Goods and Service Tax (GST) is an indirect tax (or consumption tax) levied in India on the sale of goods and services. GST is levied at every step in the production process, but is refunded to all parties in the chain of production other than the final consumer.

Goods and services are divided into five tax slabs for the collection of tax -

• 0%,
• 5%,
• 12%,
• 18% and
• 28%. 

Petroleum products, alcoholic drinks, electricity, and real estate are taxed separately by the individual state governments. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition, a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products.

Before GST, the statutory tax rate for most goods was about 26.5%, after GST, most of the goods have come under the range of 18% tax.

The tax came into effect from July 1, 2017, through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian government. The tax replaced existing multiple cascading taxes levied by the central and state governments.

GST REGISTRATION

Liability of GST Registration under GST Act.

A person would be liable to pay taxes, if he is registered or liable to be registered under GST. A person would be liable to be registered in GST:

1.         a)If he is mandatorily required to be registered under GST
2.         b)If he is making a taxable supply of goods or services or both and his aggregate turnover under same PAN in the entire country exceeds the threshold limit as provided in GST. Threshold limit in GST is Rs.10 Lakh/ 20 Lakh (for persons in Specified States/ Non Specified States) for person having only within State supplies and there would be no threshold limit for persons having Inter-State Supplies.

The concept of liability of a person liable to pay tax in GST revolves around registered person or person liable to be registered under the law.

Time Limit for GST registration

A person would have to register himself within 30 days from the day when he becomes liable to be registered. He can also register himself voluntarily under GST.

GST RETURN

GST return is a document containing details of income which a taxpayer is mandatorily required to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability.

Under GST, a registered dealer has to file GST returns that includes:

• Purchases
• Sales
• Output GST (On sales)
• Input tax credit (GST paid on purchases)

Any non-compliance towards the same is lead to attract penalties and interest etc. and disallowance of input tax credit. Proper filing of information and passing the same in the return is a mandatory process for smooth flow of credit to the last recipient.

Invoicing

Please keep in mind the following things while issuing the invoice under GST:-

• Invoice number and date
• Customer name
• Shipping and billing address
• Customer and taxpayer’s GSTIN (if registered)**
• Place of supply
• HSN code/ SAC code
• Item details i.e. description, quantity (number), unit (meter, kg etc.), total value
• Taxable value and discounts
• Rate and amount of taxes i.e. CGST/ SGST/ IGST
• Whether GST is payable on reverse charge basis
• Signature of the supplier

**If the recipient is not registered AND the value is more than Rs. 50,000 then the invoice should carry:

• name and address of the recipient,
• Address of delivery,
• State name and state code

E-way Bill

E-way bill operations are compulsory for intra-state movement of goods for Delhi from 16th June 2018

Now, E-way bill operations are compulsory for intra-state movement of goods for all states

E-way bill operations are compulsory for inter-state movement of goods for all states

Source: GST Department

The government, while proposing the idea of introducing E-way bill under GST, had the intention of creating an effective tool for tracking movement of goods and ensure various benefits to the industry.

The steps included:

I. Abolition of check-posts
II. Seamless movement of goods within a state and across different state borders
III. Boost to India’s logistics ecosystem resulting in lesser traffic on major transportation routes

IV. Reduction in transportation cost and lead time by replacing physical check post with mobile squads.

E-Way Bill is an electronic way bill for movement of goods which can be generated on the E-Way Bill Portal.

Transport of goods of more than Rs. 50,000 (Single Invoice/bill/delivery challan) in value in a vehicle cannot be made by a registered person without an E-way bill.

When an E-way bill is generated a unique E-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

GST Payment

Types of heads under which payment has to be made by Tax payer:

Under GST the tax to be paid is mainly divided into 3:-

• IGST – To be paid when interstate supply is made (paid to center)
• CGST – To be paid when making supply within the state (paid to center)
• SGST – To be paid when making supply within the state (paid to state)

All the payment shall be paid according to the GST rules given under GST Act, 2017.

Computation of GST liability:

A. Regular Dealer:

A regular dealer is liable to pay GST on the outward supplies made and can also claim Input Tax Credit (ITC) on the purchases made by him.

The GST payable by a regular dealer is the difference between the outward tax liability and the ITC.

B. Composition Dealer

The GST payment for a composition dealer is comparatively simpler. A dealer who has opted for composition scheme has to pay a fixed percentage of GST on the total outward supplies made.

GST is to be paid based on the type of business of a composition dealer.

Modes of payment

GST payment can be made by following given ways:

A. Through E-Credit Ledger: Any claim ITC should be available in Electronic Credit Ledger under the GST common portal. The credit of ITC can be taken by dealers for GST payment. Further, the credit can be taken only for payment of Tax. Interest, penalty and late fees cannot be paid by utilizing ITC.

B. Through E-Cash Ledger: GST payment can be made online or offline. The challan has to be generated on GST Portal for both online and offline GST payment.

Where tax liability is more than Rs 10,000, it is mandatory to pay taxes Online.

Team RASHA has equipped for implementation of GST (Goods and Services Tax)  in the organization and Industry. It is utmost important from the beginning, that all transactions should be verified from GST prospective and GST implication should be assessed and complied in correct manner. Our team will implement the GST in following manner:

• To identify the GST scope as per Industry concern
• Analyze each and every transaction of the company from GST perspective.
• Identification of Taxable transaction, Exempt transaction etc.
• Identification of specific benefits provided to the particular industry or business location.
• Identification of Input GST Credit available to the company and best method of its utilization.
• Classification of the Product for CGST and SGST.
• Implementation of E-bill system
• Advisory on the various issue over GST Matters and legal opinion on technical subjects of GST