What is a meaning of Goods & Services Tax (GST)?
Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that will be levied on every value addition.GST would be applicable on “supply” of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services.
It would be a dual GST with the Centre and the States simultaneously levying it on a common base. The GST to be levied by the Centre would be called Central GST (CGST) and that to be levied by the States [including Union territories with legislature] would be called State GST (SGST). Union territories without legislature would levy Union territory GST (UTGST).
An Integrated GST (IGST) would be levied on inter-State supply (including stock transfers) of goods or services. This would be collected by the Centre so that the credit chain is not disrupted.
COMPARISION BETWEEN COMPOSITION SCHEME AND REGULAR SCHEME UNDER GST
|1||RETURN||QUARTERLY RETURN Within eighteen days after the end of such quarter (GSTR-4 / 4A)||3 RETURN IN A MONTH (GSTR-1/1A, GSTR-2/2A, GSTR-3/3A)|
|2||PAYMENT OF TAX||Within eighteen days after the end of such quarter||MONTHLY on or BEFORE 20TH DAY OF NEXT MONTH|
|3||INTERSTATE PURCHASE||CAN BE MADE||CAN BE MADE|
|4||INTERSTATE SALE||CAN’T BE MADE||CAN BE|
|5||INPUT TAX CREDIT ( BENEFIT OF TAX PAID ON PURCHASE )||NOT AVAILABLE||AVAILABLE|
|6||RATE OF GST||2% IN CASE OF MANUFACTURER 5% IN CASE OF RESTAURENT 1% IN CASE OF TRADER||SPECIFIED RATE|
|7||SERVICE PROVIDER||CAN’T OPT THE SCHEME||AVAILABLE FOR ALL|
|8||IF PURCHASE FROM UNREGISTERED DEALER OR REVERSE CHARGE SERVICE||GST HAVE TO BE PAID ON SUCH PURCHASE||GST HAVE TO PAY ON SUCH PURCHASE BUT INPUT TAX CREDIT BENEFIT WILL BE AVAILABLE FOR SUCH PAYMENT|
|9||INVOICE||BILL OF SUPPLY WILL BE ISSUED||TAX INVOICE WILL BE ISSUED|
|10||IS THERE ANY MONETARY LIMIT||YES, TURNOVER SHOULD NOT BE CROSSED RS. 75 LACS IN A YEAR||-|
|11||STOCK ACCOUNT||NOT MANDATORY||MANDATORY|
|12||CENVAT CREDIT ON 30TH JUN 2017||NOT ELIGIBLE TO CARRY FORWARD, IT WILL BE LAPSE||ELIGIBLE TO CARRY FORWARD|
|13||COLLECTION OF TAX||NO TAX SHALL BE COLLECTED FROM CUSTOMER||TAX WILL BE COLLECTED FROM BUYER|
|14||AUDIT||NOT REQUIRED||REQUIRED IN CASE OF TURNOVER EXCEEDS TWO CRORE IN A YEAR|
Important Point :-
1.If you are running various business then
a. In Calculation of Rs 75 Lacs, turnover of all business will be considered b. If a business is selected for composition then all business have to opt composition scheme.
2. Manufacturers of goods who will not be eligible for Composition Levy:
a.] Ice cream and other edible ice, whether or not containing cocoa. b.] Pan masala c.] Tobacco and manufactured tobacco substitutes