This presentation includes following topics: 1. Major changes in GST from it’s implementation 2. Budgetary changes under Indirect Taxes 3. Grey areas under GST - Clarity required 4. E-way bill implementation 5. GST compliance - Our request

1. Has GST stabilised?
Yes and no
Optitax’s
R
3 Feb 2018
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2. Major changes in GST from it’s implementation
Budgetary changes under Indirect Taxes
E-way bill implementation
Index
Grey areas under GST - Clarity required
GST compliance - Our request
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3. Major changes in GST from it’s implementation
Budgetary changes under Indirect Taxes
E-way bill implementation
Grey areas under GST - Clarity required
GST compliance – Our request
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4. 01
Turnover limit under composition scheme has been increased from Rs.75 lacs to Rs.1 Cr
Deemed export category notified
• Supply of goods by a registered person against Advance Authorisation
• Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
• Supply of goods by a registered person to Export Oriented Unit
• Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs,
dated the 30th June, 2017 (as amended) against Advance Authorisation
Ma jor c h anges in G ST f r om th e d a te of its im p lem enta tion
Reverse charge mechanism does not apply on supplies received from unregistered person for both intra &
inter State till 31 March 2018
Rates changed under composition scheme
• Manufacturers 1%
• Supplier of restaurant services 5%
• Trader 1%
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5. 05
Inter State supplier of service having aggregate turnover upto Rs.20 Lakhs are exempted from obtaining
registration under GST
Ma jor c h anges in G ST f r om th e d a te of its im p lem enta tion
Procedure for supply of goods to merchant exporter has been introduced and such supply can be made on
payment of GST @ 0.1%
Upfront exemption for import of service (from outside India) made by SEZ unit/developer
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08 Upfront exemption in Customs for import of goods by an SEZ unit/developer
Time of supply in respect of development rights is notified as time of allotment of constructed area09
No GST on advances received against supply of goods. However, advances received against supply of services
are still liable for tax10
Export and supply to SEZ under letter of undertaking is extended to all registered taxpayers subject to
conditions
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6. 12
Reverse charge mechanism applicable on ocean freight paid on import of goods from outside India till port of
import in India and where value is not explicitly provided value will be treated as 10% of CIF value
Ma jor c h anges in G ST f r om th e d a te of its im p lem enta tion
Royalty/license fees to the extent included in the transaction value for the purpose of payment of customs
duties is exempted from payment of IGST as import of service under reverse charge
Penalties and fines levied for failure to fulfil any obligations would amount to supply of service and would
attract GST. Penalties and fines imposed by Government authorities are taxable under reverse charge basis
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Rate of exchange of currency has been notified
• Goods: Notified by the Board under section 14 of the Customs Act,1962 for the date and time of supply of
such goods in terms of section 12 of CGST Act
• Services: As per the generally accepted accounting principles for the date of time of supply of such services
in terms of section 13 of CGST Act
Taxpayers divided into two category for ease of compliance for small taxpayers:
• Taxpayers having turnover upto Rs.1.5 Cr – Quarterly return
• Taxpayers having turnover more than Rs.1.5 Cr – Monthly return
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Ma jor c h anges in G ST f r om th e d a te of its im p lem enta tion
Exclusion from value of exempt supply:
• Value of supply of services where place of supply in Nepal or Bhutan, against payment in Indian Rupees
• Value of interest received on loans, advance etc
• Value of supply of service by way of transportation of goods by a vessel from the customs station of
clearance in India to a place outside India
Value of securities would be 1% of sale value of such securities which will be considered as exempt supplies
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No refund of IGST paid on export of goods is admissible if inputs are procured under Advance Authorization or
EPCG or deemed export or for merchant exports
If inputs are procured under Advance Authorization or EPCG or deemed export or for merchant exports refund
of accumulated unutilized credit would be available to the extent of other inputs & input services used for
such export
IGST on import of goods for EOU is exempted till 31 March 201819
IGST on import of goods under Advance Authorization, EPCG etc., is exempted till 31 March 201820
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8. 21
Ma jor c h anges in G ST f r om th e d a te of its im p lem enta tion
Waiver of late fee of GSTR-3B for July to Sept
Reduction of late fee of GSTR-3B from Rs.100 to Rs.25 & Rs.10 for nil return22
23 Reduction of late fee for GSTR-1, GSTR-5, GSTR-5A & GSTR-6 to Rs.25 & Rs.10 (nil return)
Kindly note that rate of interest has not been reduced
• 18% - Late payment of GST liability
• 24% - Wrong availment or utilization of input tax credit
Duty credit scrips are fully exempted from 13 October 2017
It will attract reversal of input tax credit (common credits)
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9. Major changes in GST from it’s implementation
Budgetary changes under Indirect Taxes
E-way bill implementation
Grey areas under GST - Clarity required
GST compliance – Our request
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10. Change in name from ‘Central Board of Excise and Customs’ to ‘Central Board of Indirect Taxes and Customs’
Bu d getar y c h an ges u nder In d ir ec t Ta xe s
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Social Welfare Surcharge (SWS) for education, health & social security on imported goods @ 10% is introduced03
SWS to be calculated on aggregate duties of customs u/s 12 of Customs Act excluding the following duties
• Safeguard duty
• CVD
• Anti-dumping duty
• SWS
SWS will not calculated on IGST to be paid on imported goods04
SWS in excess of 3% is exempted on certain notified goods05
Education and secondary education cess abolished02
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11. Major changes in GST from it’s implementation
Budgetary changes under Indirect Taxes
E-way bill implementation
Grey areas under GST - Clarity required
GST compliance – Our request
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12. 01
G r ey a r ea s u nder G ST - Cla r ity r eq uir ed
Lack of alignment between FTP & GST provisions there is no clarity for inter unit clearance between EOU and DTA
units in the same State and having same PAN where such units obtained single registration
Transitional provisions do not take care of certain situations like taking credit of duty paid on redemption of
EPCG licence, advance authorisation etc post December 201702
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In terms of circular 33/2017 of Customs high sea sale transactions is liable to tax at the point when bill of entry
is to be filed, however, a contrary circular 46/2017 of customs specifies tax to be levied on goods kept in customs
bonded warehouse if sold before ex-bonding (akin to high seas sale considering amendment in the definition of
customs area from 1 July 2017) would attract tax twice i.e. once at the time of such sale and again when bill of
entry is filed
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Treatment of high sea sale and supply of service where place of supply is outside India whether to be treated as
exempt supply or otherwise
05 Applicability of place of supply provision to SEZ supply is disputed in certain States
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Sale of development rights by land owner to builder as well as sale construction of service by builder to land
owner are both taxable. Thus leads to double taxation
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GSTR-1 does not take account of consolidated credit/debit note and individual credit and debit notes needs to
be raised
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13. Major changes in GST from it’s implementation
Budgetary changes under Indirect Taxes
E-way bill implementation
Grey areas under GST - Clarity required
GST compliance – Our request
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14. A p p lic ability
Every registered person/unregistered person (Supplier/Recipient/Transporter) who causes movement of goods of
consignment value exceeding fifty thousand rupees
• In relation to a supply : Outward supply, export, deemed export, sales return etc
• For reasons other than supply : Job work, exhibition, trade fair etc
• Due to inward supply from an unregistered person
Exceptions to consignment value more than fifty thousand rupees:
• Inter State movement of goods for job work
• Handicraft goods movement from one State to another by an unregistered person
• Registered/Unregistered person may generate EWB even if consignment value is less than fifty thousand rupees
Valuation:
Valuation would be as per Section 15 of CGST Act,2017 Read with CGST Rules made thereunder
• Supply : Transaction value/Open market value/Value of supply of goods of like kind & quality etc
• Other than supply : Approximate value consistent with Section 15 of CGST Act
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15. Ty p e of EWB f or m s
Type of
forms
Part A Part B
EWB – 01 Transaction details
(Transaction type, sub type, document type, number &
date etc)
Consigner details
(Name, GSTIN, address, place, pin code, state etc)
Consignee details
(Name, GSTIN, address, place, pin code, state etc)
Item details
(Product name, description, HSN, Quantity, UQC,
Taxable Value, Rate, etc)
Mode of transport
(Road, Rail, Air, Ship)
Approximate Distance (in KM)
Transporter Name
Transporter ID
Transporter Doc. No & Date
OR
Vehicle number
EWB – 02 CEWB is required for transporting multiple consignment in a single vehicle
EWB – 03 Verification report within 24 hrs Verification report within 3 days
EWB – 04 For detention of vehicle for verification for more than 30 minutes
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16. Va lid ity p er iod of EWB
• One day – If distance of movement is up to 100 km
• One additional day – for every 100 km or part thereof thereafter
Re q u ir ed d ocum ents to g enera te EWB
• Invoice/Bill of Supply/delivery Challan related to the consignment of goods
• Transport by road – Transporter ID or Vehicle number
• Transport by rail, air, or ship – Document number issued by respective transporter e.g. Airway bill, lorry receipt etc
Ef f ectiv e d a te
• EWB Rules will be rolled out on a trial basis from 16 Jan 2018 on http://ewaybill.nic.in
• The EWB for inter-state transport will be implemented in India from 1 February 2018 on http://ewaybillgst.gov.in
• The states can opt to follow the e-way bill system for intra-state transport anytime between 1 February to 1 June 2018
• From 1 June 2018, e-way bill rules for intra-state transport will uniformly apply to all states
As per official twitter account due to technical glitches implementation of e-Way bill has been postponed and date of
its implementation to be notified
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17. Con seq uences f or n on c om plian c e of EWB p r ov ision s
• Penalty of Rs. 10,000/-; or
• An amount equivalent to the tax evaded
Whichever is higher
• Andhra Pradesh
• Arunachal
• Pradesh
• Bihar
• Haryana
• Jharkhand
• Karnataka
• Kerala
• Puducherry(UT)
• Sikkim
• Tamil Nadu
• Telangana
• Uttar Pradesh
• Uttarakhand
N a m e of Sta te s w h ere EWB is m anda tor y for in tr a Sta te m ov em ent
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18. Exe m ption f or EWB g ener ation
• Transport of specified goods as mentioned in Annexure to Rule 138(14) of CGST Rules, e.g. food items, used personal
and household effects etc
• Where the goods are being transported by a non-motorised conveyance e.g. cycle rickshaws, push scooters, hand
carts etc
• Goods transported from port, airport, air cargo complex or land customs station to Inland Container Depot or
Container Freight Station for clearance by Customs
• In respect of movement of goods in areas as may be notified by respective State
• Where the goods, other than de-oiled cake, being transported are specified in the Schedule appended to notification
No. 2/2017- Central tax (Rate) dated the 28th June, 2017
• Where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed
diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel
• Where the goods being transported are treated as no supply under Schedule III of the Act
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19. 19
01
02
0304
05
Web-Online using browser on laptop/desktop/
phone etc (Explained in subsequent slides)
Android based Mobile
App on mobile phones
Via SMS through registered
Mobile Number
Via API i.e. integration of IT system of user
with e-Way Bill System for generation of EWB
Third party based system of
Suvidha Providers (GSP/ASP)
Mod e s of g ener ation of EWB

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http://www.ewaybill.nic.in
E -w a y b ill p or tal

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E-w a y b ill d a shboar d

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E-w a y b ill e n tr y for m

23. Valid e-Way Bill
Invalid e-Way Bill
• The print of an EWB can
be taken only by the
generator and the
transporter of the EWB
• User should have details
of EWB number to print
respective EWB
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E-w a y b ill e n tr y for m

24. Major changes in GST from it’s implementation
Budgetary changes under Indirect Taxes
E-way bill implementation
Grey areas under GST - Clarity required
GST compliance – Our request
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25. 01
G ST Com p lian c e – O u r r equest
Documentation:
• Duplicate document number
• Series of document not maintained properly
• Non preparation of required documents e.g. delivery challan for movement of goods, receipt voucher for
advance, payment voucher for reverse charge, refund voucher for return of advance etc
• Debit/Credit note for purchase/sales return/discount etc
02 Accounting and records:
• Accounting issues under GST – Timely accounting to avoid mis-match in reporting
• Delay in preparation of data for GST returns
• Data to be provided in time to avoid last minute rush
• Incomplete data provided – Booking of sales, purchase invoices
• GST return data not tallying with financials
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26. Raveendra Pethe
Senior Advisor
Mobile : +91 9823 010 562
Email : ravi@optitaxsconsulting.com
Sunil Kumar
Senior Advisor
Mobile : +91 9822 529 390
Email : sunil@optitaxsconsulting.com
Amrendra Chaudhri
Consultant
Mobile : +91 9823 445 595
Email : amrendra@optitaxsconsulting.com
Milind Kulkarni
Senior Advisor
Mobile : +91 9823 048 450
Email : milind@optitaxsconsulting.com
Madhav Bapat
Senior Advisor
Mobile : +91 9823 051 284
Email : madhav@optitaxsconsulting.com
Nilesh Mahajan
Consultant
Mobile : +91 8087040710
Email : nilesh@optitaxsconsulting.com
Office address: C-26/11, Ketan Heights, Kothrud, Pune – 411038
Contact no: 020-25421898
Website: www.optitaxsconsulting.com
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