Goods and Services Tax

GST:

GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017.In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India.

Process of GST:

Rates

The Government has categorised items in five major slabs – 0%, 5%, 12%, 18% and 28%

Components of GST

There are 3 taxes applicable under this system: CGST, SGST & IGST.

  • CGST: Collected by the Central Government on an intra-state sale (Eg: Within Maharashtra)
  • SGST: Collected by the State Government on an intra-state sale (Eg: Within Maharashtra)
  • IGST: Collected by the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu)

The tax structure under the new regime will be as follows:

Transaction

New Regime

  

Sale within the State

CGST + SGST

 

Revenue will be shared equally between the Centre and the State

Sale to another State

IGST

 

There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods.

Registration Mandatory:

  • Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
  • Businesses with turnover above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North-

Eastern States, J&K, Himachal Pradesh and Uttarakhand)

  • Casual taxable person / Non-Resident taxable person
  • Agents of a supplier & Input service distributor
  • Those paying tax under the reverse charge mechanism

Non-compliance:

For not registering the GST it leads to penalty of 10% of total tax amount due subject to minimum of Rs 10,000.

Input Tax Credit :

Types of Dealers :

gst4

Returns to be filed under GST

Return form

Who should file the return and what should be filed?

Due date for filing returns

GSTR-1

Registered taxable supplier should file details of outward supplies of taxable goods and services as effected.

10th of the subsequent month.

GSTR-2

Registered taxable recipient should file details of inward supplies of taxable goods and services claiming input tax credit.

15th of the subsequent month.

GSTR-3

Registered taxable person should file monthly return on the basis of finalization of details of outward supplies and inward supplies plus the payment of amount of tax.

20th of the subsequent month.

GSTR-4

Composition supplier should file quarterly return.

18th of the month succeeding quarter.

GSTR-5

Return for non-resident taxable person.

20th of the subsequent month.

GSTR-6

Return for input service distributor.

13th of the subsequent month.

GSTR-7

Return for authorities carrying out tax deduction at source.

10th of the subsequent month.

GSTR-8

E-commerce operator or tax collector should file details of supplies effected and the amount of tax collected.

10th of the subsequent month.

GSTR-9

Registered taxable person should file annual return.

31 December of the next fiscal year.

GSTR-10

Taxable person whose registration has been cancelled or surrendered should file final return.

Within 3 months of date of cancellation or date of cancellation order, whichever is later.

GSTR-11

Person having UIN claiming refund should file details of inward supplies.

28th of the month, following the month for which the statement was filed.

PENALTY FOR NON-FILING

Fees for filing GSTR-3B and GSTR-4 returns after their due dates :

  • Rs. 50 per day of delay in normal cases
  • Rs. 20 per day of delay for taxpayers having nil tax liability for the month

***Interest on delayed tax payments is charged at 18 percent per    annum on the amount of outstanding tax and is calculated from the day following the missed due date until the actual date of payment.

Refund on Export

Exports are treated as zero-rated supplies.

Taxpayers who export goods or services can choose any of the following options:

  1. Export under bond/ Letter of Undertaking without payment of tax and claim refund of Input Tax Credit or
  2. Pay *IGST after setting-off ITC and claim the refund of tax paid.

There are some conditions laid down for successful claiming of refund of IGST paid on exports:

  1. GSTR-3B for the month is filed
  2. Table 6A of GSTR-1 has been filed
  3. Details of Shipping Bill and Invoice provided in Table 6A of GSTR-1 should match
  4. The IGST amount mentioned in GSTR-3B is equal or more than the IGST mentioned in Table 6A of GSTR-1.

As per Act, 90% of refund is processed on a provisional basis within 7 days of application for refund.

Note – This CA Certificate is not required to be furnished by the applicant, claiming refundunder clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54 of the Act

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