GST stands for Goods and Service Tax. A tax has been introduced to the people of India on the historical day of 1st July 2017.

Before going into the complete details about GST Tax, let’s understand the Tax system in India, how it works, how many types of Taxes are there, and whether is it really beneficial to the people and if yes the up to which extent.

GST – Goods and Service Tax in India

GST

The Government of any country needs money for the betterment, Service Enhancement, and proper functioning of the country. Tax plays a vital role and it has a maximum contribution towards the public property and service up-gradation by the government apart from another source of revenue.  GST Guide the reason why the government takes tax from us so that it can make the country’s services better ultimately for every citizen of that country.

There are mainly 2 types of taxes levied on people by the government:

  • DIRECT TAX
  • INDIRECT TAX

Difference Between Direct Tax & Indirect Tax

  • DIRECT TAX: As the name implies, it is the direct tax deducted from the main income of a person’s income either it is his Salary Earned or another direct income source from the property, livestock, crops, etc. He/ she own Like Home rent Income, Real Estate, wealth tax, and others. What is the main drawback about this tax is ‘the more you earn, the more you will have to pay to the government. This ultimately means the rich pay more taxes than the poor.
  • INDIRECT TAX: Indirect Tax is not imposed directly on the income of an individual but rather the tax levied on goods and services. It means that the government increases the cost (MRP) of goods and services and via this increment, he collects tax which is called an indirect tax. Unlike the Direct tax, this tax is paid the same by both rich as well as poor in the same proportion. There is much indirect tax channel either via products or via government service. Some of the taxes are imposed by the central government and some are imposed by the State government which makes the indirect tax system much more complicated tax system to understand.

When GST Has Been Introduced in India?

GST has been introduced by the government to make this complex tax system easy and simplified it where a person has to pay a single tax named GST in the place of many different taxes which had been levied by the government in different proportion on different products and service in the market.

GST has replaced more than 17 already existing Taxes levied by both states as well as central governments on different sectors like Central Excise Duty, Additional Customs duty, VAT (value-added tax), Entertainment tax, service tax, etc.

GST is named as Goods and service tax because it is applied to the supply of both goods and services as well.

What is GST in India?

GST is the Abbreviation for Goods and Service Tax which is levied by the Indian government of the country collectively once in the place of different Indirect tax levied by the government on the supply of good and service to the people.

In one sentence we can say ‘GST is ONE DIRECT TAX for the ENTIRE COUNTRY’

The GST was passed in the parliament on March 29th, 2017 which was introduced to the people and came into effect from 1st July 2017. GST is well accepted among many people and scholars of India.

In a most simple format we can say “GST comprehensiveMulti-stagedDestination-based tax levied on the people of India on every value addition.”

For your more understanding, you can take GST as Gross Service tax levied by the government to the people.

Now in the new GST regime, the tax will be levied at every stage of the sale. When you undergo inter-state sale (Sale between two states within India, Eg: Delhi to Haryana), both CGST (Central GST), as well as SGST (State GST), will be charged. Here integrated GST will be charged on your inter-state sales.

You can go for GST services, Registration, return filing, and much more from the official government portal it via www.gst.gov.in

Types of GST and the tax Proportion levied by Central and State Government

Talking about India as from 1st July 2017, the tax is levied under 3 taxing system:

  • CGST: GST charged by Central Government on Intra-state Sale (Transactions within a state, e.g.: Transactions within Delhi)
  • SGST: GST charged by State Government on an intra-State Sale (Transactions within a State, e.g.: transactions within Delhi)
  • IGST: Transactions Charged collected by the Central Government for inter-state sale (Eg: Transactions between Delhi and Haryana)

In most the cases, Tax Structure in a new regime goes as follows

Transaction Type New Tax Regime Old Tax Regime Details
Inter-State Transactions IGST Central sale Tax + Excise/Service tax Only the Central government takes tax in case of inter-state transactions. It then shares with the state government.
Intra-State Transactions CGST + SGST VAT + Central Excise/Service tax Revenue is shared equally between State and Central Government [Mostly 6% (3% + 3%)]

Clear Illustration of Present GST

IGST

Let us suppose that a dealer in Delhi sold the Good to a dealer in Haryana in total worth Rs. 100,000/-. The tax will be charged as 18% GST.

That means the dealer has to charge Rs. 18000/- as IGST and the total revenue will go into the account of the Central Government.

In another case:

If the same Dealer sells the Good in Delhi of the same worth 100,000/-, then the GST rate applied will be 6%. And in 6% GST3% will go to the central government and 3% will go to the state government.

In this case out of 12000/- GST, 6000/- will go to Central as well as 6000/- will go to state government. Equal 3% to both the government.

Advantages of GST

What makes GST the best tax option is the clear and complete elimination of Cascading tax charges on different Goods and Services and it will affect the cost of goods. Since the tax on tax is eliminated by this GST law, the cost of goods and services automatically decreases.

Another main advantage is that GST is Technology-driven. That means all the GST-related activities can be done via the online portal. Activities like registration, Income-tax return filing, application of refund and responses, etc. are the service which can be online, speeding up the process.

Salient Features of GST

  • Removing Cascading Tax Effect
  • Reliable and Higher Threshold for Registration.
  • Composition Scheme for small business.
  • Simple and Convenient online GST Procedure.
  • Minimal compliances.
  • The best treatment for eCommerce.
  • Logistic increase in Efficiency.
  • Complete regulation of the unorganized sector.
  • Elimination of complex Tax-System before.

Complete History of GST

The biggest success in the Tax Regime in the form of GST brought the smile of many in the country. GST is the Effect of Long term effort applied overtime in the parliament by the many Scholars of our country. So, it is important to know and count the tumultuous years to bring them to the ground.

The Journey of GST in India

  • February 1986With the yearly budget of 1986-’87, finance Minister Vishwanath Pratap Singh proposed the major overhaul about the excessive tax in a structure in India.
  • The year 2000Then prime minister Atal Bihari Vajpayee introduces the concept of GST and sets up a committee in the leadership of the West Bengal finance minister ASIM DASGUPTA to design a better GST model.
  • The year 2003Again the Vajpayee government makes a task force for tax reforms which was headed by Vijay Kelkar.
  • The year 2004Sir Vijay Kelkar, the advisor of the finance minister; recommends GST to replace the already existing complex tax regime.
  • 28th February 2006On this day GST was produced in the Budget speech for the first time. The finance minister P. Chidambaram sets a deadline as April 1, 2010, for the implementation of GST and assures that the empowered committee lead by the finance minister will prepare the strong roadmap of it.
  • The year 2008State Finance Minister constitutes an Empowered committee to look into GST.
  • 30th April: A report was submitted by the Empowered committee as the title ‘A Model and Roadmap Goods and Service Tax (GST) in India’ to the government.
  • November 200910th November: Empower committee submits a discussion paper in the Public domain about the GST Welcoming Debate on that day.
  1. In this month itself, Finance minister Pranav Mukherjee announces the basic structure of GST designed by the Dasgupta committee with the same retaining deadline 2010.
  2. BJP opposed the GST basic structure produced by him.
  • February 2010With the foundation laid for GST rollout by the Finance Minister who starts computerization of commercial taxes in the states. Pranab Mukherjee Postpones the GST to April 1st, 2011.
  • March 22nd: to bring the GST, UPA-II tables 115th Constitution Amendment Bill in the Lok-Sabha.
  • March 29th: The GST bill was referred to Parliamentary Standing Committee on finance which was led by Yashwant Sinha.
  • The GST was replaced in the hand of KM Mani (The finance minister of Kerala) due to the resignation of Asim Dasgupta.
  • November 2012A meeting was held between the Finance minister P Chidambaram and State Finance ministers and decided to resolve all the issues by December 31, 2012.
  • February 2013UPA government declares the resolution to introduce GST. Chidambaram in his budget speech made provision of 9000 crore to compensate the state for losses due to GST implementation.
  • August 2013Parliament standing committee submits a report to the parliament with suggestions of improvement of GST. GST bill gets ready for its implementation in parliament.
  • October 2013Then Chief Minister of Gujarat opposes the GST Bill saying that the state will incur the loss of more than 14000 crore worth every year due to the GST implementation.

Year 2014

GST bill lapses which were already passed by the standing committee due to the Lok-Sabha dissolving. BJP led NDA government comes to power.

December 201418th December: the Cabinet approves 122 constitutions amendment bill GST.

19th December: Finance minister Arun Jaitley introduces a constitution amendment bill (122nd) in Lok Sabha, Congress Objects.

Year 2015

February 2015Finance minister Arun Jaitley sets the rollout Deadline of GST as April 1st, 2016.

May 20156th May: the GST amendment was passed by LOK SABHA.

12th May: The Lok-sabha passed amendment bill was presented in Rajyasabha. Congress demands the bill be sent to the special Committee of Rajya Sabha and demands to curb the GST rate as 18 percent.

14th May: the GST was forwarded to the special joint committee of Lok Sabha and Rajya Sabha.

August 2015Government fails to win the support of the opposition to pass the bill in the Rajya Sabha where it lacks a sufficient number.

Year 2016

  • July 2016Central Opposes Curbing the GST rate at 18% and gets state around.
  • August 2016Both Congress and BJP agree to pass the constitutional amendment Bill.
  • 3rd August: Rajya Sabha passes the constitution amendment bill with the 2/3 majority vote.
  • September 2016September 2ndout of 29 states, 16 states ratify the GST Bill and Pranab Mukherjee gives his assent to the bill.
  • September 12th: GST council was formed by Union Cabinet.
  • September 22nd—23rd: Council was seen meeting for the first time.
  • November 3rd: GST council agrees on the four slabs of GST tax structure regime: 5%, 12%, 18%, and 28% which is including the addition cess on luxury and sin goods.

Year 2017

  • 16th January: This time the final deadline of GST rollout was kept 1st July 2017. All the states agree on contentious issues of dual control of tax rights passed on goods and high sea.
  • 18th February: GST council finalized the Draft compensation law in the parliament which will be useful in the states where there is a loss in revenue in the next 5 years due to GST implementation in that state.
  • March 4th: GST Council approves both CGST and IGST bills.
  • March 20thall the 3 types of GST namely CGST, IGST, and UT GST as well as compensation bill was approved by Cabinet.
  • March 27thAll the GST and compensation bills namely CGST, IGST, and UTGST were tabled in the parliament by finance minister Arun Jaitley.
  • Both Lok Sabha and Rajya Sabha passed all 4 types of GST Bills-
  • Central GST (CGST), State GST (SGST) Integrated GST (IGST), and Union Territory GST (UT GST).
  • May 18th: GST Council fits more than 1200 goods in one of the 4 tax slabs of 2%, 12% 18%, and 28%. On over 80% of mass consumption of the goods, it is either exempted or will be kept under the 5% slabs.
  • In addition to this GST council fixes the amount of cess on luxury and sin goods to create a kitty to tackle the compensation of the state to some extent.
  • May 19th: GST council confirms the 5%, 12%, 18% and 28% service tax slabs.
  • Jun 21stExcept for Jammu and Kashmir, all the states passed SGST Law.
  • June 28thMamta Banerjee announces her party consent to skip the midnight launch of the GST Bill.
  • June 29thcongress also skipped and decide not to participate in the GST launch.
  • June 30th Midnight: GST set to rollout.

Then comes July 1st, 2007, which is known for the historical achievement of Tax law and complexity fixing via the GST launch and implementation.

Who Should Pay Tax?

Under the tax regime in India, a PERSON who carries any business in India irrespective of any place; should be registered under the GST act and if registered should pay tax. In a single line, we can say a person who indulges in economic activity including trade and commerce is treated as a taxable person.

The person here includes an individual, HUF (Hindu Undivided Family), Firm, Company, co-operate Society, LLP (Limited Liability Partnership), Government Company or any co-operation,  corporate incorporated firm under the law of the foreign country, Government, trust, an artificial juridical person any other Legal authority.

A person Who is Liable to Register under the GST Regime

There are some criteria maintained by the government and it had been made mandatory for a person who touches this Criteria line.

So, GST registration is Mandatory for-

  • Any sort of Business whose annual turnover exceeds 20 lakhs in a financial year (Rs 10 lakhs is the criteria for Northeastern states and hill states.)

[Note: if you have the turnover supply on exempted goods and services not included under the GST regime, then this condition is not applicable.]

  • Any person who was registered in earlier tax law (i.e Excise, VAT, Service Tax, etc.) has to re-register under GST too.
  • When a person transfers his business to someone/ demerged, then the GST registration also transfers to the transferee with the effect of the date of transfer.
  • GST is applicable to the person who drives the inter-state supply of goods.
  • The agent of a supplier of goods needs to pay GST.
  • Those who are paying tax under the reserve charge mechanism (goods and service obtained by the buyer, from unregistered dealers and deposited to Government)
  • A person who supplies their product via an e-commerce aggregator.
  • Except for the registered taxable person, the person who is supplying online information and database service access or retrieval from a place outside India to a person present in India, GST is levied.
  • Casually to a person liable to pay tax (1)
  • Non-resident taxable person (2)
  • To the e-commerce operator or aggregator (3)

Who is a Casual Taxable Person under GST?

If a person supplies his goods and service occasionally to a territory where GST is applicable but he does not have a fixed place of business there. Such a person is treated as a Casual taxpayer.

For Example: if a person who has his place of business in Delhi and supplies taxable Service (let’s suppose Consulting) in Goa where he doesn’t have a place of business then he would be treated under Taxable Person Under GST.

Who is a Non-resident Taxable Person?

In case a person non-resident supplies Goods and services occasionally to a territory where GST applies but he doesn’t have a fixed place in India; then, as per GST regime her will be treated in the category of Non-resident taxable person. That means the non-resident has no place of business inside India.

E-commerce Operator or Aggregator

According to notification no. 65/2017-central tax dated 15-11-2017, e-commerce seller/aggregator need not have to register if the total sale goes less than Rs. 20 Lakh.

As per 10th November 2017 GST council meet for the 23rd time, service providers of the e-commerce platform are exempted from the GST registration if their annual turnover goes below 20 lakhs including J&K (10 lakhs in the case of special states)

Looking at the 22nd GST Council meeting held on 6th November 2017, a service provider in case of inter-state services is exempted from GST registration if his annual income lies below 20 lakhs. (Rs 10 lakhs for other states whereas 20 lakhs for Jammu and Kashmir)

And according to the notification no 7/2017n which can be called as the integrated tax law of 14th September 2017, job worker giving inter-state supply service is not asked for GST registration if the annual income goes below 20 lakhs (10 lakhs for other states.

Time of Tax Pay by the Taxable Person

  • According to the Law, every person has to apply for GST registration irrespective of the state. Those who are liable to pay the tax should pay it within 30 days of eligibility for Registration.
  • Casual/ non-residents should apply at least 5 days before the commencement of their business.
  • GST registration is PAN-based and hence before obtaining the registration, PAN is a prerequisite.
  • The Tax Assessee must possess the registration for each state, as registration under GST will be stated wisely.
  • The person has the option to obtain a separate registration for each of the ‘Business verticle’ in the same state.

What is GST RETURN?

A Return or GST return is basically a document carrying all the details of income that a taxpayer is required to file to a tax administrative authority. The Return is used by a tax authority to calculate tax liability.

  • A registered dealer has to file GST under the GST regime for following
  • Purchase of goods/service
  • Sales
  • Output GST (on sale)
  • Input tax credit (GST Paid on Purchase)

Before you file the GST return, you should have GST compliant sales and Purchase invoice in your hand.

Who is Liable to File GST Return?

According to the new GST regime, every regular business has to file 2 GST return every month and one on annual basis. That means he has to file altogether 26 returns in a year.

One thing that is beautiful about return filing is that one has to file the return one monthly return manually under GSTR-1. Other return i.e. GSTR 3B gets auto-generated by deriving the information from GSTR-1 filed by your or your vendor.

Types of GST Return

There are types of returns mentioned to you here under the GST Law. Go with the below information.

Any Regular Business

As per the CGST Act, it goes as below

Return Form Particulars Interval Due Date
GSTR-1 Details of outward supplies of taxable goods and/or services effected from July 2018 to March 2019 ( Taxpayers whose turnover is more than Rs. 1.5 Crores in the previous year) Monthly* 11th of the next month**
GSTR-2 Details of inward supplies of taxable goods and/or services effected claiming the input tax credit. Monthly* 15th of the next month(Suspended now )
GSTR-3 Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of the amount of tax. Monthly* 20th of the next month
GSTR-9 Annual Return Annually 31st December of next financial year
GSTR-3B Return for the months of up to March 2019 Monthly 20th of the next month
  • Complete details of outward supply of taxable goods or service which is affected till June 2018 should be filed by 10th of next month.
  • The registered taxpayer whose turnover was less than 1.5 Crore in the previous financial year, has the option to file a quarterly return GSTR-1 by the end of the next month with the effect from July 2018 to March 2019.

A Dealer with Composition Scheme

One bonus point about the Composition dealer is that he will enjoy the benefits of lesser return filling and compliance along with the tax payment at nominal rates. A composition dealer will file only 2 returns.

Return Form Particulars Interval Due Date
GSTR-4 Return for compounding taxable person Quarterly 18th of the month succeeding quarter**
GSTR-9A Annual Return Monthly 31st December of next financial year

Other RETURN types to be filed with Certain Specific Registered Dealer

There is another tax return that can be filed as follows:

Return Form Particulars Interval Due Date
GSTR-5 Return for Non-Resident foreign taxable person Monthly 20th of the next month***
GSTR-5A Return for Non-resident persons providing OIDAR services Monthly 20th of the next month***
GSTR-6 Return for Input Service Distributor Monthly 13th of the next month***
GSTR-7 Return for authorities deducting tax at source. Monthly 10th of the next month
GSTR-8 Details of supplies affected through e-commerce operator and the amount of tax collected Monthly 10th of the next month
GSTR-10 Final Return Once. When registration is canceled or surrendered Within three months of the date of cancellation or date of cancellation order, whichever is later.
GSTR-11 Details of inward supplies to be furnished by a person having UIN and claiming a refund Monthly 28th of the month following the month for which statement is filed

GSTR-2 and GSTR-3

GSTR-2 and GSTR-3 filling have been suspended with the effect from the 27th GST Council meeting held on 4th March 2018.

GSTR-3B

GSTR-3B has been suspended till March 2019 and all the businesses are entitled to file it by the 20th of next month till March 2019.

The last due date for the month of September 2018 has been extended to 20th October 2018.

GSTR-4

The due date is extended till 18th October 2018 for the quarterly GST return from July 2018 to September 2018.

GSTR-5

The due date for the month of September 2018 is extended till 20th October 2018.

GSTR-5A

The due date has been extended till 20th October 2018 for the month of September 2018.

GSTR-6

The due date is extended till 30th September 2018, from the month of July 2017 to August 2018.

Due Dates Assigned to File GST Return

Due dates of your GST filling may vary and can be extended with the notification or order by the government. Here, we have tried to give you the list of upcoming GST filling due dates which you should not miss!

GSTR-1

Due dates for those who opted for quarterly filing and the turnover goes up to Rs. 1.5 Cr.

Period  Due dates
Jan- Mar 30th April 2018
Apr-June 2018 31st July 2018
July-Sept 2018 31st Oct 2018

For turnover more than 1.5 Cr / For turnover of less than 1.5 cr. But Goes for Monthly Filling

Period Dates
April 2018 31st May 2018
May 2018 10th June 2018
June 2018 10th July 2018
July 2018 10th Aug 2018
Aug 2018 10th Sept 2018
Sept 2018 10th Oct 2018

The penalty for Not Filing Return on Time

In addition to GST filling on time, if you fail to do so, you will be liable to pay the interest as well as late fees for it.

Late fine interest is 18% per annum which has to be calculated by the taxpayer on the amount of tax he is going to pay. The time period will be between the next day of filling till the date of payment.

The late fee is charged as Rs 100/- per day and per act. So, you will have to pay 100 under CGST and 100 under SGST. That means it is altogether 200/day. The maximum late fine goes up to 5000. You will not have to pay the late fine on IGST.

GST RATES Prescribed Goes Like Below

You will have to pay a GST of 0% on regular day-to-day food items. So you need not pay GST on items as follows:

Milk, Jaggery, Salt, Lassi, Kajal, Fresh vegetables, Prasad, Tender coconut Water, Unbranded and not packed in a container: Honey and Paneer, etc.

  • 5% GST Goes For: Fuel and house usable things like PDS kerosene, Coal, Tea, Spectacles, Domestic LPG, Cashew Nuts, Agarbatti, Footwear below 500. Milk food for Babies, Apparels below 1000, coir Matts and Floor Covering, etc.
  • 12% GST is For: Some of the eatable and cereals come under this section of GST. The following items are as Butter, Ghee, Almonds, mobiles, umbrellas, Packed coconut Water, Chutney, Jam, and Jelly, etc.
  • 18% GST is For: Your cleansing products of daily use come in this section. Things like Hair Oil, Toothpaste, Computers, Pasta, Ice-cream, CCTV, Staplers, and Computer monitor less than 17 inches. Etc.

GST Registration | Eligibility | Requirements | Process

By now you know that how important it is to go for your GST registration. But before you proceed with registration keep these things with you.

Documents Required for GST Registration

  • Your Pan Card
  • Aadhaar Card
  • Business registration Prof or Incorporation Certificate if you have.
  • Identity and Address proof of your Promoters with Photographs in it.
  • Address Proof of the Place of Your Business running.
  • Bank account Statement or Cancelled Cheque of that bank.
  • A digital signature of you.
  • Letter of Authorization or Board resolution for authorized signatory.

GST Registration Fees

GST registration is mandatory for all entities involved in the buying, selling, Business, or providing services in India. Their registration fees fixed for the type and category of registration you want to go with. You will get the information about it on the official website www.gst.gov.in

Eligibility to Go for GST Registration

Following are the details about Who Should Register for GST-

  • A person who has already registered under the pre-GST tax regime (i.e VAT, Service Tax, Excise, etc.)
  • The Business whose turnover goes above 20 lakhs (it has been fixed 10 lakhs in north-eastern states like Jammu and Kashmir, Himachal Pradesh, and Uttarakhand)
  • Casual Taxable Person as well as Non-Resident Taxable person.
  • Agents of a Supplier in addition to Input service distributor.
  • Suppliers via e-commerce aggregator.
  • A taxpayer under Reverse Charge Mechanism.
  • The person from outside India providing service/ product to a person in India, other than a taxpayer; have to file GST.

The process of GST Registration

The GST Registration process has been made easy to go for the people in India. It can be easily and securely file online via the government official portal allotted for it.

Based on the GSTN information provided for registration, GST registration goes like this:

  • First, you will have to go to the official GSTN portal directly via gstn.org or any other authorized portal like www.gst.gov.in
  • Landing on the Homepage search for a registration form for the new registering candidate.
  • Now fill your PAN no, Mobile no, and email address in ‘Part A’ of the Form ‘GST REG-01’
  • Your PAN will be verified on the GST Portal. You will be sent an OTP to verify your contact no. and email address as well.
  • On successful verification, you will be given a Reference no. on your Mobile no. as well as your email address filled there.
  • You will also be presented the form ‘GST REG-02’ generated electronically as an acknowledgment.
  • Next, you will have to fill ‘Part-B’ Form i.e ‘GST REG-01’, and specify the application reference no. then, the form will be submitted with the attaching required documents.
  • You will also be issued a form ‘GST REG-03’ in any additional information is required which the applicant need to submit within the 7 working days from the date of REG-03 issue and it can be responded via the form ‘GST REG-04’.
  • After providing all the required documents either via the Form GST REG-01 or GST REG-04, then you will be provided with the registration certificate in the form GST REG-06 for the principal place of business as well as every additional place of business.
  • In case a person has more than one Business vertical within the state, then he can file a separate application for its registration in the Form GST REG-01 itself.
  • On the other hand, if the registration details entered it is not satisfactory, the application submitted will be rejected via the Form GST REG-05.

Note: The applicant who is required to deduct TDS/ TCS shall submit the application via the Form GST REG-07 for his registration.

If he is no longer liable to deduct or collect tax at the source then he can cancel or choose to cancel the Registration.

GST: Frequently Asked Questions (FAQs) and Answer

Some of the questions which come to our mind at the time when we read about GST goes as follows:

What is a GST Invoice?

A GST Invoice is the Document that contains all the relevant details of a successful business transaction where both parties are involved. It must have the product name, description, quantity, details of the supplier and the purchaser, terms of sale, the rate charged, discounts, etc. in it.

Who issues the GST Invoice?

If your business is GST registered, then you will have to provide a GST-complain invoice to your client for selling the Goods and services.

In the case of a vendor, you will get a GST-complaint Purchase invoice from your vendor.

What is an eWay Bill?

E-way bill is the abbreviation of ‘electronic waybill, which is basically a single invoice/ bill/ challan generated via the government eWay bill portal which is www.ewaybillgst.gov.in

A GST registered person is not eligible to transport goods whose value exceeds Rs. 50,000.

The eway bill can be generated as well as canceled through sending or receiving SMS, Android App, and site-to-site integration through API. When the Bill is generated, a unique eWay bill number (EBN) is allotted to the supplier, recipient, and transporter as well.

What is GST Composition Scheme?

This scheme has been introduced by the government under the GST scheme to help and ease the GST filling for the taxpayer whose turnover is less than 1.0 crore and wants to get rid of tedious GST formalities at a fixed rate of turnover.

Who is Eligible for it?

The taxpayer whose business turnover is below the line of 1.0 crore can access the benefits of this composition Scheme. In the case of North-Eastern states including Himachal Pradesh, the limit criteria have been set as 75 lakhs.

Who Cannot Go For It?

  • All suppliers of service other than that of restaurant-related services.
  • Manufacturers like ice cream, Pan Masala, or tobacco.
  • A casual taxpayer or a non-resident taxpayer.
  • Businesses that supply goods through an e-commerce portal.

What are TCS and TDS?

Under the GST regime, a person is charge TCS and TDS at some point apart from CGST, SGST, and IGST.

Except for the TCS and TDS, everything is mentioned above. Here we see what is TCS and TDS as well.

What is TCS?

Tax Collected at Source (TCS): TCS is applicable mainly for e-commerce aggregators. It means when a dealer is selling through an e-commerce platform, will receive his payment after deduction of TCS at the rate of 2%.

This provision is currently in a relaxed position and will not be applicable to notification by the Government.

What is TDS?

Tax Deducted at Source: TDS is the mechanism where tax is deducted by the dealer before making the payment to the Supplier.

The percent of deduction goes as 1% on average.

What is GSTN?

GSTN stands for Goods and Service Tax Network which has been created under the private limited and non-for-profit company which falls under section 25 of the Company Act 1956. It is the technology backbone of GST in India.

What is the GST Council of India and How to Approach It?

GST council is created the selected member assigned to view, moderate, and refine the GST-related issues in India. This is the council that passes the resolution related to GST and its issues to be looked upon. Any updates, notifications, etc. are passed here and then made public.

At present, there are 33 members in the council which is headed by Dr. Amit Mitra who is the Chairman of it.

You can visit its official website via the link www.gstcouncil.gov.in

What is HSN? When Is It Used In India?

HSN stands for Harmonized System of Nomenclature which was developed by the World custom Organization (WCO) to classify all Goods in a standard and systematic manner all over the world.

HSN contains a total of 6 digits of uniform code which classifies more than 5000 products and is accepted worldwide.

In India, a taxpayer whose turnover exceeds more than Rs. 1.5 crore but not than 5.00 Crore will be required to mention only 2 digits of HSN code mandatory.

What is GST SAHAJ?

GST SAHAJ is a simplified one-page GST summary return that is simplified for a taxpayer who has a turnover of up to 5 crores in the last financial year and who follows B2B Supplies (Supplies to consumer and Un-registered person). The law will be applicable in the month of April 2019.

However, payments of tax must have to be made on monthly basis through challan. The taxpayer will have to fill it on a quarterly basis via the GSTR SAHAJ form.

What is GST SUGAM?

GST SUGAM is exactly similar to the SAHAJ where there is little difference with the filing of GST. A taxpayer has whose turnover goes up to 5 crores can file the GST under the SUGAM plan in the same financial year.

The SUGAM plan is applicable to both the type of business engagement.

Either to B2B (Supplies to registered person) or B2B (Supplies to the consumer and unregistered person).

Final Conclusion

In the above article, you have seen comprehensive information about GST Guide, its History, Progress, Moderation, Implementation, Types, and GST rate slabs as well. By now you might have been clear with the complete information of it. You are also helped out with the direct official portal link where you can go and access the service.

It is obvious that due to the implementation of GST, so many complexities of the Tax regime before have been made simple and easily understandable to the people and definitely, it is a boon to the people of India.

So, hope you find our effort to give you the best output about GST Guide, helpful and informative. We will be happy to hear from you on this if you have any suggestions and additional information with you. If you have any queries related to the article, feel free to drop your query in our comment section below. We will be happy to connect with you soon.

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