Why GST Compliance Rating is an advantage for tax payers?

What is GST Compliance Rating?

GST Compliance rating is one the most needed initiative taken by Government under GST. Compliance rating is a score card for tax payers under GST. It will provoke tax payers to comply with GST rules and regulations in order to be on good rating scale. It can be termed as a performance indicator for business owners, tax payers etc.

How GST compliance rating works?

As it’s a performance rating businesses so rating would be based on some parameters. The basic parameters would be:

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Why Cloud Accounting is better than traditional accounting?

Cloud accounting is widely accepted by small businesses. Cloud Accounting is termed as online accounting and manual accounting called as traditional accounting. Why we need cloud accounting? The best answer would be to save time, money and to reduce accounting errors. Also cloud accounting is the best way to do accounting as you can save & edit all your data at anytime and anywhere as data will be save on server. These are some features which attract small businesses to use accounting software.

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Major changes announced on 23rd GST council meeting

On 23rd meeting of GST council Finance minister Arun Jaitley announced some major changes in tax rates which provide some relief to tax payers.
GST council also reduced GST tax rates for service sector (Restaurant, Handicraft & Aviation) to simplify taxation process and promote ease of doing business.

Relaxation for Service Providers:

Service providers within Rs.20 Lakh turnover are free from GST registration. This is also applicable on those who provide inter-state services and through any e-commerce portal.

There is no good news from this 23rd meeting for restaurants. Restaurants can’t avail any input tax credit with remaining tax rate of 5%.

Services export to Nepal and Bhutan are exempt from GST charges also they can avail input tax credit facility. Continue reading “Major changes announced on 23rd GST council meeting”

Step-by-step guide on GST Registration

GST marked as the biggest tax reforms in India since 1947. It’s a unified tax implemented by current BJP Government with an aim to erase all state or central government indirect taxes. GST subsumes 11 Indirect taxes that were levied on the sale of goods and services by central or state Government. GST made indirect taxation process simpler for small and medium scale enterprises. It will also boost economic growth in a long run. New small businesses will be benefited from this new tax law as they have to pay less tax under composition scheme (SMEs with Rs.20 – Rs.50Lakh turnover).

As we are saying that GST made taxation easier. So, let’s have a look at its registration process. In this article we will cover all details regarding GST registration with below-mentioned points:

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Input Tax Credit

Input tax credit can be defined as the credit claimed by business owners on raw materials purchased for further production of output (service/product). Through this scheme businesses will be able to reduce tax already paid on purchases.

Input tax credit is introduced by GST council and this can be termed as the backbone of GST. It’s a beneficial scheme for small businesses. Input tax credit can be claimed both on products and services.

 

 

 

 

 

How to claim ITC?

Below mentioned conditions need to be fulfilled in order to claim input tax credit:

  • A person or business must be registered under GST
  • Supplying of goods or services must be done only for business purposes
  • Invoice should be GST compliant
  • GST filing by supplier
  • Return filing should be done in time

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