Introduction

The Goods and Services Tax (GST) is a broad based, single, comprehensive tax levied on goods
& services consumed in an economy. GST as envisaged by the Central Government is a single
uniform indirect tax which will treat India as one market. It is aimed to remove all the tax
barriers between states and create a unified market by merging all the existing taxes into a
single system of taxation. It has also been revealed that the returns and registrations under the
GST regime will be done online. ProTACT's GST Compliance Solution is a complete web-based,
workflow driven solution to ensure that your adaptibility to the new regime is smooth and easy.
Our solution has a user-friendly and interactive interface with latest technology to ensure full
compliance and provide you with a seamless experience. With this solution available at your
end, you will be able to    Know Tax Rates   Generate Invoices   File Returns   Pay Tax   Claim
Refunds   Download data from GST.

Meaning of compliance management

Compliance management is ensuring that policies and procedures are followed in accordance
to their set up. Convercent can manage all aspects of your compliance initiatives in one easy
and simple to use interface.

Tax compliance is a global issue for developed and developing countries. Tax revenue is crucial
to funding government spending on the provision of public goods and services. Hence,
enhancing tax compliance is an important objective for governments and tax authorities. From
a government's view point, taxation is an important economic tool that can be used to generate
economic growth and provide funds for national development projects . These objectives can
be achieved if taxpayers voluntarily comply with their tax obligations, thus generating higher
tax collection and reducing tax gaps. In many countries, one way to achieve voluntary
compliance is through introducing a self-policing tax system or a self-assessment tax system.
The implementation of self-policing in the Goods and Services Tax (GST) system in Malaysia and
also in other countries is to increase voluntary tax compliance, reduce administrative costs and
simplify the tax structural system (Khadijah, 2014).In a self-policing GST system, the assessment
for tax liability lays with the GST registered persons. A ‘registered person’ is a person who is
registered under the Goods and Services Tax Act 2014. Under the self-policing GST system,
many GST registered persons are unaware of their responsibilities, particularly in ensuring
accurate payments when filing GST returns and the consequences of submitting incorrect
returns. Hence, issues concerning GST registered Revised Manuscript Received on 04 May2019 .

Importance of Gst compliance management

India’s complex indirect tax structure became simpler and integrated with the new tax reform-
GST. Experts believe that the Indian economy will get a boost with the cascading effect of GST
in the long run. The successful GST implementation with a unified tax structure across diverse
Indian regions is a daunting task, especially when not all Indians are completely yet aware of
the benefits and processes related to GST.

To simplify and automate processes related to GST filling and adherence, a GST software is a
must for all industries so that the new tax process doesn’t divert them from their core business
processes. This article will elaborate few reasons why businesses should look out for a complete
GST solution which complies with all GST norms.

 Boosting Digitalization Process

Business automation is the call of the hour when the world is obsessed with containing cost,
better integration, and restructuring labor resources. Enterprise Resource Planning (ERP)
software is supporting the hard-core manufacturing companies fully, starting from making
entries till the billing stages. Software like ERP have already automated the business process
with transparency and visibility and a GST integrated ERP is almost an icing on the cake. Such
integrated software help in simplifying the tax filing process with fewer complications. The
entire package of GST integrated ERP boosts the digitalization process with secure database
storage and easy online transaction.

 Ease of Document Management

The document management processes including payments, registration, warning notice, return,
and refund under GST is completely digital. Thus, adopting online documentation
management for this new indirect tax regime is necessary. This calls for making your business
ready with a GST automation software to solve the problems that may occur during when
companies replace their old indirect tax system with the new one.

 Compliance is of the Most Importance

Compliance reform is a major part of new GST reforms in India. Small and medium
manufacturers are finding it difficult to adopt the post-GST effects like destination based tax
rules, multi-states conformity, and the unveiling of the new tax structure. Thus, GST integrated
ERP or custom GST compliance software will not only help the companies in meeting the new
regulations but also support in maintaining correct financial records.

 GST will ensure more Systematization

GST will make the existing undisciplined goods and service movement more systematic while
revamping the indirect taxation process. But the businesses need to adopt a GST ready ERP
system to take pleasure of this new systematic process.

 Data Security

Complete data security is the most critical aspect of the today’s digital world. No matter how
you store your data in the cloud and purchase the most expensive antivirus software, smart
hackers finally end up stealing your data by pushing the entire system into danger. Thus, buying
a safe web-based GST software is a brilliant choice to run your business in the bright light of the
new system.

 Flexibility is Important

Many small, medium and large companies have already adopted the ERP system to automate
their business processes. In such scenario, establishing completely new master data in a
different GST software is a critical issue. Thus, the GST billing software should be flexible
enough to integrate with the existing system to offer a seamless experience. In such cases, the
stand-alone GST software will only increase the business operating cost.

 Artificial Intelligence will make the complex system Easy-To-Use

Although GST is offering a unified tax system in India, certain processes have become more
complex. A taxpayer who is registered in one state will have to file thirty-seven tax returns in a
financial year. Nowadays, many businesses have global partners and network in pan India level.
As, for example, if a company has branches in all the Indian states, it will need to file 37* 29 (29
states) =1073 tax returns in a single financial year! This is why every business needs a GST
automation software to keep your operation running by making these tedious filling process
easy.

 Developing Forward

Experts have predicted that after some months from now onwards compliance with GST will be
costlier but staying without compliance will cost the companies more. It is a call of the hour for
the business houses to understand this biggest tax reform of the country and equip their
business with required GST automation software to enjoy the long-term positive effect of the
new tax structure. ERP is also here to offer a helping hand to address all GST compliances with
ease. Thus, a complete solution on GST is available with better integration with your existing
ERP or accounting system.

GST compliance for event management industry

Event Management is a kind of industry where almost every event is different from the
previous one, where each event requires something new on the plates. And the place of the
event can be anywhere in India and abroad. This makes the Event Management Industry more
complicated when it comes to the GST compliances. Any non-compliances may lead to the
monitory outflow in the future. And the situation may get even worse when the company is not
aware of its non-compliances Below are the few points for the better GST compliance in the
Event Management Industry:

1. As it’s a service industry firstly we need to unlearn lots of things which were prevalent in the
Service Tax Regime be it registration, record keeping, booking CENVAT Credit, Accounting
System etc

. 2. The place to supply and the place of registration shall be same to book the credit in the
books of accounts. If they differ absorb the tax component in the bill as cost.

3. Issue the Invoice, Debit/Credit Note, and Receipt/Payment/Refund Voucher as per the
requirement. Any miss may lead to the non-compliances.

4. GST being the consumption-based taxation. Hence each state where the event is held will get
the tax revenue. Hence, mentioning the place of supply in the invoice is the key.

5. Place of supply is the Key which tells us which state will get the tax revenue. Hence
mentioning the place of supply on the invoice is of prime importance. Any mistake in this may
lead to further outflow from the company especially when refund is not processing as smoothly
as they should be.

6. If the size of the event exceeds the specified limit in the non-registered state then
registration shall be obtained to book the credit of that particular event.

7. Change your accounting system to bring concept of the monthly closing of the books of
accounts that makes backdating of entries difficult

8. If the company has the registration in more than one state the compliances related to the
Input Service Distributor shall be followed.

9. Keep on reconciling the credit booked in the books of account with the same reflecting on
the online portal.

10. If the credit is not reflecting on the online portal the same shall be absorbed as cost.

11. Generate the e-waybill if the goods are transporting from one place to the other place.

gst compliance for online sellers

India’s e-commerce market is estimated to have crossed Rs. 211,005 crore in December 2016 as
per the study conducted by Internet and Mobile Association of India. The report further claim
that India is expected to generate $100 billion online retail revenue by the year 2020.

The uprising of Electronic Commerce in India has also resulted in conception of online
marketplaces. A Marketplace is an e-commerce platform owned by the E-commerce Operator
such as Flipkart, Snapdeal and Amazon. Some of the features of a marketplace model are-

 Marketplace enables third-party sellers to register and sell online on their platform.
 Marketplace charges a subscription fees/ commission on sale value from listed sellers.
 Third-party sellers under this model gain access to a larger customer base, registered
with marketplace.
 Customer on the other hand gain access to multiple sellers and competitive prices for
desired products.
 Items purchased on such marketplaces are either shipped by Merchant/Third-party
seller directly or through the fulfillment center managed by Marketplace Operator.

Government has also allowed Foreign Direct Investments under such model to promote e-
commerce marketplace business model in India.

Marketplaces has provided retailers with additional channel of sales and reach which was
unimaginable for an offline seller. Major marketplaces claim to have lacs of sellers affiliated
with their platform with millions of SKUs. While the number of sellers and their business have
increased significantly, GST has specifically taken up marketplaces and has come out with rules
& regulations specific to this segment. 

Introduction of these regulations requirements has compelled the online seller community to
embrace GST regime. Some of these compliance are:

No threshold for GST registration:

 Government has specified a threshold limit for all the businesses. A business is liable to register
for Goods and Services Tax once such threshold limit is breached. Click hereto read more about
threshold limits under GST. However such limit is not applicable in case of E-Commerce
sellers.e-commerce sellers need not register if total sales is less than Rs. 20 lakh. Notification
No. 65/2017 – Central Tax dated 15.11.2017.
No Benefit under Composition Scheme: Most of these sellers registered with marketplace
operators are small and medium businesses. Government has introduced composition scheme
under GST law. This scheme is primarily aimed to reduce the burden of compliance for small
and medium businesses. Under this scheme, businesses are required to file returns quarterly
instead of monthly and pay taxes at nominal rates up to 2%.

However GST law has explicitly excluded e-commerce businesses from this scheme.

Tax Collection at Source by Marketplace Operator: Under the new tax regime, marketplace
operators are mandatorily required to deduct a percentage amount as the GST liability of seller
and deposit it with government. This mechanism is being termed as “Tax Collection at Source
(TCS)” under  the GST law. Eventually the marketplace seller will have to file monthly return
under GST to claim the credit of TCS collected by the marketplace operator. This will also
impact the liquidity and cash flow of these sellers.While all the marketplace operator have
already completed the first level analysis of impact of GST on their operations, marketplace
sellers are still unaware of these rules.

Need of the hour is to keep themselves aware of the changes that are going to come. Also such
sellers should now start planning their transition strategy for GST regime

GST for composition scheme

Getting registered under composition scheme is optional and voluntary. Any business which has
a turnover of less than Rs. One crore or 75 lakhs for the specified states can opt for this scheme
but on any given day, if turnover crosses the above-mentioned limit, then he becomes ineligible
and has to take registration under the regular scheme. There are certain conditions that need
to be fulfilled before opting for composition levy.

They are as follows:

 Any assessee who only deals in supply of goods can opt for this scheme that means this
provision is not applicable for service providers. However, restaurant service providers
are excluded.
 There should not be any interstate supply of goods that means businesses having only
intra-state supply of goods are eligible.Any dealer who is supplying goods through
electronic commerce operator will be barred from being registered under composition
scheme. For example: If M/s ABC sells its products through Flipkart or Amazon
(Electronic Commerce Operator), then M/s. ABC cannot opt for composition scheme.
  Composition scheme is levied for all business verticals with the same PAN. A taxable
person will not have the option to select composition scheme for one, opt to pay taxes
for other. For example, A taxable person has the following Business verticals separately
registered – Sale of footwear, the sale of mobiles, Franchisee of McDonald’s. Here the
composition scheme will be available to all 3 business verticals.
 Dealers are not allowed to collect composition tax from the recipient of supplies, and
neither are they allowed to take Input Tax Credit.If the person is not eligible under
composition scheme, tax liability shall be TAX + Interest and penalty which shall be
equal to the amount of tax.
 Persons who cannot opt for the composition schemeSupplier of service other than
restaurant owners(Serving foods and non-alcoholic drinks)Supplier of non-taxable
goodsIf the person in engage in the inter-state supply of goodsSupplier supplying goods
through E-commerce operator, who is eligible to collect TCSSupplier of tobacco, pan
masala, and ice cream.

Gst Compliance for Job worker

As per Circular No. 38/12/2018 issued as on dated 26-03-2018 in that mention Procedures to be
followed for sending goods for job work and the related compliance requirements for the
principal and the job worker.

As per Circular No. 38/12/2018 issued as on dated 26-03-2018 in that mention Procedures to be

followed for sending goods for job work and the related compliance requirements for the
principal and the job worker.As per Section 2(68) of the CGST Act, 2017, “Job work” means any
treatment or process undertaken by a person on goods belonging to another registered
person.The registered person on whose goods (inputs or capital goods) job work is performed is
called Principal as per section 143 of CGST Act.

The registered principal may without payment of tax send inputs or capital goods to a Job
worker for job work and if required from there subsequently to another job worker. Once
completion of the job work principal shall either bring back the goods to the place of business
or supply the same directly form the place of business/premises of the Job worker. If Inputs
within 1 year and Capital goods within 3 years.

Responsibility of keeping proper accounts of inputs and capital goods sent for job work lies with
the principal. If Inputs and capital goods are not written back within the period than it shall be
deemed to be supply by the principal on the day when the said inputs/capital goods were sent
out by principal.  Responsibility for sending the goods for job work as well as bringing them
back or supplying them has been on the principal.

Job worker in addition to the goods received from the principal, can use his own goods
for providing the services of job work.

Section 143 of the CGST Act are applicable to a registered person but it is optional for him to
avail benefit or not for registration. Only a registered person who can send the goods for job
work are registered.

Job worker is required to obtain registration only if his aggregate turnover to be computed on
all India basis in a financial year exceeds the limit (Rs. 20 lakh or Rs. 10 lakh in case of special
category states exept Jammu & Kashmir) in case both the principal and the job worker are
located in the same state.

If Principal and the job worker are located in different states which provides for compulsory
registration of suppliers making any inter state supply of services. However, exemption from
registration has been granted in case of aggregate turnover of the inter state supply of taxable
services does not exceeds Rs. 20 lakh or Rs. 10 lakhs in a financial year as per vide  notification
no. 10/2017 dated 13.10.2017

Job worker is required to obtain GST registration only in cases where his aggregate turnover to
be computed on all India basis in financial year exceeds the limit regardless of whether the
principal and the job worker are located in the same state or in different states.

Supply of goods by the principal from the place of business/ premises of the Job worker to its
end customer will be regarded as supply by the Principal and not by the job worker as per
section 143(1) (a) of CGST Act.

Section 143 of the CGST Act provides that the principal may send or bring back inputs/capital
goods for job work without payment of tax under intimation to the proper officer and subject
to the conditions.

Rule 45 of the CGST Rules provides that Inputs, Semi finished goods or capital goods shall be
sent to the job worker under the cover of a challan issued by the principal including where such
goods are sent directly to job worker. The challan issued by the principal to the job worker shall
contain the details specified in rule 55. Rule has been amended vide notification no. 14/2018 –
central tax dated 23-03-2018 to provide that a job worker may endorse the challan issued by
the principal.The principal is also required to file FORM GST ITC – 04 every quarter stating the
said details.

(1) Where goods are sent by principal to only one job worker :
(2) Where goods are send from one Job worker to another Job worker.

(3) Where the goods are returned to the principal by the Job worker: The Job worker should
send one copy of the challan received by him from the principal while returning the goods to
the principal after carrying out of Job work.

(4) Where the goods are send directly by the supplier to the job worker:

conclusion
Change is definitely never easy. The government is trying to smoothen the road toGST.It is
important to take a leaf from global economies that have implemented GST before us, and who
overcame the teething troubles to experience the advantages of having a unified tax system
and easy input credits.

Earlier, there was VAT and service tax, each of which had their own returns and compliances.
Under GST, however, there is just one, unified return to be filed. Therefore, the number of
returns to be filed has come down. There are about 11 returns under GST, out of which 4 are
basic returns which apply to all taxable persons under GST. The main GSTR-1 is manually
populated and GSTR-2 and GSTR-3 will be auto-populated.