What is GST?
GST stands for Goods and Services Tax and it is a term mainly denotes the supply of goods and services. The real fact is that it is totally a destination based tax. It created a major change all over India recently. Here, below a brief abbreviation is given. Just have a glance on it.
SGST- It stands for the State GST, which is collected by the State Government
CGST- It stands for the Central GST, which is collected by the Central Government.
IGST- It stands for the Integrated GST, which is collected by the Central Government.
A series of laws come under the GST such as Central Excise Law, Service Tax Law, VAT and Entry Tax etc. At present, the central government adds duty on the factors of manufacture and then it adds the Value Added Tax when a particular item is sold. This GST applies for all the goods except crude petroleum, diesel, motor spirit and natural gas.
In India, the goods and products have the same pricing due to GST and this will lead to the latter to turn into a developed country from the state of being a developing country. If a person is trying to furnish a new home they may have to buy things such as TV, AC and Washing Machine which is expensive one under GST.
Who and all need GST?
GST registration is compulsory for the people whose turnover is more than twenty lakhs and about ten lakhs for the folks who are earning in the northeastern and hill states. In case if the turnover is a supply of only exempted goods which are excluded under GST this condition does not apply. Each and every person is registered under the following laws such as Excise, VAT, Service Tax etc needs a necessary registration under the GST.
The person who drives the inter-state supply of goods
Casual Taxable Person
Non-Resident Taxable person
Input Service Distributor etc.
Casual Taxable Person
The folks who randomly supplies goods, services in a place where the GST is compulsory but he does not have any constant place for executing his business. Those people who come under this scenario are treated as a casual taxable person as per GST.
When a person who does not belongs to that particular location supplies goods and services randomly in a place where the GST is applicable one but he does not own a specific place of business in India. The folks who come under this scenario is said to be the nonresident taxable person.
Input Service Distributor
The facility of Input Service Distributor is optional in nature and the issues taxi invoices on the target of distributing the credit of several GST taxi services paid on the services to the branch with same Permanent Account Number. Hence, the input services can be distributed and not on the capital goods.
Who can collect GST?
Not all the people can collect the GST. Only the concerned registered taxable person can collect GST. The GST amount on the tax invoices should be indicated.
What is the benefit of filing GST?
GST is the most important and one of the biggest monetary reforms in India. All types of businesses including small, large, the medium can be influenced by the tax regime which is an indirect one. It is imposed on both goods and services and it replaces the current indirect taxes like service tax, VAT etc. The major benefit of GST is the cascading tax effect can be removed. In simple words, it means a tax on tax. The service tax which is paid on the several input services cannot be assumed against the output Value Added Tax. Under the certain protocols of GST, the input tax can be accounted across several goods and services.
The optional scheme of for the purpose of the lower taxes especially for the small-sized businesses below fifty lakhs is called the composition scheme. Recently it has been proposed to be increased about seventy-five lakhs. This will automatically bring about layoff from the tax burdens to both small-sized and medium-sized businesses. It helps a huge number of organizations and the companies to increase its consumption. Because of GST, there is a taxation burden to be split equally between the manufacturing and the services. GSTN, which is completely an integrated tax platform, deals with all the aspects of GST. There is a removal of the economic distortions and thus bringing the development of the common national market.
GST’s main aim is to increase the taxpayer base by just bringing both Small and Medium-sized enterprises under its bounds. This automatically brought a huge competition in the Indian market and creation of a playing field between the small and large enterprises. The competition held internationally with the foreign countries such as China, Philippines, and Bangladesh. It helps to build a corruption free tax administration and the entire tax systems are integrated too. Day by day both the production and the distribution of goods and services are increasingly consumed or used and vice versa. The division of the transaction values into a value of goods leads to greater complication, administration and compliance costs etc.
What is the procedure to file GST?
The GST Return is a document which contains information about the income in which a taxpayer is essential to file with the tax administrative officials. This is actually used by the tax authorities in order to calculate the tax liability. Under the rules and regulations of GST, the dealer who is a registered one has to file the GST which includes the purchases; sales, Output GST which is on sales one and Input Tax credit which is GST paid on purchase one. In order to file the GST returns, GST compliant sales and the purchase invoices are the most required one. One can generate the compliant invoices for free on the clear tax bill book. There is a question raised among the public that who has to file the GST Returns?
In the present GST administration, any business which is a regular one and nor the irregular one has to file about three monthly returns and one annual return. By calculation, it amounts to about thirty-seven returns in a year. The person has to enter the full details manually of one monthly return which is about GSTR1. There are other two types of returns such as GSTR 2 and 3 which derive the data from the GSTR-1 filed by the specific person and the vendors. The real fact is that there are separate returns which are compulsory to be filed by the special cases like composition dealer. The return forms are listed here such as GSTR-1, GSTR-2, GSTR-3, GSTR-9, and GSTR-3B etc. These forms can be used for the regular business. The schemes such as GSTR-4, GSTR-9A can be used for the composition scheme.
What are the several types under the GST?
GSTR3B is one of the vital types in order to ease the process of migration of the taxpayers to the new tax administration compared to the previous types. This type was introduced by the government recently; here the taxpayers can list out the invoice details updated one for the first two months. The gstr1 form is a one where the details of both outward supplies of goods and services are provided to the department. GSTR2A is an auto-populated form which allows the folks to check the entire details filed by the concerned supplier. GSTR2 ensures that the details of the inward supplies of both goods and the services are approved one by the recipient of the goods or the services. GSTR 4 contains the minute details; an auto-populated form of the outward details.
Why Uptra for GST Registration?
Uptra Consultancy is a consultancy where you can have your Income tax filing services and GST Registration services. We are a comprehensive group of professionals who provide all related services related to Income Tax. GST service is a new service and we are aware of GST; you need not worry and we have it all for you. Our services offered to ensure that the Taxes are made easy. We mainly include the file taxes for the people who are nonresident too. There is a list of services too such as e-filing Online. Expert Tax Preparation Services, in person tax e-Filing, and NRI Tax e-filing etc. There is a series of benefits such as secure tax vault, maximum tax savings, hassle-free filing and 100 % accurate too. Our professionals are well trained to comb through all your documents to ensure that no data is missed out while filing. You need not worry about the security concern since your documents are protected by the highest grade security with 24*7 year round access. Each and every deduction is utilized in order to maximize your savings. The new GST scheme integrates all the indirect taxes in order to make a composition scheme for each and every business mainly for the small and the medium-sized business.