Nature, Benefits and Recovery of Tax under GSTHemlata Khandelwal / 2021-03-16 09:21:12
Nature of GST
There is a curiosity in the entire country about GST. Do people want to understand GST that why GST is considered the biggest tax reform after independence? Here are some points about the benefit and nature of GST, and the recovery of tax in GST, and the process of filing returns.
The central government levies different taxes on various items called Excise Duty, Additional Excise Duty, Additional Customs Duty, Special Additional Duty, etc., and service tax (service tax) is levied on services. Taxes are levied separately by the State Government under the name VAT Central Tax, Purchase Tax, Entertainment Tax, Lottery Tax, Octroi, Entry Tax, etc. Apart from this, different types of cess or surcharge (surcharge) are also imposed by the center and the state. Now all this will be done separately in GST and only one tax GST
It will be installed on all goods and services. Whatever the GST tax rate will be over an item, it will be the same rate across India.
Benefits of GST
Making the tax levied by a large number of central and states together will solve many taxes and double taxation problems and clear the way for a unified national market. From the point of view of the consumer, the biggest benefit will be that the tax burden on goods will come. Today, this tax burden is around 25 percent to 30 percent. With the implementation of GST, Indian producers will be able to compete in domestic and international markets. The studies done show that this will also have a very encouraging effect on economic development.
In the GST issue (including rate) in the constitution, the GST Council has given all rights to take decisions on important issues at all important points.
Recovery of tax in GST
The major decisions that have been taken so far in a meeting of the council said that all items will be taxed at 4 rates - 5%, 12%, 18%, 28%. In addition, there will be some goods and services that will not be taxed. That is, it will be an item on the discounted list. There will be a special tax on gold and silver and jewelry made from them, which is yet to be decided, the full amount will be paid for the tax paid on the items exported to the country. In addition to the customs duty on imported goods, the same GST will be levied as the GST for those items within the country.
After implementing GST, traders and producers will now have to process the same tax. The biggest benefit has been given to small traders, now in most of the states of the country, above 10 lakh, traders have to pay VAT. In GST, the limit has been reduced to 20 lakhs in all other states except for the special category hilly areas. This means that a businessman whose annual turnover was between 10 lakh and 20 lakh will also no longer have to pay any tax nor will it be mandatory for him to get GST registration online.
Currently, most of those who have VAT, service tax, and excise numbers have been registered in the GST process.
Filing return under GST
- In GST, each trader has to fill the main return once a month and pay his tax. Whatever tax is to be paid on any goods or services, each item of tax that has been paid on the purchase of the entire input tax will be automatically deducted by each trader. The entire process of filing returns is online. If you keep your ledger in the excel sheet given by GSTN, then every month, the same person will automatically change it with the help of the offline tool.
- If a trader sells all his goods to tight retail customers (B-to-C), the return of such a trader will be very simple. In which the rate-wise turnover has to be shown. If a businessman takes advantage of the composition scheme and whose turnover is less than 50 lakhs, such businessman will not have to fill the returns every month, but in 3 months, in which his total will have to be shown in the turnover.
- Businesses who are selling business-to-business (B-to-B) merchandise will have to give full details of every sale of their invoice in return at the time of GST Return filing. When every businessman puts the details of his sales (sales) on the GST website by the 10th of the month in the form of a return, then the complete details of the purchases made by him are automatically shown to his buyers in his GSTR-2 (GST Online Account) It will be auto-populated. When the buyer sees the merchant, then by clicking on it, the complete return of the merchant will be exposed to them in the computer itself. By clicking to approve, the complete details of the tax liability of the merchant and input-tax credit will be automatically generated by the GST system and shown with net tax liability. The difference between tax liability and input tax credit has to be filled by the businessman. The tax has to be deposited online or in the bank. Thereafter, the merchant has to click on GSTR-3 and submit the final return prepared by the computer by the 20th of the month.
- In the business-to-transaction transaction, an arrangement has been made which we call the input tax credit, i.e. the act of returning the input tax credit that you have received. Many people have expressed concern about this, but if you understand the whole process then you will fully support it.
- As further explained that the transaction from which you bought the goods has been shown by the 10th of the month in your return, and then you will get input-tax-credit. Suppose that the person selling the goods does not put that invoice in your return, and then you will get a chance that you can show it in your GSTR-2 return till the 15th of the month and by doing this you will have to tell you in that month but you will get full input-tax credit.
- After that, you have to contact the merchant and convince him to show that transaction in your return so that you will not have to reimburse the input-tax credit that you have received in the next month. You will get a full 30 days for this and despite that, if the merchant selling you does not accept this transaction and does not see it in your return, then in the next month your input tax credit that you had received in your tax return was given to him. Reverses will be done. It is the duty of every businessman to deal with such traders who after collecting tax from you submit it to the government. They will also be given a Compliance Rating based on the default of each merchant, which will be seen by all other traders. So that you will be careful in doing business with frequent defaulting merchants.