GST Implementation : Responsibility of Which Department ?
Contrary to common belief GST is not just the duty of finance or account department, it requires collaboration from all division of the company. Read on to discover what are the changes that need to be in place to order to ensure GST is implemented is a swift.
Training
Treasury
Identify training policy to disseminate GST know-how within the organisation.
What is How to GST Tax GST implement GST Planning
Lastest GST updates
Sales & marketing
Carefully review the cash flow. Although liquidity may be improved (because existing stocks bear no GST), however the GST is still chargeable and payable by you whether or not the cash has been received by customer. Failure to pay GST promptly can have serious financial consequences.
Human resources
Review and modify, existing stationery, especially “tax invoices” for supply of goods and services. Arrange for printing new forms in advanced as many other may be making similar demand on printing. Modify cash register; Assess whether GST will have any effect on contract obligations; Ensure marketing personnel understand the basis for price displays on price tag, price cards, and in advertisement (take into account factor such as “discount” and “credit”. Review credit terms of existing customer, whether it
Review current employee benefits policy to identify the potential GST payable by company. Updating current employment policy and contract as documentation for GST audit.
will trigger the “bad debt relief” mechanism. Consider whether to display pricing “inclusive” or
Inventory
“exclusive” of GST.
Account & finance
Review the accounting system to ensure that it creates the proper and convenient entries required for filing GST return. Identify the activities, transactions and categories of revenue and expenditure for which GST could have implications. For instance, separate records will have to be kept of sales at different rate of GST.
Depending on taxation of stocks and capital goods under the earlier sales tax and transitional provisions for reimbursement, decide whether such purchases should be advanced or delayed. Full comprehension of the required delivery procedures that are in line with GST policy.
Identify the precise stage at which GST is applies to each type of supply.
GST project team Appoint a senior staff to ensure that things get done at the right time and in the right order to prepare for GST. Use project planning software such as basecamp.com or teamgantt.com to monitor the team’s progress. This staff member should be in charge of training and ensuring among themseleves their levels to understand GST and how it may change their work internally, with suppliers and with customers (for example : in a retail store, the paperwork needed to refund to tourist under Tourist Refund Scheme “TRS”). Identify whether the company activities are eligible to use the “cash” basis instead of “invoice (accounting) basis”; if this option is available identify which is more advantages Determines whether change of accounting period is needed to ease satisfaction of GST requirements; If an activity is conducted by a company that is part of a group of companies, determine in the light of administration and cash flow) whether it should go for group registration; Review any possible advantages from in house provision of “exempt” supply services; Decide whether to carry our GST implementation in house or hire external aid Monitor progress and reporting from gst consultant. Preparation of standard operating procedure to ensure company wide operating policy and documentation need in preparation for future GST audit. This is just a sample of the things to do base on general departments, your organisation may differ. This list is created as reference to start you GST planning and implementation. It is not exhaustive, add more to the list as you go along. Note : This is just a reference, it does not constitute a GST advice or recommendation. Consult a GST Consultant if in doubt.
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