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GST India

Rajesh Sharma
8th. December, 2016
Contents

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GST Overview - history

In the year 2000 Vijpayee Government started discussion, for introduction of


GST, Committee set up under Asim Dasgupta (Finance Minter of West Bengal),
role of committee was design GST model as well as check IT preparation for
same.

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In his in budget speech of 2004-05, the then finance minister P .Chidambaram
says: In the medium-to-long term, it is my goal that the entire production-
distribution chain should be covered by a national VAT (value added tax), or
even better, a goods and services tax, encompassing both the centre and the
states.

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GST Overview - History

2010 Government launches mission mode for computerisation of Taxes, this


is foundation stone for GST.

2011 Congress introduces Constitution Amendment bill in Loksabha, main


opposition parties oppose (BJP & Left) bill sent to standing committee, ,

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finally bill lapses in year 2014.

2012 P. Chidambaram, has meeting with all state Finance Ministers to discuss
GST.

2013 Standing committee provides suggestion on Tax reforms and changes.

2015 Feb Jaitley announces implementation of GST, in year 2016,

2016 May- Government passes Constitutional Amendment bill.


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GST Area of impact

Tax Registration Define GST Registration Level

Master Data Maintenance Business Partner Tax Data, GST Accounts

Tax Configuration & Computation Configure Tax and Pricing procedures ; Tax
computation

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Document Numbering Outgoing Invoice Numbering

Business Process Localization Extend to currently localized Business Processes

GST Tax Postings GST Input and Output Tax postings

Utilization Input tax credit utilization against payable for GST


Taxes

Reporting Tax Register

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GST Present Status

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Digital Platform

Customers
Centre GST
State - GST
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GSTIN-GST Identification number
Single registration for CGST, SGST and IGST
Individual registration to be obtained in each state of business
GST Unique Number establishment
PAN based registration number Up to 15 characters in length
2 - Digit represents
State

Next 10 - Digit
represents PAN
Number

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15 digit number 13th. digit number
Consist of registration
number of assesse,

14th digit is Z, for all


number

15th. digit number is


correction number 7
GST Registration
1.All the taxpayers with PAN validated from CBDTs database are not required to apply for fresh
registration under GST. They can get provisional GSTIN from GST portal with a validity of 6
months so that they can provide relevant data as per GST registration form.

2.GST Registration has started in most of states.

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GST Concept

1. Consumption state to earn tax.


2. Manufacturing state will loose tax earnings.
3. States to be compensated for 5 years.

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4. Avoids Cascading effect of tax.

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GST Rates

The four GST slabs have been set at 5%, 12%, 18% and 28% for different items or
services.

To keep inflation in check, essential items including food, which at present


constitute roughly half of the consumer inflation basket, will be taxed at a zero
rate. The lowest rate of 5 per cent would apply to common use items.

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The peak rate of 28% will apply to luxury goods. Luxury cars, tobacco products
and aerated drinks will attract an additional cess on top of the highest tax rate.

The additional cess and a clean energy cess will create a revenue pool which will
be used to compensate states for any loss of revenue during the first five years of
the implementation of GST, Mr Jaitley said.

Service Tax will go up from 15% to 18 %, said Revenue Secretary Hasmukh


Adhia.
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Master Data Maintenance

Business Partner Tax Data


GST reg. no. to be captured for each Registered Customer and Vendor

GST Tax Accounts


Separate tax A/P and A/R accumulation might be required at GST registration level

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To be defined for CGST, SGST and IGST separately

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Vendor GST Registration

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Customer GST Registration

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Tax Account

Business Place based G/L account determination Both for MM and SD

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GST - Tax Configuration and Computation

Intra-state transactions
CGST and SGST applicable
Inter-state/Import transactions

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IGST applicable
Export Transactions
Zero rated
Region level rate variations may exist
New condition types/access sequences and account determination

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Tax Configuration and Computation- Proposed Solution

Tax Procedure New Condition Types

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Tax Configuration and Computation- Proposed Solution

SD Pricing Procedure New Condition Types

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Tax Configuration and Computation- Proposed Solution

SD Pricing Procedure Access Sequence

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Tax Configuration and Computation- Proposed Solution

MM Access Sequence

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Document Numbering

Unique sequential numbering for outgoing GST invoices


Criteria for legal numbering may be specified by govt.
It could be for example:
Registration level
Document type (Invoice / Credit Memo)
A combination of above

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Document Numbering-Proposed Solution

Maintain Document Class

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Assign Document class to Document Types

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Document Numbering-Proposed Solution

Assign Number Range to Business Place

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Business Process Localization

Sales Processes
Procurement Processes
Stock Transfers
Subcontracting
Others

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Sales Order
Sales - Proposed Solution

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Sales Order
Sales - Proposed Solution

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Billing Document (A/R)
Sales - Proposed Solution

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Billing Document (A/R)
Sales - Proposed Solution

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Billing Document (A/R)
Sales - Proposed Solution

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GST Credits

1. Liberal Credits
2. Credits on all bills
3. Uploads Necessary to claim credits

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GST Coverage - Subsumed

Subsumed:
Excise Duty
CVD, SAD

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Service Tax
VAT
CST
Entry Tax
Octroi
LBT

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GST Coverage - Excluded

Exculded:
Basic Customs Duty
Entertainment Tax

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Taxes at Municipal Level
Electricity Duty

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GST Issues

Old Wine in New Bottle


GST Staff
State and Central sharing.

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29 states and the two Union Territories with legislatures. Given the sharp
differences in the structure of the economy and sales tax revenue (as a ratio
of gross state domestic product, or GSDP) across states, the interests of the
states do not always coincide and considerable effort is needed to persuade
them to adopt a uniform or even a broadly harmonised structure and
administrative system for the tax.

Transitional period, accounting/ inventory/ set-off

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GST

Thank You

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GST Issues

Old Wine in New Bottle


GST Staff
State and Central sharing.

B2X Service Solutions India Pvt. Ltd. I Company confidential


29 states and the two Union Territories with legislatures. Given the sharp
differences in the structure of the economy and sales tax revenue (as a ratio
of gross state domestic product, or GSDP) across states, the interests of the
states do not always coincide and considerable effort is needed to persuade
them to adopt a uniform or even a broadly harmonised structure and
administrative system for the tax.

Transitional period, accounting/ inventory/ set-off

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