Suggestions for Indian States To Get Through GST Law Easily

GST SOLUTION
1) Direct payment of C GST
2) Direct payment of State GST
3) Direct payment of octroi / entry tax to districts
4) No road permit or any form required.
5) No more hassle of passing on excise duty credit from party to party
6) No more “C” forms
7) Free movements of goods all over india.
8) No more waiting or octroi payments
9) Easy e-payments & return of central GST & State GST
10) “E” GST returns to be monitor by Govt. People very strictly

It has been discussed in parliament that why there should be different taxation for same products in different states where by smuggling of products within states was going on for years together. This creates revenue loss where tax in more.

GST was introduce or discussed in parliament 8-10 years back by then Prime Minister Manmohan singh and was criticized by opposition party BJP they were trying to pinpoint loopholes or bad points but not solutions. Now BJP is in power and the same bill is being discussed without any solution. Problem still persists and the burocrate are making this GST more complicated. All the states of india were crying for their revenue loss which they were getting by way of CST. Even today there is no solution to this problem which is creating unrest in state governments.

Few years’ back postal authority has introduce pin code system as per their wish and convenience which I believe to be changed and should be made as per state and not as per zone.

Postal pin code change to state code
Zone 1 01 Delhi
2 02 Maharashtra
3 03 Gujarat
4 04 so any

Present pin code is of six digit needs to be rearranged as shown below
     
For state For Districts

You can accommodate as many as 99 states and 99 districts 999 words

01– Delhi, 02–Maharashtra, ————, 30—Assam, 31—Orissa.

Now who so ever it may be manufacturer or trader he should invoice party with proper new pincode.

Example – S. K. Enteprises.
L.T. Road,
Shop No. ?????
Indore – 30 00 100

First two digits stands for that state, middle two digits stands for district. And last three digit for words or local area.

Govt. had already categorized goods for GST such as agri food no tax

1} XYZ item 5 %
2} ABC item 10%
3} EFG item 15%

For Example

While invoicing party should charges GST as per Govt. notification once the invoice is made.

80 % will be credited to Central Govt.
15 % will be credited to State Govt.
5 % will be credited to Dist. authority.

This will give direct fund to local authority to make developments in that state or district.

Consigner________
Cosignee_________with pin code 14 00 091

Product Rate Qty Value GST% GST Invoice Total
A 50 100 5000 5% 250
B 105 25 2625 12% 315
C 240 10 2400 20% 480
_____ _____ _____
GST payable 10025.00 1045.00 11070.00

80 % Central Govt. 836.00
15 % State Govt. 156.75
5 % Dist.(octroi) 52.25
———————————
Invoice total 11070.00

Any party who is making invoice should file their return within 1st week of next month that is Jan Sale should be file before 7th of Feb we must prepare programs (computer) where this segregation will be done automatically. When saler makes on line payment immediately that state & district will get their credit in their account.

Sales whether he is a manufacturer or Trader will take full credit of central GST tax from where he has purchased his input. While preparing invoice he will tax his customer on his selling price which is naturally more than his purchase price (as in happening in VAT)

If we adopt this system all states will get revenue and most important is all the districts will get revenue in place of octroi or entry tax. This will eliminate corruption at octroi / entry tax points. This will also make transporters happy because they will save time at octori point and also save fuel, this will give free flow of goods.

Central Govt. & postal department in association with state govt. can decide

pin code – first two digit for state
pin code – second two digits for district or Taluka
pin code – last three digits for words

all cash transactions at octroi / entry tax point will be eliminated. At present sale tax or excise returns are filed with sale figure and tax there on with this procedure seller can make one invoice with different commodities with different GST.

POSTAL PINCODE SHOULD BE OF SEVEN DIGIT.

Stage I – First two digits of pin code
Code no for state of india. Can accommodate as many as 99 states

01 – Delhi
02 – Punjab
03 – Harayana
04 – Rajasthan
05 – Himachal Pradesh

Every state mush have Nationalized bank account for collection of GST linked with above first two digits of pin code like income tax / sales tax / C. excise this GST will be credited to this account when payments are made online.

Stage II -Middle two digits of pin code

Code no for Dist. or Taluka for every state eligible for octroi / entry tax can accommodate as many as 99 districts.

Maharashtra – 14

01 – Mumbai
02 – Thane
03 – Pune
04 – Chichwad
05 – Kolhapur

Example – address of Mumbai will have pincode – 14 01 091

Stage III Last 3 digit of pin code no are for local area of the district or ward. This can accommodate as many as 999

Say Mumbai will have pin code 14 01 091

14 is state Maharashtra
01 is for Mumbai
091 is for local ward

State GST and District octroi/entry tax credit is not allowed only central GST credit can be taken Payment may be made within 1st week of next month for earlier month sale. Second return for state GST & District (octroi/entry tax) GST also should be made with in 1st week of next month.

Summery of GST Credit amount ————————-

Summery of GST Payable amount————————

Balance payable / balance credit

Old excise credit may be taken as opening balance in Central GST.

Old VAT credit may be taken as opening balance in State GST. (Only for that state and not for other state)

Say party who is selling material is in Maharashtra & has got vat credit balance can take credit for Maharashtra state sale GST and not for other state once this credit is used further credit is not allowed but has to charges customer on every invoice made.

SALE SUMMERY
Inv. No Date Party Name (Pincode) Party GST No. Basic Inv. Value Total GST Payable Total Inv. Value Central GST 80% State Code State GST Dist. Code Dist. GST

CENTRAL GST CREDIT SUMMERY
Sr. No Party Name (Pincode) Party GST Basic Inv. Value “C” GST State GST Dist. GST Total Invoice Value

Central GST – E-Payment

Party Name (consignor) & Address – ??????????????????
GST No – ??????????????????
Bank Details – ??????????????????
Payment period – ??????????????????
Amount – ??????????????????
Challan No. – ??????????????????

Supporting Documents Summery.

Opening balance or old Excise credit – ??????????????????
New purchase bill credit – ??????????????????
New E-Payment made – ??????????????????
Last months sale –C GST payable – ??????????????????
Balance of credit – ??????????????????
Carried forward for the next month.

STATE GST E-PAYMENT

Party Name (consignor) & Address – ??????????????????
GST No – ??????????????????
Bank Details – ??????????????????
Payment period – ??????????????????
Amount – ??????????????????
Challan No. – ??????????????????

Inv. No
Date Consignee Party Name Pincode Basic Inv. Value Total GST Payable State Pin code 15% Amount Dist Pin code 5% Amount Challan No.
1 01.07.17 ?????????????-14 01 091 20000 3600 14 540 01 180 16614565
2 02.07.17 ?????????????-20 05 060 28000 4200 20 630 05 210 16626636
3 03.07.17 ?????????????-01 04 010 100000 18000 01 2700 04 900 14636633

Thanks & Regards,
Madhav Gajanan Kelkar
09867206689