Your Finance department, post-GST comes in place, will need to adapt itself to new tax regime. These changes include taking care of GST compliances, input credit, bank statement entries, credit note and so on. Finance department will be on their toes (literally) all the time post-GST. On a whole, the set of responsibilities will increase for the finance and accounts department, which we will discuss later in the article. It is believed that GST will bring change in the way we work, pay our bills or the way we pay our taxes, import goods and the list goes on.
Each and everything will be transparent when GST will be implemented. It will be next to impossible for Finance department post-GST to perform any kind of tax evasion. Having said that- it will be interesting to note whether Finance department post-GST will be able to adapt to the changes to ensure that they are able to ensure all compliances under the GST Act. Some of the changes that are envisaged are as follows:
To ensure specified official documents:
It will be for the first time that credit note, debit note, bank statement entries, books of accounts and contracts will be specified & validated legally in a draft. Finance department post-GST will do self-assessment and discharge correct tax liability.
Tax Liability under GST would depend on following:
Factors like assessment, time of supply, place of supply, and rate of tax will be decided according to- credit note, debit note, books of accounts, bank statement entries and contracts. Once these factors are taken care of there will be transparency and ease of doing work.
Indian finance department will work hand in hands with indirect tax department post-gst
Finance and Indirect Tax department will be friends forever:
The model GST will make it compulsory for Finance & Accounts department and Indirect Tax department to work together. They will have to work hard on a daily basis to generate a correct assessment of tax and for the implementation of GST. Which means it is important for F&A department to know the new rules and regulations of GST. Click here to know about the changes and rules.
Easy monthly returns:
By now you must be aware of the importance of credit note, debit note, and TDS because in future all of the requisite data that affects the input costs and rates is going to be vital to determine the tax liability. Workforce needs to be fully trained to handle all the cost elements and effect of the same on the input credit or tax liability.