Highlights of the GST



1) HSN code is not linked with tax Rate till every body understands HSN code.

And for turn over below 1.5 Cr, no need to mention HSN code in invoice.

From 1.5 Cr. – 5 Cr turnover,
only mention 2 digit HSN code

and above 5 Cr mention only 4 Digits of HSN code.

2) For the Invoice, there is no hard and fast format or colour specified.

You can design your own invoice.

Only certain details are mandatory to be mentioned on the Invoice.

3) If your supplier is registered under composite scheme ( turnover below 75 lacs ) he cannot take credit of GST
nor can his customer avail of GST credit.

He has to pay only 1% of his turn over as GST if he is a trader
and manufacturer and 2% if he is a manufacturer.

And 5% if he runs a restaurant.

4) If your GST input is more than GST output (ie for E rickshaw industries most of items input GST credit is 28% and output GST is 12%)
in that case after every month's return is filed, the person can apply for refund (RDF1) which will be given within 60 days, otherwise govt is liable to pay interest on it.

Refund application can be made upto 2 years.

So no worries about Capital blocked.

5) There are Antiprofiting Rules also. -

Every one can take modvat credits of Excise , Services Tax, VAT, Octroi, Entry tax on their stock items and pass it on to their customers.

For example
If you were buying iron pipe at 62 Rs. Kg plus 5% VAT ( which included 12.5% excise , 2% CST and 3.5% Octroi.)
after 1st july the supplier can take credit of all the tax

He has to reduce its basic price accordingly.

He cannot charge 62 + 18% GST

he has to reduce its price by tax amount and fix the new base price.

If any supplier does not follow this, you can complain against him and govt will penalize such suppliers.

6) No need of E way bill till next 3 months.

7) If you do not receive payments in 60 days from customers
then you can claim for GST amount charged on it.

so most people's worries removed that if customers fail to pay then they lose their Tax amount also.

However if the customer pays after six months, then you have to pay GST which you have taken back as credit.

8) All people are worried that there are 37 Returns in year.
And there is no provision to revise the return.

But its not 100% truth.

Every month you have to file your output ( sales or services). You can add your invoice on day to day basis to GST portal and save it.

You can also edit that invoice.

On or before 10th you just have to upload all edited sales invoices.

Since you have edited the invoices before uploading, no need of revised return.

Till 15th you can check all your purchases and verify (no need to file return, its only verification)

on 20th you just need to update your final return after corrections if any.

And if there is any mistake, you can rectify that mistake in next months' return.
So it becomes more simple then before.

Thus GST is very easy and it removes all headaches of C forms, dealing with different departments like Excise, Sale Tax , Octroi , Entry Tax and many others.Pls share it with many of your business friends , so no fear about GST.
By: via Everything CA

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