25 Points Which Helps You To Know, Whole Concept Of GST

GST, Goods And Service Tax

As we know Goods and Service Tax (GST) will 100% be implemented on 01-07-2017. Here are some point which help you to understand the whole concept of GST.

  1. Types of taxation in GST:-

IGST : Integrated GST

CGST : Central GST which with replacement CST

SGST : State GST which will replace VAT

  1. WEF from 1.6.17 : Migration towards enrolment of GST will start till 15.6.17
  2. Registration certificates will be issued online.
  3. There will be no check post for 1 year. Only mobile check posts will be in full force. All intelligence officers will be dormant for sometime.
  4. 5 forms on different dates have to be submitted every month:

*R1 form on 10th

*R2 form on 13th

*R3 form on 15th

*R4 form on 17th

*R5 form or final returns on 20th

  1. You cannot file revised returns at all. Once filed on 20th is final.
  2. Tax payments will be accepted only by e payments. Tax Payments via credit & debit card also added.
  3. In the present Vat system you upload sales & purchases every month. In GST you have to upload every sale & purchase bill.
  4. Be careful, everything in GST is system driven. Once uploaded you cannot revise anything. No officer can help you in this. They can only pity the mistake.
  5. Your firm rating will be done by the system. Based on the rating audit trials will be conducted.
  6. Proposed e-sugam for ₹50000 & above value only.
  7. Proposed rates of GST in percentage are 0, 5, 8, 12, 18, 28 & 40.
  8. 1st time in the history of independent India 4 major category of businesses will be covered: Education, Textiles, and Medical & Professional services.
  9. You need to submit 17 documents for migration to GST.
  10. Most products MRP to come down. Distribution + C & F channel under threat.
  11. All these categories which were not taxed will now be taxable: Replacements/ return goods, Barters, Free Samples, disposables, scrap material. For example : if you buy a 40 inch led TV from Girias for ₹30000 & return back your old TV in exchange for ₹4000, you have to pay tax on ₹34000.
  12. All movements of material will be taxable like: Head office to branch office (stock transfer), factory to C & F agent, godown to shop.
  13. The GST officer has all rights to value your goods & fix the price. The law will decide Valuation of the product at various levels like: Manufacturing, Wholesalers, Distribution & retailers. For example if Kissan is selling Jam for ₹150 & Patanjali is selling the same Jam for ₹120. (Same quantity, flavor, ingredients etc.) Then Patanjali has to pay tax on ₹150.
  14. All books & records to be maintained on daily basis.
  15. You will need a full time accountant in your shop/office to maintain books under GST.
  16. All travel & tour expenses related to business have to be claimed under firm name.
  17. If your vendor does not upload his bills within 180 days, you will not get tax credit.
  18. You cannot claim credit for material in stock beyond one year.
  19. They propose that you have to dispose all your old stocks purchased under VAT/CST within September 2017.
  20. All VAT related documents like C forms, F forms etc have to be cleared within Sept 2017. Your Vat credit will not be carry forwarded to GST.

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