Basics to implement GST in company

GST Applicability

• Threshold limit for exemption to be Rs. 20 lakh for state supply.

(Rs. 10 lakh for special category States)

• Compounding threshold limit to be Rs. 75 lk (50 lk*) –
  • not available to inter-State suppliers,
  • service providers (except restaurant service) &
  • specified category of manufacturers
• Government may convert existing area based exemption schemes into reimbursement based scheme.

GST Portal features (gst.gov.in)

• Registration of Tax Payer and Tax Consultant
• Returns (GSTR1 uptoGSTR12)
• Payments
• Ledger Maintenance
• Miscellaneous

For Tax professionals

• Consolidated view of all clients
• Ability to upload invoice data etc. from his dashboard
• Get update on their taxpayers from GST System.

Some important GST returns

FORM	PARTICULARS	DUE DATE
GSTR – 1	Outward Supplies	10th of next month
GSTR – 2	Inward Supplies	15th of next month
GSTR – 3	Monthly Return	20th of next month
GSTR – 4	Compounding Taxpayers Return	18th of next month next to the Quarter
GSTR – 5	Non-resident Taxpayers Return	Within 7 days of the last day of registration
GSTR – 6	Input Service Distributors Return	13thof next month
GSTR – 7	TDS Return	10thof next month
GSTR – 8	E-commerce	10th of the next month
GSTR – 9	Annual Return	31st Dec of next F.Y.
GSTR – 10	Final Return	Applicable for cancellation of registration

 

Fundamental Changes from Existing to new Tax Regime

• Revision of information post tax returns and invoices post transaction is permitted in any next return

 

• Changes in Tax liability / ITC amount to be handled through

1. Debit- Credit Notes
2. Revision of supply invoices
3. Post sales discount
4. Volume discount
5. Amendments / Corrections

How to adjust the Credit?

Setoff of IGST, CGST & SGST will be as follows in the below mentioned chronological order only.

GSTR-1 : Submission Level

  

Matching cannot be done for ITC/ Output Tax Liability

If the supplier

1. Has not paid the tax and / or
2. Not filed the return on or before the due date (or extended due date, if any)
3. The return filed by him is not a valid return

 

What impact GST will have on pricing of products as compared to current scenario?

Let us take an EXAMPLE to understand this clearly.

In the above example, you can note that the tax paid on sale within state can be claim against tax paid on sale outside state in GST system, which is not in present tax system.

The credit of CGST cannot be taken against SGST and credit of SGST cannot be taken against CGST but both credits can be taken against IGST.

For India GST, the following is the format for the India GST number that contains the Indian State Code, the Indian PAN number and the other values.

State Code		PAN										Entity  Code	Blank	Check Digit
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15

 The list of India State Codes for GST reporting

State / UT Code	State /Union Territory Name	State / UT Code	State /Union Territory Name
01	Jammu & Kashmir	20	Jharkhand
02	Himachal Pradesh	21	Odisha (Formerly Orissa
03	Punjab	22	Chhattisgarh
04	Chandigarh	23	Madhya Pradesh
05	Uttaranchal	24	Gujarat
06	Haryana	25	Daman & Diu
07	Delhi	26	Dadra & Nagar Haveli
08	Rajasthan	27	Maharashtra
09	Uttar Pradesh	28	Andhra Pradesh
10	Bihar	29	Karnataka
11	Sikkim	30	Goa
12	Arunachal Pradesh	31	Lakshadweep
13	Nagaland	32	Kerala
14	Manipur	33	Tamil Nadu
15	Mizoram	34	Pondicherry
16	Tripura	35	Andaman & Nicobar Islands
17	Meghalaya	36	Telangana
18	Assam	37	Andhra Pradesh
19	West Bengal

Regards

CA Shashank Agrawal