Easy Office

GST Implementation Activity

Member (Account Deleted) Guest , Last updated: 25 August 2016  

GST Implementation

Reconciliation of Input Tax Credit / Cenvat Receivables between Return & Books of accounts

  1. All GR/IR needs to be closed on or before return filing for the month of Mar-17 under the existing Act.
  2. Detailed Reconciliation of Input tax credit receivables needs to be verified with the return & books.
  3. Collection of pending Import invoice & Pending CVD details in order to include the March month return.

Reallocation of Job responsibilities

As VAT / Excise / Service tax is subsumed into GST, the return is consolidated into one and needs to be filed monthly (Purchase return & Sales return, Final consolidated return). The main activity is narrated as follows.

  1. Responsibility for Return filing & tax computation with workings
  2. Generation of customized purchase report for CGST / SGST / IGST with the classification of requirement filed
  3. Generation of customized sales report for CGST / SGST / IGST with the classification of requirement filed
  4. Monthly reconciliation between report & GL before return filing ( all payables GL )
  5. Ensure the Input tax credit Receivables as per the return & Books should be same.
  6. If credit is disallowed due to non-payment of Tax by the supplier, monthly Tracking & follow-up.
  7. List of defaulters to be circulated on monthly basis & send mail to block those suppliers in SAP

(Defaulters in non-payment of tax, list of defaulters published by department)

IT Support

  1. Deactivation of Existing GL in FI Module
  2. New Ledger Creation (At present 6 GL)
  3. Invoice wise customized report for credit  ( Purchase / sales register , ITC Register )
  4. List of Scheme of entry to be passed monthly with responsible person name
  5. Fixing appropriate condition in MM for purchase module
  6. Fixing appropriate condition for sale of product in Supply chain module

Identification of Exempted Credit which is allowed under GST

Hitherto certain credit is not allowed, now the same will be entitled for credit under GST regime

  1. The exempted credit those are allowed under GST needs to be identified & listed
  2. Ascertaining the WIP / Closing stock lying at the year end
  3. Work out the credit portion pertaining to the closing stock through appropriate method
  4. Get permission from the Tax authority to avail the credit

Discussion points with Purchase department

  1. Educate purchase department to procure as much as from registered vendors. To avoid later litigation.
  2. Educate to understand the input tax credit wherever not allowed (after rules) by Accts Dept
  3. Ensure not to purchase from the tax defaulted parties  ( Default party list will be circulated by the accounts department on monthly basis)
  4. Master data updation with GST number / PAN number / Address.

Discussion points with marketing department

  1. Tax needs to be charged to the sale of SEZ unit ( but final confirmation will be known after rule )
  2. Educate to understand the tax incidence with percentage (after rules) by Accts Dept.
  3. Provide the product code (HSN) to the marketing department by Accts Dept.
  4. Master data updation with GST number / PAN number / Address.

Stores Department

  1. The invoice needs to be forwarded as and when the GRN is accounted, this will enable the accounts dept. to avail the credit.
  2. Identify wherever the credit is not allowed which needs to be included in the cost of inventory at the time of GRN
Join CCI Pro

Published by

Member (Account Deleted)
Category GST   Report

3 Likes   16609 Views


Related Articles