Fundamental information by GST Consulting Services In India
Every business owner has the social responsibility to pay taxes other than income tax which is common for all. These taxes can be in the form of service tax, value-added tax or VAT, excise duty, and even a few specific version of custom duty as and when applicable. Collectively, these taxes are termed as indirect taxes. This means as a business owner you will need to maintain your book of accounts precisely to abide by the taxation law of the nation. With so many different variants of taxes, you will need to have specific files for each which is not an easy task it takes up a lot of time and consumes a lot of workforces.
Combination of all taxes
To keep matters simple and easy to manage, almost all of these variants of indirect taxes are now combined into one had and replaced by Goods and Services Tax, commonly termed as GST. However, things are not that simple in this aspect as well. If you are a novice, then you will have a hard time preparing GST compliant bills and accounts which is when you will need the help of GST consulting services in india.
Implementation of different taxes
As of now, excise duty is usually levied on manufacture and VAT is imposed each time a product changes hands because with each change value is added to the product. On the other hand, CST or Central Sales Tax is charged on those goods that move between two or different states. With all these taxes levied on a product, it might end up with increased value and a lot of different taxes before it finally reach to the end user. All of these various taxes have a different ‘point’ of tax tariff which now gives way to GST. If you do not know how and when GST is levied, you must get in touch with the GST service providers in Delhi NCR for a better insight.
The point of levy
The most significant factor about GST is the point of levy. Under GST rule, this point of the tax levy is the ‘supply’ of goods. The factors and elements that constitute a ‘supply’ have been clearly defined in the GST Act. In terms of a layman, supply means when a good is sold, or a service is provided. However, to GST consultants in India a ‘supply’ of good or service will have different meaning. It can be made even when there is no actual sale made. Supply usually includes transfer, barter, exchange, lease, rental, or even a supply made to branch or any agent.
Types of GST
When you consult with the GST consulting firms in India, you will know that there are a few instances in this context where the government may notify a few services and goods that will not be considered as a ‘supply.’ Therefore, these goods and services will not attract GST. Therefore the first thing you need to do is to identify whether or not your business has made any ‘supply.’ Once you establish that the next step is to find out whether the ‘supply’ is intra-state or inter-state.
Who needs GST
Implementation of GST rule is not merely a change in the tax landscape but is ideally an overhaul in the way all these indirect taxes will be levied. Any supply made outside India will not attract GST; however, GST registration is required for such supplies. If you are an existing VAT registrant pay excise duty or service tax you can roll over your GST registration. Businesses with a turnover of less than 20 lakh Rupees need not register for GST.