The Goods and Service Tax (GST) bill, believed to be a significant reform in the Indian taxation system, is definitely a move closer to Digital India. Since the announcement, the bill has kept corporates and the accounting community busy with trying to figure out its impact. Here is a point wise action plan to help you take a holistic view of your GST compliance process and plan for the implementation:
Steps to be taken as action plan for GST:
- Getting registered as GST Taxpayer i.e. Registering your business
- Meeting GST Compliance Requirements
- Filing Tax Returns
- Issuing Tax Invoices
- Accounting for GST i.e. Updating your accounting/ ERP Systems
- Offences
- Claiming GST Refunds
- Input Tax Credit Mechanism
- Assessing the impact of GST on Business Processes
Getting registered as GST Taxpayer i.e. Registering your business:
- The GST enrollment shall be done on https://www.gst.gov.in/.
- For every service tax assessee, there is a separate log in. The password of the website through which they manage their records by log in into aces.gov.in. Once you log in into your account, you will be able to get your provisional ID and password for the GST enrollment.
- You must have the following information available to you:
–Provisional ID
–Password
–Digital Signature
–Valid email Address (it should not be off professional – Use your own email ID)
–Valid Mobile Number
–Bank Account number, IFSC code, Branch details
–Proof of constitution of business
–Photograph of promoters
Meeting GST Compliance Requirements:
- Preparation of accounting records and accounts
- Preparation and lodgement of business and instalment activity statements & GST Returns
- Considering GST laws, GST Rules, Tax rate structure including Compensation Cess, Classification of goods and services into different rate slabs, Exemptions, Thresholds, Tax administration, etc.
- The Central Government enacted four GST Bills:
–Central GST (CGST), Integrated GST (IGST), Union Territory GST (UTGST), Bill to Compensate States
Filing GST Returns:
Issuing GST Invoices:
- Please refer https://taxpage.in/raising-invoice-in-gst.html for details.
- In the GST regime, two types of invoices will be issued:
- Taxinvoice & Billof supply
- When goods are supplied, the supplier is required to issue three copies of the invoice– Original, Duplicate, and Triplicate.
- Following are the due dates for issuing an invoice to customers:
–Supply of Goods:
Normal case- On or before date of removal/ delivery
Continuous Supply- On or before date of issue of account statement/ payment
–Supply of Services:
General case- within 30 days of supply of services
Banks & NBFCs- within 45 days of supply of services
- For GST Invoice Format, follow the link: https://www.aces.gov.in/Documents/draft-formats-under-invoice-rules.pdf
When is debit note issued?
Debit note is to be issued by supplier:
–Original tax invoice has been issued and taxable value in the invoice exceeds actual taxable value.
–Original tax invoice has been issued and tax charged in the invoice exceeds actual tax to be paid.
When is credit note issued?
Credit note is to be issued by supplier:
–Original tax invoice has been issued and taxable value in the invoice exceeds actual taxable value.
–Original tax invoice has been issued and tax charged in the invoice exceeds actual tax to be paid.
–Recipient refunds the goods to the supplier
–Services are found to be deficient
What are the specific mandatory fields in an GST compliant invoice?
To issue and receive a GST compliant invoice is a prerequisite to claim ITC. If a taxpayer does not issue such invoice his customer loses ITC claim and the taxpayer loses its customers. Here we mention the mandatory fields in an invoice:
–Invoice number and date
–Customer name
–Shipping and billing address
–Customer and taxpayer’s GSTIN
–Place of supply
–HSN code
–Taxable value and discounts
–Rate and amount of taxes i.e. CGST/ SGST/ IGST
–Item details i.e. description, unit price, quantity
In the table below, we have provided details of all the returns which are required to be filed under the GST Law.
| Return Form | What to file? | By Whom? | By When? |
| GSTR-1 | Details of outward supplies of taxable goods and/or services effected | Registered Taxable Supplier | 10th of the next month |
| GSTR-2 | Details of inward supplies of taxable goods and/or services effected claiming input tax credit. | Registered Taxable Recipient | 15th of the next month |
| GSTR-3 | Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax. | Registered Taxable Person | 20th of the next month |
| GSTR-4 | Quarterly return for compounding taxable person. | Composition Supplier | 18th of the month succeeding quarter |
| GSTR-5 | Return for Non-Resident foreign taxable person | Non-Resident Taxable Person | 20th of the next month |
| GSTR-6 | Return for Input Service Distributor | Input Service Distributor | 13th of the next month |
| GSTR-7 | Return for authorities deducting tax at source. | Tax Deductor | 10th of the next month |
| GSTR-8 | Details of supplies effected through e-commerce operator and the amount of tax collected | E-commerce Operator/Tax Collector | 10th of the next month |
| GSTR-9 | Annual Return | Registered Taxable Person | 31st December of next financial year |
| GSTR-10 | Final Return | Taxable person whose registration has been surrendered or cancelled. | Within three months of the date of cancellation or date of cancellation order, whichever is later. |
| GSTR-11 | Details of inward supplies to be furnished by a person having UIN | Person having UIN and claiming refund | 28th of the month following the month for which statement is filed |
In addition, all these returns are required to be filed digitally online through a common portal to be provided by GSTN.
In conclusion, just two days left for the GST roll-out, traders at the tools and hardware market are still trying to comprehend the complexities and implications of the GST regime. The traders are worried about the multiple tax rates in this regime and a possible slowdown in the business — just like during the demonetisation period — in the coming months. Various hurdles in GST, including high taxes and multiple rates, may create problems in the near term, traders claim. So the above given action plan will help you to get ready for GST.