The prices of all the things will change from 1st July since the implementation of GST will be done from the day. GST or Goods and Services Tax is a new reform implemented by the Government of India to harmonize the indirect taxation system existing across the nation. This will replace all the present tax system all throughout the nation. The tax slabs have been finalized by the GST Council. Some particular transition provisions have been provided to regulate the migration of the indirect taxation system to the new system of taxation. These are the basic points to be considered while carrying out the transition.
1. Existing Taxpayers to be migrated
GST Network has already started the process of enrollment for migrating the indirect tax payers existing by issuing a provisional registration. The final registration will be granted after receiving the additional and complete information.
2. Transition for Eligible Tax Credits
The GST laws provide the opportunity to carry forward the credit of the input taxes under existing laws of indirect taxation to Goods and Services Tax regime. However, proper records of all the dispatch, receipts with invoices till the particular day of Goods and Services Tax to be maintained to avail the optimum benefits and avoid any loss.
3. Transition for Transactions across the end of the existing system and commencing of the GST System
Taxpayers must revisit their procurement and sales strategies, discount offers and goods return policies as well. Any change in the price due to the contract executed before implementing it will be affected by issuing a credit or debit note. There should be a mutual agreement on the contract over both the GST and existing system in such cases.
4. Claiming Refunds, Assessments and more
Proper guidelines have been formulated for claiming refunds, interest paid, taxes and duties before and after implementation of the strategies.
The Transition issues must be handled with utmost care to avoid litigation. Assessments, refunds, proceedings must be properly evaluated for practical implementation timely.