GST in India? – Goods And Services Tax Law Explained

GST is an Indirect Tax that has replaced many Indirect Taxes in India. The Goods and Services Tax Law was passed in Parliament on March 29, 2017. This Act came into effect on July 1, 2017; The Goods & Services Tax Law in India is a comprehensive, multi-stage tax based on the objectives imposed on each value addition.

What is GST?

“GST (Goods and Services Tax) is India’s largest indirect tax reform. GST is a single tax on the supply of goods and services. This is a destination-based tax. GST has included taxes such as Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc. GST is one of the largest indirect tax reforms in the country. GST is expected to unite the country’s economy and increase the country’s economic growth as a whole.

GST is one of the indirect taxes for all countries.

So, before the Goods and Services Tax, the tax collection pattern is as follows:

GST regime

Multi-stage

There are several changes of goods that enter through its supply chain: from manufacturing to final sales to consumers.

Let’s consider the following case:

  • Raw Material Purchases
  • Production or Manufacture
  • Warehousing of Finished Goods
  • Sold to Wholesalers
  • Product Sales to Retailers
  • Sales to End Consumers

GST Multi stage

Goods and services tax will be charged at each stage which makes it a multi-stage tax.

Value Addition

Manufacturers that make biscuits buy flour, sugar and other ingredients. The input value increases when sugar and flour are mixed and baked into biscuits.

manufacturer of Biscuit

Advantages of GST

GST will primarily remove the cascading effect on the sale of goods and services. Removal of the cascading effect will have a direct impact on the cost of goods. Because taxes on taxes are removed in this regime, the cost of goods decreases.

Benefits of GST

What are the GST Components?

There are 3 taxes that apply under this system: CGST, SGST & IGST.

CGST: Collected by the Central Government for Intra-Country sales (For example: transactions occur in Maharashtra)
SGST: Collected by the State Government for Intra-Country sales (For example: transactions occur in Maharashtra)
IGST: Collected by the Central Government for sales between countries (For example: Maharashtra to Tamil Nadu)

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New Mandatory Rule Introduced To Generate GST E Way Bill

GST E way bills now demand another compliance that must be followed because the GST network has required it to enter the PIN code of the place where the shipment must be loaded or unloaded.

The reason for entering the PIN code on the E-Way Bill will help the portal to calculate the actual distance further helping to validate E Way Bill.

At present, businesses only need to mention the distance and place of loading and unloading that do not help for reasons but now the PIN code should help in this cause.

At present the GST E bill is generated when 100kms are spent in one day but the problem is that some businesses can use the same GST e-way bill and make several trips.

And now GSTIN offers auto-population facilities when a PIN is entered in the place of the sender’s or recipient’s address, according to an official statement released.

GSTN also issued a statement saying, “This new feature is part of GSTN‘s ongoing efforts to improve user experience and make the e-way bill drafting process easy and convenient for users. These new features have been developed and introduced in response to feedback from both users and tax authorities to make e-way bills easier. “

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How to E-file Income Tax Returns ( ITR )?

How to E-file Income Tax Returns ( ITR )? – Income Tax E-filing Guide

Step 1:  E-filing ITR – Start

Before starting, you must have the following document to speed up the process:

  • PAN
  • Adhaar
  • Bank Account Details
  • Form 16
  • Investment Details

Step 2: Enter your Personal Information

  • Enter Your Name,
  • PAN,
  • Date of Birth, and
  • Father’s Name.

Step 3: Enter your Salary Details

1)  Fill in Your Company Name and Type.

2)  Give your salary and TDS information. To enter your salary details in detail, ‘Click here’.

Step 4: Enter Details to Claim Reduction

Enter investment details for the deductions to be claimed (Eg. LIC, PPF, etc., and other tax allowance claims here.

Step 5: Enter the Details of Taxes Paid

If you have any non-salary income, say, interest income or freelance income, then add tax payments that are already made. You can also add these details by uploading Form 26AS.

Step 6: E-File

Enter your bank account details and proceed to e-filing.

Step 7: E-Verification

After your return is submitted, e-verify your income tax return. Watch this video to find out how to e-File ITR Online

If you miss the due date to submit a refund, you can still apply before 31 December 2018 by paying a fee of Rs 5,000. If you submit after 31 December 2018, you must pay a fee of Rs 10,000. Also to note that the deadline for submitting late returns for 2017-18 FY ends on 31 March 2019.

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