GST Concept Presented by MM Infosystems Pvt Ltd
GST (Goods & Services Tax), a single unified indirect tax system aims at uniting India’s complex taxation structure to a ‘One Nation - One Tax’ regime. Destination based tax on supplies of goods and services. It will be levied on all supplies with seamless flow of credit (for both goods & services) till it reaches the end consumer Only value addition will be taxed and burden of tax is to be borne by the final consumer. • Central Excise Duty • Entry Tax & Octroi • CVD • Surcharges & Cess GST would replace indirect taxes • CST & VAT levied by State govt
Simple Tax Structure Eliminating Cascading Effects Technology Driven System Increase Revenue
Location of Place of Supply Supplier HARYANA Charge of Tax Intra State CGST SGST
Place of Supply Location of Supplier Charge of PUNJAB HARYANA Tax Inter State IGST
GST CONCEPTS
Invoice Matching Input Tax Credit Return Filing
Government Server Matches Seller pays tax to Buyer gets Invoices of Buyer & Seller the government input credit TAX Government Buyer Seller GSTN Buyer gets input credit only if seller pays GST
CGST - ITC IGST CGST SGST - ITC SGST IGST IGST- ITC IGST SGST CGST Input credit will not be credited to bank. It will be available in an electronic ledger which can be adjusted against tax liability
Seller needs to pay taxes before buyer can take input credit Input credit is available for direct and indirect purchases To enforce these laws, invoice level detailing is a MUST To implement this effectively, technology is a MUST To make it work effectively Auto Reporting is Must First time ever in India, technology-centric compliance will be implemented
IMPACT ON BUSINESS
May APRIL If you miss a month’s filing Y ou can’t file for the subsequent PAID UNPAID CAN’T PAY month Unless tax for the previous month is paid
GST VAT Interaction with Government for compliance Once a quarter or month 3 times EVERY MONTH Return filing Need to upload EVERY transaction Summary of sales/purchases needs to be filed Invoice Matching Invoices of supplier and recipient NEED to MATCH Not monitored extensively Input Credit Can be availed ONLY WHEN INVOICES ARE Availed based on returns MATCHED and SELLER PAYS TAX LIABILITY . Input Credit on expenses Available for ALL INWARD which are used in furtherance of business Was not able to claim on all business expenses
HOW TO PREPARE FOR THE GST
Make full use of Input Tax Credit & plan for better cash flow by 1. Being compliant 2. Dealing with compliant suppliers
Use GST Compliant Software Recording of all Sales transactions Generate Sales Data for uploading to GSTN Download input data from GSTN Reconcile the input data with data in GSTN Upload Reconciled input data to GSTN
Changes in to make it GST Compliant
Master Level Changes Done For GST
New GST Master added. In Company Master, column for GSTIN/UIN Number added. In Unit Master, column for GSTIN/UIN Numbers added. In Party Master, GST Type (Reg./Unreg./Exempt/Composite) field provided. In Party Master, column of GSTIN/UIN Number (CGST/SGST/IGST) added.
In Party Master, column of GSTIN/UIN Number (CGST/SGST/IGST) added address wise. In Item Master, HSN/SAC Number column provided. In Item Master, Provision to define CGST/SGST/IGST rates added item wise. Mapping of GST Master in Account Master with new type(GST Account) provided. Provision to define GST openings provided in GST Opening Balances.
Transaction Level Changes Done For GST
Column of GST Name/Rate/Amount are provided item wise in Purchase Quotation Purchase Order Sales Quotation Sales Order Material Receipt Note Invoice Debit/Credit Note Sale Rate Directory Supplementary Invoicing Relevant GST Account Changes incorporated in Purchase Voucher, Sale Voucher, Debit/Credit Note Voucher, Purchase Return Voucher, Sale Return Voucher, Job Work(I) Voucher, Job Work(O) Voucher.
Report Level Changes Done For GST
Reports Designed as per GST Formats for: Invoice Material Receipt Note Sales Order Purchase Order Debit/Credit Note
GST Returns Level Changes Done For GST
New GST Returns Designed as per GST Rules: GSTR-1 GSTR-2 GSTR-3 GSTR-9 (Under development)
New Concept of GST Return Export added: Outward GST Return Inward GST Return GST Return Uploading can be done: Through ASP – With GST compliance Application Through GSP – With GSP uploading Application Through GSTN – with Government GST Server We are in process to Tie up with GSP and ASP for auto uploading of GST Returns & Reconciliation through API
New GST Master (as per excel enclosed) Company Master GSTIN/UIN No. Unit Master GSTIN/UIN No. GST State Code State Master GST State Code Party Master (as per excel enclosed) Item Master (as per excel enclosed) Accounts Master Mapping of GST Master
Thanks for Your Time Any Queries are welcome
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