Prior to the implementation of GST, the government held various meetings and discussions. The tax regime got implemented on July 1st, 2017. Since then, it has made a revolutionary change to the taxation policy of the country. The filing, return, and the registration process is simpler than ever. However, resisting change is a basic human trait. Due to this very characteristic, people have faced many problems in accepting this abrupt change in tax regime. Though the GST regulations have simplified the taxation system of the country, deciphering it is still a task for taxpayers. Hence, in this blog, we mention major GST regulations that you must know.
Small businesses are exempted from GST registration. They don’t need to pay or take GST. Moreover, businesses that have a turnover of more than ₹ 5 lakhs or ₹ 10 lakhs need to comply with GST regulations in India. Hence, they need to register their businesses under GST. Apart from this, some companies are ought to register irrespective of the mentioned limit. The ones who should register themselves are the ones who have earlier registered themselves for Service tax, central excise, VAT, luxury tax, entry tax and entertainment tax. Furthermore, the local bodies levying entertainment tax and exclusive liquor dealers who have already registered themselves under VAT don’t need to register themselves.
There is a huge difference in the way invoices are created after the GST roll out. Levying taxes has become simpler. However, the format of invoice creation has changed, it is essential to update oneself of the same. It is pertinent for every business operator to know the ideal way of creating an invoice. It should encompass date of issue, name and GSTIN address of the supplier and recipient too if he is registered. In addition to this, it should also include total amount and price of good and services, the place where it is to be delivered and of course the total amount of tax charged. The signatures are also necessary.
Whilst issuing the invoice for the supply of goods, you should make three invoices original for the recipient, duplicate for transporter and triplicate for the supplier. On the other hand, you need to create original for the recipient and duplicate for the supplier, in case of supply of services.
As per GST regulations, for intra-state supplies, state GST and Central GST are levied. In case of Inter-state supplies, IGST is imposed. One should maintain electronic tax liability register, credit ledger, and cash ledger conscientiously. GST returns should be filed on a monthly or quarterly basis. A non- resident taxpayer also needs to file a return for the supply of goods and services.
The foretold points are just a sneak through in the present taxation regime. This will develop a strong foundation pertaining to GST rules for taxpayers.