Since its implementation on 1st July, 2017 GST has been always in the news due to its high tax rates & bit complicated tax slabs also Govt faces lots of criticism for it.
Recently RBI forecast GDP growth rate at 7.3% (2017-18), which is lower than last year’s GDP growth rate. To main economic stability and for a higher GDP growth Government decided to revise tax rates.
On 6th October Finance Minister Arun Jaitley announced new tax rates after a long & fruitful discussion with GST council members.
The GST council slashed rates on 27 items and 12 services.
Here are the details of revised tax rates on goods:
0% – Jute, Fresh meat, Fish, Chicken, Eggs, milk, Butter milk, Curd, Natural honey, Fresh fruits and vegetables, flour, Besan, Bread, Prasad, salt, Bindi, Sindoor, Stamps, Judicial papers, Printed books, Newspapers, Bangles, Handloom, Bones and Horn cores, Bone grist, Bone meal, Cereal grains hulled, Palmyra Jaggery, Salt – all types, Kajal, Children’s’ picture, Drawing or Colouring books, Human hair, Khadi purchased from Khadi and Village Industries stores, Clay idols, brooms, Cotton seed oil cake, Charkha.
5% – Sugar, Packed Paneer, Coal, Tea, Edible Oils, Raisin, Domestic LPG, Roasted Coffee beans, Skimmed Milk Powder, Cashew Nuts, Footwear below Rs.500, Milk food for Babies, Apparels below Rs.1000, Fabric, Coir Mats, Matting & Floor covering, Spices, Agarbatti, Sweets, Life saving drugs
12% – 3 Butter, Computers, Ghee, Processed Food, Almonds, Mobiles, Fruit Juice, Packed Coconut Water, Umbrella, All diagnostic kits and reagents, Exercise books and note books, Spoons, Non-electric of base metal, Animal carving material.
18% – Footwear above Rs.500, Biscuits, pasta, cornflakes, Pastries and cakes, preserved vegetables, Jams, Sauces, soups, Ice cream, Instant food mixes, Mineral water, Tissues, Envelopes, Tampons, note books, Steel products, Printed circuits, Camera, Speakers, Kajal pencil sticks, Industrial Intermediaries.
28% – Bidis, Chewing Gum, Molasses, Chocolate not containing cocoa, Waffles and Wafers coated with choclate, Pan masala, Aerated water, Paint, Deodorants, Shaving creams, After shave, Hair shampoo, Dye, Sunscreen, wallpaper, Ceramic tiles, Water Heater, Dishwasher, weighing machine, Washing machine, ATM, Vending machines, Vacuum cleaner, Shavers, Hair clippers, automobiles, Motorcycles, Aircraft for personal use
Unbranded food items are exempted from GST. It means traders who supply these unbranded items like some unbranded fruits, daily use household items etc would be free from tax payment.
Revised tax rates on Services:
0% – Hotel & lodges with tariff under Rs.1000 , Health Care, Education services
5% – Transport services, Small Restaurants, Textile jobs. 5%
12% – State-run lotteries, Non-AC hotels, Business class air ticket, Work Contracts
18% – AC hotels that serve liquor, Telecom services, IT services, Branded garments and Financial services, Room tariffs between Rs 2,500 and Rs 7,500, Restaurants five-star hotels
28% – Private-run lotteries authorised by the states, hotels with room tariffs above Rs 7,500, 5-star hotels, Race club betting, Cinema
This new finalized tax rate concentrates on not to elevate the tax burden on common use or daily use products.
How this tax reduction termed as a Pre-Diwali gift?
1 – For common people like us GST became a nightmare cause after GST we hardly think of going to a restaurant as they are charging a high tax rate also individual items price got hiked. A daily wage labour whose income is Rs.10000 /month has to face a lot of difficulty to manage his monthly household expense as price of each & every item hiked.
After facing lots of flak Government lowered the tax rate on daily use items like hair oil, tea, Plain chapati, milk, sugar, vegetables etc which is a best Diwali gift for common people like us and also for traders of these products. Its going to be a happy & sweet Diwali as tax on Sugar dropped.
GST Council slashes tax rates on common used house hold items. Its good news for public as items price won’t be hiked due to GST. Common used items would become cheaper. GST tax for Dosa batter, ghee, processed foods etc reduced from 18% to 12%. Brushes, brooms, namkeens would fall into exemption category.
2 – Filing date extended: The date for GSTR-1 filing has been extended till October 10. Tax payers need to file GSTR-1 with in October 10. Companies with turnover of Rs.100 crore have to file GSTR-1 within October 3 and for others its October 10. Filing date for GSTR-2 is October 31 and for GSTR-3 is November 10.
3 – Tax exemption for Handicraft Traders:
Handicraft traders whose turnover is below Rs.20 lakh will not have to register under GST. This is good news for Handicraft traders before Diwali.
4 – Composition scheme turnover raised:
The Composition scheme is a method of imposition of designed tax on small tax payers. Under GST turnover limit for this scheme is Rs. 75 lakhs but in the 22nd meeting of GST council this limit is increased upto Rs.1 Crore for all states except Jammu & Kashmir and Uttarakhand. New tax payers can avail this composition scheme facility upto 31st March 2018.
Indeed GST is a great move by Government and it will take a lot time for public to understand GST and its importance. GST is boon for tax payers and curse for tax evaders.
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Technology has become the most important part of our life. Introduction of GST is a great initiative by Government of India to ease the taxation system. Every single organization & industry needs to be registered under GST. GST is the biggest indirect tax reform of India. GST is a single tax on the supply of goods and services.
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Taxable persons and entities under GST are required to file various GST returns. Under GST, return filing is a most important activity for taxpayers and the government. A regular tax payer needs to issue monthly returns and one annual return.
In the GST return, the taxpayer is required to furnish details like the particulars of business activity, declaration of tax liability, payment of taxes etc.
GST return filing type
GSTR-1: It has to be filled by registered taxable supplier. It includes details of all outward supplies of taxable goods & services.
GSTR-2: It has to be filled by registered taxable recipient with details of all inward supplies of taxable goods and services.
GSTR-3: This form will be filled automatically on the basis of outward supplies and inward supplies with the payment of amount of tax.
GSTR-4: This has to be filled by composite dealers instead of GSTR-1, GSTR-2, GSTR-3 with details of outward supplies, tax payable and payment of tax.
GSTR-5: This has to be filed for return of Non-Resident taxpayer. This form will contain details of outward supplies, imports, input tax, tax paid, input tax availed and remaining stock.
GSTR-6: Input service distributor will file this and it has to be filed by 13th of each month.
GSTR-7: This form will contain the details of the tax deduction. Due date to file this form is 10th of each month.
GSTR-8: The GSTR-8 form will be filed by e-commerce operator or tax collector by 10th of each month and will contain the details of all supplies made through e-commerce operator and the amount of tax collected.
GSTR-9: Annual return filed by registered taxable person by 31st December of each financial year.
GST Return Filing due dates:
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