sec. 9(2) & 5(2) – Differed till date to be notified
Supplier
u/s 9(1) & 5(1)
Forward charge
(Supplier)
Reverse charge
(Recipient)
Supplier
u/s 9(5) & 5(5)
Taxable person
Notified supplies -
ECO
Whole of India
except J&K
Inter-State#
Intra-State
IGST
Within a State
Within Union
territory
# IGST on import of goods is leviable under Section 3 of Customs Tariff Act
Taxable person
u/s 9(3) & 5(3)
Taxable person
u/s 9(4) & 5(4)
Notified supplies
Received from
unregistered
person

Centre
Govt.
Centre
Govt.
Centre
Govt.
State
Govt.
Centre
Govt.
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Levy of GST with example
Supply
CGST SGST
Pune Mumbai
Within a State (Maharashtra )
Supply
Maharashtra Gujarat
Outside the State
IGST
CGST SGST
SGST rate of
Consuming State
Import of goods Import of services
Centre
Govt.
Supply
U.K. India
IGST
CGST SGST
SGST rate of
Consuming State
Supply
U.K. India
IGST
CGST SGST
SGST rate of
Consuming State
BCD

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Meaning and scope of supply and Composite and mixed supply
▪ All forms of supply of goods and/or services
▪ Made or agreed to be made
▪ By a person
▪ For a consideration
▪ In the course or furtherance of business
▪ Importation of services
▪ For a consideration
▪ Whether or not in the course or furtherance of business
Supply specified in schedule I - made or agreed to be made without a consideration
• Permanent transfer/disposal of - business assets where ITC availed
• Supply between related or distinct person when made in the course or furtherance of
Business
• Supply of goods between principal to agent and vice-versa
• Importation of service from Related Party or other Establishment outside India in the
course or for furtherance of business
Meaning
Activities to be treated as supply of goods or supply of services as referred to in schedule II
• Goods forming part of the assets of the business are transferred or disposed on the
direction of the person carrying on the business such transfer/disposal is a supply of
goods
• If any person ceases to be a taxable person then goods forming part of business assets
immediately before he ceases to be a taxable person will be treated as supply of goods in
his hands, unless
- the business is transferred as a going concern to another person; or
- the business is carried on by a personal representative who is deemed to be a
taxable person
• Composite supply of Works contract related only to immovable property will be treated as
supply of services
Scope
Supply notified by Central Govt or State Govt. as
▪ A supply of goods and not as a supply of services
▪ A supply of services and not as a supply of goods
Excludes
Transactions specified in Schedule III
• Services provided by Employee to employer
• Services provided by Court or tribunal
• Services provided by M.P., M.L.A, Panchayats etc.
• Funeral, burial, crematorium or mortuary etc., of deceased
• Sale of land and sale of building
• Actionable claims, other than lottery, betting and gambling
Transactions undertaken by Centre or State Government or Local authority
as Public authorities as may be notified by the Government on the
recommendation of the council

• Supply should consist of two or more individual supplies of goods or
services, or any combination thereof
• Such supplies are made in conjunction with each other
• Such supply is made by a taxable person
• Such supply is made for a single price
• Such supply does not constitute a composite supply
• Each of the supply out of the two or more supplies can be supplied
separately
• Such two or more supplies are not dependent on each other
• Such taxable supply is made by a taxable person to a recipient
• Such supply should consist of two or more taxable supplies of goods or
services or, any combination thereof
• Such supplies are naturally bundled with each other and
• Supplied in conjunction with each other in the ordinary course of business
• One of such supplies is the principal supply
33
Composite and Mixed supply
Composite supply Mixed supply
A composite supply comprising two or more taxable supplies A mixed supply comprising two or more individual supplies
Based on the principal supply Based on highest rate of tax

34
Taxable person
• Arunachal
• Pradesh
• Assam
• Manipur
• Uttarakhand
• Meghalaya
• Mizoram
• Nagaland
• Sikkim
• Tripura
• HP
Taxable
person
Threshold exemption
Every supplier who makes a taxable supply from the State or union
territory where his aggregate turnover in a financial year exceeds
10 lacs 20 lacs for other States
• Inter State supply
• Casual taxable person
• Non resident taxable person
• Person liable to pay tax under reverse charge
• TDS deductor
• Agent
• ISD
• Person who makes supply through ECO
• ECO
• Person supplying online data information and retrieval
services from outside India to unregistered person
• Notified persons
Mandatory registration
Aggregate Turnover shall be computed all
India basis & includes:
• Taxable supplies
• Exempt supplies including non taxable
supplies
• Export
• Supply on behalf of principals
Excludes:
• reverse charge
Aggregate Turnover
Taxable person means
A person who is registered or liable to be
registered under
• Section 22 - Threshold exemption or
• Section 24 - Mandatory;
Who is Taxable Person?

• Supply of goods from one State or Union Territory to another State or Union Territory
• Supply of services from one State or Union Territory to another State or Union Territory
• Import of goods till they the cross customs frontier
• Import of services
• Export of goods or services
• Supply of goods/services to/by SEZ
• Supplies to international tourists
• Any other supply in the taxable territory which is not intra-State supply
• Supply of goods within the State or Union Territory
• Supply of services within the State or Union Territory
Intra State
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Place of supply of goods or services
The place of supply of goods or services is required to determine which type of tax will
be payable by the supplier, i.e. CGST+SGST/UTGST or IGST
Inter State
IGST
CGST
SGST
UTGST

36
Place of supply of goods
Place of supply of goods other than import and export
Sr No. Nature of supply Place of supply
1 Where the supply involves the movement of goods, whether by the supplier or the recipient or by any
other person
Location of the goods at the time at which, the movement of
goods terminates for delivery to the recipient
2 Where the goods are delivered to the recipient, or any person on the direction of the third person by
way of transfer of title or otherwise, it shall be deemed that the third person has received the goods
The principal place of business of such person
3 Where there is no movement of goods either by supplier or recipient Location of such goods at the time of delivery to the recipient
4 Where goods are assembled or installed at site The place where the goods are assembled or installed
5 Where the goods are supplied on-board a conveyance like a vessel, aircraft, train or motor vehicle The place where such goods are taken onboard the
conveyance
6 Where the place of supply of goods cannot be determined in terms of sub-sections (2), (3), (4) and (5) It shall be determined in such manner as may be prescribed
Place of supply of goods in case of Import & Export
1 Import Location of importer
2 Export Location outside India

37
Place of supply of services
Place of supply of services in case of Domestic Supplies Where the location of supplier of services and the location of the recipient of services is in India
1 Immovable property related to services, including hotel
accommodation
Location at which the immovable property or boat or vessel is located or intended to be located If located
outside India: Location of the recipient
2 Restaurant and catering services, personal grooming,
fitness, beauty treatment and health service
Location where the services are actually performed
3 Training and performance appraisal • B2B: Location of such Registered Person
• B2C: Location where the services are actually performed
4 Admission to an event or amusement park Place where the event is actually held or where the park or the other place is located
5 Organisation of an event • B2B: Location of such Registered person
• B2C: Location where the event is actually held If the event is held outside India: Location of the recipient
6 Transportation of goods, including mails • B2B: Location of such Registered Person
• B2C: Location at which such goods are handed over for their transportation
7 Passenger transportation • B2B: Location of such Registered Person
• B2C: Place where the passenger embarks on the conveyance for a continuous journey
Place of supply of services in case of Domestic Supplies Default Rule for the services other than 12 specified services
1 Business to Business Location of registered person
2 Business to Customer (i) Location of the recipient where the address on record exists, and
(ii) Location of the supplier of services in other cases

38
8 Services on board a conveyance Location of the first scheduled point of departure of that conveyance for the journey
9 Banking and other financial services Location of the recipient of services on the records of the supplier or Location of the supplier of services if the
location of the recipient of services is not available
10 Insurance services • B2B: Location of such Registered Person
• B2C: Location of the recipient of services on the records of the supplier
11 Advertisement services to the Government The place of supply shall be taken as located in each of such States Proportionate value in case of multiple States
12 Telecommunication services • Services involving fixed line, circuits, dish etc., and place of supply is the location of such fixed equipment
• In case of mobile/ Internet post-paid services, it is the location of billing address of the recipient
• In case of sale of pre-paid voucher, the place of supply is the place of sale of such vouchers.
• In other cases, it is the address of the recipient in records

39
Place of supply of services in case of cross-border supplies Default Rule for the cross border supply of services other than nine specified services
1 Any Location of the recipient of service If not available in the ordinary course of business: The location of the supplier of service
Place of supply of services in case of cross-border supplies Where the location of the supplier of services or the location of the recipient of services is outside India
1 Services supplied for goods that are required to be made physically available from a
remote location by way of electronic means (Not applicable in case of goods that are
temporarily imported into India for repairs and exported)
The location where the services are actually performed, The location where
the goods are situated
2 Services supplied to an individual and requiring the physical presence of the receiver The location where the services are actually performed
3 Immovable property-related services, including hotel accommodation Location at which the immovable property is located
4 Admission to or organisation of an event The place where the event is actually held
5 If the said three services are supplied at more than one locations. i.e.,
(i) Goods & individual related
(ii) Immovable property-related
(iii) Event related
5a. At more than one location, including a location in the taxable territory Its place of supply shall be the location in the taxable territory where the
greatest proportion of the service is provided
5b. In more than one State Its place of supply shall be each such State in proportion to the value of
services provided in each State

40
Sr. No. Nature of supply Place of supply
6 Banking, financial institutions, NBFC Intermediary services, hiring of vehicles’
services etc.
Location of the supplier of service
7 Transportation of goods The place of destination of the goods
8 Passenger transportation Place where the passenger embarks on the conveyance for a continuous journey
9 Services on-board a conveyance The first scheduled point of departure of that conveyance for the journey
10 Online information and database access or retrieval services The location of recipient of service

41
Input tax credit (ITC)
Input tax credit can be taken if goods or services used or intended to be used in the course or furtherance of business subject to exclusion list
• Input tax credit available on provisional basis subject to compliance by the supplier
• In case of liability under Reverse charge mechanism, first pay in cash and then take credit
• Capital Goods – Anything capitalised in books of account will be treated as capital goods and full credit is available in the month of procurement
• ISD can distribute the credit on common input services by issuing Tax Invoice to its other locations
• where a recipient fails to pay to the supplier of goods or services or both, other than the supplies covered under RCM, the amount towards the value of supply along with tax
payable thereon within 180 days, credit availed will be added to output tax liability along with interest. However, after making of payment the recipient shall be entitled to
avail credit along with interest paid thereon
Conditions for availing ITC
• Recipient has possession of a tax invoice or debit note issued by a supplier registered
• Recipient has received the goods or services or both
• The tax charged in respect of such supply has been actually paid to the Government
• Recipient has furnished the valid return

• Input tax credit in respect of motor vehicles and other conveyances shall not be available to the person on procurement of said motor vehicles
• The person shall be eligible to take ITC on procurement of said goods if the said conveyance are used by the person in making taxable outward supplies such as:
a. Further supply of motor vehicles
b. Transportation of passengers
c. Provisions of services, such as imparting training, flying navigating
d. Transportation of goods
42
ITC - Excluded category
Motor vehicles and other conveyances
• ITC in respect of food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery shall not be allowed the If the such inward supplies are
used by any person for his/her personal consumption
• However, where such inward supply of such goods or services or both of are used by persons for making an outward taxable supply of the same goods or services or both then
such registered person shall be allowed to take ITC in respect of the said goods or services or both
Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery
• ITC in respect of rent-a-cab, life insurance and health insurance services shall not be available to the person taking such services
• ITC on procurement of such services can be taken if the said services, where:
a. Such services are provided by employer to employee under obligation of scheme as notified by the government
b. Such services are used for making an outward taxable supply of the same category of goods or services or both
Rent-a-cab, life insurance and health insurance

• ITC in respect of works contract cannot be availed, where its has been supplied for the construction of immovable property (other than plant & machinery)
• ITC on works contract services can be taken if services are input service for further supply of works contract service;
43
works contract services when supplied for construction of an immovable property (other than plant and machinery)
• ITC in respect of food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery shall not be allowed the If the such inward supplies are
used by any person for his/her personal consumption
• However, where such inward supply of such goods or services or both of are used by persons for making an outward taxable supply of the same goods or services or both then
such registered person shall be allowed to take ITC in respect of the said goods or services or both
Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery
Goods or services or both on which tax has been paid under section 10
• ITC on imports of goods received by non-resident taxable person shall not be allowed
• However ITC on goods imported by non-resident taxable person where, such person has paid IGST on imports of such goods or services or both, shall be allowed
Goods or services or both received by a non-resident taxable person
Membership of a club, health and fitness centre
Travel benefits extended to employees on vacation such as leave or home travel concession;
Goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own
account including when such goods or services or both are used in the course or furtherance of business.

44
Goods or services or both used for personal consumption
Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
Any tax paid in accordance with the provisions of sections 74, 129 and 130
Land, building or any other civil structures
Telecommunication towers
Pipelines laid outside the factory premises
Goods or services or both on which tax has been paid under section 10

45
Time of supply of goods or services
Goods
Earlier of
• Date of issue of invoice or Last date of issue of invoice u/s 31
• Date of receipt of payment by the supplier
Services
(a) Where invoice is issued within prescribed period under Section 31
(b) Where invoice is not issued within prescribed period under Section 31
If not possible to determine as per (a) or (b)
Earlier of
• The date of issue of invoice; or
• Date of receipt of payment
Earlier of
• The date of provision of service; or
• Date of receipt of payment
The date on which the recipient shows the receipt of service in books of account
Forward charge Reverse charge
Goods
Earliest of
• Date of receipt of goods or
• Date of payment
• 30 days from date of issue of invoice by the supplier
Services
Earlier of
• Date of payment
• 60 days from date of issue of invoice by the supplier
• Where it is not possible in terms of above - Date of entry in the books of account
of the recipient of supply
• In case of ‘associated enterprises’, where supplier is located outside India –
Time of supply will be earlier of
- Date of entry in the books of accounts of the recipient of supply
- Date of payment
Proviso

46
Time of supply of goods or services
Removal
Export
Domestic
Principal JW
Supply
Return
Inputs and capital goods
Inputs
(Within 1 year)
Capital Goods
(Within 3 year)
Without
payment of
GST
With
payment of
GST
• Principal can claim the ITC on inputs or capital goods removed to job workers premises
• Credit on inputs and capital goods available even if it is directly send to the job workers premises
• Removal of inputs to job workers premises will be on delivery challan
• Time limit of 3 years will not be applicable for Moulds and dies, jigs and fixture or tools
• If inputs or capital goods is not returned within 1 year and 3 year respectively then, removal of the same will be deemed to be supply on the date of removal and interest will
be payable @18& p.a. from the date of removal upto the date of expiry of such duration
• Any waste or scrap generated during the job work
✓ Job worker will supply it and pay GST on that – if JW registered
✓ Principal supplier is liable to pay GST on that – if JW unregistered

• Arunachal
• Pradesh
• Assam
• Manipur
• HP
• Meghalaya
• Mizoram
• Nagaland
• Sikkim
• Tripura
47
Composition levy
Aggregate turnover in
preceding FY did not exceeds
Special category States
except Uttarakhand & J&K
Other States including special category
State i.e. Uttarakhand but excludes J&K
Rs.50 Lacs Rs.75 Lacs
SI Category of registered person
Rate of tax
CGST SGST
1 Manufacturers, other than manufacturer of
• Ice cream and other edible ice, whether or not
containing cocoa
• Pan Masala
• Tobacco and manufactured tobacco substitutes
1% 1%
2 Supplier engaged in restaurant services 2.5% 2.5%
3 Any other supply 0.5% 0.5%
Conditions and restrictions for composition levy
• He is neither a casual taxable person nor a non residential person
• The goods held in stock by him on the appointed day have not been purchased
in the course of inter-State State or imported from a place outside India or
received from his branch situated outside the State or from his agent or
principal outside the State
• The goods held in stock by him have not been purchased from an unregistered
supplier and where purchased, he pays the tax under RCM
• He shall pay tax under RCM on inward supply of goods or services or both;
• He shall mention the words “composition taxable person, not eligible to collect
tax on supplies” at the top of the bill of supply issued by him
• He shall mention the words “composition taxable person” on every notice or
signboard displayed at a prominent place at his principal place of business and
at every additional place or places of business

48
Manner of return filing under GST
GST Network
Form GSTR - 1
Form GSTR - 1A
Form GSTR - 3
Form MIS - 1
Form GSTR - 9
Furnish details of outward supplies of taxable goods and/or services affected
Details of GSTR-1 as added, corrected or deleted by the recipient in Form GSTR-2
Return on the basis of GSTR-1&GSTR-2 along with payment of tax
Communication of acceptance, discrepancy or duplication of
ITC claim
Annual Return
Monthly - 10th
of succeeding
month
Monthly - 15th
of succeeding
month
Monthly - 20th
of succeeding
month
31st Dec of next F.Y.
Form GSTR – 2A
Form GSTR - 2
Auto-populated details of inward supplies made available to the recipient on the basis of Form GSTR-1 furnished by the supplier
Details of inward supplies of taxable goods and/or services claiming ITC. Addition (Claims) or modification in
Form GSTR-2A should be submitted in Form GSTR-2
Monthly – 15th of
Succeeding month
Monthly - 10th
of succeeding
month

6 Documents formats under GST

50
Document formats
Documents Situation Relevant provisions Format link
Tax invoice – Supplier of goods
Every registered person
a. Supply of goods &/or services
or
b. Registered person receiving
goods &/or services from a
unregistered person
Section 31 of CGST Act, 2017 read
with Rule 1 of Tax Invoice, Credit
and Debit Notes Rules,….
http://optitaxsconsulting.com/gst-knowledge-
portal/
Tax Invoice – Supplier of services
Tax Invoice – Supplier of goods (Export)
Tax Invoice – Supplier of services (Export)
Bill of supply of goods Every registered person
a. Opted for composition
scheme or
b. Engaged in supply of
exempted goods/services
Section 31 (3) (c) of CGST Act,
2017 read with Rule 4 of Tax
Invoice, Credit and Debit Notes
Rules,….
Bill of supply of services
Credit Note
Where the taxable value or taxed
charged in tax invoice exceeds
the taxable value or tax payable
in respect of such supply
Section 34 (1) of CGST Act, 2017
read with Rule 8
Debit Note
number 66 to 81

51
Document formats
Documents Situation Relevant provisions Format link
Receipt voucher Every registered person on receipt of advance
payment toward supply
Section 31(3)(d) of CGST Act,2017 read with
Rule 5 of Tax Invoice, Credit and Debit Notes
Rules,….
http://optitaxsconsulting.com/gst-knowledge-
portal/
Refund voucher Every registered person received advance
against supply but no subsequent supply is
made and no tax invoice is issued
Section 31(3)(e) of CGST Act,2017 read with
Rules,….
Payment voucher Every registered person
a. At the time of making payment to
unregistered person
b. At the time of making payment to person
supplying goods &/or services notified
under reverse charge
Section 31(3)(g) of CGST Act,2017 read with
Rules,….
Delivery challan Any movement of goods for reasons other
than by way of supply
Rules,….
number 66 to 81

7 GST Training

Optitax’s two days “In-depth GST Training Certification Course”
Office address: C-26/11, Ketan Heights, Kothrud, Pune 411 038
Ph. No.: 02025421898
Website: www.optitaxsconsulting.com
GST Training
EnglishMarathi
Batch details:
17th batch
Date: 7th and 8th July 2017
Timing : 8.30 AM to 6.00 PM
Batch details:
18th batch
Date: 7th and 8th July 2017
Timing : 8.30 AM to 6.00 PM
For enrolment/enquiry please contact:
Mrudula Patil Shejal Shah
Ph no. 7030935858 Ph no. 9545952132
Email: mrudula@optitaxsconsulting.com Email: shejal@optitaxsconsulting.com
Fees: Rs.5000/-*
(Per person)
* Fees is incl. of taxes,
breakfast & lunch
* Additional group
discount of Rs.500/-
** Terms & conditions
apply
Rs.4000/- for
students**

54
Raveendra Pethe
Senior Advisor, Optitax’s Consulting LLP
Mobile : +91 9823 010 562
Email : ravi@optitaxsconsulting.com
Sunil Kumar
Mobile : +91 9822 529 390
Email : sunil@optitaxsconsulting.com
Amrendra Chaudhri
Consultant, Optitax’s Consulting LLP
Mobile : +91 9823 445 595
Email : amrendra@optitaxsconsulting.com
Milind Kulkarni
Mobile : +91 9823 048 450
Email : milind@optitaxsconsulting.com
Thank You !

4.optitax's presentation on gst (25 june 17)

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