Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
in
Association of
National Exchanges
Members of India
Looking at a new horizon
Preparing for Goods and
Services Tax
November 2015
Agenda
Overview of GST
GST impact
Taxes to be subsumed
Central taxes State taxes
• Additional duty of customs • Value added tax (‘VAT’)
• Special additional duty of customs • Other State taxes such as Luxury tax, MTP (Excise
duty), Octroi, Entry tax, Purchase tax, etc.
• Central excise duty (‘ED’)
• Surcharge and cess related to supply of goods and services • Taxes on lottery, betting and gambling
• Taxes and duties on alcohol for human consumption • Taxes and duties on tobacco and tobacco products
Taxes and duties on petroleum products may be included within GST from a notified date
Place of Valuation
supply
Multiplicity of Likely to be
Taxable event taxes Destination consistent for all
based rules goods and
Taxable event to GST to subsume services
change to ‘supply’
majority of
Inter-unit indirect taxes
transfers – taxed
To be replaced
States to levy tax with CGST, SGST,
on ‘services’ Credits IGST and Classification Rates and
additional tax on Uniform across exemptions
No differentiation interstate supply
between goods States? Rates to change
and services for RNR and lower
credit availment Transitional issues Exemptions
rate of tax on
likely to be
Credit pool to be goods?
withdrawn or
maintained State-
wise converted to
refund schemes
Generic Rule
Rule 16 – Place of supply of banking and other financial services including stock
broking service
Constitution Amendment
Bill passed by the Lok
Sabha on 6 May 2015
Bill to be presented to
President for assent
GST Constitutional Amendment Bill has been passed by the Lok Sabha
• Pending to be passed by the Rajya Sabha - Bill to be tabled in the Winter Session of Parliament,
which has commenced today
The Empowered Committee has approved and finalised the framework for IGST
Reports of the Joint Committee on Business Processes for GST on registration, refund , payment and
return has been issued
Drafting of model GST law is in the process of finalization and would be put up in the public domain
for comments shortly
A contract has been awarded to Infosys to build and maintain technology network crucial for
implementing GST system across India
A Current law
B Likely GST law
• Brokerage, IB, PMS services taxable at
full rate of service tax • Brokerage, IB, PMS services taxable at
• Services provided by sub-brokers to stock full rate of GST
brokers are exempt • Services provided by sub-brokers to stock
• Default place of provision – location of brokers exempt?
service receiver • Place of supply – Broking services
• Centralized registration for service tax - Registered person: Location of
compliance service receiver
• CENVAT credit reversal on account of
- Other than registered person: Location
proprietary trading
of service provider
• Place of supply – IB/PMS services
- Default rule- place of service receiver
• State wise registration and compliance
• Proprietary trading – Reversal of credit?
European Union
Canada
Australia
© 2015 PricewaterhouseCoopers Private Limited. All rights reserved. In this document, “PwC” refers to
PricewaterhouseCoopers Private Limited (a limited liability company in India having Corporate Identity
Number or CIN : U74140WB1983PTC036093), which is a member firm of PricewaterhouseCoopers
International Limited (PwCIL), each member firm of which is a separate legal entity.
VS-CC
Proposed GST regime
Location of
HO
Location of
branches Place of supply of services?