GST – Important Points
*Certain important points to be noted in respect of GST:
1. # GST will 100% be implemented on 01-07-2017
2. # Types of taxation in GST
3. IGST : Integrated GST
4. CGST : Central GST which with replacement CST
5. SGST : State GST which will replace VAT
6. # WEF from 01.06.2017 : Migration towards enrolment of GST will start till 15.06.2017
7. # Registration certificates will be issued online.
8. # 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.
9. # 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.
10. # Tax payments will be accepted only by e payments. Tax Payments via credit & debit card also added.
11. # In the present Vat system you upload sales & purchases every month. In GST you have to upload every sale & purchase bill.
12. # 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.
13. # Your firm rating will be done by the system. Based on the rating audit trials will be conducted.
14. # Proposed e sugam for ₹50000 & above value only.
15. # Proposed rates of GST in percentage are 0, 5, 8 , 12, 18 , 28 & 40.
16. # 1st time in the history of independent India 4 major category of businesses will be covered : Education, Textiles, Medical & Professional services.
17. # You need to submit 17 documents for migration to GST.
18. # Most products MRP to come down.
19. # Distribution + C & F channel under threat.
20. # 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.
21. # All movements of material will be taxable like : Head office to branch office (stock transfer), factory to C & F agent, godown to shop.
22. # 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.
23. # All books & records to be maintained on daily basis.
24. # You will need a full time accountant in your shop/office to maintain books under GST.
25. # All travel & tour expenses related to business have to be claimed under firm name.
26. # If your vendor does not upload his bills within 180 days , you will not get tax credit.
27. # You cannot claim credit for material in stock beyond one year.
28. # They propose that You have to dispose all your old stocks purchased under VAT/CST within September 2017.
29. # All VAT related documents like C forms, F forms etc have to be cleared within Sept 2017.
30. # Your Vat credit will not be carry forwarded to GST.