In this Presentation we will discuss GST for businessman and consumer, Transitional Provision under GST, Input Tax credit carried forward in GST.

1. GOODS AND SERVICE TAX

2. Existing Tax Structure
Tax Structure in India
Direct Taxes
Indirect Taxes
Income Tax Gift Taxes
State Tax
Central Tax
Custom Tax
Excise Duty
Service Tax
CST
Surcharge & Cess
VAT
Entertainment Tax
Luxury Tax
Entry Tax
Surcharge & Cess Taxes on Lottery
Security Transaction Tax
Property Tax
Stamp Duty
Electricity Duty
Environment Tax
Export Duty
Taxes on Betting &
Gambling

3. Proposed Tax Structure under GST
State Tax
Central Tax
Excise Duty
Service Tax
CST
Surcharge & Cess
VAT
Entertainment Tax
Luxury Tax
Entry Tax
Surcharge & Cess
Taxes on Lottery
Security Transaction
Tax
Taxes to be subsumed
under GST
Taxes not subsumed
under GST
Basic Custom Duty
Export Duty
Property Tax
Stamp Duty
Electricity Duty
Environment Tax

4. Now What is GST?
One Tax
For
Manufacturing
Trading
Services

5. Few Terms…
SGST ?
CGST?
IGST ?
Integrated GST
GST to be levied on
Inter State Supplies

6. Tax Invoice
Cost of Goods = 100
IGST @20% = 20
Total = 120
Tax Invoice
Cost of Goods = 100
IGST @20% = 20
Total = 120
How GST Levied?
Tax Invoice (A)
Cost of Goods = 100
SGST (G) @10% = 10
CGST @10% = 10
Total = 120
Tax Invoice (A)
Cost of Goods = 100
SGST (G) @10% = 10
CGST @10% = 10
Total = 120
Location of
Supplier in
different
state
Place of
Supply in
different
state
IGST
Location of
Supplier in
same state
Place of
Supply in
same state
SGST

7. LIMITATIONS OF CURRENT STRUCTURE
Credit of Excise not allowed
Credit of CST Not Available
MAHARASHTRA
MADHYA PRADESH
1. Cascading Effect of Tax

8. 2. Registration Under Different Act

9. No Entry Tax
Entry Tax
Value Added Tax
e.g. on Sugar
@ 4%@ NIL %
4. Lack of Uniformity

10. 5. Goods Vs. Services dilemma &
Manufacturing Vs. Service dilemma:
Sale
Manufacturing
License Software
in CD
Services
Sale of Food In
Restaurant

11. Burden of Tax make
Local goods Costlier
in International
Market
6. Limited Export

12. Different
Reg. no.
Different
Tax Rate
Different
Details
Different
Valuation
Different
Forms
Different
Format
Manual/
Online
7. Complicated Invoice
Different Rules are
require to be
followed under
Different Acts

13. Other Benefit of GST
Logistic Benefit
Purchasing Option
Transparency
Abolishment of
Purchase & Entry Tax

14. How GST will work?

15. Are you covered under GST?
Threshold
Limit
Existing Taxes
Excise Rs. 150.00 Lakh
Service Tax Rs. 10.00 Lakh
VAT Rs. 10 Lakh/ Voluntary
Proposed Tax GST
Rs.20.00 Lakh in other
No Limit for
- Interstate Supplies
- Reverse Charge
- TDS (Like WCT)
- Agent

16. Registration
Compulsory Registration for
Each State where business
situated
Option to take multiple registration
for each business within same state

17. TRANSITIONAL PROVISION
Pre-GST
Registration under existing law i.e. VAT,
S.Tax, Excise, etc
Not registered under existing law But
liable to get Registration under GST
LAW:
Issue of Registration Certificate on Provisional Basis
which will be valid for 6 Months
Apply for Registration within 30 days of
becoming liable to Registration as per
Section 19.
Liable to Reg under GST Not Liable to Reg under GST
Liable to furnish Info within
prescribed time
Info furnished Info not furnished
Final Registration Granted
Registration will be cancelled
Follow the procedure as let down
under Section 19
Apply for cancellation of
Registration

18. ELIGIBILITY FOR COMPOSITION SCHEME
Taxable
Supplies
Exempted
Supplies
Export
Non-Taxable
Supplies
All supplies should be
below Rs. 50.00 Lakh
Inter State Supplies not allowed

19. ELIGIBILITY FOR COMPOSITION SCHEME
Transaction all over the India
should be consider for
eligibility i.e. PAN based
turnover
Input Tax Credit
Not allowed.
Taxes to be paid in Cash

20. Other Point related to scheme
E.g.: If Mr. X has to opt for composition scheme from 1st April, 2018, he has to fill the application on or before 31st
March, 2018.
If during the year, Mr. X’s turnover exceeds 50 lakhs at any point of time, his opted composition scheme will lapse
and he will be shifted to the Normal scheme automatically.
Opt for scheme from 1st of financial year only
Application should be filed before 31st march of
previous year
Can shift from composition scheme to normal
scheme at any time during year
Automatically shift to normal scheme if turnover
exceed Rs.50.00

21. Shift over from Normal scheme under Existing Law to Composition Scheme under GST
Normal Scheme in existing Law
Want to Opt Composition Scheme under GST
There is unutilized credit under existing law
Pay an amount
equal to Credit of
stock held utilized
for pay tax
Un-utilized
Credit will Laps
i.e. reverse it

22. Invoice Under GST
Tax Invoice
Name of Supplier
Address of Supplier
GST Registration No. of Supplier
Customer Name : Date : DD/MM/YYYY
Customer Address : Invoice No:
Customer GST No. :
Sr. Description of Goods/Service *HSN Code of
Goods
Qty Rate Total Abetment Taxable
Supplies
1 XYZ 10 100 1000 1000
Total 1000 1000
Add: CGST @10% 100
Add: SGST @10% 100
Total 1200 1200
Authorized Signature*HSN -Harmonized System of Nomenclature (HSN)

23. Input Tax Credit

24. Do You know Input Tax Credit?
State Tax= 14
( 10 + 2 + 2)
SGST = 10
SGST = 12
ITC = ( 10)
Pay = 2
SGST=14
ITC = ( 12)
Pay = 2
CGST =10
CGST = 12
ITC = (10)
2
Tax Invoice (A)
Value = 100
CGST = 10
SGST = 10
Total = 120
Tax Invoice (B)
Cost = 100
Value = 120
CGST = 12
SGST = 12
Total = 144
Tax Invoice (C)
Cost = 120
Value = 140
CGST = 14
SGST = 14
Total = 168
Central Tax= 14
( 10 + 2 + 2)
CGST= 14
ITC = (12)
2
Input Manufacturer Output Manufacturer Dealer Consumer
CGST
Rate :
10%
SGST
Rate :
10%
Credit on purchase of Input i.e. Raw Material, finished goods, Input service

25. what about credit on existing
stock?
Eligible persons Credit entitled As on
Person applied for
registration within 30
days of liable to register
Inputs held in stock &
inputs contained in
Semi finished or
finished goods held in
stock
The day immediately preceding the
date from which he becomes liable to
pay tax
Person who is not required to
register, but obtains Voluntary
registration
The day immediately preceding the
date of registration
Person ceases to pay composition tax The day immediately
preceding the date from which he
becomes
liable to pay tax under regular scheme
Person applied for
registration After 30
days of liable to register Not entitle to take Input Tax Credit

26. Credit Under Existing Law Carried Forward
Input Tax
Credit
CENVAT credit
VAT credit
It includes
Central excise
Service Tax
Education cess
NCCD
krishikalyan cess (only to service
provider)
Additional duty u/s 3(1) of
Custom Tariff Act
It includes
ITC under VAT law of
state
 CVD 3(5) under CTA
CGST
SGST

27. Transitional Provision of Credit Of Input Held In Stock
I) If assessee is not liable to Register under existing law i.e. VAT & Service Tax because of following reasons:
 Turnover not exceeding Rs.1 crore.
 Deals in exempted goods .
 Paying tax in composition scheme.
II) And he is liable to register under GST:
 So assessee is eligible to take credit of input held in stock on applicable date of GST in following manner.
CENVAT credit VAT credit
It includes
ITC under VAT law of state
 CVD 3(5) under CTA
Can be availed against payment of CGST i.e.as
a CGST Credit
Can be availed against payment of SGST i.e.as
a SGST Credit
It includes
Central excise
Service Tax
Education cess
NCCD
 krishikalyan cess (only to service provider)
Additional duty u/s 3(1) of CTA

28. i. This Stock is used for making taxable goods
ii. Entity is not opted for composition scheme i.e. SEC 8
iii. Eligible to take credit under earlier law but not taken due to limit or due to
exempted goods or Composition scheme.
iv. Person is eligible to take credit under GST law.
v. Having invoice/document of this stock as on applicable date of GST.
vi. Above invoices/documents issued not earlier than 12 months of applicable date
vii. Amount should be calculated as per GAAP .
CONDITIONS FOR TAKING CREDIT OF INPUT HELD IN STOCK U/S 145

29. Transitional Provision for CAPITAL GOODS U/S 144
In case of capital goods, credit under excise is allowed in two equal installments :-
50% in the year of purchase and 50% in the subsequent year or thereafter.
Credit booked in year of purchase & c/f in
return
Credit not booked in year of purchase i.e. not c/f as
per return.
Carried forward in GST as
CGST/SGST as the case
may be
Carried forward as per sec.144 in following manner
Cenvat Credit VAT Credit
GST
It includes
Central excise
NCCD
 Special Duty/ Countervailing Duty
Additional duty u/s 3(1) of CTA
It includes
ITC under VAT law of state
 CVD 3(5) under CTA
CGST SGST

30. RETURN
1
• Upload the detail of outward supplies-including taxable supplies, exempt, export, deemed supplies, etc
BY 10TH OF NEXT MONTH under GSTR-1
2
•Auto-draft of provisional GSTR-2 based on the detail uploaded under GSTR-1 by supplier. By 15th of
next month
3
•Accept/reject/modify such auto-drafted provisional GSTR-2
4
•Add additional purchase detail in GSTR-2 which has not been uploaded by the supplier
5
•Reconcile the GSTR-1 & GSTR-2 & finalize using online/offline facility
6
•GSTR-3 automatically generated on finalization as in Step:5
7
•Pay the amount as shown in payable under GSTR-3 & file the return by the 20th of next month.

31. • Identify whether you cover under GST
• Revision of existing contract and existing contracts should be drafted by
considering the GST Provisions.
• Decide whether to opt for Normal Scheme or Composition Scheme under GST.
• Update your Accounts & Accounting Software before 31st of March to take
credit carried forward in return
• Training to team/employee
• If you are trader plan to obtained excisable invoice so that you can take credit of
that as CGST
• Update your Accounting software
ACTION TO BE TAKEN

32. CA Nikhil Malaiya
ACA, B.com
Cell: 9545727818