Goods & Service Tax

Goods and Services Tax

GST (Goods and Services Tax) is the biggest indirect tax reform of India. GST is a single tax on the supply of goods and services. It is a destination based tax. GST will subsume Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc.

GST Regime

GST is one of the biggest indirect tax reforms in the country. GST is expected to bring together state economies and improve overall economic growth of the nation.

GST is a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by states and Central.

There are around 160 countries in the world that have GST in place. GST is a destination based taxed where the tax is collected by the State where goods are consumed. India is going to implement the GST from July 1, 2017 and it has adopted the Dual GST model in which both States and Central levies tax on Goods or Services or both.

SGST – State GST, collected by the State Govt.

CGST – Central GST, collected by the Central Govt.

IGST – Integrated GST, collected by the Central Govt.

Benefits of GST:

Registration Number:

GST Registration Number is 15 Digit identification number which is allotted to each applicant. its a completely based on the Pan Number and State code. First two digit represent the state code and another 10 digit represent the Pan number of the client , one digit represent the entity code( Like proprietorship firm or partnership etc), one digit is blank and last one is represent check digit.

When GST Registration Number is Mandatory or Required ?

1. If you are selling goods and services within state and have expected turnover more than 20 lakh or 10 Lakh rupees in a year. (For Ex - Providing the goods and services in Delhi and between 01.04.2017 to 31.03.2018 your turnover cross more than 20 lakh rupees then its required the GST Number.
   1. 20 Lakh Rupees in a year for across India except the North East State.
   2. 10 Lakh Rupees in a year for North East State.(Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand)
2. If you are selling goods and service outside state & even have turnover less than 20 lakh rupees in a year. ( For ex - providing the goods and service in Mumbai, Indore, Kanpur, Bangalore and have turnover less than 20 lakh in 16-17 but still you have to required the GST Registration due to inter state supply.
3. If you are doing ecommerce business online or any service based business online then its required the GST Registration.
4. If you are deal as trader or manufacturer and your suppliers are registered under the GSTIN already then they charge the GST on your purchase & if you need the input credit or refund then you have to required the GSTIN Number.
5. Ecommerce Aggregators and Operators are required the GSTIN Number from starting.

GST Registration Documents

You have to required to prepare some of the documents as per the legal entity :-

• In case of Sole Proprietorship Firm -
1. Pan Card and Address Proof of the proprietor.
2. Any other firm registration certificate like msme registration, etc.
• In case of Partnership Firm -
1. Pan card of the Firm with the deed
2. Partnership registration certificate &partners id & address proof.
• In case of Private Limited Company or One Person Company -
1. Pan Card of the Company , COI , MOA & AOA of Company.
2. Board Resolution with Directors Id & Address Proof.
• In case of LLP (Limited Liability Partnership) -
1. COI & Pan Card of Company.
2. Deed + Partners Id & Address ProofGST Registration Turnover Limits 2017

Once you register for GST, you must:

• Charge GST at on all your sales, except for exempt supplies
• Give tax invoices to GST-registered persons within 30 days
• Keep GST invoices and receipts when you buy goods or services for your business
• Keep GST invoices to claim a GST credit for a supply
• Keep any other records and paperwork to support the figures in your GST returns
• Calculate your sales and income and your purchases and expenses
• Make additional GST calculations, if applicable, eg for GST adjustments and provisional tax
• Calculate your GST total
• Each assessee have to file the GST Return as per Compliances.

What are the Returns to be filed under GST? What are the due dates of these returns?

Now Let us look at the various returns to be filed under GST and its due dates.

S.No	GSTR Return	For	Due Date	To be filed by
1	GSTR - 1	Sales (Outward Supply)	10th	All
2	GSTR - 2	Purchase (Inward Supply)	15th	All
3	GSTR - 3	Monthly Return	20th	All
4	GSTR - 4	Quarterly Return	18th of subsequent quarter	Compounding Tax Payers
5	GSTR - 5	Periodic Return for NRI	Last day of registration	NRI
6	GSTR - 6	Return for ISD	15th
7	GSTR - 7	Return for TDS	10th
8	GSTR - 8	Annual Return	31st Dec	All

What is the step-by-step procedure to file returns under GST

• Under the GST Regime, every business will have to file 3 returns every month. Unlike the current practice, Returns will have to be filed electronically only.
• You will first have to declare your supplies (sales and service revenues) only and the input for purchases are automatically populated based on your vendor submissions.
• This means, if your vendor fails to declare your sale, you will be denied credit to that transaction. The Government has passed the onus of following up on GST Return filing to the tax payers itself by this.

Here is a step-by-step procedure to file returns:

• 10th of every month, you will declare your sales in GSTR-1.
• Between 11th – 15th, Your purchase (inward supply) will get auto-populated and you are allowed to make corrections in GSTR-2A.
• On 20th, the auto-populated GSTR-3 will be available for filing and payment

How to claim a GST refund?

When you claim a refund you must keep:

• A copy of the GST invoice you issued for the sale the refund relates to
• A separate GST bad debt account slip
• Amount you have written off as bad debt
• Amount of GST you want to claim as a refund for bad debt
• GST period in which you originally accounted for the GST on the sale
• GST period in which you are claiming a refund
• Total amount of GST charged on each sale
• Amount of any payment received for each sale
• Name of your customer
• date and number of the invoice

You must keep the records listed above for six years from the date you make your claim. GST returns and payments must be submitted not later than the last day of the month following the end of the taxable period.

How will refunds be processed?

The GST refunds will be proceeded with the direct credit to your bank account, if you provide your bank details, you can fill out a Direct credit authorization form, which you can find in the “Forms and guides” section.

If a refund applies, they will send you a cheque within 15 working days. Your GST return will have a due date on it, which is the date you need to get the completed GST return to us.