Journey so far
CGST/ IGST/ UTGST/ SGST Acts finalized and 7
final rules and draft formats released
GSTCompensation Cess rates and Chapter wise rate
wise GSTschedule decided
Taxslabs for other items and services to be decided
Fitment of more than 1200 itemsin various tax slabs
19%of items taxed over 18%GST taxslab
Item fitment in tax slabs (%)
(28% Tax Slab)
19%
(Exempted)
7%
(5% Tax Slab)
14%
(12% Tax Slab)
17%
(18% Tax Slab)
43%
Migration of existing tax payers- Sec 139
Every person holding
a valid PAN
Existing Regime
Provisional RC
Final RC
GST Regime
 Note: The enrolment window will reopen at a later date for taxpayers who could not
enrol themselves as well as those who enroled but did not sign the enrolment form.
Conditions to carry forward input tax credit- Sec 140(1)
ITC/CENVAT CREDIT C/F
ELECTRONIC CREDIT LEDGER
 Carry forward only
eligible ITC/CENVAT
Credits;
 All returns for preceding 6 months
filed;
 ITC/CENVAT Credit not related
to Exempted goods
 Credit admissible as ITC under
GST;
Admissible CENVAT Credit to
be reflected in the last return
filed
Application in Form GST TRAN
1 within 90 days
Existing Regime
GST Regime
Restriction on carry forward of input tax credit- sec 140(1)
Particulars
Amount
(INR)
ITC Balance as per last VAT Return
1,000
Input credit attributable to the value of claims u/s 3, 5(3), 6, 6A
and 8(8) of Central Sales Tax Act, 1956 (CST Act)
500
Less:
Input credit attributable to the value of declarations received in
Form C/F/E/H/I specified in Rule 12 of CST Act
(300)
Input credit attributable to the value of claim u/s 3, 5(3), 6, 6A
and 8(8) of CST Act for which declarations are pending as on the
appointed day. (Note: Will be refunded post submission of
forms)
Total ITC allowed to be carried forward as per the provisions
Amount
(INR)
(200)
800
Carry forward of Unavailed Cenvat credit on capital goods- sec 140(2)
UNAVAILED CENVAT CREDIT ON
CAPITAL GOODS
 Credit admissible as CENVAT credit
under the existing law;
Unavailed CENVAT credit in respect of
capital goods is not carried forward in
the return
Existing Regime
ELECTRONIC CREDIT LEDGER
 Not paying tax under
composition levy;
 Credit admissible as ITC under
GST;
Form GST TRAN 1:
Specify amount
availed/utilised and yet to be
availed/utilised for every item
GST Regime
Credit of inputs held in stock on the appointed day- sec 140(3)
CREDIT OF INPUTS HELD IN STOCK ON THE
APPOINTED
DAY
1)
2)
3)
4)
5)
6)
7)
8)
Unregistered person under existing law
Manufacturer of exempted goods
Provider of exempted services
Provider of Works Contract services and
availing benefits of Not. No. 26/012-ST
First stage dealer
Second stage dealer
Registered importer
Depot of a manufacturer
Existing Regime
Now
Registered
Person
GST Regime
Inputs held in stock on the appointed day – conditions attached- Sec 140(3)
Inputs/goods
used or intended
to be used for
making taxable
supplies under
GST
ITC available on
such inputs
under GST
Invoices issued not
earlier than 12
months prior to
appointed day
Availability of
invoices evidencing
payment of tax or
duty
Supplier of services
not eligible for
abatement under
GST
Inputs held in stock on the appointed day – A scheme for traders- Sec 140(3)
A registered person other than a manufacturer or supplier of services i.e. a trader can claim such
credit at the rate of 60 per cent of central tax/ state tax applicable on supply of such goods within 6 tax
periods from the appointed day even though he is not in possession of invoice evidencing payment
of duty or tax, if he passes on the benefit of such credit by way of reduced prices to the recipient.
This can be understood by studying the following tables:
Particulars
Amount
Value of stock held
100
Add: Excise Duty paid
12.5
Particulars
Net Selling Price
Add: C/SGST at 12%
Total Commercial value
Add: VAT paid
12.5
Total Value (Cost to Supplier)
125
Existing Regime
Amount
200
24
224
Less: Eligible credit at 60% of 24
(14.4)
Gross Selling Price
209.6
GST Regime
Credit of eligible duties on supply of taxable and exempted goods - Sec 140(4)
EXEMPT – GOODS /
SERVICES
Taxable
goods/services
Manufacturer or
supplier of services
Exempted
goods/services
Existing Regime
CENVAT Credit carried
forward in the return as
per provision of section
140(1)
Credit of input held in stock
as per provision of Section
140(3)
GST Regime
Credit of input for services received after the appointed day- Sec 140(5)
Duties or taxes paid
under existing law
Inputs or Inputs Services received
June 25,2017
July 05, 2017
July 01, 2017
Invoice issued and
inputs dispatched
Existing Regime
Appointe
d
Day
July 31, 2017
Inputs received
with invoice
GST Regime
Invoice is
recorded in books
within 30 days
from appointed
date, unless
additional 30
days granted
Credit of input tax credit in case of composition dealers- Sec 140(6)
ITC/CENVAT CREDIT C/F
ELECTRONIC CREDIT LEDGER
Inputs As
such
ABC- Composition
Scheme
Conditions
as per 140(3)
Semi
Finished
Finished
Goods
Existing Regime
GST Regime
Credit of input tax credit carried forward in a return by person having
centralized registration or ISD- Sec 140(7) and (8)
ITC/CENVAT CREDIT C/F
ELECTRONIC CREDIT LEDGER
Branch A
Delhi
ABC Limited
Centralised
Registration in Mumbai
Branch B
Bangalore
Branch C
Gujarat
Existing Regime
Last return
filed within
3 months
from
appointed
day
GST Regime
Material removed for job work/ other process - Sec 141


Inputs, SemiFinished goods or
Finished goods
sent to Job worker
for further
processing,
testing, repairing,
etc.
In such cases
July 01, 2017
Before
Appointed
Day
 No tax payable by person returning the
goods
Conditions:
 Goods returned within 6 months by
Job worker from Appointed day
(Unless, additional 2 months granted)
 Manufacturer and Job worker both must
declare such goods in FORM GST
TRAN-1
 If not returned, ITC availed by the
manufacturer on inputs liable to be
recovered u/s 142(8)(a)
Goods sold by manufacturer in the existing regime and returned within 6
months from the appointed day - Sec 142(1)
Jan 1, 2017
If supplies were sent
to an unregistered
dealer
If supplies were sent
to a registered dealer
Manufacturer can
claim refund of duty
paid
Termed as outward
supply in the hands of
dealer – Manufacturer
can claim ITC
July 1, 2017
Sold by manufacturer prior to
appointed day
Existing Regime
Dec 31, 2017
Returned by dealer post appointed
day
GST Regime
Section 142 : Miscellaneous Transition Provision




Goods cleared not before six months from the appointed day if
returned by unregistered person within 6 months from the
appointed day - Refund of tax paid under earlier law
Goods returned by registered person – Deemed Supply
Goods or services where price increases after the appointed day
- Additional tax to be paid by issue of debit note or
supplementary invoice to be issued within 30 days
Goods or services where price decreases after the appointed
day – Credit note be issued within 30 days upon which
taxpayer shall be allowed to reduce the tax liability
17
Gaurav Shah & Co, Chartered Accountants
Section 142 : Miscellaneous Transition Provision




Refund under the existing laws to be disposed as per provision
of existing law
Refund of tax paid under existing law to be paid under the
provisions of earlier law even if application is made after the
appointed day
Refund of tax of services not provided but tax paid under the
existing law to be refunded under the provisions of existing
law
Appeal, Review or reference relating to claim of CENVAT credit
or output duty liability shall be disposed of under earlier law
18
Gaurav Shah & Co, Chartered Accountants
Section 142 : Miscellaneous Transition Provision




Arrears to be recovered, including that of CENVAT, due to any
assessment, adjudication or revision of return be recovered as an
arrear of GST, unless recovered under the existing law.
Goods or services supplied after the appointed day will be taxed
under GST even if contract is entered prior to appointed day ( except
where point of taxation has occurred in the existing law)
Goods sent, not before six months from the appointed day, on
approval basis are returned back in 6 months - No GST
If tax was deducted under earlier law and invoice also issued, no
further TDS even if payment is made after the appointed day.
19
Gaurav Shah & Co, Chartered Accountants
12-Point Impact on manufacturers
Multiple CE registration can be avoided in same
state
Level playing field for Organized and
unorganized sector
Single point of compliance - VAT + CST +
Excise under existing regime
Reduction in cascading effect but Working
Capital increase- CST Purchases
12-Point Impact on manufacturers
Job worker charges liable to GST
Input Tax Credit Reversal- Non-Payment
Distinct Person Concept
Area-based exemption to discontinue
12-Point Impact on manufacturers
Matching Concept
Robust ERP Software required for B2B reporting
including invoice-wise, HSN-wise reporting
Unregistered dealer procurements liable to GST under
reverse charge
Advances liable to GST Vs. excise/sale applicable only
on removal of goods from plant or at the time of inovice
+91 9731510198
[email protected]