Part 1-GST-introduction

-SmartHead Consulting Proprietary and Confidential-

PM Modi’s Method to Madness
 First Went After Money Stashed Abroad- Most of it is
back and Deposits have gone down abroad.
 Demonetisation of Currency- Done on 8th Nov.,2016
to suck out cash from the system and put it in bank or
destroy it.
 Demonetisation of Stock- GST – All the stock in black
economy is being demonetised under GST and further
production & transportation being made difficult.
 Benami Property Act, 2016 – Already passed and will now
go after benami property purchased with the black
money.
 Restrict Generation & Usage of Black Money- Has not yet
touched Jewellery & Weddings but made black money
generation difficult, dangerous & useless.
CA Sanjiv Nanda, Smarthead Consultants

GST INTRODUCTION
Game Changer Tax
S- Seamless Credit
T- Transparent System;
OR
GST- GREAT & SIMPLE TAX
CA. Sanjiv Nanda, Smarthead Consultants

 Introduction, GST Council, CGST & SGST or IGST
 Why GST & Taxes Subsumed Under GST
 HSN Code & Rates of Taxes
 Key Concepts Under GST & Definition Of Taxable Person
 Meaning of Supply U/s 3 instead of Sale
 Definition Of Goods & Services
 Place of Supply U/s 12- to Check Inter/Intra State
 Time of Supply - to decide when GST Taxes becomes payable
 Registration and Composition Scheme
 Returns Under GST and their Dates
 Input Tax Credit & Job Work Treatment
 Impacts On Businesses
 Assessment, Audit and Prosecution & Arrest
 E-Way Bill and Transporting Under GST
Sequence to Study GST For Understanding

The growing use of GST around the world
Most widespread general consumption tax in the world
Rapid growth, particularly over last two decades
First introduced in France in 1954
Limited to 10 countries in late 1970s, has now been implemented in over 157 countries
Principal form of taxing consumption in 33 of 34 Organisation for Economic Co-operation and
Development (OECD) member countries
Accounts for 30% of all revenue collected by governments across the OECD
International Monetary Fund (IMF) is strongly encouraging the introduction of GST in
developing countries
Only the USA and the Gulf countries amongst the ‘global’ economies do not have VAT/GST

 At present, the Centre and State have specific powers to levy and
collect taxes- Centre & State List.
 The 101st Constitutional Amendment Bill
The Bill was passed by both the houses of parliament. It
provides for following amendments:-
- Gives Power to levy and collect GST to both Centre and States
by shifting the Indirect Taxes to Concurrent List.
- Toauthorize Centre to levy and collect IGST.
 GST COUNCIL- Consisting of Union Finance Minister and
State Finance Minster. The council will provide suggestion
on various aspect of GST law and its implementation.
 To provide for 100% compensation to states for any
loss for 5 the next years.
Constitution Amendment Bill

 GST in India as a system proposes to merge most of the Indirect
Taxes into a dual system of taxation.
 Indirect Taxes some were in the Central List and some in the
State List as per the Constitution of India hence a
Constitutional Amendment was required to bring them in the
Concurrent List so that the GST System of Taxes could be
started. This amendment was brought in as 101st Amendment
with 2/3rd majority in Parliament and was needed to be ratified
by at least 16 State assemblies which has been now done.
 In 1947 the Territorial Unification of India was done and now in
2017 the Market Unification of India has been done. One India-
One Tax Rate - One Market.
GST In INDIA

GST
By
When
?

GST In INDIA
 GST will be a game changer for Businesses in
many ways – Example of Cement Purchase.
 Now after GST only One Indirect Tax in India which will
be divided between the State Governments and the
Central Government.
 If it is an Inter State movement of goods it will be called
as Integrated GST(IGST) -say which is at 18%. And if this
movement of good is Intra State( Within the State) then
the GST rate will still be 18%- 9% Central GST (CGST) and
9% State GST(SGST). So the rate is the same whether You
buy from within the state or outside the state. This will
impact lot of Business Models. Example of Construction
Material purchase for projects.

GST - Indirect Tax Structure
Sec 9 of CGST Act 2017 / Sec 5(1) of IGST Act 2017 / Sec 7 Sec 7 of
SGST Act / Sec 7 of UTGST Act,2017
GST STRUCTURE FOR PLACE OF SUPPLY
Intra-State
CGST CGST
Inter - State Imports
IGST
BCD +
IGST
Goods Still Out Of GST System of Taxation :-
GST shall be levied on All Goods & Services Except
(1) On the supply of Petroleum & Diesel Products (40% of
Revenue), on the value determined under Section 15; and
(2) On Stamp Duty on Registration of Documents (10%
Revenue).

CLASSIFICATION OF SUPPLY AS INTRA STATE/
INTER STATE
Sl.
No.
Location of
supplier
Place of supply Intra state/Inter state Tax Applicable
1 State ‘A’ State ‘A’ Intra State supply CGST and SGST
2 State ’A’ State ‘B’ Inter-State supply IGST
There are different provisions to determine location of supplier and
place of supply for supply of Goods and for supply of services.

GST LAWS
Act’s
 CGST Act, 2017 [174 Sections, III Schedules]
 IGST Act, 2017 [25 Section]
 UTGST Act, 2017 [26 Sections]
 GST (Compensation to Sates) Act, 2017 [14
Sections]
 State GST Bills 2017 [Count 9} – Telangana,
Bihar, Rajasthan, Jharkhand, Chhattisgarh,
Uttarakhand, Haryana, Madhya Pradhesh, Goa

GST LAWS
1. Accounts & Records Rule [3
Rules]
2. Advance Ruling [5 Rules]
3. Appeals & Revision [8 Rules]
4. Assessment & Audit [5 Rules]
5. Electronic Way Bill [5 Rules]
6. Composition Rules [5 Rules]
7. Determination of Value of Supply
Rules [8Rules]
8. Transitional Provisions Rules
[4Rules]
9. Input Tax Credit Rules [10 Rules]
10.Tax Invoice, Credit 7 Debit Notes
Rules [8Rules]
11.Payment of Tax Rules [4 Rules]
12.Refund Rules [8 Rules]
13.Registration Rules [25 Rules]
14.Returns Rules [25 Rules]
Rules
GST Rules

14
GST
Rules
GST RULE
Registration
Payment
Refunds
Returns
Invoices
Rules
Composition
Valuation
Input Tax Credit
Transition
Rules
Transition
Rules
Electronic
Way (E-Way)
Bill Rules

 This Presentation is only for the Purposes of General
Information and Cannot be taken as an Expert Opinion on
any matters discussed Here-in.
 No Person or Business Entity shall be held responsible for
any losses occurring due to any interpretation done from
this presentation.
 If any certified Opinion or Interpretation is required then
personal interaction should be done after settling the fees
with the expert presenting this information.
 The Presentation is being done based only on the
information presently available in the public domain and
some information is still awaited from GST authorities.
DISCLAIMER ON GST INFO

Contact Us
CA. Sanjiv Nanda
Smarthead Consultants Pvt. Ltd.
NDR & Co., Chartered Accountants.
Mob- 98110-68919.
Office :-
Flat No. 1006A & 1002A,
Tolstoy House, Tolstoy Marg,
NewDelhi-110001
CA Firms Id :- ndrcompany@gmail.com
Personal Id:- sanjivnanda@gmail.com
sanjiv.nanda@smartheadconsulting.com
www.smartheadconsulting.com
THANKS FOR A PATIENT LISTENING

Part 1-GST-introduction

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Part 1-GST-introduction