The few important point and actions to be taken by a business immediately is given below:

1. Migration to GST: If you are a existing tax payer under VAT, Central Excise, Service tax etc, and if you are not migrated to GST, do it immediately. If you didn’t migrate, you may end up in trouble at the time of movement of goods.
2. Branches: If you have branches in different states, you have to take separate registration in each state. Ensure that separate registration is taken already, if not take immediate steps for the registration.
3. GST Registration number: Provisional ID given to you at the time of migration is your GSTIN.
4. Communicate: Communicate your GSTIN to all your suppliers, bankers and your service providers.
5. Supply from Unregistered Persons: Ensure that the supply from unregistered persons (either individually or collectively) does not exceed Rs.5000/- in a day. If the total supply (both goods and services) exceeds reverse charge will apply. In case the total supply exceeds Rs.5000/- in a day ensure that the same is related to services part only.

Eg., if you are undertaking a repair in your business premises, and you are employing a local contractor for the works who is a unregistered person. It’s advisable to purchase the materials required in your name and pay for the labour charges only to the contractor.  In this case you will be incurring reverse charge only on labour charges and you will be eligible to take input credit of materials as well as the labour charges you had paid on reverse charge. If it’s a composite contract, you will lose the benefit of input tax on materials

6. Payment to Goods Transport Agency: These payments will attract reverse charge if you are a registered person in GST. Please ensure proper documentation is maintained.
7. Availability of Input Credit: Input credit will be available on almost all expenses you are incurring for furtherance of business. Please be cautious that reverse charge will be applicable on all expenses if it’s from persons, subject to daily limit of Rs.5000/-. You will be eligible to take input credit on such reverse charge payments, if the same is eligible to take credit.
8. Composition Scheme: Those registered persons who are opting for composition scheme needs to file intimation, on or before July 30, 2017. Input credit is not available for those opted for composition scheme.
9. CGST, SGST & IGST: All your intra state (with in state) supply will attract CGST and SGST and you have to show the same in your invoice. If the GST rate is 18%, the CGST will be 9% and the SGST also will be 9%. For interstate supply (outside the state), the tax applicable is IGST. IN case of interstate supply, the entire tax should be shown as IGST. In the above example, the IGST will be 18%.
10. Transfer to Branches: Transfer of goods between places of business outside the state will attract IGST. GST will not be applicable for stock transfer within the state.
11. Advance Taxable: Advances received from clients for supply of goods or services will attract GST. Please ensure GST is collected and paid on advances.
12. Returns under earlier laws: Ensure that the all the returns under the VAT, Central excise etc is filed and the same is fully reconciled with the books of accounts.
13. Credit of Duty on stocks: Ensure that, the stock records are updated as on 30-06-2017 and ensure that the required returns for claiming credit of duty paid is filed within the time limit prescribed.
14. Unregistered Dealers: The registered dealers may prefer to deal only with the registered persons, as they have to pay tax on reverse charge basis if they take goods or service from unregistered persons. Also those who are not registered and the annual turnover is below the threshold of Rs.20 Lakhs, may do a  cost benefit analysis and decide to proceed with registration or not.

 

The above points is for guidance only. To know more GST updates please visit our blog http://www.karthikandsunil.wordpress.com