4 Things You Should Know About GST

Business firms generally deposit custom duty taxes other than income tax, like excise duty, service tax and value added tax. These multiple taxes also known as the indirect taxes are now replaced by a single tax, called GST. It is the most talked about topic of 2017, from teenagers to senior citizens. Earlier business firms would deposit many types of taxes such as excise duty, service tax and VAT. Now all these taxes have been replaced by a single tax called Goods & Services Tax. It’s not only made it easy to file taxes, also it has completely revamped the way indirect charges are imposed. Make sure you know what’s to be done and where, so that you file your GST correctly and on time. Here are 4 things you need to know about this tax. When is GST Enacted? GST is imposed only on the supply of goods and services. Supply can be taken in different forms like – exchange, transfer, barter, rental, lease, agent supply. If you are engaged in any of the above, all the taxes paid will be replaced by GST on your supply. There are, however, some goods and services which do not have GST applicable on them such as liquor and petroleum goods. So the first initial step for you is to analyze whether your business comes under the GST List or not. GST Categories If the business is making a supply, it is important to note if it is interstate or intrastate. If the good or service is made in one state and delivered in another, then it will be declared as interstate. For an interstate, you need a mandatory GST registration and the tax will depend on the destination state. Therefore GST also has a synonym, called “Destination based tax”. If the goods are to be sent outside India, no GST tax is implied on it, however registration is compulsory. 4 Things you should know about GST Getting Ready for GST If you are currently registered for value added service tax, Excise duty and other such taxes, then GST registration is a must. You can get the GST forms on leading financial websites, online. You don’t need to file it if your annual turnover is less than 20 Lakh. If you are based in a North-East state, then the limit is till 10 Lakh. Applicability of GST If you are a manufacturer, GST is a boon for you as you can benefit from the adjustment of the tax paid on the input goods against the output goods. But GST is imposed both, by state as well as by the central government. The taxes will stream towards the states which will consume the goods and services. Medical services and educational services were not taxed under service tax, therefore they won’t be taxed under GST as well. Many financial platforms and forums are discussing and promoting awareness on GST. If you have a business background or you are a Finance Professional, you should participate at such knowledge sharing platforms for more upcoming news and to keep yourself updated. One such Platform which has gained momentum recently, is ProfsIndia, a legitimate source for your daily economic and financial updates. Explore the new face of professionalism.

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