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Category: Report on GST Payment Process

Reconciliation by Accounting Authorities

Reconciliation by Accounting Authorities: The Accounting Authorities through their IT systems are expected to carry out the reconciliation at their level de novo based on communication by GSTN of challan data for successful transaction received on T+1 basis (State AG authorities to be assisted for setting up accounting interface with GSTN) or through Tax Authorities […]

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Reconciliation by GSTN

Reconciliation by GSTN: GSTN through its IT system should carry out reconciliation in following two stages: When the banks report each successful transaction on real time basis, the IT system should validate the bank’s message with reference to CPIN and total amount of the challan, and communicate the discrepancy, if any, immediately. This validation and […]

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RECONCILIATION OF RECEIPTS

RECONCILIATION OF RECEIPTS: Well-developed and stabilized IT systems without manual process discontinuities in banks, RBI and common portal should eliminate/reduce possibilities of errors. However, there may still be reconciliation challenges arising due to errors encountered during the stabilization phase of the IT systems of the stakeholders and their mutual functional integration. Even in the post […]

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PROPOSED ACCOUNTING SYSTEM UNDER GST

PROPOSED ACCOUNTING SYSTEM UNDER GST: Four different Major Heads of accounts would be required to be opened for classifying CGST, IGST, Additional Tax and SGST along with underlying minor heads and sub-heads, wherever required, to account for various taxes. There is a need to standardize these accounting codes for all items covered under GST regime […]

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ACCOUNTING SYSTEMS UNDER GST

ACCOUNTING SYSTEMS UNDER GST: State governments/UTs accounting system also follows, to a large extent, the general principles and procedures of Central government accounting, with minor variations in respect of classification of tax heads of accounts. While the List of Major and Minor Heads of accounts are common to both Central and State/UT Governments accounts, classification […]

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BANKING ARRANGEMENTS UNDER GST

BANKING ARRANGEMENTS UNDER GST: At present Central Government and each State Finance Department prescribes banking arrangements for collection of government taxes. At present, Central and State governments utilize the services of Public Sector Banks/ Other Public Sector Banks (IDBI)/ Private Sector Banks (ICICI Bank, Axis Bank, HDFC Bank) for tax collection. The committee was informed […]

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PENALTY MECHANISM FOR ERRING BANKS:

PENALTY MECHANISM FOR ERRING BANKS: At present, banks are subjected to penalty for delayed fund remittances only. Current system of remuneration to banks for collection of Central Excise, Service Tax and Customs duties is determined on the basis of challans. New parameters of bank performance could be developed, based on timely remittance and reporting of […]

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PAYMENT ACROSS DEPARTMENTAL COUNTER

PAYMENT ACROSS DEPARTMENTAL COUNTER: The issue was discussed in the Joint Committee on Business Process and it was decided that since the emphasis in GST regime is towards automation and least human interface between the tax administration and the taxpayer, therefore there is no need to provide for this mode i.e. payment across departmental counters. […]

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PAYMENT THROUGH NEFT/RTGS FROM ANY BANK (INCLUDING OTHER THAN AUTHORIZED BANKS)

PAYMENT THROUGH NEFT/RTGS FROM ANY BANK (INCLUDING OTHER THAN AUTHORIZED BANKS): The third mode of payment envisaged under the GST regime is OTC payment through all banks including other than authorized banks, i.e., a bank where a tax payer may have account but that bank may not be authorized by the Government to accept GST […]

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Over the Counter payments through Authorised banks

OVER THE COUNTER PAYMENT THROUGH AUTHORIZED BANKS: Another mode of payment that will be employed in the proposed GST regime will be Over the Counter (OTC) payments which will enable the taxpayers to make payment of the taxes at the Authorized Bank’s counter. This will be beneficial for smaller taxpayers that do not have access […]

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