How you can keep yourself updated with GST?

By Registrationwala

5th June 2017

 

Why do you need GST registration?

GST is going to be a formal tax reform after GST rollout on July 1, 2017. Things are going to be formal are people have to follow GST registration suppose Any person who sells goods and/or provides services of more than Rs 20 lakh (Rs 10 lakh for North East states) in a financial year must seek registration under GST. In case of inter-state supplies or supplies via e-commerce must mandatorily register, no threshold limit is applicable to these. Companies and firm those who have already registered under VAT/service tax also need to migrate and register under GST.

Simple GST registration process
GST migration
is an important formality for all existing central excise and service tax registrants and VAT dealers. GST migration you will require provisional ID and password by the CBEC/State Commercial Tax Departments that will be provided. This provisional ID and password can used to log on to the GST Common Portal (https://www.gst.gov.in). You just need to fill up the form and submit Form 20 along with necessary supporting documents. After registration each entity registered under the previous indirect tax laws shall get a certificate of registration on provisional basis. Certificate issued after it will be valid for 6 month only

How will GST registration help?
GST registration allows you to claim input tax credit that mainly at the time of paying GST which you have collected on your sales, you can reduce the GST you have paid on inputs used for your business. In case you are unregistered, businesses to which you supply will have to do compliance which will be on your behalf. In that some buyers may avoid dealing with nonregistered suppliers due to higher burden of compliance.

Complication with GST

GST compliance will be has to be fulfilled with help of technology. Since, the GST returns will have to be filed online. All things need to move up to an electronic system. GSTN will be responsible for the submission of all B2B invoice. GST Rules should be followed for Invoices prepared in the format prescribed. All the process such as tax payment, tax credit, and refund of GST would be carried out electronically.

Do small, part-time gigs also need to register?

Composition dealers will have to file quarterly returns instead of three returns every month. However, they cannot collect tax from customers. They also have to pay GST out of their own pocket and are not allowed to claim any input tax credit. This scheme is not available to those who make interstate sales or sell via e-commerce.

Small businesses and taxpayers with turnover of less than Rs 50 lakh in a financial year can opt for the composition scheme under which they will be taxed at fixed rates; 1% for manufacturers, 2.5% for restaurants, 0.5% for other supplies which may be notified in due course.

What’s the penalty for non-compliance of GST?
People need to be aware of the fact that goods on which tax is not paid or is short paid, they have to pay the penalty of 10% of the tax amount due or Rs 10,000, whichever is higher. in case of deliberate evasion or fraud the penalty can be 100% of the tax amount. There are  many other penalties mentioned in the law for non-filing of returns, other non-compliance etc.

 

 

How you can keep yourself updated with GST?

2017-06-05