GST Registration: What You Need to Know to Drive Growth

firmway July 27, 2024
GST

Would only registration lay the perfect platform in Cracking Code to GST Success?

While ruling out the possibilities for any further delay in implementation of GST, Finance Minister Mr. Arun Jaitely had expressed, “Of the total 8.09 million existing tax payers, 81.1% have already registered.”

But would only registration itself  be the Cracking Code to GST?

The Importance of Financial Discipline for GST Compliance

Financial Discipline is the primary intention behind drafting the entire law from the grassroots level.
Financial Discipline also helps you find the revenue leakages and manage your business.
It also helps you allocate resources and expenses, which results in profitable outcome.

The Role of Accurate Input Tax Credit in GST

How can we expect a boy, who is not well-dressed at school entry, to stay disciplined all day? Similarly, taxpayers also need financial discipline by cleaning their books and ensuring accurate input tax credit carry-forward. Consequently, less carry-forward leads to fund blockage; on the other hand, excess invites scrutiny and interest costs.

Ensuring Precise GST Tax Credit Carry-Forward with Invoice-Level Matching

So, how to ensure precise tax credit carry-forward with invoice-level matching?

GST

Common Reasons for inaccurate input tax credit:

  1. The deductions made for quality issues, delay in delivery, damages, etc.
  2. Rejected material not sent back.
  3. In the case of works contract: approval of completed work is pending, escalation claims, scope change claims, etc.
  4. Service tax credit on advance payment.
  5. Invoice not received for Goods and Services, and so forth.

Strategies to Ensure Accurate Input Credit for GST

A. Ask your suppliers, service providers, and customers to share pending invoices, debit/credit notes, and unreported deductions or rejections.

OR

B. Get transaction and balance confirmation from suppliers, service providers, and also customers.

Leveraging Technology for Efficient GST Reconciliation

Strict deadlines for Excise & VAT returns (ending June 30, 2017) significantly affect the feasibility of this activity. Consequently, this is where FIRMWAY’s digital platform comes in, effectively expediting confirmations.
Firmway has impressively achieved 80% reconciliations (in value) within a week, and fortunately, this was accomplished with minimal accounts team involvement

 firmway.in to know more about Firmway.