1. Value Addition to Clients - GST
CA Madhukar N Hiregange

2. Todays Coverage- Value Addition Available – Stage wise
Pre- GST – Best Practices?
Last Returns- ( Missed Credits Exercise)
Impact Study
Whether to register? All locations- some locations?
Planning for ensuring continuation
Planning for margin safeguarding – advance ruling; optimum credit in time…?
Proper Classification – Mixed Vs Composite supply
Readiness for investigation, dept audit in 2020!!
Transitional Advantages/ Compliances
Job work options
ISD Vs Supply choices

3. Todays Coverage- Value Addition Available – Stage wise
4. Regular Health Check of GST or Scope in Internal Audit
5. Ensure 2016/17 Statutory Audit/ Tax Audit – GST – Impact ( Forms, Books Vs Returns..)
6. Hand Holding for compliance in period 1st July ( or 1st Sep ) for 2 months.
7. Retainer for initial year & smaller for subsequent years
8. Outsource responsibility including/ excluding litigation
9. Refund Management
10. Many many more….

4. Value Proposition Pre-GST Period Post-GST Period

5. Available in GST Act, & Rules 2017
Key Areas
Operational Consultancy
Network support & Infra.
Accounting & Taxation
Compliance requirement
Transitional Support Sr.
Centre/State Support Sr.
Audit & Assurance
Pre-GST Period 1. Statutory Role in GST 2. Key Araes 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

6. Other- Prof- Better Fees
Inspection/ Access to Business Premises
Appearance by Authorised Representative
Dept./ Special Audit
Accounts and other records
Audit –
Rs.1 Cr.
Section 35
35(5)
Section
65/ 66
Section 67
Other- Prof- Better Fees
Pre-GST Period 1. Role - pre -GST Act 2. Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities
Section 152 – Disclosure of Information by Public Servant

7. Being in a position to analyse the industry impact considering the global and Indian situation of the product / service;
In case of unintended hardship to some sectors- representation to the drafter would be in order as the level of listening presently is high; Akin to Companies Act
The clarity on the major impact on the client under GST due to in-depth understanding of the business; This presently service offering would provide the client with important information to plan the way forward under GST. This could be done as GST law is in place;
Being part of the core team of client for analysing, transiting into GST smoothly without business disruption & safeguarding of margins or as a knowledge advisor for s/w developers;
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

8. Understanding legacy tax
Systems at client workplaces so as to provide appropriate advise on migrating to better systems/ ERP or suggest modification to make the existing systems GST compliant;
Understanding legacy tax
For example supporting in decisions on: Closure/ reduction in godowns and branches; direct sale through e- commerce; evaluation of the working with C&F agents; in house/ outsourcing the distribution function to logistic companies; sourcing inputs at lowest cost within shorter time; linking to the ERP of the customer etc.;
Assisting in preparation of a strategic plan for procurement and marketing systems of clients needed under GST.
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

9. Changes in accounting software and internal control systems to suit GST. Test and guide & confirm the robustness;
GST awareness at initial stages and training for management, staff, vendors of clients.
Vetting and suggestion to modify agreements/ contracts/ major purchase orders overlapping or supplies to be made in GST regime;
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

10. Ensuring that the claim of credit on stock in hand is maximized by ensuring purchasing with excise duty paying documents as well as proper stock recording especially with job workers and agents and ensuring well thought of stocking policy;.
Reviewing the various business transactions to examine whether closing out the transaction in the pre GST or post GST period is advantageous;
The students of CA- the future CAs would also require to be taught the new law to enable them do the GST work today + contribute in future;
Many CAs have good HR skills and have been in accounts outsourcing- Maybe time to ramp up substantially with increased continuous trainignin GST abnd use of IT tools;
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

11. Revisit the pricing strategies with the distributors
Renegotiate (if any) the pricing with suppliers
Pricing
Alignment of all major contract terms and tax clauses with GST
Discounts terms to be specifically brought out in the contracts executed with distributors
Review of contracts
Making representation for lower rate of GST, taxability of promo products issued free
Representations
Maintaining detailed registers of supply and procurements, input credits
Timely filing of monthly and annual returns
Compliance and documentation
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

12. Tracking GST developments and creating awareness on GST
GST developments – Sharing
Mapping impact of GST on current supply chain and suggesting modifications from GST perspective
Impact on supply chain – Function wise
Identifying impact on financials, working capital, credit chain, concessions, and suggesting controls/ Short proc + planning options
Imp.on bus./finance – Focus on SOP + controls
GST awareness trainings, review of compliances, creation of manuals and access to GST updates/resolution to queries
Post implementation compliances
Changes to ERP modules, MIS reports, statutory compliance support, and ongoing trouble shooting support
ERP Updation - Validation
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

13. Synchronising IT Systems & Old data
Strong Management Information System
System Reconciliations
Data Integration between Centre & States
Automation of returns and other utilities at Centre as well as States
Updating Amendments in IT Systems
Data management for State Jurisdiction
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

14. Treatment of Incentives / Discount
Process Documentations & Accounting Manuals
Branch Transfers
Budgetary Controls
Control & Dispute Settlement
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

15. Deregistration from Existing Laws
Managing Pending Litigations
Review & Certification of Stock on date of transition
Knowledge Sharing & Capacity Building
Credit Analysis and Utilization
Comparative Valuation Under GST
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

16. Representation - unintended hardship to sectors
Conscripting Legislation & Rules/ Procedures
Monitoring Transactions & Revenues
Cross –verification with Other Acts
Training & Education
Fixing Rate Based on RNR and Review
Pre-GST Period 1. Role as pre M-GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities

17. Tax Advisory Services
International Research Issues
Knowledge Process Outsourcing
Information & Knowledge Sharing
Capacity Building Services
Technology Support Services
Pre-GST Period 1. Role as pre GST Act 2. Overview – Key Areas 3. Operational Consultancy 4. Network support & Infra. 5. Accounting & Taxation 6. Transitional Support Sr. 7. Centre/State Support Sr. 8. Global Opportunities*

18. Last opportunity to claim missed out credits
Review of Credit ledger
Review of all expenses to identify instances of missed out credits
Disputed credits – latest decisions favouring assessee – attempt to avail under intimation – not to utilise for certain time
Credit reversed under department influence – reavailment
Credit reversed under protest in past – availement and carry forward
Credit reversed under Rule 6 – directly attributable service
Provisional reversal of credit under Rule 6.. Final adjustment to be made in the last return
Hiregange

19. Last opportunity to claim missed out credits
Refund claim filed – possibility of rejection – withdraw claim and carry forward credits
Review of liability under RCM – pay & take credits
Charging of tax and availment of credits by service receiver- supplementary invoice
Reco of credits in return vs balance in books
Consideration not paid 3 months – pay all dues to avail credit… or issue debit/credit note
Avoid revision of last return
Hiregange

20. Impact Study – On site/ Off line
Unlearn – Relearn Concepts
Trader
Manufacturer
Service Provider
NGO/Govt.
Collate:
Idtc.icai.org,
Gst sites,
Newspaper…

21. Re-engineering benefits
Pro-activeness =
Efficient business
Cash flow surplus: Credits claim
Issues are addressed before hand
Vendor classification & discussion
Tax planning between IGST/CGST/SGST
Reduction in penalty & litigation
Smooth functionality between processes

22. Impact areas- Levy Total Tax - Outgoing Non - recoverable
Recoverable (Input)
1. Sales team
2. Depot in-charge
TRAINING
3. Accounts team

23. Impact areas - Procurements
Procurement source- to be realigned?
Change in EOQ levels, lead times, carrying costs
Revision in purchase budgets
Revision in product costing
Alternative source of procurement
Vendor rating – important criterion
Procuring with a type of GST to avoid accumulation of credit

24. Impact areas – Credit c/f
Claim of Credit
C/f
In GST
As per rules (yet to be notified)
Past credit
Only if eligible in GST
Transition – litigation?
Claim of credit on stocks

25. Impact areas – Exemption
Claim of Exemption
Trader
Service Provider
Manufacturer
Works Contractor
If trading in goods listed in the negative list, other than any taxable ancillary services provided. SST or composition scheme– no Interstate
Might be similar to Mega exemption notification 25/2012-ST
Supply to Job worker may be taxable under GST
Other exemptions may continue?
As WCT is considered a service – Composition Scheme not available. Exemptions is any awaited.

26. Impact areas – Composition
1. Turnover to be less than 50 lakhs – 1%?
2. Composition scheme for traders only and not for services
3. Works contract -Service - No composition
4. Vendors opting for composition in GST – shall reduce
No ISS
No Credit to Dealer or receiver

27. Impact areas- - Vendor Management
Review current vendors history to identify non-compliant vendors
GST Compliance rating to identify non-compliant vendors
Identify multiple new vendors, get revised quotes
Conducting vendor education programmes for unorganized vendors
Review price of all related party vendors to avoid disputes in transaction value
Suggest vendors to follow similar exercise - better vendor relationships

28. Impact areas – Agreements
Spill over contracts to be reviewed
Tax planning & legal intricacies
New projects- regn needed.
Ex: Construction industry. Paying around 25% tax presently, in GST 18%

29. Impact areas – Accounts
Records – IGST/CGST/SGST based; Regular recos
Returns – 37/ 49 for a single registration
Entry Validation + Periodic verification – reduction of errors
Inward/Outward Supplies + ISD uploaded

30. Impact areas – Audit Continuous check – Easy & accurate compliance
Internal
AUDIT
Pre-GST
Continuous check – Easy & accurate compliance
Review present compliance, book keeping, procurement, contract, etc.

31. SOP – Key business processes SOP – Vendor & Procurement
Impact areas – SOP
SOP – Indirect taxes
Introduce /update
SOP – Key business processes
Re-design at all levels
SOP – Vendor & Procurement
Tax & cost planning

32. How to get awareness in GST?
Awareness/ Basic Understanding- How to?
Start focused reading/practice in VAT, Central Excise or Service Tax till 1 July or 1st September Update on CGST / IGST/ UTGST + State Laws – Now
Use online resources – , gstclub, caclubindia, linkedin & others.
Form a small group for GST updates in your office
Attend GST Cert. Course + focused workshops.
Read books/ write articles for internal use…
How to get awareness in GST?
Hiregange

33. How to get Expertise in GST?
Expertise in GST – How To?
Write Articles – start with 1 small topic
Do One Impact study for free or nominal fee
Be part of future expert group – Mainly CA + 1/2 experienced advocates- meet 2 days a week with a paper presenter.
Attend the weekly study circle in local branch/ RC.
Analyse all the suggestions made to Govt by various authorities ( ICAI)
Write a topics GST book on a sector or areas of concern
Answer online forums with care/ in depth reading
How to get Expertise in GST?
Hiregange

34. Videos – GST Impact Web cast- Real Estate + Multilocational Units + Review Program
idtc.icai.org

35. Questions? - madhukar@hiregange.com