1. NAVITGATING THE FUTURE OPPORTUNITIES FOR CS AFTER GST
Presented by:
Siddharth Srivastava
Founder- B. Com, CS, LLB- SKS Associates- Indirect Tax Litigators & Consultants
Contact: ;
Mail:

2. Agenda HISTORY OF VAT PRESENT INDIRECT TAX STRUCTURE ROADMAP OF GST
PROMINENT FEATURES OF GST
TREATMENT OF INTERNATIONAL TRADE
PLACE OF TAXATION
SOFTWARE DEVELOPMENT INTERNATIONAL LAWS
TREATMENT OF SOFTWARE AS PER CANADIAN LAWS
BENEFITS OF THE CANADIAN TAXATION MODEL

3. History of VAT in India…
2016
GST
2005
State VAT
2004
CENVAT
1986
MODVAT
Executive Summary

4. GST – AROUND THE WORLD
Almost 160 countries have already implemented the GST
Most of the countries have a unified GST system.
Brazil and Canada follow a dual system where GST is levied by both the Union and the state governments.
France was the first country to introduce GST system in 1954.

5. GST rates across the globe
Country
SR/RR/Zero rate
United Kingdom
20%/5%/0%
Australia
10%
Canada
13%/5%
Thailand
7%/0%
Vietnam
10%/5%
Singapore
Malaysia

6. Present Indirect Tax Structure

7. Structure Present Indirect Tax Excise Duty Service Tax
Entry No. 84, List I Schedule VII
Taxable event is manufacture
Residuary Entry No. 97, List I Schedule VII
Taxable event is Provision of service
Service Tax
Sales Tax/ VAT/ CST
Entry No. 54 of List II (VAT) ; 92A of List I (CST)
Taxable event is Sale
Customs Duty
Entry No. 83, List I, Schedule VII
Taxable event is Import & Export
Entry Tax
Entry No. 52 List II, Schedule VII
Taxable event is Entry of goods

8. Structure Present Indirect Tax State Excise Duty Electricity Duty
Entry No. 51, List II Schedule VII
Taxable event is manufacture
Entry No. 54 of List II (VAT) and 92A of List I (CST)
Taxable event is purchase
Purchase Tax
Octroi
Entry No. 52 List II, Schedule VII
Taxable event is Entry of goods
Luxury
Entertainment Tax
Entry No. 62 List II, Schedule VII
Taxable event is Entertainment of Goods
Electricity Duty
Entry No. 53 List II, Schedule VII
Taxable event is Sale

9. Current Taxes - Shortcomings
Complexity
No Cross Credit
Compliance and Reporting
Tax on Tax
Classification issues

10. Road map to GST in India

11. Road map to GST in India
2006, announcement of the intent to introduced GST by
November 2009-First Discussion paper(FDP) released by EC on which comments were provided by Government of India.
June 2010-Three sub working groups were constituted by government of India on:
Business process related issues
Drafting of Central GST and model state GST legislations.
Basic design of IT systems required for GST in general and IGST in general
March Constitution (115th amendment) bill introduced in parliament
November 2012-Committee on GST design constituted by EC

12. Road map to GST in India
February Three committees constituted by EC
Dual Control, Thresholds and exemption in GST regime
RNRs for SGST and CGST and place of supply rules
IGST and GST on Importers
March GSTN incorporated as section 25 company
June Committee constituted by EC to draft model GST law
August Standing committee on Finance submitted report
April Committee constituted by EC to examine business process under GST
December nd Constitutional amendment bill introduced in parliament
May The Constitution (122nd Amendment) Bill, 2014 (Bill) was passed by the Lok Sabha.
July The report was adopted by the Select Committee and tabled in the Rajya Sabha

13. PROPOSED GST STRUCTURE INDIA

14. All covered under GST but non GST supplies will exist
Central Excise
Service Tax
Customs and SAD
CVD
VAT
Octroi
Entertainment Tax, Luxury Tax, Lottery Tax
Surcharges
And CESS
Purchase Tax
All covered under GST but non GST supplies will exist

15. PROPOSED RATES - GST
The GST shall have two components: one levied by the Centre, referred as Central GST, and the other levied by the States referred as State GST.
Rates for Central GST and State GST would be prescribed appropriately. Initial Proposed rates may varied between 20% to 25% in 1st year, 12% to 18% in 2nd year, 16% in 3rd year.
CGST and SGST on intra- State supplies of goods or services in India.
IGST shall be levied by the Centre
Import of goods and services
Inter state stock transfers of goods and services
CGST for CGST and SGST for SGST. Except for IGST where both way utilisation is possible.

16. GST – EXCLUSIONS Alcoholic Beverages Tobacco Products Electricity Duty
Real Estate
Taxes on specified Petroleum Products, Crude Oil, Natural Gas, MS, HSD, ATF-To be considered later on

17. Particulars
Before GST
After GST
Import in India 10
Add: 20% 2
Add: 20% -
Add: 4%
0.4
Add: 20%
Supply to Manufacturer
14.4 14
Value Addition 5
Manufacturing cost
19.4 19
Add: 20%
3.88
3.8
Value for Excise Duty
23.28
Add: 20%
4.656
Value for Sales tax/GST
27.936
22.8
Add: Sales 12.5%
3.492
Add: 20%
4.56
Purchase Price of Service provider
31.43
27.36
Add: Service 50%
15.71
13.68
Taxable value
47.14
41.04
Add: 12.36%
5.83
8.21
Cost to Consumer
52.97
49.25

18. GST - Key Issues Power of States to amend SGST at their end
Whether Land will be covered
Power of States to amend SGST at their end
List of Exempted Goods or Services
Sector specific provisions like Banking, Real Estate, E-commerce, essential sectors
Exemption threshold
Place of Supply Rules for Goods and Services
1% Cascading tax
Litigation structure

19. Opportunities for CS after implementation of GST

20. IMPACT OF
GST

21. Internal / Human Capital Sales & Marketing Strategies
GST IMPACT AREAS
GST
Information System
Suppliers
Customers
Finance & Admin
Internal / Human Capital
Strategy
Legal
Sales & Marketing Strategies

22. Opportunities for Company Secretaries
Mapping and Audits of as is tax process in a company
Transitional Issues
Restructuring present and future agreements / legal documents
Realign pricing policies and supply chain management
Upgrade Information technology systems to record various supplies
Setting up reworked MIS process and strategic decisions
Supply chain and distribution chain management to ensure compliance

23. Opportunities for Company Secretaries
Supply chain and distribution chain management to ensure compliance
Ensure compliance records and returns and assessments
Training of people for multiple GST registrations and compliance
Representation with various Government agencies for clarifications and trade issues
Tax health check exercise to review client meeting the above requirements
Tax advisory on Indian GST tax positions and tax process
New Tax assessee base will be created

24. SKS Associates, Litigators & Consultants
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