- April 1, 2020
- Posted by: admin
- Category: Indirect Tax
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017. Goods & Services Tax Law in India is a comprehensive, multi-stage, destinationbased tax that is levied on every value addition.
In simple words, Goods & Service Tax is an indirect tax levied on the supply of goods and services.
GST(Goods and Service Tax) is applicable in India Locally, Nationally as well as Internationally depending on the destination of where are the goods and services consumed. And the tax is levied on the end consumer who receives the commodity in the form of goods or services. Similarly, this categorization of GST is determined by the supply of goods and service at interstate or intrastate level.
When GST is applicable inside the state or we say intrastate it is levied by central government and that GST is defined as Central Goods and Service Tax or CGST .
The State Goods And Services Tax or SGST will also be levied on all intrastate exchange of goods and services. This means that the tax would be collected at both state and central level to foster revenue sharing.
A registered taxable person would be eligible for registration when the total turnover made on All India basis exceeds Rs. 20 lakhs (Rs. 10 lakhs in case of North eastern states).
Any registered business under GST is required to submit two monthly returns and one annual return. It is an efficient system to file returns. Once you submit all the details manually as needed for GSTR -1, the GSTR – 3B will automatically derive that information from GSTR -1 that is filed by you or your suppliers.
There are different rules and regulations to file returns for different cases, such as a composition dealer and others.
Types of GST Returns:
There are various returns under GST which are to be filled on the specific date as per the GST laws. Let’s us know about these returns:
- GSTR 1 – This return should contain details of the outward supply of taxable services and goods. (Filed monthly – 11th of the next month)
- GSTR 3B – This return should contain details of a summary of outward supply along with the Input Tax Credit that is declared, and payment of taxes is affected by tax-paying individuals. (Filed monthly –20th, 22th & 24th of the next month)
- CMP-08/GSTR 4 – This return is for a taxpayer who is registered under the composition levy. (Filed quarterly – 18th of the month that comes after the end of the quarter.)
- GSTR 5 – This is for a Non- Resident taxable/ Casual Taxable Person individual. (Filed monthly – 20th of the next month)
- GSTR 6 – This return is for an Input service distributor and should be submitted monthly. (13th of the following month)
- GSTR 7– This is a return for authority deducting tax at source (TDS). (Filed monthly — 10th of the next month)
- GSTR 8 – This return should contain details of supplies through the Ecommerce operator and should also include details of the amount of tax collected. (TCS) (Filed monthly – 10th of the next month)
- GSTR 9 – This return is for a regular tax-paying individual, (Filed annually – On or before 31st December of the next financial year)
- GSTR 9A – This return is for those taxpayers who are registered under composition levy, and this return could be filed anytime during the year. (On or before 31st December of the next financial year)
- GSTR 9C – This return is for all those dealers having turnover below Rs. 5 crores in a financial year 2018-19 should mandatory file GSTR 9C form along with reconciliation statement and certification of an audit. (On or before 31st December of the next financial year),
- GSTR 10 – This return needs to be submitted when the registration is cancelled or surrendered. (It should be filed within three months of the cancellation of registration.)
- GSTR 11 – This return should contain details of inward supply to be entered by an individual who has UIN and who is claiming a refund. (For Example- Nepal Embassy, World Health Organization, e.t.c) (Filed monthly – 28th of the following month for which the statement is filed)
GST on Export of Services
Where the services of a freelancer or affiliate marketer are given to a recipient outside India, 0% GST will be levied in such cases. However, registration for GST would be mandatory in such cases and all other compliances under the GST Act 2017 would also be required. Services can be exported from India using the following two options only:
Export services after paying the IGST and then claim the refund of the same.
Export services without paying IGST by furnishing a Letter of Undertaking (LUT).