India is ready for GST, are you? Know every thing about GST here and stay updated to avoid any loss.
- GST is now on the path to be implemented from July 1st, 2017.
- Types of taxation in GST
- IGST : Integrated GST
- CGST : Central GST which with replacement CST
- SGST : State GST which will replace VAT
- WEF from June 1st, 2017 : Migration towards enrolment of GST will start till June 1st, 2017.
- Registration certificates will be issued online
- 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.
- 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
You cannot file revised returns at all. Once filed on 20th is final.
- Tax payments will be accepted only by e payments. Tax Payments via credit & debit card also added.
- In the present VAT system you upload sales & purchases every Quarter. In GST you have to upload every sale & purchase bill every month.
- Be careful , every thing in GST is system driven. Once uploaded you cannot revise anything. No officer can help you in this. They can only pity the mistake!!!
- Your firm rating will be done by the system. Based on the rating audit trials will be conducted.
- Proposed e-sugam for ₹50,000 & above value only.
- Proposed rates of GST in percentage are 0, 5, 8 , 12, 18 , 28 & 40
- 1st time in the history of independent India 4 major category of businesses will be covered : Education, Textiles, Medical & Professional services.
- You need to submit 17 documents for migration to GST.
- Most products MRP to come down.
- Distribution and C&F channel under threat of becoming redundant
- 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 a shop for ₹30000 & return back your old TV in exchange for ₹4000, you have to pay tax on ₹34000.
- All movements of material will be taxable like : Head office to branch office (stock transfer), factory to C&F agent, godown to shop.
- All books & records to be maintained on daily basis.
- 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, flavour, ingredients etc) Then Patanjali has to pay tax on ₹150.
- You will need a full time accountant in your shop/office to maintain books under GST.
- All travel & tour expenses related to business have to be claimed under firm name.
- If your vendor does not upload his bills within 180 days , you will not get tax credit.
- You cannot claim credit for material in stock beyond one year.
- They propose that You have to dispose all your old stocks purchased under VAT/CST within September 2017.
- All VAT related documents like C forms, F forms etc have to be cleared within Sept 2017.
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