What is gst
Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.
Goods and services are divided into five different tax slabs for collection of tax - 0%, 5%, 12%, 18% and 28%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system.
GST is unique identification number given to a person or firm based on his/her or its pancard number. It given Authority to a person to collect tax behalf of government and pay to the government.The Registered person who collects tax is liable to pay, behalf of the supply of goods or services.
The regular scheme registered person can claim his/her/its tax paid for the supply of good or service as input tax .the regular scheme where the receipent can get back his paid tax .
The taxpayers registered under regular scheme must file returns monthly returns of GSTR 3B and GSTR 1 and annual return GSTR-9 need to be filed every year if the turnover is less than 2 crores if the turnover exceeds to 2 crores he has to file GSTR-9C which is a reconciliation statement must be certified by a Chartered Accountant or a CMA .
Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.5 crore
The taxpayers registered under cpmposition scheme must file returns quaterly returns of GSTR 4A and annual return GSTR-9A need to be filed every year if the turnover is less than 2 crores if the turnover exceeds to 2 crores he has to file GSTR-9C which is a reconciliation statement must be certified by a Chartered Accountant or a CMA .
who is liable to register gst
GST being a tax on the event of “supply”, every supplier needs to get registered. However, small businesses having all India aggregate turnover below Rupees40 Lakh (in case of exclusive supply of goods) (Rupees 20 lakh if business is in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand) and Rupees 20 lakhs (in case of supply of services or in case of mixed supplies) (Rupees 10 lakh if business is in States of Manipur, Mizoram, Nagaland and Tripura) need not register.The small businesses, having turnover below the threshold limit can, however, voluntarily opt to register.
The aggregate turnover includes supplies made by him on behalf of his principals, but excludes the value of job-worked goods if he is a job worker. But persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax or an agriculturist, to the extent of supply of produce out of cultivation of land are not liable to register under GST.
Also, if all the supplies being made by a supplier are taxable under reverse charge i.e. where total tax is payable by the recipient of the goods and / or services, there is no requirement for such a supplier to register in light of notification No. 5/2017-Central Tax dated 19.06.2017.In GST, if the supplier supplies outside the State, he is required to take registration irrespective of the size of his turnover. However, this compulsion is relaxed for certain categories of suppliers like supplier of handicraft goods, supplier of services, supplier of job work services. If the turnover of the handicraft
who is casual taxable person
Casual taxable persons’ can make taxable supplies only after obtaining the registration and they have to deposit in advance the estimated tax liability at the time of applying for the registration. They are given registration with 90 days’ validity, which can be extended on need based basis for another 90 days
A non-resident taxable person is one who is a foreigner and occasionally wants to effect taxable supplies from any State in India, and for that he needs GST registration. GST law prescribes special procedure for registration, as also for extension of the operation period of such casual or non-resident taxable persons. They have to apply for registration at least five days in advance before making any supply. Also, registration is granted to them or period of operation is extended only after they make advance deposit of the estimated tax liability.
who provide platform to the suppliers to make supply through it. Suppliers of goods who supply through such e-commerce operator who are liable to collect tax at source to the extent of 2% [1% CGST + 1% SGST/ UTGST or 2% IGST] while making payment to the respective supplier.
OIDAR service providers
cheme is provided for OIDAR service suppliers. Instead of State-wise registration, he will take single registration for entire India either himself or through his appointed agent in India, and will pay IGST. The registration to and other GST compliance by the OIDAR service providers is exclusively administered by the Principal Commissioner of Central Tax, Bengaluru West and all officers subordinate to him.
benefit of gst registration
* He is legally recognized as supplier of goods or services
* He is legally authorized to collect tax from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/ recipients ,if he is regular tax payer.
* He can claim input tax credit of taxes paid on his purchases / procurements and can utilize the same for payment of taxes due on supply of goods or services
* Seamless flow of Input tax credit from suppliers to recipients at the national level. *
what is E-waybill & why E-wayBill is required
Gst rule states one need to generate Ewaybill to transport goods from one place to another place. The genarated gst bill automatiaclly calculates the distance of the place when the receiver GST number is entered in the EWAYBILL portal or it should be manually entered for unregistered person
Who has to generate Ewaybill
Any person who need to transport goods from one palce to another palce all have to generate Ewaybill irrespective of whether he is register person or unregistered person or transporter.
Blocking & Unblocking of Ewaybill
If a regsitered is person is not filed is returns continously for 2month then the Ewaybill will br blocked to such person , he need tyo go Ewaybill portyal and unblock the service by go to services menu and unblock the service after filing the returns.
Validity of Ewaybill
Ewaybill is valid for one day if the cargo is normal cargo , every 100km extra ewaybill be extended by one day. For oversized Cargo Ewaybill is valid for one day if the distance is 20KM and every extra 20KM each day will be extended.