10 basic things you must know about GST
GST (Goods and Service Tax) is all set to hit India on the massive scale from 1st July, but there are basic things one must know about GST.
Today, Council has pushed all 9 rules and this will help GST to move one step closer to implementation.
The new tax framework has cleared all nine rules, which are registration, return , refund,composition, transition, invoice , payment , input credit, valuation , these all have been cleared.
Ironically , you must know these basic things for the implementation of GST in your business:
Does I come under circle of GST
How does registration takes place with GST
What is your annual turnover and is it less or more than 20 lac
If you are selling online, with whom you are selling, is it biggies like Flipkart and Amazon
If you are single operator , are you selling goods on the behalf of another taxable person.
Is reverse charges are applying, in this case buyer has to deposit tax instead of sellers.
GST will be applied even if your sales is less than 20 lacs.
Agriculturists are barred from paying GST, see if you grow your own flowers and sell them, GST does not apply to you.
if you are a service providers ecommerce sector, like you provide services of electrician, plumbers or any other thing , then you are liable to take tax from the customers, it shows reverse taxation method, which is applicable in GST.
Unregistered dealer VS registered dealers : if you are having selling with the unregistered buyer then the seller will have to pay for the sales on the behalf of the seller.
More scoops on GST is that government has declined RTI citing, amid security concerns.
Some states demanded exemption from the GST on the particular items like UP demanded to exempt Puja Material and Centre is discussing some exemptions of goods , which will have 0 percent GST.
Food grains will be exempted and the processed food slab is of 5 %. Some States are demanding cotton and silk yarn to be out of the GST slab.
The good part about this tax, is from the Gucci handbag to the electricity bill, everything can be paid under GST.
One more thing , we have seen long queues of the trucks at the check port or Naka , 100s of trucks , waiting for hours to pay, but now they can move freely as single taxation regime is in and only once the designated tax has to be paid.
The tax will be comprised of 5%, 12 % , 18 % and 28 percent…
So, no more Chungis and long queues , trucks are free to move with the goods.Indian government is working day and night for GST to happen , and that's the reason RTI has been banished for the time being as this will provide hindrance. It seems that government's hard and desperate measure will provide relief to Indians.Kudos to all the officials and government, who are working consistently to make this change happen.
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