Loading…
Loading…
Deep dives and practical guides written by the WFYI team.
Comprehensive explanations, FAQs, and updates about GST regulations, returns, and compliance.
This article clarifies the format and purpose of Form GST PMT-02, the electronic credit ledger, in the Indian GST system. It explains how registered taxpayers use this form to track their utilized and available Input Tax Credit, including provisional ITC details applicable until December 2021 and information on mismatches. The content also provides a practical example to illustrate how ITC is managed and adjusted within the ledger for various tax components.
This comprehensive guide clarifies the purpose and application process for GST refund forms, specifically RFD-01 and the now-obsolete RFD-01A. It details eligibility criteria, various refund scenarios, essential prerequisites, and the required documents for filing. The article also explains the calculation of refund amounts and outlines the post-submission procedures, including the role of GST officers in sanctioning refunds.
India's Goods and Services Tax (GST) system includes four primary components: CGST, SGST, IGST, and UTGST, applied based on whether a transaction is intrastate or interstate. CGST and SGST/UTGST are levied on intrastate supplies by central and state/UT governments respectively, while IGST applies to interstate supplies, imports, and exports, with revenue shared. This comprehensive article explains the applicability, examples, and the rationale behind these distinct GST types, along with their input tax credit utilization rules.
The GST Council has finalized most tax rates, but several critical areas still require clarification for businesses. Key concerns include the status of existing state-level tax holidays for manufacturers, the proposed single tax rate for services, and the impact of changes to abatements and exemptions under the previous excise regime. While the Finance Minister assures no inflationary impact and a reduction in overall tax burden, further guidance from the GST Council is essential for a seamless transition.
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.
Gross Domestic Product (GDP) is a key metric for evaluating a nation's economic performance and capacity, influencing societal factors like employment and poverty. This article explores the concept of GDP, its various classifications such as Real and Nominal GDP, and detailed calculation methodologies including the expenditure, output, and income approaches. It also highlights India's GDP projections for 2025-26 and discusses the inherent limitations of GDP as a sole indicator of overall societal well-being.
This article clarifies how businesses previously unregistered for excise duty can claim CENVAT credit upon registering under the Goods and Services Tax (GST) regime. It outlines two scenarios: one where proof of excise duty payment is available, allowing a 100% claim under specific conditions, and another where such proof is absent, permitting a partial credit claim (40% or 60% of GST) for a limited period. The guidance covers necessary documentation, eligibility criteria, and the process for availing input tax credit during the transition to GST.
The impending implementation of GST is expected to cause a reduction in excise duty collections as dealers delay purchasing new stock. Uncertainty regarding final GST rates and transition provisions has led businesses to adopt a cautious 'wait and watch' approach. This prudence is projected to negatively impact excise revenue during the April-June quarter, according to insights from professional services firms.
This article clarifies the concept of exempt supplies under India's Goods and Services Tax (GST) framework, differentiating them from nil-rated, zero-rated, and non-taxable supplies. It explains the conditions under which exemptions are granted, their classification, and the implications for Input Tax Credit (ITC) reversal. The piece also details the process for determining ITC attributable to exempt supplies and outlines the 'negative list' of non-GST transactions.
Initial announcements from the GST Council suggested a reduction in economy airfares. However, the aviation sector is now contemplating increasing ticket prices. This adjustment aims to offset higher operational costs, including additional taxes on imported spares and aircraft lease rentals under the new GST framework, impacting the industry's already slim profit margins.
This article serves as a comprehensive guide for taxpayers on how to file Form TRAN-1 on the GST portal using the dedicated offline tool. It details the prerequisites for downloading the utility, along with step-by-step instructions for its download and installation. The guide further explains how to prepare data using both CSV and Excel templates, covering various sections of TRAN-1, and provides clear instructions for uploading these prepared files to the GST portal to successfully claim input tax credit.
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.