GST Regime - Panel Discussion With Neel Ratan

SAP GST India Forum
Neel Ratan
Executive Director
PricewaterhouseCoopers,
e-Governance in India
www.pwc.in
India on Brink of GST

Some unanswered questions…
Content
Section 1 Enactment Timelines
Section 2 GSTN Processes
Section 3 Rate debate
Section 4 Place of supply rules and credit
Section 5 Transition provisions
March 2015
PwC Slide 3
Content
March 2015
PwC Slide 4
Enactment Timelines
Milestones Timeline
Lok Sabha passes GST bill √
Rajya Sabha passes GST bill Aug, 2015
Ratification by not less than 15 states Dec, 2015
Formation of GST council Jan, 2016
Enactment of GST laws Mar– Dec, 2016
February 2015
PwC Slide 5
Content
Section 3 Rate Debate
March 2015
PwC Slide 6
GSTN Process - Registration
GST Registration Process GSTN Common Portal

• PAN based single • Common interface between
registration for CGST, SGST & Taxpayers & Tax Authorities where
IGST Taxpayers can fill up the online
• Per State registration - GST Registration form
Different verticals of one • Upon submission of the GST
business may obtain separate registration application online at
registration the portal, information would be
• Existing Taxpayers – Transition shared with the State & Central
system for migration Tax Authority for their approval
• Registration for each premises
• Once the registration application is
in a State not required
approved by both Registration
• Addition of place of business
Certificate (GSTIN) will be
under each registration allowed
issued online at the GST
• Transfer of credit to another
Common Portal
unit in a different State not
allowed
PwC Slide 7
GSTN Process - Returns
GST Returns Process GSTN Common Portal

• Unified return form for all • Interface for GST registered
States/ One Return for CGST, taxpayers to upload their invoice
SGST & IGST level sales details by a specified
• All returns to be electronic cut-off date
• Return expected to be Monthly • Based on the sales details
(Quarterly for compounding uploaded by the supplier, GSTN
dealers)/ Annual Common Portal would auto-draft
• All details of sale (invoice wise) the purchase statement of the
to be submitted, purchase counterparty purchaser on a near
details to be populated from real time basis
sales of counterparty dealers
• Draft return of a taxpayer to be
• State specific return as State
generated at the Common Portal
unit is an independent unit
after sales-purchase details are
• IGST assessment by State where
captured
return is filed
PwC Slide 8
GSTN Process - Payments
GST Payments Process GSTN Common Portal

• Standardized single challan • Taxpayers would be able to
for CGST, SGST and IGST calculate their tax liability and
• Different accounting codes make online payments
for various types of transactions • Based on draft return, taxpayer
• Mode of payment of tax can be can prepare challan at the common
online or offline (OTC) portal, pay due tax online through
• Tax to be paid prior to filing banking system before filing the
GST return GST return
• Tax to be paid wherever supply
• Electronic challan generation
takes place
at the portal mandatory in case
• SGST to go automatically to the
of manual payments (OTC) as well
State of taxpayer as per
registration • All Banks authorized by RBI to
• Frequency of tax payment as be available on GSTN Common
per return Portal
PwC Slide 9
GSTN Process - ITC Mechanism & IGST Settlement
GST Cross Credit Utilization GSTN Common Portal

• CGST/ SGST/ IGST credit can • To provide Dealer Ledger to
be utilized for offsetting view consolidated summary of
liability against same heads their tax liability, payment history,
in that order ITC entitlement and utilization (set
• CGST/ SGST credit available off against tax liability), refunds –
after offsetting respective anytime on any device
liability to offset IGST liability • Invoice matching &
• Credit of CGST cannot be used communication on discrepancy
to offset SGST liability vice-
• Credit Reversal of unmatched
versa
transactions in the next return
• Credit of IGST available after
offsetting IGST liability to offset • Calculation of IGST Settlement
CGST/ SGST liability (in order) amount based on cross-utilization
• IGST on Imports: as per of credit by dealers
return (not like customs duty) • Intimation of successful
settlement to tax authorities
PwC Slide 10
GSTN Ecosystem
Integration of existing IT systems with GSTN
CTD GSTN IT
Tax Authority Taxpayer
Officer System
Interface File/ API

Centre/ GSTN
State
Common
Tax
System Portal
Interface File/ API
Centre/
State Tax GSTN
Database Database
Accounting Network
Agencies & Interface File/ API of Banks
Treasuries & RBI
PwC Slide 11
Content
March 2015
PwC Slide 12
Rate of GST- Across the Globe
• Rates of GST in other countries are:
FM has assure that the rate of GST will be less

than the speculated rate of 27% Comment:
The present indirect tax levy
on goods is: 12.5% (Excise
Duty) + 14% (VAT)
May 2015
PwC Slide 13
Rate of GST – Concessions/incentives
What would happen to current incentives:

• State incentives:
- Area based exemptions
- VAT deferment schemes
• Central incentives:
- Product specific concessions
- Area based incentives
May 2015
PwC Slide 14
Content
March 2015
PwC Slide 15
Place of supply rules and credit
Distribution of accumulated credit at

corporate office?
• Head office would incur standard costs and
accumulate input credit
• HO might have Nil or marginal output tax
liability
Credit utilization dependent on seller
declaration?
• Auto-drafting of purchase statement of a dealer
from the invoice based sales details uploaded by
the counterparty dealers
Credit on Businesses’ indirect spends by
employees?
May 2015
PwC Slide 16
Content
March 2015
PwC Slide 17
Transition provisions
• Refund, not credit – Accumulated credit at the

cut off date cannot be carried forward
- Input and input services - CENAVT
- Capital goods – CENVAT and VAT
- VAT credit
• Defer capital expenditure/purchases
• Treatment of Way-Bill/ C-Form/
Checkposts
• Treatment of Existing Area based
Exemptions/ Benefits under State
Industrial Policy
• Dual Assessment for the Taxpayer?
May 2015
PwC Slide 18
Thank You
© 2015 PricewaterhouseCoopers Private Ltd. All rights reserved. “PwC”, a registered

trademark, refers to PricewaterhouseCoopers Private Limited (a limited company in India) or,
as the context requires, other member firms of PwC International Limited, each of which is a
separate and independent legal entity.
Panel Discussion: GST Regime:
Are we ready?
Dr J N Singh
Additional Chief Secretary, Finance Dept., with
Shashank Priya, Vimal Goel additional charge of post of Revenue Dept.,
Commissioner, CBEC EVP, GSTN Commissioner of Land Reforms in Gujarat
Dr H P Kumar,
Chairman-cum-Managing Director,
Arun Subramanian
National Small Industries
VP, Globalization Services, SAP Labs India
Corporation

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SAP GST India Forum

India on Brink of GST

Section 1 Enactment Timelines

Section 2 GSTN Processes

Section 3 Rate debate

Section 4 Place of supply rules and credit

Section 5 Transition provisions

Section 1 Enactment Timelines

Section 2 GSTN Processes

Section 3 Rate debate

Section 4 Place of supply rules and credit

Section 5 Transition provisions

Section 1 Enactment Timelines

Section 2 GSTN Processes

Section 3 Rate Debate

Section 4 Place of supply rules and credit

Section 4 Transition provisions

GST Registration Process GSTN Common Portal

GST Returns Process GSTN Common Portal

GST Payments Process GSTN Common Portal

GST Cross Credit Utilization GSTN Common Portal

Interface File/ API

Interface File/ API

Section 1 Enactment Timelines

Section 2 GSTN Processes

Section 3 Rate debate

Section 4 Place of supply rules and credit

Section 5 Transition provisions

• Rates of GST in other countries are:

FM has assure that the rate of GST will be less

What would happen to current incentives:

Section 1 Enactment Timelines

Section 2 GSTN Processes

Section 3 Rate debate

Section 4 Place of supply rules and credit

Section 5 Transition provisions

Distribution of accumulated credit at

Section 1 Enactment Timelines

Section 2 Rate debate

Section 3 Place of supply rules and credit

Section 4 Transition provisions

• Refund, not credit – Accumulated credit at the

© 2015 PricewaterhouseCoopers Private Ltd. All rights reserved. “PwC”, a registered

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