Goods and Services Tax (GST)
GOODS & SERVICES TAX (GST) – SALIENT FEATURES
The Govt. of India by way of enactment of New Tax i.e. Goods & Services Tax Act known as GST has sub-merged various Central and State Levy into GST – such as Excise Duty, Service Tax, Central Sales Tax, Additional Custom Duty, Special Additional Duty, VAT, Entry Tax, Purchase Tax, Luxury Tax, Entertainment Tax, Octroi, Taxes on lottery, Batting, and gambling apart from CESS and Surcharge. It is single tax regime for whole economy which will convert the whole nation into one market place.
Every registrants or dealers ( including Exporters and Importers) shall be given a PAN based GSTIN number which shall be a common to the both the State GST and Central GST.
The State GST (SGST) and Central GST (CGST) shall be levied on all the transactions of goods and services, concurrently. Due credit against GST is available to an entity In respect of taxes paid on any supply of goods or services or both used or intended to be used in the course business. It is destination based tax on consumption of Goods and Services. Hence the credit of SGST shall be transferred to the Destination State in the form of Integrated GST (IGST). IGST will be imposed on all Inter-State Transactions.
There shall be a taxable limit presently, Rs. 10 Lakhs in North Eastern States & J &K, and Rs. 20 Lakhs in rest of the county.
The GST Laws provides a composition scheme for small dealers having, turnover of . Rs. 1Cr. and Rs. 75 Lacs for North Eastern states.
It is expected that the GST Laws or new indirect tax regime, brings benefits to all the stakeholders viz. industry, government and the citizens. Further, lower the cost of goods and services, boost the economy and make our products and services globally competitive.
It is expected the GST Laws will bring down the prices of goods and services once implemented. To ensure the pass of such benefits to end users or the customers, the government has put anti-profiteering measures.
Application for Service Tax Registration is filed online followed by physical submission of documents in the department.
The GST Council
The Council is a quasi – judicial body of States and the Centre, represented by the State Finance Ministers or Taxation Ministers and the Finance Minister of India. The key role of this Council is to make recommendations on various provisions of GST Laws to the State and the Centre.
- Present time line for deposit of GST for all tax payers is 20th of succeeding month. Late deposit of tax will attract penal interest @ 18% p.a.
- All the tax payers are required to deposit GST returns depending upon their category of tax payer, turnover quantum, residential status, etc. Different time lines has been prescribed for filing the same. However, late deposit fee of GST return is Rs. 50/- per day and for filing Nil return is Rs. 20/- per day.
REFUND OF IGST PAID ON EXPORT OF GOODS BY THE EXPORTERS
To ensure that the GST System transmits invoice data, for refund of IGST paid on exports of good, the exporters are advised to provide Complete and Correct Data as per the points given below:
- File GSTR 1 for the corresponding tax period, and ensure that:
i) Invoice data for export of goods is provided in Table 6A of FORM GSTR 1 for the relevant tax period
ii) Invoice numbers provided in Table-6A of FORM GSTR 1 are same as that of the invoice details given in Shipping Bill.
iii) Select WPAY (with payment of tax) from drop down given in Table 6A as “invoice type”.
iv) Shipping bill number, shipping bill date and port code (originating port) etc. are to be specified mandatorily and correctly, in case of export of goods.
v) Port code is alphanumeric six character code as prescribed by ICEGATE. Port codes are available at ICEGATE under https://www.icegate.gov.in/SMTPList.html
2. While filing GSTR 3B Return for the said tax period, please ensure that:
i. IGST amount to be paid on export of goods/services outside India or to SEZ etc. are filed under Table 3.1 (b) and not under Table 3.1(a) or 3.1(c) of GSTR 3B,
ii. IGST amount filed in Table 3.1(b) of GSTR 3B is either equal to, or greater than the total IGST shown to have been paid under Table 6A, and Table 6B of GSTR 1