GST for Jewelry Retail Stores in India

Goods and Services tax is expected to be rolled out for Jewelers between April 2017 – September 2017. If you are running a Jeweler store  in India, You might be preparing for the transition from VAT to GST. This post gives a quick heads up on what is to come and what needs to be attended while you move to GST from VAT.

VAT Vs. GST

The Goods and Services Tax Council, which will decide the GST rates, has discussed levying 16% GST rate on gold jewellery, cutting customs duty on gold to 2% from 10%, and levying 4% GST on gold bullion. After GST, the consumer will end up paying around 6 percentage more by way of tax as at present the total tax comes to around 12.5%. Currently there is a value added tax of 1% on gold jewelry in the recent Union budget an excise duty of 1% was introduced. It needs to be seen at what rates the Government fixes GST for Jewelry.

How to move from VAT to GST?

  • If you are registered with VAT and have a valid PAN, you will automatically be migrated to GST
  • A Provisional Certificate of Registration will be issued in GST REG-21
  • You have to submit and apply for Registration by submitting REG-20 Form within 6 months
  • After submission, you will be issued a Final Registration Certificate in REG-06

Which is the best GST Software to use for Jewelry Shop?

As all the Tax Filings will have to be done electronically, its important to choose your accounting software wisely.

Jilaba

Jilaba is the old fashioned legacy software popular in  India. Though its widely used, It has disadvantages of not being on the cloud and compromises security. If you are considering a GST software, It will be wise to move to a Cloud based Accounting System which has the capabilities to manage a Jewelry store

Reach Accountant

Reach is the only Online Jewelry Software with GST Capabilities and ability to give you features specific to Jewelery stores. It saves investing on servers, lan etc and connects multi branches seamlessly using Cloud technology. To get a quick demo of our product, you can Visit www.reachaccountant.com

What are the Changes to the Customer Bill under GST?

Rules for the Bill to be issued under GST

The following details should be displayed in the Tax Invoice

  • The Tax Invoice should have unique serial numbers (number or Alpha numeric)
  • The State Name and State Code Should be mentioned
  • GST Identification Number should be displayed
  • HSN Code for the product/ service needs to be mentioned
  • Taxable value after deducting discount should be displayed
  • The State GST, Central GST and Integrated GST should be shown seperately

What Returns have to be filed under GST by Jeweler?

  • 10th of every month, you will declare your sales in GSTR-1
  • Between 11th – 15th, Your purchase (inward supply) will get auto-populated and you are allowed to make corrections in GSTR-2A
  • On 20th, the auto-populated GSTR-3 will be available for filing and payment
S.No GSTR Return For Due date To be filed by
1 GSTR – 1 Sales (Outward supply) 10th All
2 GSTR-2 Purchase (Inward supply) 15th All
3 GSTR-3 Monthly Return 20th All
4 GSTR-4 Quarterly return 18th of subsequent quarter Compounding Tax payers
5 GSTR-5 Periodic return for NRI Last day of registration NRI
6 GSTR-6 Return for ISD 15th
7 GSTR-7 Return for TDS 10th
8 GSTR-8 Annual Return 31st Dec All

What will happen to the balance of input tax credit pending currently?

You are allowed to carry forward the balance CENVAT credit (provided it is allowed as input under GST). To avail the credit, make sure the last filed VAT returns denotes the available credit.

What do you think will be the challenges for Jewelery Stores in India after the implementation of GST?  Please post your views in comments below.

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