5 things to do after GST implementation _ Your Retail Coach

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GST will integrate country’s economy which is roughly worth $2 trillion and a vast customer base of 1.3 billion into one common market. GST is applicable to all businesses (supply of goods and services, trading, profession, vocation etc).

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10/5/2017 5 things to do after GST implementation | Your Retail Coach http://www.yourretailcoach.in/blog/5-things-to-do-after-gst-implementation/ 1/9 5 Things to do After GST Implementation | YRC Jul 3 2017 From 1 July 2017 India has stepped into the much-awaited GST regime country’s single largest tax reform since independence. GST will integrate country’s economy which is roughly worth 2 trillion and a vast customer base of 1.3 billion into one common market. GST is applicable to all businesses supply of goods and services trading profession vocation etc. It is time for businesses to gear themselves up to this new indirect tax environment. Major overhauls will be required in business processes IT and ERP programs sta training and marketing to incorporate the new taxation rules and regulations so that businesses are equipped to avail the benets of and comply with the GST regime which will eventually lead them to remain competitive and compatible with its environment. GST Registration Under GST a person or a business entity which is already registered in a state under any existing law will have to migrate to GST. Similarly unregistered entities will have to get themselves registered under GST as per the given provisions. Having a PAN is mandatory for GST registration. Non-residents can apply for GST registration by other documents as notied by the appropriate authority. st Message us

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10/5/2017 5 things to do after GST implementation | Your Retail Coach http://www.yourretailcoach.in/blog/5-things-to-do-after-gst-implementation/ 2/9 Separate GST registration shall be required for each state of operation and for each business vertical in a state. Persons and entities liable to get registered or migrated to GST are mentioned below. Under GST a person or a business entity which is already registered in a state under any existing law will have to migrate to GST 1. Every person with a turnover exceeding Rs.20 Lakhs Rs.10 Lakhs for the North-Eastern States including    Sikkim in a nancial year. 2. Interstate supplier of goods and services 3. Casual Taxable Person 4. Non-Resident Taxable Person 5. Agents who act on behalf of supplier 6. Persons required to pay taxes under Reverse Charge Mechanism 7. Distributors or Input Service Distributor 8. E-Commerce operator and persons who supply through an e- commerce operator 9. Aggregator 10. Any person supplying online information and database access/retrieval services from outside India to a     person or entity in India other than a registered taxable person 11. Any person who is required to deduct TDS under GST. Note: Person includes Individuals HUF Company Firm Society Trust etc. GST is not applicable to Agriculturists. Agriculture includes oriculture horticulture sericulture cultivation of crops grass or garden produce and does not include dairy farming poultry farming fruit gathering plant rearing etc. GST registration is crucial because it is mandatory as applicable and will entitle businesses to avail various benets under GST. GST-registered businesses will be able to avail to input tax credit. Timely registration will help businesses avoid attracting penalties from tax authorities. Persons and entities registering under GST will be assigned with a unique GSTIN Goods and Services Tax Identication Number. Input Sources – 1 2 3 4 Changes in Accounting and TAX Treatment Under GST In the erstwhile taxation system businesses had to maintain separate accounts for VAT CST Service Tax etc. Various accounts required to be maintained by businesses before GST is given below 8: Excise Payable a/c CENVAT Credit a/c Output VAT a/c Message us

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10/5/2017 5 things to do after GST implementation | Your Retail Coach http://www.yourretailcoach.in/blog/5-things-to-do-after-gst-implementation/ 3/9 Input VAT a/c Input Service Tax a/c Output Service Tax a/c CST a/c Post-GST the existing indirect taxes will be subsumed and brought under GST. Some of the important accounts required to be maintained under GST regime are 8: Input CGST a/c Output CGST a/c Input SGST a/c Output SGST a/c Input IGST a/c Output IGST a/c Electronic Cash Ledger Recordkeeping on the authorized GST Portal The tax rate applicable will depend on the product/service and the type of GST CGST SGST and IGST applicable will depend on the source and destination of supply of goods and services. Businesses can now oset their input tax with purchases with output tax from supply/sales. For interstate transactions IGST is applicable and for intra-state transactions both CGST and SGST will be applicable.   Tax Collected Output Tax Liability Taxes paid Input Tax Credit – Setting o order Balance CGST CGST then IGST Tax payable SGST SGST then IGST Tax payable IGST IGST CGST SGST Tax payable For accounting purposes businesses will have to follow GAAP under GST and books of accounts have to be maintained for ve years from the due date of ling the annual return of the particular year. Input Sources – 8 Message us

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10/5/2017 5 things to do after GST implementation | Your Retail Coach http://www.yourretailcoach.in/blog/5-things-to-do-after-gst-implementation/ 4/9 Changes in Business Process – Finance and Accounts IT and Logistics Under the erstwhile taxation system indirect taxes were levied on the manufacture or the sale of goods and services. But with GST the taxation will be based on the source and destination of the supply of goods and services. This will aect and will require changes in various business processes like nance IT and logistics. The new rules and regulations will have to be incorporated in the nance ERP so that businesses can process its nancial transactions like purchase sale billing invoicing claiming input tax credit and comply with the provisions of the new GST regime. Under GST a normal taxpayer will have to submit three monthly returns and one annual return. Similarly dierent persons registered under dierent provisions of GST e.g. casual registration composition scheme etc will have to furnish dierent returns as per rule. There are altogether 11 main types of return forms GSTR 1 to GSTR 11 for dierent persons or entities registered under GST for ling dierent information to the tax authorities subject to the given deadlines. The new rules and regulations will have to be incorporated in the nance ERP so that businesses can process its nancial transactions like purchase sale billing invoicing claiming input tax credit and comply with the provisions of the new GST regime The aforesaid returns have to be led online which makes it important for businesses to incorporate the necessary changes in its IT infrastructure and information systems. It also becomes imperative for businesses to make sure that the returns are led on time to avoid penalties. With the subsuming of Octroi businesses will also experience smoothness in its logistics and interstate supply of goods. Companies may also have to adjust and reposition their supply chain and logistics network to make the most out of the GST framework. SOPs can give a competitive edge to organizations in this transitional phase. Finance and Accounts SOPs can signicantly help companies smoothly incorporate and execute the GST provisions applicable to their businesses. Because GST is new to everybody including the employees deputed in the nance accounts and purchase department of a business enterprise by integrating the working provisions and the compliance requirements of GST with the existing SOPs in the aected departments the concerned employees will be in a much better position to execute their GST-aected duties and responsibilities like invoicing ling returns claiming input tax credits etc. This will help ensure that the regular ow of business operations is not aected deadlines are not missed and other compliances are duly fullled. Hence it is important for businesses to redene their SOPs especially for the accounts purchase department. Message us

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10/5/2017 5 things to do after GST implementation | Your Retail Coach http://www.yourretailcoach.in/blog/5-things-to-do-after-gst-implementation/ 5/9 compliance requirements of GST with the existing SOPs in the aected departments the concerned employees will be in a much better position to execute their GST-aected duties and responsibilities like invoicing ling returns claiming input tax credits Input Sources – 5 HR: Sta Training The new set of rules regulations and compliances will also bring changes in the business processes operations and activities of an organization especially in the nance/accounts purchase logistics/supply chain and marketing. The resultant changes in the business processes will have a bearing on the job descriptions and job specications in the aected departments of a business enterprise. Employees at all levels have to be educated and trained on incorporating and executing the GST guidelines and provisions. Every business enterprise has to make sure that their accounts team is updated with GST rules applicable to the products and services. The resultant changes in the business processes will have a bearing on the job descriptions and job specications in the aected departments of a business enterprise A brief layout of the GST tax structure for dierent products and services is presented below. Tax Rate Goods and Services 0 No Tax Salt Milk Eggs Curd Lassi Unpacked Food grains. Unpacked Paneer Jaggery Natural Honey Fresh Fruits Vegetables Flour Besan Bread Sindoor Kajal not sticks Bindi Bangles Handloom Judicial Papers Printed Books Cereal Grains Hotels Lodges with tari below Rs.1000 etc.   5 Sugar Tea Edible Oils Domestic LPG PDS Kerosene Cashew Nuts Milk Food for Babies Fabric Spices Coal Life-Saving Drugs Apparels Rs.1000 Footwear Rs.500 Skimmed Milk Powder Branded Paneer Coee Spices Frozen Vegetables Medicines Insulin Postage Revenue Stamps Railways Airlines Small Restaurants etc.   Message us

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10/5/2017 5 things to do after GST implementation | Your Retail Coach http://www.yourretailcoach.in/blog/5-things-to-do-after-gst-implementation/ 6/9 12 Mobile Phones Business Class Air Tickets Non-AC hotels Butter Ghee Cheese Almonds Apparels Rs.1000 Frozen Meat Products Packaged Dry Fruits ketchups Fruit Juices Bhujia Namkeen Spectacles Ayurvedic Medicines diagnostic kits and reagents work contracts Colouring Picture Books Exercise Note Books Umbrella Sewing Machines Ketchups Sauces Work Contracts etc.   18 AC Hotels that serve liquor Telecom Services IT and Financial Services Software Trademark Goodwill Branded Garments Footwear Rs.500 Biscuits Pastries Mayonnaise Jams Steel Products Aluminium Foil Curry paste Salad Dressings Mineral Water Ice- Creams Cameras Speakers Monitors Printer CCTV Swimming Pools Hair Oil Toothpaste Soap Pasta Corn Flakes Soups Room Tari between Rs.2500 to Rs.7500 Restaurants inside 5 Star Hotels etc.   28 Small Cars Consumer Durables – AC Fridge Washing Machines Vacuum Cleaners Water Heater Shavers Dish Washers. Five Star Hotels and Hotels with room taris above Rs.7500 Cinema Deodorants Shaving Creams Aerated Water Sunscreen After Shave Hair Shampoos   ATM Automobiles and Two-Wheelers Chewing Gums Pan Masalas etc.   Input Sources – 6 7 Realignment of Marketing Strategies: Pricing Competition and Arrangements  With the removal of the cascading eect of taxes prices of products and services are expected to come down. GST might unleash competitive price wars as businesses under GST will get some space to play around with their prot margins. Also with a uniform taxation environment on goods and services across the country which bring tax-neutrality and with lesser compliance hassles businesses across the country will seek to explore new markets in dierent states. With an increase in competition and surge in pricing competitiveness businesses will have to revisit their pricing and marketing strategies in the light of the new tax regime. Also contracts and agreements with suppliers distributors and clients may have to be renegotiated and modied to absorb the impact of GST on the parties involved in the value-chain process. With an increase in competition and surge in pricing competitiveness businesses will have Message us

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10/5/2017 5 things to do after GST implementation | Your Retail Coach http://www.yourretailcoach.in/blog/5-things-to-do-after-gst-implementation/ 7/9 Related Blogs Eective Ways to Financially Prepare for Expansion | YRC How Do I Build Up a New Brand 6 Ways To Price Your Product | YRC Five Ways to Attract Investors for Your Business | YRC to revisit their pricing and marketing strategies in the light of the new tax regime While GST brings in a host of benets for the business community in the country it also brings certain obligations on the part of the business organizations to get themselves registered with GST and comply with its provisions. With the new set of rules and regulations of taxation businesses will have to address their tax positions and accounting procedures from the GST perspective. And with these changes in eect organizations will have to uplift their business processes Finance IT Logistics etc so that they remain in compliance with this new regulatory framework. The opening up of the market oodgates with GST presents a sea of opportunities for companies and business enterprises of all sizes to revisit their marketing strategies and ercely pursue business growth and expansion. The simplied and uniform tax mechanism is a motivating incentive for budding entrepreneurs with dream retail projects. Author Bio Varun Shah Chief Finance Ocer Get Advice  Message us

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10/5/2017 5 things to do after GST implementation | Your Retail Coach http://www.yourretailcoach.in/blog/5-things-to-do-after-gst-implementation/ 8/9 RSS Feed Subscribe to our Newsletter Email Subscribe Recent Posts 5 Things to Check Before Investing in a Franchise Brand | YRC 6 Things you Must Keep a Check on Before Entering Into Retail | YRC How can an Indian SME Attract Investment | YRC How SOPs will help in Franchise Business Expansion | YRC Is Your Brand Ready For Expansion | YRC ADS Search Message us

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