AFTER A LONG TIME (13 years), FROM ATAL(kelkar Task force) TO MODI GST IN INDIA AFTER A LONG TIME (13 years), FROM ATAL(kelkar Task force) TO MODI 11/21/2018 M D GARG & Company

It is designed to collect tax on the value-added at each stage of the production and supply of goods and service with the ITC . Central GST Model State GST Model Dual GST Model 11/21/2018 M D GARG & Company, Indore

GST Dual (subsume the taxes) CGST SGST Central excise duty Service Tax Add. Duties of customs in lieu of excise Add. duties of customs in lieu of sales tax/vat Central Sales Tax VAT/Sales Tax Entertainment tax (Unless it is levied by the Local Bodies) Luxury Tax/taxes on lottery, betting and gambling Entry tax in lieu of Octroi Any other state cesses and surcharges 11/21/2018 M D GARG & Company

An ultimate unified destination based dual Tax reform in India Reduce consumption cost To boost the economy Avoiding cascading effects Removal of multilevel taxation India become one market Free flow of goods across the country Decrease litigation being unified 11/21/2018 M D GARG & Company, Indore

person [indicative list of activities or transaction]. 17/08/2016 Structure The GST comprises 27 (25)chapters 178(162) clauses 4 schedules Schedule Subject Schedule-I Matters related to supply without consideration Schedule-II Matters related to supply of goods or services Schedule-III Liability to be registered Schedule-IV Government body shall not be treated as a taxable person [indicative list of activities or transaction]. 11/21/2018 M D GARG & Company, Indore M D GARG & COMPANY, INDORE

Supply has wider meaning then word supply has in dictionery Supply includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration. It also includes importation of service, whether or not for a consideration. 11/21/2018 M D GARG & Company, Indore

Registration (Liability to tax will arise if the turnover exceeds Rs Registration (Liability to tax will arise if the turnover exceeds Rs. 10.0 Lakh (5.00Lakh) Compulsory (Registerable in terms of Shedule –III) Voluntarily Aggregate turnover in a F Y exceeds Rs. 9.00 Lakh (4.00 Lakh in case North Eastern State including Sikkim) of a dealer has to registered himself by completing KYC norms, in the state from where taxable goods and services are supplied, 11/21/2018 M D GARG & Company, Indore

The way by which registration no. granted to dealer 1 & 2 3 to 12 Digit 14 15 Check The way by which registration no. granted to dealer Business identification no i.e. BIN Blank for future State code PAN 11/21/2018 M D GARG & Company, Indore

Point of Taxation Where the goods are movable, the date on which the goods are removed for supply to the recipient In the case of immovable properties, it will be the date on which the goods are made available to the concerned person Date of issue of invoice by the supplier When payment is given to the supplier Date when the receipt of goods is acknowledged by book entries by the recipient. (Which ever is earlier) *** Depend upon the T& C between two parties 11/21/2018 M D GARG & Company, Indore

(for Precious metals & Articles) Tax Rates Merit (Lower)Rate For Basic items Standard Rate (Most of the items) Nil Rate (for Certain items) Special Rate (for Precious metals & Articles) 11/21/2018 M D GARG & Company, Indore

Illustration (Same State) A Wholesale dealer in Madhya Pradesh, supply goods /services covered under taxable category, NO cross Utilization of credit would be permitted Bill NO 1 From A to B B to C (10 % Pr) B has to deposit tax Goods value 200/- 220/- CGST 10% 20/- 22/- 2/- SGST 10% 240/- 262/- 236.00 11/21/2018 M D GARG & Company, Indore

Balance ITC can be adjust with liability of IGST. 17/08/2016 Illustration (Other State) A Wholesale dealer in Madhya Pradesh, supply goods /services covered under taxable category, Balance ITC can be adjust with liability of IGST. Bill NO 1 Bal Input Credit of B B to C (10 % Pr) B has to deposit tax Interstate transaction,(Article 269A(1) central will collect the integrated goods & service tax ,(CGST+SGST) Goods value 220.00 IGST 20% 40.00 44.00 4.00 Additional Tax 1% 2.20 266.20 6.20 11/21/2018 M D GARG & Company, Indore M D GARG & COMPANY, INDORE

Setoff of ITC SGST IGST CGST 11/21/2018 M D GARG & Company, Indore

Taxable supply Zero Rated Supply ITC Available Tax Free Supply Not Available Zero Rated Supply ITC Available Taxable supply 11/21/2018 M D GARG & Company, Indore

Refund (dealt with chapter X) Other Issues Payment of Taxes through net banking Refund (dealt with chapter X) Application in form before the expiry of 2 Years from the relevant date TCS E-commerce Operator like Amzon/Flipkart/Myntra collect the TCS , at the time of payment rec/debit 11/21/2018 M D GARG & Company, Indore

Inspection(survey ) (NO restriction in regard to time of inspection) Authorized person not below the rank of Joint Commissioner ,where there is reason to believe that the someone has EVADE THE TAX through > Suppressed any transaction or >> claimed excess input tax credit or >>> indulged in contravention of provisions of the Act and its rules, can inspect goods in transit (clause 60 a&b and 61)/access to business premises (Clause 64). 11/21/2018 M D GARG & Company, Indore

Search <<60 (2) and 60 (3)>> 17/08/2016 Search <<60 (2) and 60 (3)>> During the inspection or otherwise , Assessing officer not below the rank of Joint Commissioner has reason to believe that any goods /any documents/books/things liable to confiscation with the explanation the above are useful for or relevant to any proceedings under the Act are secreted in any place with the retained condition for so long as may be necessary. The Provision relating to seizure are not properly explained Power to arrest gives to commissioner , to be carried out by them through his authorized officer is harsh and apparently unfair Clause 73 (1) (i) (ii) and 73(2) 11/21/2018 M D GARG & Company, Indore M D GARG & COMPANY, INDORE

GDP will be increased by 1 %to 2% BIG DIFFERENCE Patent , Trademark, Software, and copyrights etc. now will be treated as SERVICES GDP will be increased by 1 %to 2% 11/21/2018 M D GARG & Company, Indore

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