Goods and service tax is a subsidiary tax for the entire country, a common tax system implemented to improve our country’s efficiency in global markets. GST really helps to reduce the cost of doing business and another benefit for the taxpayer is no advance tax to be paid while he supplies the goods. The ends user is going to bear the tax which was finalized by the last trader in the supplied string. If you are looking for a GST registration in Chennai, there are more top consultants to make your life and business easier.
GST alienated into 3 gears
- CGST – Central goods and service tax means tax collected by the central government on a domestic sale ( e.g. transaction ended within Tamilnadu
- SGST – State goods and service tax means tax collected by the state government on a domestic sale ( e.g. transaction ended within Tamilnadu
- IGST – Integrated goods and service tax means tax collected by the central government for an interstate sale ( e.g. Tamilnadu to Karnataka )
Entitlement for GST registration
- GST system directives that all business involved in buying/ selling goods or rendering services, or even both are instructed to register and get GSTIN. Choose a professional tax registration in Chennai if you are looking for one
- The Registration is compulsory based on the turnover by the company or individual which expect the prescribed target set by the government, i.e. when the company turnover is more than Rs.20 lakhs per annum he has to get the GST Registration
- If the business involves in Supply of goods from one state to another state and the annual turnover is more than Rs.20 lakhs they have to register for GST.
- Online traders should mandatory register under the GST nevertheless of their turnover. For e.g. Olx, Myntra, Amazon.
Temporary or seasonal business person should also apply for GST and go for annual collective turnover.
Benefits of GST
- The beauty of GST is fully automated, technically driven in all the navigation like registration, filling return, application for a refund, and revision all need to be done in the GST portal.
- GST removes the dropping effect of tax
- Advanced brink for GST registration
- Lending hands through Composition scheme for any small business
- Simplifying online services for any compliances
- Enlarged proficiency in logistics
Types of GST returns
- GSTR-1 Form
GSTR-1 Filing is mandatory for all registered taxpayers on monthly or quarterly basis. If the turnover is below or up to Rs.1.5 crore then you can file on quarterly basis, if the turnover is more than Rs. 1.5 crore then you have file on monthly basis along with the company sales /supply detail statement. Few more details we should know about GSTR-1 Filing.
- The due date is fully based on the company turnover
- Return once filed cannot be revised but it can be rectified in the upcoming months, for e.g. If a wrong entry or transaction filed in the month of June, it can be rectified in July.
- The late fee was charged Rs.200 per day before, but as of the latest update, it is been reduced to Rs. 50 and for nil return, it is just Rs.20
- GSTR-2 Form
The GSTR-2 is a tax return form that is used to file the purchase and imports of material and services done for the business activity. The registered taxpayer has to file this return once he gets the registration done.
- The recipient has to file the inward supply details under the GSTR-2B before the 15th of every month for the finalized month.
- This retune has to be filed online in the GST portal with all required statements.
- The time-saving part in this filling is most of the column in the GSTR 2 is autofill with the details provided by the supplier in GSTR-1return.
- The details can also be verified, added, rejected, edited, and finally submitted.
- The taxpayer who is registered under the composition scheme no required to file the GSTR-2 return.
- GSTR-3B Filing
This GSTR-3B filing is most beneficial for the taxpayers, if there is no transaction or sales for the particular period, the taxpayer can file under this Nil-GSTR 3B return, where the taxpayer can benefit by not paying tax and also he can avail the ITR proof for his future business audit.
- The filing process made it very easier for the taxpayer either by portal or via SMS
- If through the portal the taxpayer has to log in his account and submit all his statement to file this return If at all through SMS it is just 30 minutes were he can file his NIL return
- GSTR-4 filing
The GSTR-4 is an annual return for taxpayers registered under the GST composition scheme under the new indirect tax option. This form will require only one return every financial year. The taxpayer has to file the GST CMP 08 form (a special return form which is used by the quantified people to fill the details of their self-assessed liability or tax forgiven quarter) for payment in every quarter for the year. The due date for filing GST CMP 08 is the 18th of every subsequent quarter.
- An electronic waybill is an exclusive document generated electronically for a particular drive/shipment of goods from one place to another.
- This shipment may be interstate or intrastate.
- The value constraint should be more than Rs. 50,000 of the goods value to take the e-way bill.
- This e-way bill is mandatory for the registered individual for shipping goods from one place to another.
- In case the supplier did not generate the e-way bill, it is the duty of the transporter to get an e-way bill to have a secured shipment of goods through any means of transport.
- The e-way bill contains the e-way bill number and the QR code which contains all the shipment details.
- If the e-way bill is not generated or carried for any shipment, the taxpayer will be under loss and pay equal to the value of goods shipped neither the vehicle may get seized under any circumstances.
There are so many glitches and difficulties practiced by the taxpayer in terms of filling returns or handling the GST portal. Mistakes can be done and corrected, but the same has a limitation and timelines in the GST portal. The discomfort portion for taxpayers is while filing GST return they may mistakenly credit their output tax liability into a wrong GST pate. Once the wrong credit is done there is no provision to make revisions or adjustments, so the recipient is forced to make second credit on the correct tax. To benefit the taxpayer CBIC has introduced the new PMT-09 form to facilitate the transfer of cash from one tax rate to the taxpayer’s electronic cash ledger. In this pandemic situation, the PMT-09 is very beneficial for the taxpayer to get back their wrong credit systematically.
GST Offences and penalties
- The registered recipient should not supply any goods or service without any invoice
- Should not submit fake invoices.
- Issuing of invoice under another taxpayer identification number is like violating the provision of GST rules
- While registering into GST portal proving wrong details and submitting the documents.
So binding of so many offenses against the GST rules Companies ACT will be strictly taken into action against the business, owners, directors and the company is liable. The penalty is not exactly drafted by GST, so the penalty may physical or monetary. These fraudulent activities may be arrested and this may be a cause of few new taxpayers who are not aware of what need to be done and how to do things end up in the offenses too, to avoid such circumstance you can approach the top GST consultant if you are in Chennai or wherever you are to avoid such unknowledgeable activities.
GST tariffs in India
|Tariff %||Goods and services|
|5||Household items like spices, sugar, oil etc.|
|12||Computers and processed foods like mobile, Ayurveda medicines, cheese and under services like air tickets and hotels|
|18||Capital goods and industrial intermediaries , soaps, toothpaste etc.|
|28||Luxurious items and durables like car ,refrigerator etc.|
Everything about GST has been finally taken over, but this is the initial for you to make your business into a very professional and legally as per the GST ACT & Rules.
To hire a GST consultant in Chennai.