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Comprehensive Guide To Get Best Gst Services

GST is a gamer changer for India’s economy and as it is considered a major change in the Constitution since India’s independence. GST helps to portray India as a unified market to business owners and also intends to bring back the black money into the mainstream economy. 

The Parliament passed the Goods and Service Tax (GST) Act on 29th March 2017. GST has replaced other indirect taxes like VAT, service tax, excise duty, etc.

In layman terms, GST is an indirect tax imposed on the supply of goods and services. GST is one single indirect tax for the whole country.

Components of GST

There are three types of taxes under the goods and service tax umbrella.

  1. CGST: Central Government collects CGST on an intra-state sale, i.e. transaction occurring within the state.
  2. SGST: State Government collects SGST on an intra-state sale, i.e. transaction occurring within the state.
  3.  IGST: Central Government collects IGST for inter-state sale, i.e. from one state to another. (E.g., Maharashtra to Kerala)

These are some basics about GST that GST consulting services will provide you.

The Harmonized Commodity Description and Coding System usually refers to “Harmonized System of Nomenclature” or just “HSN”. The core motive of HSN is to categorize goods from all over the World methodically and reasonably. The purpose of HSN codes is to make the process of GST systematic and internationally acceptable. HSN codes will eliminate the necessity of uploading a thorough description of the goods. This will save valuable time and make filing simpler as GST returns are automated.

In GST Management, businesses whose gross revenue is more than Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is obliged to register under GST as a normal taxable being. This process is called GST registration. Certain businesses must register under GST. If the party still does business without registering under GST, it will be considered as an offence under GST, and heavy penalties and fees will be levied on him. Many GST consulting services help a business to do the registration.

After registration, the business has to file for GST returns. A return is a document comprising of income details which a taxpayer must file with the managerial tax authorities. Tax authorities use these details to calculate liabilities. For GST, certain regular businesses have to file two monthly returns and one yearly return. 

GST services providers will explain to you about something known as a composition scheme. They will also help you to create correct invoices as it is the first step to becoming a GST compliant.

GST possesses the mechanism of input credit. Every service provider will explain it to you if you are a beginner. If you are registered under GST, you are eligible to claim input credit for the tax you have paid on your purchases.

The idea of taxation, type of tax, and the amount of tax is dependent on the time, place, and value of supply.

  • Time- The time of supply means the time when goods/services are considered supplied. When the vendor identifies the ‘time’, it aids him to recognize due date for payment of taxes.
  • Place- The place of supply is where the goods are delivered or transported.
  • Value-The value of supply is the monetary amount charged by the seller for the product.

The GST services providers aid us to file returns and pay tax liabilities. This process can also be done online. Along with GST, the Indian economy has become digital. The record-keeping or account maintaining process is done online as well.

There are, in total, 21 offences (breach of provisions) under GST. They are categorized under fake/wrong invoices, fraud, tax evasion, supply/transport of goods and others. If a company commits an offence, both the lead officer as well as the company will be held accountable. There are certain penalties or charges if you commit an offence or miss any return filing or other deadlines.

Changing over from one tax regime to another is not an easy task. Sometimes it is difficult for a registered taxpayer under VAT to transition to the new era of GST. The GST services providers are available to help you with this transition and to make you a trusted taxpaying businessman of this country.

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