Taxdtidt Blog

Introduction to GST On July 1st, 2017, India moved to a new tax system – one that aims at converting the entire nation into a single market 1. What is GST GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. GST  is levied on the supply of goods and services. Goods and Services Tax Law in India is a  comprehensive, multi-stage, destination-based tax  that is levied on every  value addition.  GST is a single domestic indirect tax law for the entire country. Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST. Now, let us understand the definition of Goods and Service Tax, as mentioned above, in detail. Multi-stage An i

In its bid to allay concerns of traders on invoice generation post-GST, the CBEC, under the Department of Revenue, said: “There are some apprehensions in the trade circles that GST invoice have to be issued as per prescribed format and that issuing GST invoice is going to be burdensome process. This is not correct. Some important facts about GST provisions relating to invoice are highlighted for information of all stakeholders.” Touted as the biggest reform since Independence, the incoming indirect tax regime is aimed at creation of a common market, preventing ‘tax-on-tax’ and making goods and services cheaper. The Central Board of Excise and Customs gave a list of facts on GST invoice: 1) All GST taxpayers are free to design their own invoice format. 2) GST Law only required that certain fields must mandatorily be in the invoice. 3) The time period prescribed for issuing invoice is different for goods & services – for goods, it is any time before its delivery and for se

Prime Minister Narendra Modi billed  GST  as a ‘good and simple tax’ that will end harassment of small businesses. However, the reality remains quite different. Hailed by experts and economists that  GST  will be beneficial in the long run, small businessmen are still unclear about the nuts and bolts of the new tax regime. Requesting anonymity, a central excise, and customs official says that the main problem is that there is no concept of issuing a tax invoice in tier II cities which has now been mandated if the sale value is above Rs 200. “This is bound to create an initial hiccup for small businesses.” He further adds that without strong IT infrastructure in these cities, these businessmen are now hapless, looking for IT skills. However, these businesses will become more transparent in the long run, he said. Archit Gupta, founder of  Cleartax , says that they see over 50% traffic from metro cities while tier II and III cities constitute around 46% who seek help for e-fil

Myth 1) Every taxpayer has to file invoice wise details in the return 2) There are 3 returns to be filed every month Reality 1)  Only suppliers to re-sellers (i.e. B2B suppliers) not under composition scheme have to file invoice wise details. 2) There is only one return to be filed by the taxpayer with other components getting auto-populated. Category of Taxpayers Details to be Given Form to be used Periodicity / Last date Aggregate Turnover less than Rs. 20 lakh Nil Nil Nil Aggregate Turnover up to Rs. 75 lakh and availing the composition Scheme Ø   Consolidated details of outward supplies made by you during the quarter including that if advance received Ø   Details of supplies received ( Auto-populated from the GSTR-1 of the supplier) Form GSTR-4 Quarterly or 18 th of the month following the quarter Aggregate Turnover more than Rs. 20 lakhs and not availing Composition Scheme but

SAP Materials Management (Procure to Pay)  Purchase Info Records Material/Service Master Purchase orders, Invoices Subsequent Credit /Debit, Debit/Credit Notes Master Data SAP FI, SD, MM, G/L Master Vendor Master Customer Master SAP Sales & Distribution (Sales Order to Cash) Sales Orders, Invoicing Distribution Channels & Sales areas Pricing (Types of Conditions)  Billing Schedules, Delivery Debit/Credit Notes SAP Financial Accounting Accounts Payable and Receivables Invoicing (Non-PO)  Management of Master Records  Billing (Non-SO) Petty Cash  Invoices and Credit Notes  General Voucher G/L Account SAP Forms & Reporting Other Statutory Reporting  G/L Account Reporting Goods and Service Tax Structure: CGST: Central GST SGST: State GST

Last Thursday, the Goods and Service Tax Council gave the green signal for rolling out the new tax (Goods and Service Tax) regime from July, clearing all regulations and legislations required for one of the most aspiring and ambitious tax reform measures since Independence. The GST council, which met in New Delhi, approved the union territory GST (UTGST) and the state GST (SGST) bills. Now the Goods and Service Tax bills will have to be cleared by state assemblies and by the Parliament as well. Some minor adjustments are still pending The GST Council has given its approval on the rules and regulations on GST registration, invoice, returns, payments, and refunds, but all these may need some minor adjustments and corrections. The GST council will again meet on 31st March to approve the regulations on input tax credit, valuation, composition, and transitions. Once the GST council approves the rules and regulations, the most vital issue of the assignment of the tax slabs to nume