GST is likely to be implemented from 01 July 2017. Introduction of GST would change the way business is done. Since GST is not only the tax change it but complete Business Transformation. It would throw host of opportunities and challenges for the business and it has now high time that businesses/companies roll up their sleeves to work towards creating a GST compliant internal set up by the go-livedate.

Even the Service Tax and VAT authorities in each state are pushing very persuasively to the assessee for the migration of existing registrations under the Goods and Service Tax Network.

Considering the same, we understand that there it has now become vital to migrate the business before 01 July 2017 which broadly involves the following areas.

Phases of Scope

Our scope of work shall broadly include following phases:

Phase I Phase II Phase III Phase IV Phase V
GST Impact analysis Implementation and execution IT Transition Readiness Go live Post Implementation Support

Scope of Services

Phase I – GST Impact Analysis

Indirect tax

Conducting preliminary workshops with sales, procurement, finance and IT teams of the Company to provide insights on GST

Mapping ‘As is’ scenario

End to end mapping of current business scenarios
Analyse current use of tax code and map it to GST Code
Identifying the indirect tax outflows under present regime, set off / credits available and the net indirect tax costs
Advice on GST optimization strategizes on basis of review of existing contracts
Gap analysis and document requirements

GST impact analysis based on the ‘What if’ analysis

Identifying the applicability of Central GST, State GST and Integrated GST on the various transactions under the business scenarios.
Discuss and agree on basic assumptions necessary for carrying out the GST impact on the current set of identified transactions
Building possible GST ‘What if’ scenarios with respect to GST rates, applicability of GST, place of supply rules, change in premise locations, treatment of works contract, credit mechanism
Providing high level inputs on key impact areas, with extent of impact, including impact in alternate scenarios evaluated
Optimization of supply chain
Conduct workshop with the IT team to suggest new requirements i.e. reports, formats etc. from tax perspective considering the tax compliance requirements under GST

Advice on cash flow, cost of capital and profit & loss account impact of GST on current transactions
Impact under GST on exemptions, abatements and / or concessions (basis model law)

Operations

For the GST readiness assessment, conduct workshop/discussions with various stakeholders in the Company to understand company’s current business operations covering following processes:
‘Procure-to-pay’(P2P) process including sourcing/ procurement processes & requirements and its inventory management
‘Order-to-cash’(O2C) process including finished goods inventory management, sales & distribution
‘Record-to-report’(R2R) including accounting & reporting procedures
Performing impact analysis of GST on the processes

Provide high level recommendations (for GST readiness) on changes required on all analyzed processes and operations

Deliverable:

Our deliverable for impact assessment will be in the form of a detailed report/ presentation on process impact assessment and high level recommendations on process and policy changes.

Information Technology and Systems (IT)

Conduct workshops / meetings with the Company’s IT Team to understand ‘As-is’ IT software, configuration and functional coverage.

Analyze various MIS reporting, financial reporting dashboards required for GST.

Prioritize highlighted gaps basis complexity, effort and need

Deliverable:

Our deliverable for impact assessment will be in the form of a detailed report/ presentation on IT impact assessment report and high level recommendations.

Phase 2 – Implementation and execution post final GST law

Indirect Taxes
The main objective for Phase 2 is to validate the Phase 1 impact assessment and make suitable modifications/ amendments basis final GST law and also helping in the making the Company ready for the actual implementation phase. Our scope of work in this respect would cover the following:

Recommend tax positions on key issues relevant for the Company

Revalidate the GST impact on the Company businesses

Provide detailed understanding of revised compliance requirements

Advise on invoicing, formats for returns, computation of taxes, assessments, audits, statutory records, etc.

Reviewing key contracts/ agreements and advise for GST optimization

Advise on final GST rate to be applied on services/ goods provided by the Company.

Revalidate on the optimization of supply chain .

Suggest discussion points with vendors and suppliers for GST discussions

Compliance aspects – Compliance will include guidance and specific advice on registrations and return filing process. The detailed study will include following:

Registration requirement
Invoicing requirements
Computation of tax credits / set offs
Filing of returns including purchases, sales listings
Payment of taxes
Maintenance of statutory books of accounts/ records

Operations

Revalidate the GST impact on the Company business processes (as assessed in Phase I) on finalization of GST legislation.
Providing solution to key impacted areas in relation to identified business processes
For ‘Level 3’ processes analysed under procure-to-pay, order-to-cash and record-to-report processes, provide and document the GST related changes
Define modifications in controls, as deemed appropriate
Defining modifications in policy, as deemed necessary for new Regime
Highlight process steps that require changes in IT systems, if a particular level 4/level 5 process step in performed in an IT system

Conduct high level validation workshop with respective process owners

Phase 3 – IT Transition Readiness

Identification of impacted systems and the nature of impact
Documentation of IT Change requirements – changes to existing system
Documentation of Business and functional requirements for building new capabilities
Assess and recommend changes in the master data
Review of High level recommendations on architecture and design
Recommendation of new reporting and dashboard formats
Data health assessment for key matters and data cleanse requirements

Phase 4 – Go Live

Prepare a GST compliance manual
Support in compliance testing for the Company new processes (live data by providing templates)
Transition Advisory Support to assess whether all tax registrations have been transitioned by the Company
Advice on credit loss or credit carry forward during transition phase
Prepare and provide Compliance checklist and templates to the Company to ensure that all the necessary compliance under GST have been duly completed
Recommend on resolution of issues related to transition

Phase 5 – Post Implementation

Returns filing

Review of monthly liability computation and assistance in deposit of monthly liability (through cash or by utilizing credits) based on the information provided to us;
Assistance in PAN India periodical compliance which include as below:-
Preparation and filing of monthly statements;
Matching of inward and outward supplies
Filing of periodical returns

Assessments

Collation of documents and information and preparation of summary report.

Co-ordinate with GST authorities during the course of assessment proceedings.

Prepare replies to notices and appear before the authorities on behalf of the Company; and Review of assessment order issued by the authorities and also providing update to the Company along with the way forward.

On-call advisory and other support services

Advise on indirect tax related queries, including tax implications on routine transactions
Advise on state specific GST rates i.e. SGST
Advice on matters related to indirect taxes compliances, documentation, records etc.
Reply to any routine query raised by the authorities in relation to periodic compliance

 

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