Blog – Goods & Services Tax.
The major reform for India after the libralisation of economy in 1991 , “THE GST BILL” has been passed by Government of India and would be rolled out by 1st April 2017 , The documents provides basic and important highlights about the new GST bill prapossed and passed by Government of India.
GST stands for Goods & Services Tax.
GST will replaces the following taxes charges currently on various products & Services.
There are three types of GST as follows :-
CGST – Central Goods & Services Tax
Central Tax to be levied on intra state Transaction to be charged in each invoice
SGST – State Goods & Services Tax
State Tax to be levied on intra state Transaction to be charged in each invoice
IGST – Integrated Goods & Services Tax
Integrated tax to be levied on the Interstate transaction, to be charged on the invoices raised for sale to another state.
So every invoice will have either CGST & SGST or IGST.
The Government has not yet finalised the rates but the rate of GST is expected to range in different slabs with the standard rate to be 18-20% for goods and 16-18% for Services.
The Tax rate of IGST will be addition of CGST+SGST
A person is required to registered under CGST/SGST only if its turnover exceeds 9 Lacs & 4 Lacs for the North East states.
A person is required to pay GST if its turnover exceeds 10 Lacs & 5 Lacs for the North East states.
Registration will be linked to the PAN Number, All the existing registration holders under the current tax regime will be allotted the GST number and New Registration shall be applied in a one page comprehensive form with the required documents.
The liability of GST (CGST/SGST/IGST) arises at the “time of Supply” of Good.
The Time of supply of goods under GST shall be the earliest of the following :-
The Time of supply of goods under GST for non movable goods shall be the date on which the goods are made available to the recipient.
The value of supply of goods shall include the following
The Registered tax payer whose aggregate turnover in any financial year does not exceed Fifty Lac Ruppes may opt for composition scheme to pay taxes at fixed rates, without taking credit of any input.
No such permission will be granted if the tax payer effects Interstate sale.
Post registration , every tax payer has to file regular returns under GST. The return filling forms for a regular tax payer would be as follows as proposed:-
|GSTR 1||Outward Supplied Return||10th of Next Month|
|GSTR 2||Inward Supplies return||15th of Next Month|
|GSTR 3||Monthly Return||20th of Next Month|
Tax payer opting for Composition scheme will have a fixed rate of tax and no input claims allowed, hence he return filling forms for such tax payer would be a single form as follows:-
|GSTR 3||Quarterly Return under fixed rate||18th of Next Month|
CGST & SGST cannot be cross utilised for Input credit i.e Input CGST can be used only for Output CGST similarly Input SGST can be used only for Output SGST
CGST & SGST can be cross utilised for the IGST , i.e an Input CGST/SGST can be utilised to pay Output IGST and similarly Input IGST can be utilised to pay output CGST/SGST.