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Gst an introduction final
- 1. Hindalco Industries Limited January 2018 GST - Shaping Indian Economy - Opportunity & Challenges Bharuch 8th September 2018
- 2. Good Morning Meditation is linked with feeling less stressed as well as actually lowering the stress In studies, people who are trained in mindful meditation achieved better gaols Meditation can result in brain changes that protect against mental health conditions Meditation helps to process emotions, even when we are not actively meditating Meditation helps the elderly feel less lonely Meditation may be an excellent supplement to various addictions treatment We experience less anxiety as meditation loosen connections to particular neural pathways Meditation is linked to more creativity / new ideas Rapid memory recall improves with daily meditation It is believed that with daily meditation you can reverse the ageing process Meditation – Good for All of You 2
- 3. GST would help the economy pick up pace, bring down the inflation rate, and boost the fortunes of corporate India, a nationwide poll of top chief executive officers (CEOs) conducted by “Business Standard” revealed. What did Indian CEO’s Say prior to GST Launch ? Source – Business Standard , CEOs Survey(N=34) 0 20 40 60 80 100 Will GST have a Positive impact on Economy? Will it bring down Inflation? Will your Industry Benefit from GST? Is your Company adversaly impacted by GST? Do you have adequate clarity on ITC? Are you concerned about the antiprofiteering rule could be misused for harassment? Do you have plans to relocate any of your plants? Corporate Voices Yes No Can't Say 3
- 4. 30th June 2017 Major Milestones Announcement of GST for the first time was made by the then Union Finance Minister, during budget of 2006-07 that it would introduced from 1 April 2010 2006 First Discussion Paper was released by the Empowered Committee 2009 Constitution (115th Amendment) Bill introduced and subsequently lapsed 2011 The Constitution (122nd Amendment) Bill was introduced in the Lok Sabha 2014 Aug 2016 The Constitution (One Hundred and First Amendment) Act was enacted March 2017 GST Council Recommends the CGST, SGST, IGST, UTGST and Compensation Cess Act April 2017 CGST, IGST, UTGST and Compensation Cess Acts passed All States except J&K passed their SGST ACT May 2017 GST Launched 1st July 2017 1st GST Council Meeting Sep 2016 GST Council recommends all the rules SGST Act passed by J&K; CGST and IGST Ordinances promulgated to extend GST to J&K 8th July 2017 True Economic Integration of India Journey Continues… • Notifying and amending rules • Dealing with IT related issues • Revision of Rates • Clarification and communication with taxpayers 2004 Kelkar Committee formed by then Prime Minister Mr. A.B.Vajyee rrecommended GST to replace the existing tax regime 4
- 5. Efforts and Work Done GST >12 years in making 30+ subgroups and committees 18000 + Manhours Discussion by GST Council 175 + officers meetings 14 EC meetings in 10 years 13 GSTC meetings in 06 months Prior to Launch Post Launch Pace at which decisions were taken during the GST council meetings, amendments notified, and FAQs were answered through different platforms indicated Govt. intentions and sensitiveness towards teething issues. • Industry Support was paramount too which is beyond measuring. 5
- 6. 6 04 WAY-FORWARD 03 CONS 02 PROS 01 ECONOMY EXPECTATION vs. REALITY The Gains Impact on the Economy Challenges Government’s & The Industry’s perspective The Path ahead 2017 – The Year of GST – An Historic Year
- 7. 7 1 2 3 4 Implementation of GST 01st July 2017 - Rate Rationalization - Changes in Rules to simplify Compliance September 25th – 22nd GST Council Meeting - Rate Rationalization - Exemptions Rationalization January 2018 - 25th GST Council Meeting - Retrospective Amendments - Clarifications on various ambiguous areas 28th GST Council Meeting GST – The Time Line – Post Launch 7
- 9. Economic Impact GDP Growth of 8.2% Ease of Doing Business Fiscal Budget maintained – Deficit met CPI grown to 4.6% Revenue Collection has started to increase “GST – Good & Simple Tax” – Hon'ble Prime Minister Shri Narendra Modi Impact on Economy 9
- 10. GST - Rationalized Rates - Four rate structure - Major Rationalization in Nov - Minimum Exemptions More Informed Consumer - The Federal Structure - Consumption based tax - Abolition of CST Poorer States to gain - Progressive Tax Collection - Increased Compliance - Simplified Tax Regime Increased Transparency - Removing the Cascading Effect - Overall Reduction in Prices Decrease in Inflation Make in India Subsuming all Major Levies Ease of Doing Business One Nation – One Market – One Tax Significant Gains of GST - Export to be zero rated - Protection of Domestic Industry 10
- 11. GST - Nature of rulings issued by advance ruling authorities have crashed expectations of its being a neutral platform for clarifying interpretative issues associated with the newly introduced law Pro revenue and contradictory advance ruling - Technical issues for applying for returns - Refund Mechanism for exporters have irked the sectors - Delay in processing refunds - Blockage of working capital GST Refunds – A deal Breaker for Export - Multiple Tax Rate - Varied interpretation on levy of Dual GST or IGST - Negative list of ITC Ambiguity in Law - Introduction of E way bill Mechanism to have a check on movement of goods has not been seen as ease of doing business E Way Bill Single Point Implementation - Introduction of GSTR – 3B has made the concept very tedious - Issues in filling returns, mismatch fall through - Refund Filling GSTN Teething Issues – Poor IT infrastructure Pains of GST - Few things not understood well like Reverse change mechanism, Time of Supply etc. – deferred till 30th Sep - Payment by vendors to tax department - Compliance by vendors - Payment within 180 days - Claiming of old credit - Technical issues in filling TRAN-1 - Credit of old Taxes paid post GST - Re-credit of old refund issues Credit Flow & Transaction of Credit 11
- 12. Rate Rationalization Supply Chain Re- Engineering Transparency & Simplified Tax Structure Increased Credits Rates of Consumer Necessities reduced HSN Classification disputes resolved through rate rationalization Compounded rate comparison with erstwhile regime - Positive • Reduction in logistics cost • Savings in carrying cost • Abolition of Check-post • Elimination of CST • Make vs. Buy Decision • One Nation One Market One Tax • Fungibility of Taxes • Interest & Penalties • Digital Economy • Increase in transparency • Reduced restriction on Eligibility • All uncreditable taxes subsumed in to GST and available as Credit (CST, SAD, VAT etc.) • Inter adjustment of Taxes The Positive Changes - Reality 12
- 13. 1 2 3 Invoice wise details of Outward Supplies GST Returns : GSTR- 1 Summary of Outward Supplies Summary of Inward Supplies Determination of Input Tax Credit Determination of Net Tax Liability GSTR – 3B Mirror Image of GSTR – 1 filed by Vendors GSTR – 2A GSTR - 6 Return for Input Service Distributor 4 5 Annual Return GSTR – 9 GST Compliance 13
- 14. Simpler Legislation Expansion of Tax Base & further rate rationalization Transparent Tax Administration Simplification of Compliance Alignment with Global Principles GST – The Path Ahead 14
- 15. GST Booster will Help “Make in India” Run