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
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: