Goods & Services Tax

 PRESENTED BY -
CS UDIT JALAN
CEO, FILE IT INDIA
 WHAT IS GST (Goods & Services Tax) ?

Central

CGST
 Excise

Entry Service
Tax Tax

GST
GS
T
SGST
IGST
Entertainment
Tax VAT

Luxury
Tax

Single Tax which replaces multiple tax Types of GST

 How to maintain
What is GST ? E Way Bill System
GST in your ERP ?

Advantages & How to Experience a

Input Tax Credit
Disadvantages ? Relaxed GST Era ?

Types of GST
Returns and its GST Rates Issues In GST
applicability.
GST, A Curse or Boon ?
 ADVANTAGES OF GST
Elimination of Cascading effect of Tax
• GST brings indirect taxation under one umbrella
• Cascading effect means Tax on Tax which prevailed earlier is now eliminated

Ease of Doing Business

• GST brings a uniformity in process and centralized registration helps in starting a business and expanding in different states much more simpler
• It has reduced the compliance yet making taxation transparent with digital tax processing
• Example – Input Service Distribution.

Easiness for Small Businessmen

• Example – 20 Lakh Limit
• Composition Scheme for TO up to 1 Crore (Proposed 1.5 Crores)
• Quarterly filing of returns for TO up to 1.5 Crore (Proposed 5 Crores)

Huge Job Creation

• With the increased compliances the need of an hour is the efficient person to handle the accounts and compliance

Converting Unorganized Sector into Organized Sector

• Example – Footwear Industry / Leather Industry / Saree & Suits Industry etc
• This has brought in accountability and regulation to these footwear industries.

Easy way to generate E Way Bill

• With GST ERA you can generate E Way Bill while sitting at your office
 DISADVANTAGES OF GST

Increased Working
Capital Cost for Job Work
Advance Planning
inverted tax Compliance
persons

Small partners
Fully Online Need to have
may not willing to
Platform dedicated team
come under GST
GST RETURNS and DUE DATES
Types of GST Returns

Miscellaneous
For Regular Dealers For Composite Dealer
Returns

GSTR 3B GSTR 4A GSTR 5 - NR

GSTR 1 GSTR 4 GSTR 6 - ISD

GSTR 2 GSTR 9A GSTR 6A - ISD

GSTR 3 GSTR 7 - TDS

GSTR 9 GSTR 7A – TDSC

GSTR 8 - EC
 RATES OF GST

Non GST Exempted Taxable

0%
3%
NIL RATE (Normally for
(Bullions)
Exports)

5% 12% 18% 28%

 GST Paid on Purchase of Car by a Jute Manufacturer

GST Paid on purchase of car by a Car Hire Agency

GST Paid for Insurance of Office

GST Paid for Insurance of FACTORY

GST Paid to OLA / Uber Services

GST Paid on Flight Tickets

GST Paid on Food and Beverages for Business Associates

GST Paid on Purchase of AC installed at Director’s Home

GST Paid for AC installed at Office

 INPUT TAX CREDIT (ITC)
 You can take ITC for Goods & Services which are being used or Intended to use in the course or FURTHERANCE OF BUSINESS,
subject to section 17(5).
 Section 17(5) – ITC Cannot be availed on the following Inputs
 Motor Vehicles & other conveyances except under specified circumstances
 Works Contract Services when supplied for construction of immovable property (other than Plant & Machinery)
except where it is an ITC for further supply of works contract
 Goods & Services received by a taxable person for construction of immovable property on his own account (other than Plant & Machinery)
even if it is in Furtherance of Business
 Goods & Services on which tax has been paid under composition scheme.
 Goods & Services used for private consumption, to the extent they are so consumed
 Goods lost, stolen, destroyed, written off, gifted, or free samples
 Any tax paid due to short payment on account of fraud, suppression, mis-declaration, seizure, detention.
 Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, except under specified circumstances
 Membership of a club, health and fitness centers
 Rent-a-cab,

 life insurance, health insurance except where it is obligatory for an employer under any law
 Travel benefits extended to employees on vacation such as leave or home travel concession
 HOW TO MAINTAIN GST IN YOUR
ERP
All the Ledgers shall be under the head Duties & Taxes in?Liability side of the Balance Sheet.
Maintain separate ledger of every singe rate with Output / Input.
Example – Output CGST @ 2.5%, Output SGST @ 2.5%, Output IGST @ 5%
Input CGST @ 9%, Input SGST @ 9%, Input IGST @ 18% etc.

Maintain a GST Control A/c by whatever name called like

CGST Payable A/c, SGST Payable A/c & IGST Payable etc.

At the time of Filing of GSTR 1 (But voucher date shall be the last date of the relevant month) transfer
all the balances lying in ALL the Output Ledgers to the respective control A/c.

At the time of Filing of GSTR 3B (But voucher date shall be the last date of the relevant month)
transfer all the balances lying in ALL the Input Ledgers to the respective control A/c and make the
payment of the balancing figure from GST Control A/c.

Also maintain a ledger names Ineligible ITC under Duties & Taxes the balance of which shal be
transferred to PL A/c at the end of the month

What to do if any bills are entered for previous months ?

HOW TO EXPERIENCE AN ERROR FREE GST ERA ?

GST COMPETENT ACCOUNTS TEAM – Proper knowledge and training should

be provided to the accounts team about GST from time to time with Amendments.

Configure your ERP Properly in accordance with GST Environments

Warming
Up Re-check the HSN Code and GST Rate on the outputs and Inputs at the time of
ERP Configuration

Always maintain a separate file for the pending invoices yet to be entered
 HOW TO EXPERIENCE AN ERROR FREE GST ERA ?
Follow up your suppliers with Mails to send the invoices
maximum by 5th of the next month.

At the time of entry it should be taken care of that which ITC are
allowable and which are not and entry shall be made accordingly

Continuing Most Importantly – The Accountant shall check that their GST
Processes Number has been written in the Suppliers Invoice

The accountant shall see whether proper head, HSN Code and
rate has been charged in the suppliers Invoice at the time of entry.
Ex – Inter State Transaction but CGST & SGST

Make monthly/ Quarterly Reconciliations between GSTR 3B &

GSTR 1, GSTR 2 and ERP, GSTR 2 with GSTR 3B, ECL with
GST Control A/c
 HOW TO EXPERIENCE AN ERROR FREE GST ERA ?

Proper verification of all the entries with the invoices before filing the return.

Check in the Pending file if any invoice in pending for entry

Scrutinizing
Always cross tally the figures with the ERP before filing like – Monthly sales
figure etc

In case of payables, always first pass the closing entries and then pay the
balancing figure lying in the Control A/c
 HOW TO EXPERIENCE AN ERROR FREE GST ERA ?

Establishing an Internal Audit System for Quarterly GST Audit

Always process GST Return filings from a professional firms

specializing in GST.

Keep track on the invoices for which ITC has already been claimed
and make sure the payment has been made within 6 months
Master
Stroke
Keep track on the parties whose invoices are not reflecting in GSTR 2

Having monthly planning of management and working capital

Have File IT India in your team for the best results

 Issues In GST ?
 How to maintain GST in our ERP ? – Already Discussed
 What to do if Previous months invoice entry has be done.
 Credit Note / Debit Notes
 Discounts Allowed
 Wrongly shown as B2C (GSTN not provided)
 GSTN entered wrong
 Figures entered wrong in GSTR 3B
 Amount entered wrong in GSTR 1
 Supplier Invoice not reflecting in GSTR 2
 Refunds under GST
 Reverse Charge Mechanism
CS UDIT JALAN
CEO, File IT India
CFO, Taaza Tv
CONTACT - +91 91774
18773
EMAIL –
udit@fileitindia.in

For Getting Regular GST