1. Workshop on GST CA Abhijeet Kolapkar 17.6.2017

2. Introduction to GST
Introduction of GST would also make Indian products competitive in the domestics and international markets.
The introduction of Goods and Service tax is very significant step in the field of indirect tax reform in India.
Studies shows that this would have a boosting impact on economic growth
By amalgamating a large number of Central and State taxes into a single tax , it would mitigate cascading or double taxation in a major way and pave the for national market.
Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer.
From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated to to be around 25%-30%.

3. Taxes Subsumed under GST
Central Taxes Subsumed
State Taxes Subsumed
Central Excise Duty
Value Added Tax
Service Tax
Entertainment Tax (Unless levied by Local Bodies)
Central Sales Tax
Luxury Tax
Additional Excise Duties
Purchase Tax
Excise Duty under Medicinal and Toiletries Preparations (Excise Duties) Act, 1955
Taxes on lottery, betting and gambling
Countervailing Duty (CVD)
Octroi and Entry Tax (LBT)
Special Additional Duty (SAD)
Various Surcharges and Cesses
Various Surcharges and Cesses like cess on rubber, tea, coffee, Natural Calamity Contingent Duty, etc

4. Technology & GST
The GST is going to be totally Technologically driven in India to ensure least human interface for tax payers
The revenue department of both Centre and States are pursuing the presently registered taxpayers to complete the necessary formalities on the IT system operated by Goods and Service Tax Network (GSTN) for successful migration.
Goods and Services Tax Network (GSTN) has been set up by the Government as a private company under erstwhile Section 25 of the Companies Act, 1956
About 70 percent of existing registrants have already migrated to the GST system. GSTN has already appointed M/s Infosys as managed service provider (MSP) at a total project cost of around 1380 crores for a period of five years.
GST would provide three front end services, namely registration, payment and return to tax payers, Business providing these services to a tax payers, GST would be developing back end IT modules for 25 states who have opted for the same.
The migration of existing taxpayers has already started from November 2016

5. Existing Practice GST Taxable Event
Excise Duty- Manufacturing,
VAT- Sale of Goods
Service Tax- Realization of Service
GST
Taxable event is “Supply “ of Goods & service
The location of the supplier and the recipient within the country is immaterial for the purpose of CGST
SGST would be chargeable only when the supplier and the recipient are both located within the State. 
Inter state Supply of goods and services will attract IGST.

6. Proposed GST Structure
Intra State Taxable
Supply
Excise & Service Tax will be known as “Central Tax”
Local VAT & Other taxes will be known as “State Tax”
Inter State Taxable Supply
CST will be known as Integrated GST (IGST)
Approx. Sum Total of Central Tax and State Tax
Import of Goods From Outside India
Custom
Duty
In Place of CVD and SAD, IGST will be charged

7. 5 % 12% 18 % 28 % Rate will be applicable as per HSN Tariff
Tax rate under GST
The following tax rates are fixed under GST
NIL
5 %
12%
18 %
28 %
Rate will be applicable as per HSN Tariff
Service likely to be capped to 18 %
Luxury Goods likely to be taxed 28 %
Essential commodities and service likely to be taxed at 5% to 12%  

8. Unlearning existing Indirect Taxes
UNLEARN = Excise, VAT and Service tax
BUT DON’T UNLEARN EVERYTHING = Few concepts from Excise, Customs, VAT
Excise
Customs
VAT
CENVAT Credit
Rules
Service Tax
Transaction Value
Related party
valuation
Ineligible ITC
Special valuation
rules for certain
situations
Job Work
Classification –
HSN
Matching of ITC
with vendors
Proportionate ITC
reversal
Time of supply
Place of removal
Annual Audits
Distribution of
credit
Place of supply

9. Central Excise V/s. GST Concept Central Excise GST Levy
Manufacture of goods
Supply of goods
Taxable event
Removable of goods
Removable of goods or receipt of payment whichever is earlier
Tax
Central Excise Duty
Central Tax and State Tax / UGST or IGST
Valuation
Specific Duty, based on some measure like weight, volume, length etc. , Duty as % of Tariff Value fixed under Sec. 3(2) , MRP
Annual Production Capacity under Sec. 3(a) , Compound levy Scheme
Duty as a % based on assessable value fixed sec. 4
Transaction Value only

10. Service Tax V/s. GST Concept Service Tax GST Levy Provision of Service
Supply of service
Taxable Event
Issue of invoice or date of receipt whichever is earlier
Tax
Central Tax and State Tax or UGST and
IGST.
Valuation
Consideration
Transaction Value

11. Sales Tax V/s. GST Concept Sales Tax GST Levy Sale of good Supply
Taxable Event
Date of Invoice
Supply of goods or receipt of payment whichever is earlier
Tax
Central Tax and State Tax or UGST or
IGST
Valuation
Consideration
Transaction Value

12. IGST Intra -state Inter-State Input Tax Credit (ITC) CGST and
 ITC is the backbone of GST regime.
 Three categories of Taxes will be levied under GST
Central Goods and Service Tax (CGST)
State Goods and Service Tax (SGST) / Union Territory Goods and Service Tax (UGST)
Integrated Goods and Service Tax (IGST)
CGST and
SGST / UGST
Intra -state
IGST
Inter-State

13. CGST IGST Input Tax Credit (ITC) SGST/UGST IGST SGST / UGST Set-off

14. Registration under GST
GST Registration will be PAN based and hence tax payers under existing law having a PAN based registration are eligible for migration under GST.
Person liable to obtain registration shall apply for registration within 30 days from the date of become liable to registration
The threshold limit for GST Registration is aggregate turnover in a financial year is Rs.20,00,000/-
For specified States the threshold limit would be Rs, 10,00,000/-

15. Returns under GST
While all the returns under GST would be required to be filed electronically, the details of Central and State taxes would be consolidated together for the purpose of reporting the details of outward and inward supplies ,input tax credit (ITC), tax payments etc.
A normal registered taxable person is also required to file a return in form-3 on a monthly basis, consolidating the details of outward and inward supplies, ITC available tax payable, tax paid and other particulars.
A normal registered taxable person is required to file two basic forms in month namely GSTR-1 and GSTR-2. These forms represent details of outward supplies and inward supplies of goods and services effected in a particular tax period.
On an average an assesses would be required to file almost 40 returns per state per annum.

16. ITC MATCHMAKING Ascertainment and payment of Net GST
Supply of Goods/Service by Supplier to Recipient
Declaration of Details of Outward Supplies in GSTR-1 of Supplier
Auto-Population of details of ITC in GSTR-2 of Recipient
Verification, Validation, modification or deletion of auto-populated ITC by recipient
Ascertainment of eligible ITC and uploading GSTR-2 by Recipient
Ascertainment and payment of Net GST
Matching of Details of: Outward Supplies by Supplier, Inward Supplies by Recipient , IGST paid on import of goods, Debit notes issued by supplier
Communication of matched ITC to the Recipient

17. Our View
Indian GST model is not an eight lane super national highway, however it is surely better than the existing potholed road.
The level of compliance would multiply with number of states from which a registered taxable person makes taxable supply of goods and / or service and hence it is therefore advised to gear up on IT infrastructure and train the tax team to meet these compliance requirement under GST.
GST ensures that businesses revaluate there business structuring on the basis of business requirement rather than tax requirement
The time is right for the industry to assess the impact of GST on their business and plan the transition in a progressive and phased manner.

18. Near Bank of Maharashtra, team@cajvk.com www.cakolapkar.com
THANK YOU !
Please feel to write your queries at
M/s. Jayant V Kolapkar & Co.
Chartered Accountants
Abhijeet Kolapkar & Associates
Chartered Accountants
“Ramseeta”, 91/2,
Near Bank of Maharashtra,
Parvati, Pune
Contact No: ,  

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