A Unified ultimate destination base duel tax reform in India

1. GST IN INDIA
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2. 8/20/2016 M D GARG & Company, Indore 2
Central
GST Model
State
GST
Model
Dual
GST
Model

3. GST Dual (subsume the taxes)
CGST SGST
Central excise
duty
Service Tax
Add. Duties of
customs in lieu
of excise
Add. duties of
customs in lieu
of sales tax/vat
Central Sales
Tax
VAT/Sales Tax
Entertainment
tax (Unless it is
levied by the
Local Bodies)
Luxury Tax/taxes
on lottery, betting
and gambling
Entry tax in lieu
of Octroi
Any other state
cesses and
surcharges
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4. Reduce
consumption cost
To boost the
economy
Avoiding
cascading
effects
Removal of
multilevel
taxation
India
become
one market
Free flow of
goods across
the country
Decrease
litigation
being
unified
An ultimate unified destination based
dual Tax reform in India
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5. Structure
The GST comprises 27 (25)chapters 178(162) clauses 4 schedules
Schedule Subject
Schedule-I Matters related to supply without consideration
Schedule-II Matters related to supply of goods or services
Schedule-III Liability to be registered
Schedule-IV Government body shall not be treated as a taxable
person [indicative list of activities or transaction].
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6. Supply includes all forms of supply of goods and/or services
such as sale, transfer, barter, exchange, license, rental, lease
or disposal made or agreed to be made for a consideration.
It also includes importation of service, whether or not for a
consideration.
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7. Registration
(Liability to tax will arise if the turnover exceeds Rs. 10.0 Lakh (5.00Lakh)
Compulsory
(Registerable in terms of Shedule –III)
Voluntarily
 Aggregate turnover in a F Y
exceeds Rs. 9.00 Lakh (4.00
Lakh in case North Eastern
State including Sikkim) of a
dealer has to registered
himself by completing KYC
norms, in the state from
where taxable goods and
services are supplied,
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8. 1 & 2 3 to 12 Digit 14 15
State
code
 The way by which registration no. granted to dealer
 Business identification no i.e. BIN
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9. Point of Taxation
 Where the goods are movable, the date on which the goods
are removed for supply to the recipient
 In the case of immovable properties, it will be the
date on which the goods are made available to the
concerned person
 Date of issue of invoice by the supplier
 When payment is given to the supplier
 Date when the receipt of goods is acknowledged by book
entries by the recipient.
(Which ever is earlier)
*** Depend upon the T& C between two parties
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10. Tax Rates
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Merit
(Lower)Rate
For Basic items
Standard Rate
(Most of the
items)
Nil Rate
(for Certain
items)
Special Rate
(for Precious
metals & Articles)

11. Illustration (Same State)
A Wholesale dealer in Madhya Pradesh, supply goods /services
covered under taxable category,
NO cross Utilization of credit would be permitted
Bill NO 1 From
A to B
B to C
(10 % Pr)
B has to
deposit
tax
Goods
value
200/- 220/-
CGST 10% 20/- 22/- 2/-
SGST 10% 20/- 22/- 2/-
240/- 262/- 236.00
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12. Illustration (Other State)
A Wholesale dealer in Madhya Pradesh, supply goods /services
covered under taxable category,
Balance ITC can be adjust with liability of IGST.
Bill NO 1 Bal Input
Credit of B
B to C
(10 % Pr)
B has to
deposit
tax
Interstate
transaction,(
Article
269A(1)
central will
collect the
integrated
goods &
service tax
,(CGST+SGST
)
Goods
value
220.00
IGST 20% 40.00 44.00 4.00
Additional
Tax 1%
2.20 2.20
266.20 6.20
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13. Setoff of ITC
SGST
SGST
IGST
CGST
CGST
IGST
IGST
IGST
CGST
SGST
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Tax Free Supply
Not Available
Zero Rated Supply
ITC Available
Taxable supply
ITC Available

15. Other Issues
• Payment of Taxes through net banking
Refund (dealt with chapter X)
• Application in form before the expiry of 2 Years
from the relevant date
TCS
• E-commerce Operator like
Amzon/Flipkart/Myntra collect the TCS , at the
time of payment rec/debit
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16. Inspection(survey )
(NO restriction in regard to time of inspection)
 Authorized person not below the rank of Joint
Commissioner ,where there is reason to believe that the
someone has EVADE THE TAX through
> Suppressed any transaction or
>> claimed excess input tax credit or
>>> indulged in contravention of provisions of the Act
and its rules,
can inspect goods in transit (clause 60 a&b and
61)/access to business premises (Clause 64).
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17. Search <<60 (2) and 60 (3)>>
 During the inspection or otherwise , Assessing officer not
below the rank of Joint Commissioner has reason to
believe that any goods /any documents/books/things liable
to confiscation with the explanation the above are useful
for or relevant to any proceedings under the Act are
secreted in any place with the retained condition for so
long as may be necessary.
 The Provision relating to seizure are not properly explained
 Power to arrest gives to commissioner , to be carried out by
them through his authorized officer is harsh and
apparently unfair Clause 73 (1) (i) (ii) and 73(2)
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BIG DIFFERENCE
 Patent , Trademark, Software, and copyrights
etc. nowwill be treated as SERVICES
 GDP will be increased by 1 %to 2%

19. Thanks
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