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Category: GST

GST Refund Services | Application | Process | Export
GST Refund Services | Application | Process | Export

Overview of GST Refund

GST Refund- Goods and services tax is about smooth cash flow and regulatory compliance, making it easier to do business in India. To ensure this stable flow, the government must establish a barrier-free refund system. The current tax structure is very cumbersome, and national tax refunds can take months or even years.

GST provides an efficient and dynamic invoice tracking system to check and systematically monitor every transaction, which is of great help to manufacturers and exporters, especially in 100% export-oriented units or special economic zones. Due to the slow repayment process, its working capital was frozen.

The GST refund service

We have a number of associated GST refund consultant in Delhi and can help you solve the following problems:

  • Submit a reimbursement application,
  • Prepare a complete document of the reimbursement process,
  • Prepare a confidentiality statement for disclosing tax data to others,
  • All necessary certificates to the department,
  • Representative auditor on behalf of the client,
  • Follow up regularly in the department to receive reimbursement as soon as possible,
  • Any suggestions on reimbursement,

In some cases, refunds will be issued. Let’s take a closer look. 

Refund of tax credits

  1. Export goods or services to LUT/Bonds without paying GST
  2. Delivery of goods or services to FWZ units and developers to LUT/Bond without paying GST
  3. Refund of accrued temporary tax credits arising from the inversion of the tax structure, If the provisional tax rate is higher than the provisional tax rate.

IGST reimbursement for zero nominal delivery 

4. Use GSTS to pay for exported goods or services

5. Use GST to pay for goods or services to SEZ units and developers

Refunds are part of a well-thought-out export plan.

6. Export review (refundable for both the supplier and the recipient), 

Refund to UIN holder

7. Refund of taxes paid for purchases from UN agencies, embassies, etc. 

8. Return to the Correctional Services Department Canteen

Tax refund for international tourists 

9. The tax refund paid by international tourists for goods purchased in India and exported abroad when they leave India.

Other reimbursements 

10. Reimbursement based on a decision, order, order, or instruction of the Appellate Body, Court of Appeal, or any other court.

11. Refund after completion of preliminary inspection 

12. Excess portion in the electronic cash book 

13. Overpaid tax due to error or error

14. If the delivery is regarded as an interstate delivery and later proves to be a domestic delivery, pay IGST compensation on the contrary

15. When the goods or services are actually delivered, a refund of the receipt of the prepaid tax is issued

The above list is for reference only and is not exhaustive.

GST will not issue refunds until the taxpayer makes a request. They have a systematic approach. Taxpayers must apply and obtain it following the correct procedures. Refund to your bank account. 

When is the deadline for submitting a refund request?

Taxpayers must submit their application within two years from the relevant date specified in the description of Article 54 of the 2017 CGST Law. The meaning of “relevant dates” should be understood to mean that these dates are different under different circumstances, 

As described below:

S.NoSituationsRelevant Date
(a)If possible, for goods exported outside of India, refunds of taxes paid on the goods themselves or (if applicable) the inputs or services used in these goods can be refunded, 
    (i)If the goods are exported by sea or airThe date on which vessel or aircraft in which goods are loaded, leaves India
   (ii)If goods are exported through a land routeThe date on which such goods pass the frontier
  (iii)If goods are exported by postDate of dispatch of goods by the post office concerned
(b)In the case of a supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goodsThe date on which return related to such deemed exports is filed
(c)For services exported outside India, if the tax paid on the service itself or (if applicable) the intermediate or intermediate consumption used in these services can be refunded, 
    (i)Where the supply of services had been completed before the receipt of payment against such supplyDate of payment in convertible foreign exchange or in INR wherever permitted by RBI
   (ii)Where payment for the services had been received in advance before the date of issue of invoiceDate of issue of invoice
(d)If the tax can be recovered due to a decision, order, order, or order of the Appellate Body, Court of Appeal, or other CourtDate of communication of order
(e)In case of a refund of unutilized ITC arising due to ‘inverted tax structure’According to Article 39, the reimbursement period expires during the period in which the reimbursement occurs.
(f)In the case where tax is paid provisionally under this Act or the rules made thereunderThe date of adjustment of tax after the final assessment thereof
(g)In the case of a person, other than the supplierThe date of receipt of goods or services by such person
(h)In any other caseThe date of payment of tax

These respective data consider because any negligence in submitting a redemption request within the specified time frame may result in unnecessary freezing of funds.

What is the GST refund process? 

1. Any taxpayer must use form GST RFD-01 to apply for a refund. After submitting the form in the GST RFD-02 form, a confirmation of further use generates and sent to the applicant via email and SMS.

2. If the system detects an error in the refund request, reported it within 15 days. The responsible officer issues the GST RFD03 form (defect memorandum) to the applicant and points out the problem through the shared portal requested electronically. Submit a new reimbursement request after these deficiencies are remedied.

3. After reviewing the application and submit evidence, and determining that the required compensation amount should attribute to the applicant, the person in charge issues a preliminary compensation order from GST RFD04, in which the compensation for the designated applicant, temporarily canceled within 7 days from the date of receipt of the confirmation letter.

4. The authorized amount on the GST RFD05 form charge electronically to one of the bank accounts specified by the applicant in their registration details and refund request. 

5. If you find the attachments in order, please fill in GST RFD06. Refunds must be approved in all aspects within 60 days of receipt of all claims. In the case of delayed approval, the interest rate is @6% p.(As currently communicated) must be paid under section 56 of the 2017 CGST Act. 

Can I refuse a refund?

If the person in charge believes that the complaint is inappropriate or not paid to the complainant, he must provide the complainant with the GST RFD-08 form within 15 days after receiving the claim and request a response on the GST RFD-09 form. notify. After reviewing the applicant’s response, the office can accept or reject the return request and approve the order accordingly. 

Is there a minimum return threshold?

If the refund amounts below 1,000 rupees, no refund to the applicant. This restriction applies to all tax authorities (not the total tax). When the excess credit returns in the cash account book, the limit do not apply.

ApplicantRefund claimedAdmissibility
Mr. ACGST: Rs 900 + SGST Rs 900Refund inadmissible – as limit shall be applied for each tax head separately and not cumulatively
Mr. BIGST: Rs 1200Refund admissible fully

What evidence needed to avoid disclosing tax information to others to apply for a refund?

In addition, the documents need to prove the approval of the tax 

(i) When the amount of the refund request is less than 200,000. There are enough people to process reimbursement applications. 

(ii) A certified public accountant must be provided for reimbursement requirements of 200,000 or more. However, no prior declaration/certification requires in the following cases: 

(a) Refund of tax paid

Exports of goods and services, or inputs or services used to perform these exports 

(b) Reimbursement of unused ITC under Article 54(3); 

(c) For incomplete or partial supply and no invoices or receipts Rebates paid for the supply of return receipts; 

(d) Refunds of taxes paid on transactions that treat them as domestic deliveries but later treated as interstate deliveries, or, conversely,

(e) Taxes or interest borne by the declared group of applicants.

The process itself is tedious, and if done correctly, the rewards can be very simple and straightforward. This will change the face of the long-term cost recovery process and promote the manufacturing or export industry. Refunds that use to take years can now complete in just 60 days. The powerful IT system GSTN actively supported this on-site event.

If you want to get started with GST Refund Application, reach out to Chartered Accountants from CA in Delhi‘s homepage

Registration of Online homemade food business
Registration of Online homemade food business

Overview: Online homemade food business

Registration of Online homemade food business, If cooking food is your passion, now is the best time to turn your passion into a mature career. Turn your hobby into a profitable business by selling homemade food in the comfort of your home.

Online homemade food business, shopping at home?

In this article, we will reveal the secrets of successfully starting a grocery store at home, highlighting the different permits you need to obtain and other legal requirements you need to meet to get started.

Register with FSSAI? 

When you sell homemade food online, you need to make sure that people trust your business. Obtaining an FSSAI license is the easiest way to gain credibility and trust. FSSAI registration proves to your customers that you comply with the highest quality and hygiene standards when preparing food at home. You can provide your FSSAI registration number on the online portal used to sell groceries to assure your customers that you will not jeopardize their safety.

Do I need to register with FSSAI to sell homemade food online? 

According to the Food Safety Act 2006, all food operators in India must be registered with FSSAI. Therefore, if you want to sell homemade food online in India, you need to register with FSSAI. If you are a small-scale business, you only need to register with FSSAI. If you want to operate a large-scale business, you need a license.

FSSAI license or registration is also subject to company bills. The three options for people who wish to sell homemade food online are as follows: 

  • If the annual bill is less than 12 lakh, please use Form A to register. 
  • The government permit is billed annually on Form B: find 12 to 20 lakh.
  • Obtained a central license through Form B, with annual sales exceeding 20 lakh. 

If the restaurant operates in multiple states, the headquarters must also purchase additional central licenses. However, in most cases, the homemade grocery store is a small local business and only requires FSSAI registration. Documents required to obtain an FSSAI license. 

Documents that may be required to obtain an FSSAI license:

  • Form A/Form B duly filled out and signed.
  • 2 Passport size photo.
  • The PAN card of the alleged owner.
  • Confirm the venue address.
  • Certificate of Registration/Articles of Association or Articles of Association
  • Grocery List Form
  • Declaration form
  • Authority letter
  • Form IX: The Board resolution

How to open an online grocery store:

  1. Before starting such a business, you must first conduct a market analysis to understand exactly what to do and how to sell. And look for ways to position yourself as a tool to fill this gap by making it your unique selling proposition.
  2. you need to find local sellers and suppliers who can help you ship groceries at competitive prices. Develop brand-specific packaging and labeling systems to differentiate you from the competitors.
  3. Then register your grocery store with FSSAI.
  4. If you want to expand your activities in the future, you will need to register for consumption tax, as this may exceed the tax exemption limit.
  5. Before proceeding, please consult your local health department and community for more information about legal requirements.
  6. Cooperate with other food e-commerce platforms, or you want to deliver it yourself. If you want to use the platform, please register on their portal and complete the verification process.
  7. Otherwise, you need to set up your website or application to accept orders. Create a website and publish your menu and product prices. To determine competitive food prices, compare your products with those of competitors by analyzing the market.
  8. If you want to choose online payment instead of the cash on delivery option, you may also need to work with payment platforms to ensure smooth transactions.
  9. First, establish a good reputation for customers and provide them with discounts and offers to spread your message about yourself.
  10. Remember to be creative in branding and marketing. Finally, you should continue to develop innovative marketing strategies to help you grow your brand and business organically.

Important considerations when opening an online grocery store at home:

  1. FSSAI licenses are valid for one to five years. According to FBO regulations, all family catering companies must apply for an extension at least 30 days before the license expires. If they fail to complete by the deadline, they will have to pay a fine of ₹100 for each day of extension. Therefore, all online food companies need to track the expiration date of their licenses.
  2. If the authorities discover that a food company is not registered with FSSAI or does not comply with its conditions, there is a risk of serious legal consequences. Unlicensed work can result in imprisonment or a fine of up to 5 lakh. Selling low-quality food can be fined up to 5 lakh.
  3. If you want to expand your grocery store in the future, registering may help. In this case, it is best to register as a sole proprietorship, LLP, or partnership.
  4. India’s food safety laws are slightly different. Therefore, it is best to contact a local prosecutor with experience in municipal regulations. This is necessary so that you can meet all requirements.
  5. In some cases, you may need another license to open a grocery store. The following are some of the licenses you may need:
  • Shops and Establishments Act license
  • Trade license
  • NOC from fire brigade, police, municipality, and society
  • Eating house licence and signage licence
  • Environmental clearance

If you want to get started with an Online homemade food business, reach out to Chartered Accountants from CA in Delhi‘s homepage

How to Register a freelancer’s business
How to Register a freelancer’s business

Register a freelancer’s business and Know about Legal requirements

Are you looking to start a career as a freelancer? You are at the right place. This post will help you guide how you can register a freelancer’s business. We understand your dream is to follow your passion and be a master of your schedule. But at the same time, you must also need to consider the legal requirements for freelancers in India. You might be having a lot of questions, confusion about how to get started, legal requirements, business requirements. But don’t worry, this post will cover up all.

Freelance Registration and License in India

If you are starting up as a freelancer, you do not need to mandatorily register a business until your work reaches a certain turnover limit. You can continue to work as a freelancer, with your existing PAN number, if your annual freelancer income is not more than 20 lacs per year. TDS (Tax Deducted at Source) process on your PAN card and included in your income tax.

In other words, If your annual income is less than 20 lacs, you can be freely Freelancing in India, but for various business reasons, still a good option to get yourself register as a proprietor with a mere GST Registration. If you require any assistance with GST Registration, our team will be happy to help you out. You can choose from a list of Chartered Accountants from our homepage.

Once your business register under GST, you can open a current account on behalf of your business and issue a receipt If you want to accept payment of more than 10 Lack rupees.

Additionally, the benefit of getting GST Registration is that you can claim your input tax credit of GST for business-related expenses (like laptop expenses, furniture, appliances, etc.)

Freelancer’s tax In India (Goods and Services Taxes and Income Taxes)

Like any other individual, freelancers are also suppose to pay taxes according to government regulations.

GST for freelancers

If a freelancer earns more than 20 lakh per year (in all states except the northeast of India), GST registration may be required. You must pay a GST of 18% (in most cases) for any income from professional services (mainly done online). For states in northeastern India, the limit is 10 lakh per year. For most professional services, the tax rate is 18%, but there may be exceptions for service fees,

Freelance income tax 

India’s income tax law stipulates that any income a person earns through the exercise of skills consider a professional income, and self-employment income is the sum of all income you receive from your customers, So is, therefore, taxable income beyond a slab.

For Freelancer, income not exceeds 2.5 lakh will not tax. Income from 2.5 lakh to 5 lakh rupees is tax at a rate of 10%. 5 to 10 lakh to 20% and above 10 lakh to 30 percent. Freelancers can use Form ITR 4 when submitting tax returns.

You can use the Form 26 AS associated with your PAN number to help you find all detained TDS. As a self-employed person, you may also need to pay taxes in advance. Withholding tax is the frequent payment of taxes in a given year, rather than one tax payment in a given year. 

According to Article 80 of the Income Tax Law, self-employed individuals can reduce tax expenditures by more than 1.5 lakh. That is when you invest a certain amount of money in tax-saving tools.

Freelance Contract:

One of the biggest challenges in a freelancer’s life is getting payments. Disputes arise when expectations do not match, so be clear and a complete contract must establish. The scope of work and payment terms mutually agree, negotiated, and formulated. Clearly state your presence in the contract.

As Register a freelancer’s business, you should consider some of the items in the contract.

  • Remuneration: the agreed amount to be paid after the work completed.
  • Deadline: The deadline set by both parties.
  • Scope of work: Define the type of activities of the self-employed person during the contract period. 
  • Additional service: payment terms freelancers set default payment terms for each extra effort.
  • Late payment terms: Freelancers can charge interest rates or set different deadlines (this is very important because some customers do not pay during this period). 
  • Advance payment: This clause allows freelancers to charge a certain fee in advance.
  • Termination: The customer can choose to terminate the contract. 
  • Confidentiality: During the term of office, freelancers are not allow to transfer vacancies to third parties.
  • Privacy: Shows the relationship between clients and freelancers. 

The following are the main points to include in your Freelancer’s contract:

  • Scope or purpose of work,
  • Contract period, termination and start of the validity period, timetable
  • Payment method 
  • Verification of basic information

Mainly, based on the effective considerations of Article 2 (d) of the Indian Contract Law of 1872,

If you want to start with Register a freelancer’s business, reach out to Chartered Accountants from CA in Delhi‘s homepage

Legal regulations and compliance for freelancers in India
Legal regulations and compliance for freelancers in India

Overview: Compliance for freelancers

As a freelancer, it is simple to place the legal and accounting compliance for freelancers at the backburner, However, being a freelancer isn’t simply being a free or independent self-hired worker, but it also means you have a commercial enterprise running along you. To emerge as a successful entrepreneur, it’s very critical to maintain the quality of the services or products you provide and most significantly the way you organizeit and all you need to comply with. Here are some essential compliances you should keep in mind while running a freelancing business.

Accounting and Taxation Compliance for Freelancers:

Not only professionals running Under Trade Name, But Freelancers are also required to follow certain compliances. Most critical of it is to File Income Tax Returns under Section 139 of IT ACT.

Section 44AA of the Income Tax Act calls for that anyone who’s into the career of law, medicine, architecture, engineering, accountancy, technical consultancy, indoors designing, legal representative, movie artist, organization secretary, and records technology, are mandatorily required to maintain books of accounts.

Rule 6F gives for files always maintained. According to it The books of bills consist of the coins book, journal, ledger, carbon copies of serially numbered payments, unique payments of prices incurred, and price vouchers for petty prices incurred for the year.

The others are required to preserve it simplest if their Income from the commercial enterprise/career exceeds Rs.2.5 lakhs for Financial Year 2017-18 (Earlier it was1.2 Lakhs).

With the creation of the Negative List in Service Tax in Finance Act 2012, all of the offerings cover withinside the negative listing are exempt from Service Tax. This has widened the scope of the Service tax net significantly because the those offerings now no longer covered withinside the negative listing are ​taxable.

As for services now no longer stated in Negative List as I.T. Services or engineering/ technical offerings are taxable and, you’re in charge to:

  • Register yourself if gross receipts or aggregate value of the taxable service in a financial year exceeds nine lakh rupees.
  • Compulsorily charge service tax on payments raised on customers as soon as the aggregate value of the taxable service in a financial year exceeds 10 lakhs rupees.

A Freelancer can also declare deductions much like the ones of professionals. To declare deductions or even to run a commercial enterprise you want to incorporate.

Legal Entities a Freelancer can pass for: 

To assist you to decide on which entity freelancers, here’s a short evaluation of common business entities in India. The legal guidelines of Each nation are distinctive, so far encouraged to seek advice from a legal professional so he or she will be able to recommend current regulations and policies of the nation earlier than you are making a decision.

If you want to connect to a professional, you can reach out to Chartered Accountants on CA in Delhi ‘s homepage

Sole proprietorship:

The simplest and the most common entity for a freelancers work is a sole proprietorship. It is a person walking his/her commercial enterprise. It calls for very less hassles and much less paperwork. As a sole proprietor, you can name your business, as per your preference, and freely advertise about it. Additionally, if you wish to restrict others from using the name, you may also opt for Trademark Registration

Partnership Firm / LLP: 

When two or more people collaborate into a business, they can go ahead with a partnership firm, which can be register or unregistered. Usually, no government filings ( other than few tax registrations) are required to form a partnership firm, however, it’s far more secure for partnersto have a written settlement amongst themselves if you want to keep away from future disputes on people roles and duties or division of profits and losses. LLP introduced in 2008, is an improved version of a general partnership.

It offers promoters a useful gain of limited liability & the business enterprise could have continuous existence, The business enterprise must integrate via the Ministry of Corporate Affairs. Not even audited annual returns are required to be submitted with MCA.

One Person Company:

OPC is recently introduced enhanced version of the sole proprietorship firm registration. This offers the promoter a useful gain of limited liability & the business enterprise could have continuing existence. OPC integrate via the Ministry of Corporate Affairs. Not even audit annual returns are required to be submitted with MCA. The business enterprise can nominate some other person as a director without executive powers.

Conclusion: Compliance for freelancers

Potential threats revolve around the business not just from the competitors but also the governments in the form of penalties due to non-compliance. Thus with the aid of using complying with Legal and Accounting Compliance for Freelancers, you could keep each time and money on the later stage and We at CA in Delhi have evolved a scientific procedure to get your legal and accounting compliance achieved seamlessly, We don’t speak jargon we preserve a general stage of transparency in delivering our work.

If you want to get started with compliances for freelancers, reach out to Chartered Accountants from CA in Delhi‘s homepage

Advance tax In Delhi, Due Date| Calculation | Slabs
Advance tax In Delhi, Due Date| Calculation | Slabs

Overview About the Advance tax and Advance tax In Delhi

Advance tax In Delhi works on ‘Pay as you earn’ principle.

If your tax liability in a financial year exceeds Rs 10,000, then the government gets very excited and can’t wait till year-end to collect tax. It asks you to pay tax in advance

It receipts help the government to get a constant flow of income throughout the year so that expenses can be incurred rather than receiving all tax payments at the end of the year. For instance: if your advance tax liability for the financial year 2011-12 has exceeded Rs. 10,000, you are expected to pay it in FY11-12 itself.

Advance tax In Delhi, due dates: Who should file it?

If you are a salaried employee, you need not pay it as your employer deducts tax at source (TDS). It is applicable when an individual has sources of income other than his salary. For instance, if an assessee earns income via capital gains on shares, interest on fixed deposits, winnings from lottery or races, capital gains on house property besides his regular business/salaried income then after adjusting for expenses or losses he needs to pay advance tax.

Please note that advance tax is payable even by salaried employees on their other income.

While employers deduct TDS on salaries, advance tax is paid on income that is not subject to TDS. Professionals (self-employed) and businessmen will have to pay taxes in advance as, given their business income, the liability can be huge. The same implies to companies and corporates.

Payment of Advance tax In Delhi: Self employed and businessmen

Due date of installmentAmount payable
On or before 15th SeptemberNot less than 30% of the tax liability
On or before 15th DecemberNot less than 60% of the tax liability
On or before 15th March100% of the tax liability

Payment of advance tax: Companies

Due date of installmentAmount payable
On or before 15th JuneNot less than 15% of the tax liability
On or before 15th SeptemberNot less than 45% of the tax liability
On or before 15th DecemberNot less than 75% of the tax liability
On or before 15th March100% of the tax liability

Advance tax has to be paid on the 15th of September, December and March— in instalments of 30%, 30% and 40%, respectively—for self employed and businessman. Companies need to pay it on the 15th of June, September, December and March.

How to file it? 

Individuals may pay advance tax using tax payment challans at bank branches authorised by the Income Tax (I-T) Department. It can be deposited with the Reserve Bank of India, State Bank of India, ICICI Bank, HDFC Bank, Indian Overseas Bank, Indian Bank, Allahabad Bank, Syndicate Bank, Axis Bank, Punjab National Bank, Punjab & Sindh Bank and other authorised banks. There are 926 branches in India that can accept tax payments. Individuals may also pay it online through the I-T department or the National Securities Depository.

If you miss the deadline

If you fail to pay or the amount you’ve paid is less than the mandated 30% of the total liability by the first deadline (15 September), you will need to pay an interest. This is computed @ 1% simple interest per month on the defaulted amount for three months.

The same interest penalty would apply if you fail to pay the second deadline (15 December). Failing to pay the third and last deadline (15 March) would mean paying 1% simple interest on the defaulted amount for every month until the tax is fully paid.

What if tax paid is more than required?

If the amount paid is higher than the total tax liability, the assessee will receive the excess amount as a refund. Interest @ 6% per annum paid by the Income Tax department to the assessee on the excess amount if the amount is more than 10% of tax liability.

For any queries, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.

Advance Tax Due Date | Calculation | Slabs
Advance Tax Due Date | Calculation | Slabs

Overview About the Advance tax and Advance Tax Due Date

Advance tax works on ‘Pay as you earn’ principle.

If your tax liability in a financial year exceeds Rs 10,000, then the government gets very excited and can’t wait till year-end to collect tax. It asks you to pay tax in advance

It receipts help the government to get a constant flow of income throughout the year so that expenses can be incurred rather than receiving all tax payments at the end of the year. For instance: if your advance tax liability for the financial year 2011-12 has exceeded Rs. 10,000, you are expected to pay it in FY11-12 itself.

Advance tax due dates: Who should file it? 

If you are a salaried employee, you need not pay it as your employer deducts tax at source (TDS). It is applicable when an individual has sources of income other than his salary. For instance, if an assessee earns income via capital gains on shares, interest on fixed deposits, winnings from lottery or races, capital gains on house property besides his regular business/salaried income then after adjusting for expenses or losses he needs to pay advance tax.

Please note that advance tax is payable even by salaried employees on their other income.

While employers deduct TDS on salaries, advance tax is paid on income that is not subject to TDS. Professionals (self-employed) and businessmen will have to pay taxes in advance as, given their business income, the liability can be huge. The same implies for companies and corporates.

Payment of advance tax: Self employed and businessmen

Due date of installmentAmount payable
On or before 15th SeptemberNot less than 30% of the tax liability
On or before 15th DecemberNot less than 60% of the tax liability
On or before 15th March100% of the tax liability

Payment of advance tax: Companies

Due date of installmentAmount payable
On or before 15th JuneNot less than 15% of the tax liability
On or before 15th SeptemberNot less than 45% of the tax liability
On or before 15th DecemberNot less than 75% of the tax liability
On or before 15th March100% of the tax liability

Advance tax has to be paid on the 15th of September, December and March— in instalments of 30%, 30% and 40%, respectively—for self employed and businessman. Companies need to pay it on the 15th of June, September, December and March.

How to file it? 

Individuals may pay advance tax using tax payment challans at bank branches authorised by the Income Tax (I-T) Department. It can be deposited with the Reserve Bank of India, State Bank of India, ICICI Bank, HDFC Bank, Indian Overseas Bank, Indian Bank, Allahabad Bank, Syndicate Bank, Axis Bank, Punjab National Bank, Punjab & Sindh Bank and other authorised banks. There are 926 branches in India that can accept tax payments. Individuals may also pay it online through the I-T department or the National Securities Depository.

If you miss the deadline

If you fail to pay or the amount you’ve paid is less than the mandated 30% of the total liability by the first deadline (15 September), you will need to pay an interest. This is computed @ 1% simple interest per month on the defaulted amount for three months.

The same interest penalty would apply if you fail to pay the second deadline (15 December). Failing to pay the third and last deadline (15 March) would mean paying 1% simple interest on the defaulted amount for every month until the tax is fully paid.

What if tax paid is more than required?

If the amount paid is higher than the total tax liability, the assessee will receive the excess amount as a refund. Interest @ 6% per annum paid by the Income Tax department to the assessee on the excess amount if the amount is more than 10% of tax liability.

For any queries, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.

GST Registration | Limit | Documents Required | Process | Fees
GST Registration | Limit | Documents Required | Process | Fees

What is GST?

GST is an indirect tax that has replaced all the prevailing indirect taxes suitable until now. It is mainly a mixed form of all the other taxes which will cater for a single and streamline the method. After the introduction of GST, it essentially gives the thought of ‘One nation one tax’.The taxes are taxed at a single rate. The whole amount or accumulation, then divided between both Central and State governments in the title of CGST and SGST or IGST. This article will guide all about GST Registration

Who needs GST Registration?

  • Any business entity whose aggregate turnover in a financial year exceeds Rs 40 lakhs (Rs 20 lakhs for special category states in GST).
  • Note-This clause does not apply if the entity is only dealing in supply of goods/services which are exempt under GST,
  • Every entity registered under an earlier law of taxation (i.e., Excise, VAT, Service Tax, etc.) needs to get register under Goods and Service Tax.
  • Any entity or supplier dealing in inter-state supply of goods.
  • Casual taxable person
  • A tax-payer under the reverse charge mechanism
  • Input service distributor and its agent
  • E-Commerce operator or aggregator*
  • Non-Resident taxable person
  • Agents of a supplier
  • A Person who supplies through E-commerce aggregator.
  • Entities who are providing online information, acquiring database, or retrieval services from a place located outside India to a person in India, other than a registered taxable person

Certain businesses must file under GST. Carrying out business without filing is a crime and can lead to hefty penalties.

What are the Types of GST in India?

For GST administration, a model designed where the government (Central and State) have powers to impose and collect taxes through their respective legislations.

The Types of GST are Central GST, State GST, Integrated GST, and Union Territory GST. The details are given below:-

  • Central GST: CGST imposed a tax on the Intra State supplies of goods and services by the Central Government. When the place of the seller and the buyer is in the same state it is termed as an Intra-state supply of goods or services. A seller to collect both CGST and SGST in which CGST remains with the Central government while the SGST collected by the State government.
  • State GST: SGST is the tax levied on the Intra State supplies of goods and services by the State Government.
  • Integrated GST: Integrated GST govern by the IGST Act, the seller collects IGST from the buyer, the tax collected, divided between the Central and State Governments.
  • Union Territory GST: Union Territory GS applicable when any goods & services used in (UTs) of India, the revenue collected by the government of the union territory.

What are the Constituents of GST?

  • Registration Number
  • Legal Name and Constitution of business
  • Trade Name
  • Period of validity
  • Types of taxpayer
  • Date of Liability
  • Signature of the applicant

What is the Structure of 5 Slabs Under GST?

GST regimes are made by considering all the layman and inflation rates in mind. To make it simpler and easier, the GST is structured following the four tiers structure. These four zones are given below, which are as follows-

  • Zero Rates: Zero rate tax means – nil tax to apply on the goods and/or services.
  • Lower Rate: Lower tax rate determines the 5% tax rate applied on the CPI (Consumer Price Index) basket & mass consumption.
  • Standard Rate : Standard rate includes 12% & 18% of the tax rates.
  • Higher Rates: Higher rates tax includes 28% of the tax rate under GST Regulation.

What are the Benefits of GST Registration

  • Simplifies Taxation Services : GST has combined a number of indirect taxes under one umbrella and integrated the Indian market.
  • Reduction In Costs Of Products & Services: With the introduction of GST, the cascading effect of a series of VATs, taxes erased which has resulted in the reduction of the cost of goods and services.
  • Helps In Avoiding Lengthy Taxation Services : GST Registration helps the small businesses in avoiding the lengthy taxation services. As the service providers with a turnover of less than 20 lakhs and goods provider with a turnover of less than 40 lakhs are exempt from paying the GST.
How to claim gst input credit
  • Aimed At Reducing Corruption And Sales Without Receipts: GST, introduced with an aim of reducing corruption and sales without receipts. Also, it helps in reducing the need for small companies to comply with various indirect taxes.
  • Uniformity In Taxation Process : GST Registration brings uniformity in the taxation procedure and allows centralized registration. This helps the businesses to file the tax returns every quarter through an online process.
  • Minimizing Tax Evasion: With the introduction of GST, tax evasion minimized to a great extent.
  • Higher Threshold For Registration: Earlier, in the VAT system, any business with a turnover of more than Rs 5 lakh was liable to pay VAT in India. The in-Service tax exempted service providers with a turnover of less than Rs 10 lakh. In the GST, the regime Threshold increased to Rs 20 lakh for a lot of small traders, service providers.
  • Composition Scheme For Small Businesses : Under GST, small business under turnover of Rs 20 to 75 lakh can benefit as it gives an option to lower taxes by using the Composition scheme. This move has brought down the tax and compliance burden on many small businesses.
  • Simple And Easy Online Procedure: The complete process of GST (from registration to filing returns) done online, and it is super simple. This has been advantageous for start-ups mainly, as they do not have to run from pillar to pillars to get diverse registrations such as VAT, excise, & service tax.
  • Compliances Is Lesser In Number: Previously, there was VAT & service tax, each of which had its own returns & compliances. In GST, on the other hand, just one unified return to be filed.
  • Regulations Of Unorganized Sector: In the pre-GST, often observed that certain industries in India like building construction and textile were largely unorganized and unregulated. Under GST, however, there are provisions for online compliances and payments, and for availing of input credit only when the supplier has accepted the amount. This has brought accountability and regulation to these industries.

What is the fees for GST Registration

The ideal range varies from Rs. 1,000 to Rs. 3,000 based on the quality of service.

FAQ – Frequently Asked Questions

Can I apply for GST Registration online?

Yes, you can apply for GST Registration online. You can simply register your business on the official GST portal and then scan and upload all the required documents. You will then receive an acknowledgment. A GSTIN will be generated on acceptance of the application and a temporary password and login will be sent. GSTIN is a unique 15-digit ID. A GSTIN Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, and Tripura must get a GST registration if their supply turnover exceeds Rs. 10 lakh. As mentioned above, this threshold limit applies only to businesses that operate within their home state. A business that conducts trade with another state must seek registration regardless of turnover.

Is the GST threshold limit the same for all Indian states?

The exemption limit is a supply turnover of Rs. 20 lakh for businesses in all except for the Indian states in the northeast region. Businesses in Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, and Tripura must get a GST registration if their supply turnover exceeds Rs. 10 lakh. As mentioned above, this threshold limit applies only to businesses that operate within their home state. A business that conducts trade with another state must seek registration regardless of turnover.

How would the composition scheme work under GST?

The composition scheme under GST would be applicable to businesses with a turnover of up to Rs. 50 lakh. Small businesses with turnover less than Rs. 1 crore* (Rs. 75 Lakhs for Northeastern states) can opt for a composition scheme. Such taxpayers would pay a fixed percentage of their turnover and cannot avail of the benefits of an input tax credit. Such businesses cannot collect taxes from their customers. The floor rate of tax cannot be less than 1%. *GST Council has decided to increase the limit to Rs. 1.5 crores but official notifications are awaited.

Composition dealers are required to pay tax based on their business types.

  • They need to file only one return on a quarterly basis. Whereas normal taxpayers are required to file three returns on a monthly basis.
  • Composition dealers cannot collect taxes from customers
  • They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.
  • No input tax credits can be claimed

Persons who are not eligible for the GST composition scheme include:

  • Service providers (except restaurant owners)
  • Non-taxable goods suppliers
  • Sellers operating through an e-commerce platform
  • Suppliers involved in the inter-state supply of goods
  • Manufacturers of notified goods

Does GST apply to all businesses?

Yes, GST applies to all service providers, manufacturers, and traders. It extends to any dealers, bloggers, and writers, earnings from Google AdWords through PayPal, import-export businesses, all kinds of startups and companies, whether they are LLPs, proprietorships, partnerships, or private limited companies. It also applies, regardless of the threshold limit,

  • Businesses operating outside their home state
  • A business not registered to the state
  • Businesses paying a reverse charge
  • Input service distributor
  • E-commerce operators
  • Aggregators selling services under own brand name (Ola, for example)
  • Online sellers
  • Suppliers or agents

For a complete list of FAQs on GST Registration, please click here.

When to apply for multiple GST registrations?

  • Under the GST regime, only one registration is allowed against one PAN. However, businesses, which operate in more than one state must have
  • When a person runs a business in more than one state, then he must have a separate GST registration for each state.
  • If the business has multiple verticals within a state, then the registration has to be done for each business vertical.

You can reach, Chartered Accountants on CA in Delhi‘s homepage to get started with GST Registration

Know more about Documents required for GST Registration of Company

Document Required for GST Registration
Document Required for GST Registration

What are the Eligibility Criteria for GST Registration?

The below mention person/entities are Document Required for GST Registration –

  • Any business entity whose aggregate turnover in a financial year exceeds Rs 40 lakhs (Rs 20 lakhs for special category states in GST).

Note-This clause does not apply if the entity is only dealing in supply of goods/services which are exempt under GST,

  • Every entity who is registered under an earlier law of taxation (i.e., Excise, VAT, Service Tax, etc.) needs to get register under Goods and Service Tax.
  • Any entity or supplier dealing in inter-state supply of goods.
  • Casual taxable person
  • A tax-payer under the reverse charge mechanism
  • Input service distributor and its agent
  • E-Commerce operator or aggregator*
  • Non-Resident taxable person
  • Agents of a supplier
  • A Person who supplies through E-commerce aggregator.
  • Entities who are providing online information, acquiring database, or retrieval services from a place located outside India to a person in India, other than a registered taxable person

What Document Required for GST Registration?

The Document Required for GST Registration varies with the type of business. Most important lists of documents required for GST Registration (based on the type of business) are listed below:-

For A Sole Proprietorship Business

  • PAN card of the owner
  • Aadhar card of the owner
  • Photograph of the owner (in JPEG format, maximum size – 100 KB)
  • Bank account details*
  • Address proof**

For A Partnership Firm

  • PAN card of all partners (including managing partner and authorized signatory)
  • Copy of partnership deed
  • Photograph of all partners and authorised signatories (in JPEG format, maximum size – 100 KB)
  • Address proof of partners (Passport, driving license, Voters identity card, Aadhar card etc.)
  • Aadhar card of authorised signatory
  • Proof of appointment of authorized signatory
  • In the case of LLP, registration certificate / Board resolution of LLP
  • Bank account details*
  • Address proof of principal place of business**

For A HUF

  • PAN Card of HUF and the Passport size Photograph of the Karta.
  • Id and Address Proof of Karta and Address proof of the place of business.
  • Bank Account Details

For A Public Or Private Limited Company

  • Pan card of the Company
  • Certificate of incorporation of Company
  • MOA and AOA of the company.
  • Identity Proof and address proof of all directors and Authorised signatory of the Company.
  • Passport size photograph of the directors and authorized signatory.
  • Copy of Board resolution passed for appointing authorized signatory.
  • Details of Bank account opening.
  • Address proof of the place of business.

Know more about GST Registration at What is GST Registration

E-Way Bill System: E-Way Bill Becomes Mandatory for Movement of Goods : GST
E-Way Bill System: E-Way Bill Becomes Mandatory for Movement of Goods : GST

E-Way Bill System

E-Way Bill System: E-Way Bill Becomes Mandatory : GST

In a bid to bring uniformity across the states for seamless inter-state movement of goods, the government is set to implement the electronic way bill or e-way bill system from February 1. E-way bill is a system generated bill which every transporters, exceptions in some cases, will have to carry to move the goods from one place to another. These electronic bills can be generated from the GSTN portal. The e-way bill system was introduced under the Goods and Services Tax , but couldn’t be implemented earlier as the required IT infrastructure wasn’t in place. Last month, the GST Council decided to implement the e-way bill mechanism throughout the country from February 1.

In a notification released earlier this month, the GSTN informed the transporters that E-way bill would become mandatory for inter-state movements of goods from February 1, 2018. It further said that the nationwide e-way bill system would be ready to be rolled out on a trial basis by January 16

We know, there might be many questions arising in your mind regarding E-Way Bill System, so here we have answered all major questions. If you still feel your query is not answered, then feel free to comment them down.

FAQs

Q-1> Who needs to generate E-way Bill ?

Ans.: The following people are responsible to generate E-Way Bill

Ist – The Supplier

IInd – The Receiver

IIIrd – the registered person if purchase or sale is done from an un-registered person/dealer

Q-2> What type of supply is covered under E-Way Bill ?

Ans.: Almost all type of movements of goods are covered under E-Way Bill, including rejection, sales return , repair and maintenance and daily job work or material sent with a delivery challan. Approx value will be shown on delivery challan of the job work and an E-way Bill will be generated for this Challan.

Q-3> What amount is covered under E-Way Bill ?

Ans.: The material value up to Rs. 50000/= is not cover under E-way Bill whereas, if the total value of material which is loaded in a single vehicle is more than 50000/=, E-way bill will be generated by the transporter.

Q-4> How Many parts are there in E-way Bill ?

Ans.: There are 2 parts of E-way bill, part A and B. in part A ,we fill the detail of goods received , items detail and value of goods. In part B, there is a column of transporter detail ,means transport name, vehicle number and GR number.

Q-5> Is part B of E-Way Bill Mandatory to fill?

Ans.: If the material dispatch range is less than 10 Km i.e. through hand or by rickshaw, part B will not be required.

Q-6> How will goods be identified in Goods in E-way Bill?

Ans.: The Goods will be identified with an HSN Code shown in the E-way Bill.

Q-7> Any printout of E-way bill needed with the Invoice of Goods?

Ans.: No printout is required with the invoice of goods, show only number of E-way bill in front of invoice.

Q-8> What is Consolidated E-way Bill ?

Ans.: Consolidated E-way bill is generated when the transporter is carrying multiple consignments in a single vehicle. Consolidated E-Way allows the transporter to carry a single document, instead of a separate document for each consignment in a conveyance.

Q-9> What is the validity of E-way Bill?

Ans.: The validity of E-way Bill is as follows:

  • 00 to 100 Km. : 01 Days
  • 100 to 300 Km.: 03 Days
  • 300 to 500 Km. : 05 Days
  • 500 to 1000 Km. : 10 Days
  • More than 10000 km.: 15 Days

Q-10> What is the penalty of non-filling of E-way Bill ?

Ans.: the penalty of non-filling of E-way Bill is 200% of GST value of invoice..

NOTE: there is no editing allowed in E-way bill after final submission.

Q11 > What are the documents required to generate E-Way Bill?

  • Invoice/ Bill of Supply/ Challan related to the consignment of goods.
  • Transport by road – Transporter ID or Vehicle number.
  • Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document.
Changes In GST : Rates, Due Dates, Return Filing
Changes In GST : Rates, Due Dates, Return Filing

Changes in GST that will impact your business

In a major overhaul under the GST, there are changes in GST that will impact your business. It’s important for you to remain updated with them so that you don’t do lose out anything or do any wrong for your business as well as customers.

Bringing smiles for consumers, as many as 178 items of daily use were shifted from the top tax bracket of 28 per cent to 18 per cent, while a uniform 5 per cent tax was prescribed for all restaurants, both air- conditioned and non-AC.

Other compliance changes are:

Revision in Late fee

1) For nil return from 200 Rs per day to Rs 20 per day
2) For others , The late fees Has been revised from Rs 200 to Rs 50 Per day

Revision in Timelines for filling return

GSTR 2 & 3 is abolished till March 2018

For Asseses having Turnover upto Rs 1.5 Cr will file
1- GSTR 3B monthly
2- GSTR 1 – Quarterly

For assesses having Turnover more than 1.5 Cr will file
GSTR 3B- Monthly filling by 20th of the following month.
GSTR 1- Monthly

Revision in overall due dates

Invoices for Nov, 2017 to be filed by Jan 10, 2018

Similarly, Invoices for Dec, 2017 needs to be filed by Feb 10, 2018

Invoices for Jan 2018 to be filed by March 10, 2018

GSTR 4 shall have to file there return 24th December 2017. Form for GSTR 4 is already available online

GSTR 5- 11th Dec 2017
Trans 1 – 31st December 2017

Changes in Composition Scheme

COMPOSITION dealer shall have uniform rate of 1% for manufacturer and traders.

COMPOSITION SCHEME will cover services of up to Rs 5 Lakhs in addition to the goods.

Threshold limit for COMPOSITION SCHEME will increase to 2 Cr (Necessary amendments will be made in act).

The aggregate turnover will only cover the taxabale supplies and not exempt supplies for the purpose of computing tax @1%/5%.

ALSO READ : Imprisonment under GST: Offences That May Land You in Jail

* In the current year, all taxpayers will have to file only GSTR-1.

* New GST rates will come into effect from November 15

* Nobody can charge tax over and above MRP

* Taxpayers with annual aggregate turnover more thanRs. 1.5 croreneed to file GSTR-1 on monthly basis as per following frequency:

2
PIB

Due dates for furnishing forms

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Credit: PIB