GST — is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level.
The implementation of GST will lead to the abolition of other taxes such as octroi, Central Sales Tax, State-level sales tax, entry tax, stamp duty, telecom license fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services, et cetera, thus avoiding multiple layers of taxationâ€‹ that currently exist in India.
This would have a major impact on the product given that a design change is warranted in the taxation structure.
- Goods and Service Tax (GST) is an indirect tax levied on supply of goods or services or both.
- It is a destination/consumption based tax levy which is payable in the state in which the goods and services are consumed.
- It is levied and collected on value addition at each stage of production or distribution process (all points in supply chain).
- The supplier can avail credit on input tax credit paid on procurement of goods or services.
Components of GST:
|Component||Levied by||Applicable on|
|Central GST (CGST)||Centre||Intra-state supply of goods or services in India.|
|State GST (SGST)||States||Intra-state supply of goods or services in India.|
|Integrated GST (IGST)||Centre||Inter-state supply of goods or services, Exports and Imports.|
Goods outside Gamut of GST:
- Petroleum products and Alcohol for human consumption are proposed to be kept out of purview of GST. Petroleum products will be brought into GST â€‹network at a later stage.
- Central Excise duty will continue on petroleum products. States will continue to impose sales tax on sale within the state on petroleum products and alcohol for human consumption.
- Tobacco products will be subject to Excise duty along with GST.
- Analysis of business areas that are anticipated to be affected by GST.
- Identify all/every potential issue in IT systems to address compliances that still remain out of IT systems ambit.
- Upgrade current IT/ERP systems to appropriate version to install the patch application.
- Careful mapping of modified business environment related to interstate stock transfers, subcontracting, tax-relatedÂ inward and outward processes etc.
- Modify/upgrade in tax calculation procedures and change requirements for monthly tax returns.
- Modify/upgrade necessary master data amendments i.e. amendments in chart of account, material master, vendor master, customer masters, price masters, etc.
- Transition of tax credits from pre GST Tax to post GST Tax.
- Transactional adjustments for return of goods sold or purchased before GST and returned after GST implementation, stock in transit.
- Modifications in output reports (invoices, purchase orders, quotations, etc.)
- User acceptance test (UAT) and post implementation support services
Our team of Chartered Accountants, Management Accountants and ERP Consultants prepared an offer for Indian GST enablement services under different packages. Some of the areas where we provide services for GST compliance are as follows:
We recommend that you contact your Microsoft Dynamics Partner before installing service packs or hotfixes. It is important to verify that your environment is compatible with the service pack(s), hotfix(es), or download(s) being installed. A service pack, hotfix, or download may cause interoperability issues with customizations, and third-party products that work with your Microsoft Dynamics solutions.