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Last updated: 28 Mar, 2017  

Accounting.9.Thmb.jpg Time to get GST-ready

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Bikky Khosla | 28 Mar, 2017
First of all, here's the good news. Finance Minister Arun Jaitley on Monday tabled four Goods and Services Tax (GST) enabling bills in the Lok Sabha and they will be taken up together in the House for discussion on Wednesday. These bills have been tabled as Money Bills, which will not require the nod of the Rajya Sabha where the ruling alliance is a minority and once these bills are passed, State GST bills will be taken up by various state Assemblies. So, meeting the July 1 deadline now seems a definite possibility and India's biggest tax reform since independence is going be a reality soon. 

And, it's now the time to get GST-ready. India has nearly 8 million registered businesses under the VAT regime, of which 90 percent are SMEs, and while GST will apply to all businesses with a turnover of Rs 20 lakh or more (Rs 10 lakh in case of NE states), I think it will be a tougher task for SMEs, compared to their larger counterparts, to move to the new regime. According to an estimate, as of now only 50 percent of SMEs have IT systems robust enough to comply with the requirements of GST and worse, less than 10 percent of SMEs are in a GST-ready position. This data is of course not encouraging.

The process of GST migration for state VAT began in November last year and the CBEC has recently requested assessees to whom a provisional identification has been issued to complete the migration to the GST portal by March 31. Those who have not received their provisional IDs have been informed to contact their respective tax office. In case of  difficulties or queries
regarding migration, an assessee can email to or call the National Toll Free GST Helpline 1800 103 9271. Some useful information on GST Suvidha Provider (GSP) can be found on the GSTN website and one can also call its helpdesk number 0124-4688999.

While the pace at which things are happening is encouraging,  the fact should not be missed that SMEs are facing an uphill task while getting ready for GST. Unlike their large counterparts, they lack financial muscles, but the new regime will require them -- besides getting down to the nitty-gritty of migrating to the new regime -- to invest in IT systems, engage more manpower to follow-up with suppliers, automate accounting and inventory management, and align their invoice according to the new prescribed rules. Considering these challenges, I hope the Centre would take a considerate view for the sector in the initial days once GST kicks in.

I invite your opinions.
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What about old tax disputes ?
Bhagawath Prasad | Sat May 6 14:40:42 2017
Sir, You have mentioned 90% of 8million businesses are SMEs , therefore I urge government to end all old tax disputes at once with an easy settlement program,if not SMEs busy in adopting GST methods , old tax dispute notices are drag.

Are you ready for GST?
Milan Talwaar | Wed Mar 29 13:17:50 2017
The proposed Goods and Services Tax (GST) is said to replace all indirect taxes levied on goods and services by the Government, both Central and States, once it is implemented. The GST will consolidate all State economies. It will be one of the biggest taxation reforms to take place in India.All enterprises and companies are getting ready for GST.Government has shortlisted some companies as GST Suvidha Provider including Ernst & Young LLP, Cygnet Infotech Private Ltd, Vayana Private Limited and Karvy Data Management Services Limited. The entire list is available on the GSTN website.

G.S. T
Madhav Kench | Wed Mar 29 10:17:19 2017
Does it mean small traders or service provider well bellow business of 20 lacs need not register for G.S.T.

R.A.Natteraja | Wed Mar 29 09:31:40 2017
Dear Sir, While welcoming the GST system through out our country, what should be done for the new entrants to get GST Registration and its procedures to follow. We do not have VAT registration yet. Hence is it possible to get direct registration of GST without VAT registration. We need your guidance and advice. With Regards R.A.Natteraja Vinayagar Velmurugan Exports, Chennai, Tamil Nadu

Easy Migration to GST for SMEs with Udyog Software
Anirban Chakraborty | Wed Mar 29 08:45:36 2017
Hello Bikky! I appreciate you writing about the fact that migrating to GST can be a difficult propaganda for the SMEs in India. I am sure you would agree that the challenge is more with the lack of organized data management and/or the absence of a ERP in these companies, which in the first place is quite a costly affair. Additionally, with GSTN not providing any utilities for GST returns, the dependency on GSPs (GST Suvidha Providers) can increase, which again can make things little more difficult for the SMEs from supplying of correct data and other logistics perspectives. Technology can play a crucial role in these scenario. Enabling latest technology for these SMEs for migrating to GST without any hassle. An economic yet efficient return filing & reconciliation software can prove to be of great help for the SMEs for filing their returns during the GST regime. Udyog Software, the 23 years old leader in offering Tax Technology solution in India, can make things really easy and simple for the SMEs. To know how, I request all concerned Owners, MDs, CEOs, and relevant senior professionals to call us on 888 55 18002. They can also write to us as

GST Number
Ajit Sangwan | Wed Mar 29 08:15:15 2017
Will the GST Number remain the same in whole India or it would be taken as state wise?

GST introduction/implementation
sanjiv chanda | Wed Mar 29 07:02:35 2017
Dont you think a forum can be organised where the GST appliers and the GST users meet and a Q&A session is done on a continuous basis for the next 2 months before this new regime is introduced. Every Govt. officer has their own views and every Trader has their own way of looking at things -- a meeting ground has to be prepared to avoid people being targeted and not harassed. If Govt. wants this to be implemented a series of sessions must be arranged to make matters clear to both parties, other wise it will be just bulldozing the people. Can you imagine the perquisites being given by the company to their employees will now attract GST - this is just ridiculous!

GST implementation
K.N. Raghunath | Wed Mar 29 06:10:10 2017
What is the turn over limit for a Trader to be within GST ? - just a general trader - buying & selling ; there are many many of these who serve the industry in many ways ; We are in Tamil Nadu , we provide after market services for DG sets and heavy diesel engines and provide replacement spares with guarantee and warranty ;

Srinivas.J | Wed Mar 29 05:20:50 2017
We are not clear whether the sales tax website will be modified and how are we to submit the details like sales,purchase the monthly returns.

Rizwan | Wed Mar 29 05:09:13 2017
There are quite a few hiccups in implementation. Lot of work at ground level needs to be done. We don't have proper experts to guide because subject is knew and so called tax experts are themselves not updated on the subject. These irregularities needs to be sorted out first.

Accounting.9.Thmb.jpg Time to get GST-ready
Shyamal Chakraborty | Wed Mar 29 04:06:22 2017
Very useful Article. Would request to give more on this GST related matter so that SMES like us get benefit and prosper them and Nation.

Jallu Sankararao | Wed Mar 29 01:28:31 2017
It is very good, aware of GST.

D.Ravi Kumar | Tue Mar 28 23:34:46 2017
What's the difference between GST and VAT ?

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