google.com, pub-4417961591688198, DIRECT, f08c47fec0942fa0 google-site-verification: googledcc23757cdab3c4f.html Filing Returns Under GST - know how to do it ... ~ bulls$treet

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Filing Returns Under GST - know how to do it ...





Currently, the GST filing system requires a business to fill at least three forms on a monthly basis. The Input Tax Credits are granted as soon as one file the returns. With the new proposal in place, you may have to just fill a one-page return. 

The proposal is a part of the government’s attempts to simplify the GST return-filing process since it’s implementation. Several models have been proposed to make it easier and more accessible to businesses in the country. Understanding GST The introduction of the GST bill changed the tax structure. GST is levied on every stage of manufacturing and it depends on an interlinked network of buyers and sellers or GST Network (GSTN) GST has reduced the burden of multiple aggregated taxes on the consumer.

 It has done away with the Value Added Tax(VAT), service tax, entertainment tax, excise duty and luxury tax. These indirect taxes are replaced by Central GST (CGST), State GST (SGST) and Integrated GST (IGST). How the GSTN works The IT system of GST Network (GSTN) accepts purchase and sales invoices uploaded by a seller. The buyer also uploads their invoice. The system then, automatically, calculates the Input Tax Credit applicable for the seller and the buyer. In the new model, the automatic nature of the system will be replaced by a semi-automated process of entering the purchase and sales information.
The semi-automated structure of the new model will enable the seller to continuously add invoices and the buyers can have a look at them. The seller can lock the invoice, thereby making it impossible for the seller to edit or delete it. This makes the invoice final and the seller no longer has to update his part of purchases. Pro and Cons Advantages: The proposed model will encourage businesses to accept tax compliant suppliers because the system will release a list of defaulters periodically. If the defaulters don’t pay the tax even after a warning, the input tax credit or ITC will be reversed. High-risk suppliers will be identified and will pay advanced tax to minimize the reversal of ITC.
Disadvantages: The drawback here is that small businesses might have to employ a person full time to keep on updating the invoices. These are extra costs for small businesses that are trying to establish themselves. Also, the Input Tax Credits may be kept on hold until the returns are filed and verified. This makes the filing process longer. Verdict The proposed model is expected to simplify the GST process. While it may take more time to get back the returns, this could make the system leak-proof and ensure that Input Tax Credits are released to the right party.
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