What is GST?

The Goods and Services Tax (GST) was implemented in 2000 and will be abolished in 2017 with the passage of four related measures into the Act. According to the administration’s plans, an indirect tax system based on the idea of “ONE NATION, ONE TAX” will be put into place. A single tax on the provision of goods and services is called the Goods and Services Tax (GST). Every point of sale is where the GST system collects the tax. Both the Central GST and the State GST apply to intrastate transactions. The Combined GST is applied to all interstate sales.

What is GST

Objective of GST

What are GST Returns

According to the GST Act, every registered firm is required to provide data of their sales and purchases, including tax paid and received, by completing GST returns on a regular basis. Our GST consultant team will handle this for our customers, allowing them to focus on their business’s return, which is a certified record that includes all purchases, sales, tax paid on purchases, and tax collected on sales-related facts. GST returns must be filed, and the taxpayer must then pay the tax due.

Disadvantages of GST

  •  Increased costs due to software obtaining.
  •  Not being GST-compliant can involve penalties.
  •  Smaller businesses will have a higher tax burden.
  •  GST will mean an increase in working costs. 
What is GST

Types of GST

  • ·  Integrated Goods and Services Tax (IGST)
  • ·  State Goods and Services Tax (SGST)
  • ·  Central Goods and Services Tax (CGST)
  • ·  Union Territory Goods and Services Tax (UTGST)

Registration mandatory for whom

Any company engaged in the provision of goods with yearly sales greater than Rs. 40 lakhs for states in the Normal Category (Rs.20 lakhs for the Special Category States)

Any business providing services with yearly sales above Rs. 20 lakhs in states in the Normal Category (Rs.10 lakhs for the Special Category States)

Everyone who is registered under an earlier statute (such as Excise, VAT, Service Tax, and so on) must also register under GST.

When a registered business is transferred to another party or demerged, the transferee must consent to the registration taking effect as of the transfer date.

  • A person making inter-state supplies
  • Casual taxable person
  • Non-Resident taxable person
  • Agents of a supplier
  • Those paying tax under the reverse charge mechanism
  • Input service distributor
  • E-Commerce operator or aggregator*
  • A person who supplies via an e-commerce aggregator

Person supplying online information and database access or retrieval (OIDAR) services from an area outside India to an individual in India, aside from a registered taxable person

Penalty for not registering under GST

An offender who fails to pay tax or makes a short payment must pay a penalty of 10% of the tax amount due, subject to a minimum of Rs.10,000.

When the offender has purposefully evaded paying taxes, the punishment will be 100% of the tax amount owed.

Document required