Implication of GST on Vat Dealer _1

Mr. A, An electronic goods dealer is registered under VAT in the state of Delhi. He is making intra- state sale as well as inter- state sale.After the introduction of GST, what are the implications on him are discussed in this article.

Registration

He shall be issued a Certificate of Registration on a provisional basis on the appointed day.Provisional certificate of registration shall be valid for a period of 6 months from the date of issue.He is also required to furnish specified information in the prescribed time period.After furnishing of above information, Certificate of registration shall be granted on a final basis by Central/State Government.

If such person fails to furnish the prescribed information within the time specified, his provisional registration certificate may be cancelled.Provisional registration certificate shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under provision of GST.

Return

The dealershall furnish electronically,the details of outward supplies of goods effected, during a tax period on or before 10^th day of the month succeeding the said tax period.

The dealer shall also furnish, electronically, the details of inward supplies of taxable goods/services, inward supplies of services which is covered under reverse charge and credit or debit notes received in respect of such supplies during a tax period on or before 15^th day of the month succeeding the tax period.

He shall, furnish a monthly return , electronically , the detail of inward and outward supplies of goods/services, input tax credit availed, tax payable, tax paid and other particulars within 20^th days after the end of such month.

If valid return for any previous tax period has not been furnished by him ,he shall not be allowed to furnish return for a tax period.

Registered Dealer shall pay the tax due as per return to the credit of the appropriate Governmentnot later than the last date on which he is required to furnish such return.

Any omission or incorrect particulars discovered, after furnishing a return, shall rectify in the return to be filed for the month, during which such omission or incorrect particulars are noticed, subject to payment of specified interest as applicable.

If the goods has been returned within 6 Months then no tax shall be payable but tax shall be payable by taxable person returning the goods if the said goods are liable to tax under this Act and are returned after a period of 6 months from the appointed day. Further, the seller is entitled to take credit of the tax if he receives goods within a period of 6 months.

Conclusion

After the implementation of GST, a dealer may face new challenges in the areas like IT system integration, working capital, training and education but over a time such issues will be taken care and over a couple of years , he will realize the full potential and benefits of GST.