Are you aware of the fact that GST department has already put up lenses to check flaws? There are so many businesses who register under GST but they do not file returns. Mostly people are not aware of the fact that even if you are not selling or you have no transactions in the business you still need to comply with the rule of filing GST returns.
Now GST department is keeping it strict and checking everything. Department is cancelling registration of those gst registered businesses who are failing to file returns. Also when you apply for GST, You have to make sure that the documents, your bank details everything needs to be as per department’s requirement.
So if you are all ready to start a business or are already doing a business make sure you have just the right knowledge of GST compliance. Else you might lose name or even clients in market. Get in touch with professionals who can guide you on gst correctly. A reliable person for gst compliance is Chartered Accountant so you need to find a consultant for that. A platform such as CAONWEB gives you the facility to connect with CA nearby you for all tax and compliance matter. Do not fall for the nonprofessional service providers who gives you or claims on the lowest price gst trend as a little flaw in compliance could cost you huge in the future.
Read this: Compliances Under GST for a Service Provider
GST is vast. As an owner of the business, you should be familiar with the basic things of GST. The technical part is taken care of by your tax consultant. However, it is good to have knowledge of at least basic terms. For those who are beginners and wants to know basic here it is:
Who needs GST registration in India?
If the turnover of your business exceeds a specified limit, you are required to have GST Registration on a mandatory basis.
If you are selling either product or services E-commerce operators such as Amazon, Flipkart, You need GST registration on a mandatory basis. It does not matter how much turnover you have.
If you do not fall under the threshold limit and want to get GST registration, You can voluntarily do that.
How is payment of GST done?
20th of the next month is date to pay GST . Like for June-19 gst you need to pay it by 20th July 2019 through filing gstr 3B.Interest @ 18 for failure to pay before due date.
How is GST registration done?
If you have GST documents ready you could complete the process through Government’s website. https://www.gst.gov.in/
What is input tax credit under GST?
Input Tax Credit (ITC) is amount of tax that you pay while you purchase tax already paid by a person at time of purchase of product or services. Tax credit as the name suggests, you get to deduct this amount of tax from your tax liability. ITC avail facility is restricted. For certain product and services it is not allowed to take ITC. ITC
What are the compliances after I get registered under GST?
Once you are registered under GST, You need to comply with the GST Return Filing requirement. All the filing is done electronically through GST department’s portal. Professional help should be taken when you file the return. You can find CA nearby you in google.
What is composition scheme under GST?
The composition scheme simplifies the way you pay taxes and file returns. In India if you are in business of goods trading/manufacturing and if you have a restraint turnover of which is less than INR 1 crore you can take the composition scheme.
Under this scheme tax rate is not the normal GST rate. It is 1% (for trading/manufacturing of goods) or 5% (for restaurant). In composition scheme you cannot take input tax credit.
What is e-way bill?
E-way bill is compulsory to move goods from one place to another in a case where goods value exceeds INR 50000. E-way bill can be generated through. https://ewaybill.nic.in/
What is reverse charge mechanism?
Unlike in a normal way where person selling product or services collects and pay gst, under reverse charge mechanism person who purchase product or services is liable to collect and pay gst. Reverse charge is applicable of specific products or services as notified by the Government. The tax rate is same as applicable in regular gst transactions.
Chartered Accountant by profession, CA Sanket Agarwal has an experience of above11 years in Cross Border compliance , Import Export , International Taxation & is a passionate content creator.