1. Aurangabad Branch of WIRC of ICAI GST Course 20-May-17
by CA Sanket Shah

2. Topics Transitional Provisions Migration of existing registrations
Transition for ITC
Transitional provisions for Job work
Miscellaneous Transitional provisions
Issues in GST implementation

3. Transition Provisions

4. Registration Existing Registrants:
Registration
Existing Registrants:
Automatic - Provisional Registration
Submission of documents (6 months) - Final Registration
Registration is not required under new Law – Application to be filed within 30 days
Portal to be opened again from 1st June to 15th June

5. Transfer of credits availed under existing law
Allowances/ Conditions:
All Credits under existing law to be carried forward to ECL
Credit should be admissible under new law
Should not relate to goods manufactured and cleared under such exemption notifications as are notified by Government
Returns for last 6 months under old law to be filed
Online Application in FORM GST TRAN-1 to be submitted within 60 days from the appointed day

6. Availment of un-availed credit on capital goods
Allowances/ Conditions:
Un-availed portion of credit of CG means that portion which was eligible under the old law to the extent not availed
Credit should be admissible under old and new law
Credit is not carried forward in the return furnished under existing law
Online Application in FORM GST TRAN-1 to be submitted within 60 days from the appointed day
Following particulars in respect of every item of capital goods are to be specified in the application:
ITC availed under each of the existing laws
ITC yet to be availed under each of the existing laws till the appointed day

7. Credit on input held by RTP - CGST
Credit on input held by RTP - CGST
RTP not required to take registration under old law ie Excise/ Service tax, FSD, SSD, registered Importer, Depot of Manufacturer
Mfg of exempted goods or provision of exempted services, WCT services exempt under 26/2012
Credit of inputs held in
Stock
Contained in semi-finished goods
Contained in finished goods
Used for making taxable supplies
Document evidencing payment of tax
Not earlier than 12 months from new law
Credit is eligible under new law
RTP passes on the benefit by reduction of price
Supplier not eligible for abatement under new Act
Online submission within 60 days from the appointed day specifying details of stock held

8. Credit on input held by RTP - SGST
Credit on input held by RTP - SGST
RTP not required to take registration under old law ie supplier of exempted goods
Composition Tax Payer
Tax at 1st point of sale and subsequent sale on taxable
Credit of inputs held in
Stock
Contained in semi-finished goods
Contained in finished goods
Used for making taxable supplies
Document evidencing payment of tax
Not earlier than 12 months from new law
Credit is eligible under new law
RTP passes on the benefit by reduction of price
Online submission within 60 days from the appointed day specifying details of stock held

9. Credit on input held by RTP – Document evidencing payment of tax not available
RTP other than Manufacturer and Supplier of Services
Credit shall be allowed as below:
At 40% of the Central tax applicable on supply of such goods after the appointed date
Shall be credited to ECL after Central tax is paid on such supply
Scheme is available for six tax periods from the appointed date
Conditions:
Goods not wholly exempt from excise duty under First Sch of Central Excise or were not nil rated
Document for procurement of goods is available
Online Application in FORM GST TRAN-1 to be submitted within 60 days from the appointed day specifying details of stock held
Separate form to be filed for each of the six tax period giving details of supplies of such goods
Stock of goods on which credit is availed is so stored that it can be easily identified by RTP

10. Credit of input or input services received after appointed date
Credit of eligible duties in input or input services received after appointed date on which tax was paid by the supplier under the existing law will be available
Allowances/ Conditions:
Invoice of duty paying document is accounted in books within 30 days from the appointed day
Following Details are to be submitted online within 60 days
Details i.e. name of supplier, invoice details, description, quantity and value of goods or services
Amount of eligible taxes or duties charged by the supplier
Date of receipt of goods or services is entered in the books of accounts of recipient

11. ITC in transition – Other cases
Cases where credits are allowed:
Tax being paid at fixed rate or paying fixed amount in lieu of tax under the existing law
Centralized registration
Credit of cenvat balance in the last return under the existing law be credited to ECL
Return under the existing law needs to be filed within 3 months (including revision if any only to the extent of reduction in ITC)
Credit should be admissible under the new law
Such credit can be transferred to any other registered person with same PAN, who was already covered under Centralized registration under the existing law
Credit reversed on completion of 3 months due to non-payment to vendor
Credit can be re-claimed if payment to vendor has been done within 3 months from the appointed day

12. Goods sent to Job worker
Goods sent to Job worker
Inputs and Semi-finished goods returned within 6 months – no tax
Commissioner can extend by further period of upto 2 months
Goods can be directly cleared from the premises of the job worker
Returned after 6 months
Input tax credit to be reversed on the same
Details of inputs/ semi-finished goods held by principal at various premises of job workers (separately) needs to be submitted online within in 60 days

13.
Tax paid goods (sent within 6 months before appointed) returned after GST Date
Returned within 6 months
By RTP – tax to be paid on such supply
By Non-RTP – Refund to be claimed by Supplier
Returned after 6 months
By RTP – tax to be paid on such supply
By Non-RTP – No refund option with Supplier
Goods are identifiable to the satisfaction of officer

14. Price revision after GST Date
Price revision after GST Date
Contract entered prior to GST Date
Goods/ Services sent/ provided before GST Date
Raise Supplementary Debit/Credit Note
Within 30 days from revision
Upward revision – GST payable
Downward revision – GST liability reduction, subject to ITC reduction by buyer

15. Refund of old taxes Refund of old taxes – Cenvat/ VAT Input tax
Refund of old taxes
Refund of old taxes – Cenvat/ VAT Input tax
Refund of old taxes paid relating to export of goods/ services before or after the GST date
To be paid in cash only
No refund allowed if cenvat/ ITC carried forward
Claim rejected (fully or partially) – credit will lapse
Refund of tax paid under old law
Relating to services not provided
To be discharged in cash only

16. Goods sent (sent within 6 months before appointed) on Approval Basis
Goods sent (sent within 6 months before appointed) on Approval Basis
Details of goods sent to be submitted online in 60 days
Returned within 6 months or extended period
No tax payable
Returned after 6 months or extended period
Tax to be paid on such supply by the person returning the goods
Goods not returned after 6 months or extended period
Tax to be paid on such supply

17. Transactions/ Contracts extending beyond GST Date
Transactions/ Contracts extending beyond GST Date
General Principle
Once tax is paid under earlier law, tax not payable again under new law
Goods and/or Services supplied after GST date under long term contract would be taxable under GST
If the point of taxation was in earlier period and tax paid thereof – No GST

18. Transition for existing projects
Pre-GST:
Agreement registered 1% VAT paid
ST paid on partial receipts
GST:
GST payable on whole agreement
Deduction of VAT and ST paid will be available
(Law interpretation can lead to alternate tax positions also) 1%
4.5%
5.5%
12-18%

19. Transition for existing projects
Pre-GST:
ST paid on partial receipts
Agreement not registered and 1% VAT not due
GST:
GST payable on whole agreement
Deduction of VAT and ST paid will be available
(Law interpretation can lead to alternate tax positions also) 1%
4.5%
5.5%
12-18%

20. Other relevant aspects
Other relevant aspects
Old taxes to be paid under new law as arrears and ITC would not be available on the same
Any amount refundable under old law:
Subject to incidence of tax not being passed on to consumer
Any proceeding relating to old laws will be completed in accordance with that law and:
Tax payable shall be recovered as arrears under new law (not admissible as ITC)
Refund be granted in cash as per old law
Any revision of return:
Additional credit be claimed as refund (provided revised return filed within due dates)
Goods/services supplied after GST date are taxable under new law (relating to contract entered before GST date

21. Challenges

22. Challenges in GST Implementation
Anti-profiteering
Pre-GST and Post-GST cost break up for products
Impact of additional credits vis-à-vis increase in compliance cost
Issues may come up during Audit by department
Classification
Composite/ Mixed/ Goods/ Services/ Works Contract
Working Capital Issues
Due to increase in tax rates (e.g. Service tax 15% to GST 18%)
Inter-state purchases/ stock transfers would be subject to full GST
Higher Compliance cost
RCM
All URD could be subject to RCM
Cash flow impact
Vendor master to be updated
Additional compliances like raising invoices, etc
Stock as on last day
Matching physical stock (value and quantity) with books and statement for GST

23. Challenges in GST Implementation
Transfer of Credits
Last return under old law
Excise credits – 40% scheme
Non-submission of forms – credit reduced to that extent
Reconciliation of credit – books v/s returns
Accounting/ Audits/ Technology
Small tax payers
Income tax returns filed under Section 44AD
Huge Quantum of compliance
Higher compliance cost
Finalization of tax/ vat audit for FY by June 2017

24. Thank you CA Sanket Shah +91 98201 21908 sanket215@yahoo.co.in
Disclaimer:
My comments are based on GST Act assented on 12th April 2017 and various updates (available in public domain)
This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. On any specific matter, reference should be made to the appropriate advisor.
This presentation is prepared and circulated for GST Course organized by Aurangabad Branch of WIRC of ICAI only