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What is Goods and Service Tax (GST)?
Simply put GST stands for Goods and Services Tax, which is levied on supply of goods or services or both. Sale of goods, for example is a type of supply. Various economic activities are all different types of supply.
On what type of transactions is GST levied?
In general, GST is levied on all supplies of goods or services or both which are made for
consideration. In most cases consideration is the payment for sale of manufactured or traded goods
Whether a person will have to approach two authorities-Centre as well as State for various permissions, audit etc?
No, a person will have to approach only one tax authority. The officers of Centre will be cross empowered to do the work of State officers and vice versa. Each tax payer would be assigned one authority, either Centre or State
A taxable person’s business is in many States. All supplies are below Rs 10 lakhs. He makes some Inter State supply from one State. Is he liable for registration?
He is liable to register if the aggregate turnover (all India) is more than 20 lakhs (Rs 10 lakhs in Special Category States) or if he is engaged in Inter State supplies. In this case he would be liable to register all his businesses.
If I register voluntarily though turnover is less than Rs 20 lakhs, am I required to pay tax from 1st supply post registration?
Yes, you would be treated as a normal taxable person and pay tax on supplies below the turnover of Rs 20 lakhs also
How can tax payments be made under GST?
Under GST tax payment is easy and can be done first by using the input tax credit available. The payment can also be done in cash through all modes available like e-payment through netbanking, credit card and debit card, over the counter of banks, RTGS or NEFT.
What details are to be contained in a ‘tax invoice’?
The tax invoice shall contain details as specified in Rule 1 of Tax Invoice,Credit and Debit
Notes Rules. It must contain details such as:
(i) Name, address and GSTIN of the supplier
(ii) A consecutive serial number not exceeding sixteen characters, in one or more multiple
series, containing alphabets or numerals or special characters-hyphen or dash and slash
symbolized as “_” and “/” respectively, and any combination thereof, unique for a
(iii) Date of its issue
(iv) Name, address and GSTIN or UIN, if registered, of the recipient
(v) Description of goods or services or both
(vi) Taxable value of supply of goods or services or both taking into account discount or
abatement, if any
(vii) Rate of tax (Central tax, State tax, Integrated tax,Union Territory tax or cess)
(viii) Amount of tax charged in respect of taxable goods or services ( Central tax, State tax,
Integrated tax, Union Territory tax or cess).
(ix) Signature or digital signature of the supplier or his authorized representative.
Will GST be levied on all goods or services or both?
No. GST will not be levied on alcohol for human consumption. It will also not be levied for the time being on 5 petroleum products (Crude, Motor Spirit (Petrol), HSD, Aviation fuel & Natural gas),on electricity and on sale and purchase of real estate.
How GST will be levied on different kinds of supply of Goods or Services or both?
GST is a dual levy. On every supply within a state (intra-State), GST paid will have two components -Central Tax and State Tax. On every supply across states (inter-State), Integrated Tax will be levied. However, sum total of Central and State tax will be equal to Integrated Tax. Thus, whether a supply is made in same State or to another State, total tax required to be paid shall be the same.
What is destination based consumption tax?
GST will accrue to the State where the supply is consumed. For example, if a car is manufactured in Chennai but purchased by a consumer in Mumbai, the state component of tax would accrue to Maharashtra although tax would be paid by the supplier in Tamil Nadu.
What in Input Tax Credit?
A person doing business will be purchasing goods/availing services for making further supplies in the course or furtherance of business. When such purchases are made by him, tax would have been charged by his supplier and collected from him. Since tax is collected from him, he can avail credit of the tax paid by him to his supplier. This is known as input tax credit for the recipient.
Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till new one is issued?
Provisional GSTIN (PID) would be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID and final GSTIN would be same. There would not be any need to apply for new GSTIN.
How will taxpayer get the certificate of registration?
The taxpayer can himself download the certificate of registration online from the GST common portal.
How long can I wait to register in GST after becoming liable to registration?
An un-registered person has 30 days to complete his registration formalities from its date of liability to obtain registration
Do registered dealers have to upload the sale details to un-registered dealers also in GST?
In case of intra-State supply and inter-State B2C supply, a consolidated entry has to be specified in the Return. However, for B2C inter-State supply, each supply having invoice value of more than Rs 2.50 lakhs is required to be reported in the Return.