The goods and service tax is basically an indirect tax or a consumption tax which was imposed on the supply of goods and services in India. It came into effect from July 1, 2017. Replacing the multiple existing flowing taxes which are levied by both the central and the state government, GST replaces all of these indirect taxes with a federated tax reshaping the 2.6 trillion dollar economy of the country.
Now here are7 things that you must have a knowledge about when it comes to GST-
- Input tax credit
Since GST has a feature of matching invoices, it makes the GST of India unique from rest of the world. This helps in checking for any kind of fraud or tax invasion. But due to this it becomes difficult to fill the input tax credit form. The businesses are allowed to claim the credit by the GST AND if the tax has been paid then in that case they can claim for input credit.
- Job works
For people who are into the manufacturing industry, so for them if they are outsourcing work to somebody else or they themselves carry on the job work then there has been changes in the GST which one must be aware of. The new rule irons out the old regime and the new version has a much wider scope.
- Working capital
For those who are into ecommerce business, for them the working capital requirements are going to get higher. Although the ?Furtherance of Business? being introduced is likely to provide some sort of relief.
For those who are into business need to get registered and have a GSTN number. Although those firms whose turnover is less than INR 20 Lakhs and those businesses which are run in the north eastern states whose turnover is less than INR 10 Lakhs do not need to get registered for GST. For those who are going for registration have to tick mark on the ?voluntary registration box? while filling the registration from.
- Correcting errors
Also not many people are aware of the fact that even if some people may have made mistakes while registering for the GST, no need to panic, because you can actually correct those errors.
- Filing returns
There has also been a change in the filling of the returns that the business will be undergoing every month. This is a major confusion among the people running businesses related to the filling of the return.
- Stock transfer
The stock transfer is also different from what it used to be in the previous indirect tax regime to what it is now in the GST. Under the GST, the interstate stock and the interstate stock transfer are dealt differently.
Thus the GST has brought quite a lot of changes when it comes too taxed especially in the field of business. The above mentioned details are a few things that one must be well aware of before taking any step.