GST is proposed to be implemented in India from April 1, 2017 and it is important for companies to get an impact assessment done and understand the implications on their margins, cash flows, business processes and tax obligations. International Business Advisors (www.ibadvisors.co) is working with its clients to help transition to this new legislation.

1. PROPOSAL FOR
GST IMPACT ASSESSMENT
&
IMPLEMENTATION

2. PROGRESS SO FAR
FEATURES OF GST
BROAD ARCHITECTURE
GST IMPACT AREAS
GST
IN INDIA
PROPOSAL AGENDA

3. PROGRES SO FAR
#1
CONSTITUTION
AMENDMENT
BILL PASSED
RATIFICATION
BY STATES
PRESIDENT’S
ASSENT
GST
COUNCIL
STATE
SPECIFIC GST
ENACTMENT BY
PARLIAMENT
LAUNCH OF
GSTN
GST
ROLL-OUT
#2
#3
#4
#5
#6
#7
#8
GST implementation from April 2017 a possibility…

4. Destination Based Tax
Tax leviable on ‘Supply’
Decentralized registration
Monthly returns for each
registration
Local Supply – CGST plus SGST
& Interstate Supply – IGST
Exports zero rated; Imports
subject to IGST
Three rate structure:
 Standard rate - 17~18%
 Concessional rate - 12~14%
 Demerit rate - 40%
FEATURES OF GST
CGST
IGST IGST
SGST
SGST
CGST
IGST
CGST credit for SGST credit for
IGST credit for
Note: CGST credit not allowed against SGST and vice versa
DECENTRALIZED CREDIT MECHANISM

5. BROAD ARCHITECTURE
SEPARATE
PLACE OF
PROVISION
FOR GOODS &
SERVICES
IGST INPUT
TAX CREDIT
ALLOWED
STATE WISE
REGISTRATION
AND
COMPLIANCES
TRANSITIONAL
PROVISIONS
ON CENVAT
CREDIT,
PENDING
LITIGATIONS,
ETC.
CONCEPT OF
POINT OF
TAXATION
INTRODUCED
FOR GOODS
AS WELL
INTER-STATE
BRANCH
TRANSFERS
INCLUDED IN
SUPPLY
INTANGIBLES,
ACTIONABLE
CLAIMS, ETC.
TO BE TREATED
AS SERVICE
FREE OF COST
SUPPLIES OF
GOODS/
SERVICE TO BE
TAXABLE
GST REVENUE NEUTRAL RATE –
YET TO BE PRESCRIBED

6. GST IMPACT AREAS
ACCOUNTING
IT SYSTEM
PRODUCT
PRICING
CASH
FLOW
CREDITS LEGAL
CONTRACTS
COMPLIANCES
SUPPLY
CHAIN
GST

7. UNDERSTANDING BUSINESS &
IMPACT ASSESSMENT
ROAD MAP FOR IMPLEMENTATION
IMPLEMENTATION ASSISTANCE
ON-GOING ASSISTANCE
PROPOSAL
AGENDA
PHASE-1
PHASE-2
PHASE-3
PHASE-4

8. UNDERSTANDING THE BUSINESS
PHASE-I

9. UNDERSTANDING
THE BUSINESS
 Understanding
transactions related to all
goods;
 Understanding the
existing supply chain
mechanism;
 Collating information on
current tax compliances
including record
keeping,
documentation, filing of
statutory returns and
processes followed;
 Understating of various
locations/ warehouses
and product/ services
sold/rendered from
there;
 Understand the
processes followed to
avail and utilise input tax
credits;
 Understanding the MIS
and other business
reports generated by the
IT System;
 Understanding the
existing tax points;
 Understanding
outsourcing processes,
export incentives,
regional duty exemptions
and intra-group
transactions;
 Understanding how
existing contracts with
clients and vendors are
drafted and making note
of the tax clauses; and
 Finally, mapping the
entire business model
under the existing tax
regime
STAGE I:
GAINING KNOWLEDGE OF BUSINESS
I
II
III
IV
The understanding phase will
be in four stages –
1. Gaining knowledge of
business
2.
3.
4.

10. UNDERSTANDING
THE BUSINESS
 Understanding the taxes
charged by the
Company under existing
regime;
 Understanding input
credit system of the
business and recording
whether the same is
done manually or
electronically;
 Identifying the areas
where the Company is
paying tax under reverse
charge mechanism;
 Mapping net tax liability;
 Review of check points
that determine tax
obligations;
 Understanding the
process of recording,
accumulation and
utilization of credits
permissible to the
Company;
 Mapping of taxes which
are currently becoming
cost to the Company;
and
 Understanding the
computation procedure
followed to determine
the existing Indirect tax
liabilities
STAGE II:
CURRENT TAX STRUCTURE
I
II
III
IV
The understanding phase will
be in four stages –
1.
2. Current Tax Structure
3.
4.

11. UNDERSTANDING
THE BUSINESS
 Basis understanding of the business (Stage I) and how taxes
are paid and credits accumulated (Stage II), the current
business model will be extrapolated with scenarios proposed
under the model GST law
 This activity will assist IBA identify certain areas (mentioned
below) that will get impacted by GST:
STAGE III:
IMPACT OF GST ON EXISTING BUSINESS MODEL
 Margin Analysis
 Cash Flow Planning
IT SYSTEMS:
 Tax Codes/ Masters
 Credit Matching
 Sale Invoices
 Purchase Orders
CONTRACT RE-NEGOTIATION:
 Vendor Contracts  Sales Contracts
COMPLIANCES:
 Registrations
 Returns
 Payment of tax
 Credit register
 Sales reports
 Purchase reports
BUSINESS MODEL:
I
II
III
IV
The understanding phase will
be in four stages –
1.
2.
3. Impact of GST on existing
business model
4.
 Warehouse Planning
 Make vs Buy

12. UNDERSTANDING
THE BUSINESS
 Study of changes/ notifications introduced in
proposed law in light of business process;
 Analysis of business-wide impact of such changes;
 Performing ‘what if’ for the Company in respect of
the overall changes in proposed law; and
 Discussions with the management to apprise of the
modifications and consequent impact on the
Company
STAGE IV:
UPDATING IMPACT ANALYIS BASIS CHANGES
INTRODUCED
I
II
III
IV
The understanding phase will
be in four stages –
1.
2.
3.
4. Up-dation basis changes
introduced

13. PHASE-II
PREPARING IMPLEMENTATION &
TRANSITION ROADMAP

14. PREPARING IMPLEMENTATION &
TRANSITION ROADMAP
Upon identifying key actionable items requiring transition under the GST,
IBA shall suggest the best possible business model that is both ‘tax
efficient’ and ‘pragmatic’. We shall work closely with various stake-
holders to prepare the ‘implementation and transition roadmap’
I
 Basis impact analysis, IBA would assist
Company understand the key
actionable items requiring transtion
under GST;
 Meetings with business heads, supply
chain team, IT team to help identify
the best possible scenarios for
Company’s operations/ business
divisions;
 Basis discussions, IBA will formulate best
possible solutions resulting in the most
tax efficient model;
 Proposed business models will be
accompanied with the attached pros
and cons;
 Proposed business model will be
presented to the business heads,
supply chain team, IT team for its
feasibility;
 Post approval, IBA would prepare a
road-map for transition and
implementation of the proposed
business model; and
 Special focus would be provided to
exposure areas to mitigate the risks
I
II
III
IV

15. PHASE-III
IMPLEMENTATION ASSISTANCE

16. IMPLEMENTATION
The implementation phase
will involve actual ground
level execution of the
actionable items identified
(under Phase II) for
transition under the GST
IV
Operational Assistance
Agreements/Contracts Re-Working
Credit Chain Optimization
IT System Implementation
Final Touch
I
II
III
IV

17. OPERATIONAL
ASSISTANCE
The operational assistance shall
be the back-bone for GST
implementation where IBA will
handhold the Company in
entirety, until the transition to
the new regime
• Updating master data, recording mechanism,
reporting requirements, etc
• Mapping accounting/ charge/ tax codes in the
ERP system
• Suggest formats for recording supply, procurement
and related data as per requirements of the new
law;
• Assist Company obtain registrations in different
states (if applicable)
• Preparation of process manual for routine
accounting operations
• Setting up procedure to correctly capture Point Of
Taxation and Place of Supply for each supply

18. OPERATIONAL
ASSISTANCE  Setting up process to capture correct tax charged
on different types of supply
• Ensuring smooth payment mechanism
• Assistance in transferring of existing credits under
current regime to the proposed regime
• Assistance with respect to transfer of stock-in-hand/
capital goods credit from current regime in to the
proposed regime
• Assistance in movement of goods on the
implementation date of the new regime
• Assistance in practical challenges to be faced on
ground level for implementation of new regime
The operational assistance shall
be the back-bone for GST
implementation where IBA will
handhold the Company in
entirety, until the transition to
the new regime

19. AGREEMENT
RE-WORKING
It will be imperative for the
Company to review existing
contracts, both on the output
side (customers) as well as the
input side (vendors)
This review is critical to ensure
no unnecessary tax obligations
arise on the Company upon its
transition to GST and at the
same time ensuring no added
tax benefits are missed
• IBA would review the existing contracts with vendors
and customers to enable the tax clauses are correctly
amended
• IBA would assist in providing relevant tax clause for
future agreements
• IBA would assist in identifying the vendors wherein the
Company should renegotiate basis added benefit to
the vendor
• IBA would assist in procuring necessary details from
vendors and customers which will be essential for GSTN
network
• IBA will assist in mitigating risk of any future liability by
way of safe-guarding it through contract
• IBA will suggest wherever necessary to inseret relevant
penalty clauses inter se agreements with vendors
should they default in uploading informaiton and
credits on GSTN

20. CREDIT CHAIN
OPTIMIZATION
Basis of GST is free flow of credit
inter se the taxes.
Thus it is imperative that the
credit mechanism of the
Company does not create any
blockage
• Assisting in setting up processes which enables the
Company avail all permissible credits
• Assisting in setting up of processes for credit movement
in order to correctly adjust against permissible liability
• Suggest measures for proper recording and integration
of credits from IGST, CGST and SGST
• Suggest measures for implementation of credit
matching system as required under proposed regime
• Suggest processes for efficient movement of credits
and tax permissible under the proposed statute

21. IT SYSYTEM
IMPLEMENTATION
The system configurations will
have to undergo modifications
as a result of compliance and
process requirements. Planning
and migration of systems is a
key focus area for GST
implementation. IT system
assistance will be restricted to
taxes only
• Setting up of process through which system provides
correct information with respect to taxability
• Setting up of process to capture details of vendors and
clients correctly in the system for smooth credit
movement
• Business charge codes mapping based on Place of
Supply and Time of Supply provisions provided under
Model GST Law in the IT System
• Integrating appropriate reporting procedure for filing
multiple statutory returns and its annexures under GST
• Assistance in enabling system for accumulation and
utilization of credit under IGST, CGST and SGST
• Discussions with the IT implementation team to ensure
that the requirements of GST are correctly captured in
the IT system

22. FINAL
TOUCH  Test runs on the new system
• Identifying lacunas and rectifying them
• Preparing FAQs for the users and helping them get
an ease on the system
• Preparing SOPs for the Company
• Special training for the senior management to help
them understand routine implications
After the system configurations
and processes in place, it is
imperative that continuous test
runs are done to ensure error
free system
Further equal focus is required
for providing trainings to the
team who would be executing
the work on daily basis

23. PHASE-4
ON-GOING ASSISTANCE

24. ON-GOING
ASSISTANCE
Assistance in implementation
of GST regime is a continuous
process and we believe in
being available at every hour
of need
Review and replying
of day to day routine
queries for one month
Validation of periodic
returns and other
compliances for first
month
Training and
providing assistance
for completion of
implementation
process
Providing GST
updates and advising
the business on
impact of same
V
I
II
III
IV

25. TEAM AND CREDENTIALS

26. OUR CORE TEAM
NIMISH GOEL
PARTNER AND HEAD OF INDIRECT TAX
Nimish heads the Indirect Tax practice at IBA. He is a Chartered
Accountant and Company Secretary with a rich consulting
experience of over 13 years with firms like PricewaterhouseCoopers
and Ernst & Young in indirect taxes including Customs, Excise,
Service Tax and VAT
He specializes in advising clients on entry strategy, credit
optimization, classification, valuation and diagnostic reviews to
identify opportunities and threats on indirect tax matters. He’s an
active member of the Indirect Tax Committee at the ICAI. He has
also made significant contributions to the profession by providing
numerous thought provoking suggestions and putting forward his
thoughts by authoring various articles and giving interview in print
and electronic media

27. OUR CORE TEAM
Ujjwal Kumar Pawra
SENIOR MANAGER
LAWYER
ALUMNUS OF KPMG
8 YEARS EXPERIENCE
Manpreet singh
ASSISTANT MANAGER
CHARTERED ACCOUNTANT
5 YEARS OF EXPERIENCE
Tushar Joshi
DEPUTY MANAGER
LAWYER
5 YEARS EXPERIENCE
Sumit vij
ASSISTANT MANAGER
4 YEARS EXPERIENCE

28. OUR CORE TEAM
HIMANSHU TIWARI
SENIOR ANALYST
MASTERS IN FINANCE
ALUMUS OF PWC
4 YEARS EXPERIENCE
MOHIT GUPTA
SENIOR ANALYST
B. COM (HONS)
2 YEARS EXPERIENCE
shivam khandelwal
SENIOR ANALYST
B. COM (HONS)
3 YEARS EXPERIENCE
UDAY Mehta
ANALYST
B. COM
2 YEARS OF EXPERIENCE

29. IBA IS A FULL SERVICE COMPANY
INDIA SET UP SERVICES
FINANCE OUTSOURCING
TAXATION
- PRE ENTRY SERVICES
- IMPLEMENTATION SERVICES
- POST ENTRY SERVICES
- BOOKKEEPING
- MANAGEMENT REPORTING
- PAYROLL SERVICES
- TREASURY/BANK RELATED
SERVICES
- TAX COMPLIANCE & ADVISORY
- INTERNATIONAL TAX
- TRANSFER PRICING
- REPRESENTATION
- DUE DILIGENCE & HEALTHCHECK
REGULATORY & LEGAL
ASSURANCE
M & A
- SECRETARIAL COMPLIANCES
- FEMA & RBI COMPLIANCES
- FDI SUPPORT
- CONTRACT DESIGNING &
VENTING
- STATUTORY AUDIT
- TAX AUDIT
- ATTENTION SERVICES
- LEGAL ADVISORY – M&A
- DEAL ADVISORY
- TRANSACTION ADVISORY
- DEBT CONVERTIBLES
- VALUATION & BUSINESS
MODELLING

30. MANAGED
& RUN BY EX-BIG 4
PROFESSIONALS

31. IBA ADVANTAGES
DISCREPANCY DISCUSSION
EXPOSURE CALCULATION
RISK MITIGATION
UPDATED ON INDUSTRY ISSUES
ACCURATE REPORTING
SYNC WITH STATUTES
THIRD PARTY AUDIT
TIMELY PROCESSES

32. IBA INDIRECT TAX EXPERIENCE
LITIGATION
HANDLING INDUSTRY
ISSUES
HEALTH CHECKS
PAN INDIA VAT
COMPLIANCES
PAN INDIA VAT AUDITS/
ANNUAL RETURNS
REFUNDS
- SAD
- CVD
- EDD
- CENVAT CREDIT
SVB MATTERS
ADVISORY TAX STRUCTURING
EXPORT BENEFIT
INCENTIVES
DEPARTMENTAL AUDITS

33. OUR CLIENTELE

34. LET’S WORK
TOGETHER
NIMISH.GOEL@IBADVISORS.CO +91-9560-709-709
WWW.IBADVISORS.CO
NEW DELHI
S-217 PANCHSHEEL PARK,
NEW DELHI 110017
MUMBAI
SUITE 1108, LEVEL 11-1102,
PENINSULA BUSINESS PARK,
TOWER-B, S.B ROAD,
LOWER PAREL, MUMBAI-400053
BANGALORE
Golden Square Serviced Office
No. 1101, 24th Main, JP
Nagar,1st Phase
(Above ICICI Bank)
Bangalore – 560 078