What Action Steps Before GST implementation

What Action Steps Before GST implementation

As the GST system is in the transitional phase, and it is the right time for businesses to understand the immediate action points for easy implementation of the GST.

This write up provides a broad thought process and a way forward of major areas actions that a business can re-look. Various immediate action points can be as under:


Resources across numerous departments inside the organization and a core GST team should be shaped which might be a task force equipped with the charge of swish implementation of GST. Since GST isn’t simply a tax reform however it’s an entire business reform, thus the team should have persons from purchase, sales, operations, finance, and GST data skilled in-house or freelance. This team would wish to remain updated with the provisions of GST.


During transition one among the vital tasks would be to know however GST goes to impact one’s business. Therefore, for that purpose businesses must do the GST impact study and analyze the impact. Any action relating transition may be taken one time the impact is thought. getting into a replacement part while not knowing its impact may be a risky proportion. Further, impact assessment helps in channelizing the shift efforts within the right areas. numerous aspects that require to be thought of within the method of impact analysis are as under:

Impact on this business model. Business specific risks and numerous strategic and plan of action choices to be now taken;
Impact on business transactions i.e. sale, purchase, stock transfers etc;
Impact on numerous business departments i.e. Finance & Accounts, procurance, production, stores, Sales, IT, Admin & HR.
Strategizing the correct rating to make the correct balance between margins and volumes;
Impact on existing contracts and agreements;
Change in procurance and different sourcing strategies;
Aspects to be delineated through numerous bodies/ associations;
Assessing the capability building to fulfill the wants of the GST;
The readiness of the ERP system and technological interface to usher into the new tax regime.


In the registration method, it’s crucial for the companies to know the necessity for numerous geographical locations and business verticals that registration is needed. Once this facet is clearly determined, complete documentation should be unbroken in situ to migrate into the GST regime. Associate in the Nursing help of execs should be obtained to go with all the procedural aspects with reference to registration specified the method is completed swimmingly and hassle-free. Readers will learn elaborated intricacies and complete procedural aspects of registrations migration at web.gst.gov.in.


Various shift provisions are prescribed to upset the transfer of credits within the GST regime. Following action points should be taken care of within the credits shift process:

Credits in books should be totally reconciled with returns over an amount of time;
Book stocks should be brought in line with the physical stocks. Regular stock-taking exercise should be conducted throughout this phase; Proper Tax invoices, as well as supplementary invoices, wherever required, should be received from the vendors and same should be properly documented.
Ineligible and improper credits availed within the books and returns should be timely removed;
Businesses should run a credit check for the last one year and avail the credits wherever lost either due non-availability of credit availing document or because of oversight or credits that were assumed to be ineligible or wherever credits lost transferring reciprocally from the books.
Businesses would face several sensible problems in credit transition. Therefore, correct care should be taken whereas transferring the credits making certain due compliance with the law. Further, businesses should have the correct documentation, trails in situ to ascertain the claim of the credit at a later date throughout division audits.


Businesses would endure a modification because of the arrival of GST. thus businesses should timely act and structure its model as per the need of the GST to possess a competitive edge over others. There are several re-structuring aspects which will be looked into, few are as illustrated below for higher understanding:

Whether to vary the producing location, principal place of business;
Adding locations of an offer being nearer to customers/ vendors – creating national presence – No State barriers for supply;
Shutting down locations, deposition strategy, modification in offer chain management;
Whether floating a replacement entity for separate business verticals;
Management hierarchal/ coverage changes – sturdy de-centralized coverage required;
Venturing into new avenues;
Assessing collaborations, partnerships, mergers – Geographical enlargement expansions;
Change in Sourcing ways – Local/ inter-state/ SEZ;
Understanding the character and extent of re-structuring corresponding with the time on the market would be vital. Further, the particular implementation of the restructuring would be a brave task and therefore the same must be closely monitored. Any slip during this facet will have high repercussions.


Understanding the varied choices of restructuring the group action and selecting the most effective supported the risk/ come criteria would be key for the companies. Core GST team should sit with the topic consultants to know the varied potential {ways|ways that|ways in that} during which a group action may be restructured then a choice should be taken on which model would suit the foremost supported nature, size, and risks concerned within the business. Few illustrative aspects of transactional restructuring are as under:

Breaking a composite offer into multiple completely different provides – For Ex: Combos with aerated drinks in restaurants, Cinema halls;
Merging multiple provides into a composite offer – For Ex: Vaastu, High Rise Premium to be incorporated with construction;
Strategizing the stock transfers to avoid capital blockage;
Clear calling it quits the worth to optimize taxes;
Revisiting the Discounts policy – Nature of discount, money discount or deduction, whether or not coupled to invoice or not;
Security Deposits in the role of advances to ease money flows;
Reviewing the rating of all connected party vendors to avoid disputes in group action worth – able to establish arm’s length;
Doing away with the policy of raising Mother PO’s with provides over an amount of your time.
This is simply Associate in a Nursing illustrative list, there may be more aspects to transactional restructuring, thus a business must perceive its numerous business transactions, determine numerous choices of restructuring and apply/ implement identical. the whole exercise may be difficult however it may be well worth the edges accruing from it.


In embrace a modification, it’s crucial for businesses to remain connected with the modification. organization are creating the laws, revised laws, rules, procedures, formats at a bullet speed. Further, upon approval by the GST council, before long every state would return up with its own GST laws and there set of rules, procedures etc. In such fast-moving surroundings, its crucial for businesses to remain proactive and updated with this changes by having endless learning and coaching system in situ. more to accrue real edges out of GST, items of coaching should not be restricted to internal workers however identical should even be extended to the chain of vendors, customers, and different stakeholders. during a VAT system of taxation, Associate in Nursing weaker link during a chain conjointly poses an adverse impact on the whole chain.


Constant communication with the vendors/ customers and their support ar terribly crucial within the swish transition. Carrying on the un-organized vendors into the GST regime may be a risky affair. several aspects of the GST regime like matching conception, compliances etc. would perturb the business in GST regime if the vendors don’t seem to be organized. Therefore, the difficult task of the seller evaluation/ assessment and their readiness for the GST should be assessed well earlier throughout the shift part.


Needs of the companies from ERP would endure a modification within the GST regime, however, the crucial deciding issue is to know the character and extent of the tweaking to the ERP that’s needed to be done to a minimum of begin with. It may be difficult for the companies to make your mind up whether or not to whole migrate into the new ERP or to fully overhaul the present ERP’s or to list out the varied reports, formats, fields that require to be modified within the existing ERP. Therefore, immediate assessment of the ERP systems should be undertaken and a choice of immediate changes within the ERP should be created to make a sure swish flow of operations in GST with reduced manual efforts on compliance.

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