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Deep dives and practical guides written by the WFYI team.
Comprehensive explanations, FAQs, and updates about GST regulations, returns, and compliance.
GST is not payable on credit notes issued without GST for sales targets, bonuses, or incentives to distributors, as they are financial/commercial adjustments, not taxable supplies under Section 15(3) or Section 34 of CGST Act. No ITC reversal is required by recipient, and no tax invoice needed from distributor, provided supplier does not reduce original output GST. Supported by MP AAR 01/2022 (Rajesh Kumar Gupta), KAR ADRG 76/2019 (Kwality Mobikes), and CBIC Circular 251/08/2025-GST.
In GSTR-3B, ITC must match GSTR-2B to avoid audit issues. Table 4(A)(5) shows eligible ITC (net of credit notes), 4(B)(1) records permanent reversals that cannot be reclaimed, and 4(B)(2) captures temporary reversals that can be reclaimed later. Correct classification and regular reconciliation prevent ITC loss, mismatches, and penalties during GST assessments.
This article clarifies the Goods and Services Tax (GST) implications for doctors and healthcare services in India. It highlights that most medical services provided by doctors and hospitals are exempt from GST, with specific exceptions such as certain hospital room charges and cosmetic surgeries. The content also details registration requirements for medical professionals, applicable GST rates for specific services and goods, and input tax credit rules. Recent advance rulings further clarify GST applicability for occupational health check-ups and dental procedures.
India's GST collections for January 2023 reached a significant Rs.1,55,922 crore, marking the second-highest total since its inception and a 24% increase year-over-year. The revenue breakdown shows substantial contributions from CGST, SGST, and IGST, including imports. This achievement, the third time collections surpassed Rs.1.5 lakh crore this fiscal year, reflects the government's efforts in policy reforms and compliance improvements, leading to higher GSTR-1 and GSTR-3B filing rates.
This article clarifies fundamental terms within India's Goods and Services Tax (GST) framework, a system that unified various central and state indirect taxes. It explains the taxes replaced by GST, defines Input Tax Credit (ITC) and its mechanism for reducing tax cascading, and elaborates on the concept of a 'taxable person' including registration criteria for casual and non-resident individuals. Additionally, it outlines the Reverse Charge Mechanism (RCM) where the recipient, not the supplier, is liable for tax payment. Understanding these terms is crucial for navigating India's transformed indirect tax landscape.
The Goods and Services Tax (GST) significantly transformed India's FMCG sector by consolidating multiple taxes into a single system, leading to anticipated benefits like reduced logistics costs and improved input tax credit availability. While many product tax rates aligned with industry expectations, some items, such as butter and dry fruits, became costlier. The transition also raised concerns among major companies regarding the continuation of existing tax holidays and exemptions. Overall, GST aimed to create a more competitive market and streamlined operations for the FMCG industry.
Under India's Goods and Services Tax (GST) law, businesses are mandated to maintain specific financial accounts and records for compliance. These essential documents include registers for goods produced, purchases, sales, and stock, along with detailed records for Input Tax Credit (ITC) availed and Output Tax liabilities. Adhering to these requirements ensures transparent financial reporting and proper tax administration.
The Goods and Services Tax (GST) introduced a unified tax structure across India, significantly affecting diverse economic sectors differently. While streamlining compliance for manufacturers, distributors, and service providers, it also brought new challenges such as Tax Collection at Source (TCS) for e-commerce. This article explores how GST has influenced key industries including logistics, pharmaceuticals, real estate, and agriculture, detailing both benefits and specific concerns for each.
Maintaining accurate accounts and records is a mandatory requirement for all GST-registered businesses in India. This article clarifies who is responsible for record-keeping, specifies the types of records and accounts to be maintained, and details the functionality of electronic cash, credit, and liability ledgers. It also outlines the retention period for these documents and explains the penalties for non-compliance, ensuring taxpayers understand their obligations under GST law.
This article provides a detailed overview of Goods and Services Tax (GST) as applied to Joint Development Agreements (JDAs). It explores the varying tax implications based on the transaction type and the agreement's execution date, differentiating between residential and commercial projects. The discussion also covers the applicable Service Accounting Codes (SAC) and the eligibility for Input Tax Credit (ITC) for various JDA scenarios.
The Goods and Services Tax (GST) in India introduces significant changes for e-commerce businesses, notably the Tax Collection at Source (TCS) mechanism. While aiming to simplify indirect taxes and create a unified market, GST also brings operational challenges, particularly concerning cash on delivery, product returns, and increased compliance costs. Interstate stock transfers will now be subject to IGST, potentially impacting MSMEs. The government is urged to create clear, industry-friendly regulations to foster growth and investment in the e-commerce sector.
This article provides a comprehensive overview of key terminology within the Goods and Services Tax (GST) framework in India. It defines crucial concepts such as 'place of business,' the intricacies of 'imports' and 'exports' for both goods and services, and the conditions for their taxation under GST. The piece also explains the 'Composition Levy' scheme for small businesses and distinguishes between 'mixed supply' and 'composite supply,' clarifying their tax implications.