Goods & Service Tax (GST)

Largest reform in Tax structure in India is nothing else then Goods &Service Tax (GST). Do you know how GST is different from any other current tax regime? What is the working procedure in GST? What is the implementation system of GST for the person in India?

In the present tax regime, State Government has the power to levy and modify the state related tax i.e. Value added tax (VAT) or Sales tax & various. Similarly, Central Government has the power to levy and regulate the taxes i.e. Service tax on the service sector for the supply of service & excise duty on manufacturing of goods. Hence, it creates the multiple taxes in the country to regulate.

Reasons, why GST is implemented in the Country:-

  • Multiple taxes, Hence, No uniformity of tax rates in the country.
  • Cascading of taxes means ‘tax on tax’.
  • Dealer not eligible to get the input Credit of service tax & Excise Duty, Hence it increase the cost of the goods.
  •  Further, if any state paid the tax to any state will not be eligible to avail the input Credit of such taxes. Hence, it reduces the trading facility between two states in the country.

Hence, it becomes necessary in the country to implement Goods & Service Tax to increase the faith on the tax system by the dealer.

Proposed Goods & Service Tax Structure

Type of GST:-

Now, Central Government & State Government will be levy the GST according to the power specified in the Constitution. Now tax will be levied on every part of Supply of Goods & Supply of Services.

  • CGST: Central Government has the power to levy and collect the Centre Goods & Service Tax CGST on all the intra state supplies.
  • SGST: Similarly State Government has also got the power to levy & collect the taxes on all transactions within the state relates to State Goods & Service Tax.
  • IGST: In case of all inter-state supply of Goods & Service tax, Central Government retain the power to levy and collect all taxest for Integrated Goods & Service Tax (GST).

 On June 14, 2016 Model Goods & Service Tax Law was released by the Finance Minister of India. The drafting of “Integrated GST Bill 2016 was also realeased with the Model GST Law. The framework of GST gives the direction to levy and collection of SGST, CGST, IGST and UTGST. Valuation as per the GST Act, 2016 there are 25 chapters having 162 Sectionos, Rules & Four Schedules.

UNIQUE POINT OF GOODS & SERVICE TAX ACT

1.    Person Who are liable to get registered:-

If the aggregate turnover of the supplier exceeds the limit of Rs.20 Lakhs (for the hill states & North eastern area is Rs. 10 Lakhs). Also, if any person making interstate supply, reverse charge, Non-resident taxable person irrespective of the threshold limit.


2.   Migration of existing taxpayers to GST: 

Those persons who are already registered in any existing law will have to migrate into GST. Provisional certificate of the registration will be issued to the taxpayer after successful migration. This certificate will remains valid upto six months from the date of GST comes into act. The final certificate will be issued within 90 days, Hence taxpayers have lots of time to make changes in their database.

3.    Place of Registration of the entity: 

The place of registration is the place from where the person provides the supply of goods and supply of services. It is good for the virtual market place such as e-commerce business. Any taxable person supplying the goods/services from more than one state then he needs to take separate registration for every state from where he provides supply of goods/services.

4.    Point of Taxable Event: 

Any kind of supply activities of goods & services which includes sales, barter, transfer, license, exchange, rental, disposal or lease made or agreed to be made for the specified consideration are the point of taxable events. Those services, whether or not for consideration or any supply specified in the Schedule I of the Act, made or agreed to be made without any consideration are the taxable events.

5.    Point of taxation of supply of goods will be considered at the earliest from the following dates:

  • Date of Invoice by the Supplier, or
  • Date of receipt of payment by Supplier, or
  • Date when goods are made available (only in case of immovable goods), or
  • Date when goods are removed for the recipient for supply (for movable goods only) or
  • Date on which recipient shows the receipt of the goods in his books of account.

 

6. Point of taxation in case of supply of services is:-

Earliest step are taken as the point of taxable if

  • The date of issue of invoice OR
  • Date on which the provisional service complete OR
  • the date of receipt of payment as an advance, whichever is earlier

.

8. How to utilize the Input Tax Credit:-

Every registered person or taxpayer shall be entitled to get the input tax credit of all the three taxes such as CGST, SGST & IGST as per the guidance specified in the Law.

The following procedures can adopt to avail the utilization of input tax credit are as under:-

Input Tax Credit of CGST can be utilized with the following output Tax as the preference:-

v  CGST (1st Preference)

v  IGST  (2nd Preference)

Input Tax Credit of SGST can be utilized with the following output Tax as the preference:-

v  SGST (1st Preference)

v  IGST  (2nd Preference)

Input Tax Credit of IGST can be utilized with the following output Tax as the preference:-

v  IGST (1st Preference)

v  CGST  (2nd Preference)

v  SGST  (2nd Preference)

 

9. The due dates for filing of Returns by all the suppliers are as follows:-

 

 

 

FORM NO.

 

NATURE OF FORM

 

DUE DATE

 

GSTR-1

 

  Outward supplies made by supplier

 

10th of next month

 

GSTR-2

 

  Inward supplies received by a tax payer

 

15th of next month

 

GSTR-3

 

  Monthly return

 

20th of next month

 

GSTR-4

 

  Quarterly return for compounding Tax payer

 

18th of next month

 

GSTR-5

 

  Periodic return by  taxpayer (Non –Resident foreign)

 

Last day of registration

 

GSTR-6

 

  Return for ISD

 

13th of next month

 

GSTR-7

 

  Return for TDS

 

10th of next month

 

GSTR-8

 

  Annual Return

 

31st December of next Financial year

 

GST Registration services

Tax Consultant provides the services for GST registration with quality work within the time limit specified by the concern. GST registration facility provided by the concern with lowest price in across India. We give you quality advice to run efficient and effective business work. We are the team of professional with great experience in the field of Direct & Indirect Taxation from last 10 years.

 

STEPS TAKEN BY THE US FOR THE GST REGISTRATION

# GST documents: The first step is to arrange all documents which are required for GST registration. Further, since GST is a completely new tax. Hence, we checked the documents first to avoid the rejection of the registration from the department.

# GST application: After arranging all the documents, we filed the registration form along with the relevant documents which are specified below.

# GST registration: After adopting the above two steps properly, if everything goes fine then we will provide you the GST registration certificate within 3-5 days from the date of filing of GST registration.

The following documents are required for GST Registration:-

Business Entity documents required:-

  • Partnership Deed (For Partnership Firm)
  • Certificate of Incorporation (For Private Limited Company)
  • Copy of Bank Statement
  • Authorisation Letter

 

Documents for Business related person required:-

  • PAN Card ( Proprietor/ Partner/ Director/ Authorized Person)
  • Passport Size Photo  ( Proprietor/ Partner/ Director/ Authorized Person)
  • Address Proof ( Proprietor/ Partner/ Director/ Authorized Person)

 

Any Address Proof of the Business Entity:-

  •  Ownership Proof (Electricity Bill, Water Bill etc) – if property is owned. OR
  •  Rent Agreement along with Ownership Proof (if property is on rent)      OR
  •  No Objection Certificate from the owner along with Ownership Proof


 
 
     
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