s

ONE DAY GST HANDS-ON TRAINING PROGRAM ON “GST IMPLEMENTATION FOR BANKING SECTOR,

FINANCIAL SERVICES SECTOR & NBFC BUSINESS”

25TH AUGUST, 2017 RUSSIAN CENTRE OF SCIENCE & CULTURE, NEW DELHI

HANDBOOK

under the aegis of Ministry of Corporate Affairs

Government of India

Programme Director -

RAJESH BATRA,

Head- Centre for MSME,

Indian Institute of Corporate Affairs

(Ministry of Corporate Affairs)

READING MATERIAL

FOR

ONE DAY GST HANDS-ON

TRAINING PROGRAM ON

“GST IMPLEMENTATION FOR

BANKING SECTOR, FINANCIAL

SERVICES SECTOR & NBFC BUSINESS”

(25th August, 2017)

Programme Director -

RAJESH BATRA,

Head- Centre for MSME,

Indian Institute of Corporate Affairs

(Ministry of Corporate Affairs)

HANDBOOK © IICA & R Bhargav & Associates jointly own the copyright of the Handbook. This handbook

or any material of the handbook is designed for purpose of One Day GST Hands-on Training

Program on “GST Implementation for Banking Sector, Financial Services Sector & NBFC

Business” of the IICA and any material contained in this handbook cannot be reproduced

without the permission of IICA & R Bhargav & Associates. The Handbook also contains the

original articles contributed by the Speakers for the purpose of Handbook and the same

cannot be reproduced without the permission of the authors and IICA. The handbook is

informatory in nature and the same should not be treated as any legal advice. The images

have been taken from the open source website IICA claims no copyright in the same.

INDEX

Sr. No. Contents

Page no.

1) About Indian Institute of Corporate Affairs 1

2) About Centre for MSME, IICA 2

3) Welcome Address to Delegates from Rajesh Batra, Head-Centre for MSME, IICA

21

4) About the Training Program 24

5) Program Facilitator & Speakers 26

6) Program outline 28

7) Reading Material on Goods & Services Tax (GST) Key Features Important Concepts Valuation Rules Input Credit under GST Some issues for banking sector Procedures Transition Provisions

29 38 48 61 71 85 96

8) Notes

115

INDIAN INSTITUTE OF CORPORATE AFFAIRS India's premier educational and research institution: The Indian Institute of Corporate

Affairs

The Indian Institute of Corporate Affairs (IICA) was registered as a society on September 12,

2008 under the Societies Registration Act, 1860. An autonomous institute, IICA works under the

aegis of the Ministry of Corporate Affairs to deliver opportunities for research, education, and

advocacy. It is also a think tank that curates a repository of data and knowledge for policy

makers, regulators as well as other stakeholders working in the domain of corporate affairs.

The institute, spread across a sprawling 14-acres, has state-of-the art infrastructure. Its main

building is eight storeyed high and is eco-sensitive. The campus has residential blocks, hostel

facilities for staff and students, recreational centre, a well-stocked library, an in-house

auditorium and an efficient knowledge management system.

The Institute is providing support to the Ministry in review/revision of existing corporate laws,

rule and regulation, as per requirements of a dynamic economic environment. In addition, it is

providing training to Officers of Indian Corporate Law Service (ICLS) and other officials working

for the Ministry and supporting organizational reform initiatives. IICA is also helping

continuous improvement of service delivery in diverse areas like corporate governance,

corporate social responsibility, investor education and protection, etc. The Institute is

promoting and encouraging innovation and entrepreneurship, particularly in small and medium

enterprise. It is providing quality action research, consultancy and information, service

/support to all its stakeholders including the Government companies, professionals, Directors of

companies, investors etc. IICA is helping to develop and maintain a knowledge Management

system, covering all aspects, issues, experiences relating to Indian and global corporate

function/affairs, linked to internal and external information with speed and in formats designed

for ease of access, navigation and utilization. The Institute will provide comprehensive coverage

of all disciplines/subjects involved in, or impacting corporate functioning.

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ABOUT CENTRE FOR MSME The Indian Institute of Corporate Affairs (Website: www.iica.in) is a 21st century unique world class institution established by the Ministry of Corporate Affairs, Government of India. Its aim is to provide holistic treatment of all issues that impact corporate functioning to help today’s business and shape tomorrow’s. The Hon’ble Minister of State for Finance & Corporate Affairs is the President of IICA. Secretary, Ministry of Corporate Affairs is the Chairperson of the Board of Governors, which has many eminent personalities. The state-of-the-art campus of IICA is located at IMT Manesar, Dist.Gurgaon,Haryana. The Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA), has been established to foster understanding of the regulatory framework, encourage innovative responses to business environments and focus on all other relevant issues affecting the MSMEs. It enables capacity building through training and interactions such as seminars and workshops, engages in documentation and research on MSME practices, encourages cluster development initiatives and uses it’s pivotal cross-cutting position to create synergy among various facets of the MSME sector. It also engages businesses and corporate entities in dialogue with implementation agencies and administrative bodies and policy makers, in order to foster a holistic atmosphere of mutual trust and collaborative action.

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Track Record in Skill Development & Knowledge Enhancement initiatives for Enterprise Development The Centre for MSME supports the development of Micro, Small & Medium Enterprises by building up the capacities of MSMEs and Chambers of commerce & industries to provide improved and sustainable services to MSME sector. Centre for MSME is well positioned to offer capacity building & advisory services to MSME stakeholders & working with partners such as Ministry of MSME, SIDBI, NSDC, IL&FS Clusters, DC-Handicrafts, DC-MSME, BSE-SME, NSE, Banks, Directorate of Industries, MSME Associations and international organizations such as ZDH/SEQUA, GIZ, and IGEP Foundation. The initiatives & programs undertaken by Centre for MSME have addressed the various Risks & Issues of compliances related with Labour laws, Contract labour, Export & Import, Finance, Goods and Service Tax (GST), Supply Chain and Enterprise Risk Management, having direct impact on MSMEs. These continuous knowledge enhancement & skill development initiatives have reached to the MSMEs of Food processing, Marble & Granite, Electronics security, Engineering & Automobile, Apparel & Garment, Textiles, Handicrafts & Handlooms clusters. The overall goal is to enhance Core Business Capabilities of MSMEs to enable them to become Self Driven. Industrial Capacity Building & Knowledge Enhancement Workshops

Clusters Sectors

Financial Management,

Export Management,

Supply Chain Management,

Labour Laws

Food processing (M.P.),

Agriculture (Karnal),

Chemicals,

Marble & granite (Rajasthan),

Electronics security

(Faridabad & Noida),

Auto components, Automobile

,engineering (Manesar) in the

MSME sector.

Apparel & garment (Gurgaon), textiles, handicrafts & handlooms

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Issues and Perspectives in lending to MSMEs & Agriculture sector,

Risk Analysis, Credit Appraisal & Lending Decisions,

Limited Liability Partnership (LLP) - Relevance to SMEs, Competition Law & Policy for MSMEs.

Stakeholder Consultation on Insolvency Legal Framework in India with special focus on MSMEs,

National MSME Conclave

Train-The-Trainer Program on IPR challenges for Ministry of MSME Officers

Banks & other lending agencies

With active participation of MSME stakeholders

With active participation of MSME stakeholders

With active participation of MSME stakeholders

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Linkage with Central/ State Ministry/ Department, or National/ International funding agency for implementing skill development programmes in MSME Our various programs & projects have been undertaken with MSME stakeholders such as Ministry of MSME, SIDBI, IL&FS Clusters, DC-Handicrafts, DC-MSME, BSE-SME, NSE Emerge platform, Directorate of Industries - Uttarakhand, MSME Associations and international organizations such as ZDH/SEQUA, GIZ, and IGEP Foundation.

Projects undertaken

Title of assignment Duration (From- To)

Details of Client Lead Firm/Organization

Short Description about assignment

Mapping Energy, Environment and Social Issues among MSME Clusters in India - Way Forward

2008-2012

Knowledge partner

Knowledge partner

Mapping of MSME Cluster

IICA-GIZ Business Responsibility (BR) initiative.

Phase-I 2008-2012 Phase-II 2012-2014

Joint Project

Prime Consultant as Lead Partner

Bilateral Business Responsibility Project

Two-day duration Seminar / Workshop on Effective Financial Management for MSMEs

13-14 July, 2015

Joint Project with International Funding Agency -ZDH/SEQUA Partnership Project in India for Implementing Skill Development Programmes in MSME

Prime Training Institution as Lead Partner

Capacity building of Chamber of Commerce & Industry ( 5BMOs from four states), central & state government development organizations

Five Day Train-The-Trainer for Ministry of MSME Officers

05-09 September, 2016

Ministry of MSME officers

Prime Training Institution as Lead Partner

Ministry of MSME sponsored

Two-days duration Seminar / Workshop on IPR - Scheme" Building awareness on Intellectual Property Rights for Micro, Small & Medium Enterprises (MSME)" under NMCP

December, 2016

MSMEs & their stakeholders

Implementing agency Building awareness on Intellectual Property Rights for Micro, Small & Medium Enterprises (MSME)" under NMCP

Two-days duration training program on Goods & Services Tax (GST)

13-14 June, 2017

Exclusively for the officers of Jhajjar Power Ltd.

Prime Training Institution as Lead Partner

Sponsored by Jhajjar Power Ltd.

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GLIMPSES OF THE CAMPUS

GLIMPSES OF THE CAMPUS - OTHER FACILITIES

The 72 room hostel allows participants to come in and avail of our residential on-course facilities. The reception is manned 24 hours for the convenience of guests. The spacious dining hall is maintained and run by expert staff for the most satisfactory experience and boasts of an onsite caterer with an extensive range of delicious menus suitable for every occasion, while the well appointed single and double occupancy rooms are an invitation to learn while residing in the most conducive and restful environment.

The 275 seater auditorium boasts world-class light and sound systems and ergonomically designed features, ideal for the conducting of seminars and other seminal events.

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Present infrastructure with organization

Area of Focus

Research & Knowledge Creation

Establish Centre for MSME as hub

of knowledge creation.

Collaborate with Institute & experts

of repute and conduct research.

Develop Best Practices, Sector

Guidelines, SMEs tool kits and

Strategy development for MSMEs.

Capacity Building

MSME outreach and stake holder

consultation through Seminar,

Workshops and forums.

Conduct capacity building courses

and trainings for MSMEs, Sensitize

Policy makers and key MSME

stakeholders.

Advisory Services & Consultancy

Serve as primary point of contact for

internal and external stakeholders in

MSME sector.

Capacity Building Advisory services to

create and strengthen the “Vision” of the

Chambers of Commerce & Industry,

Associations & Federations of Business

Organizations.

Facilitate Policy Advisory and Influence

Policy decision.

Foster MSME Ecosystem Development.

Provide consultancy for SME and

Entrepreneurship development.

Centre for MSME

IICA Resources &

knowledge base

Linkages with MSMEs,

Industry Associations &

specialized Institutions

State of the art well

established support

infrastructure

Network of

Consultants/ Experts

& Service Providers

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RECENT PROGRAMS/INITIATIVES

To identify & discuss various factors & critical issues impacting the MSMEs & to share the best practices for overall growth of MSME sector, the Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA) organised “National MSME Conclave 2014” at Scope Auditorium, Scope Complex, Lodhi Road, New Delhi. The conclave was organized with the theme 'Let’s unlock India’s MSME Potential: A New Vision' to address various key issues that are creating hindrances in the growth path of the micro, small and medium industries sector.

Sh. Kalraj Mishra, Honorable Minister of MSME, Ministry of MSME, graced the occasion as Chief Guest in the National MSME Conclave 2014. In his inaugural address, he informed the gathering of industrialists, professionals & entrepreneurs about government policy initiatives for handholding of the MSME sector.

The National MSME Conclave 2014 witnessed the participation of 240 SMEs having turnover between 20 - 300 crores and e-commerce majors like snapdeal & ebay besides participation of supporting organization’s Policy Makers such as members from Ministry of MSME, Ministry of Science and Technology, NSIC, NSDC, NIESBUD, GIZ/ZDH SEQA, Engineering Export Promotion Council, Energy Efficiency Services Limited, National Stock Exchange and Bombay Stock Exchange, IGEP Foundation and Captains of Industries.

Indian Institute of Corporate Affairs (IICA) and BRICS Chamber of Commerce & Industry (BRICS-CCI) jointly organised a Conference - Interactive Dialogue – Contemporary Business Issues in BRICS Countries. The conference was organised for delegates from BRICS (Brazil, Russia, India, China and South Africa) nations at the Russian Centre of Science and Culture (RCSC) at New Delhi. The Indian delegation of 70 SMEs led by Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA), had an exclusive interactive dialogue with business delegates from the BRICS nations under the umbrella of IICA. However, the conference was a landmark in the global initiative towards accelerating MSME growth and linking them with the large scale industrial segment. It also emerged as an extremely successful effort in promoting the networking of MSMEs within the BRICS nations towards mutual benefit. It shed light on the issues and challenges that impact MSMEs, government supported schemes for MSMEs and salient features of the Make-in India campaign.

The Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA) in collaboration with the School of Corporate Law, IICA, organised a One Day Stakeholders Consultation on Insolvency Legal Framework in India with special focus on MSMEs at the IICA Campus, Manesar. The consultation programme was attended by various delegates belongs to BRICS Chamber of Commerce & Industry, Victory Blaze Renewable Energy, Insha Selar India, Green Solar Tree, Prakash Engineering Products, Komar Machine Tools, M.B Rubber Pvt Ltd, Ramnagar Cooperative Bank etc. During the panel of discussions it was found that, time needs deliberation for separate insolvency legal regime for non-corporate entities; separate chapter on Insolvency, separate rehabilitation fund, and comprehensive revival and exit procedure under the MSMED Act, 2006.

National MSME Conclave 2014 - 19th Nov, 2014

Conference for the SMEs coming from BRICS

Nations - 30th Jan, 2015

One day Stakeholder Consultation on

Insolvency Legal Framework in India with

special focus on MSMEs - 27th Feb, 2015

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The Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA) in

collaboration with the School of Corporate Law at IICA, organised a One-day Conclave on

Labour Law Reforms at latter’s premises in Gurgaon. The speakers on this occasion asserted

upon the importance of industrial peace and harmony for attaining stability of labour,

acceleration in production and growth of economy as well. Besides they also suggested certain

reforms like (i) deriving a standardised formula for calculation of minimum wages under the

Minimum wages Act, (ii) automatic and hassle-free transfer of PF on change in job, (iii)

negotiating Social Security Agreements with USA and UK on par with other European countries

so as to prevent double coverage under Social Security schemes; (iv) creating a mechanism for

identification of the work background of labour ensuring a crime free work space. The Conclave

was attended by dignitaries from Industry.

The Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA) organized two day residential workshop on “EFFECTIVE FINANCIAL MANAGEMENT” for MSMEs at its Manesar campus, Gurgaon. A total of 31 delegates comprising of 22 renowned captains of MSMEs (5 BMO’s from 4 states, Rajasthan, U.P., Punjab (Mohali) and M.P.). Besides, senior officials from Central & State Govt. Agencies (Directorate of Industries, Uttarakhand, Haryana Power Generation Corporation Ltd., Central Bank of India, Office of Development Commissioner (Handicrafts) and Managing Directors of MSMEs) directly participated. This workshop was a landmark initiative towards Capacity Building of the Chambers of

Commerce & Industry, Associations & Federations of Business Organizations and Development

organizations engaged in development of MSMEs.

Overall feedback of the workshop conducted at IICA campus, Manesar in terms of parameters such as course structure, agenda, contents, quality, support of trainers, environment and infrastructure of IICA has been received Excellent and Outstanding from the delegates. The main objective of this proposed workshop on Effective Financial Management was to ensure that the SMEs attain the competency required to maintain the right balance in the setting-up of objectives that affect the value of their business in terms of: Liquidity Profitability Efficiency Growth Return on Capital The Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA) organized a Two-Day Workshop on Export Management for Micro, small & Medium Enterprises [MSMEs] from Dec 14th to Dec 15th, 2015 at the IICA Campus, Manesar. The workshop which was designed to enhance exporters business prospects, provided valuable insights into such key areas like Merits of Export Trade Plan, Export Marketing & its Expansion Strategy with inputs

Labour Law Conclave (Recent Reforms and

Current Changes) - 23rd March, 2015

Two Day Workshop on Effective Financial

Management – 13-14 July, 2015

Two Day Workshop on Export Management -

14-15 Dec, 2015

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about new avenues of trade and commerce for Indian Exporters in Africa and Germany, Resources trends & Trade Practices of Export, How to Compete more successfully, How to reduce dependence on few major customer and expand customer base, Important issues of Exports and Advanced Issues of Exports etc.

The workshop was attended by handful of SME Exporters, Academia and Seniors Corporate Affairs Directors including foreign delegates coming from Daksha Imaging Technologies Pvt. Ltd., M/s IAC Electricals Pvt. Ltd., Rangsutra Crafts India Ltd., Sirohi Agro Foods Pvt. Ltd., Beri Udyog Pvt. Ltd., Savio Texcone Pvt. Ltd., T.C. Agro Food Industries, Gautam Buddha University, Orica, Bridge and Roof Co. (India) Ltd., Primo Foods Pvt. Ltd., Primo Foods Pvt. Ltd., Devans Modern Breweries Ltd., Royal Enfield (A Unit of Eicher Motors Ltd.)

The workshop also included an interactive session during which the speakers clarified various points raised by the participants. Overall, the MSME Exporters benefited from various brilliant sessions during the Workshop on Export Management.

On Feb 08th and 09th, 2016, Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA) organized a Two‐Day Workshop on “Supply Chain Management for Global Competitiveness” for Micro, small & Medium Enterprises [MSMEs] at the IICA Campus, Manesar.

The workshop was attended by Seniors Corporate affairs Managers, General Managers, Directors coming from Government and Private sector like M/S Heavy Engineering Corporation Ltd (HEC Ltd.), Yamuna Cable Accessories Pvt. Ltd., Royal Enfield (A Unit of Eicher Motors Ltd.), Goodie International Pvt. Ltd., MSME‐DI, Directorate General of Supply and Disposal (DGS&D) State Bank of Hyderabad, Bookmyooh.com and Bovion Health Care Pvt. Ltd.

This workshop focused on cross disciplinary knowledge and skills to succeed in today’s high‐tech global economy, offered valuable tips for creating and managing opportunities for reducing costs, driving growth and building maintainable competitive advantages. The participants liked spectrum of topics covered, the varied experience of the speakers, case studies, sharing of best practices with peer-to-peer networking.

Taking the key insights from the previous workshop on Labour Laws (recent reforms and current changes) held during 2014 ‐ 15, Indian Institute of Corporate Affairs (IICA) through its Centre for Micro, Small and Medium Enterprises (MSME) organized a Two‐Day Workshop on Labour Laws from April 22nd & 23rd, 2016 at the IICA Campus, Manesar.

Majority of the delegates attended the workshop came from Corporates, Academic institutions, and PSU like R. S. Infraprojects Pvt. Ltd., MTANDT Rentals Ltd., Jotwire India Pvt. Ltd, RITES Limited, The Institute of company secretaries of India (ICSI) and Gautam Buddha University.

The inaugural proceedings of the workshop commenced on Friday April 22, 2016 after the arrival of participants and with Welcome Address: Evolving Theme of the workshop on”Labour Laws” by Mr. Rajesh Batra, Head, Centre for MSME and he pointed out that various initiatives are evident in the Government’s move to make labour markets more flexible to address

Two Day Workshop on Supply Chain

Management for Global Competitiveness -

08-09 Feb, 2016

Two-Day Residential Workshop on Labour Laws

(Second Edition) at IICA,Manesar -

(22-23 April, 2016)

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employability gaps effectively with a significant thrust on labour reforms and development of industry in three forms: 1) The government is linking labour reforms to improvement in ease of doing business – in

terms of setting up the business, operating it as a going concern, an exit norms – so that the available human and material assets can be put to more productive use,

2) The labour reforms are also rightly, linked to improving worker benefits‐like providing for a minimum pension under Employees Pension Scheme, making Provident and Pension Funds portable and allowing e‐filing of compliance reports through Shram Suvidha Portal.

3) There is also stress on easing the compliance burden for small and medium businesses, like by permitting self‐certification in some areas, restricting the powers given to labour inspectors through Random Inspection Scheme, and by modernizing labour laws.

The workshop focused on concept like Impact of labour reforms on India’s Global Trade Competitiveness and Make in India; Policy Perspective on Skill Development‐Need for building an Eco‐System; Workplace Conflict‐Roles of Social Partners; Case studies on Labour Issues; Understanding Labour Reforms; Occupational Safety and Social Protection. The workshop also addressed labour and human resource related issues to make business more responsible towards society.

Taking the key insights from the previous workshop on “Effective Financial Management” held in July, 2015 at IICA Campus, Manesar, wherein 31 delegates comprising of 22 renowned captains of MSME associations, senior officials from central & state government agencies and banks participated, with overall feedback received “Excellent & Outstanding” proved a landmark initiative towards capacity building of the Associations and Federations of Business Organizations and Development agencies, Indian Institute of Corporate Affairs through its Centre for MSME (Website: www.iica.in) in collaboration with our knowledge partner “R BHARGAV & ASSOCIATES” organized Workshop on “Effective Financial Management (2nd Edition)” for SMEs & Corporate houses in pursuit of its strategic goal of capacity building of country’s manufacturing and service sector.

This workshop on “Effective Financial Management for SMEs and Corporate houses” focused on

critical elements of financial decision making for organisations such as sources of finance,

management of working capital, Capital Raising Options, Mergers and Acquisitions and

Succession planning for businesses. Besides, it examines the role of financial strategy in

determining the organisation’s continued success and achieving business objectives.

Majority of the delegates attended the workshop came from Corporates, and Government Departments like Directorate of Industries, Uttarakhand, Hyundai Motor India Engineering Private Limited, SGA Power Systems (P) Ltd, Sakata Seed India Pvt Ltd.

The participants liked spectrum of topics covered, the varied experience of the speakers, case studies, sharing of best practices with peer-to-peer networking.

Workshop on “Effective Financial Management” for

SMEs and Corporate Houses (2nd Edition)

(29-30 August, 2016)

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Indian Institute of Corporate Affairs (IICA) through its Centre for MSME, is an approved implementing agency with the Ministry of MSME for “Implementation of the Scheme – Building awareness on Intellectual Property Rights (IPR) for Micro, Small and Medium Enterprises” (a Component of National Manufacturing Competitiveness Program).

To equip the participants (35 officers of Ministry of MSME) to further educate and support MSMEs in raising awareness on Industrial Designs and Trademarks related issues in general and more specifically on educating them about the protection arises for design and trade mark act and its benefits to the economy, the 5-Days Train-The- Trainer Program on “Strategic Management of IPR with higher focus on Industrial Designs & Trademarks” was organized by Indian Institute of Corporate Affairs (IICA) through its Centre for MSME, exclusively for Ministry of MSME Officers from 05 – 09 September, 2016 at the IICA Campus, Manesar.

This 5 Days Train-The- Trainer Program was sponsored by Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, exclusively for Ministry of MSME Officers.

This training program was a landmark initiative towards providing opportunities to trainers for proper training and continuous knowledge up gradation. Taking the key insights from the previous two workshop on “Labour Laws” (Recent reforms and current changes) held in March 2015 and April 2016, Indian Institute of Corporate Affairs (IICA) through its Centre for MSME, organized Third edition of Labour Laws workshop chapter on “Contract Labour” on October 13 – 14, 2016 at IICA campus, Manesar in pursuit of its strategic goal of Capacity Building of MSME stakeholders.

The workshop was designed to provide valuable insights into such key areas such as Overview of Plight of contract Labour issues in respect of Employers and Contractors, Management take on issues faced about the Contract Labour with practical aspects for dealing, Compliance, Terms of engagement and International best practices on contract Labour issues.

The workshop was attended by delegates coming from mainly Cochin SEZ (Special Economic Zone), Unicon Human Power Pvt. Ltd., FIS Payment Solutions & Services India Pvt. Ltd., Financial Software & Systems Pvt. Ltd., Glassco Laboratory Equipments Pvt. Ltd, GKB Rx Lens Pvt Ltd, LIC India Limited. Indian Institute of Corporate Affairs (IICA) through its Centre for MSME, organized Two-day seminar / workshop on ‘Strategic Management of Intellectual Property Rights & its Challenges’ on 22nd - 23rd December, 2016 at the IICA Campus, Manesar.

This workshop on “Strategic Management of Intellectual Property Rights & its challenges” was envisioned to (i) Educate and support MSMEs, Industry Association and other concerned stakeholders in raising awareness on IPRs related issues in general and more specifically on educating them about the value and protection of IPR and its benefits to the economy; (ii) Boost

Five – Days Train-The- Trainer Program on “Strategic Management

of IPR with higher focus on Industrial Design & Trademarks”

(05 – 09 September, 2016)

Two Day workshop on “Contract Labour”

(13 – 14 October, 2016)

Workshop on “Strategic Management Of Intellectual Property

Rights & It’s Challenges” (22 – 23 December, 2016)

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the level of awareness, curiosity, knowledge and information about IPR issues and to develop a broad understanding of the need to integrate IP in MSME Sectors with proper strategies and business planning. The workshop was attended by forty three (43) delegates comprising SMEs, Start-ups as well as Academia and Directors / senior officers of the Organizations.

Indian Institute of Corporate Affairs (IICA), through its Centre for MSME organized National Level Program on “MSMEs & Start-ups 2017 Revolution - Driving India Growth” on 28th January, 2017 at Russian Centre of Science & Culture, New Delhi, an interesting event with extremely informative conversations and insights witnessed active participation from major stakeholders, SMEs and Start-ups based in NCR.

The program was organized with the theme “Connect, Share, Evolve”, which essentially means always being a step ahead of highly savvy, well informed customers and anticipated their demands”.

The National Level Program on “MSMEs & Start-ups 2017 Revolution - Driving India Growth” had wide participation from stakeholders like MSME-DI, New Delhi (DC-MSME, Ministry of Micro, Small and Medium Enterprises), SIDBI, NSE Emerge, IL&FS Clusters, Federal Bank, Power2SME.Besides, SMEs networking partners like SMBConnect, Indian Industry Experts Network, BRICS International Forum, BRICS CCI , CMAI Association of India, Indian Startups, WWSO, AVQI, AICOSMIA, Indian Law Watch.

Indian Institute of Corporate Affairs (IICA) through its Centre for MSME, organized a Two-Day training program on ‘Digital Marketing’ for Entrepreneurs, Marketing Professionals, Start-ups, SMEs, large Corporate, Banks and Govt. Development agencies engaged in the development of SMEs from March 3rd to March 4th, 2017 at the IICA Campus, Manesar.

The majority of the delegates were from SMEs like Securico Electronics India Limited, Change Alliances Pvt. Ltd., Combustion Research Associates, Development agencies like Directorate of Industries (Uttarakhand), DGSnD and Banks like Oriental Bank of Commerce and City Union Bank.

Indian Institute of Corporate Affairs (IICA) through its Centre for MSME organized Three-Day Capacity Building Training Program on “Goods & Services Tax (GST) & Contract Management” (mainly pertaining to Procurement of Goods & Services) for various reputed public and private sector organizations from 27th April, 2017 to 29th April, 2017 at IICA Campus, Manesar.

The Training program brought along some nice discussions and much needed knowledge on the subject of Goods & Services Tax (GST) & Contract Management. The participants expressed their satisfaction about the learning program and conveyed that IICA is constantly trying to raise the standards of the industry by organizing such training programs.

National Level Program on MSMEs & Start-Ups 2017 Revolution –

Driving India Growth (28 January, 2017)

Workshop on “Digital Marketing” (03 – 04 March, 2017)

Training Program on “GST & Contract Management”

(27–29 April, 2017)

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With a view to assist the Government in effective implementation of GST Laws and furthering various IICA initiatives and to educate the industries at large about the diverse facts and facets of Goods & Services (GST), IICA conducted Two Day Capacity Building Training Program exclusively for the mid-level and senior management officials at the Jhajjar Power Limited – Learning & Development (L&D) Centre, Jhajjar (Haryana). The aim of the training program was to ensure the organization specific system improvement for the Jhajjar Power Limited and equip their management team from Finance, Commercial and HR stream to develop a broad understanding about: • How GST will create an open and conductive taxation environment. What impact it will bring

on the Business Model. • How to gear up for GST, What Preparation of GST is required for becoming future ready The management of the Jhajjar Power Ltd. appreciated the tailor made course structure and contents. Overall the participants exhibited high degree of satisfaction.

Indian Institute of Corporate Affairs (IICA) through its Centre for MSME, organized 3rd series of the Two-Day training program on “Goods & Service Tax” (GST) for various reputed public and private sector organizations from June 19th to June 20th, 2017 at the IICA Campus, Manesar. The training program brought along some nice discussions and much needed knowledge on the subject of Goods & Services Tax (GST). The participants expressed their satisfaction about the learning program and conveyed that IICA is constantly trying to raise the standards of the industry by organizing such training programs. All participants expressed appreciation about different aspects & experiences such as overview of program, hospitality, infrastructure etc. provided by IICA during this two-day GST Hands on training program at IICA Campus.

LONG TERM PROGRAM/INITIATIVES

The Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA) is organizing a National MSME Conclave (3rd edition) for addressing issues creating hindrances in the growth path of the MSME sector. The theme of this National MSME conclave - “Changing face of Indian MSMEs: decoding the future”, will focus on issues critical to the functioning of enterprises in India. As India embarks on a new wave economy, it adopts an MSME opportunity framework that will provide the necessary impetus to seize the opportunities created by – Emergence of domestic demand led by significant increases in spending and consumerism Increase in spending in infrastructure and defence sectors Increase in foreign direct investments in existing and emerging businesses in India Foreign companies investing in India for their global market requirements (Make in India) The double digit growth expected in numerous business sectors The cluster initiatives /development to improve potential role of MSMEs.

National MSME Conclave (3rd Edition)

Two day organisation specific training program on “Goods & Services Tax” (GST) (13–14 June, 2017)

Training Program on “Goods & Services Tax” (19–20 June, 2017)

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SHORT TERM PROGRAM/INITIATIVES

Centre for MSME, an integral part of Indian Institute of Corporate Affairs (IICA) offers a unique platform for Indian SMEs and international professionals to cross fertilize their experiences and ideas in developmental training, sharing knowledge and capacity building. Centre for MSME has successfully organized capacity building programs & special conferences in the ten (10) key areas for sharing knowledge and capacity building of MSMEs & wide stakeholders:

1) Business and Financial Management 2) Leadership and Good Governance 3) MSME Management, 4) Export Management, 5) Supply Chain Management (SCM) for Global Competitiveness, 6) Labour Laws: Compliance Issues, Reforms & Challenges 7) Contract Management (mainly pertaining to procurement of goods and services by Central

Ministries and PSUs) 8) Intellectual Property Rights (IPR) for MSMEs 9) Business Process Led Innovation for MSMEs 10) Programme on Start-ups (Enterprise) India growth.

Open Enrolment Capacity Building Training Programme

(Both short term and long term)

S. No. Title of Programme Duration Date

1. GST & Contract Management (mainly Pertaining to Procurement of goods & services)

3 days 27-29 April, 2017

2. Two Day Capacity building program on Goods & Services Tax (GST)

2 days 13-14 June, 2017

3. Four Days Capacity Building - Triple Specialization Program - “Goods & Services Tax (GST), Effective Finance & Enterprise Risk Management”

4 days 19-22 June, 2017

4. One Day GST Hands-on Training Program on “GST Implementation for Banking Sector, Financial Services Sector & NBFC Business”

1 day 25th August, 2017

5. International Business Leadership Program & and Supply Chain Management for Global Competitiveness and Goods & Services Tax Law (Dealing with post GST impact & implementation issues)

5 days 10-14 October, 2017

6. Procurement (procedures & contracting) and 2nd edition of GST Hands-on Training Program on “GST Implementation for Banking Sector, Financial Services Sector & NBFC Business”

5 days November, 2017

7. Export Management & Digital Marketing 2 day December, 2017

8. Leadership & Stress Management 5 day January, 2018

9. Import Process & Custom Clearance 2 day February, 2018

10. MSME Management and Governance of Family Business

5 day March, 2018

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National Level Conference

S. No. Title of Programme Duration Date

1. India’s Leading National MSME Conference

1 day January, 2018

NOTE:-

1) Participation Fee for all 2 day programme will be: for Residential (Rs.20,000/-+ taxes as applicable) and for Non Residential (Rs.15,000/-+ taxes as applicable)

2) Participation Fee for all 3 day programme will be: for Residential (Rs.25,000/-+ taxes as applicable) and for Non Residential (Rs.20,000/-+ taxes as applicable)

3) Participation Fee for all 4 day programme will be: for Residential (Rs.35,000/-+ taxes as applicable) and for Non Residential (Rs.30,000/-+ taxes as applicable)

4) Participation Fee for 5 day programme will be: for Residential (Rs.40,000/-+taxes as applicable) and for Non Residential (Rs.35,000/-+taxes as applicable)

5) Discount @10% applicable on early & group nominations. 6) Our capacity building training programs and workshops have been appreciated by over

100 public & private sector organizations. 7) IICA customizes programs and conferences (in campus and on client site) every year for

wide variety of organizations. 8) Partnership & Sponsorship (from Rs. 50,000 to Rs. 5 lacs) opportunities are available.

A Way-forward

To Develop a Web Portal for Increasing Market for MSMEs and BD Service Providers

Business Linkage Programme – to create linkage between SMEs & Large Corporations etc.

Establishment of IPR Facilitation Centre at IICA, Manesar

Preparation of SMEs Toolkit

Advisory Services

Capacity Building Advisory services to create and strengthen the “Vision” of the Chambers of Commerce & Industry, Associations & Federations of Business Organizations and Development organizations for the growth & development of MSMEs.

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About IICA CAPACITY BUILDING WORKSHOPS The success of our various programmes and workshops owes to the active participation of various stakeholders such as Ministry & its constituent institutions, Central & State PSUs, DC‐Handicrafts, DC-Handlooms, DC‐MSME, NSIC, Ministry of Science & Technology, BSE‐SME, National Stock Exchange, Department of Industries & Commerce of various State Governments, Financial Institutions, MSME Associations, International Organizations like ZDH/SEQUA, GIZ, UNIDO, IGEP Foundation etc. Indian Institute of Corporate Affairs (IICA) through its Centre for MSME, is an approved implementing agency with the Ministry of MSME for “Implementation of the Scheme – Building awareness on Intellectual Property Rights (IPR) for Micro, Small and Medium Enterprises” (a Component of National Manufacturing Competitiveness Program).

Our Workshops are designed to be very limited, to allow for close interactions among the participants and allow focus on individual queries as well. Some of the feedback we have received on the recent workshop (conducted between July 2015 -April, 2017) is given below: I extend my heartiest thanks for conducting such an informative program on GST and

Contract Management. The whole arrangement of the program was very well organised and planned - Jaipuria Institute of Management Lucknow,

The workshop is very beneficial – VLCC Personal Care Ltd. Workshop is good – Visa Info World Pvt. Ltd. Very well organized session - Manav Rachna University Very well organized - Amity University, Haryana All session of the workshop is interesting and useful – Unicon Human Power Pvt. Ltd. First Train-The-Trainer Program for Ministry of MSME Officers - Overall feedback of the

Five – Days Train-The- Trainer Program on “Strategic Management of IPR with higher focus on Industrial Design & Trademarks” (05 - 09September, 2016)” conducted at IICA,Manesar in terms of parameters such as course structure, agenda, contents, quality, support of trainer, environment and infrastructure of IICA has been received excellent & outstanding from the delegates.

Session on “ERP” was found most interesting & brilliant – DGS&D, Goodie International Pvt. Ltd., MSME-DI-Ahmedabad

Session on “Six Sigma” was found most interesting & brilliant – Bovian Health Care Pvt. Ltd., MSME-DI-Mumbai, Goodie International Pvt. Ltd.

Session on “Just in Time” was found most interesting & brilliant – Yamuna Cable Accessories Pvt. Ltd., MSME-DI-Cuttack, Goodie International Pvt. Ltd.

Session on “Important issues of Exports” was found most interesting & useful – Bridge & Roof Co. (INDIA) Ltd., Rangsutra Crafts India Ltd

Session on “How to reduce dependence on few major customers and expand customer base” interesting & useful – IAC Electricals Pvt. Ltd., Devans Modern Breweries Ltd.

“I really appreciate your leadership and the kind of efforts you are putting in at the Centre for MSMEs, IICA, in designing & delivering high value knowledge support/services to the SME sector and its stakeholders. I have gone through the programme Contents of your Workshop on Financial Management, and I find it really practical & tremendously helpful for its target audience, specially SMEs” ‐ UNIDO

“We found IICA’s training module to be comprehensive and well designed” ‐ GIZ Session on “Globalization and Foreign Exchange Issues” was found most interesting & useful

- Udaipur Chamber of Commerce and Industries (UCCI), Central Bank of India Session on “Working Capital Management” & “Governance & Taxation System”, MSME

Finance was found most interesting & useful ‐ Federation of Madhya Pradesh Chambers of Commerce and Industry, M.P. Small Scale Industries Organization (MPSSIO)

All sessions were found most interesting & useful ‐ Mohali Industries Association Session on “Goods & Service Tax” was found very useful ‐Indian Industries Association

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Our Recent Participation

SME’s & CORPORATES

1) Daksha Imaging Technologies Pvt. Ltd. 2) Mohali Industries Association

3) M/s IAC Electricals Pvt. Ltd. 4) M.P. Small Scale Industries Organization

(MPSSIO)

5) Rangsutra Crafts India Ltd 6) Udaipur Chamber of Commerce and

Industries (UCCI)

7) Sirohi Agro Foods Pvt. Ltd. 8) Evonne Industries Pvt Ltd.

9) Beri Udyog Pvt. Ltd. 10) Hind Pharma

11) Savio Texcone Pvt. Ltd. 12) Vindas Chemical Pvt. Ltd

13) T.C. Agro Food Industries 14) M/s. Yamuna Cable Accessories Pvt. Ltd.

15) Gautam Buddha University 16) M/s Pooja International

17) Orica 18) Bayer Bio Science Pvt. Ltd.

19) Primo Foods Pvt. Ltd. 20) Neetee Clothing Pvt. Ltd.

21) Devans Modern Breweries Ltd. 22) Chelsea Mills

23) Royal Enfield (A Unit of Eicher Motors

Ltd.)

24) Elcomponics Sales Pvt Ltd

25) Goodie International Pvt. Ltd. 26) Hyundai Motor India Engineering Private

Limited

27) Bookmyooh.com 28) SGA Power Systems (P) Ltd

29) Bovian Health Care Pvt. Ltd. 30) Sakata Seed India Pvt Ltd.

31) R.S Infraprojects Pvt. Ltd. 32) Unicon Human Power Pvt. Ltd.

33) mtandt Rentals Limited 34) FIS Payment Solutions & Services India Pvt.

Ltd.

35) Jotwire India Pvt Ltd 36) Financial Software & Systems Pvt. Ltd.

37) Oasis Electronics 38) Glassco Laboratory Equipments Pvt. Ltd

39) Indian Industries Association 40) LIC of India

41) GKB Rx Lens Pvt. Ltd 42) Ranvik Exports Pvt. Ltd.

43) Adkindia LLC 44) BIORx Venture Advisors Pvt. Ltd

45) Visa Info World Pvt Ltd 46) Parihar Enterprises

47) Apex Cluster Development Services Pvt

Ltd

48) VLCC Personalcare Ltd.

49) Japan Art Press 50) Vaishno Merchandise Pvt. Ltd.

51) WEBTEL ELECTROSOFT PVT. LTD. 52) Manav Rachana University

53) Amity University 54) Rus Exim Pvt. Ltd.

55) IPE Global Limited 56) Oxford University Press

57) Council for Leather Exports 58) Satvastu Consulting Group

59) Indian Industry Experts Network 60) Okhla Garment & Textile Cluster

61) R Bhargav & Associates 62) Federation of Madhya Pradesh Chambers

of Commerce and Industry

63) JCB India Limited 64) IL&FS Clusters

65) Cresigns Studio 66) Federal Bank

67) AVQI 68) PC Solutions Pvt. Ltd.

69) IKIGAI 70) Ambuja Overseas

71) Karvy Financial Services Ltd. 72) Ignited Business Network

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73) SMBConnect 74) Suparna Herbs (India) Pvt. Ltd.

75) Confederation of Horticulture

Associations of India

76) Marvelaa

77) Top Surveying (India) Pvt. Ltd. 78) AICOSMIA

79) WWSO 80) Weaverbird Engineering & Technology

81) Buzzaria 82) Adastra

83) Personalive IT Solutions 84) ennovations Techserv Pvt. Ltd.

85) Regnant Group 86) IamSMEofIndia

87) Parashvanaath Insurance Solutions 88) G Next Media Pvt. Ltd.

89) The NorthCap University 90) Al-Azhar Technocrafts (P) Ltd.

91) Quality Services & Training Pvt. Ltd. 92) Satyug Darshan Technical Campus

93) Solution Platter 94) Power2SME

95) NSE Emerge 96) BRICS International Forum

97) BRICS CCI 98) CMAI Association of India

99) Indian Startups 100) Swan Industries Pvt. Ltd.

101) Combustion Research Associates 102) City Union Bank Ltd.

103) Securico Electronics India Ltd. 104) Change Alliance Pvt. Ltd.

105) Bayer Vapi Private Limited 106) Bayer BioScience Private Limited

107) Bayer CropScience Limited 108) Bayer Seeds Private Limited

109) Mytrah N4 Electric Pvt. Ltd. 110) Jaipuria Institute of Management

111) Yutaka Autoparts India Pvt Ltd 112) PTC India Financial Services Limited

GOVERNMENT, PSUs & AUTONOMOUS

113) Ministry of MSME 114) DC-MSME, New Delhi

115) Directorate of Industries, Uttarakhand 116) Office of Development Commissioner

(Handicrafts)

117) Bridge and Roof Co. (India) Ltd. 118) HEC Ltd.

119) State Bank of Hyderabad 120) The Institute of Company Secretaries of

India

121) RITES Ltd. 122) Haryana Power Generation Corporation

Ltd.

123) Central Bank of India 124) Cochin Special Economic Zone (CSEZ)

125) Indian Institute of Public

Administration

126) Regional Centre for Biotechnology

127) State Bank of India 128) DGS&D

129) SIDBI 130) Oriental Bank of Commerce

131) NSKFDC 132) GAIL Training Institute

133) NLC India Limited 134) National Highways & Infrastructure

Development Corporation Ltd

135) Indian Railways Institute of Signal

Engineering and Telecommunications

136) Unique Identification Authority of India

(UIDAI)

137) Green Gas Ltd. 138) Bank of Maharashtra

139) Rail Vikas Nigam Ltd. 140) DSIIDC

141) National Handloom Development

Corporation Ltd.

142) Indian Renewable Energy Development

Agency Limited

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WELCOME ADDRESS TO DELEGATES FROM HEAD-CENTRE FOR MSME, IICA

Mr. Rajesh Batra Head-Centre for MSME Indian Institute of Corporate Affairs (Ministry of Corporate Affairs)

Dear Participants,

At the outset, we have great pleasure to welcome you for attending One Day GST Hands-on Training Program on “GST Implementation for Banking Sector, Financial Services Sector & NBFC Business” organized by Indian Institute of Corporate Affairs (IICA).

The professionally designed Special GST Hands-on training workshop to be conducted by Indian Institute of Corporate Affairs (IICA) for Banking, Financial Services Sector & NBFC Business will be focused from the basic concepts of indirect taxes related to banking, financial services sector & NBFC business, before and after GST and how they affect banking & financial services sector business.

The objective of this one day training program on GST for banking & financial services sector business is to enhance the knowledge as well as to assist the banks in implementing GST in the Banking industry. GST for the financial services and banking sector would be a major transformation as it would have an impact on the financial products, the IT systems, processes and a shift from centralized compliance to state-wise compliance. This is essential to identify implementation requirements for banking sector for smooth transition to GST regime. This program aims to facilitate the banking professionals by: Providing specialized and updated knowledge in the area of GST in a systematic manner. Providing solutions for the implementation issues faced by banks for implementing GST in

Banking and Financial services sector. You are very well aware that Indian Institute of Corporate Affairs (IICA), Manesar (Dist. Gurgaon), is an autonomous institute of Ministry of Corporate Affairs, Govt. of India. It is mandated to conduct high quality research in ‘corporate affairs’ and build a knowledge sharing system through synergized partnership with premiere institutions. The IICA, being a national institution in capacity building, service delivery and action research, renders holistic insight into all issues relating to corporate affairs.

We have immense pleasure to inform you that the Centre for MSMEs, an integral part of IICA, is established for helping in capacity building to various Ministries, Government Departments, public sector enterprises, Chambers of Commerce & Industry, Associations & Federations of Business Organizations, Trade Promotion Organizations, NGOs, Exporters other Economic Development Corporations (NSIC, DC-MSME, SIDBI, IFC, German & UN development agencies) engaged in the development of MSMEs.

A brief note on work done for the benefit of MSME sector

The Centre for MSMEs has been established to foster understanding of the regulatory framework, encourage innovative responses to business environments and focus on all other relevant issues affecting the MSMEs. It enables capacity building through training and interactions such as seminars and workshops, engages in documentation and research on MSMEs practices, encourages cluster development initiatives and uses it’s pivotal cross-cutting position to create synergy on various facets of the MSME sector.

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Set up as the premier organization for cutting-edge intellectual leadership in corporate regulation, governance and running sustainable businesses, the IICA is a think-tank, capacity building and service delivery institute. Its work enables corporate growth, reforms and regulation through synergized knowledge management, and global partnerships thus offering real-time solutions. IICA propels knowledge and training through its network of schools and centres.

IICA has entered into national and international collaborations to further its agenda of promoting best practices for MSMEs in India. Its partners include The George Washington University, International Finance Corporation, giz (German development Agency), ZDH SEQA, Institute of Directors, London, Tata Institute of Social Science (TISS),ISB, TERI, FICCI, CII, PHDCCI, ASSOCHAM, Coca-Cola India Foundation (CCIF), Grant Thornton, Institute of Public Enterprises, Indian Institute of Management (IIM), IIFT, Indo-American Chamber of Commerce (IACC) etc.

Our illustrative list of recent activities in relevant areas for the benefit of MSMEs are as below:

Industrial Capacity Building Workshops

One day workshop – Limited Liability Partnership (LLP) - Relevance to Small and Medium Enterprises

(SMEs)

Workshop on ‘Issues and Perspectives in lending to MSMEs & Agriculture sector.

National Seminar on ‘Corporate Justice: Legal Challenges’ and IPR Challenges.

Innovators roundtable on IPR policies & practices for MSMEs

Programme on Risk Analysis, Credit Appraisal & Lending Decisions for Executives of Banks & other

lending agencies

Programme for Innovators to connect entrepreneurs with IPR & Innovation

Stakeholder Consultation on Insolvency Legal Framework in India with special focus on MSMEs

National MSME Conclave 2014

Labour Law Conclave : Recent Reforms: Current Initiatives

Conference focused on “Interactive Dialogue – Contemporary Business Issues in BRICS Countries” for the

delegates from BRICS (Brazil, Russia, India, China and South Africa) nations

Workshop on Effective Financial Management for MSMEs

Workshop on Export Management

Leadership Development Programme for UCO Bank Executives

Two-day Capacity Building Training Programme On "Governance, Risk Management & Compliance

International Conference on "Responsible Management Education Training and Practice

Workshop on Competition Law & Policy for MSMEs

Two-Day Residential Programme on “Supply Chain Management for Global Competitiveness”

Advanced Seminar in Competition Law and Policy: Merger Control – Project on Capacity Building Initiative

in the Competition Area under Trade Development Program in India (Sponsored by the Delegation of the

European Union to India)

Two-Day Residential Programme on “Labour Laws” (Second Edition)

Workshop on “Effective Financial Management” for SMEs and Corporate Houses (2nd Edition)

Five – Day Train‐The‐ Trainer Program on “Strategic Management of IPR with higher

focus on Industrial Design & Trademarks”

Two-Day Residential Programme on “Contract Labour”

Workshop on “Strategic Management of Intellectual Property Rights & It’s Challenges

National Level Program on “MSMEs & Start-Ups 2017 Revolution - Driving India Growth

Workshop on “Digital Marketing”

Three - Day Training Program on “Goods & Services Tax” (GST) & Contract Management”

Two day organisation specific training program on “Goods & Services Tax” (GST)

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Long term & short term courses The National Law University Delhi-Indian Institute of Corporate Affairs (NLUD-IICA) Joint LL.M.

Programme for one year in “Competition Law and Market Regulation” Six Month Certificate Course on “Corporate Law” Advanced Professional Course in “Competition Law and Market Regulation” for lawyers/economists/

business executives Certificate course for developing “CSR professionals & Trained Social Entrepreneurs”. Chartered Course for Directors aimed at providing director-level men and women with knowledge, skills &

strategies to strengthen their abilities and further their career. IICA Certification Program in “Entrepreneurial Innovation”

Research & Study Mapping Energy, Environment and Social Issues among MSME Clusters in India - Way forward, under the

aegis of the IICA-GIZ Business Responsibility (BR) initiative. Case Studies on Business Responsibility - People, Planet, Profit. Legal Framework for Corporate Social Responsibility Comprehensive guidelines for CSR activities National voluntary guidelines on social, environmental and economic responsibility of Business under the

IICA-GTZ initiative project. (completed)

The Centre for MSME, IICA provides guidance to entrepreneurs and businesses, with weighted inputs from their internal research and the numerous expert panels on board to address various aspects of corporate affairs. It also provides valuable inputs to innovators setting up new businesses, with a special emphasis on MSMEs which have been identified as the pillars of continued growth momentum towards inclusive growth and sustainable business.

To organize various development programmes, we look forward to explore synergy and engagement of your organization with IICA to embark together on another glorious journey with fresh vigor, commitment and focus efforts to carry forward the development of Indian SMEs & Corporate houses.

I am sure with our combined efforts, we will be able to expedite and accelerate our country’s progressive and inclusive agenda.

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ABOUT THE GST HANDS-ON TRAIINING PROGRAM

Professionally designed Special GST Hands-on training workshop to be conducted by Indian Institute of Corporate Affairs (IICA) with R Bhargav & Associates as Knowledge Partner for Banking, Financial Services Sector & NBFC Business. The workshop will be conducted from the basic concepts of indirect taxes related to banking, financial services sector & NBFC business, before and after GST and how they affect banking & financial services sector business.

GST for the financial services and banking sector is a major transformation as it would have a great impact on all the financial products and services of the Banks and NBFCs. GST will also have a great impact on the IT systems, processes and a shift from centralized compliance to state wise compliance in the banking and financial services sector. The banking and financial services sector would need to analyze the provisions of the GST law and its impact on their business. The most awaited and ambitious GST Act has been implemented with effect from July 01, 2017. This is essential to ensure the timely learning and understanding of the same to ensure the correct implementation of the GST law in the banking, financial services and NBFC companies.

The objective of this one day training program on GST for banking & financial services sector

business is to enhance the knowledge as well as to assist the banks in implementing GST in the

Banking industry. GST for the financial services and banking sector would be a major

transformation as it would have an impact on the financial products, the IT systems, processes

and a shift from centralized compliance to state-wise compliance. This is essential to identify

implementation requirements for banking sector for smooth transition to GST regime.

This program aims to facilitate the banking professionals by:

Providing specialized and updated knowledge in the area of GST in a systematic manner.

Providing solutions for the implementation issues faced by banks for implementing GST in Banking and Financial services sector.

PROGRAM HIGHLIGHTS

Dedicated one day packed with interactive sessions comprising slide shows, study material, experience sharing and personal consultation etc.

The program also brings together experts from the industry to inspire changes & facilitate exchange of ideas with peer-to-peer networking.

A certificate of Participation will be awarded to the participants after the successful completion of the program by IICA.

WHO SHOULD ATTEND

Directors, Chief Managers, General Managers, Corporate Tax Managers, Consultants, Tax Advisors, Company Secretaries, Accounts Head, Accountants, Key Management Personnel’s , Governance, Regulatory & Compliance (GRC) officers of Banks, Financial Services sector and NBFCs.

• Owners, CEO’s, CFOs, Managing Directors, Senior Professionals in various executive or commercial roles such as finance, accounts, taxation, legal, Governance, Regulatory & Compliance, marketing, sales, business development & Information Technology.

• Must attend for people with varying level of experience i.e. Senior Management, Middle, General Managers and Program Managers working in DICs (under Directorate of Industries), NSIC, NSDC, DGT, SIDBI, MSME‐DI, Office of DC‐ MSME, Office of DC‐Handicraft and DC‐Handloom, State Industrial Development Corporations, States

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Financial Corporations, EXIM Bank, BRICS Development Bank, IFC, German, US, European & UN development agencies) and other development sector professionals.

• Beneficial to Academia, Corporate professionals, Established & Budding women entrepreneur, Existing & Prospective Entrepreneurs across various verticals viz. manufacturing products as well as IT & IT – Enabled services, Imports & Exports logistics & transportation, shipping lines etc.

PROGRAM DETAILS

Venue

Russian Centre of Science and Culture 24, Firoz Shah Road, Near Mandi House, New Delhi, Delhi 110001

Date 25th August, 2017

Program One Day GST hands-on Training Program on “GST Implementation for Banking Sector, Financial Services Sector & NBFC Business”

Program fee Rs.12,390/= (10,500/- plus 18% GST)

Payment Mechanisms: NEFT Details:-

S. No. Particulars Details

1. Name of the Beneficiary Indian Institute of Corporate Affairs

2. Account Number 604810210000007

3. Type of Account SB‐10

4. Name & Address of Bank Branch Bank of India, Electronic Niketan, CGO Complex, Lodhi Road, New Delhi‐110003

5. Branch Code 6048

6. MICR Code 110013052

7. NEFT IFSC Code BKID0006048

A. Demand Draft:

The programme fee may also be paid through a demand draft drawn in favour of “Indian Institute of Corporate Affairs” payable at New Delhi.

For group reservation from corporate and SMEs as well as for early bird nominations, please contact undersigned:- Mr. Rajesh Batra, Head-Centre for MSME Indian Institute of Corporate Affairs Plot no.:- P 6,7,8, Sec. 5, IMT Manesar, Distt. Gurgaon (Haryana), Pin Code - 122 050 E-mail: rajeshbatra.iica@gmail.com, rajesh.batra@iica.in Phone: 0124-2640000 (2021), 9871417394

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PROGRAM FACILITATOR

Mr. Rajesh Batra Head-Centre for MSME Indian Institute of Corporate Affairs

(Ministry of Corporate Affairs)

Rajesh Batra is currently responsible for several development activities through Capacity Building measures by taking serious initiatives in Entrepreneurship Education, Information, Research and Consultancy, Collaboration for Policy Facilitation, professional endeavors for institutional strengthening, Sector guidelines and advocacy to develop best practices for SMEs. He has long experience of dealing with promotion, development and financing of Micro, Small and Medium Enterprises as well as Agriculture Rural Industries segments, SME competitiveness enhancement and institutional strengthening. Over the last 25 years, he has worked extensively in the Policy development work, Business Strategy, Project Management, Imports, Program management, Procurement & Logistics / Supply Chain Management (SCM) and Business development. He was appointed Sole Arbitrator under the Arbitration & Conciliation Act 1996 by the Chairman-cum- Managing Director of NSIC Limited for adjudication of disputes and differences between NSIC Ltd. and Private Business units. Besides, as a member of core team, he worked closely to lead / oversee the matters related with large scale implementation of Activity Plan / Programs including govt. grant monitoring and administration under the Centrally Sponsored large Schemes of Govt. of India. Rajesh has done his masters in commerce and postgraduate management courses in the areas of Foreign Trade and Marketing. Currently, Rajesh is with Indian Institute of Corporate Affairs (IICA) as Head, Centre for MSME since 25th April 2014. He is working very closely with the industry and with different GOI offices at the Ministry level, State bodies, industry associations/chambers of commerce, entrepreneurship development institutes, SMEs, national and international supporting partners and banks/financial institutions to ensure capacity building at both ends: at the government level as well as at the industries. He gets invited to speak and chair sessions by organizations such as Ministry of MSME and its constituent institutions, Industry Associations and other leading Institutions as well as for select interaction meeting. Before joining IICA – an autonomous institution under the Administrative Control of Ministry of

Corporate Affairs, Government of India, he was working as Dy. General Manager with India’s

apex SME development organization – The National Small Industries Corporation Ltd. (NSIC) –

The Premier Mini – Ratna Government of India Enterprise under Ministry of Micro, Small &

Medium Enterprises.

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PROGRAM SPEAKERProgram Speaker

Mr. Rajeev Bhargav CA

Rajeev is a Chartered Accountant from the Institute of Chartered Accountants of India, an Associate of the Institute of Company Secretaries of India, Law Graduate and Post Graduate in Commerce. Rajeev is a practicing Chartered Accountant in Delhi and has expertise in Corporate Taxation, Company Law and foreign exchange laws. He is providing consultancy to many reputed companies on various aspects of Taxation and Compliances. He has keen interest in mentoring startups and entry level businesses by handholding them in managing their initial challenges and helping a number of entry level businesses under virtual CFO model. Rajeev is an active speaker on various matters related to Compliances and is also associated with Indian Institute of Corporate Affairs as Guest Faculty for its Seminars. He is having over 12 years of experience in various aspects of Finance & Compliances. He has exposure to manufacturing and service industries across all size of companies. He has worked with organizations like Itron (USA), Maccaferri (Italy), s.Oliver (Germany) and Orient Craft prior to founding his CA Firm ‘R Bhargav & Associates’.

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PROGRAM SCHEDULE

Time Program Speaker

09:30 – 10:15 Registration

10:15 – 11:15 Welcome address (evolving theme & introduction of the delegates) Key Note presiding address by DG & CEO, IICA Address by Additional Development Commissioner, Ministry of MSME Plenary Session - Decoding the GST Law- Banking, Financial Services Sector & NBFC Business in the new GST Era Panellist: Prof. N.K. Goyal, Mr. P. Udayakumar, Ms. Suparna Trikha, Mr. Joginder Jhamb, one senior participant from bank.

Mr. Rajesh Batra, Head-Centre for MSME, IICA Sh. Sunil Arora, DG & CEO, IICA Sh. Piyush Srivastava, ADC, Ministry of MSME Moderated by: Dr. H.P. Kumar, Director – External Affairs, Power2SME

11:15 – 11:30 Tea with snacks

SESSION1 11:30 – 01:00

Key features of GST – main concepts

Mr. Rajeev Bhargav, ACA, ACS, LLB, M.Com

01:00 – 01:45 Lunch

SESSION 2 01:45 – 03:30

Valuation Rules Input tax credit mechanism under GST GST Impact on Sale of Financial Products and

Services in Banking & Financial Services Sector

Mr. Rajeev Bhargav, ACA, ACS, LLB, M.Com

03:30 – 03:45 Tea with cookies

SESSION 3 03:45 – 05:00

Issues in banking sector Transitional Provisions under GST Place of Supply of Financial Services and Products.

Mr. Rajeev Bhargav, ACA, ACS, LLB, M.Com

05:00 – 05:30 Concluding session followed by distribution of certificates

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Goods and Service Tax (GST)

Key Features

CA Rajeev BhargavACA, ACS, LLB, M.Com

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Contents

CA Rajeev Bhargav

GST – Positives vs. Negatives

Background

History

Key Features of GST

Indirect Tax Structure in India – Present vs. GST

Challenges Ahead of GST

Acknowledgement

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Background

GST is a tax on goods and services, which is levied at each point of sale orprovision of service, in which at the time of sale of goods or providing theservices the seller or service provider may claim the input credit of tax which hehas paid while purchasing the goods or procuring the services.

It is designed to simplify present indirect tax system by integrating the unionexcise duties, customs duties (CVD/SAD), service tax and state VAT into a singlestructure.

Presently there are around 160 Countries who have adopted GST in one form oranother.

CA Rajeev Bhargav

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History – A 17 Year Old Dream

CA Rajeev Bhargav

•Way back in year 2000 Shri A.B. Vajpayee set up a committee headed by Asim Dasgupta,for designing GST model which suits Indian Federal Structure.

•In the year 2004, Dr. Kelkar Task Force recommended the need of Goods and ServicesTax (GST) in India.

•The idea was first mooted in Budget for 2006-07 by then Finance Minister Mr. P.Chidambaram and it was proposed to be introduced w.e.f. 1st April 2010.

•The Government came out with a First Discussion Paper on GST in November, 2009.

• The Government introduced the 115th Constitution Amendment (GST) Bill in the year2011.

•The Government passed the Constitutional Amendment Bill in Rajya Sabha, which wasapproved by Lok Sabha on 9th August 2016.

• The Central Government & State Governments passed the CGST, IGST, UTGST & SGSTBills and GST finally came into force w.e.f. 1st July 2017.

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Key Features of GST

Applicable at every stage with Set off

available

Destination Based Tax

Seamless flow of credit

Tax on ‘Supply’ instead of ‘Sale’

No Double Taxation

Common National Market

Fewer Rates and Exemption

CA Rajeev Bhargav

Consolidation of Many Taxes

HSN Based Classification

Transparency in System

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GST – Positives vs. Negatives

CA Rajeev Bhargav

GDP Growth go up by 1-2%*

Lower Compliance Cost

International Competitiveness increase by 5%*

Common Market –increased

competitiveness

Restructuring of operations

Branch Transfer is also taxable

*NCAER Report

Higher Tax Rate on Services

Increased Revenue – Reduced Evasion

Difficult Transition Period –(Lack of Planning & unpreparedness)

Low Corruption

More Transparency

Multiple Returns in GST

Negative Impact on Funds Requirements

Reduced Administrative Cost for RegulatorNo Conflict Sales

Vs. ServiceState wise different registration even for

Services

No Multiple Level Taxes (No Double Tax)

Complicated Structuring of

(SGST/CGST/IGST)

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Indirect Tax Structure in India – Present Vs. GST

Central Excise Duty (All) CVD Incl. SAD Service Tax VAT/CST Entry Tax / Octroi Luxury Tax Entertainment and

Amusement Tax (notlevied by Local Bodies)

Taxes on Lottery/Bettingand gambling

Stamp Duty Excise Duty on Liquor for

Human Consumption Major Fuels Electricity Duty

GST

Present Proposed

CA Rajeev Bhargav

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CA Rajeev Bhargav

Restructuring of operations

Impact on Funds Requirements

Understanding change in Product Costing

Difficult Transition Period –(Planning & Preparedness)

Managing compliances from Unstructured

Vendors and obtaining their GSTIN

Training of Staff

Managing Registrations (State wise different

registration for Services)

Challenges Ahead of GST

Changes in ERP System

Tax Planning in terms of GST

Contractual Terms – Long Term

Contracts

Tracking GST Developments

Anti-Profiteering Provisions

Input Credit Prior to GST

Overlapping Transactions

Managing New formats like Invoice, Credit

Notes, Debit Notes etc.

Input Credit Matching

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Challenges for Banking Sector

CA Rajeev Bhargav

Separate Registration for each State

Multiple Returns to be filed in respect of each 

state

50% Reversal of Input Credit (Including  Capital Goods)

Multiple Authorities for Assessment

State Wise Accounting Vs. Zonal & Regional 

Structure 

Inter‐Branch Services/Transactions

Impact on Business requirements of 

Clients

Training of Staff

Changes in ERP System

Complications in Leasing Business

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Goods and Service Tax (GST)

Important Concepts

CA Rajeev BhargavACA, ACS, LLB, M.Com

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Contents

CA Rajeev Bhargav

Time of Supply - Goods

Goods/Services

Taxable Event - Supply

Taxable Person

Time of Supply - Services

Place of Supply – Banking Services

Issues in Banking Sector

Acknowledgement

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Goods/Services

CA Rajeev Bhargav

Goods:

“goods’’ means every kind of movableproperty other than money and securitiesbut includes actionable claim, growingcrops, grass and things attached to orforming part of the land which are agreed tobe severed before supply or under acontract of supply.

Services:

“services’’ means anything other thangoods.

Explanation 1.‐ Services includetransactions in money but does not includemoney and securities;

Explanation 2.‐ Services does not includetransaction in money other than an activityrelating to the use of money or itsconversion by cash or by any other mode,from one form, currency or denomination,to another form, currency or denominationfor which a separate consideration ischarged.

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Supply includes:

CA Rajeev Bhargav

all forms of supply ofgoods and/or servicessuch as sale,

transfer, barter,exchange, license,rental, lease or disposal

made or agreed to bemade

for a consideration

by a person

in the course orfurtherance of business,

All supplies specified in Schedule IWithout a consideration

• Permanent trf/ disposal of business assets

• Between Related Persons (Gift upto 50K to employees exempt)

• Branch Transfer to other State

• Principal/Agent• Import of Services

from related person or other establishment outside India.

import of service,for a consideration

and

whether or not

in the course orfurtherance ofbusiness.

Schedule IIclarifies whethera transaction issupply of Goodsor Supply ofServices

Exclusions givenin Schedule III

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Taxable Person

CA Rajeev Bhargav

A taxable person means a person who is registered or who is required to be registeredunder Schedule V.

Persons who have obtained more than one registrations to be treated as distinctpersons.

Different Establishments of the same person to be treated as distinct person.

A person who is required to be registered will be considered as a taxable person only ifhis aggregate turnover in a financial year exceeds Rs. 20 lacs (Rs. 10 lacs in case ofNorth Eastern States including Sikkim).

However there are exceptions like E-commerce, Persons effecting Inter-State Supply,Reverse Charge, Selling on behalf of others etc. (Refer Para 5 of Schedule III)

Who is not a Taxable Person:

Agriculturists and the person who is engaged wholly in supply of goods/services notliable to tax or exempt from Tax.

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Time of Supply – Goods

Made available to Recipient

Date of Removal

Issue of Invoice

CA Rajeev Bhargav

Receipt of Payment (Credit in Bank/Books of

Accounts)

Earliest of Date

Recipient shows receipt of goods in his Books

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Time of Supply – Services

Invoice raised within Time

Date of Receipt of Payment

Date of Issue of Invoice

Invoice not raised within Time

Date of Receipt of Payment

Date of Provision of Service

Earliest Date

CA Rajeev Bhargav

Recipient shows receipt in Books of

Accounts

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Time of Supply – Reverse Charge

30 days from issue of Invoice/Document by

Supplier

Date of Receipt of GoodsDate of Entry in Books of Accounts of recipient of

Supply

CA Rajeev Bhargav

Date of Payment (Credit in Books of

recipient/debit in Bank A/c)

Earliest of DateIf not determinable

otherwise

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Place of Supply for Banking Services:

CA Rajeev Bhargav

Account Linked Financial Services:

- Place of Supply would be location of recipient ofservices on record of supplier of services

Issues:

- Multiple Locations on record like: PermanentAddress, Communication Address, ResidentialAddress, Office Address etc. Here the address asper the KYC Document should be used for thepurpose of GST. In case of B2B Transaction, theclient will provide the address and the Registrationnumber to the Bank.

Non-Account Linked FinancialServices:

The Place of Supply would be the locationof Service Provider. If the client address isoutside India, then also the place of supplywould be the location of Service Provider.

Issues:

Location of Service Provider when servicesprovided from Back Office.

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Reverse Charge:

CA Rajeev Bhargav

Reverse Charge on Receipt of SpecifiedGoods/Services:

Goods: Cashew Nuts, Tendu Leaves, Lottery, Silk Yarn

Services: GTA Services, Legal Services by Advocate,Arbitral Tribunal, Sponsorship, Specified Services byGovernment, Services by Director, Services byInsurance Agent, Services by Recovery Agent toBanking Company, author, music composer etc.

Reverse Charge on receipt ofgoods/Services from UnregisteredSupplier:

First Condition: There should be supply

Second Condition: Supply ofGoods/Services

Third Condition: Such Goods/Servicesshould not be exempted.

Fourth Condition: The Supplier should beunregistered

Exemption: Rs. 5,000 per day from allsuppliers per registration.

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Goods and Service Tax (GST)

Valuation Rules

CA Rajeev BhargavACA, ACS, LLB, M.Com

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Contents

CA Rajeev Bhargav

Rule 3 – Supply through Agent

General Rule – Transaction Value

Rule 1 – When Consideration is not Wholly in Money

Rule 2 – Further Supply as such by the recipient

Rule 4 – Value based on Cost

Rule 5 – Residual Rule

Rule 7 – Pure Agent

Rule 9 – Gross Consideration

Rule 8 – Rate of Exchange

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Value of Supply of Goods and/or Services

CA Rajeev Bhargav

It shall normally be transaction value with some specific provisions. However the value of the supply of goods and/or services in the following situations, shall be determined in such manner as may be prescribed in the rules.

(i) the consideration, whether paid or payable, is not money, wholly or partly;(ii) the supplier and the recipient of the supply are related;(iii) there is reason to doubt the truth or accuracy of the transaction value declared by the supplier;(iv) business transactions undertaken by a pure agent, money changer, insurer, air travel agent and distributor or selling agent of lottery;(v) such other supplies as may be notified by the Central or a State Government in this behalf on the recommendation of the Council.

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Rule 1 – When Consideration is not Wholly in Money

CA Rajeev Bhargav

Where the supply of goods or services is for a consideration not wholly in money, the value of the supply shall,(a) Be the open market value (OMV) of such supply;(b) if open market value is not available, be the sum total of consideration inmoney and any such further amount in money as is equivalent to the considerationnot in money if such amount is known at the time of supply;(c) if the value of supply is not determinable under clause (a) or clause (b), be the value of supply of goods or services or both of like kind and quality; (d) if value is not determinable under clause (a) or clause (b) or clause (c), be thesum total of consideration in money and such further amount in money that isequivalent to consideration not in money as determined by application of rule 4 orrule 5 in that order.

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Rule 2 – Further Supply as such by the recipient

CA Rajeev Bhargav

Value of supply of goods or services or both between distinct or related persons, other than through an agent The value of the supply of goods or services or both between distinct persons as specified in sub – section (4) and (5) of section 25 orWhere the supplier and recipient are related, other than where the supply is made through an agent, shall, ‐(a) be the open market value of such supply;(b) if open market value is not available, be the value of supply of goods or services of like kind and quality;(c) if value is not determinable under clause (a) or (b), be the value as determined by application of rule 4 or rule 5, in that order.

Provided that where goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person:

Provided further that where the recipient is eligible for full input tax credit, the value declared in theinvoice shall be deemed to be the open market value of goods or services.

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Rule 3 – Supply through Agent

CA Rajeev Bhargav

The value of supply of goods between the principal and his agent shall,‐

(a) be the open market value (OMV) of the goods being supplied, or atthe option of the supplier, be ninety percent of the price charged forthe supply of goods of like kind and quality by the recipient to hiscustomer not being a related person, where the goods are intendedfor further supply by the said recipient;

(b) Where the value of a supply is not determinable under clause (a),the same shall be determined by application of rule 4 or rule 5 in thatorder.

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Rule 4 – Value based on Cost

CA Rajeev Bhargav

Where the value of a supply of goods or services or both is notdeterminable by any of the preceding rules, the value shall be:

one hundred and ten percent of the cost of production or manufactureor cost of acquisition of such goods or cost of provision of suchservices.

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Rule 5 – Residual Rule

CA Rajeev Bhargav

Where the value of supply of goods or services or both cannot bedetermined under rules 1 to 4, the same shall be determined usingreasonable means consistent with the principles and general provisionsof section 15 and these rules:

Provided that in case of supply of services, the supplier may opt for thisrule, disregarding rule 4.

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Rule 7 – Pure Agent

CA Rajeev Bhargav

Notwithstanding anything contained in these rules, the expenditure or costs incurred by a supplieras a pure agent of the recipient of supply shall be excluded from the value of supply, if all thefollowing conditions are satisfied, namely:‐

(i)the supplier acts as a pure agent of the recipient of the supply, when he makes payment to thethird party on authorization by such recipient;

(ii) The payment made by the pure agent on behalf of the recipient of supply has been separatelyindicated in the invoice issued by the pure agent to the recipient of service; and

(iii) The supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account. 

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Rule 8 – Rate of Exchange

CA Rajeev Bhargav

The rate of exchange for determination of value of taxable goods orservices or both shall be the applicable reference rate for that currencyas determined by the Reserve Bank of India on the date of time ofsupply in respect of such supply in terms of section 12 or, as the casemay be, section 13 of the Act.

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Rule 9 – Value of Supply inclusive of GST

CA Rajeev Bhargav

Where the value of supply is inclusive of integrated tax or, as the case may be, central tax, State tax, Union territory tax, the tax amount shall be determined in the following manner, 

Tax amount = Value inclusive of taxes X tax rate in % of IGST or as the case may be CGST,SGST or UTGST(100+ sum of tax rates, as applicable, in %)

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Definition of Relative

CA Rajeev Bhargav

Persons shall be deemed to be “related persons” if––

(i) such persons are officers or directors of one another’s businesses; (ii) such persons are legally recognised partners in business; (iii) such persons are employer and employee; (iv) any person directly or indirectly owns, controls or holds twenty‐five per cent. or more of theoutstanding voting stock or shares of both of them;(v) one of them directly or indirectly controls the other; (vi) both of them are directly or indirectly controlled by a third person; (vii) together they directly or indirectly control a third person; or (viii) they are members of the same family; 

(b) the term “person” also includes legal persons; 

(c) persons who are associated in the business of one another in that one is the sole agent or soledistributor or sole concessionaire, howsoever described, of the other, shall be deemed to berelated

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Composite Supply/Mixed Supply:

CA Rajeev Bhargav

“Composite supply” means a supplymade by a taxable person to arecipient comprising two or moresupplies of goods or services, or anycombination thereof, which arenaturally bundled and supplied inconjunction with each other in theordinary course of business, one ofwhich is a principal supply;

Illustration : Where goods are packedand transported with insurance, thesupply of goods, packing materials,transport and insurance is acomposite supply and supply ofgoods is the principal supply.

“Principal supply” means thesupply of goods or serviceswhich constitutes thepredominant element of acomposite supply and towhich any other supplyforming part of thatcomposite supply is ancillaryand does not constitute, forthe recipient an aim in itself,but a means for betterenjoyment of the principalsupply;

“Mixed supply” means two or moreindividual supplies of goods orservices, or any combinationthereof, made in conjunction witheach other by a taxable person fora single price where such supplydoes not constitute a compositesupply;Illustration: A supply of a packageconsisting of canned foods, sweets,chocolates, cakes, dry fruits,aerated drink and fruit juices whensupplied for a single price is amixed supply. Each of these itemscan be supplied separately and isnot dependent on any other. It shallnot be a mixed supply if theseitems are supplied separately.

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Goods and Service Tax (GST)

Input Credit under GST

CA Rajeev BhargavACA, ACS, LLB, M.Com

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Contents

CA Rajeev Bhargav

Credit Utilization

Input Tax Credit

Conditions for availing Input Credit

Eligibility and Time Limit for availing ITC

Restriction on ITC

Acknowledgement

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Input Tax Credit

CA Rajeev Bhargav

Credit is admissible on almost all items

To pay the Supplier within 180 days of

Invoice

Should be used or Intended to be used in

the course of furtherance of business

Time Limit: 20th October of next financial year or Annual

Return filingWhichever is earlier

Does not Include Composition levy

Credit on Capital Goods available in Single InstallmentNot available on

Immovable Property, Motor

vehicles etc.

Input Tax paid under Reverse

Charge is available

Details to be matched with

Supplier Return

Seamless flow of credit extended to

Inter-State Supplies

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Conditions for availing Input Credit

CA Rajeev Bhargav

No registered taxable person shall be entitled to the credit of any input tax in respect of anysupply of goods and/or services to him unless:

(a) he is in possession of a tax invoice, debit note, supplementary invoice or such othertaxpaying document as may be prescribed, issued by a registered supplier;

(b) he has received the goods and/or services;

(c) the tax charged in respect of such supply has been actually paid to the credit of theappropriate Government, either in cash or through utilization of input tax credit admissible inrespect of the said supply; and

(d) he has furnished the return under section 39.

The input tax credit ledger in electronic form shall be maintained at the common portal for each registered taxable person in the manner as may be prescribed in this behalf.

Input Tax credit on account of CGST can not be utilised for SGST and vice versa.

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Eligibility and Time Limit for availing of ITC:

CA Rajeev Bhargav

1. A registered taxable person can avail input credit on supplies used or intended to be used inthe course or furtherance of business.

2. A person applying for registration voluntarily can avail the input credit on the dayimmediately preceding the date of registration.

3. A person applying for registration within prescribed time (30 days) can claim input credit ofinputs, semi finished, finished goods on the day immediately preceeding the date on whichhe becomes liable to pay tax.

4. A person applying for registration after expiry of prescribed time (30 days) can claim inputcredit of inputs, semi finished, finished goods on the day immediately preceeding the date ofregistration.

5. A composition dealer who ceases to pay composition tax shall be eligible to avail input crediton the day immediately preceeding the date on which he becomes liable to pay tax u/s 8.

6. Time Limit: filing of return for September month of next year or Filing of Annual Return,whichever is earlier.

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Credit Utilization:

CA Rajeev Bhargav

Credit shall be utilised in the following order:

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Restriction on ITC:

CA Rajeev Bhargav

1. ITC is not available is depreciation is charged under IT Act.

2. ITC on Motor Vehicles not available except when they are used for Transportation of Goods, ormaking the following taxable supplies: Further Supply of such vehicle or conveyance,Transportation of passengers, training for driving, flying, navigating such vehicles/conveyances.

3. ITC on Food & Beverages, Outdoor Catering, Beauty Treatment, Health Services, Cosmetic &Plastic Surgery, Life/Health Insurance, Rent-a-cab except in certain cases.

4. Membership of club, Health and fitness centre, Travel Benefits to employees are never allowed.

5. Goods or services used for construction of immovable property on his own account even whenthe property is to be used for earning rental income on which GST is applicable.

6. Goods lost, stolen, destroyed, written off or disposed by way of gift or free supplies.

7. In case of supply of capital goods on which input credit is availed, pay tax on higher of: ITCavailed less 5% for every quarter or transaction value, whichever is higher

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Input Credit For Banking Company:

CA Rajeev Bhargav

1. ITC is not available for Non-Taxable Supplies, Exempt Supplies, Nil-rated Supplies.

2. Now since Banking Companies earn major income through Interest, which is exempt theapportionment formula will result in denial of substantial input credit. To avoid this situation,Banking Companies have given the option to avail 50% of eligible ITC on inputs, Capitalgoods and Input Services.

3. Banking Companies have option to get different registrations for different business vertical inthe same state and apply the proportionate formula in one vertical and the 50% formula inother vertical.

4. The option once exercised can not be changed in between the year.

5. 50% formula will not be applied on tax payment on supplies made by one registered personto another registered person having same PAN.

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Input Service Distributor (ISD):

CA Rajeev Bhargav

ISD is an office of supplier of goods and services. A supplier may have number of establishments located indifferent States, however, as regards input services, a supplier may insist for obtaining invoices in the nameof its one central location, irrespective of which establishment has actually received the services. Thepurpose could be centralized accounting or centralized payment system.

Under the scheme of ISD, Rule 36 of the CGST Rules permits such ISD to avail the credit on the basis ofinvoices issued to it. Further, it also permits, other establishments (having same PAN) of the said supplier,to avail the credit, on the basis of an Input Service Distributor Invoice in accordance with the provisions ofsub‐rule (1) of rule 54 of CGST Rules.

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Input Service Distributor (ISD) (Invoice Requirement):

CA Rajeev Bhargav

An ISD Invoice or debit or credit note issued by an Input Service Distributor shall contain the following particulars in terms of Rule 7.

(a) name, address and GSTIN of the Input Service Distributor;

(b) a consecutive serial number containing alphabets or numerals or special characters’ hyphen or dash and slash symbolised as, “‐”, “/”, respectively, and any combination thereof, unique for a financial year;

(c) date of its issue;

(d) name, address and GSTIN of the recipient to whom the credit is distributed;

(e) amount of the credit distributed; and

(f) signature or digital signature of the Input Service Distributor or his authorized representative:

If the Input Service Distributor is an office of a banking company or a financial institution, including a non‐banking financial company, a tax invoice shall include any document in lieu thereof, by whatever name called,whether or not serially numbered but containing the information as prescribed above.

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Goods and Service Tax (GST)

Some Issues for Banking Sector

CA Rajeev BhargavACA, ACS, LLB, M.Com

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Contents

CA Rajeev Bhargav

Sale of Repossessed Assets

Sale of Securities

Securitization by Bank

Finance Lease/Operating Lease Transactions

Life Insurance Services

Mutual Funds

Acknowledgement

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Sale of Securities

Section 2(52) “goods” means every kind of movable property other thanmoney and securities but includes actionable claim, growing crops, grassand things attached to or forming part of the land which are agreed to besevered before supply or under a contract of supply;

Since Securities are specifically excluded in the definition, there is no GST onsale of Securities.

CA Rajeev Bhargav

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Securitization Transaction by Banks

A securitisation transaction will involve:

1. Assignment of receivables by the originator to an SPV2. SPV acquiring receivables on discount3. SPV issuing Pass Through Certificates (PTCs) to investors and servicing

PTCs over the term4. Originator receives servicing fees for collections/ recovery of

receivables5. Originator receives excess interest spread (EIS) in the transaction after 

servicing of the investors with the receivables collected.

CA Rajeev Bhargav

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Securitization Transaction by Banks

Issues:

1. Whether GST is applicable on assignment of receivables since receivables are actionable claims.

Schedule III provides that all actionable claims other than lottery, betting and gambling are neither treated assupply of goods or supply of services.

Hence assignment of Receivable would not attract GST.

2. Service fee to be charged by Originator to SPV

The originator will charge GST on Service/Collection fees collected from SPV. Since SPV is not making anytaxable supplies, this GST would be a sunk cost to it.

The SPV can be a related person as defined under the Central GST Act, hence the valuation rules will applyaccordingly.

CA Rajeev Bhargav

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Securitization Transaction by Banks

Issues:

3. Treatment of Excess Interest Spread (EIS) Component

To avoid EIS Component being taxed, it should be structured as IO Strip, since it is interest only.

4. GST on Servicing of Coupon and repayment of PTC

PTCs being securities are exempt from GST.

5. GST on Sale of Non Performing Loans to Asset Reconstruction Company

The Security Receipts issued by ARC would also not attract GST being securities out of the ambit of GST.

CA Rajeev Bhargav

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Finance Lease/ Operating Lease

Clause 1 of Schedule II States that:

(a) any transfer of the title in goods is a supply of goods; 

(b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services; 

(c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods. 

If Finance Lease involves automatic transfer of asset after a period of time to thelessee, the same shall be treated as supply of goods, otherwise it will also betreated as supply of Service.

Operating Lease does not result into transfer of title and no transfer of title tolessee, hence shall be treated as supply of service.

Hire Purchase transaction gives an option to buyer, hence shall be treated as supplyof service.

CA Rajeev Bhargav

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Finance Lease/ Operating Lease

Finance Lease is also taxed in the same way under GST, in fact there is no exemption forthe interest component in the finance lease. Although the nature of finance lease isadmittedly a financial assistance and is akin to loan transaction.

Earlier case laws of “Association of Leasing and Financial Services Company Vs. UOI” and“Asea Brown Baveri Ltd. Vs. Industrial Finance Corporation of India were not consideredunder GST, hence this becomes a big challenge for the leasing Industry.

CA Rajeev Bhargav

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Taxability of Finance Lease/ Operating Lease

Rate of GST on Leasing Transactions:

Hence Lease of an asset will be taxed at the same rate, which is applicable on supply ofsimilar goods. For example: Lease of a Car would also attract same GST which isapplicable on Supply of Car.

CA Rajeev Bhargav

Sr. No. Description of Services Rate of GST

1. Transfer of the right to use any goods for any purpose (whether or not for a specified period)

Same rate of GST and compensation cess as on supply of similar goods

2. Any transfer of right in goods or ofundivided share in goods without thetransfer of title thereof

Same rate of GST and compensation cess as on supply of similar goods

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ITC Claim against Finance Lease/ Operating Lease

The CGST Act allows banks and financial institutions to claim ITC in either of the two ways: 

a. They shall be eligible to claim ITC to the extent of 50% of the eligible ITC on inputs, capital goodsand input services in that month and the rest shall lapse; or

b. Where the registered person is engaged in the partly into taxable supplies and partly intoexempted supplies, the whole of ITC, to the extent it is attributable to taxable supplies, can beclaimed.

Once a bank/ financial institution decide to opt for one of the above methods for claiming ITC, it will not be able to withdraw the option during the remaining part of the financial year. 

The Bank may opt for the separate registration for the leasing business vertical and followproportionate formula for the vertical and the 50% formula for the remaining business.However the finance leasing may not be treated as separate business vertical since theFinance Lease is quite similar to lending business. However the Bank can create separateentity for the leasing business and claim the input credit accordingly.

CA Rajeev Bhargav

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Sale of Repossessed Assets by Banks

Sale of repossessed goods will be treated as supply of goods under the GST law and therefore willbe taxed accordingly.

However if the repossessed assets include Immovable Properties, then the GST would not beapplicable.

The Bank will issue Tax Invoice to the Buyer and the recipient of goods would be entitled to InputCredit of the same, provided other conditions are satisfied.

CA Rajeev Bhargav

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Insurance Services

The premium paid in life insurance policies represents two portions – risk coverage and savings.Earlier, the service tax was only on the risk portion of the premium and not on savings portion.

As per the GST rules, the value of services (on which GST is to be imposed) in relation to lifeinsurance business shall be:

(a) The gross premium reduced by the amount allocated for investment, or savings on behalf of the policy holder, if such amount is intimated to the policy holder at the time of supply of service;

(b) in case of single premium annuity policies other than (a) ten per cent of single premium charged from the policy holder; or

(c) in all other cases, twenty‐five per cent of the premium charged from the policy holder in the firstyear and twelve and a half per cent of the premium charged from policy holder in subsequentyears.

Provided that nothing contained in this sub‐rule shall apply where the entire premium paid by the policy holder is only towards the risk cover in life insurance. 

CA Rajeev Bhargav

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Insurance Services

Place of Supply:

Insurance services supplied to a registered person will be the location of the recipient. When the recipient is not registered, the place of supply will be the address‐on‐record of the recipient

Input Credit of Output Supply in the hands of Recipient:

Input Credit on Life Insurance & Health Insurance is not available to the recipient unless the same is obligatory for employer to provide to employee, or it is used for providing the services under the same category.   

Life Insurance provided by Government Schemes like Janashree Bima Yojna, Varishtha Pension BimaYojna etc. are exempt from GST.

CA Rajeev Bhargav

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Mutual Funds

The impact of GST on the returns of mutual funds will be largely marginal.

The GST would be levied on various expenses incurred by the asset management companies(AMCs). As a result, the total expense ratio (TER) of the AMCs will go up, thereby impacting the netasset values of the mutual fund schemes.

As per the SEBI guidelines, AMC’s can levy charge within the limits prescribed under theregulations, hence AMCs may have to reduce their management fees if the TER is utilised to themaximum limit by the AMC and if it is not revised upward by SEBI.

Due to higher GST rate, the cost of distribution will also increase.

AMCs to pay GST under Reverse charge for the commission to distributors who are unregistered.However due to the Inter‐State Supplies kept outside the exemption limit of Rs. 20 Lacs, thedistributors can not avoid GST at their end.

Compliance Burden of MFs to increase substantially with multiple registrations and multiple filings.

CA Rajeev Bhargav

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Goods and Service Tax (GST)

Procedures

CA Rajeev BhargavACA, ACS, LLB, M.Com

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Contents

CA Rajeev Bhargav

Other Returns

Registration

Registration without threshold limits

Main Returns

Acknowledgement

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Procedures – Registration

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Existing Dealers Migration in GST

PAN Based Registration

Separate Registration mandatory for each

State

No Centralized Registration for

Service Providers

Basic Exemption 20L/10L

No Limit for Inter State Supplies

One Registration “GSTIN” for

CGST/SGST/IGST

To be applied within 30 days

Online Registration – No Surety

required

Registration Compulsory for

certain categories

Option to apply for separate registration

for different verticals in same state

Voluntary Registration

allowed

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Registration without threshold limits

Casual taxable person

Person making inter-state supply

Persons covered in Reverse charge

CA Rajeev Bhargav

E-commerce operator

Non-Resident Taxable Person

Persons required to deduct Tax

Persons who are required to collect tax

Persons supplying on behalf of other

Input Service Distributor

Persons supplying under E-Commerce

ODBAR Services from outside India

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Tax Invoice

CA Rajeev Bhargav

Registered taxable person shall issue tax 

invoice  

Supply of taxable goods 

Supply of taxable services

Before / at the time of :‐• Removal of goods for supply (supply involves

movement of goods)• Delivery of goods/ making available to the recipient

(other cases)

Before / after provision of service but within prescribedperiod (30 days)

a) Revised invoices may be issued against the invoice already issued during the period starting from the effectivedate of registration till the date of issuance of certificate of registration within one month from date ofissuance of certificate of registration.

b) No invoice required if value of goods or services or both < Rs. 200c) Composition dealers and Person supplying exempted goods or services to issue a bill of supply instead of tax

invoice

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Tax Invoice

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d) For receipts of advances on supply of goods / services: Receipt voucher/ other prescribed documente) In case of RCM or if goods / services are received from an unregistered person, the registered taxable person shall

issue an invoicef) Refund of advance received in case of no supply of goods / services: Refund voucher against such advanceg) In case of RCM or if goods / services are received from an unregistered person: Registered person to issue payment

voucher at the time of making paymenth) In case of continuous supply of goods where successive statements of accounts/ payments are involved, invoice shall

be issued before or at the time of each such statements/ payment.i) In case of continuous supply of services Due date ascertainable – invoice to be issued before / after payment is liable to be made by recipient

but within prescribed period (whether or not payment received) Due date not ascertainable – invoice to be issued before / after each such time supplier receives

payment but within prescribed period Payment linked to completion of an event – invoice to be issued before / after time of completion of

that event but within prescribed period

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Tax Invoice - Contents

CA Rajeev Bhargav

A tax invoice referred to in section 31 shall be issued by the registered person containing the following particulars: ‐(a) name, address and GSTIN of the supplier;(b) a consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as “‐” and “/” respectively, and any combination thereof, unique for a financial year;(c) date of its issue;(d) name, address and GSTIN or UIN, if registered, of the recipient;(e) name and address of the recipient and the address of delivery, along with the name of State and its code, if suchrecipient is un‐registered and where the value of taxable supply is fifty thousand rupees or more;(f) HSN code of goods or Accounting Code of services;(g) description of goods or services;(h) quantity in case of goods and unit or Unique Quantity Code thereof; (i) total value of supply of goods or services orboth;(j) taxable value of supply of goods or services or both taking into account discount or abatement, if any;(k) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);(l) amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);(m) place of supply along with the name of State, in case of a supply in the course of inter‐State trade or commerce;(n) address of delivery where the same is different from the place of supply; (o) whether the tax is payable on reverse charge basis; and(p) signature or digital signature of the supplier or his authorized representative:

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Tax Invoice – Bank/Banking Companies

CA Rajeev Bhargav

• If the supplier of services is an insurer, banking company, financial institution or a NBFC invoice is to beissued within 45 days (Instead of 30 days for others) from the date of supply of service.

• If the supplier of services is an insurer, banking company, financial institution or a NBFC or a telecomoperator or a notified class of supplier of services, making taxable supplies of services between distinctpersons as per section 25 of the CGST Act (refer entry 2 of schedule I) then an invoice, is to be issuedbefore or at the time the supplier records in his books of account or before expiry of the quarter duringwhich supply is rendered.

Where the supplier of taxable service is an insurer or a banking company or a financial institution, including anon‐banking financial company, the said supplier shall issue a tax invoice or any other document in lieuthereof, by whatever name called, whether or not serially numbered, and whether or not containing theaddress of the recipient of taxable service but containing other information as prescribed under rule 1.

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Main Returns

Returns

GSTR-2(Inward Supplies)

GSTR-1 (Outward Supplies)

GSTR-3(Complete Return)

CA Rajeev Bhargav

Discrepancies Correction

GSTR-9(Annual Return)

10th of Next Month

15th of Next Month

20th of Next Month

31st December

Before Next Return

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Other Returns

Returns

GSTR-5(Non-Resident)

GSTR-4 (Composition Dealer)

GSTR-6(Input Service Distributor)

CA Rajeev Bhargav

GSTR-7(TDS)

GSTR-10(Final Return)

18th of End of Qtr

20th of Next Month

13th of Next Month

3 months of cancellation

10th of Next Month

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Returns for July & August 2017

Returns

GSTR-1 (July 17)

GSTR-3B (Summary Return)

GSTR-1(August 17)

CA Rajeev Bhargav

GSTR-2 (July 17)

GSTR-2 (August 17)

20th of End of Month (July & August Only)

5th September

20th September

25th September

10th September

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Goods and Service Tax (GST)

Transition Provisions 

CA Rajeev BhargavACA, ACS, LLB, M.Com

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Contents

CA Rajeev Bhargav

Goods Return after appointed date

Migration of Existing Taxpayers

Input Credit on Transition Date

Input Credit on Transition Date

Price Revision after appointed date

Goods sent on approval basis

Running Contracts

Tax Holidays

Acknowledgement

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Migration of Existing Taxpayers:

CA Rajeev Bhargav

1. Every Dealer registered under any of the Existing laws and having PAN shall be issued acertificate of registration on provisional basis at the appointed day.

2. Existing dealers are asked to create login to the GST Portal and update their details andupload the documents for the purpose of proper capturing of data under GST.

3. The taxpayers would be required to satisfy the conditions under which the provisionalregistration certificate was issued and thereafter the provisional certificate will be madefinal.

4. In case of non-compliance of conditions the certificate shall be liable to be cancelled.

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Input Credit on Transition Date:

CA Rajeev Bhargav

(i) The Credit should be admissible under GST.(ii) All the returns for last 6 months should be duly filed under Excise,

VAT, Service Tax.(iii) Credit should not relate to goods manufactured and cleared under

exemption notifications.(iv) VAT Credit attributable to claims related to sales under Form C, F, E1,

E2, H etc. not to be allowed unless the forms are duly madeavailable.

In Case of Dealers registered in Excise/Service Tax/VAT, if the return for the period ended on 30thJune shows unutilised balance of Input Credit, the excess shall be carried forward under GST:

Conditions for carry forward

(i) GST Form TRAN-1 to be filed within 60 days 90 days ofimplementation of GST.

(ii) GST Form TRAN-1 to contain the details about credit to be carriedforward.

Procedure

In Case of Dealers registered in Excise/Service Tax/VAT, if the return for the period ended on 30th June does not show unutilised balance of Input Credit, no credit shall be carried forward under GST and no details shall be filed in form TRAN‐1:

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Input Credit on Transition Date:

CA Rajeev Bhargav

(i) Duty paying documents/Invoice are essential.(ii) Date of issue of such invoice shall be on or after 1st July 2016.

In Case of Dealers not registered in Excise/Service Tax/VAT, due to exemption/SSI unit or a VAT Dealer who is not registered under Excise, the credit shall be available in following manner:

Conditions for carry forward

(i) GST Form TRAN-1 to be filed within 60 days 90 days ofimplementation of GST.

(ii) GST Form TRAN-1 to contain the details about credit to be carriedforward and stock as on 30th June 2017.

Procedure

(i) In respect of Excise Duty, CVD and SAD/VAT in respect of stock as on30th June 2017.

Credit shall be available

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Input Credit on Transition Date:

CA Rajeev Bhargav

(i) If IGST Rate applicable is 18% or more, then deemed credit shall be allowed @30% of IGST Applicable on Supply.

(ii) If IGST Rate applicable is less than 18%, then deemed credit shall beallowed @20% of IGST applicable on Supply..

In Case of Dealers not registered in Excise, due to exemption/SSI unit or a VAT Dealer who is not registered under Excise, the credit shall be available in following manner, when the duty paying document/Excise invoice is not available:

Inter State Sale (IGST)

(i) If CGST rate applicable is 9% or more, then deemed credit shall beallowed @60% of CGST Applicable.

(ii) If CGST rate applicable is less than 9%, then deemed credit shall beallowed @40% of CGST Applicable.

Intra State Sale (CGST/SGST)

In respect of Excise Duty, CVD and SAD in respect of stock as on 30th

June 2017 as per the deemed percentage basis.Credit shall be 

available

(i) Details to be filed in form GST TRAN-2.(ii) Certain other conditions to be fulfilled. The procurement should not be

exempt, the document of procurement should be available, thescheme is available for six months only.

Procedure

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Input Credit on Transition Date (Credit Transfer Document):

CA Rajeev Bhargav

Further, the government will refund 100 per cent excise duty for goods costingabove Rs 25,000 and bearing a brand name of the manufacturer and are seriallynumbered like TV, fridge or car chasis.

To avail this a manufacturer can issue a Credit Transfer Document (CTD) as evidencefor excise payment on goods cleared before the introduction of GST to the dealer.

The dealer availing credit using CTD would also have to maintain copies of allinvoices relating to buying and selling from the manufacturer to the dealer, throughintermediate dealers.

CTD shall be issued within 30 days of July 1, 2017, and details of the same shall bementioned in specified forms by manufacturer and such dealer/distributor availingthe credit.

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Input Credit on Transition Date (Capital Goods):

CA Rajeev Bhargav

(i) Amount of unavailed credit pertains to period upto appointed day.(ii) Credit should be admissible under CGST/SGST Act.(iii) Unavailed credit means – Total Duty Paid – Duty availed and utilised

in Return.

Conditions for carry forward

(i) GST Form TRAN-1 to be filed within 60 days 90 days ofimplementation of GST.

(ii) GST Form TRAN-1 to contain the details about credit availed and thecredit yet to be availed under each of the existing laws till theappointed day.

Procedure

Currently Input Credit on Capital Goods is available in Instalments. Hencethe Dealer may not have availed full credit on Capital Goods. This credit isavailable subject to certain conditions.

Credit on Capital Goods

In case the Excise Invoice is not available, then it appears that cenvatcredit on Capital Goods will not be available as deeming provisions don’tmention about the Capital Goods.

Excise Invoice Not available

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Input Credit on Transition Date:

CA Rajeev Bhargav

Credit Transfer to Electronic Credit Ledger shall be made in following manner:

Excise Duty

CGST

Service Tax

CGST

VAT

SGST

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Input Credit on Transition Date (Exempt Dealer):

CA Rajeev Bhargav

In case of exempted dealer, which becomes taxable under GST:

1. Credit of eligible duties in respect of inputs held in stock and inputs contained in semi finished orfinished goods held as stock on appointed date.

Conditions & Restrictions:

1. Such inputs are used or intended to be used for making taxable supplies,2. Such registered person is eligible for input credit under this Act,3. Such registered person is in possession of invoice or other prescribed document evidencing

payment of duty under existing law.4. Invoice was not issued more than 12 months preceding the appointed date.5. The supplier of services is not eligible for any abatement under this Act.

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Pending Proceedings/ claim of Refund:

CA Rajeev Bhargav

1. Claims of refund in respect of periods prior to appointed date which are filedbefore/on/after the appointed day shall be disposed of in accordance with the provisionsof existing law.

2. There will be no carry forward of claim arising under these matters under GST. The refund,if any will be paid in cash.

3. If any refund claim is fully/partially rejected, the rejected amount shall lapse.4. Any CENVAT credit which is carried forward under GST can not be claimed as refund under

previous laws.5. Any pending appeals, review or reference in respect of existing law shall be disposed of

according to the provisions of existing laws and any credit admissible which is not carriedforward shall be refunded and any claim shall be recovered.

6. If tax is paid on advance payment but the services are not provided later, then the refundclaim can be filed even after the appointed day and the same will be disposed offaccording to the previous law.

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Goods Return after appointed Date

Sale to Unregistered Person

Returned within six months from Appointed Date

Removal not earlier to six months from Appointed Date

Goods are identifiable to the satisfaction of proper officer

Sale to Registered Person

Invoice shall be raised by the person who is returning the goods

The return shall be deemed to be supply

Valuation shall be done as per Valuation Rules

ITC shall be available to the person returning the goods

The first supplier shall be entitled to the Input Credit on goods

returned.

CA Rajeev Bhargav

Supplier can claim refund under Existing Laws

No Input Credit under GST

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Price Revision after appointed Date

Supplier to issue Supplementary Invoice/Debit Note

Upward Revision

Additional amount will be subject to CGST/SGST or IGST

Supplier to issue Credit Note

Downward Revision

Tax liability of Supplier will be reduced, if the recipient has reduced its input tax credit.

CA Rajeev Bhargav

Recipient will be eligible to take the Input credit of Tax on

Additional Amount

In case goods/Services supplied in case of agreement entered prior to appointed day and prices revised upward/downward after the appointed day.

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Goods sent on approval basis:

CA Rajeev Bhargav

(i) goods sent on approval basis, not earlier than six months before the appointed day;

(ii) rejected on or after the appointed day are returned within six months (plus 2 months may be extended by Commissioner) from the appointed day,

No tax shall be payable thereon

If goods sent on approval basis are rejected after the appointed date:

No Tax under GST

If conditions are not satisfied, thentax shall be payable by the personreturning the goods as TaxableSupply.

The person returning the goods canclaim this tax from the supplier whosent the goods on approval basis.

The Supplier would be eligible toclaim input credit under GST for thegoods returned to him.

Tax Payable under GST

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Running Contracts

CA Rajeev Bhargav

In case a contract was executed before the Appointed date but the supply of goods or services was made

after the appointed date, the same shall be governed under the GST.

However if the Tax has been duly paid under the existing laws on partial supply ofgoods/services within the same contract, that portion will not suffer tax under GST.

In case the supply is subject to Tax Deducted at Source under GST, then if the supplier hassupplied goods/services and issued invoice before the appointed day, no deduction of tax atsource shall be made by deductor, where payment to the said supplier is made on or after theappointed day.

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Tax Holidays

CA Rajeev Bhargav

Area based tax exemption will experience a key change in proposed GST regime, industrial units

will have to pay duties first and get a refund later.

This is to ensure that credit chain in GST is not broken.

Although the government policy stance is clear that the area based exemptions to be phased out,

but units set up on the promise from the Government should get the exemption as committed.

However Industries will pay their duties first, then the centre or the state that gets the duty will

then repay it to the exempted elements and the states will now choose the particular industrial

exceptions they wish to proceed. The correct subtle elements on whether every one of the

exceptions will be granted or refunded will be worked out later.

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Disclaimer

CA Rajeev Bhargav

This Presentation is intended to serve as a guide to the Member Participants of theSeminar/Conference and for information purposes only; and the contents are not to be construed inany manner whatsoever as a substitute for professional advice or legal opinion. No one should act onsuch information without appropriate professional advice after a thorough examination of particularsituation. Information contained herein is of a general nature and is not intended to address thecircumstances of any particular individual or entity. While due care has been taken to ensure that theinformation is current and accurate to the best of our knowledge and belief, there can be noguarantee that such information is accurate as of the date it is received or that it will continue to beaccurate in the future. These PPTs contain information that is privileged and confidential.Unauthorized reading, dissemination, distribution or copying of this document is prohibited. We shallnot be responsible for any loss or damage resulting from any action or decision taken on the basis ofcontents of this material.

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ORGANIZERS CONTACT DETAILS

Participants can mail your suggestions/queries to the following email id:

Mr. Rajesh BatraHead, Centre for MSME

Indian Institute of Corporate Affairs Plot no. :- P 6,7,8

Sec. 5, IMT Manesar, Distt. Gurgaon (Haryana).

Pin Code - 122 050

E-mail: rajeshbatra.iica@gmail.com Mobile no- +91 9871417394

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NOTES:

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