Certain important points noted are :
# GST will 100% be implemented on 1.7.17
# Types of taxation in GST
IGST : Integrated GST
CGST : Central GST which with replacement CST
SGST : State GST which will replace VAT
# WEF from 1.6.17 : Migration towards enrolment of GST will start till 15.6.17
# Registration certificates will be issued online
# there will be no check post for 1 year. Only mobile check posts will be in full force. All intelligence officers will be dormant for sometime.
# 5 forms on different dates have to be submitted every month
R1 form on 10th
R2 form on 13th
R3 form on 15th
R4 form on 17th &
R5 form or final returns on 20th
You cannot file revised returns at all. Once filed on 20th is final.
# tax payments will be accepted only by e payments. Tax Payments via credit & debit card also added.
# In the present Vat system you upload sales & purchases every month. In GST you have to upload every sale & purchase bill.
# be careful , every thing in GST is system driven. Once uploaded you cannot revise anything. No officer can help you in this. They can only pity the mistake
# your firm rating will be done by the system. Based on the rating audit trials will be conducted.
# proposed e sugam for ₹50000 & above value only.
# proposed rates of GST in percentage are 0, 5, 8 , 12, 18 , 28 & 40
# 1st time in the history of independent India 4 major category of businesses will be covered : Education, Textiles, Medical & Professional services
# You need to submit 17 documents for migration to GST
# Most products MRP to come down.
# Distribution + C & F channel under threat
# All these categories which were not taxed will now be taxable : Replacements/ return goods, Barters , Free Samples, disposables, scrap material. For example : if you buy a 40 inch led TV from Girias for ₹30000 & return back your old TV in exchange for ₹4000, you have to pay tax on ₹34000.
# All movements of material will be taxable like : Head office to branch office (stock transfer), factory to C & F agent, godown to shop.
# The GST officer has all rights to value your goods & fix the price. The law will decide Valuation of the product at Various levels like : Manufacturing, Wholesalers, Distribution & retailers. For example 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.
# All books & records to be maintained on daily basis.
# You will need a full time accountant in your shop/office to maintain books under GST.
# All travel & tour expenses related to business have to be claimed under firm name.
# If your vendor does not upload his bills within 180 days , you will not get tax credit.
# You cannot claim credit for material in stock beyond one year.
# They propose that You have to dispose all your old stocks purchased under VAT/CST within September 2017.
# All VAT related documents like C forms, F forms etc have to be cleared within Sept 2017.
Your Vat credit will not carry forwarded to GST.