Interaction with Members of BCAS Author : GSTN Team Date : 8 th - PowerPoint PPT Presentation

Interaction with Members of BCAS Author : GSTN Team Date : 8 th August, 2018

GST IT Strategy Harmonization of Business Autonomy of Aut of back back-end syste ystems of of Processes and Formats St Stat ates and and Ce Centre Common & Shared Centre/States IT T IT Infrastructure Tax IT Systems Inte nterfaces Non-Statutory Functions • Approval of Registration • Core Services Registration • Assessment – Functions – Returns • Refunds ry Func • Audit and Enforcement – Payments • Adjudication • Helpdesk support Statutory • Internal workflows to support • Information on Inter-State supply and cross-credit utilization above functions St • Analytics • Recovery • Analytics and BI • IGST Settlement Front-end Back-end

A Complex Software like GST is like a High Rise Building Attributes High Rise Building Complex Software Architecture √ √ Detailed planning √ √ Grounds up √ √ Minor changes Possible Possible with less cost and time Major Change as Not possible Possible but with lot after thought of cost and time Can more workers Marginally Marginally and machines expedite work Visibility as it gets Yes No constructed

The Journey of GST 8 th Nov 2016 13 th Jan ‘17 Migration 26 th Nov ’16 June 2016 April 2017 End June 2017 started Removal of 1 st July Publication of 6 Rules finalized, Final Rules/ Publication of deficiencies in 2017: remaining 5 to be Formats were First Draft of Revised Draft of Composition and launch finalized by 10 th Model GST Law made available Model GST Law Registration Rules of GST May v 25 th Jun ‘17 May 2017 4 th March ’17 28-30 Dec 2016 Sept 2016 Soft launch of Rollout of GST Revisit of CGST and IGST Publication of Rules for Registration, Portal – New Registration, approved by Registration, Return, Payment and Return Registration and GST Council Payment, Payment, Invoice and Payment Composition and Refund Refund Rules

GST System – Overall Stats (7 th August 2018) Functionalities Counts Number of Returns Filed till date 13.76 Crore Number of Invoices Processed 412.9 Crore Number of Payments Transactions 4.7 Crore Number of Migrated Taxpayers (net of cancelled) 63.07 Lakh New Registration Approved 50.31 Lakh Taxpayers Opted for Composition 17.7 Lakh GSTP Enrolled so far on GST Portal (applications filed) 87,636 Highest Return Filing in one day (20 th Nov ‘17 and 20 th July ‘18) During the peak 18 Lakh load, the server utilization was 27% only. Highest number of Payment transactions in one day ~800,000 E-Way Bill Issued 16.5 Crores (since 1/4/18) Maximum number of e-way bills in a day (13 th June) 19.77 Lakhs

GST System – GSTR-3B Filing Compliance Stats Returns Filing Eligible Filed till Last day of Filing % on Last date of Filing Filed till 2nd Aug 2018 % of Filing till 2nd Aug 2018 Jul-17 38,34,877 51.40% 85.07% 74,61,214 63,47,445 Aug-17 27,25,183 36.18% 91.40% 75,32,807 68,84,809 Sep-17 39,34,256 49.64% 90.78% 79,25,831 71,95,036 Oct-17 43,68,711 53.58% 85.29% 81,54,303 69,55,070 Nov-17 49,13,065 61.47% 87.48% 79,92,517 69,92,107 Dec-17 54,26,278 66.32% 86.00% 81,82,277 70,36,793 Jan-18 53,94,018 64.50% 84.76% 83,63,437 70,89,031 Feb-18 54,51,004 63.79% 83.54% 85,45,661 71,39,288 Mar-18 52,83,962 60.68% 81.79% 87,08,493 71,22,257 Apr-18 56,38,813 63.95% 79.97% 88,17,798 70,51,766 May-18 56,18,925 61.60% 76.97% 91,22,309 70,21,817 Jun-18 58,39,034 62.67% 72.50% 93,16,710 67,54,169 Jul-18 N.A. N.A. 2.14% 94,70,282 2,02,945 GSTR3B Return Filing Compliance 80,00,000 70,00,000 60,00,000 50,00,000 40,00,000 30,00,000 20,00,000 10,00,000 0 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Filed till Last day of Filing Filed till 2nd Aug 2018

GST System – GSTR-3B Filing Compliance Stats GSTR 3B Filing Compliance Last date of filing vs as on date 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 % on Last date of Filing % of Filing till 2nd Aug 2018

GST System – Filing of GSTR-1 Compliance Stats Returns GSTR-1 GSTR-1 % GSTR-1 Period Eligible Filed Filed July'17 74,61,214 57,98,006 77.7% August'17 32,60,937 23,46,532 72.0% GSTR-1 Return Filing Trend September'17 79,25,831 63,24,130 79.8% 1,00,00,000 90,00,000 October'17 34,38,891 23,87,357 69.4% 80,00,000 70,00,000 November'17 31,26,495 23,99,718 76.8% 60,00,000 50,00,000 40,00,000 December'17 81,82,277 61,98,977 75.8% 30,00,000 20,00,000 January'18 32,29,377 23,08,524 71.5% 10,00,000 0 February'18 32,74,028 22,63,381 69.1% March'18 87,08,493 58,40,908 67.1% April'18 44,96,316 21,56,890 48.0% May'18 46,82,345 20,75,267 44.3% Eligible Returns Filed till 5th Aug., 2018 Linear (Returns Filed till 5th Aug., 2018) June'18 93,16,710 28,08,442 30.1% July'18 47,75,626 88,815 1.86% * Last date of July GSTR-1 was extended till 31 st Dec

Refund Export with IGST Paid, as on 7 th August, 2018 Data Transmitted to Invoice GSTR IGST CESS ICEGATE Count Count 1 Total Transmission to 34102.13, Cr 197.57 Cr 18,74,251 77,240 ICEGATE Data Not Transmitted to Invoice GSTR IGST CESS ICEGATE Count Count 2 Due to Negative Balance 2213.07 Cr 2.15 Cr 1,79,834 12,003 Due to Transmission Error 2.47 Cr 0 293 13

Some Observations 1. There are taxpayers who are consistently filing returns late 2. 2.52 lakh migrated taxpayers have not filed any return 3. Many are still showing different liability in GSTR-1 and GSTR-3B 4. The gap between ITC claimed in GSTR-3B and that accruing from GSTR-2A still persists 5. GSTR-1 filing is behind GSTR-3B 6. ITC utilised lower than ITC availed. Why is it being kept? If it is ineligible ITC, it should be declared so that it can be settled. 7. Compared to the count of Composition taxpayers (18 lakhs) the cash paid by them is small. 8. Taxpayers have prepared eway bill but have not filed GSTR-3B

Taxpayer Segmentation 2015-16 Vs 2017-18 Percentage of Percentage of Turnover Total 70.00% Total (GST) SLAB (VAT/ST/CE) 2017-18 2015-16 60.00% Upto 20 Lakhs 52.24% 60.40% 50.00% 20 Lakhs to 40.00% 1.5 Crores 31.12% 26.69% 1.5 Crores 30.00% to 3 Crores 6.57% 4.58% 3 Crores to 20.00% 5 Crores 3.36% 2.58% 5 Crores to 10.00% 10 Crores 3.05% 2.37% 10 Crores to 0.00% Upto 20 Lakhs 20 Lakhs to 1.5 Crores to 3 3 Crores to 5 5 Crores to 10 10 Crores to 100 Crore and 100 Crores 3.28% 2.91% 1.5 Crores Crores Crores Crores 100 Crores above 100 Crore Percentage of Total (GST) 2017-18 Percentage of Total (VAT/ST/CE) 2015-16 and above 0.39% 0.47%

e-Way Bill System – Overall Stats Functionalities Counts Total e-Way Bills generated till from 1 st April till 10 th July, 2018 16,41,99,397 8,27,58,983 (50.40%) Count of Inter State e-Way Bills 8,14,40,414 (49.60%) Count of Intra State e-Way bills 21,77,002 (on 31 st July) Highest number of e-Way bill generated in a day 22,89,271 Number of Tax payers registered with e-Way bill system as on Date 29,385 Number of Transporters registered with e-Way bill system as on Date Monthwise e-Way Bill generation 5,00,00,000 June, 2018, 4,67,65,199 4,50,00,000 May, 2018, 3,72,31,666 4,00,00,000 3,50,00,000 July, 2018, 4,42,10,436 April, 2018, 2,79,96,004 3,00,00,000 2,50,00,000 2,00,00,000 1,50,00,000 Aug, 2018, 79,96,092 1,00,00,000 50,00,000 - April, 2018 May, 2018 June, 2018 July, 2018 Aug, 2018 Intra State Inter State Total 12

Hourly Filing of E-Way Bill April: Hourly Generation of e-way Bill 12.00% 10.93% 10.20% 10.08% 10.00% 8.61% 8.23% 8.00% 7.36% 6.94% 6.50% 6.41% 5.71% 6.00% 4.56% 4.00% 3.40% 2.09% 1.95% 2.00% 1.28% 0.95% 0.90% 0.76% 0.63% 0.54% 0.48% 0.43% 0.43% 0.62% 0.00% 01:00 02:00 03:00 04:00 05:00 06:00 07.00 08.00 09.00 10.00 11.00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 24:00 Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours

e-Way Bills Generated – Top 10 States Top 10 States on Total Number Top 10 States for Inter-State Top 10 States on Intra-State of EWB EWB EWB Maharashtra Gujarat Maharashtra Gujarat Maharashtra Karnataka Haryana Haryana Uttar Pradesh Karnataka Tamil Nadu Haryana Uttar Pradesh Delhi Tamil Nadu Tamil Nadu Karnataka Gujarat Rajasthan Uttar Pradesh Andhra Pradesh Delhi Rajasthan Rajasthan Punjab Punjab Punjab Andhra Pradesh West Bengal Kerala 14

Challenges Faced 1. Capacity building of multiple stakeholders (mammoth task of Change management) 2. Getting stakeholders to align the business processes with technology solution and remove redundant processes and steps. 3. Workflow driven return system, which was not accepted by the taxpayers and tax consultants 4. Paradigm shift in working of taxpayers: Huge resistance in going from paper + electronic mode to 100% electronic mode. 5. Complexity of law and operations. 6. Flexibility, scalability and security -System has to be flexible to meet the ever changing requirements and needs. At the same tine secure and scalable 7. Peoples behavior: to do things at the fag end of period. 8. Building the ship while it is sailing.