GST-The largest tax reform of India, replacing all indirect taxes like VAT, Service tax, Central Excise, Octroi, Entertainment Tax, Entry Tax etc into one single large tax called GST – Goods & Service Tax, thus paving for long awaited One Nation One Tax.
In this journey of five years, it has gone through various reforms, software changes, filing changes, rectifying the challenges faced by the industry. Despite the COVID threat and being almost hated by all stakeholders, it has withstood the test of time, standing resolute and determined and moving ahead. The greatest single reason why GST is that there is no double taxation now. Taxes are passed at each stage as an input and finally moves on to the end user.
GST is mandatory for turnover exceeding 20 lakhs. However, voluntary registration for turnover below 20 lakhs is encouraged. The voluntary registration helps to be more competitive in business.
GST-The largest tax reform of India, replacing all indirect taxes like VAT, Service tax, Central Excise, Octroi, Entertainment Tax, Entry Tax etc into one single large tax called GST – Goods & Service Tax, thus paving for long awaited One Nation One Tax.
In this journey of five years, it has gone through various reforms, software changes, filing changes, rectifying the challenges faced by the industry. Despite the COVID threat and being almost hated by all stakeholders, it has withstood the test of time, standing resolute and determined and moving ahead. The greatest single reason why GST is that there is no double taxation now. Taxes are passed at each stage as an input and finally moves on to the end user.
GST is mandatory for turnover exceeding 20 lakhs. However, voluntary registration for turnover below 20 lakhs is encouraged. The voluntary registration helps to be more competitive in business.
The Key Features of GST:
- GSTR1 should be filed on due dates.
- GSTR3B should not be delayed by more than a month for filing. It is preferred to file on due dates.
- There is no real difference GSTR 1 & GSTR 3B.
- GSTR 3B in excess of GSTR 1 can be explained but not vice versa
- B2B in particular needs to have business entity detail of output and input for passing of credit.
- B2C requirement is total summary of sales sold to non-GST buyers. Also books of accounts need to tally.
- Composition dealer transactions, dealer cannot have the benefit of input credit on purchases.
- Works contract are to be part of registration.
- Understand input credit restrictions, pro rata working.
- Understand ineligible credit & reversing.
- Understand difference between exempted & export sales.
- LUT is mandatory for exporters, only then eligible for refund.
- Understand what is meant by inverted duty structure.
- SEZ Supply procedures to be followed by those who are supplying to SEZ.
- GST Refund eligibility & procedure.
- RCM mechanism.
- TCS adjustment.
- In addition to this, one should know GSTR 2B reconciliation of purchases with books of accounts.