10th June 2017
Small businesses are the backbone of Indian economics. They drive the velocity of country's economics, industrial growth, and catalyst for job creation. However, a large number of businesses in the country are unorganized and irregular in filing returns and paying taxes.
This could be due to knowledge gap, situational issue or perception among businessman that they are small in size, operations and earnings, and it is okay to miss the deadline.
As a result, they end up getting a notice from the tax department demanding tax payment, interest, late fee and penalties for non-compliance. Especially in case of VAT dealers, the severity of consequence in terms of monetary impact is lesser to extent of additional cash outflow to the extent of default.
GST, a comprehensive indirect tax system is all set to subsume a host of existing indirect taxes and with its implementation, compliance will become a key factor for the success and credibility of a business. GST works on a self-monitoring mechanism, which is matching the concept of invoice between supplier and recipient of goods and services. Only after matching of invoices and payment of tax by the supplier, the input tax credit will be available to the recipient.
Thus, a customer will always want to do business with vendors who are compliant. This results in a change of relationship between supplier and recipient from 'customer-cum-emotional relationship to compliance relationship'.
Hence under GST, non-compliance will not only affect your cash outflow in paying fines, interest, and penalties but also affect the continuity your business and compliance rating.
Each enlisted taxable individual needs to outfit outward supply details in Form GSTR-1 (GST Returns-1) by the 10th of the consequent month. On the 11th, the perceptibility of internal supplies is made accessible to the beneficiary in the auto-populated GSTR-2A. The period from 11th to 15th will consider any rectifications (increases, adjustments and cancellation) in Form GSTR-2A and accommodation in Form GSTR-2 by 15th of the consequent month. The redresses (expansion, alteration and erasure) by the beneficiary in Form GSTR-2 will be made accessible to provider in Form GSTR-1A. The provider needs to acknowledge or dismiss the alterations made by the beneficiary. The Form GSTR-1 will be changed by the degree of remedy acknowledged by provider.
On 20th, the auto-populated return GSTR-3 will be accessible for accommodation alongside the payment. After the due date of documenting the month to month return Form GSTR-3, the internal supplies will be coordinated with the outward supplies outfitted by provider, and afterward the last acknowledgment of input tax credit will be imparted in Form GST ITC-1.
Likewise, the mismatch input tax credit because of abundance cases or duplication cases will be imparted in Form GST ITC-1. Inconsistencies not confirmed will be included as output tax liability along with interest. Be that as it may, inside the recommended time, on the off chance that it is sanctioned, the beneficiary will be qualified to diminish this yield impose obligation.
To comprehend GST return filing process lets discuss an illustration:
Outward and Inward Supply details of Ibex Motors for April:
On 10th May, Ibex Motors uploads Form -1 with their outward supply bills to Rolex Steels, Radiance Aluminum and Luminous Automobiles, who also upload Form GSTR-1.
2017 © Monetic Corp Consultants Private Limited - U74999DL2013PTC261819
Download GST E-book, An introductory guide for Goods and Service Tax by Registrationwala.
Like every GST liable business, you'll also need a GST software. Registrationwala has come up with a return preparing and filing software GST Tool.
To schedule a online demo, submit your details.