Get Your GST Doubts Cleared Once and For All
It is impossible to navigate through different indirect and direct forms of taxes, especially for small and new businesses. There have been subsequent changes in the tax system that almost disrupted the country’s tax administration. After the Goods and Service Tax (GST) was implemented, things have changed considerably.
The Goods and Services Tax aims to eliminate secondary and tertiary indirect taxes and provide only a single standard tax. To understand more deeply about India’s tax system, let’s learn about the components of GST.
GST has exempted all the taxes such as customs duty, service tax, luxury tax, VAT, etc. Therefore, the government is solely dependent on GST for the indirect revenue of tax.
What are the 4 Different Types of GST?
Integrated Goods and Services Tax (IGST)
The Integrated Goods and Services Tax can only be applied to transactions that take place from state to state. IGST ensures to look after union taxes of the government only.
Central Goods and Services Tax (CGST)
The Central Goods and Services Tax is taxed by the Central government on intra-state transactions of a particular state. All the taxes that come under CGST have to be paid by the consumer and not the producer.
State Goods and Services Tax (SGST)
State Goods and Services Tax is a tax executed in every intrastate tax transaction. Hence, SGST tax is profitable for the state government only.
Union Territory Goods and Services Tax (UTGST)
Union Territory Goods and Services Tax focuses on taxes from India’s union territories. These territories are Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, Andaman and Nicobar islands and Chandigarh.
What is the Goods and Service Tax Invoice Form?
The GST invoice form is a document or proof of the goods and services sold to the customers by the producers. The document indicates the names of the parties involved in the transaction as well as the details of the goods exchanged. Once you become a registered user on the GST portal (gst.gov.in), you are advised to issue GST invoices as per your business procedures meticulously to avoid any mismanagement of documents, as GST invoices are important for filing income tax returns.
What are the Advantages of GST?
Unity in Diversity
Before the implementation of GST, many taxpayers had to pay several state and national taxes. Furthermore, every state had its own set of tax schemes which resulted in every state pricing the same types of products at different costs. Although this was beneficial for the states individually, it affected the economy of India as a whole.
Small Businesses Exempt from Paying Taxes
Small businesses faced a lot of financial strain earlier due to the various indirect taxes. Most businesses barely made a profit due to these hefty taxes. By eliminating the value added tax, service tax, excise tax, etc. small corporations are now benefitting. Corporations with a supply of 40 lakh are exempted from paying indirect taxes.
Implementation of the Composition Scheme
The composition scheme is implemented for taxpayers. Small businesses can conveniently avoid tedious GST formalities and pay only a fixed turnover rate. This scheme is implemented for businesses with a turnover of less than 1.5 crores.
Indirect taxes are Eliminated
Earlier, taxpayers were required to pay different types of taxes which led to more financial burdens. GST solved this issue by replacing those taxes with a standard tax methodology that requires only one single tax to be paid.
What is KhataBook?
KhataBook is a mobile-based application that provides easy operating features related to GST. KhataBook aims to make life simpler by tracking all your transactions smoothly. This will help save money, energy and time. It also has an in-depth FAQ section on GST.
Some of the Main Features of KhataBook
- Free SMS reminders that notifies your pending and upcoming payments.
- The app has support for 11 Indian languages to make it easier for people to register and understand the FAQs on GST.
- The report generator will help in the analysis of your finances. You can conveniently make smart business-related choices after you have checked the best outcomes.
- The backup technology helps in automatically backing up all your crucial data. With this in place, even if your device gets misplaced, your records will remain protected.
- Reviewing and managing transactions can be effortlessly carried out on this application.
From small scale to large scale corporations, KhataBook is an application for everybody. This android-based app helps in maintaining digital data of all your essential transactions, letting you accept payments made online.
Paying GST is a mandatory component for every taxpayer. You can be criminally charged if you fail to pay your GST on time. Moreover, once you face criminal charges, it will affect the growth of your business going forward.
GST has made filing taxes much easier for all taxpayers by eliminating indirect taxes that were in place. It is vital to register for GST to avoid putting your business at risk.