Understanding GST: Features, Taxes, Impact & More
Explore the world of Goods and Services Tax (GST) through topics such as tax subsumed, features, commodities involved, rate structures, levy types, dealer statuses, and customer impact. Gain insights into the nuances of GST implementation in India.
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Presentation Transcript
PHASE I 3rd GST FAMILIARISATION PROGRAMME 03/05/2017 1
Taxes subsumed under GST State Central Excise Duty VAT Additional Duties of Excise, custom Luxury Tax, Entry Tax SAD(Special Additional Duty) Entry Tax Service Tax Entertainment Tax Tax on advertisements, lotteries, betting and gambling Central surcharge and cesses State surcharges and cesses CST(Central Sales Tax) Basic Custom Duty will NOT be subsumed under GST 3
FEATURES OF GST Control to be exercised either by center or state Dual GST structure GST council Uniform tax across the country Consumption based tax will frame policies adopted 4
Commodities outside GST Alcohol for human consumption Petroleum Crude Motor Spirit(petrol) High Speed Diesel(HSD) Natural Gas Aviation Turbine Fuel Electricity Commodities proposed to be kept outside purview of GST 5
Rate structure under GST Rate Structure Exempt supplies Zero-rate supplies Taxable supplies Supplies to SEZ Nil rated Export 5% 12% 18% 28% SCI 6
GST- levy structure TYPE OF GST LEVY INTER STATE INTRA STATE (DIFFERENT STATES) (SAME STATE) SGST /UTGST IGST CGST (CENTRAL GST) (STATE/UT GST) (INTEGRATED GST) IGST rates = CGST + SGST/UTGST 7
Dealer Status Dealer status Unregistered Dealer(Indian/ Foreign) Registered Dealer(Indian) Not Registered under GST registered under GST 8
GST IMPACT CUSTOMERS SERVICES PROVIDED BY SCI GOODS SUPPLIED BY SCI 9
GST REGISTERED CUSTOMER-Determination of place of Supply Services provided by SCI Transportation of Goods O&M Services To any customer (On board services) (Foreign customers) (General Rule) Location of customer First schedule point of departure of the vessel Destination of Goods (Address) Note : 1. In case of unregistered customer for transportation service, place of supply shall be the place where the goods are handed over. 10
TYPE OF GST APPLICABLE GENERAL RULE Inter state (Location of customer outside Maharashtra) IGST Registered customer Intra state CGST+ SGST (Location of customer in Maharashtra) SCI-Mumbai provided services to General Rule Export (Location of customer is outside India) Foreign customer (Zero rated) 11
TRANSACTIONS COVERED UNDER GENERAL RULE Time Charter Voyage Charter/Freight Demurrage Consultancy services 12
TYPE OF GST TRANPORTATION OF GOODS (FOREIGN CUSTOMERS) SCI-Mumbai to FOREIGN CUSTOMER Loading and Discharge of goods- Outside India Destination of goods- India Destination of goods- Outside India Import Freight Export Freight Cross Trade Freight Export Export Taxable (Zero Rated) (Zero Rated) Note : 1. Example includes : Voyage charter and Liner Freight 13
PLACE OF SUPPLY OF GOODS TO ANY CUSTOMER Where Goods are handed over Supply of Goods Goods delivered in the state of Maharashtra CGST+SGST Supply of Goods Goods delivered in the state other than Maharashtra By SCI-Mumbai IGST Export Goods delivered outside India (Zero-Rated) Vessel Sale, Sale of Container, Scrap sale etc. 14
GST IMPACT - VENDORS PROCUREMENT OF SERVICES PROCUREMENT OF GOODS IMPACT ON INPUT CREDIT 15
PROCUREMENT OF SERVICES - TYPE OF TAX Services provided to SCI Mumbai (POS Maharashtra) Vendor registered in the state of Maharashtra Vendor registered in state other than Maharashtra Unregistered Indian Vendor Foreign vendor CGST + SGST IGST (Under RCM, if notified) CGST + SGST IGST (To be paid under RCM by SCI) Note : 1. Determination of Place of Supply of services: Location of vendor and Location of SCI. 2. SCI is eligible for GST on services received as place of supply under GST is determined based on address of service recipient. 16
PROCUREMENT OF GOODS - TYPE OF TAX Procurement of Goods Registered vendor Unregistered (Indian Vendor) Foreign vendor Vendor state & Delivery state is same Vendor state & Delivery state is Different CGST + SGST Delivery outside India Delivery in India (To be paid under RCM by SCI) (Intra state) (Inter state) Import No Tax implication CGST + SGST IGST (Basic custom Duty + IGST) Note : 1.Determination of Place of Supply of Goods: Location of vendor and place where the goods are handed over. 17
ELIGIBILITY OR NON-ELIGIBILTY OF INPUT TAX CREDIT Service Tax Eligible Eligible GST NOT eligible VAT/CST /Excise Eligible GST Note : 1. GST on delivery of goods in the state of Maharashtra, West Bengal, Tamil Nadu and Delhi will only be eligible for input credit. 18
GST Invoices Name, GSTN and Address of customer and SCI. HSN(Harmonized System of Nomenclature). SAC(Service Account Code). State of supply of goods/ services(Place of Supply) Key Fields to any invoice MASTER DATA REQUIREMENT : 1. Customer/Vendor master should have GST Registration No. and state. 2. All material/services code to be assigned HSN/SAC code respectively. 20
Timeline for issuance of Invoice by SCI Date of issue of Invoice Date of supply of service 30 Days (Max. period) Advance received from customer Date of issue of invoice Advance received Advance received has to be mapped with invoice to which it pertains 21
Debit Note / Credit Note to be issued by SCI For increase in invoice value, debit note /supplementary invoice is required to be issued which has to be mapped with original invoice against which upward revision in price took place. For decrease in invoice value, credit note is required to be issued which has to be mapped with original invoice against which downward revision in price took place. Reversal of invoice in SCI should not be executed post-GST 22
Timeline for issue of Credit Note F.Y. 2017-18 F.Y. 2018-19 Invoice issued By SCI in F.Y. 2017-18 30.09.2018 (Maximum till September) Note: 1. 2. SCI will not be able to reduce its output tax liability pertaining to delayed credit note. No timeline for issue of Debit note by SCI to its customer. 23
Lapse of Input credit due to late booking of Invoice by SCI F.Y. 2017-18 F.Y. 2018-19 Invoice issued by Vendor in F.Y. 17-18 30.09.2018 (Maximum till September or within one year of raising of invoice whichever is earlier) 25
Input credit to be reversed due to delayed payment by SCI Date of issue Date of payment by SCI of invoice by vendor 6 Months (Max. Period) Note: 1. If payment is not made to vendor within 6 months, amount of ITC claimed to be added in outward liability on GST network with interest. 2. Credit can be claimed once payment is made by SCI to vendor. 26
TRANSITIONAL PERIOD INVOICES Post - GST Services provided by vendor & Invoice raised with service tax component on SCI. Invoice yet to be received as on 1st July 2017. ALL invoices must be received and booked within 30 Days from GST rollout(from1st July) to claim CENVAT credit. Pre - GST 27
Registration status of SCI Maharashtra West Bengal Delhi Tamil Nadu Migration under process Andaman & Nicobar Migrated 29
Sequence of claiming credit of IGST/CGST/SGST IGST- Input CGST- Input SGST- Input IGST Output CGST- Input IGST- Input SGST- Input CGST - Output SGST- Input IGST- Input CGST- Input SGST - Output SGST CGST 30
GST compliant invoice Type & rate of tax, GST No., name, Place of supply etc. to be proper Timely booking invoice Timely payment vendor Transitional Provisions GST compliant invoice Type & rate of tax, GST No., customer Place of supply etc. to be proper. Timely issue of invoice Timely issue note vendor name, of of credit to Do s Do s (Receivables) (Payables) Dont's Dont s (Receivables) (Payables) Reversal of invoice Delay in issue of credit note Late invoice Delayed payment to vendor booking of 31
Thank You 32
