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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.
E-commerce platforms and online sellers in India must adhere to specific GST registration rules, including provisions for Tax Collection at Source (TCS). This guide explains who is responsible for collecting TCS, the mandatory GST registration process for e-commerce entities, and procedures for registration cancellation. It also clarifies GST registration for overseas providers of Online Information and Database Access or Retrieval (OIDAR) services, detailing what constitutes OIDAR and related compliance penalties.
The Goods and Services Tax Network (GSTN) has initiated a two-week pilot program involving 4,000 taxpayers to test its return filing process. This aims to ensure the system's readiness for approximately 80 lakh monthly filings once GST goes live. The test addresses concerns regarding the portal's capacity to handle the significant data volume from the mandatory 37 annual returns per company.
The Goods and Services Tax (GST) is slated for implementation in Jammu and Kashmir, aiming to integrate the state into the national economy despite its special autonomous status. This process requires the J&K Assembly to pass specific legislation adopting Central and Integrated GST laws. Businesses in J&K, particularly those exceeding a ₹20 lakh turnover, will need to register under GST and comply with new documentation requirements.
The GST framework in India allows taxpayers to pay their liabilities in installments under specific conditions, primarily for amounts determined by tax authorities rather than self-assessed dues. This facility is subject to commissioner approval, monthly payments, interest, and strict adherence to timelines. The article also details other crucial recovery provisions, including the voiding of property transfers meant to defraud, the prioritization of tax dues as a first charge on property, and the provisional attachment of assets to safeguard government revenue. Furthermore, it clarifies how recovery proceedings are adjusted when appeal decisions either increase or decrease the original demand amount.
The GST Council has extended the period for claiming input tax credit (ITC) on transitional stock from 60 to 90 days, addressing concerns from traders and retailers. This decision, made effective from July 1st, also introduced provisions for deemed credit on subsequent sales. Businesses will receive 30 percent deemed credit if the IGST rate exceeds 18 percent, and 20 percent otherwise. This measure aims to facilitate a smoother transition into the new GST regime for businesses holding pre-GST inventory.
India's Revenue Secretary Hasmukh Adhia expressed confidence in a smooth transition to the Goods and Services Tax (GST) regime, attributing it to the country's multi-point taxation system, which should prevent sudden inflation. He also noted that GST is anticipated to enhance the competitiveness of domestic businesses by establishing an equitable playing field. The new tax structure is expected to particularly benefit local manufacturers by providing a significant boost.
This guide details the process and requirements for individuals seeking to register as GST practitioners in India. It outlines the essential conditions, necessary qualifications, and the various duties a practitioner performs for clients, such as preparing applications and returns. The article also provides a step-by-step procedure for online registration on the GST portal and explains how practitioners can accept or reject taxpayer engagement requests.
Prior to the Goods and Services Tax (GST) rollout, many businesses deliberately decreased their manufacturing and distribution activities. This was done to allow dealers sufficient time to sell off existing inventory. The strategy also aimed to prevent additional taxation complications for goods dispatched before GST's effective date but received afterward.
As of June 2017, nearly all Indian states and union territories, including Kerala, had successfully passed their State GST (SGST) Acts. Jammu and Kashmir remained the only exception, where special constitutional powers necessitated the ratification of all GST laws before the new tax system could be implemented. This marked a significant step towards nationwide GST rollout across India.
This article clarifies how specific activities are classified as either goods or services under the Goods and Services Tax (GST) regime in India, addressing complexities prevalent in the pre-GST era. It highlights Schedule II of the GST Act, which aims to streamline the taxation of composite supplies like works contracts. The content provides a comparative analysis of works contract taxation before and after GST implementation, illustrating the simplification achieved through a unified tax approach.
The annual aggregate turnover (AATO) under GST is a crucial concept determining registration and composition scheme eligibility, calculated by summing all taxable, exempt, export, and inter-state supplies at the PAN level. This guide details AATO's definition, components, and calculation methods with practical examples for both normal and special category states. It also clarifies the distinction between AATO and 'turnover in state' for compliance purposes, providing a comprehensive overview of its relevance across various GST provisions.
This article provides a comprehensive overview of the Goods and Services Tax (GST) input tax credit mechanism in India. It explains what ITC is, outlines recent updates to its regulations, and details the essential conditions and step-by-step process for claiming it. The guide also clarifies the different types of taxes under GST and how ITC functions within this framework, helping businesses navigate their tax liabilities effectively.