Impact on Registrations
- Separate registrations in each state
- No more composition choice state wise
- Monthly compliance of payment and return in each state.
Impact on Cash Flow
- Advances made taxable
- Vendor / Customer discounts to be examined for tax impacts
- More caution in case of provisioning by customers
Input Tax Credit
- Credit availability subjected to online filing by supplier
- Credit of State GST restricted in certain cases
- Credit of your output GST of Catering not available to purchaser when purchased for employees
Impact on Output Pricing
- FOC impacts to be factored in supply
- Inputs mostly (fruits/ vegetables/ basic food) may be exempt while output taxable. No more abatements
- Exemption forseen for factory canteens, schools, UN, SEZ only.
Impact on Supply Chain Management
- Inter branch supply of goods / services made taxable
- No more loss of CST in inter state transfers
- No more statutory forms
Impact on Place of Supply
- Place of Supply shall usually be the location of performance. Any back to back sub contracts shall have bearing on overall credit availability.
