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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

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