Features at a glance

  • GST Invoicing
  • HSN/ SAC Code Mapping
  • Auto Settlement from GSTN
  • GST Computation
  • GST Challan Generation
  • Free e-learning
  • GST Filing
  • Basic Concept of GST
  • GST Registration Process
  • GST Composition Scheme
  • File Your GST Returns
  • Reverse Charge under GST
  • GST Invoice Format

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:-

  • It removes several taxes.
  • It produces India as the only single market.
  • It taxes goods and services at the same rates so several debates are eliminated on the tax matter.
  • It decreases taxes on manufacturers. Hence it increases their business and makes them more competitive at national and international level.

The Disadvantages of GST:-

  • The Tax on services would go up considerably from 14% to 20% .
  • Tax on retails Market would be nearly double.
  • Imported goods would be taxed at towering rate of around 6% .
  • There are some retail products where the Tax rate is only 4 percent but with GST it will be costlier like Garments and clothes.

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:

  • Open GST portal. Click on Register Now under your specific category.
  • This is Part A of the registration. Click on New Registration and fill out the details asked for on the page and then Proceed.
  • After verification through an OTP, a Temporary Reference Number (TRN) is issued. You are required to take a note of it.
  • Once again, click on Register Now. Enter your TRN followed by Proceed.
  • After the second verification by an OTP, you can see the status of your application.
  • By clicking on Edit you enter the Part B of the registration. This part has various sections and they require a number of official documents. This process may take some time.
  • After all the documents have been duly verified, you can submit the application through three ways; namely; DSC, E-sign or an EVC.
  • Now, an Application Reference Number(ARN) is issued. A Success prompt containing your ARN is generated. The ARN can be used to check the status of your application.

Documents for GST registration:

  • Rent agreement or electricity bill for place of business.
  • PAN card of the Company
  • Cancelled cheque of the bank account showing account holders, MICR code, IFSC code and bank branch details.
  • Proof of constitution like partnership deed, Memorandum of Association (MOA) /Articles of Association (AOA), certificate of incorporation.
  • List of directors with their identity and address proof in case of company.
  • List of partners with their identity and address proof in case of partnership firm.

Cases where Registration is compulsory irrespective of Threshold Limit

  • Inter State Suppliers
  • Person receiving supplies on which tax is payable by recipient on reverse charge basis
  • Casual taxable person who is not having fixed place for business in State or Union territories
  • On resident taxable person who do not have fixed place of business in India

Standardization Procedure

  • An application needs to be submitted online through the common portal within 30 days from the date when liability to register arose.
  • For the casual and non resident taxable persons need to apply atleast 5 days prior to commencement of business.

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:

  • For 1st quarter – 18th July
  • For 2nd quarter – 18th October
  • For 3rd quarter - 18th January
  • For 4th quarter – 18th April

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:

  • 2% (1% CGST +1% SGST) for manufacturers
  • 1% (0.5 % CGST + 0.5% SGST) for Traders
  • 5% (2.5 % CGST + 2.5 % SGST) for supplier of food or drinks for human consumption (without alcohol)

  • Service Providers cannot opt for Composition Scheme

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:

  • Monthly Details of outward supplies in FORM GSTR-1 by the 10th of next month.
  • Monthly Details of inward supplies in FORM GSTR-2 by the 15th of next month.
  • Monthly Filing of Return along with payment of tax due in FORM GSTR-3 by the 20th of next month.
  • Annual Filing of Return in FORM GSTR-9 by 31st December of next financial year.

GST return filing process:

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 :

Levy of GST

2. Reverse charge mechanism of levy of GST :

Reverse charge mechanism of levy of GST

Goods under reverse charge mechanism :

  • Cashew nuts, not shelled or peeled by agriculturist to any registered person
  • Bidi wrapper leaves ( tendu) by any agriculturist to any registered person
  • Tobacco leaves by an agriculturist to any registered person
  • Supply of lottery by any State Government, Union territory or any local authority to Lottery distributor or selling agent
  • Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of yarns to any registered person

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

GST Invoice Particulars :

  • Name, Address & GSTIN of supplier
  • Consecutive Serial Number
  • Date of issue (related to concept of Time of Supply)
  • Name, Address & GSTIN (if registered) of recipient
  • Description of Goods, Quantity & Taxable Value
  • Rate & Amount of Tax – CGST, SGST, IGST
  • Reverse Charge
  • Signature or Digital Signature

Format of Invoice :

GST Invoice

Bill of Supply :

  • Generally, the GST invoice is issued in order to charge the tax from the recipient and also pass on the credit.
  • In GST there are however some instances where the recipient is not a registered person or where the supplier is not allowed to charge any kind of tax and hence a GST invoice can’t be issued.
  • Instead, another document called Bill of Supply is issued.

Simple GST Billing & Filing

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