Goods & Services Tax (GST)
Filing of one NIL GST Return (GSTR 3B or GSTR 1)
GST LUT Filing
GST ( Basic )
GST Filing for business with less than Rs.10 lakhs turnover.
GST ( Standard )
GST Filing for business with Rs.10 lakh – Rs.50 lakh turnover.
GST ( Premium )
1 Year Accounting & GST Filing for business with Rs.50 lakh – Rs.100 lakh turnover.
Goods & Services Tax (GST)
WHAT IS GST?
GST means a tax on goods and services tax that customers have to bear when they buy any goods or services, such as food, clothes, items of daily needs, transportation, etc.
GST is a comprehensive tiered tax system and is subject to tax on the provision of goods and services. GST is the indirect tax levied at every company. The main purpose of this tax system is to limit the cascading effect of other indirect taxes. Companies with sales of Rs. 20 lakhs or trading internationally are required to obtain GST registration. The GSTIN takes about 2-6 working days to confirm GSTIN registration, but a temporary number is generated immediately.
Goods and Service Tax is the indirect tax levied on the supply of goods and services. GST is the single, levied indirect Tax in the whole of India.
Under GST, the Tax is levied at every point of sale. GST has two components, 1. Central GST and 2. State GST, commonly known as CGST and SGST. when the sale is made within the state when the sale of goods and services is Interstate only one component is levied, which is known as IGST.
KEY POINTS :
- Required by law: For certain taxpayers, GST registration is mandatory depending on the type of transaction or sale.
- Sales-based registration: Registration becomes mandatory based on a certain threshold or turnover of Rs 10 lakh, 20 lakh, or 40 lakh.
- Take advantage of the tax credit: When registering, incoming credit from GST must be used to purchase goods or services for the company.
- To create interstate supplies: Shipping of goods from and between different countries is not permitted without the GST registration number on the invoice
- Other taxpayer categories: This is mandatory for occasional taxpayers regardless of turnover, in case of RCM, non-resident, ISD, etc.
Who needs GST Registration ?
Compulsory GST registration
- Businesses engaged in the supply of goods and whose turnover in the financial year exceeds Rs. 40 Lakh, is required to obtain GST registration (Rs. 20 Lakh, in case of Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand)
- Businesses engaged in the supply of services and whose turnover in the financial year exceeds Rs. 20 Lakh, is required to obtain GST registration (Rs. 10 Lakh, in case of Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand)
- A casual taxable person engaged in taxable supply.
- A non-resident engaged in any business supplies
- Any person liable to deduct TDS
- Input Service Distributor
- E-commerce operator
- Any person engaged in supplying goods or services or both through e-commerce operator who is required to collect tax at source (TCS);
- Pure agent of goods or services or both on behalf of a registered person.
DOCUMENTS REQUIRED FOR REGISTRATION
DOCUMENTS FOR GST REGISTRATION OF COMPANY
- 1. Registration certificate issued by commercial registries
- 2. The decision on the board
- 3. Company bank details and board of directors KYC as well as digital signature required.
- 4. List of documents and formats
DOCUMENTS FOR GST REGISTRATION OF LLP / PARTNERSHIP
- 1. Company registration
- 2. Certificate company contract
- 3. Proof of company address and bank details and KYC documents of all mentioned LLP partners or all company partners as well as a digital signature.
- 4. List of documents and formats
DOCUMENTS FOR GST REGISTRATION OF PROPRIETORSHIP / INDIVIDUAL
- 1. Getting GST registration is easier.
- 2. You don’t need to get a digital signature
- 3. Registration can be done on the basis of Aadhar OTP.
- 4. Basic KYC documents are required
PROCESS FOR GST REGISTRATION
- The documents required are dependent on the type of applicant. The first step is to set up the required documents for GST registration.
Application on GSTIN
- Applicants are registered on the GST portal to submit applications. For this purpose, OTP is sent by phone and email
- The ARN is created after an application with all the necessary information and documents has been sent to the GST portal
- After the ARN is generated, a GST registration certificate is issued by GSTIN and a GST number is distributed in approximately one week.
Basically, an invoice is a document issued to the recipient showing the type of taxable supply and the value of the taxable supply and shows the number of claims against the person who issued the invoice, against the person who received the bill.
Invoice must be issued by the Bank / NBFC on or before the date of transfer/delivery of goods in case of continuous delivery or before the issue of payment or declaration in the case of provision of services within 30 days after such delivery for provision of services by the Bank / NBFC within 45 days of this application.
Various types of invoices or receipts based on GST
- Sales invoice
- Purchase invoice
- Bill of supply
- Notes of Credit
- Notes of debit
- Payment in advance
- Voucher returns
- Challan delivery
Goods delivery invoice: triplicate
- Original for the receiver
- Duplicate for the Transporter
- Three copies for the supplier
Invoice for service provision: duplicate
- Original for the receiver
- Duplicates for the supplier
GST Returns are basically documents that contain information about income that taxpayers must show to the competent authority. This information is used to calculate the taxpayer’s tax liability. As part of taxes on goods and services, registered merchants are required to file their GST returns detailing their purchases, sales, tax credit, and outbound GST. Companies are expected to provide 2-month returns as well as one-time annual returns.
Monthly GST return:
It is a return for the detailed reporting of all external shipments of goods and services, or in other words for sales transactions made during the tax period, as well as the reporting of debits and credits issued. All changes to sales invoices made, including those relating to previous tax periods, must be reported in the GSTR-1 declaration.
The GSTR-1 must be submitted by all regular taxpayers who are registered under the GST. It has to be submitted monthly, with the exception of small taxpayers with a turnover of up to 1.5 billion rupees in the previous fiscal year, who could submit the same quarterly.
Quarterly GST return:
The Central Council for Indirect Tax and Customs (CBIC) has put in place a system of quarterly tax returns on goods and services (QRMP) to assist small taxpayers with less than Rs. 5 crores. The QRMP system allows taxpayers to apply for the GSTR-3B every three months and pay taxes monthly.
Annual GST return:
The GSTR 9 is considered an annual tax return filed annually by taxpayers registered under the GST.
It consists of information on external and internal shipments made/received under different tax chapters during each fiscal year, namely H.
This is a consolidation of all monthly / quarterly declarations (GSTR-1, GSTR-2A, GSTR-3B) submitted this year. While these rates of return are complex, it’s a good idea to reconcile large portions of data for 100% transparency.
- Enter the GST portal and click Temporarily Cancel Registration.
- The cancellation page will open.
- Your GSTIN and company name will be displayed automatically.
- You must provide a reason for cancellation.
- You will be asked if you have been billed for taxes during the month.
- Just enter the details of the official signer. Lastly, sign with EVC if you are an owner or partner. LLPs and companies must sign with DSC.
A GST audit includes a review of records, declarations, and other documents kept by persons registered with the GST. It also ensures that when the Registered Taxpayer’s annual turnover is more than Rs. 2 crore for one financial year he is required to have his account audited annually by an auditor or CA.
The financial year consists of 12 month periods, starting in April of the calendar year and March of the following calendar year. The accuracy of sales reported, taxes paid, right of refund, disposable income taxes, and assessments of other similar provisions under the GST Act must be verified by a competent person.
The final GSTR-9C can be certified by the same certification body that performs the GST audit or another certification body that does not perform the GST audit for the GSTN.
GST audit report submission and annual declaration:
- Have all necessary accounts or records kept?
- Whether the financial statements have been prepared in accordance with the books kept at the taxpayer’s primary place of business or the taxpayer’s secondary place of business.
- Confirm that the information on the GSTR-9C is correct.
- List of audit observations or reservations or comments, if any.
Calculating the amount due as GST when sending returns can be quite a tedious job. A number of issues and factors need to be considered, like ITC, Tax Free Shipping, Chargeback, etc. If you fail to pay the full amount into GST, you may find that you accrue 18% interest on the deficit which requires you to pay the exact amount into GST. The GST calculator makes it easy for taxpayers to calculate the amount due as GST. You have to enter all the required data. The month for which you calculate the GST, the due date for submitting the refund for the month concerned, the date of actual receipt, the tax liability for that month, purchases made on a chargeback mechanism and the opening balance of your money book and credit book and eligible ITC .
E-Way Bill of GST
In the past before the GST, obtaining a waybill was a nightmare, and a waybill was a document required to move goods from one location to another. Under the GST regime, waybills are known as electronic waybills, which must be issued by the person causing the movement of goods. An email account is mandatory if the value of the items sent is equal to or greater than Rs. 50,000 / – can be generated electronically via the shared GST network portal (GSTN). Electronic invoices can also be generated or canceled via SMS.
People who can create GSTN accounts
An e-way invoice must be generated before Rs 50,000 worth of goods can be transferred. The responsibility for making e-way invoices rests with the person responsible for the movement of goods, or in other words causing the movement of goods. Electronic waybills can be created by the supplier, carrier, or, if the transfer is caused by the receiver, in this case by the recipient. In the case of a shipment from an unregistered person, the recipient of the shipment will issue an email invoice as if he were the supplier.
- Do all dealers have to register under the GST?
All merchants with a turnover of more than 20 Lakh rupees in one fiscal year must register under the goods and services tax.
- Do small traders have a separate tax payment system?
Yes, small traders can get the most out of the composition fee if their sales are less than Rs. 75 lakh. For some special conditions, this limit is Rs.50 lakh.
- What are the countries with a sales limit of Rs.50 lakh for the composition fee?
Arunachal Pradesh, Tripura, Manipur, Nagaland, Meghalaya, Assam, Himachal Pradesh, Sikkim, and Mizoram.
- What is the tax rate for the composition?
The applicable tax rate under the composition tax is 1% of domestically generated sales, with 0.5% attributable to the central tax on goods and services and 0.5% to the state tax on goods and services.
- Who is not eligible for the composition scheme?
- A restaurant that offers services other than a restaurant.
- Those who outsource products between countries.
- Those involved in shipping unbilled products to GST.
- Suppliers who ship products via e-commerce operators and are entitled to collect taxes at the source.