Presentation on GST

1. Paradigm Shift in Compliances

2. TOPICS COVERED
1. Income Tax Updates (As per Finance Bill 2017 passed in the parliament)
2. Chart of Compliances
3. Issue of Notices by Registrar of Companies
4. Goods and Services Tax
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3. INCOME TAX UPDATES
Income tax laws witnessed some significant changes in the Finance Bill 2017 (passed in the Parliament on 22nd
March, 2017).
Finance bill 2017 has laid emphasis on Ease of Doing Business and Promotion of Digital Economy. Updates have
been discussed in the light of these two elements of Finance Bill 2017.
1. Corporate tax rate of 25% for financial year 2017-2018 onwards. Applicable for companies registered under
Companies Act, 2013 and having turnover below INR 50 Crores.
2. Profit linked deduction exemption available to start-ups for 3 out of 7 years as compared to 3 out of 5 years as
applicable earlier.
For carry forward of losses in respect of start-ups , condition of holding 51% of voting rights by original
promoter(s) has been relaxed subject to condition that holding of original promoter(s) continues.
3. MAT credit can now be carried forward to 15 years instead of 10 years as applicable earlier.
4. For start-ups presently operating in non-corporate form who opt for presumptive taxation, threshold limit for
audit under income tax has been increased from INR 1 Crore to INR 2 Crores.
5. Presumptive profit @ 6% if payments received through digital mode or banking channels . It is available to
non-corporate entities.
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4. INCOME TAX UPDATES
Cash is King - Quaint Idea
After demonetisation and passage of Finance Bill 2017, Cash is no longer King. Why?
Cash transactions have been restricted in following manner:
1. If cash transaction exceeds INR 2 Lakhs – penalty equal to transaction amount will have to be paid. Penalty is
on person receiving the money.
2. Cash donations to Charitable Organisations above INR 2000 will no longer be eligible for tax deductions under
Chapter VI-A of Income Tax Act.
3. Individual cash transaction restricted to INR 10000 as compared to INR 20000 applicable earlier.
4. Capital transactions (purchase of assets) above INR 10000 will be disallowed. If an asset exceeding value of
INR 10000 is brought in cash, it cannot be added to block of assets in financials.
5. Detailed cash books to be presented in income tax assessments.
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5. 5
CHART OF COMPLIANCES
SCOPE OF WORK FREQUENCY DUE DATE
TDS Returns Quarterly Q1 - 31st July
Q2 – 31st October
Q3- 31st January
Q4 - 31st May
Service Tax Returns Bi-annual Period ended 30th September - 25th
October
Period ended 31st March – 25th April
MVAT and CST Returns Monthly 21st of following month
Profession tax returns – employer Annual – if tax liability is below Rs
50,000
Monthly - f tax liability is exceeds Rs
50,000
31st March of financial year
Last date of month
Secretarial compliances : Filing of
Annual returns
Financial statements
Annual
Annual
60 days from date of AGM
30 days from date of AGM
Statutory audit and tax audit Annual 30th September

6. 6
ISSUE OF NOTCIES BY REGSITRAR OF COMAPNIES

7. Road to meet 1st July Deadline
Central GST, Integrated GST, Union Territory GST and Compensation Law bills have been presented by Finance
Minister in Parliament on 27th March, 2017. For GST be effective from 1st July, 2017 it is imperative that these are
passed by both Houses of Parliament before session ends on 12th April, 2017.
Subsequently, State GST bill needs to be approved by state assemblies before final roll out GST can take place.
All the five bills have already been cleared by GST Council and Union Cabinet.
Rates
Four tier rated have been proposed in slabs of :
5%
12%
18%
28%
40% peak rate for financial emergencies can be invoked by the government.
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8. GST Migration
Presently, GST migration live. Last date is 31st March, 2017.
For newly registered tax payers i.e. post January, 2017 GST migration is yet to start.
Registration
• If turnover exceeds INR 2 Million. Turnover includes taxable/non taxable goods, exempt supplies and export of
goods and services.
• Compulsory registration in few cases: inter-state supplies, non-resident tax payers, agents, dealing through
e-commerce companies, e-commerce companies, etc.
• Separate registration for each state of operations
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9. Returns
• Return for outwards supply (GSTR -1) to be filed by 10th of following month.
Invoice uploading is mandatory for B2B business and Input Tax Credit will be available by buyer/recipient.
• Return for Inwards Supply (GSTR-2) to be filed by 15th of following month.
Large portion of this will be auto populated from GSTR -1
• Return in Form GSTR-3 which contains consolidated details of GSTR 1 and 2 to be filed by 20th of following
month.
• If there is mismatch noticed on cross-referencing of GSTR-1 and GSTR-2 same will be intimated to both the tax
payers. Based on intimation, rectification needs to be done.
• If supplier fails to rectify his returns, the mismatch in tax amount will be
recovered from recipient of supply/services.
• GSTN will provide of uploading of invoice on daily basis. Tax payer should insist its suppliers to do the same so
as to avoid mismatches and consequent losses of input tax credit at later point of time.
• GST will make interaction with government on almost daily basis.
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10. GSTN is an enabling eco-system for tax payers and tax authorities. It is front end business process designed to
provide tax payer friendly services such as:
• Tax payer registrations
• Invoice upload, auto-drafting of purchase register of buyer
• Return filing
• Tax payment including integration with banks
• Input tax credit, cash ledger and liability register
• MIS reporting
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11. Transitional Provisions
• Existing credit of State VAT/ Service tax/Excise duty will be carried forward to GST.
• If contract for supply of service is made under earlier law and if delivery takes place after GST comes into
effect then tax will be payable at GST rates.
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12. Thank You !!
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