Things you must know about GST
Certain important points to be noted in respect of GST:
1. GST will be 100% implemented on 01-07-2017
2. Types of taxation in GST
IGST : Integrated GST
CGST : Central GST which with replacement CST
SGST : State GST which will replace VAT
3. WEF from 1.6.17 : Migration towards enrolment of GST will start till 15.6.17
4. Registration certificates will be issued online.
5. 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.
6. 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.
7. Tax payments will be accepted only by e-payments. Tax Payments via credit & debit card are also added.
8. In the present VAT system, you upload sales & purchases every month. In GST you have to upload every sale & purchase bill.
9. 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.
10. Your firm rating will be done by the system. Based on the rating audit trials will be conducted.
11. Proposed e sugam for Rs.50000 & above value only.
12. Proposed rates of GST in percentage are 0, 5, 8 , 12, 18 , 28 & 40.
13. 1st time in the history of independent India, 4 major category of businesses will be covered : Education, Textiles, Medical & Professional services.
14. You need to submit 17 documents for migration to GST.
15. MRP of most products to come down.
16. Distribution + C & F channel under threat.
17. All these categories which were not taxed will now be taxable : Replacements/ return goods, Barters , Free Samples, disposables, scrap material. For ex : if you buy a 40 inch led TV from Girias for Rs. 30000 & return back your old TV in exchange for Rs. 4000, you have to pay tax on Rs. 34000.
18. All movements of material will be taxable like : Head office to branch office (stock transfer), factory to C & F agent, godown to shop.
19. All books & records to be maintained on daily basis.
20. You will need to maintain regular accounts of your shop/office under GST.
21. All travel & tour expenses related to business have to be claimed under firm name.
22. If your vendor does not upload his bills within 180 days, you will not get tax credit.
23. You cannot claim credit for material in stock beyond one year.
24. They propose that You have to dispose of all your old stocks purchased under VAT/CST within September 2017.
25. All VAT related documents like C forms, F forms etc have to be cleared within Sept 2017.
26. Your Vat credit will not be carry forwarded to GST.