OfficeCentral ICT for Growth_GST_India_v1r6

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ICT FOR GROWTH
GST INDIA
IMPLEMENTING GST IN YOUR COMPANY
OPERATION

ICT FOR GROWTH
Important Terms:
Input Tax – the tax we pay when we purchase goods or
service from our suppliers.
Output Tax – the tax we charge when we sell our
products or services to our customers.
Central GST– the GST tax we pay to central.
State GST – the GST tax we pay to state
Integrated GST – interstate GST
There are two types of taxes that we pay in India GST.
One is Central GST and other is State GST.

ICT FOR GROWTH
Get your user name and Password:
https://testing2.officecentralcloud.com
Use click here to register
to get your account.
Get your FREE
license of the
OfficeCentral GST
Accounting system
up to August 2017.

ICT FOR GROWTH
Register your company as GST company
Go to support website www.officecentral.co.in for the
procedure to register as GST company.
Threshold for registration of GST:
Turnover ( annual) > 20 lakhs
( except 10 lakhs for North Eastern states)
20 lakhs means 2,000,000 Indian Rupees
However the following must register as GST company:
•Casual Taxable Person, Non Resident Person
•Business engaged in inter-state supply of goods and services.
•Those who are required to deduct TDS u/s 46 or collect TCS u/s 56
•Input Service Distributor
•Electronic commerce operator supplying goods and services directly or acting as intermediary to
promote exchange (list of specific goods and services will be prescribed for this purpose).
•Person supplying data management services irrespective of whether located in India or not.

ICT FOR GROWTH
What s the GST Rate? ( We will wait for official government publication on
GST rate)
GST Rate:
Central = xx%
State = state name – yy%
IGST = CGST+SGST
The tax rate may be different:
Essential items – 0%
Common use items - 5%
Standard Rate – 12%
Standard rate – 18%
High tax item – 28% ( current tax is 30-31%)
Luxury goods, de-merit goods – 28%

ICT FOR GROWTH
Start Date:
1st
July 2017 ( expected)
( wait official announcement from government)

ICT FOR GROWTH
After GST is launched – the following taxes are
replaced by GST:
Central VAT,
•Central Excise Duty [including
additional excise duties, excise duty
under the Medicinal and Toilet
Preparations (Excise Duties) Act, 1955]
•Service tax
•Additional Customs Duty (CVD)
•Special Additional Duty of Customs
(SAD)
•Central Sales Tax ( levied by the Centre
and collected by the States)
•Central surcharges and cesses
( relating to supply of goods and
services)
State VAT Value-added tax
Octroi and Entry tax
Purchase tax
Luxury tax
Taxes on lottery,
betting and gambling
State cesses and
surcharges
Entertainment tax (other than
the tax levied by the local bodies)
Central Sales tax ( levied by
the Centre and collected by states)

ICT FOR GROWTH
The existing taxes:
Stay

ICT FOR GROWTH
GST
GST is a value-added tax levied at all points in the supply
chain with credit allowed for any tax paid on input
acquired for use in making the supply. It would apply to
both goods and services in a comprehensive manner,
with exemptions restricted to a minimum.
Central GST - CGST
State GST – SGST
Destination principle:
Integrated GST – CGST plus the SGST of the destination
state. Treat Union Territory as another State (GST rate is central GST)
Export – Zero GST
Import – use the state GST

ICT FOR GROWTH
Benefit of GST
• Wider tax base, necessary for lowering tax rates and
eliminating classification disputes
• Elimination of multiplicity of taxes and their cascading
effects
• Rationalization of tax structure and simplification of
compliance procedures
• Harmonization of center and state tax administrations,
which would reduce duplication and compliance costs
• Automation of compliance procedures to reduce errors and
increase efficiency

ICT FOR GROWTH
GST Structure

ICT FOR GROWTH
Zero rated GST – covered by GST but ZERO
Rated. ( Can claim INPUT TAX)
Supply Zero
rated products
Your Company
Your Supplier
(GST Company)
Your Supplier
(GST Company)
Sell to you at
Rs10,000 cost
+ Rs2,000
GST
You paid
Rs12,000
This is your cost.
You can claim the
input tax of
Rs2,000
You cost is actually Rs10,000
only.
• Export of Goods and
Services
• Books
• Essential commodities

ICT FOR GROWTH
GST Exempt– Exempt from GST
Supply GST
Exempt
products
Your Company
Your Supplier
(GST Company)
Your Supplier
(GST Company)
Sell to you at
Rs10,000 cost
+ 0 GST
You paid
Rs10,000
This is your cost.
Cannot claim
GST
You cost is actually Rs10,000
only.
• FOOD ITEMS
• Rice, wheat salt, fresh
vegetables, fruit, milk and
milk products,
• Alcohol

ICT FOR GROWTH
INPUT TAX AND OUTPUT TAX

ICT FOR GROWTH
Factory:
Sell at Rp100
+ CGST10
+ SGST10
Assume CGST 10%, SGST10%
Wholesaler
pays Rp120
Wholesaler
sells at Rp120
+ CGST12
+ SGST 12
Retailer pays
Rp144
Wholesaler pays Input Tax
Rp20Wholesaler collects Output Tax
of Rp24
Wholesaler claims Input Tax Rp20
Net tax paid is Rp4
Retailer Sells at
Rp150
+ CGST Rp15
+ SGST Rp15
Total Sell price
is Rp180
Make Rp20
profit
Make Rp30
profit
Price starts at
Rp100
Customer final
price is Rp180
Retailer pays Input Tax Rp24
Wholesaler collects Output Tax
of Rp30
Retailer claims Input Tax Rp24
Net tax paid is Rp6
Consumer pays price of Rp150
Plus Tax Rp30
Factory collects tax Rp20

ICT FOR GROWTH
ZERO GST For EXPORT
Your Company
GST Registered
Export: GST is 0%Purchases
Can claim all
GST INPUT
TAXES

ICT FOR GROWTH
GST for IMPORT of GOODS
Your Company
GST Registered
Sell: GST is xx %
Import
Purchases
Fill up GST Form
provided by
Customs.
Pay GST at import
point

ICT FOR GROWTH
GST for IMPORT of SERVICES
Your Company
GST Registered
Import Services
Do transaction for
Import Services.
( Pay GST to
government under
GSTR3 report)

ICT FOR GROWTH
Practical GST Issues:
1. Review your suppliers
2. Review your sales and contracts
3. Review Cash Flow
4. Review Credit Terms
5. Implication on invoicing (pay GST)
6. Implication on Bad Debt ( with suppliers)
7. Implication of Bad Debt ( with customers).
8. Implication of Input Tax (input tax credit,
9. Implication on Human Resource (know GST)
10. Implication on Accounting System

ICT FOR GROWTH
IMPLEMENTING GST IN
YOUR COMPANY

ICT FOR GROWTH
OUTPUT TAX – Understand the TAX CODES

ICT FOR GROWTH
OUTPUT TAX – Understand the TAX CODES
Most cases will be Standard Rated SR (which is xx%)
Learn more on other codes:
Zero Rated (ZR) - refer to list of Zero Rated Goods
Exempt Supply ( ES) – refer to list of Exempt Goods
Deemed Supply ( DS) – transfer of business asset
without pay
Export ( ZRE) – code for export of goods and
services, zero rated

ICT FOR GROWTH
OUTPUT TAX
You cannot delay this transaction.
• All INVOICES must be according to GST rule.
Full Tax Invoice
•Company Name, GST number, TAX INVOICE,
Customer Name
You are collecting money on behalf of the
Government ( Customs).
You need to pay OUTPUT TAX based on TAX
INVOICE issued, even if customer have not paid.

ICT FOR GROWTH
INPUT TAX – Understand the TAX CODES

ICT FOR GROWTH
INPUT TAX – Understand the TAX CODES
Most cases will be Standard Rated TX (which is xx%)
Learn more on other codes:
Exempt Supplies (EP) - refer list of Exempt supplies
Blocked Input Tax ( BL) – refer to Blocked Input Tax
Purchase from non GST company ( NR)
Import of Goods ( IM) – pay GST tax at Customs point

ICT FOR GROWTH
INPUT TAX
You can claim the INPUT TAX so you should not delay
this claim.
Understand the method to download INPUT TAX from
GSTN. (GSTR1A).
Understand how to compare your purchase listing
and the list provided by GSTN.
Understand how to make you INPUT TAX discrepancy
list. How to upload to GSTN.
All INVOICES must be according to GST rule.
Full Tax Invoice
•Can claim 100% the INPUT TAX
You are claiming money from government.
Keep a good filing system for the records.

ICT FOR GROWTH
DO TRANSACTION IN THE ACCOUNTING SYSTEM.
GST Reports

ICT FOR GROWTH
Revenue – ISSUE INVOICE

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Revenue – ISSUE INVOICE – interstate

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Expenses – RECEIVE INVOICE

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Expenses – RECEIVE CREDIT NOTE

ICT FOR GROWTH
GENERATE THE GSTR1 REPORT
OUTWARD SUPPLIES LISTING

ICT FOR GROWTH
OUTWARD SUPPLIES LISTING – GSTR1

ICT FOR GROWTH
INWARD SUPPLIES (PURCHASE LISTING)
You can generate Purchase Listing from your accounting system.
You can get Purchase Listing from GSTN. It is called GSTR2A form.
After comparison you can upload the Purchase Listing discrepancy list to
the GSTN.

ICT FOR GROWTH
PURCHASE LISTING

ICT FOR GROWTH
GET THE GSTR2A REPORT
PURCHASE LISTING FROM GSTN

ICT FOR GROWTH
View the GSTR3 Values
By now,
You can download GSTR3 Report from GSTN.
You can compare with your own GSTR3 report generated internally
from your accounting system.
You can check if there is any discrepancy between the two files.

ICT FOR GROWTH
View the GSTR3 Values

ICT FOR GROWTH

ICT FOR GROWTH
MDEC Score+ Rating 4.0
WINNER:
BEST SOFTWARE
FOR SME
(OFFICECENTRAL)
FINALIST:
BEST SOFTWARE -
TENDERASIA
Awarded
MGS Grant
Authentic Venture Sdn Bhd
43

ICT FOR GROWTH
Technopreneur Ir. Aziz Ismail
CEO, Founder, Malaysian, age 53. Graduate in Electronic & Electrical Engineering (United Kingdom) and
Master in Business Administration (Universiti Malaya).
Professional/Social:
 President (Past) TeAM, Technopreneur Association of Malaysia.
 Vice President II NEF, Bumiputera ICT Association, Chairman Go Global
 Chairman, MSC Local Advisory Panel, Domestic Direct Investment
 Cluster Leader (Past) , Majlis Perundingan Melayu, MPM – NGO. Business Services Cluster Leader.
 Ahli Majlis, Cluster Leader, MTEM, Majlis Tindakan Ekonomi Melayu.
 Council Member, NIC, National Innovation Council, Chaired by Prime Minister. Member of NITC.
 Chairman ICT (Past) , Exco PPIPBM (Past) , Malaysian Bumiputera Manufacturers Association
 (Past) President Instrument and Control Society Malaysia
 (Past) President Asia Pacific Federation of Instrument Societies
 Industry Expert Panel University Technology Petronas Malaysia, UTEM
 Professor Adjunct UUM, Ahli Majlis Faculty UIA
 External Examiner University Technology Petronas Malaysia
 Secretary, Council (Past) – ASAS Alumni Association Malaysia, Director – ASAS Koop
 Approval Committee (Past) – MDEC MGS Grant Approval, Pre Seed, Cradle Fund Approval
Committee (Past).
 Judge – Microsoft Imagine Cup, APICTA Award, Malaysia and International. Malaysian Universities
ICT Competition
 Professional Engineer, MIEM, Board of Engineers
 Invited Speakers, MDEC, MPC, PPIPBM, MARA, TeAM, WENA, NEF, Associations, Bernama, TV3.
Previous Working Experience:
 CEO Digital Aura Sdn Bhd – Software Solutions
 CEO Foxboro USA (Malaysia operation) – Industrial solutions
 GM Progressive Impact ( Currently public listed) – Technology
 Manager – Honeywell USA ( Malaysian operation) – industrial solutions
 Lead Control Engineer – TNB ( Power Utilities)
Professor Adjunct
Ir. Aziz Ismail

OfficeCentral ICT for Growth_GST_India_v1r6

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