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Steps to Implement GST by Trade and Industries

Steps to Implement GST by Trade and Industries, Complete details for how to  Implement GST by Trade and Industries. In this article we discuss how Trade and Industries Implement GST in India. No sooner political hurdles were out and consensus amongst the political party reach in the Rajya Sabha, 122nd Constitutional Amendment Bill,16 states have immediately ratified 122nd Constitutional Amendment Bill and thereafter subsequent steps and actions, which has been taken by the Central Govt. Now Scroll down below n check more details about “Steps to Implement GST by Trade and Industries”

Steps to Implement GST by Trade and Industries:

  1. Understanding of Business Transactions in the changed scenario to find out the impact of GST:
  2. Classification of the transactions into specified w.r.t. Goods & Service & Place of provisions.
  3. Understanding of Flow Chart for enabling the change in business strategies with GST perspective:
    1. Organization
    2. Material Movement – Prior manufacturing
    3. Material Movement – During manufacturing or for other purpose.
    4. Distribution Pattern – Post manufacturing
  4. Understanding functions of each Department at Macro & Micro level to assess the GST impact on their transactions and mapping them with existing Business Model.
  5. Understanding of warehousing & logistic model including depot, branches, stock level thereof for GST impact and restructuring thereof with the perspective of GST.
  6. Understanding distribution patterns till ultimate sale to consumer for GST impact and restructuring thereof.
  7. Understanding of suppliers – nature of goods, place of supply & present contractual terms for GST impact and restructuring thereof and benchmark the new rates in GST.
  8. Understanding service providers including contractors & contractual terms and place of supply for GST impact and restructuring there of and benchmark the new rates in GST.
  9. Understanding of sales policy including schemes, discounts, return of goods for GST impact and restructuring thereof for changing the sales promotion and marketing strategies
  10. Crafting Business Strategies
    1. Analyzing function wise GST leakages & liabilities form the existing business strategy.
    2. Finalizing new business strategies and continuous consultation with GST Core Group of the company (multifunction team).
  11. Contract Review
    1. Finalizing revised terms & conditions in GST regime
    2. Finalizing amendment to the present POs during transition period
    3. Probable reduction in purchase price: A-Class vendors
  12. Transaction Restructuring w.r.t. existing ERP & proposed ERP with interface through GSTN
  13. Developing SOPs in each function of the Department including GST compliance
    1. Finalizing Accounting Control for Tax Compliance and Tax Management.
    2. Mapping Transactions to ERP System
  14. Preparedness for Transitional Period so as to avail transitional credit and not to lose any ITC (Cenvat Credit)z
  15. Continuous Training at all levels
    1. Senior Level Team for decision making
    2. Middle Management for implementation iii. Lower Management & Operating Team for documentation and compliances.

It is advisable to do all activities as mentioned above then only it can be stated Trade and Industry is also prepared not only to implement GST but reap the benefits of GST, which will enhance 1.5% growth of GDP and contribute to the nation building

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