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Vinod Nawab: Need clarity on ‘composite supply’ and ‘mixed supply’ definitions

08 November 2017

Vinod Nawab, ParamERP, says during invoicing, GST on freight varies from invoice to invoice depending on products included. This is complex situation for small – medium size printers

vinod-nawab Vinod Nawab of ParamERP

What has been the impact of GST on your customers? How are your customers coping with multiple GST slabs, tracking of invoices and movement of goods across state borders?
Our customers faced issues during transition period only; initially, there was confusion on applicable GST rate on some products. We created a product – tax ledger and linked product category with HSN code and tax structure. Client master was linked with state code. This way, it was smooth transformation from VAT to GST. We provide seamless two-way integration with Tally, so it was smoother and easier transformation. Across border destination supply is now linked with billing address destination, so tax pattern applicable is different than usual CST earlier and vice versa. That was also taken care during module structuring. 

Do you believe it’s in our best interest that all our (printing and packaging industry) the tangible products are covered under HSN (Goods) so that there is a greater chance of coming under the manufacturing sector and acquiring industry status?
I don’t think printers will get tag of the manufacturing sector. We count the products covered under HSN but every time printers deliver same product as per customer-centric requirements, production skills differentiate one company from another, we can straightforward judge skill level at award functions. There is no rule set for higher volume lower cost like in the manufacturing sector. 

The Ministry of Finance issued a Notification No 31/2017-Central Tax (Rate) dated 13 October 2017, which formalised the decisions regarding the GST rates at the 22nd Council meeting on 6 October 2017. Is there clarity, finally? Please name one thing on your wish list for the government.
We need more clarity on ‘composite supply’ and ‘mixed supply’ definitions on freight; in printing industry we have more than 40 product definitions and respective GST rate classifications. During invoicing, GST on freight varies from invoice to invoice depending on products included. This is complex situation for small-medium size printers.

Latest Poll: GST hopes to change the indirect tax structure in India. Is GST working thusfar?

GST will be beneficial in the long run: 27%

Good law, poorly implemented: 30%

Small firms face a compliance burden: 15%

Multiple slabs, invoice matching and glitches in the GST Network are a pain: 20%

GST is a uniform and simple tax regime for India: 8%

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