GST Migration From VAT, Excise & Service Tax

  • Blog|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 28 November, 2023

Recent Posts

Blog, News, Insolvency and Bankruptcy Code

IBBI Proposes Changes in Liquidation Regulations to Ensure Transparency in Compromise or Arrangement Schemes

News, Blog, Insolvency and Bankruptcy Code

IBBI Proposes to Strengthen the Regulatory Framework Governing Monitoring Committees Under IBC

Latest from Taxmann

It is now clear that the long wait for GST is over and barring unforeseen circumstances, GST will be implemented on 1-7-2017.

Trade now does not have much time to get ready. The immediate action that is required is in respect of transitory provisions.

Switch over to GST Registration: 

Taxable Persons who are paying service tax, State Vat or Central Excise are required to migrate to GST. Many of the existing taxable persons have already migrated to GST Registration. Those who have not migrated should obtain a provisional GST Registration number as soon as possible. They should get single provisional registration for each State even if they have multiple units/branches/ divisions within one State.

Those taxable persons whose annual turnover is below Rs 20 lakhs but are presently paying tax are required to migrate to GST and then apply for cancellation. In fact, if they do not submit any further details, the registration will automatically get canceled. They should file a tax return as per their present registration for the period ending 30-6-2017.

Precautions while filing return for June 2017: 

The taxable persons should file tax returns up to date for the month ending June 2017. Great caution is required to file this return since if the input tax credit available is not properly reflected in the return, there will be a financial loss.

As far as possible, a taxable person should utilize the available Cenvat Credit and Input Tax credit of State Vat to the maximum possible extent. Only the minimum amount should be paid in cash. This will ensure that issues relating to carrying forward of credit.

Carry forward of input tax credit during switchover: 

Manufacturers and service providers may have unutilized Cenvat credit as of 30-6-2017. Similarly, dealers and traders may have an unutilized input tax credit of State Vat as of 30-6-2017. They should file their return for the period up to 30-6-2017. The balance credit as per this return can be carried forward as follows – 

    1. Cenvat credit return will be carried forward as CGST 
    2. State Vat credit will be carried forward as SGST. They have to file returns electronically in the prescribed form within ninety days.

Other Preparations for GST bill: 

GST Rules state the required contents of tax invoice. The present invoice should be suitably modified to comply with the requirements.

Dealers opting for a composition scheme should prepare a Bill of Supply instead of a Tax Invoice.

Related Article: 

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied