Saturday, July 8, 2017

A concise study on GST

GST is an indirect tax that subsums Central and state taxes  and it will make India a unified market. GST is a single tax on supply of goods and services to replace the multiple taxes at various points.

After the implementation of GST you don't have to pay central excise duty, additional excise duty, service tax, additional customs duty, special additional duty of customs, state value added tax, entertainment tax, purchase tax luxury tax, taxes on lottery betting and gambling etc.

The main purpose of GST is to curb tax evadion in a country where small traders businesses routinely evade tax by not creating invoice for goods sold.

GST is expected to be as disruptive as the recent demonetization move, which was touted as a drive against black money but ended up hurting the country's growth in the final quarter (it fell from 7.1 to 6.1 percent) of financial year 2016-2017.

Friday, July 7, 2017

Freedom from maintaining too many records under GST, one record is enough

1 .compliance verification in GST will be done through examination of accounts and records maintained, only is required.
2. One tax, one type of Record -no need to maintain separate records for different types of taxes as in the era of vat  excise and service.

3. There will be freedom to choose the format of the accounts and records, and only information needed is prescribed . The records can take the form of paper based source documents including computer printouts or Digital.

4. The required records are:-

a) all records of goods and services that a person supplies receives in the course of his business.

b) All records of goods imported

c) any other supporting documents such as contracts and price quotation
to show his liability to GST.

5. Records can be maintained in electronic format as well.

6. Where are certain class of taxable persons cannot keep and maintain records as prescribed, the Commissioner may permit  them to maintain records otherwise as prescribed.

7. Taxable persons with turnover of less than 2 crores are not required to get their accounts audited or submit reconcilation statement with annual returns.

8. Simple records to be kept by agents, Transporters and warehouse keeper:-

Agents:- A person working as an agent is required to maintain records depicting the description, value and quantity of goods or services received or supplied on behalf of principle, and details of accounts furnished to every principal .

Transporters:- A person engaged in the business of transporting goods is required to maintain simple records of goods transported and delivered, and goods store in transit by him.

Warehouse keeper:- a person operating a warehouse or godown is required to keep records with respect to the dispatch, movement, receipt, disposal and period for which the goods remain in the warehouse or godown.

Employment News 8-14 2017