HAVE YOU TAKEN YOUR TRANSITIONAL MEASURES?

2017

The transition to GST has to be precisely planned by the industry with an aggressive approach. It would be easier to implement the required activities in a phased manner. The management can start by understanding the critical areas of impact in their business models and can also prepare different scenarios for the design and application of GST. The exercise of changes will be vital and will have to be managed through robust program management. This will further need the involvement of the company stakeholders and the representatives of the entire value chain.

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The GST is likely to address the disobedience in the trading sector. GST will increase the Competitiveness and will bring the trading sector at par with the manufacturing industry. GST will impact corporations, all the business in India, with commendations to cash flow, cost accounting, tax accounting, supply chain, and even the technology will be used to maintain the current tax ecosystem. To get better GST implementation, training is the key personnel in the company under the new regime.

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If extraordinary efforts are required to thoroughly plan and execute the new business model under the restriction of GST law. The corporates, company, or organization can make a start by understanding the key to areas of impact in their business models and preparing different scenarios for the design and application of GST.

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The program management includes budget management, quality assurance, integration, and timely communications. For GST compliance, these services will have to be explored and outsourced.

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If a list of transitional issues list is to be made, it will look like this:

• Attaining Registration certificate

• The transition of Central Value Added Tax (CENVAT).

• Taxation on the overlapping transaction

• Transaction on a continuous supply of goods or services.

• Transferring of Assets

• Price Limit, monitoring, and revision due to change in tax format.

• Sales return in the GST regime and disposals made during the current system.

• Filing returns

• Treatment of covered transactions covered under purchase tax.

Since the GST bill has provisioned for taxation at Centre and State Levels. The companies have to handle a file for those who are registering online for Centre and State GST. If a product is sold in more than one state, then it would be necessary to manage multiple SGST registrations. The existing registration certificates may be continued for the filing of assessments, returns, appeals, and refunds, etc.

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All the companies who have opened up a warehouse in more than one state to save the CST will have to decide on their closure. For the registration of GST, it would require the declaration of establishments that are in operation. This checklist can help the organization to be prepared for the GST in less time and avoid getting caught off guard.