5 Steps For Successful Implementation of GST by any Business Entity

2. ERP Systems: ERP team shall be part of discussions for smooth changeover and should identify the areas / processes requiring changes. It shall be ready for the complications arising out of partial implementation of GST in the country.

• Should facilitate state-wise trading account
• CGST and SGST on each transaction to be accounted separately with linkage to state of origin and IGST with linkage to state of destination (Since IGST goes to importing state based on destination principle) as well as state of origin (since there is an additional levy of not exceeding 1% which goes to the originating state )
• Capturing credit of CGST, SGST and IGST separately state wise on the purchases
• Automatic setoff and determination of tax liability
  

3. Business Process Reengineering: Business performance needs to be improved by Re-engineering the business processes at the earliest basis to take the full advantage of GST

• Procurement: In the light of implementation of GST, Cost of procurement shall be minimized by optimizing and consolidating supplier location and base by exploring the option of Indigenous Vs. Import Parity or Local procurement Vs. Procurement from outside state as the case may be. Suppliers/ Service Providers shall be aligned according to the sourcing strategy.
  

• Manufacturing: Review the manufacturing strategy for alignment with GST and phase out of incentives in the near term. Account for ITC at every point of purchase and integrate with ERP system. Possibility of differential tax base for some time.
  

• Distribution: Re-aligning depots & Infrastructure to leverage on  technology and minimize the cost of distribution. Levy of GST on stock transfers needs to be addressed. Review C&FA, Transportation and other service and rental contracts to build in ITC benefit and changed operating conditions
  

• Sales: Review sales agreements for margins etc and align the network of stockists with company sales and distribution system. Support the sale partners on IT and GST compliance i.e Infrastructure and training. Examine and evaluate the likely impact of GST rates on various category of goods / service in the context of improved ITC benefit, exemptions and pricing of the products shall be GST efficient
  

4. ENROLLMENT & REGISTRATION:

• NSDL has been appointed to incubate the GST Portal and develop the functionality. NSDL has created a pilot portal for implementation of GST known as “GST Pilot Portal”
  

• In the proposed GST regime, every tax payer or business entity will be issued a 15 digit common identification number which will be called as “Goods & Service Tax Identification Number” (GSTIN) a PAN based number

• The portal will have a web based enrolment facility for the new dealers. The GST system will have an online application form for dealers to provide their details and upload certain specified documents

• SIX EASY STEPS FOR REGISTRATION

1. Enrolment
2. Login
3. Dealer Home Page
4. Initiate New Registration
5. Fill-in Registration Application Form
6. Submit Registration Application Form

• Enrolment: Any dealer expecting to register under GST should first ENROL himself in the enrolment page
  

• Login: Users can login only after completing “Enrolment” process. Users can enter Registration Application by submitting “User ID” and “password” received in his registered E-mail ID after Enrolment process is completed.
  

• Documents: Keep PAN, existing registration numbers like Central Excise Numbers, Service Tax Numbers, Import & Export Number, Corporate Identity Number, Professional Tax Number, Shops & Establishment Number and any other state specific registration numbers, contact numbers, postal address & E-mail address of business entity, bank account details including MICR code, place of business, details of goods & services , scanned signed photographs of the prescribed persons,
  

5. LIASON WITH GOVT

• Engage with Govt. for specific business related issues and tax classifications

• Uniformity of law, procedures, formats, classification and valuation

• Re-dressal of issues arising out of GST (e.g. GST on inter-state stock transfers)