Goods and Service Tax
What is GST ?
GST stands for Goods and Services Tax and it is a term mainly denotes the supply of goods and services. The real fact is that it is totally a destination based tax. It created a major change all over India recently. Here, below a brief abbreviation is given. Just have a glance on it.
SGST- It stands for the State GST, which is collected by the State Government
CGST- It stands for the Central GST, which is collected by the Central Government.
IGST- It stands for the Integrated GST, which is collected by the Central Government.
A series of laws come under the GST such as Central Excise Law, Service Tax Law, VAT and Entry Tax etc. At present, the central government adds duty on the factors of manufacture and then it adds the Value Added Tax when a particular item is sold. This GST applies for all the goods except crude petroleum, diesel, motor spirit and natural gas. In India, the goods and products have the same pricing due to GST and this will lead to the latter to turn into a developed country from the state of being a developing country. If a person is trying to furnish a new home they may have to buy things such as TV, AC and Washing Machine which is expensive one under GST.
WHO AND ALL NEED GST ?
GST registration is compulsory for the people whose turnover is more than twenty lakhs and about ten lakhs for the folks who are earning in the northeastern and hill states. In case if the turnover is a supply of only exempted goods which are excluded under GST this condition does not apply. Each and every person is registered under the following laws such as Excise, VAT, Service Tax etc needs a necessary registration under the GST.
The person who drives the inter-state supply of goods
Casual Taxable Person
Non-Resident Taxable person
Input Service Distributor etc.
WHAT IS THE BENEFIT OF FILING GST?
GST is the most important and one of the biggest monetary reforms in India. All types of businesses including small, large, the medium can be influenced by the tax regime which is an indirect one. It is imposed on both goods and services and it replaces the current indirect taxes like service tax, VAT etc. The major benefit of GST is the cascading tax effect can be removed. In simple words, it means a tax on tax. The service tax which is paid on the several input services cannot be assumed against the output Value Added Tax. Under the certain protocols of GST, the input tax can be accounted across several goods and services.
WHAT IS THE PROCEDURE TO FILE GST ?
The GST Return is a document which contains information about the income in which a taxpayer is essential to file with the tax administrative officials. This is actually used by the tax authorities in order to calculate the tax liability. Under the rules and regulations of GST, the dealer who is a registered one has to file the GST which includes the purchases; sales, Output GST which is on sales one and Input Tax credit which is GST paid on purchase one. In order to file the GST returns, GST compliant sales and the purchase invoices are the most required one. One can generate the compliant invoices for free on the clear tax bill book. There is a question raised among the public that who has to file the GST Returns?
In the present GST administration, any business which is a regular one and nor the irregular one has to file about three monthly returns and one annual return. By calculation, it amounts to about thirty-seven returns in a year. The person has to enter the full details manually of one monthly return which is about GSTR1. There are other two types of returns such as GSTR 2 and 3 which derive the data from the GSTR-1 filed by the specific person and the vendors. The real fact is that there are separate returns which are compulsory to be filed by the special cases like composition dealer. The return forms are listed here such as GSTR-1, GSTR-2, GSTR-3, GSTR-9, and GSTR-3B etc. These forms can be used for the regular business. The schemes such as GSTR-4, GSTR-9A can be used for the composition scheme.
