These transactions will be most affected by GST. Integrated Goods and Services Tax (IGST) model of taxation has been adopted for interstate transactions where Center would levy IGST which would be CGST plus SGST. Make sure that you thoroughly understand and bifurcate your transactions. This will help you in understanding the overall impact of GST on your business.
After classifying the goods and services related transactions, recognize which provisions will be applicable to them. GST is a just broad topic which comprise of many provisions for various goods and services. These provisions differ with location, industry and type of commodity. Thus, identifying what will be applicable to your business beforehand will take you a step further in GST compliance.
GST is surely going to change almost all your processes - be it manufacturing, trade or supply chain. Reorganized manufacturing plants and warehouses would reduce the primary freight charges. GST would eliminate the existing penalties on interstate sales transactions and facilitate the consolidation of vendors and suppliers. Before GST sets in, make a calculation of how your various functions are going to change and operate.
GST is a destination based tax. There will be a greater impact on logistics and the charges/taxes levied. After GST implementation, your warehousing and logistics decision will be based on economic efficiency such as costs and locational advantages vis-a-vis key customers. You may have to strategize your supply management strategies in a manner that minimizes cash flow impact.
Should you charge GST to your customers on the items or services you provide? Would your pricing still be competitive? All such questions are going to affect the selling price of your goods and service, discounts and returns you provide to your customers and other such pricing policies. Defining your sales policies in compliance with GST will help you maintaining your profit levels and customers.
Make the required amendments in your current POs and contracts. It is advisable to define the terms and conditions to meet GST requirements. will make your work easier in the future.
Contract terms, not only with your customers but also with your suppliers need to be revised. With GST regime, the supply chain network design would be more flexible. GST would lead to club many small warehouses and have bigger, fewer, and highly efficient warehouses. Thus, changes have to be made in contracts with your current suppliers at various places. Make sure that you review your suppliers, what and where they supply and the mutual contracts.
Our EXPERT team is here to help you navigate this change.
With the completion of more than one year since the introduction of GST, it's critical to start focusing on various compliances such as input and output reconciliations, preparation and filing of annual return and GST audit certification. All of these compliances will form an important basis for the first audit/scrutiny/assessment under the GST law. The law prescribes multiple audits conducted by the authorities, an external auditor appointed by the authorities or audit certification by a person appointed by the company.
The following are the audits which companies should be prepared for:
1. Audit by commissioner under section 65 of the CGST Act, 2017
2. Special audit in terms of section 66 of the CGST Act, 2017
3. Audit as part of the annual return process by an external Chartered Accountant (in Form 9C and 9D - draft submitted by the ICAI)
It's important that companies start preparing for these audits in order to avoid any loss of credits, applicability of interest/penalties, etc. Some of the key aspects to be considered by companies are as follows:
Now is the perfect time for companies to ensure that they are well prepared for all the audits to be conducted by the authorities.
The solution is aimed at automation of month-end tax compliances and reporting and provides options for interfacing with multiple ERP environments:
All this and more backed by a strong team of RSNA's indirect tax and technology professionals to provide implementation and ongoing support for the compliance solution.
There are so many complicated provisions of the law that if an enterprise tries to handle everything on their own, then they are more likely to make mistakes. RSNA will help the businesses understand GST in a better manner so that they will be able to focus on their business rather than tackling GST issues. To prevent any business disruptions in the beginning and ensuring that no business is lost and fool-proof GST compliance is achieved, businesses should definitely choose RSNA. Now is not the time to be passive and adopt a proactive approach.