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GST : Only 5 Important Things You Should Know.

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GST : Only 5 Important Things You Should Know.

The Goods and Services Tax (GST) implemented by the Indian government on 01st July 2017 is a law related to economic development and because it is a new law, so the people of the business community are facing difficulties in understanding and adopting it. Therefore, in this post, we will discuss this topic, how the traders can adopt the same law, which will definitely increase the knowledge related to your GST and will help you to understand the GST in a better way.

As a trader, when we talk of GST, we have to understand the total of 5 things which are in front.

Who will have to Register for GST?

According to the GST rules, any business whose annual turnover is more than Rs.20 million, it is compulsory to have a GST registration and to pay GST on your business transactions. In the North Eastern states, this limit is only 10 lakh rupees.

But if a businessman trades from one state to another, then it is mandatory to have a GST registration, and to pay a GST on his transactions, regardless of his turnover, in that case.

In addition, the GST Council is offering a special composite scheme for those small traders whose annual turnover is less than 75 lakhs. These small traders have the facility that they can choose the Composite Levy Scheme and can pay GST between 1.5% and 5% on the total value of their turnover. However only small businessmen can come under this scheme, and most service providers are out of this discount limit.

Apart from this, if you do any business, you can not pay GST under this Composite Scheme. However, people who opt for this Composite Scheme can not get Benefit of Input Tax Credit.

How to register for GST?

The merchants who did not pay any kind of tax pay, and now the first time GST is going to pay, they have to register online through the GST website to get the GST ID.

The GST ID 15-digit will be a code, where the first 2-digit applicant will have the state code of the ID, the next 10-digit applicant or business's PAN number, whereas Last 3-Digit will be a Random Alphanumeric Character. E.g., RJAXPML1234PXXX

It is to be noted here that in any one state, there will be a separate GST registration for all the business locations of the same trader. Therefore, if a trader's business is in the head quarter of Rajasthan and 10 other states have branches, then he will have to make a total of 11 GST registrations. Apart from these, there are 3 different GST (CGST, SGST and IGST) and those who have to register only once under GST.

If a merchant had already been paying Service Tax, Excise Duty, VAT or any other kind of Indirect Tax, then in that case he would automatically migrate to GST and it would be allocated a new GST ID. That is, it does not have to register online for GST ID like any fresh applicant.

CGST, SGST and IGST

GST has been divided into three sub-categories and three have been given different names.

When there is an intra-state transaction, ie when there is a transaction between two traders of the same state, then the GST is divided into two equal parts known as CGST and Central GST. is. For example, if 14% GST has been charged on any service, then both the Center and the State will be 7% tax payed as CGST and SGST.

But when there is an Inter-State Transaction i.e. when Transaction occurs between two merchants of two different states, then IGST applies and according to the IGST rules GST is divided between the state and the center, which is the first on various items Sure is from

Input Tax Credit (ITC) and Set-offs

This is a very important feature of GST. GST is a Value Added Tax and therefore you only have to pay tax on the added value that you have added.

Taxes can not be tax due to this arrangement of GST. That is, the tax which has been paid once, can not be taxed again on that Paid Tax. Due to which the End User can get rid of Extra Tax Burden to some extent.

For example, if your GST of this month is Rs 15000 and you have already paid 5000 rupees as Tax on Input i.e. that you have already purchased 5000 rupees GST from the Purchase through which you have now You only pay GST of Rs 10,000, because in the form of Input Credit you have already paid 5000 GST.

Here you have to keep two things in mind. First of all, under the GST, you can take Against Credit for Service Inputs of Manufactured Outputs without any difficulty. And secondly, you can only set-off the SGST against SGST and CGST's Against CGST. While IGST can be set-off with both of them.

How and when the GST should be paid

Any Invoices that are ready in Current Month will be required for all GST payments which will have to be paid by the 10th of the following month. However, until the GST system is fully stabilized, the GST Council has given time till 20th of every month.

However, it is very important for you to know about how many Returns you have to file. Because Dependents are on the number of returns you file, how many states are with your business.

For example, if your business deals with 10 states, in that case you will have to submit 3 Returns of the total 30 Return File for each State. You also need to file 3 consolidated returns, as a result you will have to do a total return of 33 Returns. However, the good thing is that once you have learned the process of returning the file, then all these Returns you can file online at home itself.

The GST itself has a huge tax rebate, so more information will be available in the coming time and as you will get new information, you will continue to get more articles in this blog on the GST. It is expected that these posts related to GST Rules have also been useful and useful for you, and you will also like and share them for your Friends and Followers.

Fastread.in Author Manisha Dubey JhaDear Reader, My name is Manisha Dubey Jha. I have been blogging for 3 years and through the Fast Read.in I have been giving important educational content as far as possible to the reader. Hope you like everyone, please share your classmate too. As a literature person, I am very passionate about reading and participating in my thoughts on paper. So what is better than adopting writing as a profession? With over three years of experience in the given area, I am making an online reputation for my clients. If any mistakes or wrong in the article, please suggest us @ fastread.ait@gmail.com

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