Attachment

1
CA DR MAHESH GOUR
PPT BY RAJ MAYEKAR
INTRODUCTION 2
Cleared by Lok Sabha on 8th August 2016
122nd
Constitutional
Amendment Bill
(CAB) Cleared by Rajya Sabha on 3rd August 2016
CA Dr. Mahesh Gour Raj Mayekar

Applicability of GST AFTER GST
3
BEFORE GST
Service
Tax
X
GST will apply to whole of INDIA

DEFINITIONS 4
The term ‘GST’ is defined in Article 366 (12A)
Supply of Goods
Any Tax
on Supply of Services
Except tax on Alcoholic Liquor for

human consumption
5
GST STRUCTURE
IGST CGST SGST

GST STRUCTURE
6
CGST SGST
Central Central State

Government Government Government
IGST = Integrated GST  CST

7
IGST
Inter-State Transfer
Gujarat
Maharashtra
IGST imposed on Inter State transfer of goods.

8
IGST IGST = CGST + SGST
IGST is not a final tax.
IGST SGST
X ₹150
Y ₹200
Z
Gujarat Mumbai Mumbai
₹100  CGST
₹100  SGST

Compensation for State Loss
Loss borne by Central Government as per Constitution 9
Impact on Customs Duty

CVD 3(1)
IGST ✓
ACD 3(5)
IGST GST
IMPORT Sale in INDIA
₹100 ₹250
Payment to Department
= ₹250 – ₹100
= ₹100
Alcohol for Home Consumption 10
Exclusion of alcohol sector could mean that the companies

manufacturing alcohol may not be in a position to avail
credit of GST paid by them on their procurements.
Petroleum products and tobacco 11
Petroleum products and tobacco will continue to attract

duty of excise. However, CAB specifically provides that the
petroleum products may not attract GST, however, at a later
stage, GST Council may decide to levy on petroleum products.
12
AT CENTRAL LEVEL :
1. EXCISE DUTY Single Uniform Tax
2. SERVICE TAX
3. CVD
4. SACD
5. CST
AT STATE LEVEL :
1. VAT/Sales Tax
2. ENTERTAINMENT TAX
3. LUXURY TAX
4. TAX ON LOTTERY, BETTING & GAMBLING
5. ENTRY TAX NOT IN LIEU OF OCTROI
6. CESSES AND SURCHARGES Exclude
Electricity Duty, Stamp Duty, etc.

CROSS UTILIZATION  ALLOWED
13
Before GST
CST VAT
X ₹100
Y ₹250
Z
Manufacturer Dealer Buyer
No Credit of CST against VAT
After GST
IGST SGST
X ₹100
Y ₹250
Z
Input Tax Credit of ₹100 allowed
14
Valuation of GST
GST would be payable on transaction value.
Supply of Good
Consideration
₹2,00,000
X Y
Transaction Buyer (unrelated
Value party of X)

15
Time Limit for Adjudication
Before GST After GST
Other than FCWSP Other than FCWSP

FCWSP (Generic FCWSP (Generic
Case) Case)
5 years 5 years
24 months / 3 years
30 months In case of
Service Tax
16
Old provisions re-introduced
Most of the current provisions such as reverse charge, tax
deduction, pre-deposit, prosecution (!), arrest (!) etc have been
continued in the proposed draft GST law.
EXPORT & SEZ

Exports would be zero rated, as currently they are. In case of SEZ, if
the supply of goods or services is for consumption in processing zone
then it would be zero rated.

AUTHORITY 17
CGST SGST
AUTHORITY AUTHORITY
SINGLE LIABILITY
SINGLE REGISTRATION
SINGLE RETURN
SINGLE AUTHORITY

I already have registration in
VAT / ED / ST. 18
Will I have to take separate
registration for GST ????
Your old registration will get

migrated to GST automatically
I want a new registration.
New Registrations will be done

Online. Number will be
allotted within 3 days.

Requirement of AUDIT 19
My T/o for Current

Financial Year exceeds
Prescribed Limit.
Do I require Audit ?
Yes you need to do

Registered Audit.
Person
Hum hai na…Hum hai
to kya gum hai.
CA CMA
COMPOSITE SUPPLY 20
Comprises two or more supplies of goods or services, or
any combination thereof,
Natural Bundle Artificial Bundle

Comprising two or more supplies, Comprising two or more supplies
shall be treated as supply of that
one of which is a principal supply, particular supply which attracts the
shall be treated as a supply of such highest rate of tax.
principal supply;

Payment of GST 21
Section 35, 36, 37
Rule 1  Electronic Tax Liability Ledger

Rule 2  Electronic Cash Ledger
Rule 3  Electronic Credit Ledger

Payment of GST 22
Purchase Input ₹ 1,00,000 FG Sold for ₹ 5,00,000
X Paid GST ₹20,000
Y GST charged ₹50,000
Z
₹20,000
₹45,000 ₹50,000
Asset of Assessee
Wallet of Assessee
Electronic Credit ledger Electronic Cash ledger Electronic Tax Liability ledger
Payment of GST 23
Purchase Input ₹ 1,00,000 FG Sold for ₹ 5,00,000
X Paid GST ₹20,000
Y GST charged ₹50,000
Z
Tax Liability ₹50,000

(-) Electronic Credit Ledger Account (₹20,000)
(-) Electronic Cash ledger Account (₹30,000)
Liability NIL
Balance Available in Electronic Cash Ledger Account

= ₹45,000 - ₹30,000
= ₹15,000  REFUNDED u/s 38
Utilization of Electronic Credit Ledger & Electronic
Cash Ledger 24
Electronic
Credit Ledger
Electronic
Cash
Ledger
FOR PAYMENT OF FOR PAYMENT OF

OUTPUT TAX OUTPUT TAX, PENALTY, INTEREST

Discharge of Liability 25
1)Previous Year Dues

2)Current Year Dues
3)Demand, etc

TDS Sale
26
Value ₹20 Lacs
GST @ 12% ₹2.4 lacs
Paid ₹20,00,000
BUYER SELLER
Government
Local Authority
TDS 1% on ₹20 Lacs (Not on ₹2.4 Lacs)
Notified Person
TDS deposit in Government A/c within 10 days from the end of the month &
within next 5 days issue certificate
Note : ₹20,000  deposited in Electronic Cash Ledger A/c

FORM 27
GST PMT 1  Electronic Tax Liability Ledger
Tax Liability = TAX + INTEREST + PENALTY + MISMATCH FIGURE
GST PMT 2 & 2A  Electronic Cash Ledger
GST PMT 3  Electronic Credit Ledger
CHALAN  GST Payment Chalan will be auto populated & can be

downloaded
Online Payment  NEFT / RTGS / IMPS

Offline Payment  Cash / Ledger / DD etc.

ADVANTAGES  1. INPUT TAX CREDIT
28
Before GST
CST VAT
X ₹100
Y ₹250
Z
GUJARAT MAHARASHTRA MAHARASHTRA
No Credit of CST against VAT
After GST
IGST SGST
X ₹100
Y ₹250
Z
GUJARAT MAHARASHTRA MAHARASHTRA
Input Tax Credit of ₹100 allowed
ADVANTAGES  2. No Cascading Effect
29
BEFORE GST AFTER GST

Input ₹150 ₹150
Processing Cost ₹250 ₹250
Profit ₹100 ₹100
₹500 ₹500
ED @ 10% ₹50 GST @ 10% ₹50
₹550 ₹550
VAT @ 10% ₹55
₹605

ADVANTAGES  3. Avoid Double Taxation
30
1. Restaurant Service  VAT + ST
2. Software  VAT + ST
ADVANTAGES 4. Reduced Statutory Compliances
Before GST  Return Filing / Payment of VAT, ST, ED, etc.
After GST  Return Filing / Payment of only GST.

ADVANTAGES  5. Single Rate
31
BEFORE GST
Excise  12.5%
VAT  5%, 14.5%
Entry Tax / Octroi  1%
CST  2%, 3%, 0%
AFTER GST
GST  SINGLE RATE

Implementation of GST
32
It is complicated to abolish all taxes.
So State Government & Central Government cumulatively

formed an organization [NPO]
“Goods and Service Tax Network”
Provide IT infrastructure for Provide service to

implementation of GST Government, Tax Payer, other
stakeholders.
Facilities to be provided by GSTN
33
 No Manual Return Filing

 Online Payment
 Auto-generated Mismatch Return
 Self-assessment [No requirement of Assessing Officer]
 Online Database
 No Tax Evasion

INPUT TAX CREDIT
34
GST paid ₹1,50,000
TELECOMMUNICATION TOWER & PIPELINE
1st FY  Max 50,000 (1/3rd of 1,50,000)

2nd FY  Max 1,00,000 (2/3rd of 1,50,000)
Subsequent FY  Balance

INPUT TAX CREDIT
 Conditions for availing Input Tax Credit 35
He is in possession of Tax Invoice

or Debit Notes.
REGISTERED
TAXABLE
He has received the Goods and/or
PERSON services.

INPUT TAX CREDIT
 If Recipient fails to pay to the supplier of service. 36
Your input tax credit will

be reversed if you don’t
pay to me…!! Service Provided
Payment not
made within
X 3 months Y

INPUT TAX CREDIT
If Registered Taxable Person has claimed “DEPRECIATION” 37
IF THEN
Depreciation claimed NO input tax credit
on tax component

RANKING FOR INPUT TAX CREDIT
38
ITC
CGST SGST IGST

Rank 2 Rank 3 Rank 1
CGST IGST SGST IGST IGST CGST SGST

APPORTIONMENT OF CREDIT & BLOCKED CREDIT
39
INPUT
Business Purpose Other Purpose
INPUT TAX CREDIT INPUT TAX CREDIT
ALLOWED ✓ NOT ALLOWED X

40
INPUT
used for
ZERO RATE FINISHED GOOD EXEMPTED FINISHED GOOD
INPUT TAX CREDIT INPUT TAX CREDIT
ALLOWED ✓ NOT ALLOWED X

Duty will be paid as per Reverse
Charge Mechanism
 Banking Company / NBFC / FI providing Taxable 41
Services as well as Exempted Services
Services by way of accepting deposits, extending
loans or advances
OPTION
BANKS / NBFC / FI
Proportionately Avail 50% of eligible Input

Tax Credit on input,
capital goods & input
services.
NOTE : OPTION ONCE EXERCISED CANNOT BE WITHDRAWN DURING REMAINING FY
 ITC shall not be available in respect of - 42
1. Motor Vehicles & other Conveyance
Exception
1. Driving
2. Transportation of goods and passengers.
3. Further supply of such vehicles.

2. Supply of goods and services.
 Food & beverages, outdoor catering, beauty treatment
 Health & Fitness centre
 Rent a cab, Life insurance, Health insurance (except Employee
Insurance), etc

3. Goods (input) or Services used for personal consumption
4. Goods (input) lost, stolen, destroyed, written off or disposed by

way of gift or free samples.

45
Within 30 Days
10/12 25/12 31/12

Liable for Registered Taxable
Registration
Input Tax Credit allowed for stock & input contained by the person on the day
immediately preceding the date from which he becomes liable to pay tax 
i.e. 30/12
Note : If registration is taken u/s 23(3), then ITC shall be taken in respect of
inputs held in stock and inputs contained in semi-finished or finished goods
held in stock on the day immediately preceding the date of grant of
registration.
 Change in Constitution 46
Sold / Merged / Demerged /

MG Industries
Amalgamated / Leased or Transferred MG & RsM
Industries
ITC of 2,00,000 Transferred ITC of 2,00,000

(utilized) received

47
Manufactures taxable goods
Goods become Exempt
ITC on Input / Capital Goods contained in stock will have

to be paid or reserved

TAKING ITC IN RESPECT OF INPUTS SENT FOR JOB WORK 48
Input Directly
received in Job
CONTRACT Worker’s Factory
PRINCIPAL Input received back after JOB ITC Allowed to

Job Work WORKER Principal
WITHIN 1 YEAR
For CAPITAL GOODS (other

than moulds, dies, jigs and
fixtures) 3 years
49
New Edition of Book on GST

By CA Dr. Mahesh Gour
50
TO DOWNLOAD THIS PPT VISIT DOWNLOADS

SECTION AT
http://www.camaheshgour.com
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1

CA Dr. Mahesh Gour Raj Mayekar

GST will apply to whole of INDIA

Except tax on Alcoholic Liquor for

IGST CGST SGST

CA Dr. Mahesh Gour Raj Mayekar

Central Central State

IGST = Integrated GST  CST

IGST imposed on Inter State transfer of goods.

CA Dr. Mahesh Gour Raj Mayekar

CA Dr. Mahesh Gour Raj Mayekar

Impact on Customs Duty

Exclusion of alcohol sector could mean that the companies

Petroleum products and tobacco will continue to attract

CA Dr. Mahesh Gour Raj Mayekar

CA Dr. Mahesh Gour Raj Mayekar

Before GST After GST

Other than FCWSP Other than FCWSP

EXPORT & SEZ

CA Dr. Mahesh Gour Raj Mayekar

CA Dr. Mahesh Gour Raj Mayekar

Your old registration will get

I want a new registration.

New Registrations will be done

CA Dr. Mahesh Gour Raj Mayekar

My T/o for Current

Yes you need to do

Natural Bundle Artificial Bundle

CA Dr. Mahesh Gour Raj Mayekar

Section 35, 36, 37

Rule 1  Electronic Tax Liability Ledger

CA Dr. Mahesh Gour Raj Mayekar

Tax Liability ₹50,000

Balance Available in Electronic Cash Ledger Account

FOR PAYMENT OF FOR PAYMENT OF

CA Dr. Mahesh Gour Raj Mayekar

1)Previous Year Dues

CA Dr. Mahesh Gour Raj Mayekar

Note : ₹20,000  deposited in Electronic Cash Ledger A/c

CA Dr. Mahesh Gour Raj Mayekar

GST PMT 2 & 2A  Electronic Cash Ledger

GST PMT 3  Electronic Credit Ledger

CHALAN  GST Payment Chalan will be auto populated & can be

Online Payment  NEFT / RTGS / IMPS

CA Dr. Mahesh Gour Raj Mayekar

BEFORE GST AFTER GST

CA Dr. Mahesh Gour Raj Mayekar

ADVANTAGES 4. Reduced Statutory Compliances

Before GST  Return Filing / Payment of VAT, ST, ED, etc.

After GST  Return Filing / Payment of only GST.

CA Dr. Mahesh Gour Raj Mayekar

GST  SINGLE RATE

CA Dr. Mahesh Gour Raj Mayekar

So State Government & Central Government cumulatively

Provide IT infrastructure for Provide service to

 No Manual Return Filing

CA Dr. Mahesh Gour Raj Mayekar

GST paid ₹1,50,000

TELECOMMUNICATION TOWER & PIPELINE

1st FY  Max 50,000 (1/3rd of 1,50,000)

CA Dr. Mahesh Gour Raj Mayekar

He is in possession of Tax Invoice

CA Dr. Mahesh Gour Raj Mayekar

Your input tax credit will