Structured Biiz

Goods And Service Tax – GST

Goods and Service Tax (‘GST’)

Prior to the implementation of the GST, the indirect tax structure was governed as under:

Taxable Event

Governing Law

Levy By

Sale of Goods

Value Added Tax (‘VAT’) laws of respective state

Respective state

Provision of Services

Service Tax – Part of Finance Act

Central Government

Manufacture of goods

Central Excise Duty

Central Government

Considering that the levy was different for different taxable event by the different Government, the Government of India, in order to achieve an objective of  ‘One Nation, One Tax’ implemented the Goods and Service Tax (‘GST’) with effect from 1 July 2017.

 

The taxable event under the GST law is the ‘supply’ of goods or services.

Taxes subsumed

Following taxes have been subsumed (i.e. included in the GST rate) on account of the implementation of GST:

  • Central Excise Duty;
  • Service Tax;
  • VAT;
  • Octroi, etc.

Goods kept outside the GST ambit

  • Alcohol for human consumption (i.e., not for commercial use);
  • Petrol and petroleum products (GST will apply at a later date), i.e., petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel.

Registration

  • If a person is engaged in the exclusive supply of goods, he shall be liable for registration under GST if the total turnover exceeds INR 40,00,000 (INR 20,00,000 in case of special category states*) during the Financial Year.
  • If a person is a provider of service, he shall be liable for registration if the gross receipts from provision of service exceeds INR 20,00,000 (INR 10,00,000 in case of special category states*) during the Financial Year.

* Special category states includes the state of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

GST laws require the taxpayers to perform robust compliances. A high-level compliance calendar summarizing the compliances required to be performed by a taxpayer all through the year has been attached as a part of the cover email.

Certain Important GST Returns

GSTR-3B

Return of liability to be filed – Monthly

Monthly Return – Every person registered under GST shall be responsible for filing a Monthly return by 20th of the following month. For e.g., the due date for filing the return of August shall be 20 September.

GSTR-1

Details of outward sales to be filed – Monthly / Quarterly

Quarterly Return – If the turnover during the previous year does not exceed INR 1,50,00,000 then GSTR-1 has to be filed quarterly. The due date of filing a quarterly return is last day of the month following the quarter. For e.g., the due date for quarter ending April- June will be 31 July.

Monthly Return – If the turnover during the previous year exceeds INR 1,50,00,000 then GSTR-1 has to be filed monthly. The due date for filing the monthly return is 11th day of the month following the month for which the return is required to be filed. For e.g., the due date for the month of April will be 11 May.

GSTR-6

Return for input service distributor – Monthly

Monthly Return is required to be filed before 13th of the succeeding month.

GSTR 9 / GSTR-9C

Annually

GST Audit is required to be done, if gross receipts is INR 2 crores or more.

Yearly return is required to be filed on or before the 31st day of December following the end of Financial Year.

What is HSN Code?

  • This stands for Harmonized System of Nomenclature.
  • It is a 6 digit uniform code introduced for introduced for classification of 5000+ products globally in a systematic and logical manner.
  • The description of goods sold by a dealer needs to be mentioned on the invoice. However, it would be practically difficult if the detailed description of goods is required to be mentioned on the invoice.
  • HSN codes will remove the need to upload the detailed description of the goods. This will save time and make filing easier.
  • Further, the rate of tax applicable on goods or service depends on the HSN code of goods.
  • This HSN code has to be stated on every invoice; this code has to be mentioned along with the registration, and while filing the returns.

Monthly GST Filing Services

  • For Monthly Transactions below 20 – Rs. 699/- per month
Click here
  • For Monthly Transactions between 20-50 – Rs. 1,499/- per month
Click here
  • For Monthly Transactions between 50-100 – Rs. 2,499/- per month
Click here
  • For Monthly Transactions between 100-250 – Rs. 3,299/- per month
Click here
  • For Monthly Transactions above 250 - Rs. 4,199/- per month
Click here

Other Services Offered

Advisory Services

  • Structuring of tax efficient model;
  • Comprehensive heath check for GST;
  • Review of systems followed for filing of GST returns;
  • Review of contracts from GST perspective;
  • Providing detailed opinions on the GST applicability/ classification of goods.

Compliance Services

  • Assistance in obtaining registration under the GST;
  • Review / preparation of returns to be filed on a monthly/ quarterly basis;
  • Review / preparation of annual return;
  • Conducting the GST audit - Applicable in case turnover exceeds Rs. 2 crores in a particular year;
  • Representation and follow up for speedy disposal of refund claims;
  • Representation before the tax officer in case any notice received from the tax department (Currently, this service is available for Mumbai & Delhi only);
  • Representation before the appellate authorities (Currently, this service is available for Mumbai & Delhi only).