GST India

Summary of 23rd GST Council Meet : Changes to be made prospectively from 15th November Changes in Composition Scheme Composition scheme limit to be increased to Rs 1.5 crore (can be extended to Rs 2 crore later). 1 % GST rate for manufacturers & traders Composition tax of 1% on turnover of taxable goods (turnover of exempted goods to be excluded) Those supplying goods and services (services not exceeding Rs 5 lakhs in total) eligible for compositions scheme Composition Returns, GSTR-4  due date extended to 24th December Composition dealers cannot make inter-state sales. Input tax benefit not allowed. Relief in GSTR compliance All businesses to file  GSTR-1  and  GSTR-3B  till March 2018. GSTR-2 and GSTR-3  filing dates for July 2017 to March 2018 will be worked out later by a Committee of Officers Turnover under Rs 1.5 Cr to file  quarterly  GSTR-1 Turnover above Rs 1.5 Cr to file  monthly  GSTR-1 All business...

GST Compliance Rating is a numerical rating given to businesses depending on their level of compliance with Goods & Services Tax rules. Refund claims under the GST regime will also be processed on merit basis, i.e on the GST compliance rating of the registered taxpayer. It is expected that certain slab rates will be maintained for various taxpayers falling under various bandwidths of compliance rating and the refunds will be made in terms of percentage amount based on the individual rating of the taxpayer. Higher compliance ratings will make the refunds process easier for businesses.

Cascading tax effect (meaning tax on tax) will no longer exist Input Tax Credit will be easier to avail Returns and compliances will be consolidated Increased efficiency in Logistics Subsumes variety of Indirect Taxes Higher threshold for Registration Composition scheme for smaller businesses Online simpler procedure Regulating the unorganised sector

A business in most cases will be required to furnish 3 returns monthly and 1 annual return. That means any business will require to file 37 returns in a financial year. However there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS)

The Harmonized Commodity Description and Coding System generally referred to as “Harmonized System of Nomenclature” or simply “HSN” is a multipurpose international product nomenclature developed by the World Customs Organization. It comprises about 5,000 commodity groups; each identified by a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification. Without HSN, the system will not be able to pick tax rate for goods declared at the time of registration.

Small businesses and taxpayers having a turnover less than Rs. 75 lakhs can opt for Composition scheme where they will be taxed at a nominal rate of 0.5% or 1% (for manufacturers) CGST and SGST each (rates as per the latest proposed changes in the Goods and Services Tax bills). Composition levy is available to only small businesses dealing in goods. It is not available to interstate sellers, e-commerce traders and operators, and service providers.

Any business in India that supplies goods or services with turnover exceeding Rs. 20 lakh (Rs. 10 lakh for North Eastern and hill states) has to get registered under GST. 1. What is GST Registration & why is it necessary? Every business carrying out a taxable supply of goods or services and whose turnover exceeds the threshold limit of Rs. 20 lakhs (Rs 10 lakhs for North Eastern and hill states) is required to register as a normal taxable person. This process of registration is called GST registration. For certain businesses, registration under GST is mandatory. If the organisation carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply. 2. Who should get registered under GST? Any business whose turnover exceeds the threshold limit of  Rs. 20 lakhs (Rs 10 lakhs for North Eastern and hill states)  will have to register under GST. Businesses register...

Here are a few GST terms and definitions you must know. They are as follows: In this article let us learn some of the GST terms that will be useful for any business, along with throwing insights on GST and its benefits. 1. What is Goods and Services Tax (GST)? GST is a single uniform indirect tax which was introduced to replace Central and State indirect taxes such as VAT, CENVAT, and others. GST applies on all types of businesses, small or large. This makes it one of the greatest tax reforms in the country. The entire nation will follow a unified tax structure. As the name suggests, GST will be applicable on both goods and services and India will follow a dual system of GST to keep both the Centre and State independent of each other. The GST council will be headed by the Union Finance Minister and it will consist of various State Finance Ministers. GST will be devised as a four-tiered tax structure with tax slabs of 5%, 12%, 18%, and 28% for various different categories o...