Goods&ServiceTax(GST)

AMetamorphic
Reform

3May,2017 1
 Contents
3May,2017 2
Contents

01 Current Regime of Indirect 05 Progress So Far

Taxes

02 GST - Salient Features and 06 Key Impact Areas

Advantages

03 Broad Structure 07 Next Steps

04 GST Act 08 Approach Towards GST

3May,2017 3
 CurrentRegimeofIndirectTaxes
3May,2017 4
GST Whysomuchtalk

MostsignificanttaxreforminIndianhistory
Beingtransactiontaxwillimpacteachcommercial/businessactivity
Government,businesscommunityaswellascommonman
Stakeholders
Taxadministrationtoundergosignificantchangeincludingfunctional
Indirecttaxtobesimple,stableandpredictable(hopefully!)

GST OneCountry,OneTax,OneMarket
3May,2017 5
CurrentRegimeofIndirectTaxes
ConstitutionofIndiaincorporatedFederalStructure
SubjectofTaxlevydividedbetweenCentreandState
ListI UnionList TaxleviedbyCentralGovernment
CustomsDuty ExciseDuty ServiceTax CST R&DCess
Central
Import/Exportof Manufacturing Provisionof Interstatesale
Levies Import/Exportof
Goods
Goods
Manufacturingof
Goods
ofGoods
ProvisionofServices
Services
Interstatesaleof
Goods
ofGoods
Importof
Technology

ListII StateList TaxleviedbyStateGovernment

VAT EntryTax Octroi/LBT ET LuxuryTax
State
Levies IntraStateSaleof
Goods
GoodsEntryinState
GoodsEntryatLocal
Limit
Entertainment
Services Specifiedactivities

IssuesinCurrentRegimeofIndirectTaxes
Complextaxstructure Multiplicityofrateoftaxesandvaluationissues
Cascadingoftaxesatvariouslevels Burdenedwithcompliances
Complexityindeterminingnatureoftransaction Complexitiesinadministrationandhighercost
Lackofuniformityinprovisions ofcompliances
CST CentralSalesTax R &D Cess Researchand VAT ValueAddedTax ET EntertainmentTax LBT LocalBodyTax
DevelopmentCess

3May,2017 6
GST SALIENTFEATURESANDADVANTAGES
3May,2017 7
GST SalientFeaturesandAdvantages
GST SalientFeatures
BasedonPrincipleofValueAddedtaxleviedandcollectedateachstage

Destinationbasedconsumptiontax,levied&collectedbyconsumingstate

ComprehensivelevyonGoodsandServices

GST Advantages
Abolitionofmultiplelevyoftaxongoodsandservices

Enhancesmanufacturing/distribution/serviceefficiency

IncreaseincompetitiveedgeinInternationalMarket

Facilitatestrade/investmentdecisionspurelyoneconomicconcerns

Reductionincompliance/litigationandincreaseinvoluntarycompliances

3May,2017 8
 BROADSTRUCTURE
3May,2017 9
BroadStructure
DualGSTforLocaltransactionCentre(CGST)andStates(SGST),
andforinterstatetransactions(IGST)
Framework Separatelegislation,levy&administration
PlaceofSupplyRulesfordeterminingsitusofgoods/services

AllGoodsandServices subjectedtoGSTwithfewexceptions
Coverage ImmovablepropertytobeoutofGST(clarityrequired)
Petroleum,Alcohol,Electricity,Propertytax,LocalET tocontinue

Ratesproposed,finalconsensusonclassificationpending
Rate Concessionalrateforselectgoods(services nothingproposed)?
Structure FreecreditflowExceptnocreditsetoffbetweenCGSTandSGST

3May,2017 10
 GSTAct
3May,2017 11
GSTAct

Supply TransactionsType
Goods/Services/ PlaceofSupply
Meaning&Scope Composite

TimeofSupply ValuationRules InputTaxCredit

Registration/
Transitional
ECommerce Returns/Payments
Provisions
/Refund

3May,2017 12
GSTAct
MeaningofSupply meansandincludes
Sale Barter Transfer Exchange License Rental Lease Disposal

Importofservice
foraconsiderationwhetherornotinthecourseorfurtheranceofbusiness

Supplywithoutconsideration(DeemedSupply)
Permanenttransfer/disposalof Supplybetweenrelated Transactionsbetweenprincipal ImportofServicefromrelated
businessassetswhereinput persons/distinctpersonsin andagent person/anyofitsestablishments
credithasbeenavailed courseorfurtheranceofbusiness outsideIndia

3May,2017 13
GSTAct
GOODS
Transferintitleingoods
Supplyofgoodsbybodyof
associationtomembers
Transferofbusinessassets
exceptforprivateusewithor
withoutconsideration
3May,2017
SERVICES
Transferofgoodswithout
transferintitlethereof
Treatmentorprocessappliedto
anotherpersonsgoods
Transferofbusinessassetsfor
privateuse
Lease,tenancy,licensetooccupy
landandLeaseorlettingoutof
commercial/residentialbuilding
Declaredlistofservice
14
GSTAct
VALUATIONOFSUPPLY GSTVALUATIONRULES,2017
KeyTakeaways:
Rule1 Valuewhereconsiderationnotwhollyinmonetaryterms
Transactionvalueto
beacceptedsubjectto
theconditionsthat:
Partiesareunrelated
Rule2 andPriceisnotsole
Rule3 Rule4
Relatedpersonsother consideration
SupplythroughAgents CostPlusmethod
thanagents
Transactionvalueto
beacceptedin
followingscenarios

1.RPT wherethe
priceisnotinfluenced
Rule5 ResidualMethod 2.Goodstransferred
fromoneplaceof
businesstoanother
3.Principaltoagentor
Rule6 Specialcases viceversa

3May,2017 15
 GSTAct
TIMEOFSUPPLY Goods/Services
NormalSupply Earliestdateof: IncaseofVouchers Dateof:
1. Issueofinvoiceorlastdatebywhichinvoiceistobeissued 1. Issueofvoucherifsupplyisidentifiableatthatpointoftime
2. Incaseofservice,dateofprovisionofservice 2. Redemptionofvoucher,inallothercases
3. Receiptofpayment
IncaseofexcessamountreceiveduptoINR1,000beyondinvoiced,
timeofsupplyatoptionoftaxablepersonsupplyinggoods/services
Reversecharge Earliestdateof: Notdeterminable:
1. Receiptofgoods 1. Dateonwhichperiodicalreturnisrequiredtobefiled
2. Payment 2. Othercases CGST/SGSTispaid
3. AfterissuanceofInvoice Goods(30days)andServices(60days)
Ifcannotbedeterminedabove,datewouldbeentrymadeinbooks

PLACEOFSUPPLY GOODS PLACEOFSUPPLY SERVICES

Locationof GeneralProvision RegisteredDealer LocationofSuchPerson
1. Wherethemovementterminatesfordeliverytotherecipient Other Recipient,ifAddressonRecord,or
2. Thirdperson wheregoodsaredeliveredtorecipientorany SupplierofService
otherperson, LocationBased ImmovableProperty orboatorvessel
3. Wheresupplydoesnotinvolvemovement,locationofgoodsat
thetimeofdeliverytotherecipient PerformanceBased Events,PersonalCare,Restaurantetc.
4. Assemblingorinstallation OtherServices Telecommunications Insurance
5. Goodstakenonboard SpecificProvisions CourierService Training
6. Otherscase tobeprescribed available BankingandFinancial Services
7. Import LocationofImporter/Export LocationoutsideIndia TransportationGoods/ Board
Passenger Conveyance

3May,2017 16
GSTAct
ASSESSMENTPROCEDURE
Provisional Departmental
SelfAssessment
Assessment Assessment

Finalassessment
SelfAssessmentforall Caseswherevalueor Bestjudgment
ordertobepassed
registeredtaxable rateoftaxcannotbe assessmentfornon
withinaspecified
persons determined filers,URDdealers
time

TransitionalProvision
Provisionto
allowCENVAT/ Pending
Registration Carryforward
InputCrediton Litigationtobe
Provisional/ ofCENVAT/
Inputs/Capital disposedasper
Final InputCredit
goodsin existinglaw
Specificcases

3May,2017 17
 PROGRESSSOFAR.
3May,2017 18
Progresssofar

ConstitutionalAmendmentBill
01 ConstitutionalAmendmentBillreceivedPresidentsAssent on
8September,2016

GSTCouncil

GSTNetwork 02 GST Councilformed Firstmeetingon22/23September,2016

GSTCouncil torecommendlaws,rules,regulations
GSTCounciltodecideonmodalitiesforresolvingdisputes.
ModelGSTLaw

03
Discussion GSTNetwork formedtoprovidecommonGSTportal
CommonPortaltofacilitateregistration,paymentoftaxes,
filingofreturns

04 RevisedDraftModelGSTLawout November,2016
Outlinesvariousprovisions goods/services,time/placeof
supply,valuations,taxcredits,returns,assessments,transition
GSTImplementation

05
From1July,2017seems GSTCounciltomakerecommendationsafterdiscussionwith
tobeapossibility variousstakeholdersonRates,ThresholdExemption,Existing
ExemptionpendinganddraftModelGSTlaw

3May,2017 19
 KEYIMPACTAREAS
3May,2017 20
KeyImpactAreas
FinanceMinister during
Budget2015speech,
Fiscal stated
Cash Business
Flows Process GSTisexpectedtoplaya
transformativerole inthe
wayoureconomyfunctions.
Product Itwilladdbuoyancy toour
Accounting
Pricing GSTImpact economybydevelopinga
commonIndianmarket and
Areas reducingthecascadingeffect
onthecostofgoodsand
Supply
ITSystems services.Wearemovingin
Chain
variousfrontstoimplement
GSTfromthenextyear.
Human
Marketing
Resource

Multifoldimpact,notlimitedtomonetary
3May,2017 21
KeyImpactAreas Illustration
Illustrative Scenario Based in One State Current Tax Regime Under GST

Manufacturer to Wholesaler
Base Price (A) 100 100
Excise Duty @ 12.5% 12.50 -
State VAT @ 12.5% (on 112.50) 14.06 -
CGST @ 10% (on 100) - 10
SGST @ 10% (on 100) - 10
Total Collections 126.56 120
Wholesaler to Retailer
Wholesale price (assuming value addition of 20) 146.56 140
State VAT @ 12.5% (on value addition of 20) 2.50 -
CGST @ 10% (on value addition of 20) - 2
SGST @ 10% (on value addition of 20) - 2
Retail sales price (inclusive of taxes) 149.06 144
Retailer to Customer
Retail sale price (assuming value addition of 20) 169.06 164
State VAT @ 12.5% (on value addition of 20) 2.50 -
CGST @ 10% (on value addition of 20) - 2
SGST @ 10% (on value addition of 20) - 2
Cumulative tax price (MRP) 171.56 168
Total Taxes 31.56 28
Note: The above is typical scenario based in one state. Situation may vary from goods to goods and state to state and would have various permutations and combination.

3May,2017 22
KEYIMPACTAREAS Illustration

Impact of GST on Financials

Top-line may get Reduction in

Reduction in cost due to capitalized value
elimination of non-creditable taxes reduced in some cases
(e.g. traded items) on account of
possible input
Income and Expenditure A/c credits
Dr. Cr.
Balance Sheet as on .
Particulars Particulars
Liabilities Assets
Consumption of Input / Net Services / Income
Input Services XX from operations XX Fixed Assets
-------- XX -------- XX
-------- XX -------- XX
Purchase of traded -------- XX -------- XX
goods XX Loans & Advances
Current Liabilities
Credit receivable XX
Credit Payable XX
Depreciation XX Possible reduction in overall cost
on account of seamless credit
flow of goods & services
Other expenditure XX
____ ____ Changes on account of
seamless credit flow

3May,2017 23
KeyImpactAreas Illustration
Impactonworkingcapitalduetochangeinprocurementcost/TaxCost
Existingstatusofexemptionsofgoodsandservices,ifany
BusinessOperations
Productpricingandmarketingstrategy
NewContractsandtransactionframework

Seamlesscreditsacrossgoodsandservices
Sourcing/
Impactofeconomiesofscale
Procurementand
Logistics Impactonimports creditavailability
Impactonexportssuchasdutydrawbackandotherbenefits

RealignmentofAccountingduetochangesinoverallbusinessprocesses
Accounts,Financeand
Mechanismtorecordcreditsonallgoodsandservices
Information
Technology RedesigningIT,MISandotherreports/documents
DevelopingITcontrols

TransitiontoGST Registration,InputCredits,Pendingassessments/litigation
Maintenanceofadequaterecordsanddata
Compliances
Claimofinputtaxcreditsandconditionthereto
Processforfilingofreturns/paymentoftaxes

3May,2017 24
 KEYIMPACTAREAS Specifics
3May,2017 25
KEYIMPACTAREAS

Areas to be considered for GST Impact

Business Process Tax Treatment -

Review / Change Revenues / Expenses

Place of Supply - IT and Tax Compliance

Services - Change

3May,2017 26
KEYIMPACTAREAS

Likely issues in GST regime Taxability/Place of Supply

Proposalissuedand Proposal 1
submittedatStateA issued
ServiceProvider Customerhaving
HOatStateA HOinStateA

TermsandconditionsfinalizedatStateB Contract 2
ContractsignedbyCentralProcurementTeamatStateB Signed
Branchoffice
atStateB CustomersProcurementTeam
atStateB

Servicesprovidedat/toplantinStateC
Delivery 3
Branchoffice ofgoods
CustomerFactoryat
atStateC StateC

PaymentmadefromCentralizedPaymentOffice Payment 4
Made
StateD PaymentReceivedatStateD

Howtodeterminelocationsofserviceproviderandservicereceiver?

3May,2017 27
KEYIMPACTAREAS

Likely issues in GST regime Transition

Evaluate
potential Planningand
Analyzingtax Contractre
impactofGST scheduling
liabilityand structuring
Taxclauseto oncontract procurement,
eligibilityof wherever
bereviewed Renegotiate supplies,
creditinline possibleto
andrephrased withvendors advancesand
withtransition avoiddual
topassontax paymentof
provisions taxation
benefitunder taxes
GSTregime

Moreclarityontransitionprovisionsforexistingcontracts

3May,2017 28
KEYIMPACTAREAS Specifics
Input Tax Credit
Timeline
Filingofreturnforthemonthof Usedformakingoutwardsupply
Septemberfollowingthe
financialyearOR
Filingoftherelevantannual
return
whicheverisearlier
Conditions
Possessionofataxinvoiceor
dutypayingdocument
Receiptofgoodsand/or
services
Taxchargedhasbeenpaidto
theGovernment
FilingofReturn
3May,2017
InputandInputService InputTaxCredit
Taxonsuppliesusedinthecourseof
inthecourseoforfurtheranceof furtheranceofbusiness
business
Restrictions[
i i [Section16]]
Goods / services used for taxable and exempted supplies Restricted to
input tax attributable to the taxable supplies. (No FITR)
Full credit to zerorated supplies 06
No Credit on
Motor vehicles
Goods / services used for personal use or consumption of employees,
private or personal consumption
Immoveable property except plant and machinery
Construction material used in construction of immoveable property
Capital goods Fully allowable; reversal of credit at the time of removal at
higher of transaction value or original credit reduced by prescribed
percentage
p g
29
KEYIMPACTAREAS

Compliance Comparison:ExistingTaxationvs.GST
PlaceofSupply
Levy Rate Invoice Registration Returns
(POS)
Existing

Singleinvoice
Onetax Onerate NotApplicable OneRegistration Summaryofdata
series

Duallevy invoiceseries CGST Compilation

Rates Local/ IdentifyState
(CGSTplus andrelated Registration ofData
Interstate basedonPOS
SGST) documents basedonState StateSpecific

Interstate: EachState
Levybasedon StateSpecific Statespecific
IGST SpecificGST
State different details
Applicable Registrations
GST

IGST Maintenance
IGST Inter Local SGST WhetherState ofRegister
IGSTRegistration
StateSupplies plusCGST specificSeries andTracking
required Credits
Reconciliation
State
ISDRegistrations
Specificvs
Financials

3May,2017 30
KEYIMPACTAREAS

Compliances GST Compliances

Books of Audit/
Registration Invoice Return
Accounts Assessment

Multiple Sales State State

POS
states GST (GSTR 1) Specific Specific

Information
Multiple Multiple Tax Purchase to be
IGST Rates (GSTR 2) maintained in
the State
Monthly
Nature of
1 CGST Return
Services
(GSTR 3) CompleteChangeinTaxmechanism
Multiple State
businesscriticalaswellasPricing
Input Specific ISD Critical.
Service Invoice (GST -6)
Distributor Series
RequirestimelychangeinITSystem
andneedtobereadywellbeforeGSTis
Annual
implemented

3May,2017 31
KEYIMPACTAREAS

Compliances GSTReturn
Return

Monthly
AnnualReturn
Return

Reconciliation ITsystemneedto
Output Input withFinancial
Statement geareduptoallow
itmeet
requirement
Onlinebasedon Nocreditafter
Transactionwise
vendor AR
underGST

Invoice Monthly NoInvoice

cancellation Reconciliation revisionafterAR

NoCreditNote
Advance Interest
afterAR

3May,2017 32
KEYIMPACTAREAS

Compliances ITImpact

Changes in System likely to be required primarily on following:

Change in taxes/ tax rates / types of taxes

Availability of credits of taxes paid on purchases / imports

Availability of credit in specific order/ sequence of set-off

Availability of cross credits across goods and services

Broadly, changes required in IT system can be categorized as:

Need to change in documents such as invoices / internal records

Need for addition/ modification/ omission of certain data fields

Changes in the in-built logic for computation of some data fields

3May,2017 33
 NEXTSTEPS
3May,2017 34
NextSteps
Monitor
Closelymonitor
developmentsaroundGST
ImpactAnalysis
Identifyimportantbusiness
areas/operationsforGST
FutureDecisions impactanalysis
Potentialbusiness
decisionsimpactingfuture
requiresrevisit GearUp
GearupforGSTchangesin
models/system/
Issues structuring
Identifybottlenecks/
potentialissues/sensitive
areas Sharing/Training
Adequateknowledge
sharing/trainingrequired
forTeam/Employees

3May,2017 35
 ApproachTowardsGST
3May,2017 36
ApproachtowardsGST
GettingReady FinalPositions Go Live

DetailedImpact Finetuningof Implementation

Analysis Operations Assistance
Assistanceandtrainingin
PotentialGSTimpact Revalidationandfine transitiontoGST
analysisofimportant tuninginlightoffinal especiallyforimpacted
businessareas Prepare GSTlegislation areassuchasfinance,IT,
fortransition Operation/Model accounting

ImmediateBasis Postfinalization TransitiontoGST

draftGSTlaw ofGSTLaw

01
Detailedimpactanalysisof
businessareas/operations
Identifysensitive/keyareas
Aligncommercialdecisions
PreparingbusinessandGST
assumptions
Prepareroadmapfortransition
02
Revalidatingimpactanalysis
Finetuningimpactareas
Identifyingimpact
Exploringpossibilitiesfor
mitigatingadverseimpact
Finalizeimplementationplan
03
SmoothTransitiontoGST
Assistinexecutingstrategicchanges
TrainingforGSTChange
GSTInstructionManual
InitialComplianceAssistance
OnCallsupport

3May,2017 37
 AboutSGCO&Co.LLP
3May,2017 38
 SGCO&Co.LLP Introduction
Establishedin1992 withavisiontobecomeaTrulyGlobalConsultingFirm.(Formerly SingrodiaGoyal&Co.)

AMultiDisciplinaryCharteredAccountantsFirm cateringtoover200client groupsacrossdiversesectors

DriversofQualityProfessional GeographicalSpread Resources300

Factors
Services Partner Professionals Staff
Service 6 Service Verticals providing
Verticals specialized professional services Attest&
Compliance 3 30 56
12 partners, each vertical lead by RiskAdvisory&
Partners
two / three partners Management 2 35 50
Assurance
100+ Qualified Professionals
Professionals DirectTaxation 2 13 25
175+ Executive Staff

IndirectTaxation 2 11 24
Infrastructure Operates from CBD Andheri,
Mumbai Transaction&
BusinessAdvisory 1 6 10
HO
Withinlasttwodecades,SGCOhasgrownfrom2
KrestonNetworkfirms Corporate&Allied
to11partnersandbuiltreputationforproviding
Associatefirms Laws 1 5 10
qualityservicestomidandlargesizecorporates

SGCOisclassifiedunderCategoryIbyReserveBankofIndia

3May,2017 39
 SGCOAffiliation KrestonInternational

A stepping stone in building professional network across the Globe

Kreston International, headquartered in UK,
is amongst the top 13 networks of
independent accounting firms of the world:
Morethan600 officesin108 countries
20,000professionalandsupportstaff
GlobalfeerevenueofoverUSD1.9bn Krestons globally coordinated quality monitoring and review
1 in providing services to Indian clients at International locations and
viceversa.
Kreston members are accustomed to work together on client
2 assignments to deliver seamless and cohesive international
solutions.
3 programme supports member firms in maintaining Quality
Standards.

SGCO participated in Global summits held at Budapest (Hungary),

Beijing (China), Vancouver (Canada), Copenhagen (Denmark), Seoul
4 (South Korea) & Rio (Brazil) and presented an overview of Indian
economy and emerging professional opportunities.

SGCOsaffiliationwithKrestonisastepforwardaimedatfulfillingitsvisionto
become ATrulyGlobalConsultingFirm

3May,2017 40
CorporateOffice
4A,2stFloor,HDILKaledonia Building,SaharRoad,Andheri(East),Mumbai 400069.
BoardNo:+91 22 66256363|Fax:+91 22 66256364

O.D.Bihani VishalLahoti
Email:odb@sgco.co.in Email:vishal.lahoti@sgco.co.in
Mobile:+919821231330 Mobile:+919920399723

Disclaimer:GSTPresentationisbasedonourunderstandingoftheGSTlawandregulationsprevailingasofthedateofthisPresentation andisprepared
basedoninformationavailableinpublicdomainsuchasreviseddraftModelGSTLawandrules/regulations.TheGSTLawisunder discussion/evolution
andmaybesubjecttochanges.Accordingly,itisimportanttoconsultaqualifiedprofessionalconsultantbeforetakinganydecision/adviceorrelying
onthepresentation.Theconclusionsreachedandviewsexpressedinthispresentationaremattersofopinion.However,therecan benoassurancethat
theGSTLawfinalisedmayhaveapositioncontrarytoourviews.

3May,2017 41
BroadStructure
DualGSTforCentreandStates,IGSToninterstatetransactions

Applicabletax/ CentralGST State GST IntegratedGoods

andServicesTax
Natureof
Transaction (CGST) (SGST) (IGST)

LocalTransaction
(withinState
Transaction)


Interstate
Transaction

Back

3May,2017 42
ProposedBroadStructure
ProposedGST CurrentIndirect ProductBasket/Comments
Rates TaxRates
Proposed toincludeapprox.50%ofItemsfallingunderConsumerPriceIndicesbasket
0% 0% ItmayincludeitemssuchasFoodgrainsusedbyCommonPeople
Zeroratedtokeepitsimpactleastintermsofinflationarypressureoncommonpeople
Itemsofmassconsumptionmainly usedbycommonpeople(AamAadmiProducts)
5% 4% 7% Rateshasbeen reducedfromearlierproposedrateof6%
(approx.)

One oftheStandardRatesbutnospecificationprovidedaboutitemstobetaxed
12% MaybeapplicableonFast movingConsumerGoods
(1st StandardRate)

Oneof theStandardRatesbutnoSpecification providedaboutitemstobetaxed

18% Certain productsusedbyLowermiddleclassmaybeincludedwhicharecurrentlytaxedat
(2nd StandardRate)
28%orathigherrate(suchasSoaps,Oils&ShavingKits)
Includes productssuchasWhitegoods,Carswhicharecurrentlytaxed atmorethan28%
28% 28% 31% Lesseritemstobeincludedinthisratebrackets
Cesstobeleviedonlyonselectedproductscoveredunder 28%bracket
28%plus
40 % 65% Cesstobeapplicablewithasunsetclauseof5yearssubject toyearlyreview
Cess CoversLuxury Cars,UltraLuxury/Demerit/Singoods,AeratedDrinks, Tobacco,Panmasala
Discussionpendingaboutcategorisationofitemsfallingunderrespectiveslabratesandwillbeprovidedatalaterdate.
NorateshasbeenspecifiedincaseofServicesasitwouldbeclarifiedatalaterdatewhencategorisationlistisprovided.
Goldratestovaryfrom2%to4%basedonflexibilityofrevenuegeneratedtoachieveRevenueNeutrality.
CesssocollectedtobeutilisedtocompensateStatetaxlossesestimatedtobeINR50,000CroresinfirstyearofGST.
ExistingEnergyCessonCoaltocontinueandwillbeutilisedtocompensatestatetaxloses.
Back

3May,2017 43
BroadStructure
Freecreditflow ExceptNocreditsetoffbetweenCGSTandSGST

OutputLiability IGST CGST SGST

/InputCreditType

IGST
CGST
SGST

Back

3May,2017 44
BroadStructure
LevyandCredit CGST,SGSTandIGST
StateA StateB

Interstatepurchase 50
IGST@20%=10

Input Interstatesale/Stocktransfer 110

credits Localsale 140
D1 D2 CGST14
IGST(CGST+SGST)22
SGST 14

Localpurchase 50
SGST@10%=5 Customer
CGST@10%=5 Orderofutilization

Output IGST 22 CGST SGST

Orderofutilization

Less: Output GST 14 14

Input IGST 10 Less: Input IGST 14
Input CGST 05 Input IGST 08
Input SGST 05 Net SGST payable by D2 06
Net IGST payable 02
by D1 Back

3May,2017 45
TransitionProvision
CENVATCredittobeCarriedForward

Broadly,itcanbesuggestedasfollows:

TypeofDealer/ Manufacturer Trader ServiceProvider

TypeofCredit

Excise

VAT

Servicetax

Note:CreditwouldavailableinGSTregimebasedonCurrenteligibilityofCredits
Back

3May,2017 46