Frontend Business Process on GST...
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Frontend Business Process on GST Portal Your Name Designation, GSTN Date: December, 2016
Transcript of Frontend Business Process on GST...
Frontend Business Process on GST Portal
YourNameDesignation,GSTN
Date: December, 2016
a. 70to80Lakhstaxpayers;b. 260to300CroresB2Binvoicedatapermonth
c. Morethan120,000taxofficialstowork
d.Monthlyfilingofreturnse. CreditofITCf. CreationofBusinessIntelligencereportsandAnalytics
g. BothCentralandStatesTaxDepartments
GoodsandServicesTaxNetwork(GSTN):TheITBackboneofGST
• StrongITInfrastructure
• Independent• FlexibilityofPvt
Sector• StrategicControl
ofGovt
Model-2StatesUTsWithoutLegislature1 Chandigarh2 Daman&Diu3 Dadra&NagarHaveli
Model-1 States1 AndhraPradesh2 Goa3 Haryana4 Karnataka5 Kerala6 Maharashtra7 Meghalaya8 Sikkim9 TamilNadu
Model-2StatesandUTswithLegislature1 ArunachalPradesh2 Assam3 Bihar4 Delhi5 HimachalPradesh6 Manipur7 Mizoram8 Nagaland9 Odisha10 Puducherry11 Tripura12 UttarPradesh13 Uttrakhand14 MadhyaPradesh15 Chhattisgarh16 Jharkhand17 Gujarat18 Punjab19 Rajasthan20 WestBengal21 Telangana22 J&K
LedgerBalance
Head CGST(Rs.) SGST(Rs.) IGST(Rs.)
Liability 115000 90000 115000
Cash 20000 40000 20000
InputTaxCredit 80000 70000 80000
Balance -15000 +20000 -15000
TaxpayerGSTNITSystems
GSTCommonPortal
CommonPortal
DatabaseGST
Application
APIInterface
Interface
State/CentrePortal
State/CentreTaxITSystems
State/Centre
Database
State/CentreApplication
TaxAuthority
NetworkofBanks&RBI
APIInterface
AccountingAgencies&Treasuries
APIInterface
GSTITStrategy
FrontEnd BackEnd
InnovationsunderGST
InnovationsunderGST:Registration• OneregistrationforbothCentralandStateAct• GSTIdentificationNumber(GSTIN)isPANbased• Onlineauthenticationofdocumentsissuedbyothergovernment
agencies– PANofbusinessentityfromCBDT– PANofpromoterfromCBDT– AadhaarofpromoterfromUIDAI– CIN/DINofapplicantcompanyfromMCA– IECfromDGFT– Ifstatepowerdistributioncompaniescanshareaddressofpremisesowner
(likeMaharashtra)thenaddressverificationcanalsobeautomated.– IfRegistrationofpartnershipandtrustetc.alsogetsstandardizedacrossall
states,thatcanalsobeautomatedleadingtosamedaygenerationofRegistrationCertificate
• IssueofRClimitedto3workingdays• Taxpayercaneditallfieldsexcept7ofthem
StructureofRegistrationNumberStateCode
PANEntityCode
BlankCheckDigit
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
StateCode:AsperCensusCode(exDelhi’scodeis07)
EntityCode:Alpha-numeric(1-9andthenA-Z);Tobeassigneddependingonthenumberofregistrationsalegalentity(havingthesamePAN)haswithinoneState
CheckSum:A formofredundancycheck usedforerrordetectiononidentificationnumberswhichhavebeeninputmanually
MigrationofExistingTaxpayers• AllTaxpayerswhohavevalidPANwillbemigratedtoGST• Ithastaken2yearstogetPANofStateVATvalidated• Outof7mandatoryfieldswehave4fieldswithus• State• PAN• NameofBusinessEntity• CompositionofBusinessentity
• WhatisrequiredbeforeissueofGSTIN• Pr PlaceofBusiness• DetailsofPromoters• Composition(YesorNo)and• DetailsofAuthorizedSignatory
• Exercisestaredfrom8th ofNovwithStateVATfirstandthenwithServiceTax.(websiteaswellMobileApp)
PortalGo-LiveforEnrolmentwww.gst.gov.in isoperationalfrom8th Nov
Group States Start Date EndDate
1 Puducherry,Sikkim 8th Nov16 23th Nov16
2 Gujrat,Maharashtra,Goa,DamanandDiu,DadraNagarHaveli,Chhattisgarh
14th Nov16 29th Nov16
3 Odisha,Jharkhand,Bihar, WestBengal,MadhyaPradesh,Assam,Tripura,Meghalaya,Nagaland,ArunachalPradesh,Manipur,Mizoram
30th Nov16 15th Dec16
4 UP, JammuandKashmir,Delhi,Chandigarh,Haryana,Punjab,Uttarakhand,HimachalPradesh,Rajasthan
16th Dec16 31st Dec16
5 Kerala,TamilNadu,Karnataka,Telangana,AndhraPradesh
1st Jan17 15th Jan17
6 Service TaxRegistrants 1st Jan17 31st Jan17
7 DeltaAllRegistrants (AllGroups) 1st Feb17 15th Feb17
EnrolmentProcess• CBT(Video),FAQandUserManualareavailableongst.gov.in
• Totaltimetakenisaround15minutes• Documentstokeepready– ProofofPr PlaceofBusiness/Addl place– DetailsofProp/Directors/etc.– DetailsofAuthorizedsignatory– Detailsofbankaccounts– Existingregistrationsundervariousindirecttaxes
• Authenticationofinformationprovided
InnovationsunderGST:Payment• OneChallanforalltaxestobecreatedonlyatGSTportaltoensurenodataentrybybanktellerfromhand-writtenchallans
• Paymentmethods– Online– OvertheCounter– CreditCard/DebitCard– NEFT/RTGS
• TodayonlyfewAgencybanksareallowedbyastatetocollectVAT.UnderGSTallagencybanksapprovedbyRBI(30)willbeallowedtocollecttax.
• ConceptofCashledger/ITCLedger
InnovationsunderGST:Return• Oneinvoiceateachstageofsupply(sale)showingbothtaxesseparately
• B2Binvoicedataneedstobeuploadedtocreatesalesreturn(GSTR-1)
• Creationofpurchasereturn(GSTR-2)basedonsalesreturnofsellers
• GSTR-3basedonGSTR-1andGSTR-2• Anytimeuploadofinvoicedata• OneReturnforbothtaxes• Oneassessingauthorityandoneappellateauthority
ReturnFilingunderGST• B2BInvoicedataupload
– OntheGSTportal– Usingofflinetool(likeExcel)– Using3rd partytool
• FilingofGSTR-1basedoninvoicedataanddataonexports,suppliestoconsumersetc.
• DownloadingofGSTR-2• Matchingitwithone’sownPurchaseRegister
– Manuallyontheportal– Using3rd PartyTool– Facilitytoaddnewinvoicenotuploadedbysupplier– Facilitytomodifytheinvoicedata
• FilingofGSTR-2afterincorporatingotherdetailslikeimportsetc.• PayamountduebyITCand/orCash• FileGSTR-3
InnovationsunderGST:Return
Seller Purchaser
Invoice
CurrentSystem GSTSystem
Sellerandbuyerreportthesameinvoicedata intheirrespectivereturns(Rs=Rp)
ITSystemofTaxDeptt matchestheentries
Evenafter5years,mismatch= 9-11%Reasons:Transcriptionerror;changeofdate;differenceinamountonaccountofadditionofitemslikecartage/packagingetc.Onereturnwithsaleandpurchaseannexures
Seller(Supplier)filessalesreturnItgetauto-populatedinthepurchasereturnofpurchaserPurchaser hastoaccept/reject/modifytheentry.MatchingisdecentralizedTranscriptionandothererrorstakencareofTaxaccountingsoftwarebeingupgradedtogeneratemismatchreportbetweenpurchaseregisterandauto-populatedone.3returns(onesales,2nd acceptanceofautocratedpurchasereturnand3rd:taxliability)
Rs Rp
InteractiveReturns
GSTR-1• UploadofData
GSTR-2A• Accept/Reject• Modify/Add
GSTR-2• Upload ofremaining data
GSTR-1A• Accept• Reject
GSTR-1• AutoAmended
Auto-PopulationofGSTR-2
GSTR-2VsPurchaseRegister
• GSTR-2 will get prepared based on GSTR-1 of Suppliers• The Tax Accounting S/W should match purchase registerwith GSTR-2 creating the following:• All invoices which match (Invoice no./Tax amount)• Those invoices which do not match• Wrongly entered GSTIN of buyer• Invoice number does not match• Taxable amount or tax amount does not match
• The invoices not uploaded by seller
FORMGSTR-2A:specifics
PartA PartB PartC PartDInwardsuppliesreceivedfromregisteredtaxablepersonsandamendmentsthereof
ISDCreditreceived TDSCreditreceived TCSCreditreceived
Detailsofcreditanddebitnotesandamendmentsthereof
FORMGSTR-1 FORMGSTR-6 FORMGSTR-7 FORMGSTR-8
FormGSTPMT-2(ElectronicCreditLedgerofTaxPayer)
FromPurchaseRegister FromDownloadedGSTR-2
Matched
Supplier-1
InvoiceNo. Taxableamount
SGST CGST InvoiceNo.
Taxableamount
SGST CGST
Supplier-2
InvoiceNo. Taxableamount
SGST CGST InvoiceNo.
Taxableamount
SGST CGST
Unmatched
Supplier-1
InvoiceNo. Taxableamount
SGST CGST InvoiceNo.
Taxableamount
SGST CGST
Supplier-3
InvoiceNo. Taxableamount
SGST CGST InvoiceNo.
Taxableamount
SGST CGST
InnovationsunderGST:IGST
• HandlingofInter-StateSalesthrumechanismofIGST,apassthroughsystem
• Taxcollectedmovesfromexportingstatetoimportingstatebasedondestinationprinciple
• Branchtransfersarealsotobetaxedunlikecurrentsystem
• Thishasbeendoneastaxwillmoverfromonestatetoanotheranditsaccountinghastobedoneeverymonth.
InnovationsunderGST• Nopaperbasedinfowillbetaken• Electronicauthenticationofcertaindocumentsmademandatory
• SeparateuserIDandpasswordforCAs/TaxAdvocatesandSTPs
• GSTSuvidha providersbeingintroducedtobringScalabilityandeasyaccessforeco-system
• Onestopindirecttaxportal
TheBusinessCaseforGSTSuvidha Providers
• Invoice upload data anytime any day as against waitingfor the end of the month
• Prevent last day – last minute rush on the GST Portal.• Enable a middle tier of entrepreneurs who can developinnovative services and solutions for a variety of taxpayers:-• Industry specific plays (FMCG, autos, manufacturing,etc)
• MSMEs• Provide mobile app based services to their clients24x7 and on the move
• Enable 1000+ small tax accounting S/W providers• Enable optimal, 24x7 use of GST Portal all round• Act as an isolation layer for GST System
Forms/Annexures/Challans etc.underVAT/CST/CentralExcise/ServiceTax
Type VAT/CST CentralExcise ServiceTax Total
Annexure 317 317Challan 10 1 1 12Declaration 28 1 3 32Form 97 13 2 112RequisitionForm 10 10TransitPass 2 2Worksheet 4 4InvoiceFormat 5 5Register 1 1
Total 473 16 6 495
Forms Annexures ChallanGST 12 10 1
GSTNandTaxAccountingS/WProviders
SAP/Oracle/MSDynamics/RAMCOetc.
Tally/FACT/BUSYEtc.
1000+ SmallITcompanies
GSTN TASP
TaxpayerEducationandHelpdesk
• EducationonGSTPortalthrumastertrainersofCBECandStates
• VideobasedTutorial-CBT(Computer-BasedTraining,availableatgst.gov.inunderhelp.)
• OnlineUserManualsandFAQs• 24X7HelpdeskfortaxpayersonITSystem–0124-4688999–[email protected]
• Offlineutilityforinvoiceupload
ApplicationPreviewbasedonprototypes
