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GST Advisory

GST (Goods and Services Tax) India - An Overview

From 1 July 2017, the GST, an indirect tax on the majority of domestic products and services, was adopted by the Indian government. The GST is a single tax that applies to an entire country and brings in money for the government.

The new Tax rates took effect on 18 July 2022. The updated GST tax structure was approved at the 47th session of the GST council, which did take place in Chandigarh. As a result, a number of food items—including those that are pre-packaged and labelled—such as paneer, rice, wheat, jaggery, curd, and lassi—have increased in price.

From July 18, these common household items will be subject to a 5% GST. Additionally subject to 5% GST are labelled on meat and fish, puffed rice, dried makhana, and meslin flour. Previously, the GST tax was not applied to any of these commodities. In addition, a 12 % GST will now be applied to all mango products, including mango pulp. Loose, unbranded, and unlabeled commodities will still be exempt from the GST, nevertheless.

The GST rates for hotel and banking services have increased. The price that banks charge for issuing checks will now be subject to the new GST rates of 18%. Hotel rooms will also become more expensive as they will no longer be excluded from GST and will instead be subject to a 12.5% tax.

Any business that sells goods or offers services and has annual sales of at minimum ₹40 lakhs or ₹20 lakhs is required to be registered for GST and have a current GST Number. Keep in mind that supplies, not sales, are subject to the GST. As a result, inventory taking, sales, and gifts are all covered by the GST net. Regardless of sales, every business that sells to some other state must register for GST.

Latest GST Updates 2022

5 July 2022

Six fresh CGST notifications were sent by the Central Board of Excise and Customs (CBIC). Important ones include the following:

(a) To record e-commerce sales and the taxes associated with them for both e-commerce operators and e-commerce sellers, a new table 3.1.1 in the GSTR-3B format was added.Tables 3.2 and 4 have undergone a few more modifications. Look at the GSTR-3 B's new format

(b) As per the notification of Section 110 of the Finance Act of 2022 a taxpayer may only use Form PMT-09 to transfer CGST or IGST as a distinct person from one GSTIN to another

(c) A late filing fee waiver extends the GSTR-4 due date for FY 2021–22 to 28 July 2022. The deadline for CMP-08 has also been extended till 31 July 2022.

29 June 2022

On June 28 and 29, 2022, the 47th Central Committee meeting was held in Chandigarh. The meeting's chair, Union FM Nirmala Sitharaman, presented important suggestions for changing prices for goods and services. Additionally, the GST exemption list was condensed, and the public is now invited to offer comments for changes to the GSTR-3B format.

26 May 2022

According to CGST Notification No. 7/2022, issued 26 May 2022, if GSTR-4 for FY 2021–2022 is filed between May 1 and June 30, 2022, the late fee has been eliminated.

24 February 2022

1. Per notification no. 1/2022, the e-Invoicing system will be made available to businesses with an annual aggregate revenue of between ₹20 crore and ₹50 crore as of 1 April 2022.

2. Composition taxable individuals and individuals interested in opting into the programme for FY 2022–23 must file a declaration in Form CMP–02 via the GST portal by 31 March 2022.

Advantages Of GST

GST, an extensive value-added indirect tax on both goods and services, has aided in the consolidation of the Indian market. Some of GST's salient characteristics include:

Dual Tax Structure:

A centre tax and a state tax, referred to as the Centre GST (CGST) and State GST (SGST), respectively, are levied on every sale of goods and services

Integrated GST (IGST) On Interstate Purchases:

Integrated GST (IGST) on interstate purchases where the revenue is split between the consumption state and the centre

Taxable supply made between two locations of the same legal entity:

Between the agent and the principal, there is a taxable supply of goods. Employer ‘gifts’ to employees that exceed ₹50,000 are taxed

All imports are regarded as statewide supplies and are therefore liable to the IGST. There is no tax at all exports

Tax Administration:

Although there is an online tax system, there are GST Facilitation Centres, GSPs, and ASPs that help taxpayers with registration, filing returns, and other tax-related tasks.

Compositional Plan:

Under the composition structure of the GST regime, businesses have lower tax obligations. These businesses should have a supply volume of less than ₹50 lakh and are not permitted to obtain input credit. However, this programme will not be applicable to enterprises engaged in interstate commerce or the service sector.

Criteria for GST Registration

Goods and Services Tax, or GST, is the umbrella term for all taxes, including sales tax, service tax, excise duty, and others. If your company's annual sales are greater than ₹20 lakh, you must register for GST. Even if your sales are less than ₹20 lakh, we suggest you to actively choose GST registration for the following reasons:

  • Taxes paid on purchases would not be refunded (for example, if you spend ₹ 1 lakh on goods in a year at a tax rate of 28 %, you won't get the ₹28,000 in tax refund).
  • You are unable to sell outside of your state because it usually takes 2 to 6 working days to register for GST. Your digital signature and your request must be transmitted to the department together.

How Actolegal Can Assist With GST Verification

We assist you in acquiring a safe GST Identification Number. You can easily obtain your GST at home in just a few clicks. The entire procedure is done online. When necessary, we will file your returns and take care of any other complaints. In the last five years, we have assisted tens of thousands of start-up businesses with registering themselves, safeguarding their intellectual property, obtaining investment from venture capitalists, and adhering to the MCA's numerous laws. Get in touch with our experts from Actolegal to complete the process without any hassle.

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