GST Compliances: Challenges and Opportunities – IT perspective: GST regime would introduce a uniform taxation law across states and different sectors in respect to indirect taxes which would make it easier movement and supply of goods and services hassle free across the country. This will also help in removing economic distortions, promote exports and bring about development of a common national market. Under the GST regime, all existing assessees under Central Excise, Service Tax and VAT are required to migrate to the GST. With a view to support the Government’s initiative of smooth migration and to assist the assessees. Now check more details for GST Compliances from below…
GST Compliances
Business Functions & Compliances – Key GST Aspects
- On what you pay GST
- Where you pay GST
- When you pay GST
- Treatment of credit notes
- On what you get input tax credit
- On how much value you pay GST
- Treatment of outsourcing
- What are exempted
- Classification of goods / services
- Transition provisions
- Changes in record keeping
- Documentation requirements
- Number of registrations
- How tax is to be computed
- Filing of returns
- Audit requirements
IT Systems – Key GST Aspects
- Registration Configurations
- Master Changes
- Tax Computation
- Configuration changes
- Accounting related changes
- Input Tax Credit configuration
- Transactional configuration
- MIS reports
- Changes in Interfaces
- Transition Reports
- Reconciliation Reports
- Document Formats
- Business Rule Changes
- Compliance Reports
- Filing of returns
- Audit requirements
Module Level Changes due to GST
Finance
- General Ledgers
- A/c. Receivables
- A/c. Payables
- Invoicing / Billing
- Voucher
Procurement
- Purchase Orders
- Invoicing
- Debit/Credit notes
- Pricing Conditions
- Info Records
Sales & Distribution
- Sales Order
- Invoicing
- Pricing conditions
- Info records
- Debit/Credit notes
- Sales Area
Masters
- Material
- Services
- Customers
- Vendors
- Chart of a/c.
- GL’s
Reporting
- Tax Registers
- MIS Reports
- Compliance reports
- Stat Reports
- Interfaces
Broad Level Changes in Process & Product
| New Fields | New Disclosures and presentation information would need the data fields for capturing the information. For e.g. HSN Codes, Place of Supply |
| Changes to the COA | Changes to chart of Accounts will be eminent |
| Configuration changes | There will be changes in business rules and general configuration in the system. E.g. Reverse Charge calculation in case of procurement from unregistered dealer |
| Interface changes | Data coming from other systems will undergo a change |
| Reporting changes | Reporting will change a lot to generate new reports related to GST and Reconciliations |
| Process Redesign | Process would need to be re-designed For e.g state-wise registration (service companies), change in Supply-chain |
| System Scalability & Architecture | While the new design is being accepted, the long-term vision and the dynamically changing requirements needs to be considered |
| Risk Management and Governance | It is necessary to also check the current Enterprise Risk Management Matrix and make required changes, due to process re-designing |
| Change of Software? | If the existing system is inadequate for GST reporting and accounting, it may be necessary to implement a new solution |
GST Returns….some of then
| Return Form | What to file? | By Whom? | By When? |
| GSTR-1 | Details of outward supplies of taxable goods and/or services effected | Registered Taxable Supplier | 10th of the next month |
| GSTR-1A | If recipient make any changes in GSTR 2, it will again auto populate in GSTR1A and supplier can take actions | Registered Taxable Supplier | 17th of the next month |
| GSTR-2 | Details of inward supplies of taxable goods and/or services effected claiming input tax credit. | Registered Taxable Recipient | 15th of the next month |
| GSTR-3 | Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax | Registered Taxable Person | 20th of the next month |
| GSTR-4 | Quarterly return for compounding taxable person | Composition Supplier | 18th of the month succeeding quarter |
| GSTR-5 | Return for Input Service Distributor | Input Service Distributor | 13th of the next month |
| GSTR-9 | Annual Return | Registered Taxable Person | 31st December of next financial year |
GST Some Food for GST
- Back dated entries control vis a vis return filing date (No revised return allowed)
- Contractual vs Fair Value (IND-AS), ICDS
- Home-grown applications on old technologies
Goods and Services Tax Compliance Rating
Compliance rating system is one of the new ways of tax administration. This Section states that every taxable person would be rated based on certain parameters. It also provides that the rating would be published in the public domain.
- (1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act.
- (2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed.
- (3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.
Analysis
The compliance rating is a unique form of rating the performance of the taxable persons. The parameters which would be considered for performance rating would be as prescribed.
Amongst others, the rating of a taxable person would be relevant to determine the eligibility of input tax credit in respect of inward supplies, selection for scrutiny and other administrative / monitoring purposes.
This Section provides as follows:
- Every person liable to pay GST shall be rated and will be assigned a GST compliance rating score.
- The rating would be based on his record of compliance with the provisions of CGST, IGST and SGST. The details of parameters and methodology for rating would be as prescribed.
- The compliance rating score will be updated periodically and will be intimated as follows:
- to the taxable person;
- will be placed in the public domain.
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