GST Stands for Good and Services Tax that is an essential rule for India. GST is one indirect tax for the entire nation, which will make India one integrate common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. GST is a single indirect tax that combines various indirect taxes as Service tax, Central Excise tax, customs tax, VAT tax etc.
The Benefits of GST:-
The Disadvantages of GST:-
Businesses with annual turnover more than Rs. 10 Lakhs in special states and Rs. 20 Lakhs in other states are eligible for GST registration. The business proprietary officer is supposed to apply for GST registration within the first 30 days of eligibility.
The online application process offered by GST portal completes your registration within 5-10 working days.
The process is as follows:
Documents for GST registration:
Cases where Registration is compulsory irrespective of Threshold Limit
GST Composition Scheme has been introduced to reduce the compliance burden for the small businesses in India. Any person opting this particular scheme will pay taxes at prescribed reduced rates on the basis of their business turnover. Such a system assures greater compliance ease without the load of maintaining elaborate tax records.
Benefits of GST Composition Scheme for traders and manufacturers :
1. Less compliance burden
A normal taxpayer is required to file at least 36 monthly returns a year under GST, & 1 annual return, failure to which attracts huge penalties.. But the Composition Scheme eliminates the need of so many returns and replaces the system by just 4 (quarterly) along with 1 annual return in form 9A in a year. Quarterly Returns under GST are to be filed under Form GSTR-4 within 18 days after the end of each quarter, thus providing the following tentative due-dates:
2. Lower tax liability
Traders and manufacturers who enroll for Composite Scheme will get the benefit of lower tax rate. It would be as under:
3. Greater liquidity
Greater fund availability is another major benefit of enrolling into the GST Composition Scheme. Unlike those under Composition Scheme, a regular taxpayer is allowed to take Input tax Credit. But he will pay the output tax at standard rate & can only avail the Input credit when his supplier files his return. This means a huge sum of his whole working capital would stay blocked for as long as his supplier doesn’t file his own return.
If a trader or manufacturer is eligible for the Composition Scheme, he should register for the enrolment before March 31, 2018. *The Turnover Limit is proposed to be Rs. 1 Crore instead of Rs. 75 lacs (or 50 Lacs), as per the recommendations made by the GST Council in the 22nd meeting at New Delhi on 6th October 2017.
Every person registered under the GST Act has to periodically furnish the details of sales and purchases along with tax collected and paid thereon, respectively, by filing online returns. Before filing the return, payment of tax due is compulsory otherwise such return will be invalid.
Steps for filing GST return:
GST return can be filed in different forms depending upon the nature of transaction and registration. Return Forms that are applicable for Normal Tax payers and their due dates are:
GST return filing process:
The supplier of Goods generally pays the Tax on supply but on occasion when the reciever/ purchaser becomes liable to pay taxes, such a condition is termed as reverse charge. The concept of reverse charge under GST came into force to increase tax compliance and tax revenues. The earlier taxation system was unable to collect service tax from various unorganized sectors like goods, transport etc.
1. Normal mechanism of levy of GST :
2. Reverse charge mechanism of levy of GST :
Goods under reverse charge mechanism :
GST Invoice is required to be issued as it is a document evidencing supply of goods and services which become the basis for a charge of tax. Invoicing forms a crucial function when it comes to the purpose of execution of a transaction. On every sale/purchase, an invoice is issued by the supplier i.e. the person who is making the sale.
Types of invoices under current Tax Regime :
GST Invoice Particulars :
Format of Invoice :
Bill of Supply :
Dbest is an accepted and well-known GST accounting software in Delhi/Ncr. Dbest has managed to get thousands of businesses on their platform. This is one of the best online & offline accounting software It has experienced over a time and now includes lot of GST accommodating features.