1. Worldview of GST France was the first country to implement GST in 1954
Since then 160 countries have implemented GST

2. GST TIMELINE 2009 2014 2016 2006 2011 2015 My First Template
Power Shift
The constitutional Amendment bill lapses with dissolution of loksabha. Revised bill introduced by Arun Jaitley
Upper House Decides
Rajya Sabha Passes the bill
EGoM report
First discussion paper released by empowered committee
2009
2014
2016
2006
2011
2015
The proposal
Finance minister in his budget speech proposes moving towards GST & sets deadline for 1st April 2010
Amendment Bill
The constitutional Amendment bill for rolling out GST introduced by UPA in Lok Sabha
Lower House decides
Lok Sabha Passes the GST Bill

3. Sectoral fallout from implementation of GST
My First Template
Sectoral fallout from implementation of GST
Entertainment and media
FMCG
Subsuming entertainment duty (other than levied by local municipalities) and luxury tax would positively impact media and entertainment and hospitality sectors. Taxability of restaurant supplies as a service is a welcome move and should reduce consumers’ bills. Broadcasting agencies and DTH operators could face challenges in determining place of supply. Clarity is required on the taxability of video streaming services by an offshore entity.
FMCG sector could gain from reduced tax rates, efficient credit mechanism and elimination of entry tax. However, cash flow would be impacted due to leviability of GST on stock transfers. GST on free supplies would adversely impact marketing schemes. Subsidies linked to supplies would also attract GST.
Client Number 03
Automobile
Subsuming all central and state cesses into GST will be a welcome relief for the automobile sector which is subjected to multiple cesses. Uniform classification and tax rates under GST will do away with the need to register a vehicle in one state for tax savings and using it in another. Removal of 1% additional tax on inter-state supplies from the bill is good for the sector. Luxury cars could be taxed at a higher rate.

4. Sectoral fallout from implementation of GST
My First Template
Sectoral fallout from implementation of GST
Information Technology
Pharma
Refund claims of input tax credit pertaining to pre-GST era exports which are denied by tax officers either fully or partly after introduction of GST may lapse. While upfront exemption to SEZ units will be replaced with a refund model, companies having Software Technology Parks of India units need to evaluate the export scheme.
While MRP based valuation has been done away with, new valuation mechanisms could pose a challenge for this sector. The sector needs to seriously assess its supply chain, tolling arrangements and pricing, in light of the model GST law
E-Commerce
Rolling of entry tax into GST is a major relief for e-commerce players who have been facing significant challenges in various states. E-commerce players will be burdened with additional compliance of tax collection at source.

5. Sectoral fallout from implementation of GST
My First Template
Sectoral fallout from implementation of GST
Banking and Financial Services
Telecom
Tracking of exempted supplies under GST is imperative to make sure that interest income, sale of securities and other similar financial transactions continue to be exempted under GST.
\The rate of tax for telecom services is likely to be increased from present 15% which would directly impact consumers. There is no mechanism to carry forward Central Value Added Tax (CENVAT) credit relating to spectrum charges, when it has not been totally availed of prior to introduction of the GST.
Client Number 03
Aviation
Flying could become more expensive with increase in rate of tax from the current 6% to 9%. Ticketing systems would need to be realigned on account of changes in place of supply of passenger transportation services.

6. GST – Its impact on transportation and logistics
My First Template
GST – Its impact on transportation and logistics
Rationally Structured Services
Impact on Railways
Distribution and warehousing services will be rationally structured and centralized
Logistics costs will reduce
Customer benefits will increase
Better margins
High tonnage trucks will result in cost savings over time because of Bigger warehouses and demand boost
Railways are currently exempt from interstate check posts
So there will be minimal impact on the railways
Client Number 03
The procurement of raw materials
Movement of goods would become less difficult
Opportunities for more suppliers /vendors to merge
A favorable environment for a supply chain
Transit Inventory would reduce and hence in turn the working capital requirement

7. GST – Its impact on transportation and logistics
My First Template
GST – Its impact on transportation and logistics
Improvement of Delivery Process
High Rail-Road Utilization
Improvement of delivery process
Cut down on transport hassle
Reduced distribution costs by 10-15%
Thus reducing the final price of goods.
Seamless inter-state movement of goods.
Higher truck utilization and accelerated demand for logistics services
Client Number 03
Easier Tax Compliance
Abolishment of entry tax and easier tax compliance procedures
At least 5-7 hours of transit time will be saved for interstate transport of goods

8. GST- Impact on Warehousing Industry
Origin-based tax structure to a destination-based tax structure
Current Scenario
Current Warehouse Strategy
Companies design supply chain to take benefit / reduce operational cost, based on the prevailing tax structure.
Area based tax incentive(SEZ), non-refundable input taxes, are huge roadblocks to reach optimum operational efficiency.
Companies open warehouses in every state and do stock transfers to avoid paying CST
Distributor has to depend on the product available on the warehouse located in their states rather than getting it from the firm in another state as that will take longer time and cost.
Implications of GST
Benefits for Larger Warehouses
GST would eliminate the existing penalties on interstate sales transactions and facilitate consolidation of vendors and suppliers.
This will result in a reduction in the number of warehouses, reduce capital deployed in the business, improved efficiencies, better control and reduction in inventory due to lesser numbers of stocking points and cases of stock outs.
Larger warehouses can benefit from technological sophistication by deploying state-of-the-art planning and warehousing systems which are not feasible in smaller, scattered warehouses.
At the same time IT costs of having ERPs deployed at many small warehouses can be saved.

9. A Typical Tax Scenario in Manufacturing Sector
GST – Proposed Tax Model

10. Major Challenges My First Template Arriving at a consensus on tax rate
Lowering exemption levels for traders
Power game between state & centre
Information Technology to be implemented
States lack expertise in collecting tax on services
Compliance obligations will rise sharply
Realign supply chain,100% filing of tax return

11. Today, a service provider with operations, say in 20 states, can obtain a single centralized service tax registration, whereas under GST, separate registrations may have to be obtained in each of the 20 states. A service provider who would currently be filing only three service tax returns a year would have to file four or five returns per state per month, which amounts to about 100 returns per month,
A manufacturer with two factories and operations in 20 states would have 23 registrations currently (two excise, 20 value-added tax, or VAT, and one service tax) whereas under GST the number of registrations would go down to 20 (1 for each of the 20 states). But the number of returns would increase from 22 on a monthly basis (two excise returns and 20 VAT returns) and a service tax return on a half-yearly basis to about 100 returns per month after the switch to GST (four to five returns per month per registration).
Today, a service provider with operations, say in 20 states, can obtain a single centralized service tax registration, whereas under GST, separate registrations may have to be obtained in each of the 20 states. A service provider who would currently be filing only three service tax returns a year would have to file four or five returns per state per month, which amounts to about 100 returns per month, after the transition to GST
A manufacturer with two factories and operations in 20 states would have 23 registrations currently (two excise, 20 value-added tax, or VAT, and one service tax) whereas under GST the number of registrations would go down to 20 (1 for each of the 20 states). But the number of returns would increase from 22 on a monthly basis (two excise returns and 20 VAT returns) and a service tax return on a half-yearly basis to about 100 returns per month after the switch to GST (four to five returns per month per registration).
Additionally, under current law, purchase-sale reconciliation is necessary only for credits under the VAT law of a few states; excise and service tax laws do not require any such reconciliation. However, under GST, taxpayers would have to reconcile their procurement with the sales of their vendors and supply of goods/services with their purchasers on a monthly basis in order to avoid denial of input tax credit and imposition of tax liability.
Also, while GST paid on procurements will be available as credit against output GST liability, separate credit pools for three different types of GST (Integrated GST, Central GST and State GST) would have to be maintained for each state. To be precise, a company operating in 20 different states would have to maintain 60 different credit pools and 60 different output tax accounts under the GST regime, as against 23 credit pools and 23 output tax accounts under the current regime.
While the increased compliances would bring greater transparency and result in a positive impact on the economy, the industry would need to set in place appropriate processes and ERP systems to handle the change and be GST-ready.