GST.....TAKE IT EASY !!!!

37 forms in a year to be filled as GST compliance

The Goods and Services Tax (GST) is scheduled to be rolled out from July 1, but India might be running against time to finalise the technology needed to implement it.

The success of the tax reform will depend on the glitch-free running of the GST-network or GSTN, the technology backbone for the new tax. GSTN will capture every sale, purchase and stock pile of every registered business in India. So once set in motion, this network will end any possibility of evasion.

But implementation may still turn out to be the problem area -taxpayers, both businessmen and professionals, will have to fill 37 forms in a year; smaller units will have to buy software and hire professionals, which, in turn, will increase their compliance costs; filing returns online will be a challenge for businesses based in remote areas in the absence of internet connections.

“As compliance to GST is portal based, there are bound to be teething issues, given the level of internet penetration as well as familiarity with online tax payment in India,” said Priyajit Ghosh, partner, indirect tax, KPMG India.

While a team of experts are working to ensure that the GSTN is up and running in time for the July implementation, the onus is also on taxpayers to learn the new system and ensure compliance.

The only silver lining? Businesses with annual turnover of below Rs.20 lakh are exempt from paying GST. In north-eastern and hill states, the limit is Rs.10 lakh. REGISTRATION All businesses will have to convert their tax registration into GST registration. For example, if a shop owner in Delhi has a VAT registration, it has to be converted to GST. A professional will have to transfer her service tax registration to GST. This can be done on the GST system portal run by respective states. GSTR Businesses will have to file 37 returns in a year under GST; GSTR-1, GSTR-2 and GSTR-3 — all three for every month, plus one annual return. For a firm with operations in 20 states, it means 740 annual returns. Under the current service tax regime, returns are filed half yearly. TRACKING TRANSACTIONS A businessman will have to upload all sales and stock transfer details on the GSTN. Every transaction will have to invoiced. COMPLIANCE Those paying tax under GST, will have to make investments to ensure compliance.

Taxpayers will have to raise invoices and bills in the correct format laid down by the GSTN. E-way bills will have to be generated for every stock movement.Debit and credit notes will also have to be maintained along with books of accounts in the approved format. CAVEAT GST evasion entails harsh punishment. Although finance minister Arun Jaitley has assured that small businesses will not be covered by the harsh provisions, every offence of tax evasion will be compoundable. There will be no arrest for frauds up to Rs.2 crore. Offences between Rs.2 crore and Rs.5 crore will be bailable. Anything above will be non-bailable.

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