GST: What to do now and how to do?

CA. Dau Daga
on 01 July 2017

India is going to implement GST from 1st July, 2017. Everyone is confusing what to do now and how to do. In this regards, at this moment these two things are most important

WHAT DO YOU NEED TO DO NOW
HOW TO TAKE CREDIT OF CLOSING STOCK IN HELD ON 30TH JUNE 2017

WHAT DO YOU NEED TO DO NOW

Allocate your stock into quantitative details find HSN code (up to six digit) as well as Invoice wise also as on 30th June.
Get Account statement from your debtors and creditors and reconcile it
If there are any Mis-match in your VAT returns then correct it immediately and revised your returns
Collect all your "C" forms, "H" forms and "F" forms immediately
Finalize your books of account up to 30th June, 2017
Collect the tax documents of your closing stock and keep a Xerox copy of them in a separate file
Do the ageing of closing stock for 12 months
Create a manual to decide "PLACE OF SUPPLY" of your business supply
Classify your all kind of stock in different kind of rate wise
Keep ready HSN code wise list of all your Inward supply and Outward supply
Collect the GSTIN of all your vender and give your number to all your clients
Do complete analysis of your Profit and Loss account for attracting RCM provision
Keep final your Invoice format and keep ready your Bill Book according to new law
Keep update your I.T. System fast computers, internet, as well as update your accounting software
Anti Profiting clause Pass profit to your customers
All your Inward supply must be from registered supplier
Keep in mind that ITC of CGST and SGST of own state is allowed, IGST is allowed, but CGST and SGST of other state is not allowed
ITC must be reversed if invoice is not paid within 180 days. Interest is also payable on the same
ITC relating to supply commonly used for exempted as well as taxable supply- credit must be reversed proportionately
Two type of sales Invoices
1 TAX Invoice: if supply is taxable
2 Bill of Supply: if supply is exempted
Receipt of Advance, GST Payable
RCM: invoice and payment voucher to be issued
Collection of late fee or Interest on account of delayed payment: GST apply on Interest/ late fee. Supplementary invoice must be issued
Issue of debit note/ credit note
Loading, unloading, local freight attract same rate as supply due to composite supply

HOW TO TAKE CREDIT OF CLOSING STOCK IN HELD ON 30TH JUNE 2017

For easy understanding we can divided all provisions into 3 parts.

REGISTRED UNDER CENTRAL EXCISE AND SERVICE TAX
REGISTRED UNDER VAT ONLY AND HAVING STOCK OF EXCISE PAYING INVOICE
REGISTRED UNDER VAT ONLY AND DOESN’T HAVING STOCK OF EXCISE PAYING INVOICE

Now we understand all these in details.

REGISTRED UNDER CENTRAL EXCISE AND SERVICE TAX

Closing CENVAT will be opening ITC in GST
Credit must be allow in GST regime also
File GST TRAN-1 within 90 days
All returns of last 6 months must be
Central TAX Credit will be CGST, VAT Credit be SGST
Credit will only be used for payment of GST Tax, not interest or late fee
Timely collect your "C" forms and "H" forms

REGISTRED UNDER VAT ONLY AND HAVING STOCK OF EXCISE PAYING INVOICE

Not applicable for composition dealers
Any closing stock of having excise paying documents get 100% CGST Credit in Electronic Credit Ledger of CGST
Goods must be taxable in GST
These invoices are not older than 12 months

REGISTRED UNDER VAT ONLY AND DOESN’T HAVING STOCK OF EXCISE PAYING INVOICE