GST
Goods & Service tax is the biggest tax and economic reforms of modern India, implemented on 1st July 2017. In parliament in his speech on GST launch Hon’ble Prime Minister said “In the process of nation building, we often arrive at a moment which leads us to a path breaking juncture and opens up a plethora of opportunities imploring us to aspire for new dreams. At the stroke of the midnight hour today, together we shall ensure a pioneering future of the nation.” GST is applicable on all Businessman or Service provider if turnover crosses exemption limit of 40/20/10 lakhs.
Services we Provide in GST:
GST Registration
Registration under GST is mandatory on the basis of various factors:
1. Turnover:
GST registration is mandatory if perosn provides service and having turnover over Rs 20 Lakh, where as the limit is Rs 40 Lakh in case of supply of goods. (except special category states where the said limit is 10 Lakh only.
2. Inter state Supplies:
GST registration is complusory if the entity is engaged in inetr state supplies, irrespective of any turnover.
3. Casual Tax Payer:
GST registration is also complusory irrespective of turnover, if the entity is engaged in casual business, i.e. temporary shop, stall etc.
4. E Commerce Supplier:
every E commerce Supplier, irrespective of its turnover has to complusory get registered with GST.
5. Voluntary Registration.
GST Invoice Solution.
Under GST regime, section 31 of CGST Act. 2017 referred to Tax Invoice. This section mandates issuance of invoice or a bill of supply for every supply of goods or services. It is not necessary that only a person supplying goods or services need to issue invoice. The GST law mandates that any registered person buying goods or services from an unregistered person needs to issue a payment voucher as well as a tax invoice.
For example, if a registered person is making or receiving supplies (from unregistered persons), then a tax invoice needs to be issued by such registered person. However, if a registered person is dealing only in exempted supplies or is availing of composition scheme (composition dealer), then such a registered person needs to issue a bill of supply in lieu of invoice. The invoice should contain description, quantity and value & such other prescribed particulars (in case of supply of goods) and the description and value & such other prescribed particulars (in case of supply of services). An invoice or a bill of supply need not be issued if the value of the supply is less than Rs. 200/- subject to specified conditions. GST Invice is necessary document for availing ITC also.
GST Calculation
Once you registered with GST, now you have to spend a handsome time on calculation of GST liability on month by month basis. You have to understand various Input Tax Credit under CGST, SGST & IGST. Need to understand the GST tax liabilty on Reverse Charge mechanism, has to work on GSTR-2 vis a vis your books of accounts, has to calculate Interest on any overdue liabilty and various other formalities.
GST Returns.
All registered enterprises has to submit monthly/ Quarterly/ Annualy GST returns based on the type of Busienss. A GST retrun is a document containing detail of income which a taxpayer is required to file with tax authorities. Under GST, a registered perosn has to work on sale, purchase, Output GSt & Input GST along with Interest and Penalities to file GST Returns. Nil GST return is also complusory. Even a businessman having NIL turnover has to file 1 return on monthly basis and 1 return on quarterly basis, totaling 16 returns in total. the count can increase to 26 returns per year as your busines grow, except some non regular returns too.
GST LUT
Under the new GST regime, all exports are subject to IGST, which can later be reclaimed via a refund against the tax paid. To resolve the difficulities faced by tax payers, Government give an alternate way say LUT. Letter of undertaking is an undertaking by such supplier, who export goods or services outside India or to SEZ and wish to supply such goods or services without payment of integrated tax.
Input Tax Credit consultancy
Input Tax Credit or ITC is the tax that a business pays on a purchase (INPUT) and that it can use to reduce its tax liability when it makes a sale (OUTPUT). It is not as simple as its simple definition. To calculate corrcet INPUT GST the accountant must know all the rules & Regulation as mentioned in GST Act & its Rules. There are lot of conditions need to satisfy before claiming INPUT tax Credit, including reversal of Input tax credit and non eligibility on certain supplies.
GST Refund Mechanism
When the GST paid is more than the GST liability a situation of claiming GST refund arises. Under GST the process of claiming a refund is standardized to avoid confusion. The process is online and time limits have also been set for the same. GST refund can be applied not in all cases, only some cases specifically prescribed where GST refund can be claimed. e.g. Export Dealer etc.
GST Annual Filing
GST annual returns (GSTR 9 & 9C) apply to every registered business having turnover more than Rs 2 Crores/5 Crores. Due to various complications and legal obligations, it is always advisable to take the help of professionals to file annual return (Form 9) and reconciliation statement (form 9C).
GST litigation/ dealing with GST officers
GST litigation is next regime to grow in a big way due to unsettled law, different views of advance ruling, ambiguity in various provisions of Act. The dealing with GST authorities either on any litigation or on day to day clarification must be handled carefully with advice of Professional expert only.