While inwarding material, why GST control check is so important for Finance people using FiCo in India?

Home / SAP / While inwarding material, why GST control check is so important for Finance people using FiCo in India?

Before giving the importance, i will share the steps in entring gate entry for inward material

GST - Controls to be checked

Steps in entering gate entry for GST bills while inwarding

In this process, where I have to do the gate entry at the security check point and I needed to capture details like .

  • Gate entry serial no
  • Plant code
  • Location
  • Invoice / document number
  • Delivery quantity
  • Received quantity
  • Purchase Order number
  • Vehicle number

After entering the all mandatory fields we will save it. Then it will show one number that is gate entry number.

Controls to be checked

  •  The bill is billed in the name of your company
  • GST number of your company to be mentioned
  • Buyer address to be verified to check within state or outside the state
  • GST number of the buyer is to be checked – with online in https://services.gst.gov.in/services/searchtp

Process after SAP entry

Gate entry number has to be written in the backside of the invoice with gate entry seal & date. Security has to check the vehicle to confirm that no other materials in the vehicle without invoice.

Importance of the process

  • GST Controls :

    As you know GST is introduced from July 1st of 2017 in India. GST control mechanism is highly controlled through online system . The interstate forms are abolished and users has to be inform about the interstate transfer online. It is yet to come from Government for formalities to be accomplished. But these points to be taken into consideration for update the control mechanism in any ERP.  Maintanence of following records are best to have in GST regime, from the day one.

    • Name & GST number of suppliers
    • HSN code of supplier materials
  • Master checks

    • It is better to check vendor / supplier details before entering master
    • GST number along with registered certificate of the vendor should be verified
    • Bank details is required to be checked like IFSC, Account number:

We are checking the bank details based on the cancelled cheque of the supplier. We are trying for PAN number checking , but it can be done through online income tax website.

  • HSN Code importance

We have no idea about HSN code as of now (checking concept by GST website is not known still now). I will inform once i got the clarity.

But i can predict the importance. The HSN code is the basis of the GST tariff rate. So, we should verify the HSN code. If a product rate is 28% but they charged 18% then it is a conceptual mistake. So, the HSN code should be discussed with supplier before making a purchase order to them. Mainly tariff rate should be confirmed. Both the parties should accept the HSN code.

  • GST number importance

The major importance of checking the bills while gate entry is GST number of both the parties to be in the bill. If you gone through the GST number there is a logic in providing the number.

Based on this you can find

  • State of the seller
  • PAN number of the seller
  • Company/Individual or Partnership
  • Number of registered units in a state.

Do you want to know it. See how it is.

Here’s a complete break-up of the proposed GST Identification Number. Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).

  • The first two digits of this number will represent the state code as per Indian Census 2011
  • The next ten digits will be the PAN number of the taxpayer
  • The thirteenth digit will be assigned based on the number of registration within a state
  • The fourteenth digit will be Z by default
  • The last digit will be for check code. It may be an alphabet or a number.