With the motto of One Indirect Tax, One Country, Goods and Services Tax came into effect on 1st July 2017 in India. It is levied on the supply of goods and services and has replaced many Indian indirect tax laws.
GST is a comprehensive, destination-based and multi-stage tax that is levied on each stage of value addition. GST has helped in reducing the costs of goods and services since the GST regime eliminates the tax on tax process. The chief benefit of GST is that it is technology-driven. All the activities that are covered in GST regime like- GST return filing, GST registration, response to notice and refund application has to be filled online that accelerates the process. The GST registration online and GST return filing have helped in the organisation of the unorganised sector and lesser compliances have eased the process too.
A business whose turnover exceeds INR 40 lakhs (INR 10 lakhs for NE and hill states) is required to be registered as normal taxable person. The same process is known as GST Registration. As the GST registration online process goes, it takes 2-6 business days. GST registration is an 11 steps process involving the submission of numerous business details and documents.
To file the GST return, GST compliant purchase and sales invoices are required and GST return filing must include- purchase, sales, output GST (on sales) and input tax credit (GST paid on purchases). Multiple GST returns are serving different purposes and to be filed at different dates of a month. A regular business needs to file two monthly (GSTR-1 and GSTR-3B) and one annual return (GSTR-9) making a total of 25 return a year.
GST benefits the small businesses by giving them an option to lower the taxes by using the Composition scheme. Multiple relaxations and alterations in the tax law come about almost every year. And, that’s why businesses need to hire GST consultant to identify the gap in existing GST and improving it for saving the taxes.
Tax department with authorities beginning to quiz input tax credit claimed by firms in GST. With the rising interrogations from tax authorities regarding the input tax credit claimed by firms requires GST consultant to get defend your case and settle the dispute.
Under the GST regime, there are defined descriptions of offences and penalties for each scenario. There is a set of 21 penalties which can be either for late filing of GST return or not registering under GST or submitting the false information and others. The process becomes tedious when you have to remember the due dates every month and which even if you deny, hinders the core business process if not done by professionals. The team at Patron Accounting is well-read with the legal compliances under the GST Act and the penalties in respect of each offence. With the help of the dedicated and cognizant team, we are always able to deliver the best services to the clients and save them money as well as time to focus on the core business activities.