gst tool for builders and contractors
TRANSCRIPT
GST BUILDERGST impact assessment and Decision Simulator
www.gstbuilder.com
Builders Real Estate DevelopersContractorsAll types of On - going Projects
Why On-going Projects
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GST Impact -ON-GOING PROJECTS
GST Impact Analysis is normally done on the historical data + existing business flows.
However, in case of on-going projects some additional homework is required:-
GST CAN BE FAVOURABLE OR UN-FAVOURABLEDEPENDING ON EACH OF THE ABOVE FACTORS
1. Assess Project Completion %age
2. Forecast future projections for the balance portion
3. Identify “indirect taxes” in projections
4. Compare the “GST credit benefit” vs “Current Lapsed indirect taxes”
5. Strategize the future collections
6. Negotiation strategy with customers
7. Sub-contracting review and the possible rate revisions
8. Working Capital Impact
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Customs
CVD & SAD
Excise
VAT/ CST
Excise
VAT/ CST
Service Tax
Illustrative Impact to
Real Estate Sector
Import of material
Domestic Material
Capital Goods
Supply of Services
VAT
Service Tax
Stamp Duty
Current Regime
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Customs
IGST
CGST + SGST
IGST
CGST + SGST
IGST
CGST + SGST
Illustrative Impact to
Real Estate Sector
Import of material
Domestic Material
Capital Goods
CGST
SGST
Stamp Duty
GST Regime
IGSTSupply of Services
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Product Features
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Key Features
GST BUILDER
Inbuilt tax complexities
Project-wise Prot analysis Pre-GST and Post-GST
Real-time push of updates in GST by central team
Pre-dened transactions mapped to taxes - Pre and Post GST
User interface to add new transactions, taxes to assess impact
Pre-determined credit eligibilities Pre GST to carve out the hidden tax inefciencies
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Sub-contractors Module
Collections Module
Inventory Transitional Provision Module
Vendor/ Contractors Negotiation Module
Special Modules Analytics
Income report
Tax Credit Comparison
Tax Liability Comparison
Tax Code Wise GST Impact Report
GST BUILDERwww.gstbuilder.com
Decision Simulator Technology
Sales Price determination
Multiple GST Roll out dates
Discounts from vendors/ contractors
Changes in timing of projections
MS excel based product
�Best in class� user experience
Transaction data hosted locally
Online tax masters
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PRODUCT Functionality
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INPUT VALIDATION LAYER
LOGICAL LAYER OUTPUT
Basic configurations
Historic Project data
Forecasted Project data
Method of valuation opted under VAT and ST
Collection details and tax exempt amounts
Validation of pre-defined and auto populated Masters
Align existing accounting with Chart of accounts
Ensure accurate assignment of old taxes with Chart of accounts
Ensure correct mapping of GST taxes with Chart of accounts
Carve out tax inefficiencies recorded as costs in current regime
Identify eligible credits under both regimes
Determine the tax liability under both regimes
Determine tax impact on profit before and after GST
Project profitability comparison
Drill down reports
Business Simulations
Changes to tax rates and GST roll out dates
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Basic Configuration
For New Project
A unique project ID will be created based on the above selection. All Masters are defined for each of the above combinations.
Category
Project Name
State
Client
Tax scheme combination
Input Details
Name
Name
Type - Developer or contractor.
Applicability of VAT and service tax.
Need for Defining
Project Level and not Company Level
Complex and varying state taxes
Varying business models
Multiple combinations under VAT and Service Tax
Existing Constraint
N.A.
Lack of expertise
Multiple transactions
Rigid Structures
Our Expertise
N.A.
Multi State Tax Experts on our panel
Experience of tax optimisations for all types of clients
Simplification of tax positions
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Category Input Details Need for Defining Existing Constraint Our expertise
Category 1
Category 2
Tax elements
Tax code
Nature
Exhaustive transactions lists
Taxes and rates
Combination of tax elements
Macro Analysis
Lack of Standardisation
Multiple Indirect Taxes
Series of Combinations
N.A.
Time Consuming
Constant changes
Innumerable theoretical options
N.A.
Industry specific nomenclature
State wise updated tax repository
Concise and Practical Options shortlisted
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Category Input Details Need for Defining Existing Constraint Our expertise
Chart of accounts
Inclusive/ Exclusive
Credit Eligibility
Trader margin
Standard Labour deduction rate
Tax codes assignment
Accounting Perspective
0 – 100%
% of trader margin.
% of Labour element
One to One mapping
Identifying hidden taxes
Profit Impact Assessment
Cascading of Taxes
Aspect Theory
Chances of Errors
Lack of user awareness
No stable formula across the country
Unknown factor
Complex Interplay of Multiple Factors
Pre-defined mappings
Pre-defined modifiable mappings
Pre-defined modifiable mappings
Accuracy
Pre-built
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Project profitability under Old Regime
Remove all hidden taxes
Determine the basic values
Calculate trader margins in determining excise transfer from trader
Adjustment for labour cost under WCT
Tax Credit positions earmarked
Arrive at the project profitability based on past and forecasted data for current regime
Project profitability under GST Regime
Adjustment Factors
Collections from customers - forecasted, exempted collections
Sub-contractor Deductions
Vendors discounts post GST
Transitional provisions under GST
Supplies without consideration
Blocked Credits
LOGICAL LAYER
Assign CGST, SGST and IGST to chart of accounts
Apply GST rate on basic cost determined above
Split the forecasted value based on the GST rollout date in pre-GST and post-GST forecast.
Calculate the taxes and profit impact under Current regime for "Pre-GST" forecasted values
Calculate the taxes and profit impact under GST regime for "Post-GST" forecasted values
Calculate the project profitability based on past data and forecast under GST regime
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Reports And Simulations
Data Level Reports:
Chart of accounts with basic price with taxes calculated under both regimes Summary of Tax Credits under both regimes Summary of Tax Liabilities under both regimes Transitionary provisions impact
Analytical Reports:
Project profitability comparison Monthly cash flow comparison Tax code level comparison [Old tax code and GST]
Simulations:
Determination of sales price by maintaining the same profit
GST impact with change in GST roll out date Changes to Discounts of vendors/ contractors Change in timing of projections
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Additional user @ Rs. 5,000 plus ST* Service tax at actuals
Users � No. of machines for installationsProjects range � No. of projects for GST impact assessment
**One developer/ contractor may have multiple projects. Each project needs to be purchased separately.
Without Sensitivity Analysis
With Sensitivity Analysis
Projects** Standard*Rs. Per Project
Premium*Rs. Per Project
1
2
4
1-4
5-10
11+ Projects
29,500
26,500
23,500
35,500
32,000
28,500
No. of users User
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License based product
License restricted to number of projects created
License restricted number of users
Usage restricted to the MAC ID of desktop/ laptop
where license is activated
Restrictions on change iterations to base data
Masters are hosted online and pulled one time
for offline use
Highest security to logical layer source code
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PRODUCT Screenshots
Actual product may slightly vary from the screenshots.
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Configure Project
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Map Your Financials
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Input Process � Financials
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Input Process � Projections Break Up
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Input Process � Tax Positions
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Input Process � Mapping All Masters
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Compute TAX
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Sample Report � Impact of Anti-Profiteering Clause on Basic Pricing
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Masters Management
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Sensitivity Analysis
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WHO WE
AR
E ?
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www. consultconstruction.com www.sciffer.comwww. ankekshan.com
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