Copyright (c) 2017. Lakshmikumaran & Sridharan
Goods and Services Tax
An Overview
NEW DELHI-MUMBAI - BENGALURU - CHENNAI - HYDERABAD - AHMEDABAD – PUNE KOLKATA - CHANDIGARH - GURGAON – ALLAHABAD – GENEVA - LONDON
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Taxes to be subsumed under GST
Central Levies
Central excise duty
Additional excise duties
ED under the Medicinal & Toiletries
Preparation Act
Service tax
Additional Customs Duty s(CVD)
Special additional duty (SAD)
Surcharges and cesses relating to
supply of goods and services.
State Levies
VAT/Sales tax
Central Sales Tax (CST)
Entertainment tax (other than levied by
local bodies)
Octroi and Entry tax
Purchase tax
Luxury tax
Taxes on lottery, betting, gambling
State surcharges, cesses relating to
supply of goods and services
GST
CGST SGST IGST
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Registration
No centralized Registration
One Registration in each State
Section 10 of the Revised Model GST Law :Taxable person
Taxable Person means a person who is registered or liable to be registered
under Schedule V
Schedule V - Liability to be Registered : Every supplier shall be liable to be
registered under this Act in the State from where he makes a taxable supply of
goods and/or services.
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Taxable Event – Supply
Specific Inclusive Clauses
Supplies for consideration
Supplies without consideration (Schedule I)
Deemed supply of goods / deemed supply of services (Schedule II)
Section 3 (1)(a) of the Model GST Law (1) Supply includes
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.
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Place of Supply : Local / Inter-State
Situation Place of Supply
Inter-State Supplies (Leviable to
IGST)
Intra-State Supplies (Leviable to
CGST / SGST)
If location of supplier and place of supply are in
different States.
If location of supplier and place of supply are in
same State.
Import of services/goods
Export of services/goods
Deemed to be inter-State supply of goods and
services
Export is zero rated
Concept of deemed export present
SEZ
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Place of Supply of Goods
Situations Place of Supply
When movement of goods involved Location of goods at the time
movement terminates for delivery
When movement of goods not involved Location of goods at the time of
delivery
Where the goods are delivered by the supplier to a
recipient or any other person, on the direction of a
third person
Place of supply of such goods shall
be the principal place of business
of third person
Goods supplied on board a conveyance
Place where goods taken on board
When goods assembled or installed at site Place of installation or assembly
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Input Tax Credit
Indian GST regime proposes to provide Input Tax Credit or ITC on goods and services which are used in the course or furtherance of business except those specified as not eligible
Cross utilization of ITC allowed except CGST not permitted to be utilized for payment of SGST and vice versa
Model Law on GST provides for matching concept
Copyright (c) 2017. Lakshmikumaran & Sridharan
Migration of existing taxpayers
Procedure
All Taxpayers in current regime liable to get registered under GST regime
Provisional registration certificate for 6 months
Final registration on furnishing information
Provisional registration to be cancelled if no information furnished in 6 months
Person can apply for cancellation of provisional registration
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Credit carry forward
CENVAT credit/ input tax credit
balance reported in return
balance of capital goods not reported in return
goods lying with agent
capital goods lying with agent
Transitional
Credit
Excise
Service
Tax
VAT
GST
Transitional Credit - Eligibility
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Anti-Profiteering measure
Central Government may by law constitute an Authority or entrust an existing authority constituted under any existing law, to examine whether input tax credits availed by any registered taxable person or the reduction in the price on account of any reduction in the tax rate have actually resulted in a commensurate reduction in the price of the said goods and/or services supplied by him
Copyright (c) 2017. Lakshmikumaran & Sridharan
Returns and Ledgers
Return/ Ledger
For To Be Filed By
GSTR–1 Outward supplies made by the Taxpayer 10th of the next month
GSTR–2 Inward supplies received by the Taxpayer 15th of the next month
GSTR–3 Monthly Return 20th of the next month
GSTR–9 Annual Return 31st December of the next Financial Year
ITC Ledger of the Taxpayer Continuous
Cash Ledger of the Taxpayer Continuous
Tax Ledger of the Taxpayer Continuous
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The Way Forward
• Analyzing the impact based on Model GST Law
• Devising new business models for more efficient
shift to GST regime
• GST compliant Accounting and IT solutions
• Managing transition
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L&S GST Support
GST Handholding - Advice on transitional provisions, Assistance in ERP implementation, Dispute resolution and representational services on implementation of GST
GST Advisory - Assessing GST readiness and providing innovative solutions, Impact Study, re-design of supply chain
Contract Review - Review contracts to ensure GST does not become cost and minimize dispute exposure.
GST Compliance Review - Comprehensive health checkup to identify risk and opportunities
GST Training – GST training for in-house personnel and supply chain partners