GST: Important points to note

Here are a few important points that need to be noted regarding GST:

  1. GST shall be completely implemented by 1st of June 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. The migration towards the enrolment of GST will start again on
  4. The registration certificates shall be issued online 25th of June 2017.
  5. All the intelligence officers will be dormant for a while as there will not be check posts for a year. But the mobile check posts will be running in full force.
  6. There should be a monthly submission of forms on different dates of next month.
    • R1 form on 10th
    • R2 form on 13th
    • R3 form on 15th
    • R4 form on 17th &
    • R5 form or final returns on 20th
      Filing of revised returns is not possible. Once it is filed on 20th, it is final.
  7. Tax payments will only be accepted through e-payments. Tax Payments via credit & debit card is also added.
  8. In the present VAT system, you are supposed to upload sales & purchases on a monthly basis. But in GST you will have to upload every sale & purchase bill.
  9. Be careful while uploading, as everything in GST is system driven. Once you have uploaded it cannot be revised. None of the officers will be able to help you with this. Therefore be cautious to avoid mistakes.
  10. The system will perform the rating for your Firm. And the Audit Trails shall be conducted based on the rating.
  11. E-Sugam is proposed only for the value above ₹50000 & above.
  12. The Rates of GST proposed in percentages are 0, 5, 12, 18, & 28.
  13. For the first time in the history of independent India 4 major categories of businesses shall be covered: Education, Textiles, Medical & Professional services.
  14. Submission of 17 documents is required for the migration to GST.
  15. MRP of most products will come down.
  16. Distribution and C & F channels are under threat.
  17. The categories such as Replacements/ return goods, Barters, Free Samples, Disposables, Scrap material which were not taxed until now shall become taxable.
  18. Eg:  if you buy a 40 inch led TV from a Store for ₹30000 and return back your old TV in exchange for ₹4000, you will have to pay tax on ₹34000.
  19. Every movement of materials shall be taxed.
    • Eg: From Head Office to Branch Office (Stock Transfer), Factory to C&F Agent, Godown to Shop etc.
  20. The GST Officers will have the right to value your goods and fix the price. The shall decide the value of products at different levels like Manufacturing, Wholesalers, Distribution & Retailers.
    • Eg: if Kissan is selling Jam for ₹150 & Patanjali is selling the same Jam for ₹120. (Same quantity, flavour, ingredients etc) Then Patanjali has to pay tax on ₹150.
  21. All the books and records have to be maintained on a daily basis.
  22. A full-time accountant shall be needed in your shop or office to maintain books under GST.
  23. All the expenses related to business travels and tours have to be claimed under the firm’s name.
  24. You will not get Tax Credit if your vendor failed to upload his bills within 180 days.
  25. Credit cannot be claimed for the material in stock beyond a year.
  26. It is proposed that you should dispose of all the old stocks purchased under VAT/CST within September 2017
  27. The documents like C Forms, F Forms etc. related to VAT have to be cleared within September 2017.
  28. Your VAT Credit shall not be carry forwarded to GST.

Dear All,

Now you can check whether a person/firm/company have migrated to GST or not in a particular state on below link:

You only need a VALID PAN no. of that person/firm/company