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Passage of the Constitutional Amendment Bill for GST in the upper house of the
parliament is not an overnight success story of the Biggest Tax reform of the
Country.
GST bill has gone through many ups and downs thought-out the Journey since the
first discussion in the report of Kelkar Task Force on Indirect Taxes.
 The Journey is not over yet..

The Constitutional At least 50% of the state

Now Lok Sabha will have to clear
Amendment Bill has been assemblies (15) have to pass the
the amendments in the Bill Okayed
Passed in the upper House of Constitution amendment bill with
by RS
the Parliament two thirds majority

After this the Bill will be sent for

Presidential Assent.

Union FM must start negotiation

Government is hopeful to bring The Sates have to pass their own with the empowered committee of
GST & IGST Bill in Winter Session. GST Laws. State FMs to arrive at a consensus
on GST Rate.
 About GST

Goods and service tax (GST) is a comprehensive tax on domestic consumption levied on
manufacture, sale and consumption of goods & services at a national level.
GST shall be based on destination principle i.e. the end consumer has to bear this tax and so, in
many respects, GST is like a last-point retain tax.
To avoid cascading effect, tax is paid on only on the value addition at each stage.

CGST
Levied by the Centre
INTRA STATE
SGST
DUAL GST Levied by the State
MODEL
IGST
INTER - STATE Covering Inter state
transactions
 Provisions of Model GST Law discussed in Brief

Whole of India excluding the

Extent of the Act
State of J&K

Levy and collection of Central/ State Goods and Service Tax

GST on supplies in course of Inter

Central/ State GST shall be levied
state trade shall be levied and
on all the Intra State Supplies of
collected by Government and such
goods and services at the rate
shall be apportioned between
specified in Schedule
Union and state
 Aggregate Turnover in a year < INR 50 Lakh Opt for composition @ at least
Composition Levy
1% of turnover

Registration - Aggregate Turnover in a year > INR 9 Lakh

Tax Liability - Aggregate Turnover > INR 10 Lakh
Threshold limit for
Registration and Tax
Payment
North Eastern States
Registration - Aggregate Turnover in a year > INR 4Lakh
Tax Liability - Aggregate Turnover > INR 5 Lakh

CGST CGST IGST

Input Tax Credit SGST SGST IGST

IGST IGST CGST SGST

 Tax CG or SG may mandate Specified Persons to deduct Tax at Source @1% if
Deducted Total Value of Notified Goods/services exceeds Rs. 10 Lakh
at Source

Every E Commerce operator engaged in supply of goods/ services required to collect

TCS at the time of credit or payment whichever is earlier.
Tax
Collection Operator to furnish a statement of all the amounts collected within 10 days after the
at Source end of month

Refund of tax and interest by making an application before expiry of 2 years from relevant
date.
Refund available under following cases
Taxpayer is engaged in exports
Refunds Taxpayer unable to utilize credit on account of rate of tax on inputs higher than rate of tax
on output

Refund Order to be issued within 90 days of receipt of application

Provisional refund for export 80% of amount so claimed excluding ITC
- 20% after due verification of documents
 Returns
Registered taxable person to file electronically monthly return within 20 days from
Monthly Returns
the end of such month

Composition Levy Registered taxable person to file electronically quarterly return within 18 days from
the end of such quarter

TDS Return Dealer to file electronically monthly return within 10 days from the end of such
month

Input Service ISD to file electronically monthly return within 13 days from the end of such month
Distributor

Dealer shall have to furnish first return from the date of registration till the end of the
First Return
month in which registration is granted

Annual Return Dealer to file electronically annual return before 31 December following the end of
such F.Y

Final Return Dealer applies for cancellation of registration, shall furnish a final return within 3
months of date of cancellation or date of cancellation order which ever is later
PAYMENT OF TAX, INTEREST, PENALTY & OTHER AMOUNTS

Deposit Made towards Tax,

Through Internet Banking, Credit to Electronic
interest, Penalty & other
credit/debit cards, NEFT or RTGS Cash Ledger
amount

Self Assessed Credit to Electronic

Input Tax Credit Credit Ledger

TAX
Electronic Cash Ledger
INTEREST

PENALTY

Electronic Credit Ledger FEE

Any other amount

PAYMENT OF TAX, INTEREST, PENALTY & OTHER AMOUNTS

Common Portal
means the common GST
electronic portal approved by
the CG and SG, on the
recommendation of the Council,
for the specified purposes, as
may be notified

Electronic Credit Ledger

Electronic Cash Ledger
means the input tax credit
means the cash ledger in
ledger in electronic form
electronic form maintained at
maintained at the common
the common portal for each
portal for each registered
registered taxable person in
taxable person in the manner
the manner as may be
as may be prescribed in this
prescribed in this behalf;
behalf;
 Transitional provisional

Transfer of unutilized CENVAT credit and VAT input credit to be availed subject to following

Amount of such credit shall be shown as carry forward

Credit shall be availed under earlier law as well as GST law.

CENVAT Credit already unavailed on Capital Goods shall be allowed under situations as prescribed

Each and every person registered under any earlier law shall be issued a certificate on provisional basis - Validity 6 Months
 A direct beneficiary under new system.

Tax Compliance Reduced.

Reduction in transit time.

Benefit transporter and manufacturer.

Interstate trade barriers will be reduced.

 At least 8% reduction in tax rates expected.

On road Vehicle cost expected to drop.

Margin of manufacturer may expand.

Logistic hurdles to be minimized.

 Saving 30% of logistics Cost.

Reduced inter state barrier and compliances.

Average indirect tax to reduce to proposed 18%

from current average of 25%.

Lower price to consumer.

 Increase in tax rate.

Increased working capital requirement.

Opportunity of more business as impact

of growth in other industry.

Eliminate multiple levies.

 Uniform market in India

Taxation system at par with international standard.

Free movement of supply.

Reduced state-specific rigmarole.

Ease in compliances.
 Initial Cost to Change in Rate of Impact of Input Tax
Organization in Tax to hit liquidity and their credit to
response to change directly affect Working
Capital

Higher rate (18%) is

Cost of training personnel If GST Rate exceeds
Proposed. present applicable rates

Cost of refresh IT set up Low input available against output

Higher output tax rate liability affects liquidity.
means low liquidity till
recovery.
Indirect Tax impact
analysis
Higher rate than current If present applicable Rate
Restructured accounting tax means lower margin exceeds GST rates, positive
and reporting available for business if impact on liquidity.
price is unchanged
 When India is looking forward towards the Biggest Tax reform(GST Bill),
Implementation of the same is going to be a cumbersome task for both the business
entities and immense support of professionals will be required.
Information Technology will have a very Important role to play to cope with the
issues that may arise with the enactment of the GST Act.
 Information Technology

At
At Governments End Taxpayers/Professional
End

Why Government Needs Why

IT Infrastructure? Taxpayer/professional
Needs IT Infrastructure?
 Why Government Needs IT Infrastructure?

The Government is looking forward to be Tech savvy and will require strong IT
enabled services to deal with the following:
- Control & administration of flow of credit
- Online Registration Mechanism.
- Online Return Filing.
- Online Refund Claims.
- Other process like Issuing of Notice, acceptance of records, etc. are also expected
to be automated.
- Cross verification of data furnished under GST regime i.e CGST, SGST or IGST.
 Why Taxpayer/professionals Needs IT Infrastructure?

Since the Government has decided to go for Automation, the Taxpayer cannot be
spared. It will have to make necessary adjustment accordingly.
Benefits of robust IT infrastructure:
- Ease of procedural aspect like registration, amendment in registration etc.
- Simplified procedure for Return Filing, Payment of taxes, filing of refund claims.
- Reduced departmental visits.
 What Changes are expected for organizations?

Upgrade the Organize training

Existing Software. for the Employees

Update Master Data (TIN

Taxes to be segregated as : Ask employees to attend
will be replaced with
- CGST seminars.
GSTIN)
- SGST
- IGST
Major Tax transactions are
to be adjusted in Internal Training to be
Data required for reporting accordance with conducted.
or return filling will undergo CGST/SGST/IGST
change.

Financial Data shall

Incorporate all elements of
Regular updation till
GST , GST
implementation.
recoverable/payable,
recovered but not paid etc
 ASC EXPERTISE

All India Other Indirect

Excise Service Tax
VAT Tax Services.

Registration in every Registration & Return Registration & Return - Registration &
state. Filling Filling Return Filling for
Professional Tax,
Entry Tax,
Return Filling & Consultancy Regarding
Import/Export - SAD Refund, etc.
Issuance of Statutory applicability of ST on a
Documentations
Forms particular transaction

Representation in Representation in Audit Representation in Audit

Assessment & Appeals & Appeals & Appeals

Day to day consultancy. Day to day consultancy. Service Tax Refund.

WHAT ASC IS DOING REGARDING GST ?

IT Support

GST
Impact
Analysis

Post GST
Implementation,
Documentation,
Or record Keeping.
 GST Impact Analysis

The Indirect Tax Division at ASC is full of Experienced People and is all set to conducted GST Impact
Analysis for their clients. There are certain common queries that has been received and handled quite
comfortably by our team from various clients. The team will also be conducting Working capital analysis for
their clients. The team is looking forward to serve you.

Following
questions Will it not
What will be arises involve new
the nature of language and
Taxable terminology?
Event?

Will Taxable
What impact At what point Event covers
the change in of time, the tax both i.e. supply
Taxable Event will be levied? of goods and
can have? rendering of
services?
 IT Support

ASC group will provides a set of principles that government wants to see incorporated in the development
of accounting software.
ASC is working on GST return preparation software which will allow users to easily obtain the necessary
information required for periodic filing of GST tax returns. For example, the software will be able to
generate report containing all the data elements required for the GST electronic submission.

Dedicated IT
Support Team

IT Restructuring Data Migration

 Post GST Implementation /Documentation/Record keeping

GST-registered Taxable person must keep proper business and accounting records for a period of 60
Months.
ASC will look forward for proper documentation and record keeping in Manual and Electronic form.

Manual
Manual record keeping is the recording of your business transactions in a physical form. Examples of
manual records are record books, receipts and physical invoices. Business transactions must be supported by
source documents such as invoices / receipts from your suppliers, and carbon / duplicate copies of invoices /
receipts issued to your customers.

Electronic
Records can be kept electronically using a computer and / or accounting software. This includes using
Microsoft Office applications, off-the-shelf accounting software and customized accounting software.
Physical copies of source documents need not be kept to substantiate your business transactions if the source
documents are kept electronically.
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