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GST & YOU

© Tally
© Tally Solutions
Solutions Pvt.
Pvt. Ltd.
Ltd. All
All Rights
Rights Reserved
Reserved Business Presentation 1
 oods &
G ST
ervices
ax
2
 28th March 2013 –
Incorporation of
GSTN 14th June 2016 –
Draft Model GST
Law on public
domain
GST Key Milestones
3rd Aug – Rajya
Sabha passes the
Bill

1st Mar - Final

3rd Nov-Finalization Draft of C-GST,
of GST Rates I-GST Laws

1st July – GST

8th Aug – Lok Sabha Implementation
passes the Bill
12th Sept – Cabinet
Approval to form
GST Council 16th Mar - UT-
GST Laws

3
 Why GST

Simple Tax Structure

Eliminating Cascading Effects

Technology Driven System

Increase Revenue

4
 GST?

How is GST going to replace the current taxation

structure?

What would be the applicable TAX RATES under GST

Regime?

5
Tax Components of GST

6
 Taxes Subsumed Under GST

Central Goods & Services Tax State Goods & Services Tax Integrated Goods & Services 7Tax
Determination of GST charge (Intrastate)

Location Place of
of Supply
Supplier

Karnata
ka

Charge
of Tax
Intrastate

CGST SGST

8
Determination of GST charge (Interstate)

Location Place of
of Supply
Supplier

Charge of Tamil
Karnata
Tax Nadu
ka

Interstate

IGST

9
Determination of GST charge (Union Territory)

Location Place of
of Supply
Supplier
Chandig
arh

Charge
of Tax
Intra-
Union
Territory

CGST UTGST

10
Union Territory Goods and Services Tax

GST
Delhi (National Capital Territory of
Delhi) and Puducherry

Andaman and Nicobar, Chandigarh,

Local Transactions
Lakshadweep, Dadra and Nagar,
Daman and Diu

In Union Territory with In Union Territory without

Legislative Assembly Legislative Assembly

UTGST -
IGST ITC UTGST
CGST SGST CGST UTGST

IGST- ITC
UTGST CGST IGST
11
 Indicative Tax Rate structure
Ty p e Rate Goods and Services
Zero Rated 0% Essential items including food
Merit Rate 5% Commonly used items
Standard Rate 12% Bulk of the goods and services. This
includes fast-moving consumer
Standard Rate 18% goods.
Luxury Cars, Tobacco, and Aerated
28%
Demerit Rate drinks
15% Additional Cess

Source : Times Of India, Source : Economic Times,

3rd November 2016 3rd November 2016
12
 GST Workflow

Will it will
What really
bemake movement
the impact of GOODSOF
on MOVEMENT CHEAPER
GOODS and
? SEAMLESS?

What about the REGISTRATION PROCESS?

How will I file my GST RETURNS?

How will I make GST PAYMENT?

How will I adjust my Input Credit? 13

 GST Workflow

Will it will
What really
bemake movement
the impact of GOODSOF
on MOVEMENT CHEAPER
GOODS?and SEAMLESS?

What about the REGISTRATION PROCESS?

How will I file my GST RETURNS?

How will I make GST PAYMENT?

How will I adjust my Input Credit? 14

 GST Eliminating Tax on Tax
SUVs
(Likely Applicable GST Rate
Current Regime GST Regime

Cost of Production 15,00,000 15,00,000

Add: Excise Duty @ 3,60,000 Add: Profit Margin 5,00,000

24%
Add: Profit Margin 5,00,000 20,00,000

To t a l 23,60,000 Add: CGST @ 14% 2,80,000

Add: VAT @ 14.5% 3,42,200 Add: SGST @ 14% 2,80,000

Additional levy @ 4% 14,400 Additional Cess @ 84,000

15%
Dealer Price 27,16,600 26,44,000
15
 Intrastate / Interstate Sales / Branch Transfers
Intrastate Sales Interstate Sales Branch Transfer
(Interstate)
Cost of Production 15,00,000 15,00,000 15,00,000

Add: Profit Margin 5,25,000 5,25,000 5,25,000

Manufacturer
20,25,000 20,25,000 20,25,000
Price
CGST @ 14% 2,83,500
IGST will be charged for Branch Transfers, Sales value remaining same for
SGT @ 14% Intra/Interstate Sales.
2,83,500

IGST @ 28% 5,67,000 5,67,000

Additional cess @ 85,050 85,050 85,050

15%
Dealer Price 26,77,050 26,77,050 26,77,050
16
 Intrastate Unit Transfer (Excise)
Ganesh Manufacturing –
Maharashtr Unit 2
a Excise:
Current Regime:
Excise Duty payable is 100% + 10% of cost of
production

GST Regime:
1. ONE registration – No Tax
2. Separate registration - CGST/SGST will be
charged
Ganesh Manufacturing – VAT:
Unit 1
Current Regime:
Generally, excess of 4% can be availed as Input
credit for the Input VAT paid on the raw material
transferred to another Unit. (Differs from state to
state)

GST Regime:
Input credit can be availed on entire amount. 17
 Interstate Branch Transfers
Maharashtr
a

Amar Traders

Form
F

Current
GST Regime: Regime:
Taxable (IGST),
Exempt
Declaration forms will be Amar Traders -
abolished. Branch

18
 What is E-Waybill ?
E-way bill is an electronic way bill for movement of goods which can be
generated on the GSTN (common portal). A ‘movement’ of goods of more than ₹
50,000/- in value cannot be made by a registered person without an e-way bill.

Validity of E-Way Bill

Distance Validity Period

Less than 100 km 1 Day
100 km or more but less than 300 km 3 Days
300 km or more but less than 500 km 5 Days
500 km or more but less than 1000 km 10 Days
1000 km or more 15 Days
19
 E-Waybill Workflow – GST Regime
Supplier hands over the goods to Transporter for delivering it to the Purchaser.

Supplier furnishes the details of stock in Part-A and transporter details in Part-B of Form GST INS 01

Based on the details furnished in PART-A of Form GST INS01, Transporter will generate e-way bill

On generation of e waybill, EBN will be sent to Supplier, Purchaser and Transporter.

The details of E-waybill will be sent to Purchaser for their acceptance.

20
 Generation of E-Way bill under GST
Quicker
Maharashtr Transports E-Way
(Transport Co.) Bill
a
e-way
e-way Bill
Bill
Ganesh Number
Number
Manufacturing (EBN)
(EBN)
(Supplier)

E-way bill can also be


generated/cancelled Need to authorize
through SMS within 72 hours or else
will be deemed as
Fo r m G S T I N S 0 1 acceptance.
Part A Part B
Sheetal
Tr a d e r s
Stock Transporter (Buyer)
Details Details

Cancellation can be
done within 24 hours
21
 GST Workflow

Will it will
What really
bemake movement
the impact of GOODSOF
on MOVEMENT CHEAPER
GOODS?and SEAMLESS?

What about the REGISTRATION PROCESS?

How will I file my GST RETURNS?

How will I make GST PAYMENT?

How will I adjust my Input Credit? 22

Composition Levy

23
 Transition Registration

Migration

2 3 A Automatic
AAES 1234A
Registration

101
First provisional & then final registrations

24
 GST Workflow

Will it will
What really
bemake movement
the impact of GOODSOF
on MOVEMENT CHEAPER
GOODS?and SEAMLESS?

What about the REGISTRATION PROCESS?

How will I file my GST RETURNS?

How will I make GST PAYMENT?

How will I adjust my Input Credit? 25

 GST Return Process

10th of the Next

Month
GSTR 1

GSP/ASP
Outward Supplies made by the Taxpayer
15th of the Next
Month
GSTR 2 GSTN
Inward Supplies received by the Taxpayer

20th of the Next

Month
GSTR 3
GST Return for the Month with Tax
 Type of Returns
For a Regular Dealer
Form Type Frequency Due Date Details to be furnished
By 10th of
Details of outward supplies of
GSTR-1 Monthly succeeding
goods/services
month Auto-populated details of inward
On 11th of
supplies made available to the
GSTR-2A Monthly succeeding
recipient on the basis of Form GSTR-1
Month
furnished
Details bysupplies
of inward the supplier
of taxable
15th of goods/services claiming input tax
GSTR-2 Monthly succeeding credit. Addition (Claims) or
month modification in Form GSTR-2A should
Up to 20th of be submitted in Form GSTR-2.
Details of outward supplies as added,
GSTR-1A Monthly succeeding
 Type of Returns
Form Type Frequency Due Date Details to be furnished
Monthly return on the basis of
20th of
finalization of details of outward
GSTR-3 Monthly succeeding
supplies and inward supplies along
month
with the
Notice to apayment
registeredof amount
taxable of tax
person
GSTR-3A -- -- who fails to furnish return under
section 27 and section 31
Annual Return - Furnish the details of
31st Dec of next ITC availed and GST paid which
GSTR-9 Annually
fiscal includes local, interstate and
import/exports.
© Tally
© Tally Solutions
Solutions Pvt.
Pvt. Ltd.
Ltd. All
All Rights
Rights Reserved
Reserved Business Presentation 30
 Ratna Steels
RatnaAmt
GSTR-1A
In.N Steels
GST
Super Cars Ltd
Portal
o Portal

Ratna Steels
Outward Supplies 6 1,00,0 18,00
Register
No Qt Amt GST 00 0
y
6 10 1,00,0 18,00
0 00 0
7 50 50,00
0
9,000
AUG
8 25 25,00 4,500
10 50
0
50,00 9,000
Super Cars Ltd
GSTR-1
15
10
21
16
11
AUG
To 22 0
2,25,0 40,500 Ratna Steels
t. 5 00 GSTR-1 20
6 1,00,0 18,00
00 0
Payment Payment
Ratna Super R.J.
Steels Cars Ltd Automobiles
Inward Supplies Books of Super Cars Outward Supplies
Register
No Qt Amt GST
Ltd for July Register
No Qt Amt GST
y y
6 10 1,00,0 18,00 1
1 80
80 88,00
88,00 15,84
15,84
0 00 0 0
0 0
0
7 50 50,00 9,000 2
2 60
60 66,00
66,00 11,88
11,88
0 0
0 0
0
8 25 25,00 4,500 3
3 30
30 33,00
33,00 5,940
5,940
0 0
0
10 50 50,00 9,000 4
4 45
45 49,50
49,50 8,910
8,910
To 22 0
2,25,0 40,500
0
0
6 1,00,0 18,00 To 21 2,36,5 42,57 31
t. 5 00 00 0 t. 5 00 0
 Form ITC-1
Super Cars Ltd. GSTR-2A
Sr. No. Qtry Amount GST
Super Cars Provisional
10 50 50,000 9000

Credit
40,500
31,500

Ratna Steels GSTR-1

Sr. No. Qtry Amount GST
10 50 50,000 9000

Super Cars Ltd. GSTR-2

Sr. No. Qtry Amount GST
10 50 50,000 9000
What happens
CREDI when Goods are returned / Invoice Value reduces?
T
NOTE

Ratna Super
Steels Cars Ltd

Supplier needs to knock off the Credit Note against the same Invoice details which were uploaded to
Input Credit reduces to the extent of Credit Note value authorized by the Buyer.
GSTN 32
 GST Workflow

Will it will
What really
bemake movement
the impact of GOODSOF
on MOVEMENT CHEAPER
GOODS?and SEAMLESS?

What about the REGISTRATION PROCESS?

How will I file my GST RETURNS?

How will I make GST PAYMENT?

How will I adjust my Input Credit? 33

 Payment of Tax

Mandatory E-payment for amount exceeding ₹

10,000

Online: Internet banking/credit or debit

card/NEFT/RTGS/IMPS

Offline: Cash/ Cheque / DD etc.

34
 GST Workflow

Will it will
What really
bemake movement
the impact of GOODSOF
on MOVEMENT CHEAPER
GOODS?and SEAMLESS?

What about the REGISTRATION PROCESS?

How will I file my GST RETURNS?

How will I make GST PAYMENT?

How will I adjust my Input Credit? 35

 Input Credit Adjustment

CGST - ITC
IGST CGST

SGST - ITC
IGST SGST

IGST- ITC
SGST CGST IGST

36
 Input Credit On Expenses
Pre -
GST gives an opportunity to Assuming GST – 10%
GST GST
avail Input credit on Gross Profit 5,00,000
expenses incurred on Indirect Expenses
Gross Profit 5,00,000 5,00,000
furtherance of business Indirect Expenses
Travel Expenses 1,00,000
• Printing & stationery Travel Expenses *

• Office rent
Office // Godown
Office GodownRent
Rent 1,00,000
• House keeping material
• Business meetings & conferences Printing and Stationery
Printing and Stationery 1,00,000
Repairs & (4,00,000 (3,60,000
-
Repairs & Maintenance 1,00,000Net
Maintenance Net )
4,00,000 )
TAX
Expenses
40,00 Profit
Profit
Net Profit 1,00,000 1,40,000
4,00,0000
3,60,000 Net Profit 1,00,0
1,00,000 *Within State to
1,40,0 the extent of
00 CGST & SGST of
00 the state.

For all business related expenses please ask for TAX INVOICE with37
 Input Credit On Closing Stock

JUNE
JULY Input
Credit
30
1
Opening Stock
Closing Stock

Businesses need to maintain purchase invoices

of opening stock to claim input tax credit 38
 GST is not just a TAX CHANGE.
It is a CHANGE in THE WAY OF DOING BUSINESS

39
Challenges for a Business in GST – Perspective by
Tally Solutions

Books
Recording Invoice Filing matching
Invoices Matching Return with the
Return filed
by TRP

40
Sale No. 1: Date :
1-Aug-2017
Reference 1
no. : NameGanesh Trading Ltd
Party
:
Sales ledger Sales A/c
:
Name of Stock Item Qty
Rate Amount
Computer 10 Nos 25,000/Nos
2,50,000.00
CGST @ 18%
IGST @
CENVAT 9%
@ 12.5%
31,250.0022,500.00
45,000.00
SGGT
VAT @@ 9%
14.5%
22,500.00
40,781.00

Warning!

10Nos
10 Nos Incorrect Tax Type
3,22,031.00
2,95,000.00
2,95,000.00 charged!!
Narration (Press any key)
Software should warn you while charging incorrect tax type /rate. 41
Challenges for a Business in GST – Perspective by
Tally Solutions

Books
Recording Invoice Filing matching
Invoices Matching Return with the
Return filed
by TRP

42
 Transactions
No Qty Amt GST uploaded by
6 100 1,00,000 18,000
No 7
8
Qty 50
25
Amt 50,000
25,000
GST Status
9,000
4,500
both Supplier &
Transaction
10 50 50,000 9,000 Buyer
details matches
uploaded
6
11
100
25
1,00,000
50,000
18,000
9,000
Matched Transaction
12
13
100
50
1,00,000
50,000
18,000
9,000 by Supplier
uploaded by
7
14
15 50
25
50 50,000
25,000
50,000 9,000
4,500
Matched
9,000 doesn’t match
Supplier has
with Buyer’s
16 25 50,000 9,000
17 100 1,00,000 18,000
been modified
8 18
25 50
25,000 50,000
4,500 Mismatch
9,000

Super Cars 19
20
25
50
25,000
50,000
4,500
9,000 by Buyer
Ltd 10
21
50
25
50,000
50,000
9,000
9,000
Modified
22
23
100
50
1,00,000
50,000
18,000
9,000Transaction
24 25 25,000 4,500
11 25
25 50
50,000 9,000
50,000
New Claim missed out by
9,000
26 25 50,000 9,000
Supplier has
been uploaded
by Buyer
Software
How should
will you compare
identify your booksbetween
the differences with GSTR-2A / GSTR-1A
Suppliers and provide(Books)
Inwards/Outwards you thewith
status at invoice
GSTR-2A / 1A
level in no time.
(GSTN)? 43
Challenges for a Business in GST – Perspective by
Tally Solutions

Books
Recording Invoice Filing matching
Invoices Matching Return with the
Return filed
by TRP

44
 Challenge faced during Return Filing
VAT GST
Interaction with Government for
compliance

Once a Quarter or Month 3 times EVERY MONTH

Return filing
Summary of Sales/Purchases needs to
Need to upload EVERY transaction
be filed

Invoice Matching
Invoices of supplier and recipient NEED to
Not monitored extensively
MATCH

Input Credit
Can be availed ONLY WHEN INVOICES ARE
Availed based on Returns MATCHED and SELLER PAYS TAX
LIABILITY. 45
 Software for GST Compliance

GST COMPLIANT
SOFTWARE
Allows recording of
transactions
Connects to GSTN seamlessly
Is able to reconcile with data in
GSTN

NO SOFTWARE IS USABLE FOR GST COMPLIANCE,

WITHOUT THESE CAPABILITIES 46
Challenges for a Business in GST – Perspective by
Tally Solutions

Books
Recording Invoice Filing matching
Invoices Matching Return with the
Return filed
by TRP

47
 Error!!

GSTR – 2
GSTR – 1
2 
Duplicate
GSTN
Entry

TRP / CA Modifying transaction (GSTR-2A) manually on

GSTN Portal

AUG
10
15

Purchase
Sales s

Software should assist you in resolving conflicts and uploading right data to GSTN.
Supplier 48
 Consequences of Non-compliance
L a t e Fe e & I n t e r e s t
Fi n e s
Failure to furnish returns
Tax evasion
Quarterly (for composite dealer)/ Monthly (for regular dealer): ₹ 100/- per day for
every day subject
₹ 10,000/- to a amount
or an equal maximum to of
the₹ extent
5000/- of tax evaded
Annual
Fine withReturn : ₹ 100/-
imprisonment upper
to day for every
5 years day subject
depending to a maximum
on amount of ₹ with
of tax evasion 0.25 %
of aggregate
slab turnover
ranging from 25 Lakhs to 500 Lakhs
Interest on total tax due – Rate yet to be notified

Cancellation of
Re g i s t r a t i o n
Regular dealer: If returns are not furnished for 6 consecutive tax period
Composite dealer: If returns are not furnished for 3 consecutive tax period

49
 Compliance Discipline is Important
APRI May
L

If you miss a month’s

filing -

You can’t file for the

subsequent month…
unless, Tax for the
PA I U N PA I
D D previous month is paid

CAN’T 50
 How Can You Be GST Ready?

1 2 3 4

Buy a PC or Automate Adopt an Use an

laptop Accounting Accounting
Standard software

Being compliant will help YOU to stay one step ahead ! 51

Need to make Accounting Books ready NOW

52
Register in GST portal & get GSTIN (Regular
dealer)

53
 Transition Provisions
Amount of CENVAT / VAT credit carried forward in a return to be allowed: - admissible as input
tax credit under this Act

FORM E.R.-1
Vat Form 100

RETURN OF EXCISEABLE GOODS AND AVAILMENT OF CENVAT CREDITFOR THE MONTH OF March AND YEAR 2017
March 2017

ADE_LVD ADC_LVD EDU_CE SEC_EDU SERVICE_ EDU_CESS SEC_EDU_

DETAILS OF CREDIT CENVAT AED_TTA NCCD
_CL_85 _CT_75 SS _CESS TAX ST CESS_ST Balance Input 12,000
12,000

Total Credit Available 25,000

25,000 0.00 0.00 0.00 0.00 0.00 0.00 5,000
5,000 0.00 0.00

Input
Vat
Cenvat
30,000
1 Balance available as per last return filed
12,000

SGST CGST 2 Allowed as Input tax credit under GST

12,000 30,000
54
Reconcile Books & Returns before 1st
July


55
 GSP

 Uploading of Invoice
 Filing of Return
ASP  Challan Generation
 Payment of Tax

Tax
Payer
56
 Tally’s Technology
Generating GSTR 1 from invoices in Tally

GSTIN Validation

Triangulation Report – Matching Books & Returns

Auto bank reconciliation – Matching Books & Bank Statements

Input tax credit adjustment – CGST, SGST & IGST

E-payments (with DBS)

57
THANKS !!!

58