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1. FCA, B.COM, MBA, LLB

2. Introduction to GST :-
G- Game Changer Tax
S- Seamless Credit
T- Transparent System;
OR
GST- GREAT & SIMPLE TAX

3.  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

4. What Happens After GST !
 Changes In Business
Structures
 Changes In Business Models
 Unprepared May Die
 Big Growth Opportunity
 Digital transformational
challenges
 Resources Required – Money,
Men & Markets & Models.

5. Multi-fold Impact, not limited to monetary…
GST
Business Processes
Accounting
IT systems
Marketing & HR
Supply chain
Product Pricing
Cash Flows
Fiscal
CA Sanjiv Nanda

6. Strategy-Process-System Changes Required Under GST
 Business Contracts &
Agreements
 Pricing of Products
 Accounting
Procedures
 Vendor Management
 Dealing with MSME
 Business Model

7. Impact on Product Pricing – Illustration
Particulars
Current Regime GST Regime
Rate Amount Rate Amount
Selling Price (before VAT / GST) 76.96 71.40
Add: VAT / GST 12.50% 9.62 20.00% 14.28
Total cost of procurement of Wholesaler 86.58 85.69
Less: Credit of VAT / GST (9.62) (14.28)
Net cost of procurement of Wholesaler 76.96 71.40
Add: Margin of wholesaler 5.00% 3.85 3.85
Selling price (before VAT) of wholesaler 80.81 75.25
Add: VAT / GST 12.50% 10.10 20.00% 15.05
Total cost of procurement of Retailer 90.91 90.30
Less: Credit of VAT / GST (10.10) (15.05)
Net cost of procurement of Retailer 80.81 75.25
Add: Margin of retailer 10.00% 8.08 8.08
Selling price (before VAT) of retailer 88.89 83.33
Add: VAT / GST 12.50% 11.11 20.00% 16.67
MRP of the Product 100.00 100.00
Impact of GST would need to be adjusted in the product price/ margins of stakeholders
in the distribution chain…
CA Sanjiv Nanda

8. CA Sanjiv Nanda
Impact on Financials
Liabilities Assets
-------- XX
-------- XX
-------- XX
Fixed Assets
-------- XX
-------- XX
-------- XX
Loans & Advances
Credit receivable XX
Particulars Particulars
Consumption of raw
material
XX
Purchase of traded
goods XX
Depreciation XX
Other expenditure XX
Net Sales/ Income from
operations XX
____
____
Trading and Profit & Loss A/c
Dr. Cr.
Balance Sheet as on ….
Top-line may get
reduced in some
cases (e.g. traded
items)
Possible reduction in overall
cost on account of seamless
credit flow of goods &
services
Reduction in
capitalized value
on account of
possible input
credits
Changes on account
of seamless credit
flow
Reduction in cost due to
elimination of non-creditable
taxes

9. Cash Flow Impact
Impact on
Cash flow
Tax on Stock
Transfer
Exemptions to
Refunds
Change in point
of taxation/
credits
Rate changes
Import GST
Most of the planning
under GST regime is
expected to revolve
around optimizing
cash-flows…
CA Sanjiv Nanda

10. Impact on Supply Chain
CA Sanjiv Nanda
Revisiting Sourcing Mix viz. local/ inter-State/ imports –
Centralized/ decentralized sourcing
Vendor Price Renegotiation
Contracting Arrangements (e.g. own/ job-work/ contract
manufacturing)
Tax cost in logistics – May not matter if credits available
Structuring of composite contracts/ transactions

11. Impact on Marketing & HR
CA Sanjiv Nanda
 Revisit product pricing in light of
change in tax rates
 Reassessment of discounts/
incentive schemes
 Possible reduction in marketing
spend on account of liberal credit
regime
Marketing
 Need for restructuring role
description/ job profiles for key
indirect tax/ finance personnel
 Training sessions for all divisions
HR

12. Impact on IT systems (Contd..)
CA Sanjiv Nanda
IT System
Master Records Transaction Records
Master databases
(vendor, customer,
material, tax rates)
Tax computation/
Costing modules
Tax records and
other related
modules
Statutory filings
(Return/
Declaration forms)
System output likely to be impacted by GST transition…
Documentation
templates (Invoice,
Purchase order)
MIS Reports like
price comparative
reports

13. Impact on Business Processes
As indirect taxes are intrinsically linked to business processes, changes brought about by
GST would require review of current business practices for the following:
Whether information required for GST compliances is being
captured in an accurate, timely and complete manner
Need for expanding/ modifying/ adapting the existing
business processes
Whether business practices in the transition period are
resulting in maximum benefit accruing to the Company
Whether existing business policy decisions need to be
reviewed to obtain maximum benefit from proposed changes
CA Sanjiv Nanda

14. CA Sanjiv Nanda
Impact on Compliances
GST registrations and related compliances to be State-
specific
Maintenance of State specific CGST/ SGST/ IGST ledgers
and balances
Maintenance of invoices, credit registers, purchase records etc. –
Documentation to assume significance under self credit mechanism
Check post and way-bill requirements could continue,
though expected to be simplified
Need to shift from manual systems to automation for e-
payments, e-filings etc.

15.  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
CA. Sanjiv Nanda, Smarthead Consultants

16. 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

17. CA. Sanjiv Nanda, Smarthead Consultants