GST - Introduction with important dates

Important Links
www.gst.gov.in



History
GST was introduced by passing the Constitution (One hundred & first Amendment) Bill enactment following the passage of Constitution 122 Amendment Act Bill. GST is governed by a GST Council headed by Finance Minister Shri Arun Jaitley. France is the first Country to implement GST. Assam was the first state to unanimously ratify the GST.

 What is GST?
GST is also an indirect tax, that is the service receiver/client who receives services or goods will bear the burden of taxes on goods and services rendered. GST takes over the numerous Central & State Taxes that were levied by the Central & State Governments.

To Whom does GST apply?

GST applies to all business, private, public, small & big. With the introduction of GST all the taxes which have been paid by different businesses like news, Cinema Halls, Stores, Exporters, Importers, etc have been consolidated into 3 different types of GST taxes to be paid to the government for any business.

 In short all existing registrants of various taxes must now get enrolled into GST by migrating with a new username & password. For Vat the username & password will be provided by the VAT department whereas for other taxes it is yet to be notified.

Businesses not registered under existing laws must now register with GST.

 GST Returns:-

 With all the fast paced introduction of GST regime and its enactment without proper knowledge as to its implementation, GST has taken head on with the companies & businesses.

Effective from 1st July, GST returns have been filed for the month of July & August 2017 by many.

Initial returns filed in the form of GSTR 3B taxes were 92,283 Crore from July Month, from just 64.42 percent of total tax base.

The due dates for filings of GSTR 1 GSTR 2 GSTR 3 & GSTR 3B which are used by registered dealers have been extended for both July & August Months due to the process involved & non equipped staff.

GSTR 1 is to be filed for sales return, while GSTR 2 is to be filed in connection with purchase returns whereas GSTR 3 is a match of both GSTR 1 & GSTR 2, like an internal check.

GSTR 3B is a form to be submitted for the first 6 months by businesses in which total values are to be entered & no invoice by invoice filing is required. While some fields are automatically populated from GSTR 3 others have to be filled up. Any discrepancy between GSTR 3 & GSTR 3B can be corrected in next GSTR 3 return.

Note:- Filing GSTR 3B is mandatory for GST registrants

It is also said that entities who have not filed GSTR 3B return can file GSTR 1, GSTR 2 & GSTR 3 and pay the amount as per a Times of India Report.

https://timesofindia.indiatimes.com/business/india-business/last-date-for-filing-of-gst-returns-for-jul-aug-extended/articleshow/60365642.cms

Taxes to be merged into GST:-

The following Central & State Taxes are getting merged into GST. In other words all these taxes to be paid by businesses need to pay only GST in that place. They are:-

Central Taxes:-


  1.  Central Excise Duty (CED)
  2. Additional Excise Duty
  3. Excise Duty levied under Excise Duty Act, 1955
  4. Service Tax
  5. Customs Duty known as counter vailing duty
  6. Special Additional Duty of Customs (SAD) 4%
  7. Surcharge & Cess levied on Goods & Services
  8. Central Sales Tax to be phased out

State Taxes:-


  1. Vat or Sales Tax
  2. Entertainment Tax (Unless levied by Local bodies)
  3. Octroi & Entry Tax
  4. Purchase Tax
  5. Luxury Tax
  6. Taxes on lottery, betting & gambling
  7. State cess & Surcharge as far as they relate to goods & services

All the above taxes paid by businesses now need to pay only GST.

GST may not merge the following taxes in it namely:-


  • Basic Customs Duty:-  They are protective duties levied on Imports
  • Exports Duty:-   This duty is imposed on those goods which are not available in much quantum in India
  • Road & Passenger Tax:- This is in type of fees & not taxes
  • Toll Tax:- This is in type of user charges rather than tax
  • Property Tax
  • Stamp Duty
  • Electricity Duty
GST types:-

When we receive any bill through online purchase or any purchase of medicines, consumables purchase at Big Bazaar, we now see that there is not just GST, but CGST, SGST. What is the matter, you may think. GST when it was introduced through the enactment of it, States where given a share of the share of income & Centre took some share & hence the disclosure of State & Central GST.

HSN code is also visible on some bills, HSN stands for Harmonised  system of Nomenclature for identifying different rates on products of CGST. It is a 6 digit code. A 4 digit code to be presented if a Company's turnover in preceding year is more than 5 Crores. If the turnover less than 5 Crores but more than 1.5 Crore, it needs to present a 2 digit HSN code on its bill. If the turnover is less than 1.5 Crore no need of presenting HSN code on Bill.

The rates of GST are constantly changing due to the updations taking place due to the requirements of business and interactions happening with the concerned parties with government authorities.


GSTN

 Goods & Service tax Network is a Sec 8 (under Companies Act, 2013) non profit Organisation formed for the purpose of providing IT services to State & Central Government in relation to GST. It has an authorised capital of 10 Crores. 49% of its shares are from State & Central Government & the rest are funded by private partners like HDFC, HDFC Bank, LIC, ICICI, NSE Strategic Investment & Co & LIC Housing Finance Ltd.

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