Are we prepared for GST?
Goods and Service Tax (GST) is considered to be one of the biggest
Indirect Tax reforms in India. GST subsumes various Indirect taxes as
applicable at present in India viz., Excise duty, Service tax, VAT, CST,
Luxury tax, Entry tax, Octroi, Purchase tax etc. The GST bills (CGST, UTGST,
IGST and Compensation to States) with intention to achieve the objective
of "One Nation One Tax".
At the same breath the said Bills has
received the presidential assent and the relevant final rules are expected
to be notified shortly. Based on the current progress, July 1st appears a
realistic date for roll-out of the GST law.
Underlined are the gist of rudiments required
towards GST implementation:
Transitional
Management:
§ How
to make sure all the eligible input credit of tax have been availed in the
last return
§ Strategy
on the inventory to be held on 30.06
§ How
to make sure transitional claim on Goods in transit as on the date of
implementation of GST
§ How
to comply anti-profiteering clause
§ Re-look
into the long term and short terms contracts - impact of tax during
transition; revision in terms and conditions
§ Benefit
of price reduction from eligible vendors
Outward Supply of
Services/goods:
§ Re-look
into the current supply chain format. Initiate, if any changes required
§ Analysis
of tax impacts on free sample
§ Review
on valuation of supplies in case of where same taxable supply of services
provided to 2 different distinct persons
§ Review
on valuation of goods / services in case of stock transfers, disposal, staff
welfare etc
§ List
out the services to cross charge from one branch to another
§ Analysis
of non sale transactions and provision of services to know the impact of GST
Input Tax:
§ Identification
and availing eligible Input Tax credit in the GST portal
§ Amendment
in Purchase Order terms and conditions
§ Input
service distribution of common input services
§ Re-look
into the facilities provided to employees - exigiblility of GST
Integration of ERP
Software and change in current format:
§ Accounting
software compatible to integrate to GSP's and API's; provision of details of
exempted services and taxable services in the GST return; classification of
goods and services based on HSN and SAS respectively; change in invoice
format for taxable services / goods and exempted services; change in the
method of accounting; change in maintenance of ledger accounts;
reconciliation between books of account and the returns
§ Filing
of monthly statement / return; identification of eligible and ineligible
input tax credit in the GST portal; filing of annual return; compliance
rating under GST based on maintenance of record of compliance with the
provision of law
Training staff:
§ Change
in law need to comply the certain procedural aspects; change in formats;
changes in accounting methods; changes in compliance; changes in maintenance
of records etc,. therefore it is essential that staffs are well trained
Others:
§ Closure
of current indirect tax disputes which are open before the tax authorities
|
For more details
Kiran Kumar S A
CHAMS
Consultancy
#8/A,
2nd Floor,
1st Cross,
2nd Phase J P Nagar,
Bangalore
– 560078
Mobile
: +91 94811 80809
| kiran@kiranca.com |
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