Goods and Services Tax (GST) was rolled out in July 1st 2017. There are intra state and inter-state GST. Intra state includes Central GST and State GST (CGST and SGST). Inter-state included Integrated GST (IGST).For some services and products like legal service, goods transport agency, etc. and cashew nut, tobacco leaves, etc. GST is paid by the recipient. For a turnover of up to 1 crore, composition scheme can be opted for which input tax credit cannot be claimed.
For every person or company, if the aggregate turnover is Rs 20 lakhs or more shall be required to obtain registration. Application should be filed for grant of registration for GST. Certificate of registration will be received along with GSTian number. GSTian number is assigned based on PAN or tax reduction or collection account number.
Credit notes and debit notes invoice of supplies should be filed within 20 days from end of month in form GSTR-1. Payment of taxes should be done before filing the return. Quarterly returns of GST can also be filed in some cases. Annual returns of Goods and Services Tax (GST) should be filed on or before 31st December after the end of financial year.
There are three ledgers; electronic liability ledgers, electronic credit ledgers and electronic cash ledgers. The electronic liability ledgers and cash ledgers are mapped and the excess cash in the credit ledgers is noted down as Goods and Services Tax (GST) in the cash ledgers. Documents of credit notes, debit notes, sales invoice, input tax credit, purchase invoice, etc. has to be maintained by the company.
Identification of services or products and classification under GST schemes, proper classification of coding are all necessary for a company.
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