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Liner Training PPT

This training PowerPoint presentation covers the various aspects of the GST framework in India, including the taxes to be subsumed, the time and place of supply, input tax credit, and relevant case studies. It also highlights the areas for considerations and provides Q&A sessions.

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Liner Training PPT

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  1. Liner Training PPT

  2. Contents • GST framework in India • Taxes to be subsumed in GST • Duties / Taxes to Remain • Dimensions of the proposed GST • Time of supply of goods • Place of supply of goods for L&PS • Input Tax Credit • Relevant case studies for L&PS • Areas for Considerations • Questions & Answers

  3. GST Framework in India

  4. State cesses & surcharges on goods & services Taxes on lottery, betting, gambling SGST VAT Entry Tax & Octroi Central Sales Tax Entertainment Tax (except by local bodies) Purchase Tax & Luxury Tax GST Framework in IndiaTaxes to be subsumed in GST Central Excise* Duty + Additional Excise duties Service tax CGST Central cesses & surcharges on goods & services Additional & Special Additional Duty of Customs • Areas of consideration for oil & gas industry • Five petroleum products namely, Crude, Natural Gas, Aviation Turbine Fuel, Motor Spirits and High Speed Diesel proposed to be kept outside ambit of GST • GST on these petroleum products proposed to be levied from a notified date recommended by the GST Council

  5. GST Framework in India Duties / Taxes to Remain Basic Customs Duty Taxes on liquors and petroleum products Stamp duty Toll tax Property tax and profession tax Excise duty on tobacco products Export duty Environment tax State Electricity Duty 7

  6. Concepts under Model GST law Understanding the term ‘Supply’

  7. GST Framework in India Dimensions of the proposed GST • GST is destination based consumption tax • Taxable event of ‘supply’ of goods / services or both • Dual GST: Central GST (CGST) and State GST (SGST) / Union Territory GST (UTGST) • IGST on inter-State transactions • Imports would be subjected to IGST in addition to BCD and Customs Cess (as duty of customs) • GST is not applicable on ‘zero rated supplies’ • Special Industrial Area Schemes to be converted into investment based through their validity period • CGST and IGST does not extend to Jammu & Kashmir Dimensions of GST framework? Tax credit mechanism CGST SGST / UTGST IGST Input IGST against: IGST CGST SGST / UTGST Input SGST against: SGST / UTGST IGST Input CGST against: CGST IGST

  8. GST Framework in India • Timeof supply of goods Advances for supply of goods / services is trigger point (time of supply) for GST; Receipt Voucher to be issued for customer advances

  9. GST Framework in India • Place of supply relevant for L&PS division transaction

  10. GST Framework in India Input Tax Credit: Conditions, Prerequisites & Mechanism Claimant has received good/ services • Utilization of Input Credit against output liability: Input CGST against – CGST IGST Input IGST against – IGST CGST SGST/UTGST Input SGST/UTGST against - SGST/UTGST IGST

  11. GST Framework in India Valuation of taxable supply Value of taxable supply Transaction Value if: • Transaction is between unrelated parties • Price is sole consideration for supply =

  12. Relevant case studies for L&PS

  13. Relevant case studies for L&PS Container transport - Import Freight (Prepaid) SCI (Mumbai-location) Consignor (Singapore) Imported to Karnataka (Consignee) Consignor/Shipper (Ocean freight on foreign port) Place of Supply Karnataka (Destination of goods) Levy of Tax IGST will be applicable. (location of supplier and POS is in different state) The said transaction would not qualify as an export of service

  14. Relevant case studies for L&PS Container transport - Import Freight (Collect/FOB) Goods are handed over at Singapore SCI (Mumbai-location) Consignor (Singapore) Imported to Karnataka (Consignee) Consignee (Ocean freight) Place of Supply Indian customer (Registered) : Karnataka (Location of registered customer) Indian customer (Unregistered) : Singapore (Place where goods are handed over) Levy of Tax Indian customer (Registered) : IGST (location of supplier and place of supply is in different state) Indian customer (Unregistered) : IGST (Deeming provision for inter-state trade)

  15. Relevant case studies for L&PS Container transport - Export Freight (Prepaid) Goods are handed over at Karnataka SCI (Mumbai-location) Karnataka (Consignor) Exported to Singapore (Consignee) Consignor/Shipper (Ocean freight) Levy of Tax Indian customer (Registered) : IGST (location of supplier and place of supply is in different state) Indian customer (Unregistered) : IGST (location of supplier and place of supply is in different state) Place of Supply Indian customer (Registered) : Karnataka Singapore (Location of registered customer) Indian customer(Unregistered):Karnataka (Place where goods are handed over)

  16. Relevant case studies for L&PS Container transport - Export Freight (Collect/FOB) Goods are handed over at Karnataka SCI (Mumbai-location) Karnataka (Consignor) Exported to Singapore (Consignee) Consignee (Ocean freight) Place of Supply Singapore(Destination of goods) Levy of Tax • Not applicable. It may qualify as export of service

  17. Relevant case studies for L&PS Coastal Freight- Indian Customer Goods are handed over at Gujarat SCI (Mumbai location) Customer (Gujarat)location) Transported to Maharashtra Place of Supply Indian customer (Registered) : Gujarat (Location of registered customer) Indian customer (Unregistered) :Gujarat (Place where goods are handed over) Levy of Tax Indian customer (Registered) : IGST (location of supplier and place of supply is in different state) Indian customer (Unregistered) : IGST (location of supplier and place of supply is in different states)

  18. Relevant case studies for L&PS Coastal Freight- Foreign Customer Cargo handed over at Maharashtra Customer (Singapore location) SCI (Mumbai location) Transported to Maharashtra Levy of Tax CGST/SGST (Since location of supplier and place of supply is in same state) Place of Supply Maharashtra (Destination of goods) The said transaction would not qualify as an export of service

  19. Relevant case studies for L&PS Operation and Managing vessel (Remuneration received from A&N) Indian customer • First schedule point of departure is Gujarat SCI (Mumbai location) Service receiver (Maharashtra Location) Levy of Tax Indian customer (Registered) : CGST+SGST (location of supplier and place of supply is in same state) Indian customer (Unregistered) : CGST+SGST (location of supplier and place of supply is in same state) Place of Supply Indian customer (Registered) : Maharashtra (Location of registered customer) Indian customer (Unregistered): Maharashtra (Location of address of recipient ) Maharashtra (Location of SCI when address of recipient is not available) It is pertinent to note that POS for the said transaction in case of an Indian customer is “first schedule point of departure of that conveyance for the journey”. However, due to practical challenges that could be faced in deriving first schedule point of departure of that conveyance for the journey, management of SCI has taken a decision to consider POS as per general rule i.e. location of recipient of service The said scenario covers technical fees or management overheads recovered from A&N for managing vessel

  20. Relevant case studies for L&PS Operation and Managing vessel Foreign customer SCI (Mumbai location) Customer (Singapore location) Place of Supply Singapore (Location of customer) Maharashtra (Location of SCI if address of customer Is not available) Levy of Tax Not applicable if it qualifies as export of service

  21. Relevant case studies for L&PS Detention/storage, Demurrage, Chartering, Slot swapping/Slot sharing and slot selling, Vessel traffic management, Incentive for container stuffing and destuffing,THC, IHC) Indian customer SCI (Mumbai location) Customer (Gujarat)location) Levy of Tax Indian customer (Registered) : IGST (location of supplier and place of supply is in different state) Indian customer (Unregistered) : IGST (location of supplier and place of supply is in different state) Place of Supply Indian customer (Registered) : Gujarat (Location of registered customer) Indian customer (Unregistered) : Gujarat (Location of address of recipient ) Maharashtra (Location of SCI when address of recipient is not available) Foreign customer SCI (Mumbai location) Customer (Singapore location) Place of Supply Singapore (Location of customer) Maharashtra (Location of SCI if address of customer Is not available) Levy of Tax Not applicable if it qualifies as export of service

  22. Relevant case studies for L&PS Valuation for Slot swapping/Slot sharing and slot selling Barter transaction is subjected to GST It is suggested that since there is no monetary value involved in certain scenarios of slot sharing being in a nature of barter, open market value should be considered as value of supply and should attract GST. Explanation for open market value “open market value” of a supply of goods or services or both means the full value in money, excluding the integrated tax, central tax, State tax, Union territory tax and the cess payable by a person in a transaction, where the supplier and the recipient of the supply are not related and price is the sole consideration, to obtain such supply at the same time when the supply being valued is made Suggestion SCI may take a base of the amounts charged for such slots shared when the same is being given to a partner for a fees (for an example, when the slot sharing exceeds certain capacity/amount agreed based on excess usage), SCI may decide similar bases for purpose of discharging GST in the case of slot sharing/swapping.

  23. Relevant case studies for L&PS Rebate on income Issue of credit note: Credit note should be issued for time charter in the following cases: - When the taxable value or tax charged in tax invoice is found to exceed the taxable value or tax payable in respect of such supply, - where services supplied are found to be deficient Time limit • Details of credit note shall be declared in the return for the month during • which such credit note has been issued but not later than: • September following the end of the financial year • The date of furnishing of the relevant annual return • whichever is earlier Whether liability can be reversed if credit note is issued? Tax liability can be reduced from output tax liability if the incidence of tax and interest on such supply has been passed on to any other person

  24. Relevant case studies for L&PS Sale of equipment on as is where is basis Indian customer • Delivery terminates at Gujarat Customer (Gujarat Location) SCI (Mumbai location) Place of Supply Indian customer: Location where the goods terminates for delivery to recipient Levy of Tax Indian customer: IGST (location of supplier and place of supply is in different state) Foreign customer • Delivery terminates at Singapore Customer (Singapore Location) SCI (Mumbai location) Levy of Tax Indian customer: Not applicable if it qualifies as export of goods Place of Supply Foreign customer: Location outside India

  25. Relevant case studies for L&PS Transactions with A&N Freight for carrying cargo in A&N's vessel Such freight cargo services is being provided by A&N.It is no where SCI s income, since the said freight amount collected by SCI on behalf of A&N is being transferred to A&N based on statements of accounts. GST is not attracted on such disbursement of fund held by SCI on behalf of A&N. However, if it is concluded that such services are provided by SCI and invoicing and requisite documents are prepared in the name of SCI, GST would be leviable by SCI Passage money (Tickets) for transporting passengers in A&N Vessel Such passenger services is being provided by A&N. it is pertinent to note that the exemption for passenger transportation by inland water ways is retained in GST (Entry No.72of draft list of service). GST is not leviable on such disbursement of fund held by SCI on behalf of A&N. However, if it is concluded that such services are provided by SCI and invoicing and requisite documents are prepared in the name of SCI. GST would not be leviable by SCI since passenger transportation service is notified as an exempt service.

  26. Areas for Consideration

  27. Areas for Consideration Action Points

  28. Areas for Consideration Action Points Original Copy- for Recipient Duplicate Copy- for Supplier

  29. Areas for Consideration Action Points

  30. Areas for Consideration Action Points

  31. Areas for Consideration Particularsto be furnished

  32. Areas for Consideration Particularsto be furnished

  33. Areas for Consideration Particularsto be furnished

  34. Areas for Consideration Key statutory filings and returns

  35. GSTR-1 Outward supply includes

  36. GSTR-2 Inward supply includes

  37. GSTR-9 Annual return Notes If the turnover of the registered taxable person exceed INR 1 crore shall get his annual accounts audited by a chartered accountant or cost accountant and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified in FORM GSTR-9B

  38. Interdependence pertaining to return filing steps GSTR1 GSTR2A GSTR2 15th to 17th By 10th Auto populated GSTR3 Amended GSTR1 GSTR1A Auto populated 20th - Auto populated 17th to 20th Add Accept (Provisional) Modify including rejection

  39. Area for Consideration Impact of Anti-profiteering clause 1 1 Anti Profiteering Measure has been inserted to examine whether reduction in the price on account of any reduction in rate have actually resulted in a commensurate reduction in the price of the said goods/services supplied by them Authorities shall have power to impose penalty in cases where it finds that the price being charged has not been reduced as aforesaid Section 171 Anti Profiteering Measure has been incorporated under GST Bill 2 3

  40. Areas for Consideration Action Points

  41. Areas for Consideration Action Points

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