GST is an indirect tax to be levied on supply of goods and services. GST is based on the principle of 'One
Nation One Tax'. With such a major tax reform in the history of India which is likely to take
effect from 1 July 2017 and which shall change the outlook of present indirect tax regime,
are you ready for adopting GST as a part of your business?
Checklist to adopt GST:
1. What are the rates of GST (both CGST & IGST) applicable to my products and services?
2. Which of the current indirect taxes such as excise duty, VAT, CST, Service Tax etc., will cease to be applicable on introduction of GST?
3. What tax credits would I be able to claim against my GST liability?
4. What is CGST, IGST and SGST and is there a seamless credit available across these taxes and boundaries of the state?
5. What is the last date for registration and migration of existing registration under the GST law?
6. What will happen to my credit balances and refunds against the present indirect tax laws such as CENVAT credit, VAT refunds?
7. Is there any reverse charge applicable for my input goods and services and import?
8. Will the branch tansfers continue to be exempt?
9. Will there be any additional input cost due to vendors charging a higher GST rate? Will I be able to claim set off of the additional taxes?
10. Do I have to file a single tax return or there are multiple tax returns? If there are many then, How Many & When?
11. Do I need to rework my prices and costs? Do I need to rework my customer and vendor contract to ensure recovery of GST and grant/receipt of input credit?
12. Are there any credits for which I need to claim refunds from the government and if so, what is the time line and certainty of refund?
13. What is the GST treatment of my e-commerce business?
14. Do I need to upgrade my ERP systems or the accounting packages or will the same satisfy the need?
Following taxes shall not be subsumed in GST:
1. Alcoholic Liquor for Human Consumption - The same shall be exclusively taxed by States.
2. Tax on Petroleum Crude/High Speed Diesel/ Motor Spirit/Natural Gas/Aviation Turbine Fuel-The states would continue as per current laws to impose VAT on within state sales while inter-state sales would continue to attract CST. Also, Excise duty will continue on petroleum products. The said Petroleum products shall be subject to GST at a future date as per the recommendation of GST Council.
3. Stamp duties - Stamp duty will continue to be levied by the States.
4. Taxes by Local Bodies - Taxes levied by local bodies.
5. Basic Custom Duties (BCD) - Duty imposed at the time of export.
Further issues of GST shall be addressed soon!!
SriRam Inani
Tax & Financial Advisor
Checklist to adopt GST:
1. What are the rates of GST (both CGST & IGST) applicable to my products and services?
2. Which of the current indirect taxes such as excise duty, VAT, CST, Service Tax etc., will cease to be applicable on introduction of GST?
3. What tax credits would I be able to claim against my GST liability?
4. What is CGST, IGST and SGST and is there a seamless credit available across these taxes and boundaries of the state?
5. What is the last date for registration and migration of existing registration under the GST law?
6. What will happen to my credit balances and refunds against the present indirect tax laws such as CENVAT credit, VAT refunds?
7. Is there any reverse charge applicable for my input goods and services and import?
8. Will the branch tansfers continue to be exempt?
9. Will there be any additional input cost due to vendors charging a higher GST rate? Will I be able to claim set off of the additional taxes?
10. Do I have to file a single tax return or there are multiple tax returns? If there are many then, How Many & When?
11. Do I need to rework my prices and costs? Do I need to rework my customer and vendor contract to ensure recovery of GST and grant/receipt of input credit?
12. Are there any credits for which I need to claim refunds from the government and if so, what is the time line and certainty of refund?
13. What is the GST treatment of my e-commerce business?
14. Do I need to upgrade my ERP systems or the accounting packages or will the same satisfy the need?
Following taxes shall not be subsumed in GST:
1. Alcoholic Liquor for Human Consumption - The same shall be exclusively taxed by States.
2. Tax on Petroleum Crude/High Speed Diesel/ Motor Spirit/Natural Gas/Aviation Turbine Fuel-The states would continue as per current laws to impose VAT on within state sales while inter-state sales would continue to attract CST. Also, Excise duty will continue on petroleum products. The said Petroleum products shall be subject to GST at a future date as per the recommendation of GST Council.
3. Stamp duties - Stamp duty will continue to be levied by the States.
4. Taxes by Local Bodies - Taxes levied by local bodies.
5. Basic Custom Duties (BCD) - Duty imposed at the time of export.
Further issues of GST shall be addressed soon!!
SriRam Inani
Tax & Financial Advisor
