PPT on Goods and Service Tax (GST)
By: – CSSANJAY MALHOTRA
Goods and Services Tax – GST
Dated:- 6-9-2016
Enclosing herewith is the PPT on Goods and Service Tax (GST). Hope all will find the same beneficial to understand the concepts in GST and align the Business Model in times to come, as GST would lead to Business Transformation.
Any suggestions please do get back so that the same may be putforth to CBEC.
regards
CS Sanjay Malhotra
Reply By Ganeshan Kalyani as =
Sir, nice ppt. Simple and easy to understand. Thanks for sharing sir.
Dated: 6-9-2016
Reply By SNEHAL SHAH as =
Dear sir ,
Thanks sir for providing such valuable inputs .
Regards,
SNEHAL SHAH
Dated: 7-9-2016
=============
Document 1GST
GOODS AND SERVICES TAX •
By: BS SANJAY MALHOTRA
Practicing Company Secretary (Indirect Tax Matters),
Member Taxation Committee- FICCI Chandigarh,
Member GST Core Group Committee (ICSI)
# 95011-76633 (sanjaymalhotra.cs@gmail.com)
BY: CS SANJAY MALHOTRA
GOO
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e Providers
Reduce Compliance Costs
Broadening Tax Base.
• Reduce Tax Distortions.
Increase in Employment.
Increase in GDP by 2%
BY: CS SANJAY MALHOTRA
CONCEPT – PRESENT v/s PROPOSED
Service tax/Excise/Sales tax/
Other taxes
Present
TAXES
TAXES
TAXES
TAXES TAXES
TAKES
TAXES
TAXE AXES TAXES
TAXES TAXES
TAXE TAXES
TAVES
TAXE
TAXES
TAXES
TAXES
TAXES
TAXES
TAXES
TAKETAXES
TAXES
TAXE
TAXES
MAES
TAXES
TAXES
Packaging Automation layout prouide d
by Barry-Wehmiller Design Group, Inc.
MANUFACTURE
Tax Regime
IN INNNÊN
E
BY: CS SANJAY MALLIGRA
GST
Proposed
SUPPLY BASED
dreamstime
ATE
Present Regime
MRP of “X” : Rs 300/-
CENVAT@12.5% : Rs 26.25
Effective Duty Rate: 8.75%
Abatement: 30%
Total Taxes
Effective Duty
S.P
150
S.P
Total
Add:CENVAT 26.25
176.25
Total
200
Add:CENVAT 26.25
226.25
S.P
Add:CENVAT
Total
273.75
26.25
300.00
Rs 26.25
8.75%
Manufacturer
GST Regime
Wholesaler
Retailer
Consumer
S.P
150
C.P
177
C.P
236
• GST @ 18%
Add: GST 18%
27
Less: ITC
27
Less: ITC
36
Total
177
15
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A
GERMANY
10%
16%
☠9
SOUTH KOREA
10%
10
SWITZERLAND
8%
BY: CS SANJAY MALHOTRA
17
FINANCE & ADMIN
SALES &
MARKETING
BUSINESS STRATEGY
& OPERATION
LEGAL
HOW DOES
GST IMPACT
YOUR BUSINESS?
INFORMATION
TECHNOLOGY
CUSTOMERS
SUPPLIERS /
PROCUREMENT
HUMAN RESOURCE
BY: CS SANJAY MALHOTRA
Commodity
GST – Impact on Businesses
Proposed GST Rate (Lets
Present Tax Rates
say 20%)
Difference
Excise
Duty VAT
Total
CGST
SGST
Total
CHEMICALS
12.50% 6.05% 18.55%
10%
10%
20%
1.45%
PHARMACEUTICALS 12.50% 6.05% 18.55%
10%
10%
20%
1.45%
SMALL PASSENGERS
CARS
12.50% 14.50% 27.00%
10%
10%
20%
7.00%
MID SIZE CARS
24% 12.50% 36.50%
20%
20%
40%
3.50%
ENGINEERING
GOODS
12.50% 14.50% 27.00%
10%
10%
20%
7.00%
BY: CS SANJAY MALHOTRA
TOI
DU
GOODS & SERVICE TAX
Eating out
Phone Bills
High Segment cars
Parcel/Courier
Q
J
….
Phones
What will become
CHEAPER
Furniture
Needs Tax Rates
Review or else Price
Increase
Small Cars
Satellite TV
Heater/Air cooler
Biscuits/cakes
BATTERY
BY: CS SANJAY MALHOTRA
Buying House
Ba
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sale
Garment
Manufacturer “B”
Garment
sale
Wholesaler
“C”
TOTAL COST-
Rs 354/-
Consumer
“E”
Tax Invoice-“A”
Sale Price:
150/-
Tax Invoice-“B”
CGST 10%
15
Retailer
Garment
sale
“D”
Garment
sale
Sale Price:
SGST 8%
12
200/-
CGST 10%
20
Tax Invoice-“C”
SGST 8%
16
Sale Price:
250/-
Total
177/-
Tax Invoice-“D”
CGST 10%
25
Sale Price:
300/-
Total
236/-
SGST 8%
20
CGST 10%
30
Tax Payments
SGST 8%
24
Payable
(in Rs)
Total
295/-
CGST
15
Tax Payments
Payable
SGST
12
(in Rs)
Total
354/-
CGST
20
27/-
SGST
Less: Receivable
CGST
SGST
10
8
18/-
Less: Receivable
CGST
SGST
Net Payable Rs 9
ཞེཋསླེ
16
36/-
Tax Payments
Payable
(in Rs)
CGST
25
Tax Payments
SGST
à¼
20
Payable
(in Rs)
CGST
30
45/-
SGST
24
Less: Receivable
27/-
CGST
54/-
20
Less: Receivable
Net Payable Rs 9
SGST
16
CGST
25
36/-
SGST
20
Net Payable Rs 9
45/-
Net Payable Rs 9
BY: CS SANJAY MALHOTRA
GST FLOW – INTER – STATE MOVEMENT
STATE: PUNJAB
Cotton Price: Rs 100
CGST 10% : Rs 10
SGST 8% : Rs
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CREDIT
IGST
Rs 45
TOTAL COST-
Rs 354/-
Manufacturer “A”
Yarn
sale
Garment
Manufacturer “B”
Garment
sale
Wholesaler
“C”
Consumer
“E”
Tax Invoice-“A”
Sale Price:
150/-
Tax Invoice-“B”
IGST 18%
27
Sale Price:
200/-
Garment
sale
Retailer
“D”
Garment
sale
IGST 18%
36
Tax Invoice-“C”
Total
177
Sale Price:
250/-
Tax Invoice-“D”
Total
236
IGST 18%
45
Sale Price:
300/-
Tax Payments
IGST 18%
54
Payable
Total
(in Rs)
295
Tax Payments
IGST
27
Total
354
Less: Receivable
IGST
18
Payable
IGST
Less: Receivable
(in Rs)
36
IGST
27
Tax Payments
Payable
IGST
(in Rs)
45
Net Payable Rs 9
Net Payable Rs 9
Less: Receivable
Tax Payments
Payable
IGST
(in Rs)
54
IGST
36
Less: Receivable
Net Payable Rs 9
IGST
45
Net Payable Rs 9
BY: CS SANJAY MALHOTRA
PURCHASING STATE: PUNJAB
Cotton Price: Rs 100
CGST 10% : Rs 10
SGST 8% : Rs 8
GST FLOW
Within State Supply
Sale Price:
100/-
CGST 10% 10
SGST 8%
8
Total
118/-
Inter-State Supply
Sale Price:
100/-
IGST 18%
18
Tax Payments
PAYABLE
ITC Net Payable
Total
11
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or
Registration
In case of multiple business,
separate registration may be
obtained.
Specialized agency of UNO
,
Multilateral financial
Institution etc shall obtain
UNIQUE IDENTITY
NUMBER(UIN) for notified
purposes
Don't
FORGET!
If eligible person fails to
obtain registration, Proper
officer may proceed to
register such person himself.
BY: CS SANJAY MALHOTRA
MIGRATION OF EXISTING TAXPAYERS TO GSTN DATABASE
Backspace
Scre
Online
Registration
Page
Up
Page
Dow
Existing Registrants either with states or with
centre to be migrated to GSTIN.
(Provisional Registration – Validity – 6 Months)
Validation of existing registration information by GSTN
APPROVED
VERIFIED
APPROVED
Registration
Information
*********
Verification by authorities
Verification/updation of migrated data by existing
registrants within specified period
Are you
ready
for
☠Issuance of GSTIN by GSTN
GST SANJAY MALHOTRA
Registration of New Applicant
➤ Online Application through common portal
APPLY
ONLINE
Application no
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.
(May be extended
for further 90 days)
• Shall make an
advance deposit of
tax equal to est. Tax
Liability.
BY: CS LAY MALHOTRA
Registration
Information
Documents to be filed for
Registration :-
13
Constitution of
business
Principal place
of business
Bank Accounts
BY: CS SANJAY MALHOTRA
Authorised
Signatory
Amendment of Registration
(SECTION 20)
Inform the proper officer of any changes in
information furnished initially or subsequently.
GOODS & SERVICE
TAX
Proper officer may approve or reject amendment
Principle of natural justice shall be followed while
rejecting the request for amendment.
BY: CS SANJAY MALHOTRA
Cancellation of Registration
(SECTION 21)
Proper Officer may
cancel the registration,
either on his own
motion or on an
application filed.
CANCEL
Registration can also be
cancelled in case of
contravention, fraud,
not furnishing returns etc
Cancellation shall not
affect the previous
liability of taxable
person.
On cancellation,
amount =credit of Input
tax or output
tax(w
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eriod is 6
months.
Business has not commenced within 6
months.
Within 30 days from the date of service
of cancellation order.
6.
Time for applying for revocation of
cancellation:-
BY: CS SANJAY MALHOTRA
REFUND
BY: CS SANJAY MALHOTRA
INTRODUCTION
Refund of tax
Payment of refund
➤ Withheld of refund
➤ Important points
➤ Relevant date
➤ Interest on delayed refunds
➤ Consumer Welfare Fund
➤ Utilization of the Fund
Refunds
Situations where refund would arise
Documents to be filed for refund
➤ Procedure
Summary
BY: CS SANJAY MALHOTRA
REFUND OF TAX (SECTION 38)
TAX
REFUND
Any person claiming refund & interest of any tax, may make an
application to proper officer before expiry of 2 yrs.
A taxable person may claim refund of any unutilized Input Tax credit at
the end of any tax period.
Application shall be accompanied by necessary documentary evidences &
amount so determined shall be credited to the Fund.
The proper officer shall issue order within 90 days from
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s, tax charged etc.
Registered taxable person,
supplying non taxable
Goods/services or paying tax u/s 8,
shall issue a bill of supply instead
of tax invoice.
SUMMARY
If taxable value/tax charged in tax
invoice > taxable value/payable,
taxable person may issue CREDIT
NOTE to recipient on or before
30th day of September following
the end of FY or date of filing of
annual return (whichever is
earlier)
If taxable value/tax charged in tax
invoice 10
lakh
BY: CS SANJAY MALHOTRA
TAXES
The amount deducted shall be paid the credit of appropriate govt. by
deductor within 10 days after the end of month.
Deductor shall furnish to deductee a certificate mentioning contract
value, amount deducted, date etc.
(if deductor fails, he shall be liable for a late fee, sum of 100 Rs/day)
oh,
don't forget…
Deductee shall claim credit, in his E-Cash Ledger, of tax deducted &
reflected in the return of deductor.
If any deductor fails to pay to credit of appropriate govt., he shall be
liable to pay interest i
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ce
Supply in the course of intra-
state trade or commerce
Goods
Services
Means
where
location
of
supplier
& place
of supply
are in
different
states
IGST
Central GST
State GST
BY: CS SANJAY MALHOTRA
Goods
Means
where
location
of
supplier
& place
of supply
are in
same
states
Services
Levy & Collection of Tax (Section 4)
INTEGRATED GOODS &
SERVICE TAX
Tax on all supplies of goods/Services made in
course of inter-state shall be levied at the rate
specified.
Cansto
Tax
Paid
Shall be paid by every taxable
person
BY: CS SANJAY MALHOTRA
TAX PAYABLE ON REVERSE
CHARGE BASIS
EXEMPTED GOODS/SERVICES
Tax shall be paid by person
receiving such
Goods/Services.
No tax shall be payable by
any taxable person
Enter
1E0
BY: CS SANJAY MALHOTRA
Place of supply of Goods (Section 5)
Yes
Location of goods at
time at which
movement of goods
terminates for delivery
to recipient
Movement of goods
No
Location of such Goods
at the time of delivery
to the recipient
BY: CS SANJAY MALHOTRA
10
shutterstock
shutterst
sh
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h immovable property or
boat or vessel is located
Services provided by
way of organization
of cultural, scientific,
sporting, educational
etc.
BY: CS SANJAY MALHOTRA
â– To a registered person, shall be the
location of such person
â– To other person, shall be the place
where the event is actually held
Seminar
Services related to
P3R
BRE
123RF
Restaurant &
catering,
fitness
training &
performance
appraisal
Cultural,
entertainment
event or
amusement
park etc.
services on
board a
conveyance such
as vessel, aircraft
Where
services are
actually
performed
• Location of such
person for registered
person.
• For any other
person, where
services are actually
performed.
where event is
actually held or
where park or
such place is
located
location of the
first scheduled
point of
departure of that
conveyance
BY: CS SANJAY MALHOTRA
23R
123RF
Transportation of
goods, Inc. mail
or courier
Supply of services
Passenger
transportation
services
11
11
Registered
Person
Any other
person
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ION
KNOWLEDGE
AWARENESS
Location of
the recipient
of services
.
Location of
such person for
registered
person.
• For any other
person, location
of recipient of
service
Shall be taken
as located in
each of such
states
Summary on utilization of amount of ITC
Input Tax credit of
Output Liability of
IGST
CGST
IGST
SGST
CGST
Central GST
Central GST
CGST
IGST
State GST
State GST
SGST
SGST
Central GST
State GST
BY
IGST SANJAY MALHOTRA
40
Transitional Provisions
a
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12
415
32
845651
125685
85221
84651
BY CS SANJAY MALHOTRA
76565A
165676
5640
64898
3416545
45649
1235
18541
45004
123
123
41523
3216
9885
210
450
Semi-finished goods removed for
carrying out certain processes & returned
on or after the appointed day.
Finished goods removed for carrying out
certain processes & returned on or after
the appointed day.
Transitional
Provisions
Amount of CENVAT credit carried forward
in a return to be allowed as ITC.
Unavailed cenvat credit on capital goods,
not carried forward in a retu
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day.
Treatment of long term
construction/works contracts
Credit distribution of service tax by ISD.
Inputs removed for job work & returned
on or after the appointed day.
BY: CS SANJAY MALHOTRA
Progressive or periodic supply of
goods or services.
AMOUNT OF CENVAT CREDIT CARRIED FORWARD IN A RETURN TO BE
ALLOWED AS INPUT TAX CREDIT
A Registered Taxable Person
Shall be Entitled to credit of
amount of CENVAT credit
(CGST Law) and VAT (SGST
Law) forward in return
under earlier law by him.
CENVAT
The amount shall be recovered as an arrear of Tax if said amount is found to be
recoverable as a result of any proceeding instituted against such person under earlier
Law.
BY: CS SANJAY MALHOTRA
UNAVAILED CENVAT CREDIT ON CAPITAL GOODS, NOT CARRIED FORWARD IN
A RETURN TO BE ALLOWED IN CERTAIN SITUATIONS
Credit of unavailed CENVAT Credit in
respect of Capital Goods in E-Credit
Ledger, not carried forward in return
shall be allowed.
Capital Goods
The amount shall be recovered as an arrear of Tax if sa
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axable supplies.
BY: CS SANJAY MALHOTRA
Tax Credit available on Switching over from Composition scheme
Registered taxable person
INPUT
Paying tax under composition scheme
To avail Credit of eligible duties & taxes
in respect of inputs held in stock &
inputs contained in semi-finished/
finished Goods held in stock on
appointed date.
OUTPU
BY: CS SANJAY MALHOTRA
AMOUNT PAYABLE IN THE EVENT OF TAXABLE PERSON
SWITCHING OVER TO COMPOSITION SCHEME
Taxable person has carried forward
the amount of eligible Credit in return
or on account of VAT in return
furnished under Earlier law.
Composition
scheme under
Section 8
VAT
INPUT TAX CREDIT
Debit of Amount equal to Credit of input
tax in respect of inputs held in stock &
inputs contained in Semi-Finished
Goods/Finished Goods held in stock on day
immediately preceding date of switch over
to be made in E- CENVAT / Cash Ledger.
BY: CS SANJAY MALHOTRA
EXEMPTED GOODS RETURNED TO THE PLACE OF BUSINESS ON OR AFTER
APPOINTED DAY
TAX
FREE
TAX
FREE
Goods o
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lace, No Tax shall
be payable if inputs
are returned within
6 months
BY: CS SANJAY MALHOTRA
Semi-Finished Goods removed for Job work & returned on or after Appointed day
Where any Semi-
Finished Goods
Semifinished
Goods
No Tax shall be payable if
Goods after process returned
to said place within 6 Months
from Appointed day,
Had been removed or dispatched to
any other premises for Manufacturing
process
BY CS SANJAY MALHOTRA
Z
Finished Goods removed for carrying out certain processes & returned
on or after appointed day
Excisable Goods
manufactured in factory,
for carrying out process
not amounting to
manufacture, removed
or despatched without
payment of duty, to any
premises
No Tax shall be payable if said
goods are returned within 6
Months from the Appointed
day
BY: CS SANJAY MALHOTRA
Finished
Goods
Finished
Finished
Goods
Goods
ISSUE OF SUPPLEMENTARY INVOICES, DEBIT/CREDIT NOTES WHERE
PRICE IS REVISED IN PURSUANCE OF CONTRACT
â–ªIn pursuance of contract, if price of any Goods/Serv
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of earlier
Law and if any amount
shall be refunded in cash
1:1
RECOVERY
BY: CS SANJAY MALHOTRA
ç›®
Every proceeding of Appeal, Revision, Review or reference relating to any
output duty liability initiated before appointed day shall be disposed of in
accordance with provisions of earlier Law
OUTPUT
FAX
☠If any amount becomes recoverable shall be recovered as an Arrear of tax or if
admissible shall be refunded in cash
BY: CS SANJAY MALHOTRA
PENALTY!
FOTOFNEH
In pursuance of an assessment or adjudication proceedings instituted,
any amount of tax, interest, fine or penalty becomes recoverable, same
shall be recovered as an Arrear of Tax & amount shall be admissible as ITC
If Refundable, same shall be Refundable in Cash under earlier Law
INTEREST
BY CS SANJAY MALHOTRA
Treatment of Amount Recovered or Refunded pursuant to Revision of Returns
$
if amount is
found to be
Recoverable
Shall be
recovered as an
arrear of tax &
that amount shall
be admissible as
ITC
Any return
revised
if a
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