Changes and Configurations of Accounting Systems 24 th June, Saturday By CA Venugopal Gella 1
Role of Technology in GST Implementation CA. Venugopal G 2
1. Role of Technology in GST Agenda 2. Accounting + Software in GST 3. Reconciliations 4. Transitional Challenges in IT 5. Other areas IT Support 3
1. Role of Technology in GST 4
Overview Technology or software is the backbone of GST Success or failure of implementation of GST is heavily dependent on technology GST will Create a paradigm shift in how Small Business run their day to day business Its not a Tax Reform, it s a Business Reform 5
How digital India plays its role in GST? Communication with the department is in electronic form Communication over e-mails - Registration till Assessments & Audit Notices are served in Electronic form Responses from assesse in Electronic form Signatures ( DSCs / e-sign /EVC) Mechanism of filing returns has completely changed in GST regime 6
Relevant Provisions to Know Act CHAPTER VII : TAX INVOICE, CREDIT AND DEBIT NOTES (31-34) CHAPTER VIII : ACCOUNTS AND RECORDS (35&36) CHAPTER IX : RETURNS ( 37 48) Rules Invoice Rules Payment Rules
Modes available to file returns 1. GST Portal >> Form Entry / Excel Utility 2. GST Suvidha Providers (GSPs) >> GSTN 3. Offline/Online Utility thru (ASPs) >> GSP>>GSTN 4. Goods and services tax practitioners(gstps) >>ASP>>GSP>>GSTN 8
GSP Eco System
Tech Connect with GST API Source : http://developer.gstsystem.co.in/apiportal/ Developer Discussions : https://groups.google.com/forum/#!forum/gst-suvidha-provider-gspdiscussion-group
API s Available
API Description
GSTR1 - Save GSTR1 data GSTR1 - Get B2B Invoices GSTR1 - Get B2BA Invoices GSTR1 - Get B2CL Invoices GSTR1 - Get B2CLA Invoices GSTR1 - Get B2CS Invoices GSTR1 - Get B2CSA Invoices GSTR1 - Get CDNR Invoices GSTR1 - Get CDNRA Invoices GSTR1 - Get Nil Rated Supplies API list for Returns
Schema / XML Fields GSTR1 Data S No JSON attribute Description Format Sample Value 1 gstin GSTIN of the Tax Payer Alphanumeric with 15 characters 07CQZCD1111I4Z7 2 fp Return period String (MMYYYY) 082016 3 gt Gross Turnover in the preceding Financial Year Decimal(15, 2) 1000.00 4 cur_gt Gross Turnover - April to June, 2017 Decimal(15, 2) 1000.00 5 version Version of Application String GST1.00 6 hash Hash Code String 7 mode Mode of Application String (OFFLINE) of 8 b2b B2B Invoices B2B Invoice Data 9 b2cl B2C Large Invoices B2CL Invoice data 10 b2cs B2C Small Invoices B2CS Invoice Data 11 nil Nil Supplies Nil Rated Invoice Data 12 exp Exports Exp Invoice Data 13 at Advance Tax AT Invoice data 14 txpd Advance Adjusted Detail Advance Tax paid details 15 hsn hsn_summary_details HSNSUM 16 cdnr Credit and Debit Note CDNR 17 cdnur Credit and Debit Note for Unregistered Taxpayers CDNUR 18 doc_issue Document Issue Documents Issue
Sample Jason { "gstin": "27AHQPA7588L1ZJ", "fp": "122016", "gt": 3782969.01, "cur_gt": 3782969.01, "version": "GST1.00", "hash": "GSTR1-Hash-Code", "mode": "of", "b2b": [ { "ctin":"01aabce2207r1z5", "inv": [ { "inum": "S008400", "idt": "24-11-2016", "val": 729248.16, "pos": "06", "rchrg": "N", "etin":
2. Accounting + Software in GST 16
ERP Accounting Application 1. SAP 2. Oracle 3. Microsoft 4. RAMCO And Many other Proprietary Softwares 17
Some Accounting Applications used by- SME Desktop Application Tally ERP Profit Marg Busy Saral Online Platform And Many other Proprietary Softwares Zoho Numberz Quick Books Xero Wave 18
GST Implementation Challenges Is Accounting Software a Challenge? Or Accounting / Data Capturing? 19
What changes for SMB s day to day business? EARLIER SYSTEM 1. Need not file all Sales transactions online * GST REGIME 1. All your Invoices to be filed with GST portal every month 2. Credit is availed on basis purchase invoice 3. One Return a month / period * In some states, VAT records being filed Invoice wise 2. You get credit ONLY when vendor pays taxes and files their monthly returns 3. Minimum three (3) returns every month 20
What changes for SMB s day to day business? EARLIER SYSTEM 4. Vendor follow-up mostly for C Forms 5. Multiple Law Compliance GST REGIME 4. Got to follow up with Vendor every Month. 5. Single Window Filings. 6. No Revised Return* 6. Error Revised Returns 21
Master Record Changes 22
Master Related Chart of Accounts Current Tax Ledgers Central Excise, PLA etc. VAT / Central Sales Tax Service Tax Cess Inventory May or may not integrated with books GST Tax Ledger CGST,SGST IGST Separate for each state Input; Output; Payment Inventory Inventory needs to be integrated in the ERP system Basis of HSN / SAC codes 23
Master Related - Chart of Accounts Current Vendor / Customer Masters Customer / Vendor Code + Name Address, Tax Jurisdictions Payment Terms etc. Taxation Invoicing rates mostly at gross levels at end of invoice. Point of Incidence Tax calculation Logic for CE/VAT/ST GST Vendor / Customer Masters Existing + GSTIN Multiple GSTIN Taxation Line item level Rates with HSN/SAC Destination based Taxation (CGST+SGST / IGST) 24
Transaction Changes Outward Supply 25
Revenue Related Configurations 1. Supply Type Independent / Composite / Mixed 2. Type of Tax C + S / { I } 3. Rate of Tax Taxable / Exempted 4. Value of Tax Transaction Value Taxable Value 5. Time of invoice Due Date of Provision 6. Advance Receipt + Adjustment 7. POS If Interstate Bill to Ship to, Specific mention 8. HSN
Revenue Related Configurations 9. Medium of Sale Direct / ecommerce 10. Type of Customer B2B B2C L / B2C S Export 11. Contents of Invoice Tax Invoice Rules 12. Format of Invoice Basis Transaction Type 13. Document Regular Receipt / Payment vouchers GSTN Specific Regular Invoice Self Invoice Debit Note Credit Note Payment Voucher Refund Voucher Delivery Challan s
Content of Invoice STATIC DATA Supplier + Buyer name, address and GSTIN Inv No, Date if, Bill to Ship to Discounts Signature Item Details < Multiple Lines > HSN Description Unit of Measure Transaction Qty Rate Value Tax Type Rate Value
Sample Format
Multiple Formats Composition supplier? Warranty? Taxable & Exempted supply In one Invoice? Composite supply/ Mixed Supply? Buy one get one offers? Works contractor on immovable? Discount through Tax Invoice / Discount after issuing Tax Invoice? GTA service? Bank? Passenger Transportation? B2B - over the counter purchases? Computer generated Invoice? Commission or packing charged in Invoice except pure agent? Transportation charges GST Rate? 30
New in GST Regime : Sales / Supply Transaction Categorization Customer Based Registered Dealer Sales (B2B) vs Retail Sales (B2C) B2C B2C large invoices(invoice value higher than 2.5 Lakhs) B2C Others Destination Based Inter State -IGST Intra State Sales CGST + SGST Other Aspects Sales to your own Branches outside the State / different GSTIN Tagging of ADVANCE Receipt to Invoice HSN & SAC Code of item sold Medium of Sales E-Commerce Platform Regular 31
Sales / Outward Supply Taxable Turnover Other Turnover B2B Invoice wise Item wise B2C Non Taxable / Exempt Sales through e- commerce operators Others All sales to GSTINs - Inter or - Intra B2CL IGST > 2.5 Lakhs Large Invoices B2CS IGST <2.5 Lakhs + All Intra State Detailed Line Item Wise / Rate wise Detailed Line Item Wise / Rate wise Invoice wise /Item Rate wise Rate wise + State wise
For B2B SUPPLY Capture all the following details in the invoice Additional Info GSTIN/UIN of buyer Place of supply ( Bill to & Ship to Different States) Description and HSN/SAC codes of the goods and services rendered Is the tax paid under reverse charge Is Transaction through E-Commerce portal Regular Info Invoice number, date and value of invoice and taxable value Tax rate and amount 33
B2C Invoices B2C Invoices Track Separately Large Invoice IGST > 2.5 Lacs Others IGST <2.5 lacs + All Intra State 34
Branch Transfer Old Law :This was considered as Stock Transfer earlier and No Taxation In GST, Stock Transfer is treated as B2B Sales Inter State : Transfer to its own branch/warehouse located in other state Intra State : If the Branch has separate GSTIN with in the State 35
Branch Transfer - Accounting Record Transaction effecting GST Liability in Supplier Branch GST Input in Recipient Branch Sales Accounting If Consolidated Books Contra Sales and Purchases If Separate Set of Books Record as Intercompany and eliminate in Consolidation P&L Impact on Consolidation : Nil 36
HSN Code Goods HSN Code : https://www.gst.gov.in/documents/hsn.pdf Particulars Chapter Heading Sub Heading Entry Digits 2 Digits +2 Digits +2 Digits +2 Digits Number 99 1244 5224 ~17000 Track & Report Annual Turnover ( in Dr) Not Applicable < 1.5 2 Digits 1.5-5 4 Digits > 5 8 Digits Exports and Imports 37
Services : SAC codes Annual Turnover ( in Cr) Reporting < 1.5 Optional > 1.5 Mandatory The SAC is now Chapter 99 HSN list, released by CBEC 38
ADVANCE Receipt Invoice Mapping Month of Advance Receipt Pay GST <Key Element : Document Number> Month of Invoice Reverse Receipt Paid Taxes, by referring <Document Number> + <Invoice Number> 39
Sales through e-commerce platform E-Commerce operator collects 1% of the sale amount as TCS TCS collected can be claimed against the Output Liability Additional Data Capture : A. GSTIN of e-commerce operator B. Merchant ID issued by e-commerce operator 40
Track & Report Invoice Series Month on Month Series of Invoices From Number To Number Total Invoices Cancelled Invoices Net Invoices Issued 41
Transaction Changes Inward Supply 42
GST Regime : Changes Seamless flow of Credit Reduction in cost Vendor Management Crucial Credit availed on time All eligible Inputs/Capital goods Credit eligible previously VAT / Service Tax are not inter allowed 43
URD Purchases Broader Concerns Availability of Tax Credits { T1 + T2 + T3 + D1 + D2 } Concerns on Ground Reality 1. Voucher Control Serial Number 2. When to Capture? During Data Entry? 3. How to Track them, Real Time / Offline
New in GST Regime : Purchases ITC Input tax Credit availed is on - Actual basis (or) Provisional basis Auto Credit Reversal Track Auto-reversal of input tax Credits Reconcile Carry forward & Reconcile Unmatched Credits 45
Additional details to be captured - Purchases GSTIN GSTIN s of Vendor to be captured in Tax Masters Import of Goods Invoice Number, Date and value of Bill of entry, HSN/SAC Reverse Charge Document Number and date Credit Tax Credit segregated ( Eligible / ineligible) Segregate Input Tax Credit into - Input Goods / Services (or) Capital goods 46
Challenges Registered vs Unregistered URD Rate of taxes Type of Tax Unmatched Credits Vendor Wise Invoice Wise Deferred Credits to future Periods Self Invoice Accounting & Inv Num Controls
ISD : Input Service Distributor Credits received in Head Office / Central Office Distributed to other GSTIN of same PAN Actual Allocable (or) Turnover in that period Accounting Corporate Office : Receive (GSTR6A) & Transfer Credits(GSTR6) Current Assets Branches : Receive (GSTR2) Current Asset 48
TDS Credits Additional details to be captured (these will be auto populated in returns) GSTIN of deductor Date of payment received Value on which TDS deducted Existing Information Number, date and value of invoice Taxable value Tax rate and amount Assesse can download certificate Form GSTR 7A from the portal. 49
TCS Credits Additional details to be captured (Not auto-populated in returns) GSTIN of e-commerce operator Merchant ID given by e-commerce operator Gross value of supplied through portal Value on which TCS collected Existing Information Number, date and value of invoice Taxable value Tax rate and amount 50
Monthly Activities Summary 51
Normal/Regular Tax Payers Monthly Return* Upload details of outward supply on or before 10 th of GSTR-1 following month GSTR-2A Data will be auto populated in 2A of Recipient tax payer Actions of Accept, Reject or Modify has to be taken Additions can be made Return needs to be filed GSTR-2 after 10 th and on or before 15 th of following month GSTR-1A Rejections, modifications and additions in GSTR-2 will be made available to supplier in 1A Supplier has to take action by 17th Auto-populated return will be available for submission along with the payment on 20th GSTR-3 52
Sample Accounting Entries 53
Accounting Entries Transaction Present System Under GST Local Purchase Inter State Purchase Purchases A/c Input Vat @ 14.5 A/c To ABC Purchases A/c To Creditor 1,00,000 Purchase A/c 14,500 Input CGST A/c 1,14,500 Input SGST A/c To ABC 1,53,000 1,53,000 Purchase A/c Input IGST A/c To Creditor 1,00,000 9,000 9,000 1,50,000 27,000 1,18,000 1,77,000 Local Sale Interstate Sale Indirect Expenses Debtor A/c To Sales To Output VAT @14.5% Debtor A/c To Sales To CST @ 2% Telephone Expense A/c To Bank A/c 1,37,400 1,02,000 5,750 Debtors A/c 1,20,000 To Sales A/c 17,400 To Output CGST A/c To Output SGST A/c Debtors A/c 1,00,000 To Sales A/c 2,000 To Output IGST A/c Telephone Charges A/c 5750 Input CGST A/c Input SGST A/c To Bank 1,41,600 1,18,000 5000 450 450 1,20,000 10,800 10,800 1,00,000 18,000 5,900
Reconcile with GSTN
Up on GSTR -1 Transfer to Liability Ledger Dr Output CGST A/c Dr Output SGST A/c Dr Output IGST A/c Cr Liability Ledger CGST A/c Cr Liability Ledger SGST A/c Cr Liability Ledger IGST A/c
Up on GSTR -2 Transfer to Credit Ledger Dr ITC CGST Dr Ledger A/c Dr ITC SGST Dr Ledger A/c Dr ITC IGST Dr Ledger A/c Dr P&L/Exp A/c {T1+T2+T3 } Cr Input CGST A/c Cr Input SGST A/c Cr Input IGST A/c
On Payment of Taxes Transfer to Cash Ledger Cash Payment Dr Electronic Cash Ledger IGST Dr Electronic Cash Ledger CGST Dr Electronic Cash Ledger SGST Cr Bank TDS / TCS Dr Electronic Cash Ledger { I / C + S } Cr Govt / ecom Operator
Up on GSTR -3 Transfer to Credit Ledger Dr Liability Ledger CGST A/c Dr Liability Ledger SGST A/c Dr Liability Ledger IGST A/c Cr ITC CGST Dr Ledger A/c Cr ITC SGST Dr Ledger A/c Cr ITC IGST Dr Ledger A/c Cr Electronic Cash Ledger { I + C + S}
Errors Technology Support Supplier has not filed returns within due date No records in 2A Reconcile with Purchase Register Add Records in 2 Supplier filed returns with wrong information Reconcile with Purchase Records Modify 2A TDS/TCS Credits not showing up Reconcile with Purchase Records Modify 2A Invoice number mis-match Record Number to be unique GSTIN + Purchase Invoice Number Software to Support GST Rating Track erroneous Suppliers Track GSTR1 filing errors 60
Consolidated Monthly Return - GSTR-3 Data from GSTR-1 and 2 auto-populates to GSTR-3 Accounting software should be Able to fetch data from the return Auto reconcile with books of accounts Estimate output tax Increase / Decrease considering rectification of communicated mismatches Track and indicate NON RECTIFIED mismatches 61
Determine Liability Liabilities can be Return related liabilities Other than return related liabilities Software should be able to track liabilities accordingly Liability in GSTR-3 will be discharged utilising ITC - Credits from Electronic Credit Ledger Electronic Cash Ledger-Balance Amount 62
Utilize ITC Software must be able to track and consider restrictions on utilising Credits 63
Payments in GSTR-3 Utilising ITC, Software should be able to track and report Order of preference to utilise Credits Provisional Credits, matched Credits, unmatched Credits and their reversal Utilising Cash* Required amount of cash has to be deposited under CGST, SGST and IGST Utilisation of the same can be made in GSTR-3 *Date of utilisation from cash ledger is the date of payment 64
Accounting Ledgers
Choice of Accounting Consolidated Vs Detailed
List of Accounting Ledgers + Liability Taxes Collected TDS Collected TCS Collected RCM Due + Input Capital Goods Services Goods + Payments Made Thru Cash TDS TCS Setting of Liability by Period Heads Tax Interest Penalty Fee Others CGST SGST IGST 4 x5 Matrix Cess
Control Ledgers Credits Suspense / Provisional Credits Credits Received in Advance Reference to Party Wise / GSTIN Period Reference Liabilities Additional Recorded thru 1A Interest Reversal 42(9)
3. RECONCILIATIONS 69
1. Registers Reconciliation Books Vs Department 1. FORM GST PMT-01 : Electronic tax Liability register 2. FORM GST PMT-02 : Electronic Credit Liability register 3. FORM GST PMT-05 : Electronic Cash Liability register 2. Forms 1. FORM GST PMT-03 : Refund Rejected Partially / Fully, communicated by proper officer 2. FORM GST PMT-04 : Reporting any Discrepancy Credit Ledger 3. FORM GST PMT-06 : Payment Challan 4. FORM GST PMT-07 : Reporting any Discrepancy Cash Ledger 70
Electronic Tax Liability Register
Input - GST PMT-01 Amount to be debited in ELR 1. Return Related 1. GSTR 1 : Tax, Interest, Late fee, or any other amt payable as per return filed Sec 37 2. GSTR 2 : Mismatch : Tax & interest payable as a result of mismatch of input tax Credit as per 38, or 42, or 50 2. Other Than Return Related 1. Assessment : Tax, Interest, Penalty or any other amt payable as determined by a proper officer against any proceeding 2. Any amt of interest that may accrue from time to time
Part 1 : Return Related Liability
Part 2 : Other than Return Related Liability
Electronic Credit Ledger
GST PMT-02 : Electronic Credit Ledger Section 2(46) Electronic Credit ledger means the electronic Credit ledger referred to in section 49(2). Provisional Credit up on filing of GSTR 2 Sec 41(1) The following will recorder separately in the ledger, Credit of inputs, capital goods, reverse charge claimed in return Credit received through ISD Credit on account of merger, pre-registration etc. Utilisation of Credit from the same major head or from other major head (Cross utilization) will be recorded accordingly. Utilisation of Credit for return and other than return related liabilities will be recorded separately.
Electronic Credit Ledger
Credits - Technology Support Software must track the Credits appropriately. Credits can be Provisional Credits Matched Credits and Unmatched Credits Software must track for Reversals of Credits with appropriate reasons 78
Electronic Cash Ledger
Cash ledger Cash has to be deposited under respective heads Major Heads CGST SGST IGST Cess Minor Heads Interest Penalty Fee Others Cross utilisation between the ledgers with respect to Taxes, Interest, Fee, Penalty is not allowed 80
Payments Technology Support Electronic Cash Ledger Is like a e-wallet Cash has to be deposited under relevant heads ONLY And it shall be utilised accordingly for discharging liability Date of deposit is not the date of payment Date of utilisation from cash ledger is the date of the payment 81
GST PMT-05 : Electronic Cash Ledger Section 2(43) Electronic cash ledger means the electronic cash ledger referred to in section 49(1) Date of deposit = Date of Credit to the account of the appropriate Govt. in the authorised bank Also Includes Sec 51 TDS & sec 52 TCS
Electronic Cash Ledger
Mismatch Reports 84
Mismatch Report GSTN Portal Captures mismatch reported by the Supplier Taxpayer & Receiver Taxpayer Generated for every tax period on filing of valid GSTR 3 by the Taxpayer (or) 21 st day of (M+1) whichever is later Both supplier and receiver will be communicated on generation of mismatch report 85
Mismatch Report - Technology Support Mismatch report with respect to taxable supplies will be Supplier mismatch < Out Put Tax Liability Addition > Receiver mismatch < Input Tax Credit Mismatch > E-Commerce mismatch Accounting software to reconcile with the GSTN issued mismatch Report - ( Section A / B / C) 86
Understanding - Mismatch Report Section A Elements in the transaction reported by receiver does not match with supplier Addition/ modification of line items of invoices /debit notes issued by supplier, added by the receiver Taxpayer but not accepted by Supplier ITC claimed in excess than reported by supplier Section B Supplier has not filed return but receiver is claiming Credit It is a mismatch resulting in Creation of output liability of receiver taxpayer due to reversal of ITC claimed by the receiver For which the supplier has not paid tax by not filing valid GSTR 3 87
Understanding - Mismatch Report Section C Mismatch in cases where elements reported by supplier in respect of line items of an invoice/credit note Which results on downward modification of tax does not match with the elements reported by the receiver in GSTR 2/ISD in GSTR 6 88
4. Transitional Related Challenges 89
Tax Credit C/F : - Technology Support Unutilized Credit under current regime (ST-3, VAT 100) - Carried forward as opening balance under GST Assessee availing exemptions like SSI, SSP and composition dealers, can take Credit of those Lying in the stock of registered person Purchases made within one year of the enforcement date And must be in possession of the invoice copy Must be eligible for claiming Credit under both old law and new law 90
Case 1- Manufacturer & Dealer Particulars PRE GST Cenvat Credit in last Excise Returns 150 Input Tax Credit available in last VAT returns Tax incidence of Non submitting of statutory forms (C form to be submitted for sale value of Rs.5,000/- )(5.5%-2%) Rs 250 (175) Particulars POST GST Input Credit available to CGST Credit Ledger Input Credit available to SGST Credit Ledger Rs 150 75 (250-175) CGST Credit ledger A/c Dr 150 SGST Credit ledger A/c Dr 75 To CENVAT Credit A/c 150 To Input Vat A/c 75 91
Case 2- Unregistered Manufacturer & Dealer PRE GST POST GST Particulars Cenvat Credit in last Excise Returns Input Tax Credit available in last VAT returns Tax incidence of Non submitting of statutory forms Rs NA 250 (100) Particulars Input Credit available to CGST Credit Ledger Input Credit available to SGST Credit Ledger Rs NA 150 (250-100) SGST Credit ledger A/c Dr 150 To Input Vat A/c 150 92
Not Registered in Excise; Registered in VAT Supply Value GST Rate Type of tax CGST paid IGST Paid Deemed Credit rate Deemed credit value % on sale value 10000 5% CGST 250 0 40% of CGST 100 1.00% 10000 12% CGST 600 0 40% of CGST 240 2.40% 10000 18% CGST 900 0 60% of CGST 540 5.40% 10000 28% CGST 1400 0 60% of CGST 840 8.40% 10000 5% IGST 0 500 20% of IGST 100 1.00% 10000 12% IGST 0 1200 20% of IGST 240 2.40% 10000 18% IGST 0 1800 30% of IGST 540 5.40% 10000 28% IGST 0 2800 30% of IGST 840 8.40% 93
Not Registered in Excise; Registered in VAT Particulars Amount Base Price 500 Add: CGST at 6 % 30 Add: SGST at 6% 30 Total Commercial Value 560 Less: Discount Eligible Credit at 40% of CGST i.e., Rs.30 (12) Selling Price 548 Party Account A/c Dr 548 Transitional Discount A/c Dr 12 To Sales @ 12% A/c 500 To Out Put CGST 30 To Out Put SGST 30 CGST Credit Liability A/c 12 To Transitional discount A/c 12 CA.B S.Mylar. B.Com. FCA 94
5. Other areas 95
Supply - Technology Support Supply can also be characterized into Mixed supply & Composite supply Software must be configured To determine the supply as mixed or composite To provide for tax rates to be applied accordingly for such supplies To adjust the stock quantity in the books accordingly (for mixed supply) 96
Job work - Technology Support When goods/capital goods sent on Job work, control process to be: Have a unique reference number(urn) with the due date to return back Review & Report aging generated based on URNs Squaring up the URNs once the consignment returned to factory 97
Business related issues Pricing Earlier there were multiple taxes levied and most of them were cost GST is being rolled out with the concept of seamless Credit Prices has to be reviewed to check the impact of the above Any impact on margin must be actually passed on to the customers and the same is regulated by law Re-engineering of pricing of product to be part of transition 98
Business related issues Validating Creditors Vendor selection plays crucial role, Since utilising credits are dependant on his compliances Non Compliance by Vendor increase's Working capital Product Cost Reconciliation & Manual efforts on Follow-up Reduction in GST Ratings Rating for every supplier are based on timely compliances & mismatches 99
Information Security All data of business will be online, it is necessary to ensure software and system has adequate security Ensure all terms and conditions are read while entering into a contract with GSPs/ASPs/GSTP Ensure appropriate anti-malware's and antivirus software's are installed Be aware of social engineering attempts Ensure key information like user IDs and passwords are adequately secured If any unauthorised account activity are suspected, appropriate security measures to be initiated 100
GST READINESS CHECK 104
Technology related GST Readiness Has applicable Provisions of the law configured in Software Is the team trained and aware of the Act & Use of Software Your Vendors are Educated and Tax compliant Do you have Customers GSTIN for B2B Supplies Do you have Vendors GSTIN for B2B Supplies Is the Rate mapping, Product Mapping HSN code complete Auto accounting of Stock movements & Credits for the Branch Transfer considered 105
GST Readiness (Contd.) Your Chart of Accounts/Accounting Entries / Notes updated Sufficient staff + Software Reports to reconcile and communicate with Vendor/Customer on Mis-match Reports Software to generate State wise GSTR returns ISD Accounting & Auto Distribution of Credits Ability to assess revises Sale Price of your Goods Reconcile & Report Correctness of Returns filed. 106
Thank You 107