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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.
The Goods and Services Tax (GST) system in India, with its new concepts, can lead to accidental incorrect tax payments. This article clarifies that taxpayers generally avoid penalties when mistakenly paying the wrong type of GST (e.g., CGST/SGST instead of IGST, or vice versa), provided the correct tax is eventually paid, with no interest charged. However, stringent provisions apply if GST is collected but not remitted to the government, regardless of the supply's taxability. In such cases, penalties and interest on late payments are imposed after a show-cause notice.
The GSTR-4 is an annual GST return for taxpayers under the composition scheme, replacing its previous quarterly filing. It outlines specific due dates, with current regulations setting the deadline as June 30th after the financial year. The eligibility for GSTR-4 is tied to the composition scheme's turnover limits, which vary for manufacturers, traders, restaurants, and service providers. Once filed, GSTR-4 cannot be revised, and late submissions incur daily fees with specific maximum limits.
The Goods and Services Tax (GST) has profoundly reshaped India's agricultural sector by fostering transparency and market integration. This tax system categorizes farm products and inputs into various rate slabs, with most unprocessed goods being exempt to maintain affordability. While GST streamlines interstate trade and offers Input Tax Credit for many businesses, it also presents challenges like increased input costs for certain machinery and compliance issues for smaller, unregistered farmers. Overall, GST aims to simplify agricultural taxation while balancing revenue generation with farmer welfare.
The real estate sector in India is concerned about potential price increases due to the Goods and Services Tax (GST). Developers fear that if an 18% GST is applied without subsuming stamp duty, overall property costs will rise significantly. The National Real Estate Development Council (Naredco) advocates for a lower GST rate of 12% for the sector to prevent adverse impacts on property affordability.
This article outlines the Goods and Services Tax (GST) implications for broadband internet services in India. It details that telecommunication services, including broadband, are subject to an 18% GST rate, a significant change from the pre-GST tax structure. The content also explains the applicability of GST based on the place of supply, clarifies the HSN and SAC codes for these services, and discusses the availability of Input Tax Credit (ITC) for internet service providers (ISPs).
This article elucidates crucial definitions and interest regulations pertaining to Goods and Services Tax (GST) refunds in India. It highlights recent budget amendments affecting refund applications and interest calculations, including provisions for the COVID-19 pandemic period and specific changes for UN agencies. The guide details various 'relevant dates' for different refund scenarios and illustrates how to calculate interest on delayed payments for both standard cases and those involving appellate authority directives.
The 2025 GST 2.0 rate reset has brought significant changes for wholesalers and retailers, introducing reduced tax slabs for many items and aiming for improved business growth. These revisions, enacted after the 56th GST Council meeting, include lower GST on various FMCG products, medicines, and vehicles. While the changes necessitate immediate adjustments to pricing and systems for businesses, they are expected to foster greater trade formalization and provide long-term benefits in pricing predictability and market consolidation.
The Research and Development (R&D) Cess, originally introduced to promote indigenous technology and regulate imports, was levied at 5% on technology imports. Despite an exemption notification aimed at reducing dual taxation with Service Tax, issues with blocked working capital persisted. The cess was deemed a burden on importers and an obstacle to the "Make in India" initiative. Its abolition under the Model GST Law provides significant relief to industries importing technology, reducing costs and simplifying compliance, with anticipated positive impacts on various sectors and consumer prices.
This article outlines the Goods and Services Tax (GST) payment process in India, detailing how registered taxpayers, excluding those under special schemes, calculate and remit their monthly tax liabilities. It explains the purpose and maintenance of the three electronic ledgers: Liability, Cash, and Credit, which are crucial for managing tax transactions. The guide also clarifies how Input Tax Credit (ITC) is utilized for tax fulfillment and highlights that interest and penalties must be paid in cash, not through ITC adjustments.
This article explains the critical procedures for inspection, search, and seizure under India's GST framework, designed to combat tax evasion. It details the conditions under which authorities can initiate these actions, the powers granted to officers, and the legal protocols involved. Key distinctions between inspection, search, and detention are clarified, alongside post-seizure processes and recent legislative updates affecting these enforcement measures.
The Goods and Services Tax (GST) in India streamlines indirect taxation into a unified system, aiming to foster a single national market. Key features include a simplified tax structure with varied rates, registration exemptions for small businesses, and a crucial Input Tax Credit mechanism to prevent cascading taxes. The system also employs digital compliance, invoice matching for transparency, and anti-profiteering measures to benefit consumers, enhancing India's competitive standing globally.
The Revenue Neutral Rate (RNR) is a crucial component of India's Goods and Services Tax (GST) framework, designed to ensure stable government revenue. This article explores how the Dr. Arvind Subramanian committee calculated RNR using macro, indirect tax turnover, and direct tax turnover approaches, yielding different percentage estimates. It also highlights the complexities of distributing RNR between central and state governments, acknowledging the challenge as both an art and a science.