How GST is going to affect the online aggregators

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How GST is going to affect the online aggregators
online aggregators
This is a topic that many people are looking for. museumoftechno.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, museumoftechno.org would like to introduce to you How GST is going to affect the online aggregators. Following along are instructions in the video below:


hello everyone Im solution oats for this webinar on behalf of our body foundation position in entrepreneurship network to begin the session as I take you to the phenomenal job deafness onion is doing in supporting startups under stage growth tech entrepreneurs and enemies grow their business provide a great free mentoring a learning platform those who common registered a blue Athenian job then attempt experienced and export mentors along with investor connect the mechanism is a very straight for the truth with gold base time-bound trusted mentoring and rich yourself connecting to 400 plus mentors from there is to the walk and make a difference enter it again I am so pleased to be with you and to have the chance to introduce our speaker verses this feeder schools is the partners near the students Oh Angie Jade Sawalha and both Chartered Accountant touchless is an innovative energy law oriented professional with hands-on and global experience in finance accounting position management audit internal audits business process of showing this management process management and strategic planning escapes and growing organization as partner is being successful at it accountants here is the strong team of young professionals its currently honorary vice chairman its actual world justice the Chamber of Commerce Mumbai chapter which is close to working with our youth in scaring them the spirit of entrepreneurship as we begin with its participants to mute organ appliances after the presentation to have a discussion session for around 20 minutes the dresses would answer your questions so this end will 11 questions over chat which would be answered at the end of situation I would love to have your feedback on todays session your input and citations for petrol station signs on resistance so this video send feedback on that poll and survey you just for the radio is join me in welcoming glasses what you regard it on the bed I graphed noon um thank you for having me and would like to begin this presentation on GST is the Kay and as you can see from the first diagram it is an update – GST is an uphill task and so is the introduction to GFC okay so lets lets start with the concept of GST what is does it stand for it basically stands for goods and services tax so what does GST bring to the table currently there are several indirect taxes levied excise state sales tax central sales tax or troy etc each of which are levied at different stages in the logistical change chain of production hence a manufacturer would need to pay excise when a finished group product moves out from the battery then he needs to pay sales tax when the commodity is sold every single commodity currently being manufactured is subject to a multiple multitude of taxes at various stages GST promises to bring a unified unified tag structure since all these taxes will be replaced and subsumed by a single tax GST which will be introduced both as the state at the central level it is therefore appropriate to say that the guiding principle of GST is one country one tax and one market the concept of GST has been set up that it is a single tax with comprehensive and continuous chain of sell off benefits set of benefits from a producers point of view as well as the service providers perspective so both are your existing manufacturing taxes as well as your service tax can now be subsumed and gained by of gentlemen under the nesting coming to the concept of GST so the basic concept of GFC is that it acts on the value-added at each stage of the manufacturing of a product or a service GST regime is currently new in India however it is not so globally the fundamental concept of GST is not new in the indian tax structure it is a value-added tax and V in India have well have been associated with other value-added taxes such as that sales tax service tax etc the idea of GST is that the impact should only be on the value-added to the good or service at each stage at every stage there is a set of permitted for access paid at the previous stages this offset of taxes for tax credit mechanism called input tax credit okay we will deal with at a later stage more in detail this eliminates any cascading effect of taxes this provides the clear pass-through mechanism by which a final product only has one packs which subsumes all the other taxes at every other stage the current difference lies in the fact that under service tax rack and CST one could not offset a particular tax against another for example a service provider could not offset his service tax against the rack on assets purchased GST being a common platform or a common uniform tax mechanism which handles both goods and services this will this allows us to Club all indirect tax taxes paid at every stage and provides the seamless tax credit mechanism for everybody lets look at the axes which are currently being abused in to GST so axis on manufacturing can be broken up into two components central taxes and state taxes so under central tax you have a central excise duty you have excise duties of various types on medicinal other preparations additional a excise duties you have additional duties of customs known as CVD then we have special a distance you do your customs as sad then you have service tax and then you have central so charges and fesses as regards the state taxes you have a state whack you have a central sales tax of the state then you have an entertainment and amusement actual luxury tax on advertisements you have a purchase tax and entry tax you have taxes on lottery betting and gambling you have various states ss and so such surcharges which also applies to the goods and services all these taxes are now substitute into DSC however as usual there is always some fine print from the government of india and the fine print your is that the taxes which will not be subsumed so definitely taxes such as income tax basic customs duty property tax road and passenger tax any toll tax any stamp duty and any taxes on consumption or sale of electricity cannot be subsumed into GST so lets look at why is sv required now that you have a basic understanding of what yes he is and what is all what what are we really talking about lets take a look at why exactly do we need GFG GFG has been slated to be a game changer which will totally over all the current existing stack structure in our country which has been prevalent since independence okay lets look at what are the benefits GST gives to all the stakeholders in business today so what are the benefits of jfets so one most obvious benefit of GST is that there is a reduction in the prices for consumers because ideally there will be no multi point taxation and taxation will be done on us will be in a seamless manner at every stage you will be able to take in good credit okay and hence whatever credit you cannot take used in the manufacture will still be able to apply for a refund hence the consensus is that GST will bring down overall prices finally once everything works okay if you look at the GST implementation across countries and the GFC has been implemented in many countries current earlier already in the short run GST has been a painful exercise and has definitely led to an increase in in prices but on the long run it has once the system has worked there has been an overall reduction in prices in order to ensure that the benefits of GST are passed on to the customers the government has also introduced an ND profiteering clause in the GST rules to ensure that the benefits of these subsuming of all these taxes is passed on to the end consumers so we are all hoping and keeping our fingers crossed that this happens that will overall lead to a reduction in prices lets talk about simplicity technically the government feels that by introducing one comprehensive goods at service tax it amounts to a simplicity of tax yes it does amount to a reduction in the multiplicity of tax however I am not so sure whether it is going to be a simplicity of tax because there are so many there is so much currently that so much fine print in the GST rules and theres so much gray area that I am not really sure whether its going to be too much of a simplicity but we are all keeping our fingers crossed that the reduction in the multiplicity of taxes will prevent any cascading and double taxation and hence the taxation will become simple the other thing is the benefit of GST is it now makes us into one large common national market because of the uniform tax structure it will be safe to say that GFC promises to deliver a uniform Regine across india and in the entire country would now be a common market okay which well run through with GFC stag line or one country one tax and one market then GST is supposed to be a non-intrusive electronic tax compliant system we are all hoping that GST when it finally happens will be completely system dependent and will require will require a minimal manual intervention there are loads of reporting compliance of however since all this GST related compliance is system based it is slated to be a non-inclusive tax compliant system Arakis thats what we have been promised lets wait and see what reduction what reality is really like and whether the GSC network which is in charge of setting up the GST system delivers on its promise lets look at the benefits to the revenue department so from the Department of the governments perspective yes the main advantages that its a simpler tax system are simpler specially for them because they push the owners of compliance completely onto us the consumers and the taxpayers so definitely the box etc will be more system generated and will become easier for the government and we are hoping that the cost of this compliance will hopefully lead to a reduced cost of compliance for the government overall um one other thing is that it will definitely lead to a broadening of the tax base because unregistered unregistered dealers or manufacturers are are liable to be brought under the overall GST overall GST net because anybody whos unregistered will not be able to enjoy the benefits of the subsuming of the taxes so bring GST etc into a logic into a proper logical chain this was definitely involved bringing more and more of the parties into the Broadways leading to an overall increase of the number of tax payers in the country since GST is is very system dependent and it um and there is a lot of tax compliance which needs to be done with where the whole set of returns to be filed by every entity in every state it operates we are definitely hoping that this will lead to improved compliance by both um large as well as smaller tax payers and lastly Im sure its going to be an efficient use of resources okay so because the quite a lot of the quite a lot of the information will actually flow from the system so from the system itself a lot of information will come so it will it will really hopefully amount to faster scrutiny faster assessments etc and it will definitely be a more efficient use of resources for the department moving on to the overall rationale for GST so lets understand now GST basically is a destination based tax okay um that means the end destination wheres the sir the service has been supplied or the goods have been supplied is where it is offered for tax lets take an example that Mister in in in Mumbai sells goods to mr. B in India if the GST sorry in in Delhi my apologies if the GST on this transaction is rupees 10 which state gets the tax benefit does it accrue in Mumbai where the boots up in manufacture or does it accrue in Delhi where the goods have been sold or is it 50/50 well the answer to this is that it its 100 percent in Delhi because the main rationale behind GST is that its a destination taxation for the purpose of the levy and hence it doesnt matter where the goods have been manufactured the tax would be levied at the place of supply which is Delhi this is going to lead to of a situation where youre going to have manufacturing intensive states will basically use revenue to escapes with the actual consumption of the supply will happen and because of this the government has actually set up the GSE network in such a way that there is a compensatory payment which is going to each state for that revenue loss we are hoping that all this holds true and all the states and the government keeps their commitment going forward earlier tax is applied on a specific set of transactions while GST there is though there is a shift GST and campuses every transaction except for a few specific transactions okay so all taxes are covered its a comprehensive tax except for some exempted goods and certain goods which are outside the purview of GST of course that these transactions are below the threshold limit would not be covered under the UFC however reverse charge implications would definitely apply reverse charge implications will definitely apply we we must deal with this reverse charge at some time in the coming slides lets look at the overall model of GST GFC can be broken up into interstate supply which is in the interstate good IG CST and there is intrastate supply and intrastate supplies stands for central as well as state goods and state GST so any transaction which is done between two states would be subject to an ID st IDC ST model is where the center would levy the IDC ST and then share the revenue with the states in an or in a manner in which which has been decided between the centers and the states as we does interest apply interest applying would every transaction which is an interest apply would levy two taxes both the CGS Center GST an estate GST and both of these would have to be added and charged to transactions within the good news here is there is no distinction between the raw materials and the capital goods allowed in this EBU Tax Credit okay the tax base basically covers all goods and services up to the final point of consumption okay lets understand busy PCGS TS gstl IGS tea with along with the charge ability of each of these earlier the presentation you mentioned that GSC is one pack should replace all other indirect taxes but on the previous slide will clearly shown that there is I give you st that see GST and there is HGST why this because India being a federal country we have the federal government at the centre and we have the state governments and all both these governments need to share the tax and the revenue bills and to share the stacks and this revenue bill this system has been set up as long as youre dealing with as long as youre dealing with a supplier within your same state then that amounts to an interest GSC transactions which would be subject to see GST and stsd if you are dealing with a track if you are dealing with a transaction from outside your state that would be subject to only ID CST the IG CST revenue accrues to the center and the center has developed the revenue sharing model with all the states and based on that revenue sharing model that revenue will then be shared with the states the CG stres GST our state revenues and will be kept will be kept by the state in and the CGS the other leaders these will be said with the picked up by the state while the ID GST is first collected by the center and shared with the state the see GST is collected by the state and then shape with the setter okay lets now understand more details of of intrastate DSD as I discussed the interest rate has to CGS the embassy and the SG SG um these will both be levied jointly on intrastate supplies come to interstate us your itst IPSC will basically be levied on transactions between two states the applicability of this will be on all all supply of any kind of goods or services between two states the export of goods will be at zero rated we will cover exports at a later stage so you can understand that there are some specific requirements for claiming export and how do you manage the input tax credit for um for export of coming to input tax credit so so the idea being GST input Tax Credit is first it should be seamless second it should be it should be across all kinds of goods and services that means you will be able to pick you will be able to take credit input tax credit on any kind of gearstick paid as regards in the manufacturing process as well as the supply of services are concerned and you have an each of these SGS CCGs chid CSC can be used to offset against there are these same identical output taxes which will bill however there are various conditions and there is a preference order by which this can be offset okay um lets deal with lets lets deal with the offset mechanism so the offset mechanism as you see this cap dont let this chart can feel you too much on the left it got the input tax credit and weve got the output tax credit basically it shows what output input tax can be offset against which output tax liability alright so starting with sgfc as yes you can always first be offset against output s GST but it can later be offset against IDs C as well see GST has to first be offset against C GST and it can then be offset against IG CSD IDs T however can be used and offset against all three taxes so I TS t can be offset against s GST see GST and idea c of youll ask why is this the

reason for this is that this is the formula which the government of india has arrived to share the revenue between the center and the states and each state and sector will get the net differential between how this has been charged in each manufacturing process and that is why there is this difference on what is your preference and what you are will use the input tax credit first for this is important then should be borne in mind at all types okay lets now come to the condition so claiming the input tax credit basic input tax credit has to be claimed only against an tax invoice a debit note and the most important thing is that goods or services should be received all right there is an exception to this set of goods are delivered to the transporter on BR the manufacturer on the ikkaku serving the client then that is treated to be goods which have already been received and hence and which stage you can take the input tax credit one important thing is that input tax credit if it is claimed on any invoice that invoice needs to be paid in 180 days if you do not pay that invoice in 180 days then the input tax credit would have to be reversed along with the interest on the amount Kim please bear this in mind so you can just open invoice and make a provision came the import tax credits as situated that not create for longer than six months if you dont pay this for longer than six months then you will definitely need you will definitely need to UM reverse the input tax credit along with the interest on the amount Kate sorry really for your credit of from earlier laws this is a very important concept because you need to carry forward you need to carry forward the Salvator the sandwich excise and service tax credit in two of CGS CI GST and state into S GST so this chart basically tells you about how you can carry forward lets understand levy under GST so basically GST is as I explained to you earlier if the consumption or a destination is principal if that means wherever the groups of the service has been delivered that is where the yes becomes payable determining the place of supplying is very important as tax revenue will accrue is the state where the supply has in good lets look at a few basic illustrations for IDs T so that you get an idea so the study believed in martha supplied his goods to supplies goods to mr. be based in good rap and p and he pays 18% ids see mister he has an input credit of see GST 6% and s GST 6% from local purchases so hence he only pays now six percent to the cg account central government account under IGS t after offsetting recipe whose base the drug who had been wet purchase these goods is now selling them locally to mr. C was also based in Gujarat and theyre liable to pay s GST and CGS at 14% each he can utilize he can utilize the input credit of 18% of id est first for his see GST but and then the balance 4% against s GST the balance differential of between 58 – 18 the 10% he will have to pay in cash lets look at the key is to effective implementation the enablers for ensuring that DSC goes through one thing is a uniform eregistry so there is one standard user education which you have to do to migrate unfortunately unfortunately this issue of doesnt hold true for all states and and if you are doing stay if youre doing business in multiple states you need to eat later sir in each of those things okay um you have to still find a common he returned for C GSEs GST and iust there are returns which have to be files as Oh as for a schedule which we will discuss in sometime there are system based validation and existing checks on the input tax credit and half the manner in which the manner in which taxing funds are being taken hopefully most of these most of these returns will be are populated from vendor returns and and the accounting systems so that will amount to an effective fun settlement system between the center at the states lets look at the role of the Darkman so the count my first acts as a clearinghouse so the government has set up a section of a company called GST network and the GFC network is the the GST network basically is the responsibility of the government it is it is a it is at HPD which are being set up between effect between the central government and the state governments and various financial institutions what has the GFC has done it has basically created the draft legislation and amendments on here see it has decide it has they have jointly come together begin the between the center and the states and determine the rate of taxes theyve created the mechanism by which the conciliation of tax collection under IGS PCGS CS GST will flow to all parties so that there is limited friction at a future stage they have also developed the process for scrutiny or all such promiscuity of the system and maintenance of the system etcetera going forward okay what are the other important fundamental concepts we need to understand as regards GST so the main thing is what is the axilla when when does the facts actually come into place currently taxes and their taxable events are listed as excise duty you would pay or manufacture since that you will be on sale service that you will do would have paid on realization of the service under GST the taxable event is not the data manufacture but is the supply of the good and services okay the supply is the eating weve dealt with supply at a later stage okay um as you can see from the ah from the presentation that we have said that intrastate will apply will attract both SGS PFC GST on sales within the state and at IG st will will apply to interstate supply of goods and services okay now lets look at GST on import of goods and services so as regards the you know as regards the import GFC will follow the destination principle okay or people who are who are familiar with service status will understand the place of supply rules as well in the earlier service X law the tax revenue your under s GST will accrue to the state where theyve bought goods and services are consumed full set off will be available on the GST paid on import off of the goods and services however import of goods and services will still attract visit customs duty and GST currently you will note that import of services will attract id est in whichever state theyre imported but you will only you will only have to pay IDs see on it on services while on goods you will have to pay you put on goods you will have to clear customs duty as well as I GST basic custom duty continues however see video countervailing duty on excite and sad or special additional which used to pay under sea sector excites has now been done away with and itself subsumed into the GST law we now come to a concept of reverse to other imports so there are if you if you were to take services on imports all right the import of these services will be on a reverse charge mechanic and the owners for paying this service charge will be on you the recipient of the service because the the service provider is located in a non-taxable territory so it will be incumbent on you to or calculate and pay this tax basically on a reverse charge business lets go on GST on exports okay expose basically would be um exports are currently not subject to GST and there would be hence they are called zero rated similar benefits it will it or similar benefits will apply even for entities in special economic zones or assets however there is no benefit there is absolutely no benefit for domestic sales woman from an S easy for domestic tariff area GFC will be paid by exporter on procurement of goods and services will be refunded so any any gscp by the exporter for the procurement of the butcher for the procurement of the goods or service can be applied for refund under of refund under the EST rules and that sequin can be obtained legally we will deal with this report at a later stage as well registration under GST Im going to hurry up a little because as we told that we are running a little behind schedule okay so so each registered pair here needs to be allotted a pan link GST identification number this GST identification number will be unique and will allow you to facilitate all transactions with the GFC the exact design of this number is being worked out currently in consultation with the income tax department that we look forward to Europe from them okay now this is the crux as regards the compliance is under the GST as you can see there are periodical returns to be filed we will deal with periodical returns as well later in the presentation there is significant compliance as because input tax credit in book tax credit can be taken but it needs to be verified at each stage there is a common standardized litter the common standardized return is for each type of tax and there is a common standardized challenge for how the taxes to be paid currently we have not been given full details of how the taxes we pay it whether they are going to different accounts etc but we are hoping as we come nearer to the GST deadline the government will release more of these details so lets look at the or look at the returns on the GST and anti GST under the norm composition scheme we have the GST are one for outward supplies and in this you have to move you have to mention all advance receipts etc this is the due date for this is the 10th of every month and it needs to be filed by every registered taxpayer and it has to be done on a monthly basis GST r2 is all in word supplies this has to be prepared after reconciling the GST one of the supply of so for each of your suppliers you have to reconcile the GST one and files us gspr to by the 15th of the next month who is supposed to do this this has to be done by the register a registered taxpayer who is the recipient of the goods of the service this also needs to be done on a monthly basis GST r3 is a summary of USD 1 and 2 and the amount of the net tax payable after taking credit this has to be done by the 20th of the following month this also has to be done by the registered tax payer and has to be done every month GFC are nine is the details of as youll expected in terms of which has to be done by the 31st December of the next financial year registered taxpayers need to do this and this is to be done once a year we are hoping that most of these forms will be self populated because of the system but we dont know how this will currently work and we look forward to seeing what this outfit actually took it just sticks out now we come to look on who returns to be done to the composition scheme so under the composition scheme you have only two forms to fill because the composition scheme has only quarterly returns in an annual return so you have GST r4 which gives you the details of all the inward and outward supply has the net tax payable and paid for that water this needs to be done by the 18th of the next month after the quarter and it has to be done by the composition taxpayer this has to be done this has to be done by the end of each by creating of the next month after the quarter so you will have four quarterly returns then you come to GFC our nine a nine is the annual expenditure and income for people who are under the composition scheme this also has to be done by the 31st December of the subsequent job to be done by the composition taxpayer and it has to be done annually please note that GST payment has to be done before the return is filed otherwise your returns will not be accepted because I assume this works like the service tax where they will ask you for a token number which will link the payment of the tax with the return big file lets come to base of supply of ring so location of receipient of goods and services is now the key as far as GST is concerned okay earlier as far as supply we were wherever the manufacturer where the goods are supplied form is may be used to say the services we perform an efficiency that is not the case under TF is the location of the recipient and where the supply has been given is the place at which this has to be taxed lets look at the time of supply for normal supply steam CFE sgsn I GST of the good shelby table at the earliest of the following days goods are removed from supply for goods required to be removed woods made available this is for goods which are not required to be removed or involving suit or limit received or recipient shows receipt please note it is payable at the earliest of the following days okay lets come to type of suppliers result continuous supply of goods successful statement of accounts or successive payments are involved the date of expiry of the period to which sub successor statements of accounts or successive tables related no successive statements of account details issue of invoice or any other document or date of receipt of payment whichever is earlier okay lets at the time of supply for supply of goods on the reverse charge mechanism time of supply shall be the earliest of the following dates receipt of goods the pavement the receipt of the invoice or a development books of a comforts lets look at the specific reads under de SC now so government currently has given five rates tax rates zero percent five percent 12 percent, 18 and twenty eight percent it has also introduced it has also introduced the concept of a small exhibition which is a person who has a turnover of up to tool 20 lakh so you okay for this kind of person there is an option of whether he he chooses to opt out of registration because he is below the threshold limit or if he would like he can voluntarily register if he wants to be part of an overall supply chain and allow all his sub all his subsequent users to take advantage of the facts then it makes sense for him to be voluntarily registered it is lets look at the look at the provisions of unregistered dealers put forward so under step either is the major issue you okay unregistered dealers which is not a wing of people who are buying from unregistered dealers will not be able to do so without payment of a reverse charge now every every user has to make an invoice and or a bill of supply pay the tax as required from the unregistered dealer and then file a return to claim the input tax simple input tax credit on this that means for every purchase you make from an unregistered dealer for every purchase you make from an unregistered dealer you will have to calculate that on item what is the service what is the GST applicable to that item pay that calculate the GST and paid to the government of India only once you pay to the government of India can you take input tax credit order this hence put significant compliance on all businesses which are buying from unregistered dealers lets look at a concept of casual taxable person who is the casual taxable person a casual taxable person is a person who occasionally conduct undertakes transactions involving supply of goods or services that means to take an example of a casual taxable person is someone who sitting in Bombay who attends the trade fairs event in Bangalore she becomes the casual taxable person for as biggest taxation in Bangalore is concerned and hence she needs to register as what axis she needs to register as a casual taxable person in Bangalore at the facts unfortunately the compliance there is no there is no pressure as regards of a casual of taxable person at any sale of any amount he needs to obtain a registration irrespective of his own over there is no as with us validity he needs to apply for this registration five days prior to the commencement okay the process the process is that he needs to apply with the office and needs to make an advance he needs to make a pain at once of the deposit of his tax liability and after the event is over such person needs to file a return within money typically and either pay additional tax or Kaymer if one does again see advanced ESP now lets come to reverse charge so the a certain type of transactions which attract the most shots this reverse charge we will start a similar to the service tax provision so people who are familiar with service tax and how there was a reverse charge in service tax will understand that yes he has taken the same system your going forward liability to get liability to pay the reverse charge will be on the recipient of the goods and service this you were struggling with fully in cash okay you need to pay this amount to be eligible for input tax credit you cannot take an input tax credit unless you have feed the reverse charge all right and that is be glared on your return there is significant there is significant compliance involved in this because everybody who buys from an unregistered unregistered person would need to make those payments on a reverse charge and these reverse charge anybodys from the unregistered

the person would also have to prepare an invoice or bill of supply and a payment voucher so there are three things which need to be prepared for of three things which need to be three things which need to be prepared and filed and uploaded on the system before you can take the input tax credit on the reverse jobs coming to the invoice format as you can see were running a little short on time so Im not going to read everything but this is pretty clear on the presentation as to what details need to be there on a format this is a specific format of the invoice which has been prescribed by the GST nn anybody um working under 3 st has to follow this invoice okay so Im going to skip this and the next slide who dish it around to come to composition scheme okay so the government has introduced a composition scheme a composition scheme earlier the demit was 50 lakhs but a few days ago the limit has now with increased to 75 lakhs there are certain types of businesses which get opted for a composition scheme and pay a tax based on the turnover those businesses are and the tax rates on that are one percent of the turnover as regards the manufacturer 2.5 percent of the turnover as regards restaurants and people are doing food supply business and 0.5 percent of the turnover in cases of traders this is only the this is only the see GST part so effectively the rate effectively the rate should be 2 percent 5 percent and 1 percent including the CGS see one important thing to be noted here is this is not applicable for interstate suppliers so interstate suppliers cannot apply as a composition scheme cannot apply or the composition scheme they have to continue there later they have to continue on top they have to continue under the non composition scheme the other requirement here is that they need to apply annually you have to make a choice once a year and see where you want to go under the composition scheme or not so that you have to make an application to the authorities and you have to renew that application on a yearly basis composition scheme definitely has some advantages it has only a single as you discussed earlier it has only one quarterly return every every nerve of because one annual return okay but now the problems it cannot take any input credit since youre on a composition schema youre only staying a tax base on your own over there is no tax again which is taking input tax status so any input GRC that you have will have to be written off as an expense you also cannot leave not issue ODST invoice you need to issue something called that philip supply and the widow supply the business supply has to be given to your customer and the customer also will not be able to claim in good tax credit because you in turn have not read any GSC so your customer cannot take any input tax credit because you only get that below supply and it doesnt cater to us feel worse okay so lets start the concept of electronic cash ledger this is a ledger this is similar to the 26 es which you currently have for income tax so this will be an electronic cash ledger maintained of the GST network for each taxpayer which will give you the focal details of what is your output GST payable what was your input tax taken and what is be refunded or what has actually been adjusted and what we will shelter this will be a running length which we need to be reconciled by you on a month-to-month basis to make ischemic okay now lets come to the specific issues currently identified in DST so one of the issues we discussed was definitely the issue about making any any purchases from an unregistered below as you know any unregistered below any purchase from an unregistered Tina would be subjected to input back credit on a reverse charge mechanism so basically adding purchases you make from them you would need to you would need the person whos the recipient of the service or the purchaser will need to meet the invoice you will need to make a payment voucher you will need to make a um actual payment of the tax and based on that after taking the fact you will be able to treat he will be able to claim the input tax credit so it is incumbent on them it will be incumbent on you to keep matching this and ensuring ensuring that your in book that said it last gse which youre paying matches that you will enjoy your each other is in in in sync the helmet has also introduced the concept of GST rating so each each entity is going to have a publicly available system of GSP rating to see whether how good a GST compliant manufacturer supplier you are that how are you following the rules etcetera how this how this reading will is actually pan out currently we dont know but we look forward to your um whats happening okay now the main issue is the interstate credit availability currently the way it is set up is that see GST can be on the offset against eg STS GST can only be offset as that s GST so if you learn yogam you may wind up in a situation where all your P GST you may not be able to cover so this break in the interstate of gscp which you might not be able to take another in book tax credit can become an issue and may at some stage lead to an escalation of the costs of the product high Glee so now the government has also introduced something called PDS and GST so who is liable to DES so just now the moment has just recorded that there are only certain industries are there certain government entities which are live is to deduct PDS but the law is evolving on this and we dont know who else will be brought into the fold at some stage the rate of TDs currently is 1% so the deductr has to deduct 1% and pay this to the credit this TDS will then be allowed as a as a deduction against the service providers liabilities this is this function similar to our current income tax CBS which most of you are familiar with the threshold the threshold currently is full activity thousand rupees of payment on your the time line for the payment the pavement has to be weather-stained topical ointment okay we now come to the impact of PDS on government civil contractors this CVS has especially been brought in for government companies and various other certain categories of people who are making payments so typically government civil contractors take contracts from the government a vehicle contract from the government it doesnt do all the work is done outsourced is some to be being done passes it on so there has been a cascading of subcontractors involved as government and we have found that lot of these subcontractors were in effect not being subject to tax so they were getting away from payment of tax by putting a clause such as this effectively every intermediary in the cycle will have to deduct tax TDS s sauce on GST from each person down the chain so you may wind up in a situation where the last subcontractor also will act against this effectively will lead to a broadening of the tax base it will bring more people into the tax circle and hopefully will lead to more efficient systems as regards government contracts are concerned currently only specific industries have been covered but were not sure whether this will be added the whole purpose of this was to ensure GST compliant something in the unorganized sectors especially such as construction roadworks etc okay now we come to very important things as far as Indians are concerned revision of a return this is frightening because under the GST system currently there seems to be no manner in which the revision of a return can be done however you can amend it in the next return okay such an amendment is subject to a specific timeline and the timeline is that it has to be moved and commanding the return up to the due date of filing of the returns for the month of temple of the next financial year or the actual date of filing of the annual return whichever is earlier I can look forward to lots of representation from industry on a change to be made on this because I I really find it observe that you cannot revise the return something since kaneo why should the Ridgid not be allowed okay lets look at the transitional provisions apart which are pertaining to existing it assess is how do they migrate they need to migrate the registration window was open that window is now closed for existing assesses for new SS is a new window will open and at which stage you can do it we then come to the issue of unutilized input credit to be allowed to be carried over okay so any good credit which you have in your books can be carried forward except to the swatch bar access as the chrysocolla access which you will not be able to carry forward duty paid on stock stop held on trade on July 1st would all have a component of excise and bath as well as import beauty okay so you are allowed you are allowed to take this excise and back and as long as you can prove that there is a duty big document then 40% of the Duty amount would be allowed and the current and the government has just two days or ago allowed that this amount of 40% goes up to 60% for specific items where the GST rate is in excess of 18 percent so only where the GST rate is in excess of 18 percent you can take 60% otherwise all other of excise and back gets cleaned up to only 40% okay question on export of services so the supply of any service shall be treated as export of services when these following five conditions are fulfilled this the service is located in India the recipient of the service is located outside India the places of Pi of service is outside over there the payment received is received in convertible foreign exchange and the supply and recipient are not merely is not merely establishment of the same person okay now important thing is that all these clauses have to be satisfied all these clauses have to be satisfied for it to be called as export of services there is no all each of these clauses satisfied only then it will say that the service has been exported DSC will not be charged on any such export okay because exports will be treated under the new rules as a zero rated supply and will be subject to no CdSe however the stuff the the person making the export exporter will be allowed to avail see GSEs GST at iest paid of the input and input in Irbid on the inputs as well as the input of services used for the purpose of exports so the sub the exporter can then export okay in a very fun exporter container in front on this let come to depend of GMP so an important tax credit can be refunded only in force there was an export of goods and services as the GST was paid of the input the input tax credit is accumulated is due to a higher rate of tax on input as compared to the output and the refund is on a final assessment or for example access pyramid was erroneously made your the government has been kind and has allowed that final report can be mean or can be applied for the process for making early fundamentals of building applications with the DSP Network it has to be before the expiry of two years from which stood in front of crew okay you need to submit documents and applicators so if there is you have to submit the invoice the shifting bill the matrices the bill of lading the bank realization certificate I assume this is for manufacturing product if its an export or service that you would only have to supply for his voice at your back realizations to the picket if your even if your of um if you take a situation where your inputs are at a higher rate than your output then reefers will be proportionately allowed based on the ratio of export turnover to focus on over okay ninety percent of the research is to be processed in a week this is the good news for all of us that 90 percent of the response has to be processed the balance yet possess the oven can inquire look into etc but has to process that he permitted of other sixty days so this is finally some good news for us that at least by the end of two months we will definitely get a refund okay now coming to diversify in e-commerce so under under under the current regime as GSC aggregate sellers okay so under the current ratings sellers are charged back and CSC to customers the online marketplace charges a fee to the seller the service tax charge by the online marketplace also becomes a cost um to the UM to the final buyer uncle GST the seller would be the seller would charges CC GST and the GST for in Turkey intrastate sale and/or an ID EST for interface all input axis that GST on the manufacture product plus GST on any service tax etc will all be available for input tax credit that means finally you will be able to take input tax credit or everything this in effect will reduce to overall tax burden and allow you allow etcetera to supervises precision strategy to bring the overall price under become more competitive in the market okay I will how will GAC impact the aggregators current regime the online marketplace study the service tax service fee on businesses of which there is a service tax on the facilitation fee the online marketplace can avail service tax on any good service however any back credit of coaches of goods was not allowed under DSC now all this will be allowed at GC GSD and GSP or IDC has ideas C depending on the nature of the transaction will become full input and we will be able to take the full input Tax Credit and hence all credit of taxes of the input side are possible which means the pricing can be analyzed taking into account the competition in the market so Kunene issue your was where whether we could take the full input tax credit and the princess of life so your you can take things ax credit for everything there is more restriction however is the case of certain items which does out with has excluded such as motor vehicles some on motor vehicles employed assumptions removal property okay apart from these all input credits can be taken seamlessly as it a spacer supply the place of supply shall be the location of the recipient as because b2b transactions and the location of the supplying case of b2c transactions so this is very important that the location the location and the pleasure supplies the best sorrow wear whether it is a b2b or whether it is a b2c please bear this in mind so lets look at activity now all supplies will be taxable registration will be um will need to be obtained in all axes where the operations are carried out so if I advocated functioning in all 29 states and 7 union therapies they will need to register everywhere the points of Taxation shall be the earlier of the following the teeth of the invoice the date of receipt of payment date of or the date of completion of suppliers involves not reason prescribe side or the rate of disease so whichever is earlier whichever is earlier will need to be the date at which the point of action will accrue now it is also a fact that UCS for GST okay so an aggregator has to deduct an applicable one percent GCS on all ecommerce transaction the supplier in turn can then claim credit of the TCS amount the e-commerce operator like normal will have to file returns etcetera to clearly specify how much is the TCS deducted from each supplier that supplier can take credit for the PCs and then finally discharged with final overall liability we are hoping that most of this most of this would would most of this would become automated because the system is supposed to be automatic and you get automatic credit etc there is however an issue here that all suppliers are given to us a sense that most large online e-commerce platforms have lakhs and lakhs of suppliers and some of these suppliers may currently not have been register the GSP registration in the middle and Alexa girl if these suppliers want to take advantage and claim the TCS of it is incumbent on them to get register even though even though they are below the 20 lakh limit that is what we meant by voluntary registration so this is the advantage of the voluntary registration that if you are registered even if you are below the 20 lakh leave it then only you can take offset the CCS and offset it against your liability otherwise you will lose the CP of the now comes a very important concept which is called aunty profiteering measures now the government heads has created an NT profiteering clause in this in the GST so as to ensure that any benefits of the reduction of the GST and the reduction of the cascading of these taxes must necessarily be passed on to the end consumer and cannot be taken only by the company and benefited how these aunty profiteering measures will actually work event with his guests because currently the government has not really given us any mechanism or has not given us any safe harbor rules or have never given us a plus or minus five percent margin or anything so we need to see how this will be implemented and this of course um goes without saying that we are quite confident that the government will implement it as theyve done at other practice how effective

this will be you have to keep going forward so lets come to some of the si uses compiled for diplomas our GST threshold limits available know if you are supplying your own goods and services through your own water or you are a supplier of goods and services to a web portal is respective hell turn over you are required to obtain registration and discharge tax so those thresholds do not apply to you you have to register can I know pro composition ecommerce operators of SEO suppliers of goods and services ratio Im definitely not eligible for composition levy however a person making in trust the supply of all goods over all digital or network platform or facility can up can opt for a composition levy so there is a way out of opting for a composition lady but it is restricted to only a person who supplying is all goods over his own digital or electronic facility only then are there any relaxations for online information and data access or retrieval systems currently there are special provisions have been provided in the ICSD acts regarding payment of tax where online information and database access services are provided to non-taxable online recipients in India the recent needs to provide for such special provisions making the overseas provider as liable to create things tax as the place of provisional services in India and a non-taxable online recipient cannot be expected to fully fully complying with these formalities further such online information services it is that easily be very easy to manipulate the of location to simply ask if the tax liability hence the government has brought this clause where any person whos receiving and not registered as the GST but receiving online information and database retrieval services relation to any services a good amount to would amount to a taxable entity and would have to charge or reverse charge so lets just compost in summary as to who shall pay so basically who shall pay will be the taxable persons and defined as the schedule tree on what will GRC be paid GST shall be paid only on the supply of goods and services and on the value addition it is a value additional at least is so you will be GST only on the value you are adding at each step of the service or the production when we receive deep it directly shall we paid it at the point of supply where shall GNC be paid GST will also be paid as to where is the place of supply the whom shall it be paid it shall be faced to the respective government depending on whether it is an the state or an interest its transaction and how do you think you would have to pay GST either by cash or by credit card and we are still looking at government is still looking at how this will evolve so currently we dont have any information open but we are hoping that this will come through at some stage okay so I thank you very much this is the basic presentation on mob this is the basic presentation on GST and were open to questions now lessons you have very very extensively covered each and every aspect and I am very sure that our Edition is todays have like really cut immense knowledge quest from your study commander subject I just show few oceans to you which has come from that indeed so debate iqbal are female we buy many products from various suppliers and sells the same offline and also online to our own websites just wanted to change whether we are liable to detox pcs if yes should we deduct the periods of all supplier what will happen for offline fees so what is your platform if Javad can just give us more information on the platform because if hes an aggregator and he is telling me he basically would be covered under the e-commerce operators he would amount as an e-commerce operator and I open a line for debate but you know not how about answer the question yes you would definitely have to deduct the 1% irrespective of irrespective of whether the question whether the supplier is within the limit or not that the odessas of the supplier whether he wants to be registered or unregistered to claim the EPS sure the next question is we are the market is authors do we have to know do we have to now make the invoices on behalf of the seniors or sellers can continue making their invoices equation remember comp Spanish yeah so you are an online marketplace you are not you are not the person selling so who shall pay is only the taxable person and the taxable person here is the supplier so the invoice is still so from the supplier opening next question is from Chitra she asked what about soy product X glide my services such as restaurants no so now there will be no sets going forward now so no restaurant will be charging you any sets because all the sets has been subsumed into GSP so if the restaurant has gone under composition scheme then that comfort then if its a restaurant which is in the composition scheming is Spain and the 5% as the opposition scheme then that cannot be taken as it tax credit that is one of the exceptions in input tax credit that restaurant input Tax Credit cannot be taken and anybody whos under composition so even if you have a supplier whos at the composition if yes one of the composition then he cannot invoke he cannot really invoice itself he will only be able to raise a below supply so there will be no GST mentioned the below supply and hence you will not be able to take any putback thread vinnesa candy can you please ask your question to versus Vinita candy hi Anita hello yeah Jenny disaster question to rush this yeah my question was with respect to existing talk and how do I claim the input tax credit for that so so the existing stock your input tax credit can be taken up to 40% if your if your stock of when you migrate the stock but if your stock is in a in a category which attracts 18% GSE then or more 18 percent of all you can take 60% in good credit if your stock is in is an item which attracts bureau below 18 percent duty then you can only take 40 percent abatement but if your item is above 18 percent duty then you can take sixty percent of it with and take that input tax credit there is a question from Shantanu god he asked how GHC be applicable to startups or technology companies working on a task model so DST will still be applicable to technology or whatever model they work on because as long as they satisfy the rules that they are providing a service and the definition of service and the G seems very unique it says services anything which is not good so any service you render which is exempt outside the few exemptions as regards medical health or education every other model or service is subjectively st and the levels GS peacock the sections will apply and you would have to register for GSC as the same rules will apply there is no change Swami Norton Subramanyam asked what will happen and supplies receipt invoice or vice versa Im sorry I that questions I didnt hear that clearly okay so he is asking the scenario what will happen in supply treated invoice or vice versa so it will be which is a whichever is earlier no the rule is supplied supply or invoice or date receive whichever is earlier so you have to claim depending on whichever is earlier a basic bar asked how the GST affecting the online process is it same for market if like Amazon tip cars and sell websites such as journey Samsung etc selling their products online no so see if you are if you are a self website then then your self website can approve um if you are a stealth website that you can opt for that composition scheme otherwise you cant offer the composition scheme and you have to go only for an IDs and and you would be an aggregator correct so look no I didnt say I didnt get yeah that is all we are faster eh affecting the online portals is it the same for marketing second isnt it cut and sell websites such as journey something is pictures at India products online so it may be I wanting to understand one is an aggregate aside and one is the scalloped website were running the own descent so how is it going to impact these levels there will be no impact because we are dealing it is not raising the invoice anymore right who is there will be there will be two invoices right to the person one will go from the supplier and one will go from the aggregator so the person making the payment is making a payment making two payments to the aggregator one is on behalf of the supplier and one is on behalf of the aggregator sure Vanitas NTR what is composition or non composition skin so composition scheme is an option available for people below the threshold limit of 75 lakhs so this is like the ease of doing business clause where where on a presumptive tax basis instead of you maintaining full records of your input output etcetera to determine what is your net taxation the government is giving your composition scheme and saying that depending on the industry you are you pay a one pair two percent or a five percent or a tax on your turnover so you dont have to calculate on each thing that is the composition schemes everything otherwise is normal position here imesh going through us I could your company charges a services how to take it in credit for this because I am already paying the 30 steps again yeah so now now they now the curio company will not charge a service tactical charges GST tracking a/c as long as you have received an invoice and you have made the payment within 180 days you can take that amount as input tax credit and offset it against your output Tax GST payment which you have to take so if the courier companies within the state they will raise a CGS Vienna s GST bill you can take this you can take that break up and adjust it again so CG SC SC SC going outside Oh some prizrak outside the state that means its a its a it says though it sends a courier from outside the state then sat outside the state could your company will charge I DSC and you can offset it against or IPRC liability but it can but you can take the input tax credit theres another question coming from Vinita and Isha otherwise I am ICC for existing stock so I just answer that no IDC on existing stock will depend on the nature of your stock okay whether youve attacked liability on that stock um is under in the below 18% category are they above 18 percent actively if you are below 80 percent activity you can take input tax credit up to 40 percent and in the above 18 percent category you can take input tax credit up to 60 percent Vedanta Bavaria asks whether seller attributed platform who do not charge any commission from the scales will be required to collect CPS tax collection at source one person from the sellers if yes and how should be the TCS deducted from the sub sellers and how to issue that you see a certificate so they will online aggregator will have to definitely auto body copy he becomes an e-commerce and for me commerce companies specifically this 1% TGS has been broken so he will have to deduct PCs at 1% and standard process of depositing the PDS the PCs based on the suppliers GST iron will have to be followed that that PCs collected by the online aggregator can be offset by the supplier gives his output um GST liability no problem sure punishment into asks can non-registered sellers sell on our marketplace if they are ready to give our the 1% pcs yes they can sell theres no Harmons this there is no harm at all in selling what is your work as you got selling theres no problem the only problem is because whoever is buying from an unregistered dealer they will have to on reverse charge make a gazelle pay the tax so for the unregistered dealer selling on the platform is not an issue the issue is that the people who are buying and if those people are apart from individuals if youre an individual whos not subject to GNC there is no problem but if you are an entity just subject to GSC that any purchase you made from an unregistered dealer you will have to pay the GST on reverse charging mechanism I think for Sylar that is shoes for buyers sure I can promise us what about the stating point and 1st July automatically we have to switch to JSC and about earlier transaction well now we are all this is a question which is more directed to the finance minister than me I mean we hello a thing instructions on how the migration will be done etcetera as you know the law is evolving on a daily basis and the GST that was meeting is again at the end of this week or early next week so as further information comes up going to know how the migration is to be done sure Lorenza Bavaria asks in case an individual is running a track with a Catholic relative platform and the car educator and the individual decision to interfere receipts on his or her own behalf then does he or she is required to get registered on GLC no see the cab operator the cab operators someone will have to who is who if the in this system is generating the invoice currently to the end operator is the cab individual no the cap is not when you take an overall Google generated or saying boys comfortable okay so so uber will generate the invoice so I dont think the individual would need to register it it is the general how Hooverville registerable welcome to does the PCs and give is Marisa filled us up to each individual person whether he wants a privately in the PCs register and in the pcs or or not depending on the individual illustrates personal so if you are someone with multiple said it may make sense for you to register in the PPS but if you are one of taxi you may not want to register each cadet asks how do you work for warehouses very ecommerce company provides warehouses for suppliers in different states transfer from supplier to warehouses is a taxable so if its a different state then transfer from one warehouse to another is definitely taxable but if its within the same state that is not taxable Joseph teacher asks via our marketplace who helped woman buy and sell secondhand fashion so it is a peer-to-peer network with us just acting as agents in between for example when a girl buy the dress on mistress you would have already paid a tax for it she gets bored of the chicken salad through our platform how would you work for us you may whos cutting the invoice in this case I mean are you just providing the platform who is supplying thats the important thing depending on that the answer would be whether it is the supplier or the platform dancing over yall if youre selling on an open platform like OLX which is me which is just a platform which is giving buyers a tenner directly so there is no the invoice is not generated by all the invoices generated by the individual if the individual to individual the GST will depend on whether its subject to business or not or is that – general business or Im just having a one-off secondhand item next question from Vedanta Bavaria he asks what happens when a Buddhist service has been sold and taxes are packaged and then gooda services return to supplier and whole transaction is we reverse to consumer so the returns are considering GST scheme and and you can if there are goods returned and you have the mechanism for how good returns will be Allah will be adjusted will come out because the process has not yet come out the procedure but but in principle they have said that whos returned is a normal occurrence in business and you will be able to adjust and reverse the GSE accordingly the terminal asks we provide software services such as website development animation – Oh business ITP ein is it comes under exposure services or we are liable to pay tax for rendering such services so the recipient of the services overseas okay so so it would amount to export of service and normal clauses of export of service for supply and the if its an export of service then under a bond they can export without payment of tax provided the entity overseas has no correlation or does not have an entity in the taxable territory so you have to see whether there is that is suppose the companys overseas but it should not have a grant or something in India and it should not amount that youre just doing this for tax planning purposes if that is the case that you will able to claim it as export provided you satisfy those five conditions that it is export you are located in India the client is located abroad it is an export the the money is received at foreign currency so if you satisfy those loans that we had it will be our X for another question from Vedanta Bavaria wants to do in case the aggregator is not becoming a part in the whole payment cycle and payment is happening directly between the customer and the seller no me but but aggregator has to be part know otherwise the thing is not an aggregate of if you call it him an aggregator that is part of the cycle then otherwise hes just a marketplace provider if he is an aggregator then he has to be part of the cycle and he has to do the billing and he has to deduct the CBS TPS sorry from Manish tiny the question

online sellers where Kuja it is also done by the aggregator is there a possibility of taking inputs on the invoice raised by the aggregator which includes Commission and the courier charges of course yes full input tax credit can be taken again provided that the invoice is clearly in your name which is matched etc and I shall open your line if you have any question is an austerity yeah hi hello kidding me yeah yeah so actually my question is actually in continuation of the spirit previous question that Id asked the question is that if suppose the seller is not registered on GST any selling on our platform and we are deducting that 1% TCS and hes okay with it but who should be pilot in the name or I mean the when we are you know we will have to get the he will see this is this is an issue just now we cant answer because we dont know what the how this finding is going to be what is the process Im assuming that the town well give you an option of saying um unregistered and registered and if registered give you a number because of its unregistered you wont have a TSP number so maybe they will ask for pan number or something else okay because because the thing is that if theyre not registered if there is there a particular law which forbids them from selling online no there is no law which forbids no farmers in this country can be forbidden its just that its a risk the file has two kids that means buy from an unregistered dealer but thats an individual and then he has process the risk whether he where because once he buys from an unregistered dealer we will have to pay the input tax credit on the worst charge mechanism etc so its up to him what he wants to do there is no restriction on the unregistered dealer that we cant sell but that person is an individual so I mean into buyer is an individual if the buyer is an individual not subject to service that there is no issue but if the buyer is if the buyer is an individual who is subject to GST then you have to charge the reverse tax if its an individual to individual transactions there is no question of GST okay thanks so welcome rent Ibaka here you may ask your out hello oh yeah we can hear you yeah sure so sir my question would be in two parts one would be as I said before the aggregator thing considering that we are not an aggregator but a marketplace then Watson err do we have to collect the TCS at that point if we are if youre a marketplace who is doing the whos doing the billing because individual suppliers are considering the scenario so that is if the individual supplier is doing the filling and but you are collecting comfy right so we are not or not at all apart during the payment ultimately part of the payment process so what is the value addition you are doing sorry what is the value addition what do you make what is you are raising a commission or something on the supplier rec no sir we are not raising any commission here we are just considering this that we are just a platform for providing opportunity for some sellers or suppliers to sell their products to end consumers so the best time as long as there is no value moving and there is no there is no charge flowing of all that service we would then we would but but but we only need to understand whether the department will say that this is service for nil consideration but there is still subject to some GST idly idly at and then then the department should not sit on your head and put some kind of fair value take that note this is the value you have brought and ends on that value addition you subject yourself to GSP so that is a risk you will be taking but technically if the bill is going straight from the supplier to the purchaser and youre only providing of platform then there is no money flowing through you so there wont be a question of a PCS at all all right sir now considering the second scenarios of what in case the sister things are happening the same thing only the payment is getting processed to our channel ah so now you are coming no the pavement is being processed through your channel means you then then you are acting as an aggregator then Department will definitely say you ended up with easier all right sir fine and one more question sir if I mean Oh what in case yeah I had discussed scenario earlier that this aggregate a platform for the cab drivers right so now if the cab driver themselves are giving the invoices to sir and providing the service and give expecting the invoices to and consumers who they have those drivers do they have to register for GST considering their book episode propellant and packaging boys but theyre reporting lean voice on behalf of the aggregator No so if a cab driver is cutting an invoice is for cutting an invoice on his behalf is tacitly involve on behalf of the aggregator no no sir law on not not on behalf of aggregator considering Hoover it will not generate a invoice on the name of kuba he will generate the invoice on his own name he will generate the invoice on his own name right I think you will have to register for GST and here given the scenario that the maximum retention limit is of rupees 20 lakhs for individual hello no sorry we are just internally Im trying to just mull over this one minute oh all right the cab driver will be treated as an individualĂ­s then is the threshold issue will come into place where there is under 20 lakhs or above any laxity number 20 lakhs then hes out of the GSB think it is amount that we would be liable to registration because most of these fat cap drivers are not owners or the owners of multiple cabs so then the sum total of that business activity in to understand the threshold because the threshold computation includes any taxable non-taxable business both have to be added onto calculation of your of your 20 lakh threshold so the sum total makeover friendly-like the business depends on the individual driver ok efficiency all rights of any romantic thats the four already or the response times what we can give them other universal so for example that is registered or not the poor either let it get sucked it by the worst judgment because transport is not under the worst charge so the transport is not technically under reverse charge and yet from what we understand okay so so if if if its no no Im talk–i my passengers and for good transport were not talking about so good shrugs what anyways on the reverse shuttle which transport is at the reverse charge they are not being on their own so in passenger transport is not under the worst charge yet so I think I think that will hold through that the individual individual supplier will have to judge whether they need to be registered on the GSP depending on their individual limits okay what is in question and maybe we can relook at this question in around ten days time once we have a little more clarity on how the law is evolving if so lets go someone puts these puts the question down Andy near the to me Ill keep it in mind and reverb intent is what you know whats happening more indeed yes okay Fiona would it be I already shared a fortune with you yet yeah because he some of these issues we dont have answers currently and and they are making daily changes and abatement etcetera so it may be you know we could either do a follow-up conference once the role rules are all in place or we just answer these questions or something you know sure thats good you know you guys are any and think about it but it was exactly what we are learning you know that is the reason why I had postponed the seminar to the end of June because of this reason only because the law is still you a bar on it so we dont have all the answers correctly sure sure did you give an order of that yes yes okay so okay anything else I want now exclusion from jiu-jitsu kita Im opening her life Cappadonna hello can you know yeah alright so much for this session its been amazing very helpful for so this is in continuation to that question that I have a peer-to-peer marketplace for women so essentially yes we are aggregators we have the invoices we issue the invoices for the buyers yes tell me when you are you are issuing the invoice for the buyers if you are asked what should they want the nude amount to the provider and then PCs would be applicable on you but the only doubt was because my sellers are just individuals and my buyers are also individuals so there is no business business in behind commerce unfortunately unfortunately there is no clarity on that as we does the DA as the got GXE at all because they are they are facing electronic commerce ecommerce pcs will apply now whether there is an exemption where where the buyer and the seller about individuals etcetera nothing is yet quintic you know so again this should also be something where you can watch the rule law as it evolves okay okay and plush is there something also in connection of double taxation because something that I am selling today has already been taxed before because this is a secondhand good no but it has it so once again what your selling today has already been taxed before no moral thing is that I bought this something new and I already did tax at that stage now I am paying tax on the seal yeah somebody is paying at least like so if we are aggregated we will be paying but I dont know who would be charges to because now I seller that individual seller so they will definitely not be applicable on GST so they wont have input credit to be able to take correct here so if you are wearing a short today you would have already paid the tax for it but if you are getting bored of it you can send it through our platform come but then if you so Im putting this the other way around and telling you that you give tell it outside the platform that theyre so tedious are based on pcs because it becomes a person-to-person individual objections but the moment you sell it through a platform then it falls under the definition of e-commerce currently okay okay but yeah so how would my tax fer this the GST that I will be paying would be 1% or how show you were using the invoice right yeah to you your tax nor your GST actually will depend on what is the product youre selling no so yes a little happened so it will be yeah that 18% lower battery depends on there is a that is something that if it is we know one houses rupees then it is at 5% and um and if it is above 1000 rupees it is an 18% but that is also a linear molding on a if its manufacture and the homework is that the first thing so its all its all evolving it okay okay so by whatever attacks we will be so much analysis will be what is the back youd have to pay on the sale of that and you would have to deduct you would have to do that pcs on that payment which you are making back to back to your client is whether okay ID I used to bring these speakers into the tax net so either they are taxable unfortunately there is no exemption of the piece here yes there is no aggression on the PCs so the government is not saying that is not applicable if you are paying to our individual whos below the ribbon bow anything okay and okay to give you one second Ill just open the GST manual so so book there is no intention for PCs there is no exemption on PCs PCs CCFL it needs to be deducted okay okay so essentially what I am earning so if I am selling or short worth rupees five and register for an example as a platform I am an aggregator so my commission would just be hundred rupees so but the GST charge would be 100 or 500 whatever remaining 100 so but now again now the point is that the point is that are you marketing your service are you going to show us critical or consolidated bill because there is going to be consolidated for everything or is this going to be a separate bill for your market charge yeah as of now was the biological ended so correctly youre setting your shirt youre all so what happens is not applied and see that your stuff is already you are adding some reason Manik was elicited cyberhood yeah correct so then you would allocate your 500 oh okay okay stuff you would have to deduct pcs on pornography mm-hmm okay so your PCs would be on 400 but your number of but the senior is that your idea of this increase and especially and if you need yeah either the idea of this is that if Laura Congress is the villa and pcs is deducted then this text based on your overall threshold the unregistered 11 survival by the returning paper refer to feet below the – right so he has the option of claiming the refund but the government wants to bring these unregistered dealers into the net to understand whether theyre actually below the threshold or not okay so if you understand the genesis of why the CPS has been brought then you understand why so this is not full charge that I CSS takes that 1% from him the purpose of the business is to compel him to open his real books on record bring transparency and show the bottle by the region you only below the threshold limit or not if he is indeed below the threshold limit and show that the orbit will allow it to waver in front at some stage yeah I get it yeah the focus is good but the problem is for my individual sellers it starts becoming a problem for them because we are yet individuals and then then then you have to redesign your business in such a manner so that Jam will do you relieve you raise the circuit enjoy so so you are taking an invoice on your on your value-add which is a hundred rupees which is one hundred of these correct every were thinking of reevaluating this do you evaluate how do you believe your take this off like if you need any help on this earth that will be create that internally health because maybe time if I wear these models will have to be relooked at taking into account the new tax points no because if the taxation of the transaction becomes so large larger than your profit that it doesnt make sense in percent of 500 rupees will be more than 100 euro so whether its worth doing that you have to understand though that Taras access we will try to soon have another seminar and another engagement with participants have already overshot an eye our respects yeah ponte net multi hundred event worth more than required and we are really happy to be able to connect to users where so many questions they request uses certainly that is leaving your questions if you have any an ID of a Blee Ill answer them goes to doctors – like it over and answer you back the expert of Neos is like unlit on habilitated edited but yeah definitely it will make none Im on LinkedIn etcetera so just feel free to connect with me and write to me and we can look at whatever has to be looked at and one thing so much to know is that you know one of the suggestions I would like to be looking at all the number of questions is that if next time one day in advance of to get advance the questions about know well be better prepared for the answers also and because even for the next seminar the basics you dont need to go out – I think most people now will know the basics method so we will cut down on the basic set to more Q&A and answer more of these questions which are pre fielded and then water fielded librarian processes is in full Seminole region or do it next year now that that that Ive got a contest of the seminar the topic and I have got questions in their mind they can definitely come back and share the same with us so that we can take it up to you via onion platform why are your LinkedIn profile we are always ready to help them yeah no no a few three okay so losing that time know for today that SP it was a wonderful I would yeah I would be happy for any feedback oh so if you have any talk about the life that would be sure because it helps us prepare for the next event as well yes yes participant Id also like encourage you to you have given your poll so that is a great way of letting us know and wed also expect you to take a survey over the course that we do to do it to record your straight feedback so this webinar so please let us know as to how this event went and what you fell and that is it was a pleasure having you on the webinar actually appreciate the way you covered each and every stock page and I will express my appreciation to the participants as well and we have of our funny foundation for your dedicated participation annual distance when have another net nurseries and would like to bring to another in shipping experience so we should success in angular and thank you all thank you thank you

tags:
Entrepreneurs, GST, ecommerce, online aggregators, tax, webinar
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