A radical shift is going to happen with the introduction of biggest business reform i.e. Goods and Service Tax Law. Almost all the key things have been decided by the GST council. GST roll out is on the door step of us. For the benefit of the readers I am herewith attaching GST presentation, hoping it would be useful.

1. Goods and Service Tax Act
(“GST”) – Radical Change
- Krunal K Shah & Co
Chartered Accountants

2. Agenda of the Presentation
• GST Starter
• The Term Supply Navigation
• Composition Scheme
• Time, Place and Value of Supply
• Input Tax Credit
• Registration
• Walk through of key procedure and Compliance
• Transitional Provisions
• Action Points
Krunal K Shah & Co

3. GST Starter

4. • GST is destination based consumption tax i.e. tax will be payable in the State in
which goods and services are finally consumed.
• Taxable event in GST is “supply” as compare to current indirect tax regime in
which taxable events are manufacturing of goods, provision of services, sale of
goods etc.
• There will be Dual Structure due to federal structure prevails in India
• “One Nation One tax “ motto for a single comprehensive tax on Goods and
Services.
• Levied and collected at every stage of supply on the same fashion of existing VAT
model based on seamless Input tax credit method across entire supply chain
without considering state boundaries.
• Terrific use of IT infrastructure under this regime
• Indigenous product and service become cost competitive with respect to
international market due to reduction in cost
• It is like planting mango tree which will give fruits in long term.
What is GST ?
Krunal K Shah & Co

5. Unified National Economic Market on Pan India Basis.
Single Tax to replace multiple levies of Centre and States.
Mitigation of Cascading effect of Taxes
Seamless transfer of Input Tax Credit across entire supply chain
More efficient neutralization of taxes especially for exports
Improvement in Competitiveness
Benefits of GST
Krunal K Shah & Co

6. Taxes to be subsume
GSTCentral Excise
Service Tax
Central Sales
Tax
CVD
Entertainment
Tax
Octroi / LBT
Entry Tax
State Value
added tax
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7. •CGST
•SGST
•UTGST
Intra-state/union territory
Supply of Goods and Services
•IGST
Inter-state Supply of Goods and
Services
•Basic Customs Duty
•IGST ( in place of CVD and SAD)Imports
•Zero Rated
Exports
•CGST – Central Goods and Service Tax
•SGST – State Goods and Service Tax
•IGST – Integrated Goods and Service Tax
•UTGST Union Territory Goods and service Tax
Tax Structure
Krunal K Shah & Co

8. Rate Structure
Rate Supply of Goods or services
Exempted Basic need item like in goods Dairy product, fresh Fruits, food
items, handloom products etc. and in services education,
health care
Zero Rated Item under Consumer Price Index, Exports, Supplies to SEZ etc.
0.25 % Diamond
3 % Gold
5 % Essential commodities
12 % Product and Services which are basic necessities
18 % Standard Rate
28 % Luxury items
28 % + Cess Luxury and De-merit Items
Krunal K Shah & Co

9. GST IT Ecosystem
Stakeholders
Taxpayers
State tax
Authorities
CBEC
Bank and
RBI
GST
Suvidha
Providers
(GSPs)
Facilitation
Centre
GSTN
GST Council
Accountant
General
Krunal K Shah & Co

10. GST IT Ecosystem
Desirable
features of
GSTN
Simplicity
for tax
payer
Respect
State
Autonom
y
Uniformit
y of
policy
administr
ationClear
Migration
Strategy
to GST
Enable
digitalizat
ion of the
whole
supply
chain
Reduce
leakages
Workflows
Registrati
on
Returns
Challans
Inter-
state
goods
Refunds
Audits
Appeals
Krunal K Shah & Co

11. The term “supply” -
navigation

12. Section 7(1)(a) Section 7(1)(b) Section 7(1)(c)
All forms of Supply of goods
and/ or services for
consideration and in course or
furtherance of business such
as
• sale
• transfer
• barter
• exchange
• license
• lease
• rental
• disposal
Import of Services
• for consideration
• whether or not in the
course or furtherance of
business
Activities specified in
Schedule I,
• without consideration
• Activities are :
1. Permanent transfer of
business assets for which
ITC availed on such asset
2. Supplies between related
persons/ distinct persons
specified in section 25 in
the course or furtherance
of business
3. Supply of goods by
principal to agent or vice
versa.
4. Import of service from
related person in course
or furtherance of business
Meaning and Scope of Supply – Section 7
Krunal K Shah & Co

13. Meaning and Scope of Supply – Section 7
Schedule II – Activities to be treated as Supply of goods
or supply of services, to name a few :
Supply of goods
• Transfer of title in goods
• Supply of goods by any
unincorporated association or body
of persons to a member thereof for
cash, deferred payment or other
valuable consideration
Supply of Services
• Construction of complex, building,
civil structure etc.
• Development, design,
programming, customization etc. of
information technology software
• Works contract services
Krunal K Shah & Co

14. Composite Supply Mixed Supply
Meaning Section 2(30) -
a supply made by a taxable person to
a recipient consisting of two or more
taxable supplies of goods or services
or both, or any combination thereof,
which are naturally bundled and
supplied in conjunction with each
other in the ordinary course of
business, one of which is a “principal
supply”
Section 2(74) –
two or more individual supplies of goods or services,
or any combination thereof, made in conjunction with
each other by a taxable person for a single price
where such supply does not constitute a composite
supply
Illustration Where goods are packed and
transported with insurance, the
supply of goods, packing materials,
transport and insurance is a
composite supply and supply of
goods is a principal supply.
A supply of a package consisting of canned foods,
sweets, chocolates, cakes, dry fruits, aerated drinks
and fruit juices when supplied for a single price is a
mixed supply. Each of these items can be supplied
separately and is not dependent on any other. It shall
not be a mixed supply if these items are supplied
separately.
Taxability
Section 8
supply of such principal supply supply of that particular supply which attracts the
highest rate of tax.
supply of goods or services which constitutes the
predominant element of a composite supply and to
which any other supply forming part
of that composite supply is ancillary
Composite Supply and Mixed Supply- Section 8
read with Section 2 (30) & (74)
Krunal K Shah & Co

15. Composition Levy

16. This is an optional scheme.
Eligibility Condition
• Registered Person
• Aggregate turnover of registered person in the preceding financial year did not
exceed Seventy Five lakhs rupees (all India basis for taxable persons having same
PAN)
• No Input tax credit available and no tax to be collected
Section 2(6) : Aggregate Turnover means aggregate value of
• All taxable supplies (excluding the value of inward supplies on which tax is payable
by a person on reverse charge basis)
• Exempt supplies ( Include non taxable supply as per definition)
• Export of supplies
• Interstate supplies of person having same PAN to be computed on all India basis
• but excludes central tax, State tax, Union territory tax, integrated tax and cess;
Composition Levy – Section 10
Krunal K Shah & Co

17. – Rate of Tax
Sr. No Category of Registered Persons Rate of Tax
1 Manufacturer other than of goods as
may be notified
1 %
2 Composite supply of food or any other
article for human consumption or any
drink as goods and /or services
specified in clause (b) of paragraph 6 of
Schedule II
2.5 %
3 Any other Supplier eligible under
section 10
0.5 %
Composition Levy – Section 10
Krunal K Shah & Co

18. No Composition Scheme under following specific cases if registered
person:
• Supplying services other than supplies referred to in clause (b) of paragraph 6 of
Schedule II
• Supplying goods which are not leviable to tax
• Making inter-state outward supply of goods
• Supply goods through electric commerce operator who is required to collect tax u/s 52
• Manufactures goods as may be notified
• Neither a casual taxable person nor a non resident taxable person
• the goods held in stock on the appointed day have not been purchased in the course of
inter-State trade or commerce or imported from a place outside India or received from
his branch situated outside the State or from his agent or principal outside the State
when person exercising the option to pay tax under this section
• Has not paid tax under sub-section (3) or sub-section (4) of section 9 on inward supply
of goods or services or both
Composition Levy – Section 10
Krunal K Shah & Co

19. Time of Supply of
Goods and Services

20. Normal Supply
• Earliest of
• Date of issue of invoice
• Due date of issue of invoice
• Removal of goods where supply involves movement of goods
• Delivery of goods or making available to recipient
• Date on which receipt of Payment
• Date on which receipt is shown by supplier
Reverse Charge
• Earliest of
• Date of the receipt of goods
• Date of payment which is earlier of entered in the books of account or debited in
bank account
• Date immediately following thirty days from the issue of invoice by supplier
• In any other case date of entry in the books of accounts of the recipient of supply
Time of Supply of goods - Section12
Krunal K Shah & Co

21. Vouchers
• Earliest of
• Date of issue of voucher, if the supply is identifiable at that point
• Date of redemption of voucher, in all other cases.
If Time of supply is not determinable
• In a case where periodical return has to be filed, be the date on which such return
is to be filed: or
• In any other cases, be the date on which tax is paid
Addition in Value
• Time of supply of an addition in value by way of interest, late fee or penalty for
delayed payment of any consideration shall be date on which the supplier receives
such addition in value
Time of Supply of goods - Section12
Krunal K Shah & Co

22. Normal Supply
• Earliest of
• Date of issue of invoice if invoice is issued within prescribed time limit
• Date of provision of services if invoice is not issued within prescribed time limit
• Date on which receipt of Payment
• Date on which receipt of service is shown by supplier if above three point is not
applicable
Reverse Charge
• Earliest of
• Date of payment which is earlier of payment entered in the books of account or
debited in bank account
• Date immediately following sixty days from the issue of invoice by supplier
• In any other case date of entry in the books of accounts of the recipient of
supply
Time of Supply of Services - Section13
Krunal K Shah & Co

23. Vouchers
• Earlier of
• Date of issue of voucher, if the supply is identifiable at that point
• Date of redemption of voucher, in all other cases.
If Time of supply is not determinable
• In a case where periodical return has to be filed, be the date on which such return is to be
filed: or
• In any other cases, be the date on which tax is paid
Addition in Value
• Time of supply of an addition in value by way of interest, late fee or penalty for delayed
payment of any consideration shall be date on which the supplier receives such addition in
value
Time of Supply of Services - Section 13
Krunal K Shah & Co

24. Place of Supply of
goods and services

25. Place of Supply of Goods other than goods
imported or exported- Section 10
Scenario Place of Supply
Where the supply involve movement of goods  Location of the goods at the time at
which the movement of goods
terminates for delivery to the recipient
Where the goods are delivered by the supplier to the recipient or any
other person on the direction of the third person, whether acting as a
agent or otherwise by way of transfer of document of title to the
goods
 Principal Place of business of such
person
Where supply does not involve movement of goods  Location of goods at the time of
delivery to the recipient
Where the goods are assembled or installed at site  Place of such installation or assembly
Where goods are supplied on board or conveyance  Location at which such goods are taken
on board
If not determinable  In such manner as may be prescribed
Place of Supply of goods
imported into India, or
exported from India
Section-11
Imported into India
• Location of importer
Exported from India
• Location outside India

26. Place of Supply services where location of
supplier and recipient is in India – Section 12
Scenario Place of Supply
General Provision  Supply to registered Person(“RP”) (Generally B2B) –
Location of such person
 Supply to unregistered Person (“URP”)(generally B2C)
(i) the location of the recipient where the address on
record exists;
(ii) The location of the supplier of services in other
cases.
Supply of Service directly in relation to an
immovable property including service provided by
architects, interior decorators, lodging
accommodation by hotel, inn etc and any
ancillary service related to above mentioned
services
 Location at which the immovable property is located
or intended to be located
Restaurant and catering, personal grooming,
fitness, beauty treatment etc.
 Location where the services are actually performed
Training and performance appraisal  Supply to RP– Location of such person
 Supply to URP - Where the services are actually
performed
Passenger transportation service  Supply to RP – location of such person
 Supply to URP – place where the passenger
embarks on the conveyance for continuous
journey

27. Place of Supply services where location of supplier and
recipient is in India – Section 12
Scenario Place of Supply
Admission to cultural, artistic, entertainment
event or any other place and services ancillary
thereto
 Where the event is actually held or such other place is
located
Service ancillary to organisation of any of the
event specified above or assigning of sponsorship
 Supply to RP– location of such person
 Other than URP – place where event is actually held
Services on Board a conveyance  Location of the first scheduled point of departure of that
conveyance for the journey
Banking and other financial services  If location of recipient on records available – such place
 If location of recipient on records not available – Location
of supplier of services
Insurance Services  Supply to RP – Location of such person
 Supply to URP – Location of recipient of service on the
records of the supplier of services
Telecommunication services  Fixed telecommunication line – location where such line is
installed for receipt of services
 Post paid mobile connection –location of billing address
on records
 Prepaid basis through selling agent – location of such
selling agent
 Prepaid basis to final subscriber – location where such
prepayment received
 Any other cases – address of recipient on records

28. Place of Supply services where location of
supplier or recipient is outside India - Section13
Scenario Place of Supply
General Provision  Location of the recipient of services
 Where location of recipient is not available in ordinary
course of business – location of supplier of services
Services supplied in respect of goods made
physically available by recipient of services
 Location where the services actually performed
Services directly related to immovable property  Place where immovable property is located or
intended to be located
Admission to Events  Where the event is actually held
Banking and financial institute  Location of supplier of services
Intermediary services  Location of supplier of services
Hiring of means of transport up to period of one
month
 Location of supplier of services
Transportation of goods, excluding mail or courier  Place of destination of such goods
Passenger transportation services  Place where the passenger embarks on the
conveyance for a continuous journey
Online information and database access or
retrieval services
 Location of the recipient of services
Krunal K Shah & Co

29. Valuation

30. Value of Taxable Supply – Section 15
Value of supply shall include :
•Any other taxes, duties, cesses, fees and
charges other than GST
•Amount paid by recipient which are liable to
pay by supplier and that is not included in
price
•Incidental expenses (e.g. commission and
packing)
•Interest or late fee or penalty for delayed
payment of any consideration for any supply
•Subsidies directly linked to price excluding
subsidies provided by the governments
Value of supply shall not include:
•Any discount given before or at the time of
supply provided duly recorded in Invoice
•After supply discount on fulfillment of
following condition
•It is established in terms of an agreement at
or before the time of supply and specifically
linked to related invoice
•Attributable Input tax credit has been
reversed by recipient of supply
Value of Supply
Transaction Value
Price actually paid or payable
Supplier and recipient are not
related person
Price is sole consideration
Krunal K Shah & Co

31. Valuation Rules
Rule 1 : consideration is not wholly in money
• Open Market Value (“OMV”)
• Money + Money value of non monetary consideration
• value of supply of “like kind and quality”
• Value as determined by operation of rule 4 and rule 5
Rule 2 : Supply between distinct or related persons, other than through agent
• OMV
• Value of goods or services of “like kind and quality”
• Value as determined by operation of rule 4 and rule 5
• If goods are intended for further supply as such by recipient, value at the option
of the supplier, 90 % of price charged for supply of goods of like kind and quality
by the recipient to his customer not being related person
• If recipient is eligible for full input tax credit, the value declared in the invoice
shall be deemed to be OMV of goods or services
Krunal K Shah & Co

32. Valuation Rules
Rule 3 : Supply of Goods made or received through agent
• OMV or at the option supplier 90 % of price charged for supply of goods of like
kind and quality by the recipient to his customer not being related person
• Value as determined by operation if Rule 4 or Rule 5
Rule 4 : Value of supply based on cost
• 110 % of the cost of production or manufacture or cost of acquisition of such
goods or cost of provision of such services
Rule 5 : Residual Method
• Value shall be determine using reasonable means consistent with the principles
and general provision of section 15 and these rules.
Krunal K Shah & Co

33. Input Tax Credit

34. Input Tax Credit – Section 16 to 21
Sec. 2(59) – “input” means any goods other than capital goods used or intended to be used by a
supplier in the course or furtherance of business.
Sec. 2(19) – “Capital Goods” means goods, the value of which is capitalised in the books of
account of the person claiming the input tax credit and which are used or intended to be used in
the course or furtherance of business.
Sec. 2(60) – “input services” any service used or intended to be used by supplier in the course or
furtherance of business.
Sec. 2(62) – “input tax” in relation to registered person, means the central tax, State Tax,
integrated tax or union territory tax charged on any supply of goods or services or both made to
him and includes – IGST on imports, tax payable under reverse charged mechanism.
Krunal K Shah & Co

35. Input Tax Credit – Section 16
Every registered Person
subject to such conditions and restrictions as may
be prescribed and in manner specified in section 49
entitled to take credit of input tax charged on any
supply of goods or services or both to him
which are used or intended to be used in the
course or furtherance of his business
said amount shall be credited to the electronic
credit ledger of such person.
Krunal K Shah & Co

36. Input Tax Credit – Section 16
Conditions for entitlement of input tax credit
• Possession of tax invoice or debit note issued by supplier or other document as
may be prescribed
• He has received the goods or services or both
• Subject to the provision of section 41, tax charged in respect of supply has been
actually paid to the government
• Return furnished u/s 39
where goods are received in lots, credit entitled upon last lot or installment
where recipient fail to pay to the supplier value along with tax payable within a
period of 180 days amount equal to input tax credit availed by the recipient shall
be added to his output tax liability.
Krunal K Shah & Co

37. Input Tax Credit – Section 16
When depreciation
claimed on tax
component under
Income tax Act, 1961
credit attributable shall not
be allowed
Time limit for taking
credit -
Due date of return for the
month of September
following the end of year of
such invoice or due date of
furnishing Annual return
whichever is earlier.
Krunal K Shah & Co

38. Reversal of Input Tax Credit on goods and/or
services – Section 17
Partly for business Vs.
partly for other
purpose :
Credit attributable
to business purpose
only allowed
Partly for taxable
including zero rated
Vs. partly for exempt
supply
Credit attributable
to taxable including
zero rated supply
only allowed
Krunal K Shah & Co

39. Input Tax Credit – Section 17(5) – Blocked credit
• Motor vehicles and other conveyances
except for used in specific purpose
• Food beverages, outdoor catering,
beauty treatment, health services,
cosmetic and plastic surgery except he
is into business of the same
• Rent-a-cab, life insurance and health
insurance except where government
notifies the services which are
obligatory for an employer or he is in
to business of the same
• Travel benefit extended to employee
• Work contract services for construction
of an immovable property (other than
plant and machinery)
• Goods and/or services received by
taxable person for construction of an
immovable property on his own
account
• Goods and/or services used for
personal consumption
• Goods lost, stolen, destroyed, written
off or disposed of by way of gift or
free samples
“Plant and Machinery” means apparatus, equipment, and machinery fixed to earth by foundation
or structural support that are used for making outward supply of goods or services or both and
includes such foundation and structural support but excludes –
 Land and building or any other civil structure
 Telecommunication tower; and
 Pipelines laid outside factory premises
Krunal K Shah & Co

40. Utilization order Chain of Input tax credit –
Section 49
CGST CGST IGST SGST
SGST SGST IGST CGST
IGST IGST CGST SGST
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41. Registration

42. Registration : section 22 to 30
Every supplier shall be liable to be registered under this Act in the state or Union territory, from where he
makes taxable supply if his aggregate turnover in the financial year exceeds twenty lakh rupees
For special category states aggregate turnover limit is ten lakh rupees
Every person liable to registered shall apply for registration in every state in which he is so liable within
30 days
One registration in one state.
If person has multiple business verticals in the state, he may be granted a separate registration for each
business vertical.
Person may apply voluntarily
Casual taxable person or non resident taxable person shall apply for registration at least 5 days prior to
commencement of business
Input service distributor has status quo provisions for registration
Person having a unit in SEZ shall or being a SEZ developer shall make a separate application for
registration as business vertical distinct from other unit
Krunal K Shah & Co

43. Compulsory registration in certain cases
• Person making any inter-state outward supply
• Casual taxable persons making taxable supply
• Person required to pay under reverse charge
• Person required to deduct TDS
• Person who makes taxable supply on behalf of other taxable person whether as an
agent or otherwise
• ISD
• Person who supply goods or service through other than supplies specified in
section 9 (5), through such electronic commerce operator who is required to
collect TCS u/s 52
• Every electronic commerce operator
• Every person supplying online information and database access or retrieval
services from a place outside India to person in India , other than registered
person
Registration : section 22 to 30
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44. Walk through of major
procedures and compliance

45. Returns under GST – Section 37 to Section 48
Return Form Return particular Due Date
GSTR - 1 Outward Supplies 10th of the next month
GSTR – 2 Inward Supplies 15th of the next month
GSTR – 3 Monthly Return 20th of the next month
GSTR – 4 Return by composite dealer 18th of next month
GSTR – 5 Return by non resident tax
payer
Within 7 days of the last day of
registration
GSTR – 6 Return by ISD 13th of next month
GSTR – 7 TDS return 10th of next month
GSTR – 8 TCS Collected 10th of next month
GSTR – 9 Annual Return 31st December of next FY
GSTR – 10 Final return at the time of
cancellation
3 months from the date of
cancellation or order of
cancellation which ever is later
Krunal K Shah & Co

46. Refund – Section 54
Application
• within 2 years from the relevant date
Refund allowed only in following cases
• Exports ( Including Zero rated supplies
• Credit accumulation on account of inverted duty structure on outward supplies other than
nil rated and fully exempt
Process
• within 60 days from the date of application
Refund grant
• On receipt of application and all documents, 90% on provisional basis
• balance will be granted within 60 from the date of application after due verification.
Small Refund
• For less than 2 lakhs only declaration and certification by the applicant of non passing of
incident of tax are required
Krunal K Shah & Co

47. Payment – Section 49
Type of Payment
• CGST, IGST, SGST
• TDS & TCS
• Interest, penalty, fees or any other payment
Modes of Payment
• Internet Banking through authorized bank
• Credit card or Debit Card through the authorized bank
• NEFT or RTGS from any bank
• Over the Counter payment (OTC) up to `.10000
Due date of Making Tax Payment
• CGST/SGST/IGST = 20th of succeeding month depending upon tax payer i.e.
normal or composite
• TDS/TCS =10th of the succeeding month
Krunal K Shah & Co

48. Job work procedure – Section 143
Principal may
under
intimation
Send any
inputs or
capital goods
Without
payment of
tax
To job-worker
and from there
subsequently
send to another
job worker
Bring back input, capital goods
(other than moulds, dies, jigs and
fixtures, or tools
• Within 1 year – Inputs, 3 year -
capital goods
• To any of his place of business
without payment of tax
Directly Supply such inputs or capital
goods
•within 1 year – Inputs, 3 year -
Capital Goods
•In India – on payment of tax, export –
without payment
Krunal K Shah & Co

49. Job work procedure – Section 143
• Condition for direct supply from Job-work place
– Such place of business of job-worker has been declared by principal as his
additional place of business, except in following cases
• Job-worker(“JW”) is registered u/s 25
• Principal is engaged in the supply of such goods as may be notified
• Responsibility for keeping proper accounts for inputs or capital goods shall lie with
the principal
• Where input or capital goods are not received back within 1 year or 3 year
respectively, it shall be deemed that such inputs or capital goods (other than
moulds etc.) had been supplied on the day when said inputs or capital goods were
sent out.
• Any waste and scrap generated during the job-work may be supplied by the JW
directly from his place on payment of tax if he is registered or by principal if JW is
not registered
Krunal K Shah & Co

50. Transitional Provisions

51. Transitional Provisions – Section 139 to 142
Migration of existing taxpayer
Treatment of existing Input tax credit
Unavailed CENVAT credit of Capital Goods
Credit entitlement to specific persons
CENVAT Credit of Excise duty and CVD to person other than manufacturer and
service provider
Treatment of Goods or service in transit
Jobwork
Krunal K Shah & Co

52. Migration of existing taxpayers to GST- Section
139
Every registered person under any of existing laws and
having valid PAN shall be issued a certificate of
registration on provisional basis
Provisional certificate would be valid for the
period of 6 months or such extended period
Final Registration Certificate will be issued by
competent authority
Provisional Registration certificate issued to
person not liable for registration under GST shall
be deemed to have been cancelled upon filing
application
Krunal K Shah & Co

53. Treatment of existing Input tax credit
Whom
• Registered taxable
person
How much
• Amount of CENVAT
credit carried forward in
the return relating to
the period ending with
the day immediately
preceding the
appointed day
furnished under existing
laws
Conditions
• Amount must be
eligible as per GST Acts
• All the return of six
month immediately
preceding the
appointed day have
been furnished
• Credit is not pertaining
to goods manufactured
and cleared under such
exemption notification
as are notified
• Submit declaration in
Form GST TRAN-1
within 90 days of
appointed day
Krunal K Shah & Co

54. Unavailed CENVAT credit of Capital Goods
Whom
• Registered
Taxable
Person
How much
• unavailed
CENVAT credit
Conditions
• It must be
admissible
under existing
law as well as
GST Acts
Unavailed CENVAT
Credit
Aggregate CENVAT
Credit
Amount of CENVAT
credit already
availed under
exiting law
Krunal K Shah & Co

55. Credit entitlement to specific persons
Whom
• Not liable to registered
under existing law
• Engaged in manufacturing
of exempt goods or
services
• Providing work contract
services
• Availing benefit of mega
exemption list service
• First stage or second stage
dealer
• Register importer
• Depot of manufacturer
How much
• Credit of eligible duties in
respect of inputs held
• in stock,
• semi-finished goods or
• finished goods
• on appointed day
Conditions
•Such input or goods now
used or intended to be used
for making taxable supplies
under GST regime
•Registered person is eligible
for input tax credit on such
inputs under GST Acts
•Having possession of invoice
or other prescribed
documents evidencing
payment of duty
•Such invoice or documents
were not issued earlier than
twelve months immediately
preceding the appointed day
•Supplier of services is not
eligible for any abatement
under GST Act
Krunal K Shah & Co

56. CENVAT Credit of Excise duty and CVD to person
other than manufacturer and service provider
Whom
• Register person
• Not registered under
excise law
• Not in possession of
invoice or any other
documentary
evidence in respect of
duty
• Input tax credit held
in stock on appointed
day
How much
• @ 60% if goods attract
central tax equal or
more than 9%
• @ 40% if goods attract
central tax less than 9%
• If integrated tax paid on
such goods the amount
of credit allowed @30%
and 20% respectively of
the said tax
Condition/ procedure
• This scheme is available
for 6 tax period from
the appointed day
• Such goods were not
having absolute
exemption or nil rated
• Document for
procurement is
available
• Submit prescribed
statement i.e. GST
TRAN 2
• Stock of goods should
be easily identifiable by
the registered person
Krunal K Shah & Co

57. Treatment of Goods or service in transit
Goods or services
supplied under
present laws
Received on/or after appointed
dayDuty/taxes has been
paid under existing
laws
Entitled to take credit
provided
Document recorded in books of
accounts
Within 30 days from an
appointed days
Krunal K Shah & Co

58. Transitional provision relating to job-work for goods sent
under existing law received on or after appointed day
Input
Removed as such or
after partially
process
For further process ,
testing, repair or any
other purpose
Semi Finished Goods
Removed from place
of business
For carrying out
certain
manufacturing
processes
Finished goods
Removed without
payment of duty
For carry out test or
for any other process
not amount to
manufaturing
Return to factory or place
of business after due
process within 6 months
Return to factory or place
of business after due
process after 6 months
No Tax Payable ITC availed shall be
recovered
• Selling of goods in case of semi finished goods and finished goods directly from jobworker premises shall
be on payment of tax within India and without payment of tax for export within six month
• Manufacturer and jobworker required to file declaration
• 6 month period can be extended by further 2 month by commissioner

59. Goods return after appointed day on which duty
has been paid
Duty paid
goods
removed/sold
not earlier
than 6
months from
the appointed
day
Return from
registered person
It would be
considered as
supply by that
person
Return from
unregistered
person
Within 6 months
to any place of
business
Refund available
After 6 months to
any place of
business
No refund
available
Krunal K Shah & Co

60. Contract Price Revision after appointed day–
Section 142(2)
Revision
Upward
Supplementary
invoice or debit note
within 30 days of such
revision under GST
Downward
Credit Note within 30
days of such revision
under GST
Krunal K Shah & Co

61. Other Miscellaneous Issues in Transition
• Refund – every claim of refund of duty or tax relating to existing laws before, on or
after shall be disposed of in accordance with the provision of existing laws
• Every proceeding of appeal relating to existing law shall be disposed of in
accordance with the provision of existing laws and amount recoverable shall,
unless recovered under existing law, be recovered as an arrear of duty or tax under
GST Act.
• No tax shall be leviable under GST Acts to the extent the tax was leviable under
existing laws notwithstanding to provision of time of supply.
• Goods sent on approval basis within 6 months before appointed day
– Rejected or not approved than no tax payable if returned within 6 months
Krunal K Shah & Co

62. Anti Profiteering – Section 171
Basic concept
• Any reduction in rate of tax on any supply
• Benefit of Input tax credit (ITC)
• Shall be passed on to the recipient
• By reducing prices of supply
Central Government may on recommendations of council, notify,
authority for examination of basic concept conditions are complied.
Authority shall exercise such power and functions as may be
prescribed
Krunal K Shah & Co

63. Action Points

64. Major aim in GST Business Transformation
No Business
disruption like
“demo effect”
100 %
compliance
Informed
strategic
decision
Krunal K Shah & Co

65. GST Business Impact Analysis
Mapping
of “As-Is”
scenario
Simulation
of
transactions
in GST
Regime
Evaluation
and
optimization
of available
permutation
and
combination
Derivation
of optimal
solution
Krunal K Shah & Co

66. GST Business Impact Analysis Areas
•Updating of masters
•Ready report for
compliance
•System changes
•Correct data capturing
•Tax-credit, payments and receipt
accounting
•Refreshing SOPs
•Reporting and Compliance
changes
•Awareness Workshop
•Train material and IT training
•Valuation
•Time and Place of
Supply
•Classification
•Tax credit eligibility
•Procurement stream
•Operational areas
•Distribution
•Make or buy
•Working capital
Supply Chain Tax treatment
IT
infrastructure
update
Record to
Report and
training
Krunal K Shah & Co

67. Highlights of key impact area
• Sales price revision considering anti-profiteering provision
• Profit margin considering sales price constant
• Treatment of exchange offer, discounts etc.
• Free supplies, goods stolen, waste, scrap
• Supply to SEZ
• Goods return
• Valuation for stock transfer
• Distribution channel review e.g. C & F, distributors, warehousing
• Inverted duty structure in some cases (e.g. in some textile items)
• Composite supply Vs. Mixed Supply
• Procurement from un-registered person
• Bill to –Ship to transaction treatment
• Job-work
• ERP Software
Krunal K Shah & Co

68. “The world is changing very fast. Big will not beat
small anymore. It will be the fast beating the slow. “
~Rupert Murdoch

69. Krunal K Shah & Co
Chartered Accountants
475, BBC Market, Nr. Victoria Jubilee Hospital,
Panchkuva, Ahmedabad – 380002
Mo. - 9408256130
Email – cakrunalkshah@gmail.com
Thank You !

70. Disclaimer :
The content of this document are solely for information purpose. It does not
constitute professional advice or recommendation of the firm. Neither author nor
firm and its affiliates accepts any liabilities for any loss or damage of any
information in this document nor for any actions taken in reliance thereon.
While due care has been taken in preparing this document, the existence of
mistakes and omissions herein is not ruled out.