Presentation on GST for CA, CS and CMA professionals

1. GOODS AND SERVICE TAX
(GST)
R V K S And Associates, Chartered Accountants

2. Opportunities to CS under
GST
 The indirect tax law in India is in its last leg of maturity
 It’s a big major change in principle and no further change is
anticipated
 All professionals on a common platform – almost
 Not all professionals deal with all areas covered under GST
 Everyone is learning or unlearning
 Past legal pronouncements are immaterial – save ratios

3. Opportunities to CS under
GST
 Less complicated law; more importance on procedures
 Compliance vis-à-vis Litigation practice
 Only model law is released. Preparatory time is available now
 Technology to learn and update

4. Need for GST
 A complete destination based tax system
 Benefit principle of taxation – 2 ideas – Beneficiary pays & Proportionately
pays’
 A single tax to replace multiple indirect taxes levied both at the Centre and State
level.
 Cascading effect of tax as set-off of prior-stage taxes was not available.
 Tax burden on goods and services had to be reduced benefiting common man.
 To make our products competitive in domestic and international markets.
 To boost economic activity and create more jobs.

5. Constitutional Amendment
 Article 246 draws a line of restriction on Centre and States due to
which State cannot levy tax on Services and center on sale of goods.
 The Constitution (122nd) Amendment Bill was passed in this effect
wherein Article 246A is inserted to provide for levy of GST
 Article 269A is inserted for levy of GST on inter-State supply of
goods and services by the Centre and for creation of GST Council
 Compensation to the States for loss of revenue arising on account of
implementation of the GST for a period extending upto 5 years
 Additional tax of 1% on supply of goods for the originating state in
case of inter state transaction is dropped

6. Way Ahead…
Whether GST is a Money Bill or a Finance Bill…???
Passing of
CAB by 15
states
President
Assent to
CAB
Formation
of GST
Council
within 60
days
Passing of
GST Act
and IGST
Act by CG
Passing of
SGST Act
by SG
Developin
g of GSTN
GST Roll
out 1.4.17

7. GST Council
 President to constitute GST council with 60 days
 It is constitutional body
 GST Council would be constituted comprising the Union Finance
Minister, MoS (Revenue) and the State Finance/Taxation Ministers
 Votes cast by states would two-third weightage whereas the centre
would get a one-third weightage
 Quorum of 50 percent and decisions will be taken with a at least
three-fourth weighted majority voting for a resolution

8. GST Council… cont’d
 Council to recommend on:
 the taxes cesses and surcharges to be subsumed under GST
 goods and services that may be subjected to or exempted from
GST
 date from which the specified petroleum products would be
subject to GST
 GST laws, principles of levy, apportionment of IGST and
principles that govern the place of supply
 threshold limit of turnover below which the goods and services
may be exempted from GST
 Modalities to resolve disputes arising out of its recommendation.

9. Taxes To Be Levied In GST
 State Goods and Services Tax (SGST) – Levied by the State
Government for supply of goods or services within the state
 Central Goods and Services Tax (CGST) – Levied by the Central
Government for supply of goods or services within the state
 Integrated Goods and Services Tax (IGST) - Supply of Goods, or
of services, or both in the course of interstate trade or commerce.
Note: IGST will levied on supply of goods or of services in the
course of Import into the territory of India.

10. Taxes Subsumed in CGST
CGST
Central
Excise and
Additional
Duty
Central Sales
Tax
Service Tax
SAD charged
in lieu of
VAT
CVD charged
in lieu of
excise
Cess like SB
Cess, KK
Cess, Infra
Cess

11. Taxes Subsumed in SGST
SGSTVAT
Entertainment
Tax
Luxury
Tax
Taxes on
Lottery,
Betting
Entry Tax
Cess and
Surcharge

12. Taxes Subsumed in IGST
IGST
CGST SGST

13. Taxes not subsumed in GST
 Stamp Duty
 Excise duty on alcohol and liquor
 Taxes on profession and trade
 Electricity duty
 Basic Custom duty
 Safeguard duty – levied on import of steel
 Octroi
 Taxes on Vehicles – Road Tax
 Entertainment tax levied by local bodies
 Tolls

14. Products out of GST
 In the initial year five petroleum products
i. Diesel
ii. Petrol
iii. Natural gas
iv. Crude petroleum
v. Aviation turbine fuel
 Alcoholic beverages (state excise would continue to apply)
 Note: Tobacco products are subjected to GST with ITC.
Centre will levy excise duty on tobacco products over and
above GST with ITC.

16. Structure of the Model GST
Law
 25 Chapters
 162 clauses
 4 Schedules:
 Schedule I – Matters to be treated as supply without consideration
 Schedule II – Matters to be treated as supply of goods or services
 Schedule III - Liability to be registered
 Schedule IV - Activities of Govt. which are exempted
 GST Valuation (Determination of Value of supply of goods and
services) Rules, 2016

17. Features of GST
 GST - applicable on the supply of goods or services.
 GST - a destination based consumption tax.
 There is a levy on value addition at each stage
 Dual GST with the Centre and States simultaneously levying it on a
common tax base.
 GST levied by the Centre would be called Central GST (CGST) and that to
be levied by States would be called State GST (SGST).
 GST would apply to all supply barring a few to be specified.

18. Features of GST
 The CGST and SGST would be levied at rates to be jointly decided by the
Centre and States.
 The rates would be notified on the recommendations of the GST Council.
 There would be a floor rate with a small band of rates within which the
States may fix the rates for SGST.
 The exemption list may be common for the Centre and the States.
 In GST. tax payers shall be allowed to take credit of taxes paid and utilize
the same for payment of output tax.

19. Features of GST
 An Integrated GST (IGST) would be levied and collected by the Centre on
inter-State supply of goods and services.
 Parliament will have exclusive power to make laws with respect to levy of
IGST on inter-State trade or commerce.
 SGST portion of IGST shall be transferred to the destination State where the
goods or services are eventually consumed.
 Exports shall be treated as zero-rated supply. No tax is payable on exports
but ITC related to the supply shall be refunded to exporters.
 No mechanism for upfront zero rating of supplies of goods and services
required for authorized operations of SEZ / EOU / STP units

20. Features of GST
 Other statue like SEZ Act, 2005 which are inconsistent will be amended to
bring in tune with GST
 Import of goods/services would be subject to IGST in addition to basic
customs duty.
 Laws and procedures for levy and collection of CGST/SGST would be
harmonized to the extent possible.
 GST rate may vary between Center and State
 Tax payers making inter-State supplies or paying tax on reverse charge
basis shall not be eligible for threshold exemption or composition scheme

21. Features of GST
 Unlike the State VAT, the date of commencement of this levy would need to
be synchronized across the Centre and the States. This is because the IGST
model cannot function effectively unless the Centre and all the States
participate simultaneously.
 GST is payable under RCM for both goods and services
 Tax Invoice V/s Bill of Supply
 Tax amount should be compulsory shown in the tax Invoice. No inclusive
of taxes

22. Taxable Person – Section 9
 Means a person who is registered or required to be registered under
Schedule III.
 Liability to pay tax arises only when the taxable person crosses the
exemption threshold
 The Central / State Government and local authorities are also regarded as
taxable person.
 Persons who are not regarded as taxable persons under GST:
 an agriculturist
 an employee providing services to his employer
 person dealing with goods and/or services that are not liable to tax
under the Act
 person receiving services of value not exceeding Rs….. in a year for
personal use

23. Registration
 Tax payers with an aggregate turnover in a financial year up to [Rs.10
lakhs] would be exempt from tax.
 For NE States and Sikkim, the threshold exemption shall be [Rs. 5 lakhs]
 Aggregate turnover means the aggregate value of all taxable and non-
taxable supplies, exempt supplies and exports of goods and/or services of a
person having the same PAN
 Aggregate turnover shall be computed on all India basis.
 Aggregate turnover excludes taxes, if any, charged under the CGST Act,
SGST Act and the IGST Act, as the case may be

24. Registration
 Tax payers making inter-State supplies or paying tax on reverse charge
basis shall not be eligible for threshold exemption.
 On the appointed day, every person registered under any of the earlier
laws shall be issued a certificate of registration on a provisional basis
 Time limit of 6 months from the appointed date to obtain the final
registration
 Schedule III of the Model GST Law prescribes that every supplier shall be
liable to be registered in the State from where he makes a taxable supply of
goods and/or services if his aggregate turnover in a financial year exceeds
[Rs nine lakh]

25. Registration
 Supplier shall not be liable to registration if his aggregate turnover consists
of exclusively of goods and/or services which are not liable to tax
 Application for registration shall be made within 30 days from the date
when he becomes liable for registration
 Voluntarily registration is also permitted
 Application for Registration will be online
 Registration to be granted State-wise. A person having multiple business
verticals in a State may obtain separate registration.
 Registration shall be deemed to have been granted if no deficiency is
communicated to the applicant within the prescribed period (3 days)

26. Registration
 Cancellation of registration under CGST Act means a cancellation of
registration under SGST Act and vice-versa.
 No Centralized Registration concept in GST
 Liability to be registered irrespective of threshold
 Persons making inter-State taxable supply
 Persons required to pay tax under reverse charge
 Casual and non-resident taxable persons
 E-Commerce operator
 Persons who supply goods through e-commerce operator
 An aggregator who supplies services under his brand name
 Input Service Distributor (ISD)
 Persons required to deduct tax at source

27. Composition Scheme
 Small taxpayers with an aggregate turnover up to [Rs. 50 lakhs] in a FY
shall be eligible for composition levy.
 Under the scheme, a taxpayer shall pay tax as a percentage of his turnover
during the year without the benefit of ITC.
 The floor rate of tax for CGST and SGST shall not be less than [1%]
 A tax payer opting for composition levy shall not collect any tax from his
customers.
 If opted, composition scheme will applicable for all branches/units
 Tax payers making inter-State supplies or paying tax on reverse charge
basis shall not be eligible for composition scheme.

28. Exemption
 On the recommendation of the Council, the Central/State Govt.
may, by notification, exempt specified goods and/or services from
payment of CGST/SGST.
 Exemptions are of two types: General and Conditional
 General exemptions are universal in nature and are issued in public
interest.
 Conditional exemptions are issued in public interest to deal with
circumstances of an exceptional nature.

29. Rate of tax in GST
 Revenue Neutral Rate (RNR) will be worked out
 GST rate to be decided by GST Council
 Standard Rate - between 18% to 22%.
 Merit Rate – around 12%
 Special Rate – between 2% to 6%
 Demerit rate – upto 40%
 Composition Rate – CGST 2% & SGCST 2%

30. Input Tax Credit Set Off
 Manner of utilization of credit:
 ITC on account of CGST shall first be utilized towards payment of
CGST; the amount remaining, if any shall be utilized towards payment
of IGST
 ITC on account of SGST shall first be utilized towards payment of SGST;
the amount remaining, if any shall be utilized towards payment of IGST.
 No ITC on account of CGST shall be utilized towards payment of
SGST and vice versa.
 ITC on account of IGST shall first be utilized towards payment of IGST;
the amount remaining, if any shall be utilized towards payment of
CGST and SGST, in that order.

31. Input Tax Credit
 A taxable person may take the credit and utilize the same for payment of
output tax.
 Unutilized credit can be carried forward or can be claimed as refund in
certain situations.
 Condition for availing of ITC by taxable person:
 he is in possession of a tax invoice
 he has received the goods and/or services
 the tax charged in respect of the supply has been paid to Government
 he has furnished the return
 ITC cannot be availed on invoices which are more than one year old.
 ITC is available for business purposes and in respect of all taxable supplies.

32. Input Tax Credit
 ITC is available on all goods other than goods and/or services in the
negative list.
 Negative list comprises, inter alia,
 motor vehicles (except when they are used for certain purposes)
 goods and services provided in relation to food and beverages, outdoor
catering, beauty treatment etc.
 Goods/services acquired by a principal in the execution of works
contract resulting in construction of immovable property
 Full ITC shall be allowed on capital goods on its receipt
 No credit on inputs/ input services used for private or personal
consumption
 Electronic duty Credit register available online will contain credit details

33. Import of Goods and Services
 IGST will be levied on import of goods and services into the country.
 The incidence of tax will follow the destination principle (Place of supply
rules).
 Tax revenue in case of SGST portion of IGST will accrue to the State where
the imported goods and services are consumed.
 Full and complete set-off will be available on the IGST paid on import on
goods and services.
 Thus, import of goods will attract BCD and IGST. It may be noted that
import of services, as against service tax at present, in GST regime, will
attract IGST.

34. Refund
 Only Two Types of refund in GST:
i. refund of tax on goods and/or services exported out of India or on
inputs used in the goods and/or services which are exported out of
India
ii. inverted duty structure
iii. other instances like wrong payments, incentives, foreign tourists,
diplomats, assessments, etc
 Refund can be claimed within 2 years from the relevant date.
 Refund shall be granted within 90 days from the date of receipt of
application.

35. Refund
 In case of refund claim on account of exports, 80% of the claim can be given
immediately on a provisional basis.
 Applicant shall produce documentary evidence that he has not passed on
the incidence of tax on to any other person.
 No need to furnish such evidence if the refund claim is less than Rs. 5
lakhs. Self-certification would suffice.
 Interest payable after 3 months from the date of receipt of application till
the date of refund.

36. Goods and Service Tax Network
(GSTN)
 Section 8 company – Non profit entity
 Shares are held by Centre, State and non government financial
institutions
 Build the technology Infrastructure for GST
 Manage back-end tasks such as tax settlement, assessment, refunds,
etc.

37. Goods v/s Service
 Section 2(48) – Goods:
Goods means every kind of movable property other than actionable claim
and money but includes securities, growing crops, grass and things
attached to or forming part of the land which are agreed to be severed
before supply or under the contract of supply;
Explanation:
For the purpose of this clause, the term ‘moveable property’ shall not
include any intangible property
 Section 2(88) – services - means anything other than goods;
Explanation:
Services include intangible property and actionable claim but does not
include money

38. Goods v/s Service – Schedule
II
 Transfer of goods or of right in goods without transfer of title thereof, is a
supply of service
 Transfer of title in goods under an agreement which stipulates that property
in goods will pass at a future date upon payment of full consideration is
supply of goods (Hire purchase transaction)
 Supply of service
 Job work is a service
 Construction, repair, supply
 Temporary transfer or permitting the use of any IPR
 Information Technology
 Agreeing to the obligation to refrain from an act, or to tolerate an act or a
situation, or to do an act
 Works Contract
 Supply of food in a restaurant

39. Meaning And Scope Of
Supply
 Under GST regime, tax is payable on the supply of goods and/or
services.
 Supply includes:
i. All forms of supply such as
made or agreed to be made for a consideration in the course or
furtherance of business.
Sale Transfer Barter Exchange
License Rental Lease Disposal

40. Meaning And Scope Of
Supply
ii. Specified supplies made or agreed to be made without a
consideration – Schedule I.
iii. Importation of service, whether or not for a consideration
and whether or not in the course or furtherance of business.
iv. Transaction between a principal and agent shall be deemed
to be a supply.
v. Supply of any branded service by an aggregator under a
brand name shall be deemed to be a supply.

41. Supplies made without
consideration – Schedule I
 Permanent transfer/disposal of business asset
 Temporary application of business assets to a private or non-
business use
 Services put to private or non-business use
 Assets retained after deregistration
 Supply of goods and/or services by a taxable person to another
taxable or non-taxable person in the course or furtherance of
business

42. Time of Supply of Goods
Earliest of the following:
i. Goods are required to be removed -date when goods are removed
ii. Goods are not required to be removed - date when goods are made
available to the buyer
iii. Date of invoice
iv. Date of receipt of payment by supplier
v. Recipient shows receipt of goods in his books

43. Time of Supply of Service
 The time of supply of services shall be:-
i. If the invoice is issued within the prescribed period – Earliest of
date of invoice or date of receipt of payment
ii. If the invoice is not issued within the prescribed period - the date
of completion of provision of service or the date of receipt of
payment, whichever is earlier
iii. Where the above provisions do not apply – the date on which
the recipient shows the receipt of services in his books of
account

44. Time of Supply of goods/service
under reverse charge
 Earliest of the following:
i. The date of receipt of services/goods
ii. The date on which the payment is made
iii. The date of receipt of invoice
iv. The date of debit in the books of accounts.

45. Time of Supply vis-à-vis Rate of
Tax
Services
Provided
Invoice
Issued
Payment
received
Time of Supply
Before
(31-Mar-17)
After
(10-Apr-17)
After
(20-Apr-17)
Earlier of date of invoice or receipt
of payment
(10-Apr-17)
Before
(31-Mar-17)
Before
(20-Mar-17)
After
(10-Apr-17)
Date of Invoice
(20-Mar-17)
Before
(31-Mar-17)
After
(10-May-17)
Before
(15-Mar-
17)
Date of receipt of Payment
(15-Mar-17)

46. Time of Supply – Change in Rate
of Service
Services
Provided
Invoice
Issued
Payment
received
Time of Supply
After
(30-Apr-17)
Before
(10-Mar-17)
Before
(20-Mar-17)
Earlier of date of invoice or
receipt of payment
(10-Mar-17)
After
(30-Apr-17)
Before
(10-Mar-17)
After
(10-May-17)
Date of receipt of payment
(10-May-17)
After
(30-Apr-17)
After
(20-May-17)
Before
(25-Mar-17)
Date of Invoice
(20-May-17)

47. Place of Supply Rules
Intra-State Supply Inter-State Supply
Karnataka Bihar Karnataka Bihar
Location of
the
Supplier
Place of
Supply
Location of
the
Supplier
Place of
Supply

48. Valuation
Whether goods/services are supplied by the assessee
Whether Price is the sole consideration
Whether price paid/payable wholly in money
Supplier and recipient are not related
Transaction Value
In the above flow chart, even if one of the conditions is not satisfied then valuation
will be as per Valuation Rules

49. Transaction Value
 Transaction value will include
 Any taxes, duties, fees and charges levied under any statue other than SGST,
CGST and IGST
 Royalties and License fees
 Incidental expenses such as commission and packing for any activity done
by the supplier in respect of supply of goods or services
 Subsidies provided in any form or manner linked to the supply
 Any reimbursable expenditure
 Any discount or incentive that may be allowed after the supply has been
effected

50. E-Commerce Operator
 Electronic commerce operator shall include every person who, directly or
indirectly, owns, operates or manages an electronic platform that is
engaged in facilitating the supply of any goods and/or services or in
providing any information or any other services incidental to or in
connection there with but shall not include persons engaged in supply of
such goods and/or services o their own behalf.
 E-commerce operatory would be required to collect TCS on amounts
credited to the suppliers account
 File returns within 10 days

51. Comparative Analysis
Nature of Transaction Existing Regime GST Regime
Manufacture and Sale from
Bangalore to Mysore – Intra State
transaction
Excise Duty + VAT CGST + SGST
Manufacture and Sale from
Bangalore to Chennai – Inter State
transaction
Excise Duty + CST at local
rate / CST at concessional
rate
IGST
PCS renders service to a client in
Bangalore
Service Tax CGST + SGST
PCS renders service to a client in
Chennai
Service Tax IGST
Import of Goods Custom Duty + CVD + SAD Custom Duty +
IGST
Import of Services Service Tax under RCM IGST under RCM
Branch Transfer - Goods ED + No VAT+ No CST
Reverse 2% VAT Credit
CGST & SGST/
IGST

52. Comparative Analysis
Nature of Transaction Existing Regime GST Regime
Branch Transfer – Service NIL/ No Reversal of CENVAT
Credit
CGST & SGST/ IGST
Job Work Central Excise or Service Tax No tax upto180 days
Free Samples – Distributed
within Country
ED+ No VAT – Reversal of
proportionate ITC
CGST + SGST /
IGST
Free Samples – Outside the
Country
No impact No impact
Transaction between Principal
and Agent (Consignment Sales)
ED + No VAT – Reversal of
proportionate ITC
CGST + SGST /
IGST
Branded Aggregator Service Service tax by the Aggregator CGST + SGST /
IGST by the
aggregator
E-commerce – Operator’s
activity
ST on service charged by the
operator on Merchant
CGST + SGST /
IGST on Service

53. Returns to be filed in GST
GSTR-1
•Outward Supply
•File within 10 days after the end of the month
GSTR-2
•Inward Supply
•File within 15 days after the end of the month
GSTR-3
•Monthly Returns
•File within 20 days after the end of the month
GSTR-4
•Person registered under composition scheme
•File within 18 days after the end of the quarter

54. Returns to be filed in GST
GSTR – 5
•Return to be filed by Non - Resident
•Monthly returns - File within 18 days after the end of the month
•7 days after expiry of registration
GSTR – 6
•Input Service Distributor
•Within 13 days after end of the month
GSTR – 7
•TDS/TCS Returns
•File within 10 days from the end of the month
GSTR – 8
•Annual Return
•31st December following the end of the financial year

55. Annual Return
 Annual return needs to be filed online
 Annual return shall be filed by every registered taxable person
other than
 ISD
 Deductor deducting TDS
 Casual taxable person
 Audited statement of accounts and reconciliation statement to be
submitted along with the Annual Return by certain taxable persons

56. Late filing Fee
Defaulted Return Late Fee
Return on Outward
Details
Rs. 100 per day of delay, Max of Rs. 5,000
Return on Inward
Details
Same as Above
Monthly Return Same as Above
Annual Return Rs. 100 per day of delay
Maximum = 0.25% of Aggregate turnover

57. Invoice Matching
 On filing of return by the taxable person, his inward supplies and/or
debit notes shall be matched with the corresponding outward supplies
and/or debit notes declared by the supplier in his tax return.
 On matching, the ITC claimed by the taxable person shall be finally
accepted and he shall be informed.
 In case of mis-match, the discrepancy shall be notified to the taxable
person and his supplier.
 Where the supplier does not rectify the discrepancy in his return, the
amount to the extent of discrepancy shall be added to the output tax
liability of the taxable person.

58. Invoice Matching
 Likewise, the reduction in tax liability due to issue of a credit note by the
supplier shall be matched with the reduction in ITC claimed by the
recipient in his return.
 In case of matching, such reduction in the tax liability shall be finally
accepted and communicated to the supplier.
 In case of mis-match, the discrepancy shall be notified to the supplier and
the recipient.
 Where the recipient does not rectify the discrepancy and reduce his ITC
claim in his return, the amount to the extent of discrepancy shall be added
to the output tax liability of the supplier.
 A taxable person can reclaim the ITC reversed only after the concerned
supplier furnishes the details of invoice and/or debit note in his return.

59. Compliance Rating
 Every taxable person shall be assigned a GST compliance rating score
based on his record of compliance with the provisions of this act.
 To be determined based on parameter which are yet to be prescribed
 GST compliance rating score shall be updated and placed in the public
domain
 Large companies may deal with only those dealers who would has a
specific minimum rating
 Department my carry out search or seizure on assessee who have very less
rating

60. Assessment
 Self Assessment - Taxable person shall himself assess the taxes
payable and pay tax
 Turnover upto 1.5 cr – Assessment will be done by State
 In case of Inter state transaction – Center will carry out the
assessment irrespective of the turnover.
 Turnover more than 1.5 cr, both Center and State will do the
assessment

61. Assessment
 Taxable person may request for provisional assessment in cases where
he is unable to determine the value or rate of tax
 Provisional assessment is to be finalized within 6 months
 After final assessment, the taxable person shall be liable to pay
additional tax or may claim refund, as case may be
 Books of accounts should be retained for 60 months from the date of
filing annual return

62. Audit by department
 Audit can be conducted at the place of business of the taxable person or at
the office of the tax authorities.
 Taxable person shall be informed sufficiently in advance, prior to the
conduct of audit.
 Audit shall be carried out in a transparent manner.
 Audit to be completed within 3 months, extendable by a further period of 6
months.
 On conclusion of audit, the proper officer shall without delay notify the
taxable person of the findings, the taxable person’s rights and obligations
and reasons for the findings.

63. Transitional Provisions
 Cenvat credit / VAT carried forward in a return shall be allowed as
input tax credit under GST.
 Un-availed Cenvat credit on capital goods, not carried forward in a
return, shall also be allowed as ITC under GST.
 Credit of eligible duties and taxes in respect of inputs held in stock
shall be allowed to a registered taxable person.

64. Transitional Provisions
 Taxable person paying tax under composition scheme in the current regime can
take credit of eligible duties and taxes in respect of inputs held as stock in the
form of RM, semi finished or finished goods
 If a taxable person carries forward eligible credit in a return and switches to
composition scheme then he shall pay tax equivalent to the credit on inputs,
semi finished goods, capital goods held with him
 Where the price is revised in pursuance of a contract after the appointed date,
the supplier will issue a supplementary invoice either as debit or credit notes
within 30 days. Supplementary invoice will either be treated as Inward supply
or outward supply

65. Special Points in GST
 No tax is payable on the goods removed/despatched earlier but returned to
the place of business within 6 months after the introduction of GST
 No tax is payable if input, semi finished goods and finished goods
removed for job work and returned within 6 months
 Capital goods removed for Job Work needs to be returned within 2 years
 Registration may be canceled if returns not furnished for continuous period
of 6 months
 In GST, forms such as C form, E1 and E2 form will go away
 E-sugam concept will be there in GST

66. Special Points in GST
 As per Section 37, Central/State Govt. dept, local authority, Governmental
agencies to deduct tax at 1% on payment made/credited to supplier of
taxable supplies where the total value of supply under a contract exceeds
10L.
 TDS amount to be credited by the deductor within 10 days
 Where goods or services or both used both for taxable and non taxable
supplies – proportionate credit to be availed
 Immovable property is outside the purview of GST
 Document invoices of Stock on which Excise Duty is paid as credit on it can
be claimed in GST

67. Special Points
 Ongoing contracts which are inclusive of taxes
 MRP based sales – have less stock as on 31st Mar’17
 Act is prepared for safeguarding revenue but not for the assessee
 Inspection under GST can be carried even at odd hours.
 Excise Tariff disputes may go away in GST
 Concept of abatement may not be there in GST
 Only 9 codes for payment of tax under GST

68. GST Impact on various
Sectors
 Manufacturing
 Construction
 Information Technology
 Education Sector
 Health Care Sector
 Entertainment Industry
 FMCG
 Hospitality

69. Impact on Company Secretary
(CS)
 Increase in Tax Rate
 Working capital management
 Option to opt for Composition Scheme
 Satisfying pure agent concept for payments made on behalf of clients
 ST under RCM to be paid on few Govt. Services
 VAT and Excise Duty Input Credit. Egs: Electronics, Furniture etc.

70. Opportunities for Company
Secretary
 Educating clients and restructuring their business system
 Procedural compliance like – Registration, Filing returns etc
 Consultancy Services
 Support clients on refund claims
 Health check up and tax planning
 Representation services

71. Advantages in GST
 India will be a common market. Boost for Karnataka State
 Removes cascading effect of taxes
 Ease of doing business
 Simplified law
 Increased Assessee base
 Reduction in taxes in long run
 Less of tax evasion
 Reduced litigation
 Less corruption

72. Challenges in GST
 Impact on Service sector
 Managing the Working capital
 Controlling Inflation in short run
 IT infrastructure PAN India
 Adjudication with two department
 Granting exemption for certain products
 Matching of Credit for claiming Input Credit
 Carrying forward the supply chain
 Rigorous penalty provisions

74. Contact Us:
9845 154 880
mohan@rvkassociates.com
9844 000 207
pankaj.r@rvkassociates.com
R. Mohan
Pankaj Kumar
R