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Reallocation of Job responsibilities

As VAT / Excise / Service tax is subsumed into GST,the return is consolidated into one and needs to be filed monthly (Purchase return & Sales return, Final consolidated return). The main activity is narrated as follows.

1) Responsibility for Return filing & tax computation with workings

2) Generation of customized purchase report for CGST / SGST / IGST with the classification of requirement filed

3) Generation of customized sales report for CGST / SGST / IGST with the classification of requirement filed

4) Monthly reconciliation between report & GL before return filing ( all payables GL )

5) Ensure the Input tax credit Receivables as per the return & Books should be same.

6) If credit is disallowed due to non-payment of Tax by the supplier, monthly Tracking & follow-up.

7) List of defaulters to be circulated on monthly basis & send mail to block those suppliers in SAP.

(Defaulters in non-payment of tax, list of defaulters published by department)

Accounts Department – Reconciliation of Input Tax Credit / Cenvat Receivables between Return & Books of accounts

1) All GR/IR needs to be closed on or before return filing for the month of Mar-17 under the existing Act.

2) Detailed Reconciliation of Input tax credit receivables needs to be verified with the return & books.

3) Collection of pending Import invoice & Pending CVD details in order to include the March-16 month return.

4) Preparation of transition entries for CENVAT &input tax credits at the time of closure of Books under existing system.

IT Support

1) Deactivation of Existing GL in FI Module

2) New Ledger Creation (At present 6 GL)

3) Invoice wise customized report for credit  ( Purchase / sales register , ITC Register )

4) List of Scheme of entry to be passed monthly with responsible person name

5) Fixing appropriate condition in MM for purchase module

6) Fixing appropriate condition for sale of product in Supply chain module

Identification of Exempted Credit which is allowed under GST

Hither to certain credit is not allowed, now the same will be entitled for credit under GST regime

1) Those credit need to be identified & listed

2) Ascertaining the WIP / Closing stock lying at the year end

3) Work out the credit portion pertaining to the closing stock through appropriate method

4) Get permission from the Tax authority to avail the credit lying with closing stock

Discussion points with Purchase department

1) Educate purchase department to procure as much as from registered vendors. To avoid later litigation. ( comparatively the price will be high while purchasing from unregistered dealer as he could not avail the credit )

2) Educate to understand the input tax credit wherever not allowed (after rules) by Accts Dept

3) Ensure not to purchase from the tax defaulted parties  ( Default party list will be circulated by the accounts department on monthly basis)

4) Master data updation with GST number / PAN number / Address.

Discussion points with marketing department

1) Tax needs to be charged to the sale of SEZ unit ( but final confirmation will be known after rule )

2) Educate to understand the tax incidence with percentage (after rules) by Accts Dept.

3) Provide the product code (HSN) to the marketing department by Accts Dept.

4) Master data updation with GST number / PAN number / Address.

Stores Department

1) The invoice needs to be forwarded as and when the GRN is accounted, this will enable the Accounts Dept to avail credit immediately & assist to working capital.

2) Identify wherever the credit is not allowed which needs to be included in the cost of inventory at the time of GRN  (SAP needs to be customized with help of IT Dept )

Discussion points with HO

1) If petroleum product is excluded from GST, what about the credit on this?

2) The Input tax credit receivable account is debited at the time of invoice booking whereas the data captured for purchase register is based on the GRN details, this leads to difference between return & books.

3) Further, what is point of credit? If point of credit is based GRN? , Can we create one more GL like GST suspense account in order to ensure that always the books amount should match with Return?

4) Likewise, customized purchase register needs to be created based on the credit point decided?

5) What would be the method to avoid tax mismatch impact on sale/purchase of goods due to GIT?

6) What is the cut of date to avail the credit on the previous year invoice?

7) Treatment for sales made during current regime and sales return in GST regime?

8) Tax treatment for goods lying with job-worker premises?

9) What is the treatment for goods in transit as on transition data?

Regards – Venkatesan

GST on Transportation Services in India

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April 2024