Master Guide to GST

Still confused about what is GST? How can you simplify the process? And what are the steps involved?

Still confused about what is GST? How can you simplify the process? And what are the steps involved?

 

Holding the center stage, Goods and Services Act is the talk of the nation even after many months of the implementation. GST is publicized as the major tax transformation that India has witnessed after independence. Creating a vast impression on the country’s economic situation, GST is now a quintessential part of our lives.

 

But, even couples of months after the execution many people are still baffled about the new tax system. Rescuing you from the confusion, we break the information about the new tax structure for you.

 

Below are the seven key points that will solve your areas of concern –

1.     REGISTER

 

GST being an indirect tax does not apply to salaried personnel. A businessman, service provider or freelancers are entitled to register for the GST number. Besides, if your firm has an annual turnover of twenty lakh rupees then you are not bound to, but it is advisable. In the case of north-eastern states, the turnover of a firm should be ten lakhs.

 

2.    EXCEPTIONAL TAX

 

To prevent the frauds and tax evasions, the Indian GST entails an exceptional feature which no other country holds. India includes the matching invoices feature in the new tax which makes it difficult to file the input tax credit difficult.

 

3.    JOB WORKS

 

The new edition of GST is the broader concept which includes the solution to many job work problems. The job work is a vital organ of business keeping the entire trade working. The GST changes the old regimes of job works and outsourced works with an in-depth broader structure.

 

4.    STOCK MARKET

 

The new tax structure has direct impacts on the working capital. Transferring intra-state stocks and interstate stocks are dealt in a different way from the old tax under GST. The taxable stock transfers under GST are fully allowed as credit which eradicates the cascading effect. The result of such changes will make the products more effective.

 

5.    RETURN FILE

 

Due to some issue or other, the filing of taxes by the businessmen were irregulars and unorganized. With the introduction of the new tax GST, return filing is no more a one-day activity. The new GST cycle is spread across the months putting an end to the old system.  

 

6.    CORRECTION ERRORS

 

After registering GST if you realize that there are some errors in your form then don’t worry! You won’t have to scrap the whole registration and apply for a new one because the new GST gives a chance to rectify the error either at the time of registration or even after the registration. With all the documents submit FORM GST REG-14 which will be verified and approved by the GST officer with 15 days and VOILA! Changes altered. Easy, isn’t it?

 

7.    WORKING CAPITAL

 

While adopting the new tax structure it will create an impact on the working capital of the business. Under the old tax structure, the credit is only accessible to the taxable outputs. But with GST the input tax credit concept is widened.

 

The new tax reformation with GST is a welcoming and evolved change which will benefit both the customers and the businesses in the same way.

 

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