1. GST - Goods and Service Tax
Demystifying
GST - Goods and Service Tax

2. Agenda: Introduction to GST Understanding GST GST Highlights
Registration
GST Compliance
Brief inference in comparison with existing law
What will change
Preparedness for GST
Consequences of non-compliance

3. Introduction to GST
GST- an important breakthrough – in the sphere of indirect tax reforms in India.
Improvised Tax system over Central Excise Duty and Sales Tax system
Significant improvement –the next logical step – towards a comprehensive indirect tax reforms in the country.

4. Outline on the major milestones
Journey so far…..
GST is being introduced in the country after a 13 year long journey since it was first discussed in the report of the Kelkar Task Force on indirect taxes,2013.
Outline on the major milestones
The constitution Amendment bill for GST passed by Rajya Sabha in August,2016
The draft model GST Law was released and put in public domain in June 2016.
Bill was passed by the Lok Sabha on
First Discussion Paper on Goods and Services Tax in India in November, 2009.
Budget Speech for the financial year
In 2003, the Kelkar Task Force Suggested Goods and Services Tax (GST) based on VAT principle.

5. What is GST? GST stands for Goods and Service Tax which is a
comprehensive tax levied on manufacture, sale and
consumption of goods and services at pan-India level.
Thus, GST will be one indirect tax for the whole nation ,which will make India
one unified common market.

6. GST Why GST? Simple Tax Structure Eliminates Cascading Effect
Increased revenue
Eliminates Cascading Effect
The current indirect tax system with multiplicity of taxes -
at different rates - at multiple points.
This has led to several inefficiencies and limitation.
One of the limitation was no cross setting of
liability with central and state levied taxes
which resulted in cascading effect.
GST- a single unified tax across the nation
aims at simplify the tax system
and uniting the country economically
as One Nation – One Tax.
Technology Driven System

7. Highlights of GST Common threshold limit across the country
Continuity of tax credit across the supply chain till it reaches the consumer.
Elimination of tax cascading effect in the supply chain
Pan Based Registration
‘on Supply’ tax liability instead of ‘Removal / Sale’

8. Highlights of GST Valuation method broadly as ‘Transaction Value’
Branch transfers taxable and credit eligibility
Tax credit eligibility on inward supply of goods / services for Inter-state transaction
No declaration forms (Form – C, F, etc…….)

9. Registration – Threshold Limit
Regular Dealer
North East India
Aggregate Turnover exceeds
4L for Registration
5L for Payment of Tax
Rest of India
Aggregate Turnover exceeds
9L for Registration
10L for Payment of Tax
Composition Scheme
Composition Levy
Aggregate Turnover does not exceeds
50L

10. Transition Registration
Migration
Automatic Registration
First provisional & then final registrations

11. GST CGST SGST IGST Taxes subsumed under GST VAT Purchase Tax CST ADE
CVD & SAD
Excise Duty
GST
Entry Tax
Luxury tax
Service Tax
Surcharge & Cess
Surcharge & Cess
CGST
SGST
IGST

12. Tax scenario under GST Example of Car: Existing Cost of Manufactures
4,00,000
12 % + Infrastructure cess1%
52,000
Vat 12.5%
56,500
Dealer Invoice
5,08,500
Dealer Cost (4,00, ,000)
4,52,000
10 %
45,200
Sale Price for delear
4,97,200
62,150
Price to customer
5,59,350
GST
4,00,000
44,000
4,88,000
40,000
4,40,000
48,400
5,36,800
Saving to Consumer
Amount
Percentage
22,550 4%

13. Input Credit Mechanism
SUPPLIER
BUYER
TAX INVOICE
Receipt of Goods /Services
Receipt of Goods /Services
TAX INVOICE
Tax Laibility
Returns
Provisional ITC
Eligible ITC
Tax Laibility
Returns
Provisional ITC
Tax Department
Amount ITC credited
Electronic Credit Ledger

14. 7 day after expiry of registration
Type of Returns
Dealer Type
Return Type
Frequency
Due Date
Regular & Casual Dealer
GSTR 1
Monthly
10th of succeeding month
GSTR 2
15th of succeeding month
GSTR 3
20th of succeeding month
GSTR 8
Annual
31st Dec of next fiscal
Compounding Tax Payer
GSTR 4
Quarterly
18th of succeeding month
Foreign Non-Resident Taxpayer
GSTR 5
7 day after expiry of registration
Input Service Distributor
GSTR 6
Tax Deductor
GSTR 7

15. Upload Process GST Portal GST Portal Sales Invoices Purchase Invoices
Automated
Tax returns
Sales Invoices
Purchase Invoices
GST Portal
10th, every month
15th, every month
20th, every month

16. GST Return GSTR 1 GSP GST NET(GSTN) GSTR 2 GSTR 3
10th of the Next Month
GSTR 1
Outward Supplies made by the Taxpayer
GSP
GST NET(GSTN)
15th
of the Next Month
GSTR 2
Inward Supplies received by the Taxpayer
20th of the Next Month
GSTR 3
GST Return for the Month with Tax

17. Input Credit Adjustment
CGST - ITC
IGST
CGST
SGST - ITC
IGST
SGST
IGST- ITC
SGST
CGST
IGST

18. Mandatory e-payment for amount exceeding Rs 10,000
20th of subsequent Month
Mandatory e-payment for amount exceeding Rs 10,000
Online: NEFT/RTGS/IMPS
Offline: Cash/ Cheque / DD etc.

19. Inference with the existing Law:
Composition scheme
Composition levy
Reverse Credit mechanism
Exemptions
Remission of tax

20. Inference with the existing Law:
Captive consumption
Reversal of ITC
Input Service Distributor
Job work
Tax credit on inputs held in stock

21. With GST What will change ?
Technology
Digital B to G connect
End-to-End Technology Driven System
GST compliance rating
Process
Transaction Focused
Transparency from grass-root level of business records
Triangulation of suppliers and recipient records
Rectification errors and omissions
Reconciling returns with books
Discipline
On-Time submission of returns
On-Time Payment
Interest on disputed credits
Less scope for Kacha Bill
Vat only Dealers to GST
Compliance to Inherited provisions of Excise and Service Tax in GST

22. Consequences of non-compliance
Late fee of Rs.100/- per day for every day during which such failure continues subject to a maximum of Rs. 5000/-.
Late Fee
Delay in tax payment
The rate of interest is yet to be notified.
Interest
Rs.10,000/- or an equal amount to the extent of tax evaded.
Imprisonment with fine up to 5 years depending on amount of tax evasion with slab ranging from 25L to 500L
Fines

23. GST Stakeholders

24. Preparedness for GST
Books of accounts/ records matching 100% with the return
Discipline in maintaining, recording and reconciling ‘electronic’ – Credit and Cash ledger
Records to substantiate ITC eligibility on stocks / capital goods held as of last day of GST transition
Transitioning to GST

25. Technology is the key
Seamless Detection, Correction and Compliance at:
Configuration
Recording
Reconciling at source
Reconciling post reporting
Triangulation with GSTN

26. Tally’s Technology for GST
Hero of GST Success
API
Application Program Interface

27. Tally’s Technology for GST
Tally’s Role
Interface with GSTN
GSP
Business Solution
ASP

28. Thank You
Queries: