All about GST - Everything you need to know about Goods & Service Tax
All about GST - Everything you need to know about Goods & Service Tax. GST is a game changer for the Indian economy as it facilitates of a common market.||All about GST - Everything you need to know about Goods & Service Tax. GST is a game changer for the Indian economy as it facilitates of a common market.||All about GST - Everything you need to know about Goods & Service Tax. GST is a game changer for the Indian economy as it facilitates of a common market.||All about GST - Everything you need to know about Goods & Service Tax. GST is a game changer for the Indian economy as it facilitates of a common market.||All about GST - Everything you need to know about Goods & Service Tax. GST is a game changer for the Indian economy as it facilitates of a common market.||All about GST - Everything you need to know about Goods & Service Tax. GST is a game changer for the Indian economy as it facilitates of a common market.
All about GST - Everything you need to about Goods & Service Tax
- Import Duty,
- Aid etc.
|CENTRAL TAXES||STATE TAXES|
|Central Excise Duty||Central Sales Tax|
|Additional Duty Paid On Goods Having Special Importance
|Excise Duty On Textiles And Its Products.||Entertainment Tax|
|Service Tax||Entry Tax|
|Additional Duty Of Custom||Luxury Tax|
|Central Level Surcharge And Cesses.||Tax on Lotteries|
|Special Additional Duty on Tax||Purchase Tax|
|----------------||State Surcharges and Cesses related to supply of goods and services.|
- These taxes are not equitable
- Indirect taxes is always concealed in the price of a product or services as a person doesn’t know that he is paying tax which is already included in tax.
- These taxes cause the price of an article to raise more.
- They cause huge cascading effect as tax on tax at each and every stage.
- Due to all these indirect taxes levied and charged, there is lack of transparency in the current tax system.
REASONS FOR THE INTRODUCTION OF GST
- To help the customer by levying only one tax from manufacturer to the customer as there is total transparency of the taxes paid by the costumer.
- It will become easier to run or administer the newly introduced tax i.e. GST than other indirect taxes.
- Helps to reduce cascading effect at each stage.
- It will help to generate more revenue and which will leads to high revenue.
- The overall burden borne by the consumer will be decreased as the rates of various commodities will be decreased.
- It will help customers as their investments will increase due to increase in savings.
- It will help to increase employment level.
- The major reason for introduction of GST is to get away the difference created between goods and services.
WHAT IS GST??It is an integrated Tax which is levied on Supply of Goods or Services rather than manufacturing / Production of goods or Provision of Services.
- Possessing the invoice
- Receipt of Goods and services
- Tax actually paid by the supplier to government
- Furnishing the GST Return on timely basis.
TYPES OF GST
- Central Goods and Service Tax – Tax on Intra State Supply of Goods and Services by Centre
- State Goods and Service Tax - Tax on Intra State Supply of Goods and Services by State
- Integrated Goods and Service Tax - Tax on Inter State Supply of Goods and Services by Centre.
LEVY AND COLLECTION OF TAX
- Centre Would Levy And Collect Only Tax Related To Central Goods And Services.
- State Related To State Goods And Service Tax
- Centre Would Collect and Administer Integrated Goods and Service Tax.
Applicability of GST
- Co-operative society
FEATURES ON GST TO GET AN OVERVIEW OF THE SAME
- GST is applicable on Supply of Goods but not on manufacture or sale of goods.
- It is a concept of DUAL GST which means:
- On Intra State Supply Of Goods/ Services - To Be Levied By Centre And States Both
- If There Is Intra State Supply Of Goods And Services Then Integrated GST Will Be Levied by Centre.
- GST will be based on the concept of destination based consumption tax rather than origin based
- All The Rates Of SGST/ CGST Will Be Decided By Both Centre/ States Only On The Recommendations Of GST Council.
- Central Excise Duty
- Excise Duty On Toiletries And Medicinal Preparations
- Additional Duty Of Excise On Textile Products
- Additional Duty Of Excise On Goods Of Special Importance
- Service Tax
- Cess And Sur Charge Related To Supply Of Goods And Services
- Custom Duty
- Luxury Tax
- Entry Tax
- Entertainment Tax
- Central Sales Tax
- Tax On Lotteries
- Purchase Tax
- Cess And Sur Charge Related To Supply Of Goods And Services
|Above 1.5 Crores But Below 5 Crores||2 Digit Code|
|Above 5 Crores||4 Digit Code|
|Less Than 1.5 Crores||No Code|
- The Above Mentioned Coding System Is Known As Harmonized System of Nomenclature Code (HSN Code)
- For Services Accounting Code (SAC Code) Will Be Used.
Registration under GST
- All taxable and Non-taxable Supplies
- Exempt Supplies
- Export of goods or services of a person having Same Pan
- Registration Under GST is important as one can collect GST from its customers and claim Input tax credit of the tax under GST initially paid by him.
- Every person shall have PAN in order to get himself registered under GST.
- Every Person who is liable to get himself registered under GST have to get himself registered State wise, in accordance with the operations of business carried on.
- If a Person is having different business verticals in a state, then separate registration to be taken for each business verticals.
- When A Suppliers Aggregate Turnover Exceeds 20 Lakhs In A year Is Liable To Get Himself Registered But Certain Categories As Decided By Council Are There That Irrespective of The Limit Defined Are Liable To Get Registered.
- In Case Of Inter State Supply
- Non Resident Taxable Persons
- A Person Who Supply Goods On Others Behalf
- Input Service Distributor
- Every Electronic Commerce Operator
- Any Other Person As Per Recommendations of the Council
- Pan Is Mandatory For All The Person Getting Registered But Not For Non- Resident Taxable Person.
- It Is Possible That The Officer Can Reject Application For Registration By:
- Giving Notice And
- Opportunity Of Being Heard
- By Not filing Return Continuously
- By not commencing Any Business
THRESHHOLD LIMIT TO PAY TAX - BY NORMAL TAXPAYER AND SMALL TAX PAYER
- A Tax Payer Having An Annual Turnover of More Than 20 Lakhs Is Liable To Pay Tax And 5 Lakhs In Case Of North Eastern States.
- An Option Related to Pay A Tax At A Fix Rate Without Availing Credits Will Be Available To Only Small Tax Payers Having An Annual Turnover Of Rs. 50 Lakhs And This Scheme Is Called As Composition Scheme Which Both Optional Or Mandatory Depends On The Person.
- A Composition Scheme Supplier Cannot Issue A Tax Invoice.
CASES FOR CREDIT AVAILABILITY
- Credit Of CGST cannot be used For payment Of SGST Nor SGST can be used for payment of CGST
- But IGST Credit can be used for the payment of IGST, CGST and SGST
- Credit of CGST can be used for Payment of CGST and IGST both
- Credit of SGST can be used for the payment of SGST and IGST.
GST SystemIf A Product Is Sold From Mumbai To Nagpur At A Price Of 1000 Rs , Then GST Will Be Charged @10% I.E Rs. 100 (Includes Both CGST @50% And SGST @50% And Then From Nagpur Product Is Sold To Chennai , Then Cost Will Be Rs. 1100 And Profit Of Rs. 1000 Will Be Added To Rs. 1100 And Then Selling Price Will Be Equal to 2100, Further IGST Will Be Charged @10% Which Will Be 210 Rs
- Any Officer of CGST And SGST Authorized By The Commissioner By The Order Either Given In General Or Specific Sense May Conduct Audit Of The Tax Payer.
- A Special Audit Is Conducted When The Situation Is:
- Critical And
- The Revenue Percentage is Very High.
- Before Conducting Audit A Prior Notice Of 15 Days Is To Be Given To The Tax Payer.
- Audit Is To Be Completed Within A Period Of 3 Months From The Date Of Commencement Of Audit.
- Special Audit May Be Conducted By:
- Chartered Accountant
- Cost Accountant
RETURNS UNDER GST
- Normal Tax payers, Tax payers opting Composition Scheme, Input Service Distributors have to file separate electronic returns on different dates as defined.
- Annual Return is to be filed by 31st December of the following financial year.
- Returns which are shortly filed are treated as invalid
Following are the Returns to be filed under GST
|WHAT TO BE FILED||BY WHOM TO BE FILED||Due Date||FORM|
|Details of Outward Supplies of taxable goods or services||Registered Taxable Supplier||10th of Next Month||GSTR-1|
|Details of Inward supplies of taxable goods or services||Registered Taxable Recipient||15th of Next Month||GSTR-2|
|Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax.||Registered Taxable Person||20th of Next Month||GSTR-3|
|Quarterly return for compounding taxable person||Composition Supplier||18th of Next Month||GSTR-4|
|Return for Non Resident foreign taxable person||Non Resident taxable person||20th of Next Month||GSTR-5|
|Return for Input Service Distributor||Input Service Distributor||13th of Next Month||GSTR-6|
|Return for the authorities deducting TCS||Tax Deductor||10th of Next Month||GSTR-7|
|Details of Supplies through E-Commerce operator||E-Commerce Operator||10th of Next Month||GSTR-8|
|Annual Return||Registered Taxable person||31st Dec of following Financial year||GSTR-9|
|Final Return||Taxable person whose registration has been cancelled or surrendered||Within 3 months of the cancellation or date of Cancellation order whichever is later||GSTR-10|
|Details of Inward Supplies if a person is having UIN||Person who have UN||28th of the month following the month for the statement is filed||GSTR-11|
PROVISIONS UNDER REFUND
- At the time of Excess payment of Tax
- Finalisation of Provisional assessment
- Refund of the amount deposited at the time of filing of an appeal
- Refund at the time when tax is paid on purchases made by Embassies or UN bodies.
- Refund of tax for International Tourists.
GSTN PORTALGoods and Services Tax Network (GSTN) is a non-profit non-government company, which will provide shared IT infrastructure and services to both central and state governments including tax payers and other stakeholders.
- Returns and
OPPORTUNITIES FOR CS IN AREAS OF GST
- Help in Tax Planning Under GST
- As The CS Is Already Known as Compliance Officer, If He Enters in GST, Then he may check all the Compliances are done or not.
- Helps to Maintain Proper Records
- Helps to Give Good Presentation on GST with Full Confidence
- Helps to Interpret Laws and Advise On The Critical Matters