Webinar on GST

How does GST Eliminate Tax on Tax? [Video]

In the current regime of indirect tax system, the chain of input credit, at a certain point, is broken. Let’s say Central Sales Tax (CST) applicable on interstate trade is non-creditable, leading to a break in the input credit chain. Similarly, a manufacturer charging excise duty on sale to a dealer causes the chain to break. This leads to taxes forming a part of the product cost.

How to Set Off Input Tax Credit Against Tax Liability in the GST Regime

Now let us understand how to set off your input credit against your tax liability in the GST regime. 

GST is a dual concept system. On every transaction (within a state), there will be component of Central GST (CGST) and State GST (SGST). Integrated GST (IGST) is for interstate transactions. Therefore, it is important for businesses to know how to set off the input credit against each of these components in the order as prescribed by the Law.

The order in which credit needs to be set off is explained in the table below:

Registered Dealer? Learn How to Transition to GST

With each passing day, we are moving one step closer to the GST regime. The GST Bill has been  approved by the President, and the GST Council is in the process of forming the rules. As businesses begin their preparation towards the new taxation system, obtaining your GST registration is the first step in GST transition process.

Liability for Registration in GST

Region	Aggregate Turnover
North East India + Sikkim, J&K, Himachal Pradesh and Uttarakhand	Rs 10 Lakhs
Rest of India	Rs 20 Lakhs

Composition Levy – Does it Really Make Sense?

The biggest Tax reform in Independent India, Goods and Service Tax Act (GST) has brought on a platter, a concept called “Composition Levy’ to its taxpayer.

Obviously, this is not a new concept to the Value Added Tax regime. Way back in 2003, this concept was introduced in State VAT ACT under which the dealer is required to pay a fixed rate of tax on his declared turnover, and no VAT set off / credits would be down the supply chain. The biggest attraction for a dealer then, under that law, was that they were not required to maintain proper books of Accounts, or records of material transacted under VAT law. It goes without saying that if they were maintaining books it was not subject to scrutiny under the respective VAT laws.

How to Apply for a New GST Registration

In the post titled Registered Dealer? Learn How to Transition to GST,  we discussed the essentials of GST registration, and the forms needed for existing dealer registration. In this post, we will understand the registration process for new business registrations.

Liability for Registration in GST

Region	Aggregate Turnover
North East India + Sikkim, J&K, Himachal Pradesh and Uttarakhand	Rs 10 Lakhs
Rest of India	Rs 20 Lakhs

What is GST? How does it Work?

August 3^rd, 2016 will be recorded as a red letter day in the history of Indian taxation due to the near unanimous passage of 122^nd Constitutional Bill in Rajya Sabha, paving the way for roll-out of GST (Goods and Services Tax) in India from 1^st of April 2017. Goods and Service Tax Bill has significantly evolved over the past decade and is touted as the single largest tax reform in India since independence. It is estimated to boost GDP by 1.5 to 2%. ‘One India, One Tax’ will be the new reality with GST subsuming over ten indirect taxes and making India a common market. Apart from elimination of cascading effect, the benefits of simplified compliance, technological backing and uniform process across India will contribute significantly to ‘Ease of doing Business’. However, the success of a business will significantly depend on the ability to understand and adopt to this new reality as certain existing business practices will have to undergo changes.

Goods and Services Tax is a comprehensive tax levied on supply of goods and services across India. GST (Goods and Services Tax) is a Destination based Consumption tax, and the taxable event is Supply as against the existing taxable events of sale, manufacture or provision of service. Draft model GST law was first made public in June 2016, after which the Revised Draft Law was made public on 26th November 2016. It is high time that businesses, industry/trade bodies, professional associations and the like provide valid inputs at an early date, and ensure the final GST Law addresses all the concerns  to make the transition smooth.

How is GST Different from Current Tax Structure

GST (Goods & Services Tax), a single unified tax system aims at uniting India’s complex taxation structure to a ‘One Nation- One Tax’ regime. It is the biggest tax reform since India’s independence.

What does this mean? What will be its impact? What is the difference between GST and current tax structure?

GST proposes to remove the geographical barriers for trading, and transform the entire nation to ‘One Common Market Place’.

Let us understand the fundamentals of GST, it is a dual concept tax system. Under this system, tax is administered, collected, and shared by both the Centre and the State governments, based on the nature of transaction (within the state or interstate).

The tax components of GST 

What are the Types of Returns Under GST?

Convergence is the key to GST; convergence between states and central taxes.

Consider what happens today. A manufacturer who is compliant under Central Excise, Service Tax, and VAT has to file returns as specified by each of the states.  The manufacturer has to deal with returns, annexures, and registers for Excise, Service tax and VAT with monthly, quarterly, half-yearly and yearly periodicity.

GST, Price Inflation and Profiteering

“Government may consider anti-profiteering clause to ensure benefits of GST reach consumers”, screamed a headline in a business newspaper a couple days after the constitutional amendment pertaining to GST was cleared by Rajya Sabha, removing the biggest hurdle for the process to take off. The intent of the government is to save the common man from price escalations that may arise from the passage of GST, some of which can be attributed to profiteering. It is ironical that such a fear should arise when the underlying premise is the promise of a simplified tax regime, and therefore lower cost of compliance, in turn leading to increased compliance and a simpler administration combining the multitude of agencies involved in enforcement.

GST Input Tax Credit Explained [Video]

One of the fundamental features of GST is the seamless flow of input credit across the chain (from the manufacture of goods till it is consumed) and across the country. In this section, let’s discuss about various conditions laid down by law to avail GST input tax credit on supply of goods or services.

All of the following conditions need to be satisfied to avail GST Input credit:

    • The dealer should be in possession of Tax Invoice / Debit or Credit Note / Supplementary Invoice   

       issued by a supplier registered under GST Act.

    • The said goods/services have been received.

    • Returns (GSTR-3) have been filed.

    • The tax charged has been paid to the government by the supplier.

How to Amend, Cancel, or Revoke GST Registration

Let us now understand how to:

• Amend your registration details
• Apply for cancellation of registration
• Revoke your registration if it is cancelled

Amending Your Registration Details

How to File Your GST Returns

Every registered taxable person has to furnish outward supply details in Form GSTR-1 (GST Returns-1) by the 10^th of the subsequent month. On the 11^th, the visibility of inward supplies is made available to the recipient in the auto-populated GSTR-2A. The period from 11^th to 15^th will allow for any corrections (additions, modifications and deletion) in Form GSTR-2A and submission in Form GSTR-2 by 15^th of the subsequent month.The corrections (addition, modification and deletion) by the recipient in Form GSTR-2 will be made available to supplier in Form GSTR-1A. The supplier has to accept or reject the adjustments made by the recipient. The Form GSTR-1 will be amended according to the extent of correction accepted by supplier.

How is the Value of Goods & Services Determined under GST?

                             

The value of all the goods and services consumed in an economy is arrived at based on certain metrics. In the current tax regime in India, this value is calculated in different ways. An overview is provided in the table below:

Tax                 Value of goods/services

Excise	Based on transaction value or quantity of goods or MRP
VAT	Based on sale value
Service Tax	Based on taxable value of service rendered

जी एस टी कम्पोजीशन लेवी की व्याख्या

जी एस टी कम्पोजीशन लेवी की व्याख्या

वर्तमान राज्य अप्रत्यक्ष कर शासन ने छोटे डीलरों के लिए कम्पोजीशन स्कीम के नाम से एक सरल अनुपालना उपलब्ध कराई है। इस स्कीम के तहत आप,

• कारोबार के एक निश्चित प्रतिशत भाग पर ही करों का भुगतान कर सकते हैं
• केवल आवधिक रिटर्न दाखिल कर सकते हैं (प्रायः त्रैमासिक आधार पर)
• विस्तृत रिकार्ड न रखने या कर इनवाइसिंग नियम पालन न करने का विकल्प हो सकता है
• इनपुट कर क्रेडिट (आईटीसी) नहीं ले सकते।
• बिक्री पर कर एकत्रित नहीं कर सकते।

जी एस टी के तहत कौन-कौन से रिटर्न्स होते हैं ?

जी एस टी के मूल में है एकीकरण; राज्य और केंद्र सरकारों के टैक्स का एकीकरण।

गौर कीजिए कि अभी क्या हो रहा है। सेंट्रल एक्साइज़, सर्विस टैक्स और वैट का पालन करने वाले किसी मैन्युफैक्चरर को प्रत्येक राज्य द्वारा निर्धारित किए गए रिटर्न्स भरने पड़ते हैं। मैन्युफैक्चरर को एक्साइज़, सर्विस टैक्स और वैट के लिए मासिक, तिमाही, अर्धवार्षिक और वार्षिक आधार पर रिटर्न्स, एनेक्ज़र्स और रजिस्टर्स से निपटना होता है।

जी एस टी लागू होने पर आपको केवल जी एस टी रिटर्न्स भरने पड़ेंगे, चाहे आप डीलर हों, मैन्युफैक्चरर हों या रीसेलर हों।

आइये, जी एस टी के तहत विभिन्न प्रकार के रिटर्न्स के फॉर्म समझ लेते हैं।

जी एस टी के तहत, करदाता द्वारा रिटर्न्स फाइल करने के लिए 19 फॉर्म्स होंगे। ये सभी फॉर्म्स ई-फाइल करने होंगे। हर फॉर्म के विवरण उनकी लागू होने की शर्तों और अवधि के साथ नीचे दिए गए हैं।

जी एस टी पंजीकरण कैसे संशोधित, निरस्त या निरसित करें ?

आइए समझें कि निम्न कार्य कैसे किए जाते हैं:

• आपके पंजीकरण विवरणों को संशोधित करना
• पंजीकरण निरस्त करने के लिए आवेदन करना
• आपका पंजीकरण निरसित कराना यदि यह निरस्त कर दिया गया है

आपके पंजीकरण विवरण संशोधित करना

नए जी एस टी पंजीकरण के लिए कैसे आवेदन करें ?

पंजीकृत डीलर, जी एस टी के लिए कैसे बदलाव करें, शीर्षक वाली पोस्ट में हमने पंजीकरण की अनिवार्यताओं, और मौजूदा डीलर पंजीकरण के आवश्यक फार्मों के बारे में चर्चा की। इस पोस्ट में हम नए व्यवसायों के पंजीकरण हेतु पंजीकरण प्रक्रिया को समझेंगे।

जी एस टी में पंजीकरण हेतु बाध्यता

क्षेत्र                                    पंजीकरण की बाध्यता

पूर्वोत्तर भारत                      रु. 10 लाख
शेष भारत                           रु. 20 लाख

यदि आप नियमित डीलर या कम्पोजिट करदाता हैं, तो आपको निम्न करना होगाः

अपने जी एस टी रिटर्न कैसे दाखिल करें ?

प्रत्येक रजिस्टर्ड करयोग्य व्यक्ति को अगले माह की 10 तारीख तक बाहरी आपूर्ति विवरण फार्म  जी एस टी आर-1 में दाखिल करने होंगे। 11 तारीख को, आंतरिक आपूर्तियां प्राप्तकर्ता को जी एस टी आर-2ए में स्वतः भरी दिखेगी। 11 से 15 तारीख तक की अवधि के दौरान फार्म जी एस टी आर-2A में कोई सुधार (परिवर्धन, संशोधन और विलोपन) किए जा सकते हैं और अगले महीने की 15 तारीख तक फार्म जी एस टी आर -2 में प्रस्तुत किया जा सकता है। प्राप्तकर्ता द्वारा फार्म जी एस टी आर -2 में कोई सुधार (परिवर्धन, संशोधन और विलोपन) आपूर्तिकर्ता को फार्म जी एस टी आर -1ए में उपलब्ध कराए जाएंगे। आपूर्तिकर्ता, प्राप्तकर्ता द्वारा किए गए समायोजन स्वीकृत या अस्वीकृत कर सकता है। फार्म जी जी एस टी आर -1 को आपूर्तिकर्ता द्वारा स्वीकृत सुधारों की सीमा तक संशोधित किया जाएगा।