CIRCULAR TO ALL BRANCHES/OFFICES IN INDIA

BCC:BR:109/296 17.06.2017

Dear Sir/Madam,

Re: Goods and Service Tax - Introduction

Goods and Service tax, commonly known as GST, is an indirect tax regime which is set to
be levied on manufacture, sale and consumption of goods as well as services at a National
level.

The Government of India has notified July 1, 2017 as the appointed day for implementation
of GST. The rates for services have also been notified by the government

The GST regime is all set to put an end to multiple taxes like Excise, VAT, Service Tax,
Luxury Tax, Entertainment Tax, Octroi etc. which are levied on different products and
services by both Central and State Government today.

GST is a dual taxation regime, where the taxes are levied on the basis of place of
consumption/destination. There are three elements of tax under GST:

a. Central Goods and Service Tax (CGST) : This would become part of revenue of the
Central Government
b. State/Union Territory Goods and Service Tax (SGST/UTGST): This would form part
of revenue for State/Union Territory Government
c. Integrated Goods and Service Tax (IGST): This would initially go to the Central
Government and then will be distributed to the State/UT governments.

Determination of levy of GST

The determination of which element of GST would be levied on the particular transaction is
based on the location of supplier of services and on the location of receiver of those
services.

1. If the supply of services is within the state then the CGST and SGST/UTGST would
be levied.
2. On the other hand if the supply of services isoutside the state, then the IGSTwould
be levied.

Rates under GST

1. The GST council have finalised a four tier GST tax structure of 5%, 12%, 18% and
28%, with the lower rates for essential items and the highest rates for luxury and de-
merit goods including luxury cars, tobacco etc.
 2. The services which are provided by our bank is falling under the category of 18%, i.e.
our bank would be charging an additional 18% from the customer on the charges
levied for providing services.
3. At present we are charging 15% as service tax but now from July 2017 onwards,
18% GST would be charged. However, interest and discounts are exempted from
GST as hitherto under Service Tax.
4. In the cases where CGST and SGST is levied, the rate of tax remains constant at
18% for our services, but the same will be bifurcated into 9% each for CGST and
SGST, wherever applicable.

Registration under GST

1. Under the GST regime, our bank is required to migrate the existing registrations
under Vat & Service to GST network. Therefore, for the purpose of GST, our Bank
will possess 36 registrations (one for each state and Union Territory) and each
registration in respective state and union territorywill be treated as a different entity
for the purpose of Inter branch transaction and transfers.
Therefore, the transactions between different branches/offices located in two different
states also falls under the purview of GST.
2. The process of migration have already commenced at the corporate office level and
we are under the process of getting our Bank registered to GST. The registration
number in different states and Union Territories will be communicated to branches /
offices once the same are available.
3. Branches / Offices are not required to get themselves registered or migrated to
GSTN portal on their own. In case any branch/office have got their VAT
registration migrated to GST network, the same must be communicated to us
immediately. (For contact details, please refer last page of this circular)

Challenges for our Bank

The bank has to make a handful of changes in IT systems and business processes in order
to be compliant with GST. Bankis required to:

1. Obtain state wise registration for the branches/offices in respective states

2. Make essential changes in IT system to capture GST related information of the
customers as well as vendors.
3. To streamline several business processes in order to be compliant with GST
4. To upload the necessary details on a monthly basis in order to avail the input credit
and filing of 1800+ returns as against 2 returns filed under current regime.
5. To identify the transactions between the bank and its related parties/distinct persons
(including employees) and pay GST accordingly as per the rules identified in this
behalf.
 6. To identify and record inter branch transactions and generate invoices for the same
and pay GST accordingly.
7. To collect the details of our vendors so as to create the vendor master in the system
and enable the smooth flow of credit to our bank.

Banks Preparedness
1. Centralised GST Cell has been formed at Corporate Office level within the Corporate
Accounts & Taxation Deptt., which is entrusted with the task of GST implementation
and compliance activities.
2. The GST cell hasalready started the process of obtaining registrations under all the
states with GST portal which is required for remitting the taxes and other compliance
purpose.
3. Necessary changes which are required in the core CBS system are also being
initiated by our IT Deptt, BCC.
4. The filing of state wise returns will be taken care of by the GST cell centrally.
5. The changes in IT systems are being made after careful analysis and the same will
be informed to branches/offices as and when ready for deploying.

Immediate Action Point for Branches

a) Payment of Services availed by branches

1. At present, under Service Tax, our bank gets 50% credit of Service Tax paid to
vendors for providing various services. This credit is used as a set off against the
service tax liability of bank. As per the rules issued by government, our bank is
eligible for credit on service tax paid till 30.06.2017.
2. In GST regime, the GST rates for majority of services is going to be 18%. Therefore,
branches are advised to urge all the vendors to raise a service tax invoice for their
payment dues and clear out the pending dues of vendors before 25.06.2017 in order
to make available the eligible credit.
3. The charges which are recurring in nature must be paid before 30.06.2017 using the
SERPAY menu. No service tax would be paid without authorization from our
department w.e.f 01.07.2017.

b) Updation of Customers / Borrower Master

1. As stated above, Bank would charge GST on various charges received from
Customers, which in turn would be available as input credit to the our Customer /
Borrower. To enable them to avail credit, the details of the Customers / Borrower
GST registration is required to be entered in the system.
A separate menu option is being developed. Branches/offices will be advised once
the same is made accessible. However, Branch may start approaching Borrower /
Customer to submit the GST details in the format enclosed with the circular.
It is advised that all the compliances are being undertaken centrally and the branches are
only required to follow the transactional level guidelines issued by our department from time
to time.

The branches/offices will be advised the accounting and practical aspects of GST and the
changes in CBS once the same is ready. In case of any query regarding migration to GST
you may kindly contact on 022-66985260,5295 or mail us at gst.bcc@bankofbaroda.co.in.

Sanjay Kumar
General Manager
(SP & PB) & CFO
 Customer Information Updation Form

Particulars Customer's Information

Customer name
(Legal Entity Name)
PAN
Total no of GST Registrations Obtained (pan
India)
GSTIN/ UIN/ Provisional ID (all the
registrations to be provided)
Address (Separate Address with each
registration is to be provided)
Customer Type (Select any one of the types General, Government,
from the corresponding field) Overseas, SEZ and Others.
(Select Any 1)
 Bank of Baroda

Sr No. State Name State Code GST registered address State GSTIN / Provisional ID
1 Andaman and Nicobar 35
2 Andhra Pradesh 37
3 Arunachal Pradesh 12
4 Assam 18
5 Bihar 10
6 Chandigarh 04
7 Chhattisgarh 22
8 Dadra and Nagar Haveli 26
9 Daman and Diu 25
10 Delhi 07
11 Goa 30
12 Gujarat 24
13 Haryana 06
14 Himachal Pradesh 02
15 Jammu and Kashmir 01
16 Jharkhand 20
17 Karnataka 29
18 Kerala 32
19 Lakshadweep 31
20 Madhya Pradesh 23
21 Maharashtra 27
22 Manipur 14
23 Meghalaya 17
24 Mizoram 15
25 Nagaland 13
26 Orissa 21
27 Pondichery 34
28 Punjab 03
29 Rajasthan 08
30 Sikkim 11
31 Tamilnadu 33
32 Telangana 36
33 Tripura 16
34 Uttar Pradesh 09
35 Uttarakhand 05
36 West Bengal 19
A copy of acknowledgement in relation to Application Reference Number generated is enclosed herewith