GST Exemptions Exemptions in GST The government has classified certain goods and services as exempt from GST. Unlike with zero-rated goods and services, business owners cannot claim ITC for the sale of exempted goods and services. Here’s a list of all the exemptions: Exempted goods: Food Cereals, edible fruits and vegetables (not frozen or processed), edible roots and tubers, fish and meat …
Penalties in GST The introduction of the GST regime has brought India simplified tax filing, greater transparency, and less potential for tax evasion. Since the tax return filing process has been moved online, business owners now have to upload invoices and other documents as proof of transactions. To ensure that business owners are complying with …
GST Procedures Procedures in GST While we’ve been bombarded with GST-related information in the last few months, there hasn’t been much discussion regarding the audit and assessment processes. These procedures are carried out when there’s a mismatch between the tax owed by a taxpayer and the actual tax amount they have paid. A lot goes …
GST Compliance Rating What is the GST compliance rating? The GST compliance rating is a score given by the government to all registered businesses based on their record of compliance with the GST rules and regulations, and this score will be made visible to all other businesses. The compliance rating is calculated based on parameters …
Payment of GST Every registered taxpayer should pay their taxes by 20th of a month. Let’s take an example where a business is filing GST returns for May during the month of June. In that case, it should file all the returns and make tax payments by 20th of June. If the taxpayer did not …
GST Accounting Under the GST regime, multiple tax levies have been replaced by a single GST tax. This has led to major changes in the accounts the business owners must maintain. Previously, you would have maintained individual accounts for VAT, excise, CST and other service taxes with separate input, output, and credit entries for each. …
Reverse Charge What is reverse charge? Typically, taxes are collected by business owners on behalf of the customers, which is then paid to the government. Reverse charge is when the buyer pays the tax directly to the government. The responsibility of reverse charge can either rest completely on the buyer or in certain special cases, …
Composition Scheme What is the composition scheme? It is a scheme under GST for small businesses belonging to the unorganized sector with aggregate turnover less than Rs. 1.5 crore (less than 75 lakhs for North Eastern states). The business owners registered under this scheme are called compounding vendors/dealers, and these vendors pay tax at a lesser …
GST Invoicing As India is gearing up to make the switch to GST, there are lots of new rules and regulations to follow when it comes to invoicing. The Government has specified the tax elements that are mandatory to each invoice, and it is absolutely essential that business owners across India update their invoicing processes accordingly. …
Input Tax Credit With the rollout of GST in July, one of the most important concepts that every tax payer needs to understand is input tax credit(ITC). Before diving into details, let’s have a thorough understanding of input tax credit. What is Input Tax Credit? GST taxation structure allows businesses across India to claim input …