Goods and Service Tax (GST)

• GST Registration.
• GST Return Filing for all types of business model.
• GST Audit.
• Classification & HSN Code.
• Invoicing /E-Invoicing under GST.
• Input Tax credit.
• GST collections and payment verification.
• E-waybill Provisions.
• Refund under GST.
• Handling Notice/ Scrutiny Cases/ Appeal before various GST Authorities.

GST witness a biggest tax reform in India. As per GST act every business whose turnover is more than 40 Lacs need to register for GST under GST it means if the business cross the 40 Lacs threshold limit than they need to take GST Registration under Goods and Service Tax Act. GST registration limit for services provider is Rs. 20 lacs so if turnover of services provider cross Rs. 20 lacs than they need to register for GST compulsorily. After getting GST reg if dealer want to cancel GST Registration due to non-fulfil the GST Registration criteria than he can cancel GST Registration by doing some simple step.

GST Registration process is very simple and need following documents.

• Company GST Registration: Certificate of Incorporation, Directors KYC and Photo, Bank Details, Registered office Prof.
• LLP GST Registration: Certificate of Incorporation, KYC of Designated Partner and photo, Bank Details and Registered office Prof.
• Partnership Firm GST Registration: Partnership deed, Partners KYC and photo, Bank details and Registered office Prof.
• Individual (GST For Small Business): Individual KYC, Photo, Registered Office Prof., Bank Details.

In the case of Company GST Registration and LLP GST Registration, digital signature is must for submission registration application. Every business that is liable for register under GST need to submit GST application within 30 days after liable for registration.

GST Return Filing

Under GST regime dealer need to file certain return, GST compliance process is totally online, all the return to be filed online on timely basic. The purpose and frequency of GST return is below.

• GSTR-3B – Summary Return (Frequency Monthly)
• GSTR-1 – Details of Outward Supplied (Frequency Monthly/Quarterly)
• GSTR-2 – Details of Inward Supplies of Goods and Services
• GSTR-2A – Details of Auto Drafted Supplies
• GSTR-4 – Quarterly return for registered person opting for composite scheme
• GSTR-4A- Auto drafted details for registered person opting composite scheme
• GSTR-5- Return for Non Resident Taxable Person
• GSTR-9 – Annual Return
• GSTR 9C – Reconciliation Statement and Certificate (GST Audit)

GST Return filing compliance is very important to do on timely basic otherwise need to pay heavy penalty. If you do not file GSTR-3B on due date (Due date is 20th of next month) than penalty is Rs. 50 per day and in the case of NIL return penalty is Rs20 per month. In GSTR-1 we have to submit details of every sales invoice we have issues where all details in respect of sales we need to put i.e. Date of Invoice, Invoice Number, buyer GST Number, Invoice amount, GST amount, GST rate etc. and GSTR-1 need to submit monthly basic if business turnover is more than 1.50 Cr. And if turnover is less than 1.50 Cr. than tax payer have option to choose quarterly tax return. On the other side GSTR-2A is auto populated return where whatever purchase we have made from vendor should reflect in GSTR-2A return if the vendor filed GSTR-1 properly.

One thing we should note here that in GST regime Input credit we get only when the same amount reflect in GSTR-2A return so when we file GSTR-3B return and avail GST input credit on the basic of Invoice and later on the same is not reflect in GSTR-2A return than dealer need to pay this deficiency amount and not eligible to avail input credit. At the end of the year dealer need to file GSTR-9 Annual Return where all the sales purchase need to put and the same should be tally with previously filed GSTR-3B, GSTR-1 and GSTR-2A return. If the business turnover is more than 2 cr. than dealer need to get GST audit from chartered accountant or cost accountant.

Input Credit Adjutment

Input credit can be adjusted in following manner

Understand the GST input setoff priority is very important. New section 49A inserted under CGST act.

49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment. So after insertion of this section the GST liability of IGST, CGST, SGST first will be adjusted against IGST and after that in any balance will be utilised against respective input ie. CGST or SGST. For example if IGST liability is 50000/-, CGST liability is 40,000/- and SGST liability is 40,000/- and Input credit available in IGST is 1,00,000/-, SGST Input is 50,000/- and CGST input is 50,000/- than first IGST input of Rs. 1,00,000 will be first adjusted against 50,000/- IGST than 40,000/- CGST and balance 10,000/- against SGST. So this sequence which was incorporated in new section which is effective from 1st Feb 2019. Further CGST liability can be adjusted against CGST input and SGST liability can be adjusted against SGST input and CGST and SGST liability cannot be adjusted against each liability.

Reverse Charges Mechanism

Reverse charge mechanism is a mechanism where the recipient person of the goods and/or services is liable to pay GST in place of the supplier. Normally supplier of services is liable to charge GST and make payment accordingly but in case of reverse charge mechanism it is totally opposite and recipient of services need to pay GST liability. The main object to introduce of reverse charge mechanism is to widen the tax base and cover GST tax on un registered dealer also because under this provision if any registered dealer receive certain services from unregistered dealer than registered dealer need to assess tax on this services and make the payment on this services however he can take GST input on these services and can set off against the GST liability but first he need to pay compulsory the GST liability in cash. Due to implementation complexity in initial period reverse charge mechanism applicability is deferred and it is decide that it will be applicable from 01/10/2019.

So GST is landmark taxation system in Indian economy and initially certain difficulty face by government and dealer to absorb the new tax law but over the period of time things is simplified and people are adopt the new system comfortably. Our firm is well equipped with professional and technology and providing GST consultancy services effectively.