The government has announced a midnight launch for GST on June 30.
As the country's manufacturers, suppliers and traders gear up for the much-awaited launch of GST or Goods and Services Tax, various government departments have made efforts for a seamless migration to the new indirect tax regime. The government has announced a midnight launch for GST on June 30. The GST migration process reopened on June 25, 2017 and will continue for three months, the CBEC has said. The Central Board of Excise and Customs (CBEC), which helps form the Centre's taxation policy, has simplified the transition process and assured taxpayers "freedom from maintaining too many records."
The Central Board of Direct Taxes has outlined a few characteristics of GST that minimize maintenance of accounts and records:
1. Compliance verification in GST will be done through examination of accounts and records maintained, only if required.
2. One tax, one type of record: No need to maintain separate records for different type of taxes as in the era of VAT, excise and service tax.
3. There will be freedom to choose the format of the accounts and records, and the only information needed is prescribed. The records can take the form of paper-based source documents including computer printouts or digital records.
4. The required records are:
a. All records of goods and services that a person supplies or receives in the course of his/her business;
b. All records of goods imported; and
c. Any other supporting document such as contracts and price quotation to show his/her liability to GST.
5. Digital GST: Records can be maintained in electronic format as well.
6. Where a certain class of taxable persons cannot keep and maintain records as prescribed, the Commissioner may permit them to maintain records otherwise as prescribed.
7. Taxable persons with turnover of less than 2 crores are not required to get their accounts audited or submit reconciliation statement with annual returns.
8. Simple records to be kept by agents, transporters and warehouse keepers
Agents: A person working as an agent is required to maintain records depicting the description, value and quantity (wherever applicable) of goods or services received or supplied on behalf of principal, and details of accounts furnished to every principal.
Transporters: A person engaged in the business of transporting goods is required to maintain simple records of goods transported and delivered, and goods stored in transit by him.
Warehouse keepers: A person operating a warehouse or godown is required to keep records with respect to the dispatch, movement, receipt, disposal and period for which the goods remain in the warehouse or godown.
Meanwhile, as the July 1 rollout of GST approaches, the Central Board of Excise and Customs (CBEC) has addressed many queries relating to GST.
The Central Board of Direct Taxes has outlined a few characteristics of GST that minimize maintenance of accounts and records:
1. Compliance verification in GST will be done through examination of accounts and records maintained, only if required.
2. One tax, one type of record: No need to maintain separate records for different type of taxes as in the era of VAT, excise and service tax.
3. There will be freedom to choose the format of the accounts and records, and the only information needed is prescribed. The records can take the form of paper-based source documents including computer printouts or digital records.
4. The required records are:
a. All records of goods and services that a person supplies or receives in the course of his/her business;
b. All records of goods imported; and
c. Any other supporting document such as contracts and price quotation to show his/her liability to GST.
5. Digital GST: Records can be maintained in electronic format as well.
6. Where a certain class of taxable persons cannot keep and maintain records as prescribed, the Commissioner may permit them to maintain records otherwise as prescribed.
7. Taxable persons with turnover of less than 2 crores are not required to get their accounts audited or submit reconciliation statement with annual returns.
8. Simple records to be kept by agents, transporters and warehouse keepers
Agents: A person working as an agent is required to maintain records depicting the description, value and quantity (wherever applicable) of goods or services received or supplied on behalf of principal, and details of accounts furnished to every principal.
Transporters: A person engaged in the business of transporting goods is required to maintain simple records of goods transported and delivered, and goods stored in transit by him.
Warehouse keepers: A person operating a warehouse or godown is required to keep records with respect to the dispatch, movement, receipt, disposal and period for which the goods remain in the warehouse or godown.
Meanwhile, as the July 1 rollout of GST approaches, the Central Board of Excise and Customs (CBEC) has addressed many queries relating to GST.
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