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:

Continue reading “Why GST Compliance Rating is an advantage for tax payers?”

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”

Revised GST – Why it’s a best Diwali gift for traders?

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:

Continue reading “Revised GST – Why it’s a best Diwali gift for traders?”

GST Council trims tax rates to ease the filing process

GST Rate revised

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 Friday Finance Minister Arun Jaitley announced new tax rates after a long & fruitful discussion with GST council members.

Continue reading “GST Council trims tax rates to ease the filing process”

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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