- The document discusses Goods and Services Tax (GST) implementation in India, which aims to create a single, unified market by subsuming multiple indirect taxes into one tax. - Constitutional amendments were made between 2003-2017 to lay the foundations for GST, which was finally implemented on July 1, 2017. - GST is expected to increase competitiveness by reducing costs and eliminating tax on taxes. However, it also increases compliance requirements and may cause cash flow issues for businesses during the transition period.

1. ARE YOU GST READY?
GOODS AND SERVICES TAX (GST) IMPACT AND TRANSITION STUDY
Prime Strategic Consultants

2. JOURNEY WITH GST
20172015/16201420112006/072003
Kelkar Task Force
suggested
comprehensive
Goods and Services
Tax
Budget Speech-
Plans to Introduce
GST by 2010
. Constitution
Amendment bill
was proposed in
March 2011
The old bill lapsed
and new bill
approved by the new
government was
sent for approval.
Lok Sabha approved
the new bill in May
2015 and Rajya
Sabha in August
2016 Constitutional
amendment bill was
passed in
September 2016
Implementation from
01 July 2017.

3. INTRODUCTION TO GST
Major Constitutional Amendments
Article 246A Empowers Union and State government to make
legislations with respect to GST. CSGT and SGST by
Central and State respectively. IGST by Central.
Collection and Levy of IGST and provisions of
apportionment between States and Union
government.
Article 269A
Article 271 There will be no more levy of surcharge on goods
and services on which GST is levied.
Article 279A The formation of GST Council which shall consist of
representatives from the state and union government.
Article 366 Definition of Goods, Services and Goods and Service
Tax.
Seventh
Schedule
Made Constitutional Amendments to Union and State
List entries.

4. INTRODUCTION TO GST
What is GST?
GST aims to subsume all the Indirect taxes into one single tax thereby
promoting the concept of a single, unified market for the whole of India ‘One
India One Market’. The credit of taxes paid at each stage in the chain will be
available as input tax credit. India will operate on a dual GST model with power
vested both with state and union government.
GST is nothing but a destination based consumption tax. This is the single most
important tax reform in India since Independence with 3 major acts and 9 rules.
The following taxes will be subsumed:

5. Technology Oriented GSTN is a robust IT network on which registration,
returns, refund etc. can be uploaded. This leads to a
transparent and technology driven system.
The rates of taxes for same products/services will be
uniform across India, thereby eliminating the need for
planning office/branches across states for tax saving.
GST- Advantages
Uniformity of Rate
Removal of
cascading tax effect
There will no more tax on taxes due to seamless
credit and reduction of multiple taxes.
Improved
Competitiveness
Reduction in cost of business and increase in
entrants from the whole country.

6. Higher Compliance The Compliance in the form of minimum 3 returns
each month for each state. Details of all invoices and
purchases to be uploaded.
GST- Areas of Concern
Timely Compliance There is a time limit prescribed for filing of return,
reconciliation and payment of taxes, since the whole
process is monitored by GSTN system; benefits will
lapse and penalties/interest may be levied on delay.
Change in levy and
Collection
There is a change in concept of levy, which under
GST is supply. There is also a change in place of
supply under GST, which is an important amendment
as revenue needs to shared between states. There is
a change in time of supply, which in comparison to
current regime may raise issues on working capital.

7. Dealing with
branches
Cash flow problems in dealing with branches.
GST- Areas of Concern
Registered v/s
Unregistered
Provision of reverse charge may apply in case of
unregistered dealers.
Revised provision of
Input tax credit
New revised provisions of taking input tax credit for
the purpose of planning.
Less Time to adapt There is very less time to adapt to the new regime.
Multiple rates Multiple rates for different goods and services.

8. Implementation Plan
01
Understanding of Business
Our team will undertake a detailed study of business process.
02
Rate mapping
Map the rates with the schedule of rates published.
03
Align Business process with GST- Complete Consultancy
Align with GST to get the maximum benefit and reduce concerns.
04
Transitional Support- Pre GST Implementation
Support during transitional stage and assistance in filing returns.
05
Post GST-Return and Reconciliation
Support at the time of filing return and reconciliation post GST

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