PHASE I 3rd GST FAMILIARISATION PROGRAMME 03/05/2017

WHAT IS GST ?

Taxes subsumed under GST Central Excise Duty Additional Duties of Excise, custom SAD(Special Additional Duty) Service Tax Central surcharge and cesses CST(Central Sales Tax) State VAT Luxury Tax, Entry Tax Entry Tax Entertainment Tax Tax on advertisements, lotteries, betting and gambling State surcharges and cesses Basic Custom Duty will NOT be subsumed under GST

FEATURES OF GST Uniform tax across the country Consumption based tax Dual GST structure adopted will frame policies GST council Control to be exercised either by center or state

Commodities outside GST Commodities proposed to be kept outside purview of GST Alcohol for human consumption Petroleum Crude Motor Spirit(petrol) High Speed Diesel(HSD) Natural Gas Aviation Turbine Fuel Electricity

Rate structure under GST Exempt supplies Nil rated Zero-rate supplies Export Supplies to SEZ Taxable supplies 5% 12% 18% 28% SCI

IGST rates = CGST + SGST/UTGST GST- levy structure TYPE OF GST LEVY INTRA – STATE (SAME STATE) CGST (CENTRAL GST) SGST /UTGST (STATE/UT GST) INTER – STATE (DIFFERENT STATES) IGST (INTEGRATED GST) IGST rates = CGST + SGST/UTGST

Dealer Status Dealer status Unregistered Dealer(Indian/Foreign) Registered under GST Unregistered Dealer(Indian/Foreign) Not registered under GST

GST IMPACT – CUSTOMERS SERVICES PROVIDED BY SCI GOODS SUPPLIED BY SCI

GST REGISTERED CUSTOMER-Determination of place of Supply Services provided by SCI To any customer (General Rule) Location of customer (Address) O&M Services (On board services) First schedule point of departure of the vessel Transportation of Goods (Foreign customers) Destination of Goods Note : In case of unregistered customer for transportation service, place of supply shall be the place where the goods are handed over.

TYPE OF GST APPLICABLE – GENERAL RULE SCI-Mumbai provided services to Registered customer Inter state (Location of customer outside Maharashtra) IGST (Location of customer in Maharashtra) Intra state CGST+ SGST Foreign customer (Location of customer is outside India) General Rule (Zero rated) Export TYPE OF GST APPLICABLE – GENERAL RULE

TRANSACTIONS COVERED UNDER GENERAL RULE Time Charter Voyage Charter/Freight Demurrage Consultancy services

TYPE OF GST – TRANPORTATION OF GOODS (FOREIGN CUSTOMERS) SCI-Mumbai to FOREIGN CUSTOMER Destination of goods- India Import Freight Taxable Destination of goods- Outside India Export Freight (Zero Rated) Export Loading and Discharge of goods-Outside India Cross Trade Freight Note : Example includes : Voyage charter and Liner Freight

PLACE OF SUPPLY OF GOODS TO ANY CUSTOMER Where Goods are handed over By SCI-Mumbai Supply of Goods Goods delivered in the state of Maharashtra CGST+SGST Goods delivered in the state other than Maharashtra IGST Goods delivered outside India (Zero-Rated) Export Vessel Sale, Sale of Container, Scrap sale etc.

GST IMPACT - VENDORS PROCUREMENT OF SERVICES PROCUREMENT OF GOODS IMPACT ON INPUT CREDIT

PROCUREMENT OF SERVICES - TYPE OF TAX Services provided to SCI –Mumbai (POS – Maharashtra) Vendor registered in the state of Maharashtra CGST + SGST Vendor registered in state other than Maharashtra IGST Unregistered Indian Vendor (To be paid under RCM by SCI) Foreign vendor IGST (Under RCM, if notified) Note : 1. Determination of Place of Supply of services: Location of vendor and Location of SCI. SCI is eligible for GST on services received as place of supply under GST is determined based on address of service recipient.

PROCUREMENT OF GOODS - TYPE OF TAX Registered vendor Vendor state & Delivery state is same (Intra – state) CGST + SGST Vendor state & Delivery state is Different (Inter – state) IGST Unregistered (Indian Vendor) (To be paid under RCM by SCI) Foreign vendor Delivery in India (Basic custom Duty + IGST) Import Delivery outside India No Tax implication Note : 1.Determination of Place of Supply of Goods: Location of vendor and place where the goods are handed over.

ELIGIBILITY OR NON-ELIGIBILTY OF INPUT TAX CREDIT Service Tax Eligible GST VAT/CST/Excise NOT eligible GST Eligible Note : 1. GST on delivery of goods in the state of Maharashtra, West Bengal, Tamil Nadu and Delhi will only be eligible for input credit.

GST COMPLIANCE – RECEIVABLES BY SCI

Key Fields to any invoice GST Invoices Key Fields to any invoice Name, GSTN and Address of customer and SCI. HSN(Harmonized System of Nomenclature). SAC(Service Account Code). State of supply of goods/ services(Place of Supply) MASTER DATA REQUIREMENT : Customer/Vendor master should have GST Registration No. and state. All material/services code to be assigned HSN/SAC code respectively.

Timeline for issuance of Invoice by SCI Advance received from customer Date of supply of service Date of issue of Invoice 30 Days (Max. period) Advance received from customer Advance received Date of issue of invoice Advance received has to be mapped with invoice to which it pertains

Reversal of invoice in SCI should not be executed post-GST Debit Note / Credit Note to be issued by SCI For increase in invoice value, debit note /supplementary invoice is required to be issued which has to be mapped with original invoice against which upward revision in price took place. For decrease in invoice value, credit note is required to be issued which has to be mapped with original invoice against which downward revision in price took place. Reversal of invoice in SCI should not be executed post-GST

Timeline for issue of Credit Note F.Y. 2017-18 F.Y. 2018-19 Invoice issued By SCI in F.Y. 2017-18 30.09.2018 (Maximum till September) Note: SCI will not be able to reduce its output tax liability pertaining to delayed credit note. No timeline for issue of Debit note by SCI to its customer.

GST COMPLIANCE – PAYABLES BY SCI

Lapse of Input credit due to late booking of Invoice by SCI F.Y. 2017-18 F.Y. 2018-19 Invoice issued by Vendor in F.Y. 17-18 30.09.2018 (Maximum till September or within one year of raising of invoice whichever is earlier)

Input credit to be reversed due to delayed payment by SCI Date of issue of invoice by vendor Date of payment by SCI 6 Months (Max. Period) Note : If payment is not made to vendor within 6 months, amount of ITC claimed to be added in outward liability on GST network with interest. 2. Credit can be claimed once payment is made by SCI to vendor.

TRANSITIONAL PERIOD INVOICES Pre - GST Services provided by vendor & Invoice raised with service tax component on SCI. Invoice yet to be received as on 1st July 2017. Post - GST ALL invoices must be received and booked within 30 Days from GST rollout(from1st July) to claim CENVAT credit.

GST - Miscellaneous

Registration status of SCI Migrated Maharashtra West Bengal Delhi Tamil Nadu Migration under process Andaman & Nicobar

Sequence of claiming credit of IGST/CGST/SGST IGST – Output IGST- Input CGST- Input SGST- Input CGST - Output SGST - Output CGST SGST

Do’s Do’s (Receivables) Dont's Dont’s (Payables) GST compliant invoice Type & rate of tax, GST No., vendor name, Place of supply etc. to be proper Timely booking of invoice Timely payment to vendor Transitional Provisions Do’s (Receivables) Type & rate of tax, GST No., customer name, Place of supply etc. to be proper. Timely issue of invoice Timely issue of credit note Dont's (Receivables) Reversal of invoice Delay in issue of credit note Dont’s Late booking of invoice Delayed payment to vendor

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