Join Online GST Certification Course by TaxGuru & GST Professionals
B. C. Guru Swamy
All the Stake holders of GST
At last waiting since year 2000, the GST has reached our door steps and the only option available with all of us is to welcome with love or hate on 01.07.2017 on the seventieth year of Indian independence.
Till yesterday we were reading, watching you tubes, and attending seminars, interpreting the law of GST.
Now the time has came to execute it. And the celebration and preparation to welcome GST is in full swing as only country in the world having a federal set up is introducing a dual GST and the whole world is looking at us.
Friends let us welcome with a positive mood, praying God to give whatever he wants but with a condition of blessing with those gifts.
Let us note the points for facing the war
ACTIONS TO BE DONE BEFORE 30.06.2017
1. Get provisional ID/Migrate before 30.06.2017 as per Sec.139 of GST Act,2017
2. Take stock inventory as on 31.03.2017 and 30.06.2017
3. Remove/sell fictitious stocks if any in the books
4. Keep book stocks and physical stocks matching
5. Sell out if the rate of tax of goods you are dealing in is higher in GST regime than existing taxation laws.
6. If GST rate of the goods you are dealing in is lower than the present rate then maintain proper stocks in hand to avoid applicability of Sec.171 of GST (Anti profiteering clause)
7. Sell out holding stock of purchases made prior to 30.06.2016 by offering discounts
8. Get statement of accounts of both seller and buyer and reconcile
9. Check Bank transactions with your purchases and sales of period upto 30.062017
10. Revise your VAT & Entry tax returns if necessary
11. File returns under existing law upto 30.06.2017
12. Allocate stocks into rate wise and HSN code wise
13. Ensure collection of statutory forms upto date(From C,E,E-1,E-II,F,H & I)
14. Obtain GST no of all your buyers and Sellers
15. Issue debite note/credit note if any to settle dispute with your sellers and buyers prior to 30.06.2017
16. Make payments for expenses prior to 30.06.2017
17. Make a chart of goods and services your are providing and receiving with eight digits code
18. If you are buying goods from un registered persons/or making inter state sale, it is mandatory to get registered immediately irrespective of your aggregate turnover-Sec.24 (1) & (3)
1. Get ready printed serially numbered Tax invoice/ Bill of Sale or keep ready suitable software as per Rule 7 of GST
2. Get ready printed Receipt Voucher to discharge GST on Advance receipts
3. Get ready printed Refund Voucher to return the advance received
4. Get ready printed Payment voucher to discharge the GST on RCM basis u/s.9 (4) of GST and then raise a suitable tax invoice for the same.
Tax invoice can be printed in the formats which suits to the supplier of goods and services but should not forget to mention the following twelve conditions
1. Name of Supplier
2. GST No.
3. State of code of supplier
4. Tax invoice no.
5. Date of issue of tax invoice
6. Time of supply
7. Place of Supply
8. Buyer name,place of supply,GST No and State Code
9. Receiver of goods name,Place of Supply,GST No and State code
10. Reverse charge if any applicable a column for getting signature of supplier.
10. Qty,Units,Rate per unit
11. Applicable rate of CGST/SGST/IGST/UTGST and Cess if any
12. HSN code of Goods and Services supplied.(Though it is not mandatory for a supply of goods of a turnover less than 1.5 crores, However it is advisable to mention to keep classified stocks for better management of business and to avoid wrath of notice of babus after their visits to the business premises.
HSN CODE/SAC CODE: (Harmonised Systamatic Nomenclaure)SAC-Services accounting codes
|Aggregate Turnover less than 1.5 cr||HSN/SAC not mandatory|
|Aggregate turnover 1.5 cr to 5 cr||HSN upto 2 digits is optional. Not required for the first year (2017-18) However is SAC is mandatory|
|Aggregate turnover is more than 5 cr||4 digits, SAC is must|
COMPOSITION DEALER-Sec.10 of GST Act,2017
As per Sec.10 of GST Act,2017 a supplier of goods (Other than a Contractor and a restaurant providing services of supply of alcohol) whose turnover in the preceding F.Y. under previous law is less than 75 lacs can opt for composition scheme with further following conditions.
1. He should not be in possession of inter state purchased goods as on 30.06.2017
2. He should not be in possession of purchases of goods purchased from unregistered suppliers as on 30.06.2017
3. He should not collect the Tax and he should raise only a Bill of sale
4. He should not sell the goods inter-state
5. It is mandatory to mention in the bill of sale as “COMPOSITION DEALER”.He should also display the Board in the business premises as “COMPOSITION DEALER”
6. It is mandatory to mention all the parameters of Tax invoice excepting Tax particulars(CGST/SGST/IGST/UTGST and CESS)
7. He should bear the cost of supply of goods and services supplied by a unregistered supplier. U/s. 9(4) of GST Act,2017
8. If holding stock of goods supplied by a unregistered supplier as on 30.06.2017, tax on RCM basis to be discharged and which is not eligible for ITC
9. Composition dealer is not eligible for any kind of ITC either of current taxation regime or under GST regime
10. It is not possible to register one entity in different verticals i.e. one in composition scheme and another one in one with regular GST with one PAN in one State.
11. The GST council also have the power to restrict certain manufactures availing composition scheme for ex.Pan masala, edible ice etc.,
12. It is also not permitted to avail composition scheme by a service provider.
13. Different rates of tax have been fixed details as below
(a) Traders-1% (.5+.5)
(b) Manufacturers-2% (1+1)
(c) Others-5% (2.5+2.5)
12. Registered persons under composition scheme are required to file quarterly return under GSTR-4 on or before 18th succeeding quarter-Sec.39(2)
13. Every registered person under composition also require to file annual return under GSTR-9 on or before 31st December of the succeeding year.-Sec.44
14. Further registered person opted composition scheme is not required to submit outward/inward supplies.
III.TRANSITION ISSUES-Sec.140 of GST Act,2017
Sec.140 and sub clauses provides for transition issues.
1. Manufacture and Service providers already registered under existing central laws having a closing balances of cenvat credit are eligible for full ITC
2. Manufacturer and Services providers already registered under existing central laws having a balance of un-availed cenvat credit on capital goods are eligible of cenvat credit not availed earlier.
3. Manufacturers and services providers supplying exempted goods/services under existing laws (not liable to be registered under existing central laws)holding stocks of inputs (held as inputs/semi-finished goods/finished goods)to be used for making taxable supplies where duty paid invoices are available is eligible for amount of duty paid as per available duty paid invoices.
4. Trader (not liable to be registered under existing central laws) holding stocks of inputs finished/semi finished inputs to be used for making taxable supplies where duty paid invoices available are eligible for ITC of amount of duty paid as invoice details submitted through Trans-1
5. Trader (not liable to be registered under existing central laws) holding stocks of finished/semi finished goods as inputs to be used for making taxable supplies where duty paid invoices are NOT available is eligible for ITC as discussed below
In case of Intra-State supplies-
(a) 60% of the Cenrtal tax paid where the goods are subjected to GST 18% or 28%
(b) 40% of the central tax paid where the goods are subjected to GST 5% or 12%
IN CASE OF INTER STATE SUPPLIES
(A) 30% of the integrated tax paid, where goods are subjected to tax at 18% or 28%
(B) 20% of the integrated tax paid, where goods are subjected to tax at 5% or 12%
SUBMISSION OF GST-TRANSITION FORMS
(1) Time limit for submission of GST-TRANS is on or before 28.08.2017 (60 days from the appointed date of GST) or as per the extended time provided by the Commissioner.
(2) For Sl.No.5 GST-TRANS-2 is to be submitted at the end of each of the first six months.
Expressing the technical difficulties the council has deferred issue of e way bill for another four moths however it was made mandatory to continue to raise e way bill of the respective States where the taxable value of goods exceeds Rs.50000/-
It was also made mandatory to carry the goods carrying vehicle a RFID (Radio frequency identification number)
1. GST Council has announced interim period and accordingly provided a provision for submission of provisional return under GSTR 3B (a summary of outward/inward supplies and tax payable particulars) for the month of July & August,2017.Which is to be submitted for the month of July,2017 on or before 20.08.2017 and for the month of August,2017 on or before 20.09.2017.
However the GSTR-3 should be filed for the month of July,2017 on or before 05.09.2017 and for the month of August,2017 on or before 20.09.2017
SUBMISSION OF OUTWRD/INWARD SUPPLIES-Sec.38 & 39
1. Supplying registered person has to submit his outward supplies under GSTR1 on or before succeeding month which auto populates and appear as GSTR-2 on eleventh day in receiver portal-Sec.146.
2. Receiver after downloading and comparison if needs for correction will return back to his supplier which auto populates and appear as GSTR-1A in suplplier portal.After due correction if required he will once again submit GSTR-1.The same has to be completed on or before 15th of succeeding month.
3. Secondly receiver (buyer)if he founds it (GSTR2) is in proper he will submit his GSTR2 before 15th of preceding month.
3. Buyer(after submission of his outward supplies) and after submission of GSTR2 he will generate GSTR3 which is monthly return and the same has to be submitted on or before 20 of the preceding month.And discharges his tax liability (cross utilization of CGST with SGST is not permitted) either by utilising available ITC i.e. electronic ledger or through cash ledger.
It is advisable to engage a full time accountant as under the GST regime doing business is totally different from the present.Futher under GST regime the Burden of proof (Sec.16 & 17) is on the person who avails the ITC.Hence it necessitates him to interact with his suppliers and buyers on day to day or on hourly basis.
Secondly GST is not accounting and reporting of your sale (supplies)like in the present regime. Registered person is liable for discharging the tax on RCM method for availing services from a un registered person.Sec.9(4) is one of the most dangerous section under GST.
For instance you have purchased stationery from unregistered person and not raised tax invoice and admitted in GSTR-1 later on noticing of the same by the Dept.you will loose the credit of the same and simply to discharge with out ITC.
Wherefore it is advisable to engage a registered GST Tax Practitioner, paying professional fee with love is rather better than paying huge interest and penalties on visit of Babus to your business premises after a good sleep.
Hope for the best and wishing you a good luck.