Migration To GST -Try To Understand

Name of Writer :     जीएसटी हसमुख अढिया  
Subject : Introduction On GST (Goods & Services Act)
Published In Dainik Jagran

जीएसटी को लेकर पूरे देश में एक उत्‍सुकता है। लोग ये समझना चाहते हैं कक जीएसटी आजादी के बाद का सबसे बडा कर सुधार क्‍योों माना जाता है? इस लेख द्वारा मैंजीएसटी के स्‍वरूप, जीएसटी के कु छ फायदे और जीएसटी में टैक्‍स की वसूली और ररटनन भरने की प्रकिया क्‍या होगी उसके बारे मेंकु छ कबोंदु प्रस्‍तुत करूों गा। 

आज के न्‍द्र सरकार द्वारा कई अलग-अलग वस्‍तुओों पर उत्‍पाद शुल्क, अकतररक्‍त उत्‍पाद शुल्‍क, अकतररक्‍त सीमा शुल्‍क, कवशेष अकतररक्‍त शुल्‍क वगैरह नाम से अलग-अलग टैक्‍स लगाए जाते हैंऔर सेवाओों के ऊपर सकवनस टैक्‍स (सेवा कर) लगाया जाता है। राज्‍य सरकार द्वारा वैट के न्‍द्रीय कबिी कर, खरीद कर, मनोरोंजन कर, लाटरी टैक्‍स, चुोंगी कर (ऑक्‍टोराइ), प्रवेश कर वगैरह नाम से अलग-अलग टैक्‍स लगाए जाते हैं। इसके अलावा के न्‍द्र और राज्‍य द्वारा अलग-अलग प्रकार के सेस या सरचाजन (अकधभार) भी लगाया जाता है। जीएसटी में अब यह सब अलग-अलग कर कनकल जाएगा और कसफन एक टैक्‍स जीएसटी लगेगा जो हर वस्‍तुओों एवों सेवा के ऊपर लगेगा। एक वस्‍तु के ऊपर जो भी जीएसटी का टैक्‍स रे ट होगा वो पूरे भारत मेंएक ही दर रहेगा। 

बडी सोंख्‍या में के न्‍द्र और राज्‍योों के द्वारा लगाए जा रहे करोों को कमलाकर अके ला एक कर बना कदए जाने से अनेकानेक कर और दोहरे कराधान की समस्‍या हल हो जाएगी और एकीकृ त राष्‍टर ीय बाजार के कलए रास्‍ता साफ हो जाएगा। उपभोक्‍ता की दृकि से देखें तो, सबसे बडा लाभ यह होगा कक वस्‍तुओों पर लगने वाले कर के बोझ में कमी आ सके गी। आज यह कर बोझ 25 प्रकतशत से 30 प्रकतशत के लगभग है। जीएसटी के लागू ककए जाने से भारतीय उत्‍पादक घरे लूतथा अोंतरानष्‍टर ीय बाजारोों मेंप्रकतस्‍पधान कर सकें गे। ककए गए अध्‍ययनोों से पता चलता है कक इससे आकथनक कवकास पर भी बहुत उत्‍साहजनक प्रभाव पडेगा। 

सोंकवधान मेंजीएसटी मसले में(रे ट सकहत) सभी महत्‍व के कबोंदु पर महत्‍वपूर्न मसले के ऊपर कनर्नय लेने के कलए पूरा अकधकार जीएसटी काउोंकसल को कदया है। काउोंकसल की मीकटोंग में अभी तक जो कनर्नय हुए हैंउसमेंमुख्‍य कनर्नय ये हैंकक सब वस्‍तुओों को 4 रे ट में से ककसी एक रेट का टैक्‍स लगेगा- 5%, 12%, 18%, 28% । इसके अलावा कु छ वस्‍तु एवों सेवा ऐसी होोंगी कजसके ऊपर कोई टैक्‍स नही ों लगेगा। यानी कक वो छू ट प्राप्‍त कलस्‍ट की आइटम होगी। सोना-चाोंदी और उससे बने आभूषर् के ऊपर एक कवशेष रे ट होगा जो अभी कनकित करना बाकी है। एक्‍सपोटन करने वाले आइटम में जो भी टैक्‍स देश के अोंदर चुकाया होगा उसका पूरा ररफों ड कमलेगा। 

आयात की गई वस्‍तु पर कस्‍टम ड्यूटी के अलावा उतना ही जीएसटी लगेगा कजतना देश के अोंदर जीएसटी उस वस्‍तु के कलए है। जीएसटी लागू करने के बाद व्‍यापाररयोों को और उत्‍पादकोों को अब एक ही टैक्‍स की प्रकिया करनी पडेगी। 

सबसे बडा फायदा छोटे व्‍यापाररयोों को कदया गया है, अभी देश के ज्‍यादातर राज्‍य में10 लाख से ऊपर वाले व्‍यापाररयोों को वैट भरना पडता है। जीएसटी मेंकवशेष कटेगरी के पहाडी इलाकोों वाले राज्‍य को छोडकर बाकी सब राज्‍योों में ये कलकमट 20 लाख की कर दी गई है। इसका मतलब ये हुआ कक कजस व्‍यापारी का वाकषनक टनन-ओवर 10 लाख से 20 लाख के बीच में था उसे भी अब कोई टैक्‍स नही ों देना होगा और न ही उसके कलए रकजस्‍टरेशन लेना अकनवायन होग। अभी वैट, सकवनस टैक्‍स और एक्‍साइज नम्‍बर कजसके पास है उनमें से ज्‍यादातर लोगोों का पोंजीकरर् जीएसटी प्रकिया मेंहो चुका है।

 जीएसटी मेंहर व्‍यापारी को महीने में एक बार मुख्‍य ररटनन भरना होगा और अपनी टैक्‍स की अदायगी करनी होगी। ककसी भी माल या सेवा के ऊपर जो भी टैक्‍स चुकाना है, उसमें से खरीदारी पर लगा जो टैक्‍स भर कदया गया है उसकी पूरी इनपुट टैक्‍स िे कडट हर व्‍यापारी को ऑटोमेकटक कमलेगी। ररटनन फाइल करने की पूरी प्रकिया ऑनलाइन है। अगर आप अपने कहसाब-ककताब जीएसटीएन द्वारा दी गई एक्‍सेल शीट में रखेंगे तो हर महीने वही कहसाब- ककताब अपने आप ऑफलाइन टू ल की मदद से ररटनन मेंपररवकतनत हो जाएगा।

 अगर कोई व्‍यापारी अपना पूरा सामान कसफन खुदरा ग्राहकोों को बेचता है (बी-टू-सी) तो ऐसे व्‍यापारी का ररटनन बहुत ही सरल होगा कजसमेंरे ट-वाइज टनन-ओवर कदखाना होगा। अगर कोई व्‍यापारी जो कम्‍पोजीशन स्‍कीम का लाभ उठाता है और कजनका टनन-ओवर 50 लाख से कम है ऐसे व्‍यापारी द्वारा हर महीने में नही ों, परोंतु 3 माह में ररटनन भरना होगा कजसमें अपना टोटल टनन-ओवर मेंकदखाना होगा। 

जो व्‍यापारी कबजनेस-टू-कबजनेस (बी-टू-बी) माल बेच रहे हैं उनको अपने कबिी की हर इनवाइस की पूरी कडटेल ररटनन में देनी होगी। हर व्‍यापारी जब अपनी सेल्‍स (कबिी) की कडटेल महीने की 10 तारीख तक जीएसटी के वेबसाइट पर ररटनन के फॉमन में डाल देगा तो उसके द्वारा कक गयी खरीदारी की पूरी कडटेल अपने आप उसके खरीदारोों को अपनी जीएसटीआर-2 (जीएसटी ऑनलाइन अकाउोंट) मेंकदख जाएगी, यानी कक ऑटो-पाप्‍युलेट हो जाएगी। खरीदार व्‍यापारी द्वारा उसको देखकर, ठीक है तो उसको क्लिक करने से व्‍यापारी का पूरा ररटनन कम्‍प्‍यूटर में ही उनके सामने आ जाएगा। कजसे स्‍वीकृ त करने के कलए क्लिक करने से व्‍यापारी की टैक्‍स लायकबकलटी एवों इनपुट-टैक्‍स-िे कडट की पूरी कडटेल जीएसटी कसस्‍टम द्वारा स्‍वत: तैयारकर नेट टैक्‍स लायकबकलटी के साथ कदखाई जाएगी। टैक्‍स लायकबकलटी एवों इनपुट टैक्‍स िे कडट के बीच का अोंतर, व्‍यापारी को भरना होगा। टैक्‍स ऑनलाइन या बैंक में जमा करनी होगी। उसके पश्‍चात व्‍यापारी को महीने की 20 तारीख तक कम्‍प्‍यूटर द्वारा तैयार ककया गया अोंकतम ररटनन जीएसटीआर-3 को क्लिक करके सबकमट करना होगा। 

कबजनेस-टू-कबजनेस टर ाोंजेक्‍शन में एक ऐसी व्‍यवस्‍था की गई है कजसको हम कहते हैं इनपुट- टैक्‍स-िे कडट ररवसनल यानी कक जो आप को इनपुट-टैक्‍स-िे कडट कमली है उसको लौटाने का काम। इसके बारे में काफी लोगोों ने कचोंता जताई है, लेककन अगर पूरी प्रकिया को आप समझेंगे तो इसका पूरा समथनन करेंगे। जैसे मैंने आगे समझाया कक आपने कजससे माल खरीदा है उन्‍होोंने वो टर ाोंजेक्‍शन अपने ररटनन मेंमहीने की 10 तारीख तक कदखा कदया है तो आप को इनपुट-टैक्‍स-िे कडट कमल जाएगी। मान लो वो आपको माल बेचने वाला व्‍यक्लि उस इनवाइस को अपने ररटनन मेंनही ों डालता है तो भी आप को एक मौका कमलेगा कक आप उसको अपने जीएसटीआर-2 ररटनन में महीने की 15 तारीख तक कदखा दें और ऐसा करने से उस महीने में आप को आपके कहने पर पूरी इनपुट-टैक्‍स-िे कडट आपको कमल जाएगी। उसके बाद आपको उस व्‍यापारी से सम्‍पकन करना है और उसको समझाना है कक वह उस टर ाोंजेक्‍शन को अपने ररटनन में कदखाए ताकक आप को जो इनपुट-टैक्‍स-िे कडट कमल गया है उसका ररवसनल अगले महीने में नही ों करना पडेगा। आपको इसके कलए पूरे 30 कदन का समय कमलेगा और उसके बावजूद अगर आपको माल बेचने वाला व्‍यापारी इस टर ाोंजेक्‍शन को स्‍वीकार नही ों करता है और अपने ररटनन में नही ों कदखाता है, तब अगले महीने आपकी टैक्‍स ररटनन में ये इनपुट- टैक्‍स-िे कडट जो आपको कमल चुकी थी उसको ररवसन ककया जाएगा। 

हर व्‍यापारी का ये फजन है कक ऐसे ही व्‍यापाररयोों के साथ व्‍यवहार करे जो कक आप से टैक्‍स वसूल करने के बाद सरकार में इसको जमा करवाए। हर एक व्‍यापाररयोों के कडफाल्‍ट के आधार पर उनको एक कम्‍प्‍लायोंस रेकटोंग भी कदया जाएगा कजसको अन्‍य सभी व्‍यापारी देख सकें गे। ताकक बार-बार कडफाल्‍ट करने वाले व्‍यापारी से व्‍यापार करने मेंआप सचेत रहें। 

FAQ On Migration To GST

Process To Migrate To GST

GST Migration Procedure - Things to keep in mind-By Sri Deepak Nandkumar Joshi- Cost Accountant

Introduction

Though the target date of 1st April 2017 seems challenging after the non-passage of CGST, IGST and Compensation law into the parliament during the winter session, the journey of implementation of nationwide uniform tax i.e. Goods and services tax has begun with the migration of registration of all the existing registrant under Central Excise, Service tax and VAT from 8th November 2016 starting from the state of Puducherry and Sikkim. For every state schedule for enrollment is given and initially taxpayers who are registered in respective State Vat law are allowed to migrate themselves in GST at common GST portal. Enrolment of existing taxpayers who are registered under Central Excise or Service Tax Law but not in State Vat Law can apply for migration from 1st January to 31st January 2017.

Now one obvious question will be raised as to whether the migration of existing registration into the GST has any legal validity? Section 166 of Revised Model GST law talk about migration of existing taxpayers to GST. According to Sub-section (1) to section 166, after enactment of the GST Act, every person registered under existing law (i.e. Central Excise, Service tax and VAT) and having valid PAN shall be issued a certificate on provisional basis for the period of 6 months. On submission of necessary documents, the registration provided provisionally shall be converted into final registration. Since, CGST, SGST and IGST Acts are yet to pass into the parliament of India and respective State assemblies, there is no legal validity for migration of registration as of now or rather the activity which was started from 8th November 2016 is voluntary and is called as enrollment for migration of registration to GST.

As stated earlier the enrollment procedure is being taken up in stepped manner, so that taxpayers of each States shall get an appropriate time for enrollment. The procedure of enrollment can be done at GST Common portal i.e. www.gst.gov.in. As mentioned in the title of this article, taxpayer must keep some important things ready in his computer for smooth enrollment as the site sustains for a short duration. In order to avoid a problem of session out on GST common portal, readers are advised to keep all things ready as stated in each step below

(1) Creation of User ID & Password on Common Portal: - This is the first step towards enrollment for migration to GST, which start with provisional ID and password as given to the taxpayer by respective State Vat department through dealer's login. On entering provisional Id & Password, GST Common portal will ask for Email Id and Mobile number of authorized person on which two different onetime passwords shall be sent. Entering one time password of both Email Id & Password simultaneously is mandatory to create a new User Id & Password. Five questions shall be asked to reset the password in the event of forgot password. Taxpayers are therefore advised to take out a print before submitting a list of security questions. Initially i.e. up to 1st April 2016, Email Id and Mobile number of authorized person is Noneditable.

(2) Details of Business: -After successful creation of user Id & Password, taxable person need to login into GST common portal. After login on the dashboard itself a provisional GST number shall be seen, which shall start with state code followed by 10-digit pan number and 3 more system generated digits. In very first tab taxpayer has to enter various business details. Some details like PAN number, Legal Name are auto populated from the system and rest of the details such as various registration details along with the date of registration as provided underCentral Excise, Service tax, VAT, Luxury Tax, Entertainment Tax, IEC, CIN number etc. shall be filled manually.

In addition to above a scanned copy of proof of constitution i.e. Shop Act License/Factory License in case of individual, Partnership Deed in case of Partnership Firm, or Registration Certificate/Proof of Constitution in case of Society, Trust, Club, Government Department, Association of Person or Body of Individual, Local Authority, Statutory Body and Others etc.) shall be attached. Scanned copy of proof of constitution should be in jpeg or pdf format with maximum size of 1 MB.

(3) Details of Proprietor, Partner, Managing and Whole Time Director, Karta: - In this tab details (of Proprietor, Partner, Managing and Whole Time Director, Karta) such as Full Name, Full Name of Father/ Husband, DIN Number, Date of Birth, Mobile Number, Gender, Designation, PAN Number, Aadhar Number shall be entered.

In addition to above details of Residential Address (Building/Flat No, Name of Premises, Road, Locality, State, District, Pin code etc.) and Scanned copy of Photograph (In JPEG format only with maximum size of 100 KB) is also required to be uploaded on common portal. It is important to note that details as specified above such as name, date of birth etc. should be matched with the details mentioned on PAN Card. Validation error may occur in case of mismatch.

(4) Details of Authorized Signatory: - All the details as stated in point no 3 above are also common for authorized signatory. Apart from that a scanned copy of board resolution or authority letter evidencing appointment of such person as an authorized signatory along with acceptance letter shall be uploaded on GST common portal. For this purpose, board resolution or authority letter along with acceptance letter should be in pdf/jpeg format with maximum size of 100KB. Separate board resolution or authority letter should be made for each signatory.

Maximum 10 peoples including Proprietor, Partner, Managing and Whole Time Director or Karta as the case may be can be appointed as an authorized signatory for such business entity. Board resolution or authority letter is also required for Partner, Managing and Whole Time Director or Karta if they want to be act as an authorized signatory

(5) Details of Principal Place of Business: - Details such as Address (Building/Flat No, Name of Premises, Road, Locality, State, District, Pin code etc.), Official Email-Id, Mobile Number, Office Telephone Number, Nature of possession of premises (i.e. Own, Rented, Leased, Consent, Shared), Scanned copy of Proof of Principal place of business i.e. in PDF/JPEG format with maximum size of 1 MB is required to be given under this tab. Following documents can be used a proof of Principle place of business

(a)		For Own premises –Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(b)		For Rented or Leased premises –A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(c)		For premises not covered in (a) & (b) above –A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties, also, the same documents may be uploaded.

It is important to note that principle place of business means a place from where major activities of business are carried out. It may happen that the registered office and principle place of business are different. In addition to above nature of activities from such premises such as Factory / Manufacturing, Wholesale Business, Retail Business, Warehouse/Deport, Bonded Warehouse, Service Provision, Office/Sale Office, Leasing Business, Service Recipient, EOU/ STP/ EHTP, SEZ , Input Service Distributor, (ISD), Works Contract etc. are also to be mentioned at the time of registration..... For more click on following link

Link to Writer's article

How to get Input Credit , How input credit is available and in which cases it is CGST or SGST or IGST, To understand it please read following article in link given below

1) What is input tax?

“Input tax” has been defined in section 2 (57) of the MGL (Model GST Law) and section 2 (1) (d) of the IGST Act. Input tax in relation to a taxable person, means the (IGST and CGST) in respect of CGST Act and (IGST and SGST) in respect of SGST Act, charged on any supply of goods and/or services to him which are used, or are intended to be used, in the course or furtherance of his business and includes the tax payable under sub-section (3) of section 7.

Under the IGST Act, input tax is defined as IGST, CGST or SGST charged on any supply of goods and/or services.

2) What is the implication of different definition of “input tax” in three acts like CGST, SGST and IGST Acts?

It implies that input tax consists of IGST & CGST in CGST Act and IGST & SGST in SGST Act. In the IGST Act, input tax consists of all three taxes namely, IGST, CGST and SGST. Input Credit Can be set of against:
IGST, CGST and SGST
IGST
IGST & CGST
CGST
IGST & SGST
SGST

It further implies that credit of all three can be used for discharging IGST liability, whereas only credit of IGST & CGST can be taken in CGST Act and that of IGST & SGST can be taken under SGST Act. Further the credit of CGST & SGST cannot be cross-utilized.

There are 30 questions answered by writer of this article and all of them are useful . Please read by clicking on following link

Link To Questions And Answers on Input Credit By Profit Books

All you wanted to know about...input tax credit-Hindu Business Line- 5th June 2017 

by SRI PARVATHA VARDHINI C

June 5, 2017:  

The GST (Goods and Services Tax) and its army of terminology are briskly marching through media space these days. One such much-bandied about term is ‘input tax credit’.

What is it?

You can’t punish a man twice for the same crime, says the law. Shouldn’t the same principle apply to taxation of goods and services? Enter ‘input tax credit’. The basic premise is that taxing the same thing twice is not fair.

So, to avoid double taxation on items used as inputs to make other items, credit of taxes paid on the inputs can be taken by the maker of the next item while paying tax on the output. If the tax paid on inputs is higher than the tax on the output, the excess can be claimed as a refund.

Input tax credit is also available to traders on goods bought for sale/resale, besides a few other cases such as goods bought for use in works contract.

Currently, input tax credit is available for taxes such as excise duty, VAT (Value Added Tax), CST (Central Sales Tax) and service tax. But there are several ifs and buts as to which of the taxes can be set off against each other.

Why is it important?

The integration of several indirect taxes under GST will make life easier for companies and businesses when it comes to claiming input tax credit, as it is expected to be seamless.

Currently, they cannot take credit for some of the taxes they pay, against the final produce. For example, consumer companies which spend quite a bit on advertising will be able to offset the tax paid on this under GST. This is not allowed under the existing law.

Secondly, the GST rules for claiming input tax credit has been tightened to avoid frauds or revenue leakage for the government. Among other rules, the buyer cannot get input tax credit unless the supplier has actually paid the relevant tax or claimed input credit. Input tax credit provisions also become important during the transition to GST.

For traders/retailers who may not have proper documentation of the payment of tax on inputs, only 40 per cent credit will be given for stocks in transition. The credit will be higher at 60 per cent if the item falls in the 18 per cent or 28 per cent GST rate bracket, as per the decision taken at the recent June 3 meeting of the GST council.

Why should I care?

Primarily because the goods and services you buy could get cheaper. Without input tax credit, there is a ‘cascading’ effect of taxes. That is, tax is levied on the entire value of intermediate goods and services. Under GST, credit of tax already paid should reduce the tax outgo and the final price of the product or service.

Seamless availability of input tax credit for goods and services will also help shareholders. It will ease up cash flows and result in better efficiencies for businesses. This will aid savings and more effective deployment of resources.

The Government benefits too, as strict rules to prevent fraudulent input tax credit mean that it can get more in its revenue kitty. In short, if it works to plan, the input tax credit can be a win-win-win.

The bottomline

It’s always a good idea to give credit where it is due.

How you will get input credit on stock as on 1st July 2017

Moving to GST: Can I Avail Input Credit on Closing Stock?

Transition provisions in GST have undergone significant changes in the Revised Draft Model GST Law published on 26th November 2016. This post has been updated with changes in the revised draft law.

On the date of transitioning to GST, broadly there will be business who fall under any of the following categories:

1. Businesses not liable to be registered under the current law, but are liable for registration under GST
2. Business which are engaged in the manufacture or sale of exempted goods or services
3. First stage dealer or a second stage dealer or a registered importer

Link To Article published in Blogs.tally solutions.com

60.5 lakh entities enrolled with GST network: Hasmukh Adhia-Deccan Herald-11.05.2017

Ahead of the Goods and Services Tax (GST) rollout on July 1, Revenue Secretary Hasmukh Adhia on Thursday reviewed its IT preparedness. He said 60.5 lakh entities have enrolled themselves with the GST network system.

Adhia said the government will open registration for the remaining taxpayers for 15 days from June 1.“As on April 30, 2017, when Phase-1 of enrolment was closed, 60.5 lakh taxpayers, out of 84 lakh had enrolled. The enrolment window will be re-opened for 15 days from June 1, 2017, to give another opportunity to taxpayers to enrol,” Adhia said in a statement.

“Out of 62,937 tax officials, 24,668 tax officials have been given hands-on training on the application software on live system, while the remaining officials will be trained by June 15, 2017. The training is being conducted on registration, returns and payment modules developed by GSTN,” he said.

GSTN is also conducting a pilot on GST system software till May 15, where 3,200 taxpayers drawn from each state, union territory and the centre will be participating. 

The pilot covers all the three modules, and is being run to give the taxpayers first-hand opportunity to work on the live system as the creation of return has become an interactive process.

The feedback from the pilot will be used to further improve the GST software, Adhia said. The government is holding the last GST Council meeting on May 18-19 to approve the fitment of rates for all goods and services to be taxed under GST. The meeting will be held in Srinagar.

GST: Input tax credit limit on existing stock raised to support transition period sales-05.06.2017

GST Council has raised the limit on input tax credit against excise duty payment to 60% from 40% of GST liability on items with tax rate above 18%, bringing some respite on sale of inventories stocked up before the implementation of the new tax regime on July 1.

Link To Financial Express

There is a lot of discussion around Goods and Services Tax (GST) and the impact that it may have on small and medium businesses. Large enterprises are already preparing themselves for the change that they may have to make in their current system to comply with the new GST regime. There are, however, certain doubts among small and medium enterprises (SMEs) on preparation required for a successful transition into the new tax regime.

Most of these doubts and concerns on requisite preparation were raised in a recent forum organized by the Institute of Chartered Accountants of India and have to do with how input credits will be transferred from one VAT or Service Tax to GST. In this article, we will see how SMEs must prepare themselves for the migration to the new tax structure from the current one.

Read full article on following link

How to Migrate existing Input credits