My third book on GST, ‘GOOD AND SIMPLE TAX – GST FOR YOU” is now available at https://notionpress.com/read/good-and-simple-tax-gst-for-you
The Goods and Service Tax rolled out in India on 1st July 2017 subsuming a plethora of taxes into a single tax and enabling input tax credit at every stage of the supply chain, thereby making the products and services cheaper to the end consumer. The rollout of GST also improves the ease of doing business in India.
The way the business is carried out in India is undergoing a major change as the terms of manufacture, purchase, sale, and service is replaced with a single word called “Supply.” The author covers all these topics like Supply, Place of Supply, Time of Supply and Valuation with easy to understand examples so that the trade and industry can benefit at large from the same and change their business practices accordingly.
“GOOD AND SIMPLE TAX – GST FOR YOU” is a written in layman’s language and it explains the complex GST requirements in a simple and lucid language with examples.
- – CS Vasudeva Rao Devaki, DV Rao and Associates
Kindle version and e-book will be released shortly
All registered taxpayers have to file GSTR – 3B by 20th of August for the transactions related to the month of July 2017. The return is a summary return, unlike the other GST Returns which are to be filed at the transaction level. For more details on the impact visit my blog page – https://indiagstdotin.wordpress.com/2017/08/02/are-we-ready-for-the-game/
GST is rolled out from 1st of July 2017 and the trade and industry is able to adapt to the same with some teething troubles. Though all the issues are not resolved some of them are still and it takes some time to get resolved. One month has passed after the rollout of GST and now it is the time for filing of returns. The same is updated through a press release by CBEC on 18th June 2017 – http://www.cbec.gov.in/resources//htdocs-cbec/press-release/press-note-on-return-filing.pdf
As there is a delay in filing of the returns, a new form is known as GSTR – 3B has been introduced and it has to be filed by 20th of Aug 2017. The format is released by the Government. It is basically a summary of the return for the month of July 2017 for determining the net tax liability to be paid. This statement looks simple but the challenge is on a careful review of the format it is clear that there is no provision for the opening balance of the input tax credit as of 30th June 2017. The reason is the GST Tran-1 form has to be filed within 90 days from the appointed date i.e 1st of July 2017. As a result of the closing balance of the Input Tax Credit will not be available for the taxpayers to use the same for payment of taxes for the month of July 2017.
This will have a huge impact on the cash flows as the tax payers have to pay in cash without using the available input tax credit and it is going to impact the MSME sector a lot especially for taxpayers who were not eligible to take registration under Central Excise in the erstwhile regime now they have to pay CGST.
The portal for the GST i.e GST.gov.in is not having the option of filing of the GSTR – 3B as on date, that means the taxpayers have to wait for some more time for filing of the return. This time lag should be utilized by the taxpayers for renegotiating with their customer to receive the payments or at least for the tax amount. Alternatively, they have to look out for additional cash flow either through additional funding or increase their CC limits or another means. The same is likely to continue for the next month also.
Managing of the working capital is one area and another is ensuring that the data required for the return filing is also in place. GSTR – 3B is an interim return and the actual returns for GST have to be filed by 10th of September i.e, GSTR – 1 by 5th September 2017 and GSTR – 2 by 10th September 2017.
In the Final GST Returns, for the HSN Summary in GSTR – 1, the HSN codes are not mandatory for turnover upto Rs 1.5 Crs and two digits of HSN Code mandatory for turnover from Rs 1.5 Crs to Rs 5 Crs and for turnover above Rs 5 crs, four digits of HSN code are mandatory.
As per the latest GST Returns, In Table 11 B of GSTR – 1, tax invoice issued during the return filing period will be shown for which advances have been received in the previous months. It will be grouped by rate wise for the interstate and intrastate supplies.
As per Final GST Returns, in Table 6 of GSTR – 1, data for exports / deemed exports and supplies to SEZ should be shown in this table. The columns related to CGST & SGST rates and amount, tax paid on the provisional basis, HSN Code and identification of line as the supply of goods or services have been dropped. Grouping of the data is to be done on the basis of exports / deemed exports or SEZ supplies in the new returns unlike the previous formats of exports with payment of GST and without payment of GST.