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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.
This article explores invoice matching under India's Goods and Services Tax (GST) regime, a mechanism crucial for seamless information flow between buyers and suppliers. It defines how taxable supplies are reconciled, emphasizing its importance for claiming input tax credits. Businesses must adopt robust IT systems and ensure timely compliance to avoid losing opportunities.
Businesses frequently utilize capital assets in their operations, and the Goods and Services Tax (GST) paid on these assets can often be claimed as input tax credit (ITC). This article clarifies the regulations governing ITC for capital goods, distinguishing them from other inputs. It details how to calculate and claim common credit when assets are used for both business and personal or exempted purposes, alongside rules for ITC reversal under specific scenarios.
This article clarifies the principle of document presumption in GST legal proceedings. It details the types of records acceptable as evidence and explains how various documents, including digital and physical copies, are treated in court. The content emphasizes that submitted documents are considered true until proven false, placing the burden of disproof on the taxpayer.
This article elucidates the concept of common credit under GST, which arises when inputs and services are utilized for both business and personal or exempted purposes. It highlights the importance of accurately segregating eligible Input Tax Credit (ITC) to avoid claiming credit on non-business or exempted activities. The piece provides a detailed, step-by-step example for calculating and reversing common credit, explaining how different types of supplies impact the final claimable ITC. Furthermore, it clarifies the implications of these calculations on annual GST returns, including potential refunds or interest liabilities, emphasizing the necessity of strict compliance with common credit regulations.
Recent revisions to GST rates in September 2025 have significantly altered the tax landscape for furniture and its raw materials in India. These changes aim to promote sustainable and artisanal furniture by reducing their GST from 12% to 5%, while conventional wooden and metal furniture maintain an 18% rate. The adjustments offer substantial benefits for eco-conscious manufacturers and small-scale industries, leading to more competitive consumer pricing for environmentally friendly options. Accurate HSN coding remains crucial for businesses to navigate these updated tax regulations effectively and ensure compliance.
The Goods and Services Tax (GST) has notably altered India's insurance and banking landscapes, influencing premiums and transaction costs. Recent policy changes, including a GST exemption for individual life and health insurance effective September 2025, aim to improve affordability. While banking services maintain an 18% GST, this article details the specific impact on various insurance types, banking operations, and clarifies the treatment of 'No Claim Bonuses'.
This article outlines common difficulties faced during GST migration in India and provides practical solutions. It covers issues such as invalid Provisional IDs, cancelled Registration Certificates, unreceived OTPs, incorrect PAN details, range code errors, pending verification messages, missing ARNs, and unregistered Digital Signature Certificates. For each problem, the article offers clear, actionable steps to help taxpayers successfully complete their GST migration process.
The implementation of Goods and Services Tax (GST) has brought varied effects to India's entertainment industry, altering taxation for both consumers and business owners. While GST generally lowers combined tax rates compared to the previous VAT and service tax regime, its impact on consumer prices depends on the state's historical tax structure. A significant benefit for businesses is the availability of Input Tax Credit, though the potential for new municipal entertainment taxes could affect future profitability.
The Indian Goods and Services Tax (GST) framework significantly simplifies the export process by categorizing exports as zero-rated supplies, allowing businesses to reclaim input taxes while not charging GST on sales. This approach enhances competitiveness and financial efficiency for exporters. The article outlines two key methods for claiming refunds on zero-rated supplies: either by supplying under a bond/Letter of Undertaking and later claiming Input Tax Credit (ITC), or by seeking a refund of Integrated GST (IGST) paid on supplies. Additionally, it defines various 'deemed export' scenarios and lists essential documentation required for processing export refund claims.
The GST Council has enacted a vital anti-profiteering law to prevent businesses from unfairly increasing prices under the new Goods and Services Tax regime. This legislation mandates that all tax benefits, such as lower rates and Input Tax Credit, must be passed on to consumers. Businesses failing to comply face severe penalties, including registration cancellation. The measure aims to protect end-users from exploitation as GST is launched.
GSTR-3B is a monthly (or quarterly) self-declared summary GST return crucial for taxpayers to report sales, ITC, and tax liabilities. This comprehensive guide details its definition, eligibility, important due dates, and associated late fees and penalties. It also compares GSTR-3B with GSTR-1, GSTR-2A, and GSTR-2B for reconciliation purposes, helping taxpayers maintain compliance and avoid discrepancies.
This article examines the Goods and Services Tax (GST) rates applicable to India's textile sector, detailing the varying tax percentages for different products and machinery. It highlights the provisional nature of some rates and the industry's call for a harmonized 5% levy. The analysis also provides an overview of the historical tax framework for textiles and projects a reduction in average tax rates post-GST implementation, from approximately 20% to 18% for key inputs.