Goods and Services Tax (GST) is defined as the tax levied when a consumer buys a good or service. It is proposed to be a comprehensive indirect tax levy on manufacture, sale, and consumption of goods as well as services.
Benefits of Goods and Services Tax (GST):
- GST is a transparent tax and also reduce the number of indirect taxes.
- A unified tax system removing a bundle of indirect taxes.
- Removes cascading effect of taxes.
- Reduction in manufacturing cost.
- It will replace other taxes like VAT, CST, Service Tax, CAD, SAD, Excise, Entry tax, Purchase tax, etc.
GST Checklist: Get GST Compliant!
The following are a few important pointers to consider in checking your GST preparedness.
- HSN/SAC Codes and Rates of Tax: Check your HSN code for goods and SAC code for services from the attached list. Also, check the corresponding tax rate for the schedule of GST rates.
- Filing of Past Returns: Ensure that all your past returns (Excise, VAT, Service Tax) are filed in time. The last date for filing of Service Tax Return for April to June is 15th August. Your Input Tax Credit carried forward from CENVAT and VAT is conditional on the filing of all returns for the past 6 months and carry forward of proper credit in the last return for June.
- Unclaimed Input Credit on Capital Goods: Check if there is any unclaimed input credit on capital goods. Such credit may be available all in one installment after 1st July. This will have to be specifically intimated to the GST Department.
- GST Migration Status: Check that your GST Migration status is completed. If not, ensure that the same is done on 25th June when the window reopens. Ensure that a separate registration has been applied for every state in which you have a place of business.
- Invoice Formats: Refer to sample tax invoice formats for both goods and services, attached herewith.
- Goods with Job Worker: Ensure all inputs or capital goods with job worker are returned to your place of business within 6 months from 1st July. If unreturned, the same will be treated as supply and taxed under GST.
