Action needed before GST

1. Advisory on GST Preparedness & Key Actions
A PRESENTATIONA PRESENTATION
BYBY
CACA N.RAMASWAMYN.RAMASWAMY

2. Registration details
 Companies to get GST Registration details from all
customers, suppliers, C&F agents, others and update in
their ERPs. Purchases from unregistered vendors would
result in loss in ITC. Supplies to unregistered customers
would not have any impact on the suppliers as these would
be treated as Business to Customer case. But customer
obviously would lose on the ITC.
 Companies can easily get the GST details of their
customers and suppliers through the link provided below:
Input is state and PAN number:
 https://services.gst.gov.in/services/check-
registration-status

3. Fix vendor GST Details, HSN, SAC
We must also inform our GST details to all our suppliers
to ensure ITC to us.
HSN Codes: Companies must circulate to all their
customer’s details of their entire product list along with
GST rates and HSN codes. It is very important that
company’s HSN codes tally with the respective suppliers
HSN codes, so as to ensure to seamless flow of credit.
SAC for Services have to be fixed in line with these codes
under GST regime
Invoice for supply of Goods and services must contain
HSN & SAC Codes . It is important to fix the HSN codes
and SAC ( Service Accounting Codes.

4. Sales & Inventory
 Companies must aim to close June ’17 sales in the period
21st
to 25th
and ensure that all stocks are physically
delivered to the stockists latest by 28th
/29th
June. This will
ensure that stockists are able to get their stock audits
done as of 30.06.17 and prepare the stock statement,
verified by their CA, ideally in the format of TRAN1. This
will also help in them uploading the details in the GSTN
for availing credit on the same.
 Subsequent to sales closing, inventory and purchases
including Third Party manufacturing purchases must
also be closed latest by 28th
, mis-matches if any be
reconciled and company stock statement as of 30.06.17,
certified by auditors in the TRAN1 format be also kept
ready for subsequent upload onto the GSTN.

5. Mismatch, Stock, etc
In case of any mis-matches noted above, to file revised
corresponding returns and resolve all noted existing issues as
of 30.06.17
Companies to Take the stocks on which ITC will be available
as of 30.06.17 separately in an easily identifiable manner.
All corresponding purchasing documents also stored
separately and easily accessible
Communicate its importance to Stockist and Consignment
agents where applicable..
Companies To ensure stocks as per RG- 1 Register and stocks
in system/ physical are tallied as on 30.06.17.

6. Transition issues
 Companies to try and register their CFAs / Depots
under Excise as First Change Dealers. This will allow
the stockists to claim 100% input credit against goods
received from the first change dealers from the date of
registration. This will reduce the burden of
reimbursement to the stockists
 Credit notes against market returns from customers can
be issued as per existing tax regime for a period of six
months i.e. upto 31.12.2017. So companies may continue
to issue credit notes in the existing manner.
 Companies, however to decide on actions to be taken
for pending customer claims as of 30.06.17.

7. Transition issues
 GST TRNS-1 is to be filed with in 90 days. There are
many areas that need careful filing.
 Closing Balance of credit as per existing return to be
filed and are eligible for carry forward subject
conditions like proper filing of returns for past 6 tax
periods. Ensure all returns are filed properly.
 Companies to actively follow-up on collecting
pending forms – F, C, H , I and others as applicable
and ensure that pending assessments get completed
at earliest. Forms pending have also to be filled in
GST-TRAN-1 ITC claim will be reduced to the
extend of pending forms to be claimed as refund
later. Up on submission.

8. Transition issues
 Unavailed credit in respect of Capital goods has
to be tied up, reconciled and taken in thorough
GST- TRAN-1. is in respect of Capital goods on
which 50% credit is taken both for Central
Excise and Vat .
 Review current Year Profit & loss Account to
determine Heads of Expenses that will
attract Payment of GST under R C M .
 Advances received from Customers before
30.6.2017 for supply of goods/ services to be
effected after 30.6.2017

9. Transition issues
 When covered by Exemption / fixed rate of
duty in the present regime, and liable to tax in
the GST regime , Transitional credit is available
by filling relevant column in the GST TRAN-1
 Credit is available on the basis of duty paying
documents or at such other % as may be
approved. If invoice is not available, reduced
credit will be available.
 Tracing, tracking and safe keep of invoices are a
must to avail credit in such cases.

10. Transition issues
 All the purchases of June should be accounted
in June itself. Restrict the purchases if possible.
 A registered person shall be eligible to take
credit of eligible duties/ tax on inputs and input
services received on oar after appointed day,
duty/ tax was paid under existing law, subject to
condition that the invoice for the same was
recorded in the books of account with in 30
days, extendable by 30 days by commissioner,
and a separate statement is furnished by the
registered person.

11. Transition issues
 Where inputs/ semi-finished goods are send to
job worker, under the provisions of existing law,
prior to the appointed day and received back
after the appointed day, No tax shall be payable,
if such inputs are returned with in 6 months
( extendable by 2 months) . If not so returned ,
ITC shall be recovered.
 The tax shall not be payable only when Principal
Manufacturer and job workers declare the
inputs/ partially processed inputs, etc in such
forms as may be prescribed ( GST-TRAN-1 )