What is Goods and Services Tax (GST)?
The Goods and Services Tax is a value-added tax on goods and services sold domestically for consumption. The GST is paid by both consumers as well as the businesses selling goods and services to the government. It is a common tax used by most of the countries globally. It integrates different tax lines like Central Excise, Service Tax, Sales Tax, Luxury Tax, Special Additional Duty of Customs, etc. into one consolidated tax. It deters multiple tax layers imposed on goods and services.
With GST, the tax assesses pay a single, uniform tax on goods and services across the country. There is an elimination of the cascading effect of taxes. With the implementation of GST, it leads to a uniform tax, resulting in the creation of a common national market. It helps in reducing litigation and regulating the unorganized sector, providing a smooth assessment of tax.
GST Registration Process
If you are registering for GST, you can also collect GST from your consumers. If you fail to register for GST, you can incur heavy penalties as it will be an offense under GST. Any business whose aggregate turnover exceeds Rs. 40 lakhs (Rs.10 lakhs for NE and hill states) are required to obtain GST registration. SetMyCompany, one of the leading GST compliance service providers in India, not only helps you with the company registration in India but also with the GST registration.
What is a composition scheme?
The composition scheme is a simple scheme under GST for taxpayers. This scheme is ideal for small taxpayers as they can pay GST at a fixed rate of turnover. If your turnover is Rs.1 crore, you can opt for a composition scheme. In the case of North-Eastern states, the limit is Rs. 75 lakhs.
Advantages of composition scheme
Businesses under composition schemes have a much lesser tax liability and higher liquidity as the taxes are set at a lower rate. Taxpayers opting for this scheme are eligible for less compliance. So, there is no requirement to maintain detailed records. In composition levy, a dealer doesn’t have to worry about his supplier filing return and will pay the tax at a nominal rate.
Who should register for GST?
- Input service provider
- E-commerce operator
- Non-resident taxable person
- Those who pay tax under reverse charge
- Casual taxable person
- Individuals registered under the Pre-GST law
- Any business with a turnover above the threshold limit of Rs.40 lakhs (Rs.10 lakhs for North-Eastern states)
GST Compliance rating
GST compliance rating, a performance rating devised on a scale of 1 to 10 is given to all registered taxpayers to know how compliant they are concerning the GST provisions.
Our Full Range of GST Compliance Services
It is critical to maintain and handle all GST compliances for any company. We at SetMyCompany with a wide experience in handling GST compliance efficiently, our professional team is ready to manage your tax compliances accurately.
GST Registration Process
If your business turnover exceeds Rs. 40 lakhs (Rs. 10 lakhs for North East and hill stations), you are required to do GST registration. There are certain documents required while registering. After verification of all information, a certificate of registration will be issued to you.
GST return is a document containing all the details of your sales, purchase, tax collected on sales and tax paid on purchases. All business owners who have registered under the GST system must file GST returns.
Invoicing under GST
Tax invoice and Bill of Supply
Matching Input Tax Credit under GST
We match based on the following data:
- Possession of a tax invoice or debit note
- Receipts of goods/services
- Tax payment to government
- Filing of return by supplier and buyer
GST Payments & Refund
There are three different tax payments that need to be made under GST. They are IGST (Integrated Goods and Service Tax), CGST (Central Goods and Service Tax) and SGST (State Goods and Service Tax). Claiming a GST refund is simple.
Why SetMyCompany for GST Compliance Services?
SetMyCompany, one of the reputed GST Compliance Services Providers in India has a professional team that can help you with GST audit and filing of GST annual reports. Our team has a comprehensive understanding of the earlier system and has been vigorously working on GST, to ensure that you reap maximum benefits out of it.
We keep you abreast of frequent changes in law and corresponding changes in the system. Our extensive documentation and data validation ensure legal and factual precision. We also provide other compliance services such as investment compliance services, accounts and bookkeeping and due diligence services. Contact us today for GST compliance services!