GST related certain important points to noted are :
# GST will 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.
# 3 forms on different dates have to be submitted every month
GstR1 form on 10th
GstR2 form on 15th
GstR3 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 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 Company A is selling Jam for ₹150 & Company B is selling the same Jam for ₹120. (Same quantity, flavour, ingredients etc.) Then Company B 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 be carry forwarded to GST.