GST – Impact & Challenges IT/ITeS Sector

Slides:



Advertisements
Similar presentations
Taxpayers Tax base Tax calculation Tax exemption Tax preferences 10. VAT (2)
Advertisements

Export promotion Schemes
GST – FIRST CUT VAT in INDIA…  1986 – modvat for inputs  1994 – modvat for capital goods  2002 & 2003 – service tax credit  2004 – cross-sectoral.
WHAT BUSINESS SHOULD DO TO PREPARE FOR GST
GST- Transition and Implementation Issues
GST w.e.f.-01-Jul-2017.
OVERVIEW of GOODS AND SERVICES TAX (GST)
Proposed Goods and Services Tax (GST) in India
Basic Concepts of Transition & Invoice
GST-SEZ A big debate surrounding the Special Economic Zone (SEZ) Units/ Developers after model GST Law was released in November 2016 was whether up-front.
Today’s Agenda Place of Supply. Returns under GST. Input Credit Rules.
GST – TRANSITIONAL AND CRITICAL PROVISIONS
Transitional Provisions governed by section 139 to 142 of CGST Act,2017 and Form TRAN 1 and Form TRAN 2 Presented by : PANKAJ KUMAR.
Nothing is certain except death and taxes…
Practicing Cost Accountant
Impact on Jewellery Sector
Goods & Services Tax GST Conclave III Hosted by:
PHASE I 3rd GST FAMILIARISATION PROGRAMME 03/05/2017.
PRESENTATION ON OVERVIEW OF GST Subodh Vora & Co. Rotary Club
Nothing is certain except death and taxes…
GST The Game Changer Presentation by CA Mahesh Jain 23rd August 2015.
GST IMPACT ON SOLAR POWER PROJECTS.
Returns in goods and services tax
Public Awareness Seminar on GST
Business process under GST
Standardised PPT on GST
Meeting with Commerce & Industry Minister Exports issues after GST
GST & YOU.
Monthly Return Filing Process
Hello..
GOODS AND SERVICES TAX TRANSITIONAL PROVISIONS
Input Tax Credit (ITC) 1 CA MUKUND CHOUHAN Mumbai & Surat
Input Tax Credit under Goods and services Tax
Presented by – CA Gagan Kedia
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA METTUR-SALEM CHAPTER
Returns under GST Manoj Malpani CA, CMA.
B.COM,CS, FAFP, NATIONAL GST FACULTY
Invoices, Accounts, E-Way bills Payments under GST
Payment of Taxes.
Goods and Service Tax “A great step towards development by team INDIA”
Report of Joint Committee on Business Processes for GST on GST Return
LEVY OF AND EXEMPTIONS FROM TAX INCLUDING COMPOSITION SCHEME
and Going Forward …. Updates on GST
Refund and Exports under GST J. B. Nagar CPE Study Circle of WIRC
A PRESENTATION BY CS HARSH CHAUHAN ACCOUNTS OFFICER BSNL
Opening Facts on Law By Sangeet Kr Gupta.
Filings GOODS AND SERVICE TAX Mohd. Irshad Ahmed
Overview of GST (Goods and services tax)
GST – General Awareness & E-Way bill Processing Systems
INPUT TAX CREDIT – Eligibility and Reversal
GOODS & SERVICES TAX TAX DEDUCTED AT SOURCE
GST Annual Returns & Audit Report
Goods and services tax GSTR-9 Sirc of icai
REFUNDS, RETURNS & OTHER COMPLIANCES UNDER GST
Annual Return, GST Audit and Finalization of Accounts with GST Perspective Presented By: CA Navneet Garg, B. Com, FCA, DISA, DIRM Presented.
GST Annual Return and Audit Service Sector perspective
Misc. Provisions under GST
GST Annual Return And Audit
Annual Return & Annual Audit under GST
GST – CURRENT / CRITICAL ISSUES
GST Annual Return & Audit
Tax Connect Advisory Services LLP KOLKATA MUMBAI DELHI BANGALORE
Gokhale Tanksale & Ghatpande. CA Nirav Shah
G G S H & CO. LLP, CHARTERED ACCOUNTANTS
Meeting with Commerce & Industry Minister Exports issues after GST
Annual Returns & Reconciliation of ITC
Draft – GST LAW Central / State Goods & Service Tax Act & Rules.
GST aspects of bank audit
GST Audit & Annual Return
GST Audit.
Presentation transcript:

GST – Impact & Challenges IT/ITeS Sector

Indian IT/ITeS Industry - Background Size – Rs. 10 lakh Crs (USD 160 Billion)* Exports- Rs. 7 Lakh Crs ( USD 110 Billion)* Countries : 670 offshore delivery centers in 78 Countries* Employment* : 37 lakh direct jobs 63 lakh indirect jobs , 1/3 Women workforce Largest contributor to the forex earning of the country * For FY 2015-16 reported by Nasscom

GST Advantage PAN India Common Rules, rates and procedures Input credits available for States & Central tax paid Except: Rent a cab, construction related, employee welfare and free supply Certainty in applicable indirect taxes software licenses deemed to be service- entry 5 (c),(d) & (f) of schedule II of CGST Act. Zero rating for exports and SEZ units. No tax on exports/ supply to SEZ under bond/LUT u/s 8 (1) of IGST Act Technology based tax compliance system. GSTN, GSPs, ASPs

GST downside Increase in effective rate of tax for domestic business by 3% Additional working capital requirement Output, Reverse charge payment in cash & non availability of credits for certain supplies Multiple registration- additional compliance cost State-wise registrations, separate registrations for SEZ units/developer STPs/EOUs are no more attractive Only BCD exempt on allowed procurement Export and SEZ supply zero rated only when made under Bond or LUT Full input credits with no tax payable on output U/s 8 (1) of IGST Act & Rule 96A of the CGST Rules Exporter to bring money in convertible foreign exchange within 12 months else pay IGST Rule 96A of the CGST Rules Treatment for amount received for breach of contract On Notice pay recovery, breach of bond GST payable.

GST challenges Complex procedure to avail Input credits – mismatch, capital goods Rule 36 – credit against tax invoice, bill of entry, invoice for RCM paid, Rule 43 common capital goods and Rule 69 Mismatch of credits Transitional issues: tax on stock, invoices of received post GST carrying old taxes, old credit notes, GSTN portal initial issues. Increase in Refunds amounts No zero rating for STPs, EOUs, No deemed exports, increase in rate of tax by 3% Identification of and compliance for purchases from unregistered persons Petty expenses, RCM on reimbursements claimed by employees Self invoicing and payment voucher Classification, HSN, tax rates Cross boarder transactions Branch to head office and vice-versa, exports & liability under reverse charge Treatment for services provided to employees Health insurance, transportation services etc where recoveries are made from the employees

E-Commerce Sector

Indian E-commerce Sector Very promising upcoming sector – USD 30 Billion in 2016 expected to touch USD 100 Billion in 2020* Large players like Amazon, Flipkart, Snapdeal, Tata CLiQ in retail, Services aggregators like Ola, Uber, Airbnb, OyO Rooms. Online digital services platforms: Coursera, iON digital Hub etc Attracting large foreign investment Startups & young entrepreneurs Innovative ideas, identifying customer pain points, use of technology *IBEF report 2017

Special compliances for ecommerce operators Compliance obligations for E-Commerce operators Section 52-Tax Collected at Source, compliance –GSTR-8, non-resident operators to take registration, TCS issue on Cash on Delivery transactions For notified Services provided ecommerce operator is required to pay tax on services supplied through the online platform Section 9 (5) Compulsory registration for persons supplying goods and services on e-commerce platform Section 24 (ix) Tax on Goods Returns

Q & A Thanks