1. What is an eWay Bill?

EWay Bill is an electronic bill that needs to be made on the eWay Bill Portal to move things. A person who is registered for GST can’t move goods worth more than Rs. 50,000 (single invoice, bill, or delivery challan) in a car without an e-way bill made on ewaybillgst.gov.in.
You can also create or cancel an Eway bill through SMS, an Android app, or site-to-site integration through the API by entering the right GSTIN of the parties. Use the GST search tool to make sure the GSTIN is correct before you use it.
When an e-way bill is made, a unique e-way bill number (EBN) is given to it. The seller, the recipient, and the transporter all have access to this number.

2.When Should eWay Bill be issued?

When a vehicle or conveyance moves things worth more than Rs. 50,000 (either for each invoice or for all invoices in a vehicle or conveyance), an eWay bill will be made.

• When it comes to a “supply,”
• For something other than a “supply,” like a return
• Due to a “supply” from someone who wasn’t registered,
• A supply for this reason could be any of the following:
• A business transaction in which something is given in exchange for money.
• A payment made for a service that may not be done in the course of business.
• A gift that is given for no reason (without payment).In plain English, the word “supply” generally refers to:
• Sale – things sold and money received
• Branch transfers, for example, are a type of movement.
• Barter/Exchange: When things are traded instead of money

For all of these types of moves, eWay Bills must be made on the same portal. Even if the value of the consignment of goods is less than Rs. 50,000, the eway bill must be created for the following goods:

• Inter-State Movement of Goods by the Principal to the Job-worker by the Principal/registered Job-worker
• A dealer doesn’t have to register for GST if they transport handicrafts between states.

3. Who should Generate an eWay Bill?

Registered Person –: When things worth more than Rs 50,000 are moved to or from a registered person, an Eway bill must be made. Even if the value of the goods is less than Rs 50,000, a registered person or the driver can choose to make and carry a eway bill.

Unregistered Persons – e-Way Bill must also be made by people who are not registered. But if a non-registered person gives something to a registered person, the registered person will have to make sure all the rules are followed as if they were the seller.

Transporter –If the supplier hasn’t made an e-Way Bill, transporters who move goods by road, air, train, etc. also need to make one.

The transporters need not generate the Eway bill (as Form EWB-01 or EWB-02) where all the consignments in the conveyance :
Individually, each paper is worth less than or equal to Rs 50,000, but when all of them are added up, they are worth more than Rs 50,000.

**Document means Tax Invoice/Delivery challan/Bill of supply

Transporters who aren’t already registered will get a Transporter ID when they sign up on the e-way bill site. After that, Eway bills can be made.

Note:
If a transporter is moving more than one shipment in the same vehicle, they can use the GST EWB-02 form to create a combined e-way bill by entering the e-way bill numbers of each shipment. If neither the sender nor the receiver has made an e-way bill, the carrier can do so by filling out PART A of FORM GST EWB-01 using the invoice, bill of supply, or delivery challan that was given to them.

4. Cases when eWay bill is Not Required

In the following situations, you don’t need to make an e-Way Bil:

The means of transportation is not a car.

Goods that need to be cleared by customs are moved from a customs port, airport, air cargo complex, or land customs station to an inland container depot (ICD) or a container freight station (CFS).

Goods that are moved under customs watch or with a customs seal

Goods that are moved from ICD to a customs port or from one customs station to another under a customs bond

Goods on their way to or from Nepal or Bhutan

Goods moved by the defense unit under the Ministry of Defense as a sender or receiver

Cargo crates that are empty are being moved.

Consignor transporting things to or from a business location and a weighbridge 20 km away for weighing with a delivery challan

Goods that are sent by train on behalf of the central government, a state government, or a local authority.

Goods that aren’t required to have an E-Way bill according to the GST Rules for each state or union territory

Transport of certain defined goods This includes a list of goods that are exempt from supply, an annexure to Rule 138(14), goods that aren’t considered to be supplied according to Schedule III, and certain schedules to Central Tax Rate Notifications. (PDF of the Goods List)

Note: Part B of the e-Way Bill doesn’t need to be filled out if the distance between the shipper or receiver and the carrier is less than 50 km and the shipment is going within the same state.

5. State-wise e-Way Bill Rules and Limits

Since e-way bills started being used on April 1, 2018, more of them have been made to move things from one state to another. Implementing the e-way bill method state by state has been well received, and all of the states and Union Territories have joined the league to make e-way bills for the movement of goods within the state or UT.

But people in a few states have been given relief by not having to make an e-way bill if their income is below a certain level or if they are buying certain things. For example, people in the state of Tamil Nadu don’t have to make an e-way bill if the value of the things is less than Rs. 1 lakh. For more information about these kinds of reliefs in other states or UTs, you can visit our page on state-by-state e-way bill rules and threshold limits or check the business tax websites for each of these states or UTs.

6. How to generate eWay Bill on portal

On the e-Way Bill Portal, you can make an e-way bill and get an e-way bill number. You only need a login to the portal. Check out our piece, “Guide to Generating an e-Way Bill Online,” for a step-by-step guide on how to make an e-Way bill.

7. SMS e-way bill generation on mobile

You can make e-way bills using a registered cell phone and an SMS message. All of this can start with turning on the SMS e-way bill generation feature. Register the phone that will be used for the SMS feature of making an e-way payment. Then, to create, control, or cancel e-way bills, send simple SMS codes to a certain mobile number that the e-way bill portal/GSTN is in charge of. For more information, check out our post on how to make an e-way bill via SMS.

8. Validity of eWay Bill

The following table shows how long an e-way bill is good for, based on how far the things have traveled. The e-way bill’s validity is based on the date and time it was made.

The Eway bill’s validity can also be expanded. The person who made the Eway bill has to do it either eight hours before it expires or within eight hours after it expires.

9. Documents or Details required to generate eWay Bill

Invoice, Bill of Supply, or Challan for the goods shipment

Road transport—Transporter ID or Vehicle number

Transport by train, plane, or ship? The paper has the transporter’s ID, the number of the transport document, and the date.

10. Frequently Asked Questions

Can I add two invoices in one e-way bill?
No, you can’t use two receipts to make a single e-way bill.
But you can use a “consolidated e-way bill” to combine two or more “e-way bills” into one.

bills go.

Should I generate e-way bills against invoices raised for supply service?
No, the rules for e-way bills do not apply to purchases that are based on services.

So, you don’t need to make an e-way bill for the delivery of

a service.

Whether eway bill is required when the goods is billed within 10 km surroundings?
Goods that move within a state don’t need an e-way bill if the distance is less than 100 miles.

as far as 10 km. Now, you can only go 50 km per hour.

How many days after raising an invoice that one should generate the e Way bill for delayed delivery?
Only when things are delivered do you need an e-way bill. So, if

If an invoice is sent but the things haven’t arrived yet, part-A can be

The details for Part-B can be added to the e-way bill later.

when it comes. When Part-B is filled out, the e-way bill becomes acceptable.

What is the responsibility and liability for the transporter in E-Way bill system?
If the seller hasn’t made an e-way bill for whatever reason, the transporter who is moving the goods by road, air, rail, etc. must also make an e-way bill. Make an e-way bill based on the information that the sellers or consignors shared about the invoice or challan. Read our piece “Compliance on e-Way Bills by Transporter” to learn more. If the transporter doesn’t create when he’s supposed to, he could face a fine of Rs 10,000 or the tax he was trying to avoid paying, whichever is higher. His goods and vehicle could also be taken away from him.

How many e-way bills are required to be generated to ship a consignment to a customer involving multiple transporters (having different transporter IDs) in between? How will the one invoice-one-way bill validation be complied with here since the end customer is only one?
The invoice needs to be used to make one e-Way bill. “Transshipment” is the term for what happened above. The transporter can also give the job to someone else by changing the ID on the Eway bill page. Once a transporter reassigns another transporter, the seller can’t make any changes to the given transporter. So, the user has to make different delivery challans for the invoice based on the different transporter IDs. They can’t make different e-way bills for a single invoice, and doing so would make it hard to fill out the GSTR-1.

How is the criteria of “Value of Consignment of Goods” applied?
The phrase “value of consignment of goods” means the following:

1. The value of the invoice is more than Rs. 50,000. 2. If a vehicle is carrying goods for more than one invoice, and the total value of all the invoices is more than Rs. 50,000.
So, if any of the things above are true, the user should make an e-Way Bill.
*Invoice Value means the value of the transaction as shown on the invoice, including all taxes except for the value of tax-free goods that are carried with taxable goods and billed together.

Is e-Way bill required, if the value of shipment per customer per day exceeds Rs 50,000? How will we take multiple invoices under single e-way bill?
In this case, it depends on whether or not the provider is also the transporter. If he is the transporter, he has to make an e-way bill for all invoices. If he is not the transporter, the transporter has to make an e-way bill for all invoices in the vehicle.

For Selection of Sub Type in case of Outward Supply, What do terms “CKD/SKD” & “Line sales” mean?
“CKD/SKD” means that the things are moved in either a “completely knocked down” or “semi-knocked down” state. For example: Fan movement in different parts that will be put together later. “Line Sales” are sales from one unit, department, or division of an organization to the next unit, department, or division in the production line.

The post What is the Eway Bill, Anyway? The E Way Bill, Its Rules, and How It’s Made appeared first on GST Suvidha Kendras.

In this piece, we’ll talk about what kind of GST you should charge for sales you make online.

Place of supply

GST is a destination-based tax, which means that things and services will be taxed where they are used, not where they are made. So, GST will be collected by the state where it is used.

All of the rules of GST are based on the idea of the place of supply, which is why it is so important.

SGST, CGST, and IGST will be charged based on whether the goods were sold within the same state or to a different state. This is decided by where the goods were sold. If the place of production isn’t figured out correctly, the wrong state will get the tax money. For example, inter-state sales are mistakenly treated as sales within the same state, and CGST and SGST are filled out instead of IGST. The only choice is to pay IGST separately and ask for a CGST and SGST return.

In plain English, it doesn’t matter where you sell from. It’s important to know where your things are going.

This would be true for all online shopping sites, like Amazon, where people sell things.

Let’s go over the rules for the place where things are sold:

Example 1: Intra-state sales
Mr. Raj from Mumbai, Maharashtra, orders a phone from Amazon. The registration for the seller Happy Mobiles is in Nagpur, Maharashtra.

Mumbai, which is in Maharashtra, is the place of supply. The source is in the city of Mumbai. Since both the place of supply and the site of the supplier are in the same state, CGST and SGST will be charged.

Example 2: Inter-State sales
Mr. Raj, who lives in Mumbai, Maharashtra, buys a cell phone from Amazon. Mobile Junction is listed as a business in Bangalore, Karnataka.

Mumbai, Maharashtra, is the place of supply in this case. Since the place of delivery (Mumbai) is in a different state than the place where the goods are made (Bangalore), IGST will be charged.
Example 3: Send to a third party
Mr. Raj, who lives in Mumbai, Maharashtra, buys a mobile phone from Amazon as a gift for his mother, who lives in Lucknow, Uttar Pradesh. M/s All Mobiles, an online store based in Gujarat, takes care of the order and sends the phone, and Amazon sends Mr. Raj a bill.

The phone will be thought to have been sent to Mr. Raj in Maharashtra, even though it was actually sent to his mother.

Place of supply: Mumbai, Maharashtra

Location of supplier: Gujarat

GST: IGST

Digital goods such as eBooks

Selling digital goods like eBooks will be treated as services.

Example 4 – Sell eBook to a Business
M/s Sharma Chartered Accountants of Mumbai, Maharashtra, orders a book about money from Amazon. All Books Ltd. (Gujarat) takes care of the order and gives out the book.

Place of supply: Mumbai, Maharashtra (Location of the buyer)

GST: IGST (as the seller is registered in Gujarat)

Example 5 – Sell eBook to end consumer
Mr. Raj from Bangalore, Karnataka, orders a best-selling book from Amazon. All Books Ltd. (Gujarat) takes care of the order and gives out the book.

Place of supply: Bangalore, Karnataka (Location of the buyer)
GST: IGST (as a seller is registered in Gujarat)
IP address of the buyer’s device will not be important.

Invoicing

Every supplier has to keep track of invoice-by-invoice information of what they sell to registered taxable persons. They also have to give the total value of what they sell to unregistered people through the e-commerce platform. So, it is very important to make invoices that follow GST rules.

Here are a few things that should be on the Sales Invoice:

• Name, address, and GSTIN of the supplier
• Invoice number
• Date of issue
• Name, address and GSTINof the recipient (if registered)
• HSN code
• Description of the goods/services
• Quantity of goods
• Value(after discount)
• Rate and amount of GST

Also, if the e-commerce operator has to follow e-invoicing rules, he has to use the Invoice registration site to make the IRN and QR code for B2B invoices. Try Clear Tax’s e-Invoicing option for an easy way to make an IRN. It is quick, reliable, and cheap!

How can Clear Tax help in Invoicing?

Clear Tax’s  Clear One program makes things easy and quick for you. Based on your GSTIN and the buyer’s GSTIN, the software will instantly figure out the place of supply and tell you if you need to charge CGST, SGST, or IGST.
It’s time to switch to an intuitive, comprehensive,
A professional and future-ready invoicing solution, ClearOne

• Explore professional GST invoicing
• Personalize your invoices for logos and templates
• Get access to GST, e-way bill and e-invoicing on tap

This is how the invoice would look with all the details in it.

After the invoices are made, GST returns must be filed by the due times for monthly and quarterly filers. ClearTax GST software makes it easier for you to be compliant! Check out gst.cleartax.in.

E-commerce benefits both customers and sellers

When compared to local shops, customers have a wider range of choices. Items are often cheaper online because the sellers don’t have to pay for rent or promotion.

The sellers can:

• Reach a bigger market
• Increase their sales volume
• Avoid problems and costs of setting up branches
• Interact only with e-commerce operator for payment reducing debt management costs

How does an e-commerce sale work?

• Seller signs up on a website or e-commerce site like Amazon
• The seller takes pictures and puts them, along with explanations and prices, on the website.
• The buyer gets the item
• Most of the time, things are shipped by the seller directly or through the logistics center of the e-commerce operator.
• The company that runs the online store charges membership fees or a commission on each sale.
• An e-commerce-commerce helps sellers with everything from taking pictures of things to making sure they are delivered and paid for.

The post Types of GST applicable on E-Commerce Sales appeared first on GST Suvidha Kendras.

A moving taxpayer who wants to use the composition scheme must fill out Form CMP-01. The deadline was August 1, 2017, which was one month after July 2017. If a user wants to use the composition scheme for a fiscal year or in the middle of a fiscal year, they have to tell the government. This is done by filling out the GST CMP-02 form. If CMP-02 is filed in the middle of the financial year, the rules of the plan start to take effect the month after CMP-02 is filed.

For instance, a taxpayer fills out Form CMP-02 in December 2017. This means that the composition scheme rules will start to be used in January 2018. Both CMP-01 and CMP-02 must be made online through the GST Portal, or GSTN. The way to file is the same for both forms.

Here’s How to Submit Form CMP-02 Through the GST Online Portal

Step 1 – Login to GST Portal.
Step 2 – Go to ‘Services’ > ‘Registration’ > ‘Application to Opt for composition Levy’.

Step 3 – On this window read the ‘Composition Declaration’ and ‘Verification’ carefully and tick on the checkbox. Choose the ‘Name of Authorized Signatory’ from the drop-down. Also, type the ‘Place’ and click on ‘SAVE’.

Step 4 – If you are a Company or an LLP you can only submit the application with DSC. Any other registrant can use any of the three methods to submit the return.
Step 5 – A pop up will open containing the warning. Click on ‘PROCEED’ here.

When the application is sent, a message that says “Success!” is shown. Also, a confirmation is sent to your email address and phone number.

Once this form is filled out, a Composition Dealer has 90 days to fill out GST CMP-03. Check out our guide on how to file CMP-03 on the GST Portal.

The post How to Complete Form CMP-02 on the GST Website appeared first on GST Suvidha Kendras.

Exactly what is the GST portal?

The GST Portal is a PAN-India government website for GST compliance. The GST government website or portal is hosted at https://www.gst.gov.in/. The government portal for GST is a website where a taxpayer can carry out all the compliance activities under GST before and after GST login.
They can take actions such as GST registration, return filing, payment of taxes, application for a refund, etc., on the GST login portal, as explained in further sections of this article.

Can you explain the GST e-way bill process?

At https://ewaybillgst.gov.in/, you can find the e-way bill method or the e-way bill portal. An electronic way bill, also called an “e-way bill,” is a document that people who move things from one place to another must have if the value of the shipment is more than Rs. 50,000. Under the GST rule, it is a piece of paper that keeps track of where goods go.

All e-way bills are made on the e-way bill system, which gives each bill a unique e-way bill number. This e-way bill is used to move goods from the origin to the target within the time frame of the e-way bill. It is used by the transporter, the recipient, and the supplier.

Before GST, waybills were made in every state, but now that GST is in place, all states and Union Territories use e-waybills.

How to register for GST?

Visit the gst.gov.in page to apply for GST registration. When all the information and papers are sent in, an acknowledgement number is given for the GST login.

The registration process is finished when a GST Identification Number (GSTIN) is given to the person or business after the GST officer has checked that everything is in order. During this process, you will also get an official GST login name and set a password for it. You can read our piece to learn everything you need to know about how to register for GST.

Guide to using gst.gov.in before logging in

• The GST portal has several crucial tabs necessary for GST compliance. These are as follows-
• Goods and Services Tax Login
• Home page
• Services
• GST Law
• Downloads
• Search Taxpayer
• Help and Taxpayer Facilities
• e-Invoice

I. Services (Registration, Challans, Refund Tracking, etc)

There are six options provided under the ‘Services’ tab on the GST portal.

• Registration
• Payments
• User Services
• Refunds
• e-Way Bill System
• Track Application Status
  

1. Registration
Under the ‘Services’ tab, the link to apply for a new GST registration is the first choice. A person who sells goods or services must sign up for GST if their sales reach Rs. 40 lakh, Rs. 20 lakh, or Rs. 10 lakh in the case of the NE and hill states, which are called “special category states. In our piece about GST registration limits, we talk about the details of the limit.

With this guide, you can use the GST Portal to apply for GST registration. You can also quickly and easily sign up for GST through Clear.

2. Payments
The ‘Payments’ tab is the next one. Any user who is registered for GST can make a challan and pay the tax. There is also a way to find out what is going on.

You can also use the ‘Track Payment Status feature on the GST site. Under the “Payments” tab, you can also choose to file a “Grievance against Payment (GST PMT-07).”

3. User Services

On the User services tab, you can choose from the following:

• Search HSN Code
• Holiday List
• Cause List
• Locate GST Practitioner (GSTP)
• Generate User ID for an unregistered applicant
• Search BoE

Search advance ruling
4. Refunds
This tab has a single choice that lets the user check on the status of their refund application.

5. e-Way Bill System
You can find the e-way bill page by clicking on the e-way bill system tab. On the e-way bill portal, you can also find answers to frequently asked questions and user instructions.

6. Track Application Status
This is the last tab under “Services.” It lets the user check on the progress of their applications for registration and refunds.

II. GST Law

This tab has a list of links to the commercial tax pages for the Central Board of Indirect Taxes and Customs (CBIC) and the states and UT. The links lead to the CGST act and rules, the SGST act and rules, and any other GST-related acts and rules. There, you can also find the latest notices, changes, and circulars about GST.

III. Downloads

Offline Tools and GST Statistics are the two main parts of the tab.

1. Offline Tools

GST forms can be sent to the government online or on paper. The link for GST offline tools gives you the following information about how GST forms and reports can be used when you are not online:

2. GST Statistics
The tab lets you see the following information about how GSTR-1 and GSTR-3B have been filed in the past:

IV. Search Taxpayer

You can look up a taxpayer by their GSTIN or UIN using the GST search tool or the GST number search by PAN to check the taxpayer’s information or GSTINs that are registered under a PAN. This function can be used from the home page or after logging in.
You can also use the GSTIN or the state where the dealer is registered to find out if he has joined the plan or not. There are also other tools, like the Search composition citizen tool and the Search temporary ID tool.

V. Help and Taxpayer Facilities

On the GST site homepage, the help tab has a lot of how-to guides, system requirements for different GST filings, user manuals, videos, frequently asked questions (FAQs), and a link to the grievance redressal portal. Also, there are notices about new facilities and a list of mistakes with ways to fix them.

The GST portal has added a list of GST Suvidha Providers (GSPs) and a list of free accounting and billing tools. These have been made available on the GST portal so that users can use them to clear up any problems or questions they may have with making a return, registering for GST, etc.

VI. e-Invoice

This is a new tab on the GST site. When a taxpayer clicks on it, they go to a page with a link that takes them to the e-invoice portal. You can try Clear e-Invoicing, which is an AI-based tool that makes managing e-invoices easy.

Other Information Available on the GST Portal Home Page

There are four more areas on the GST portal that can help users file their GST returns or forms:

1. News | Updates

As you scroll down, you can see all the latest GST news, such as changes to due dates, updates to the GSTN system, and new ways to file.

2. Register/Find a Taxpayer/GST Practitioner
This part shows the user how to sign up as a customer or GST practitioner. It also has a tool for finding a user or a GST practitioner.

3. Popular Help Topics
This section has answers to some of the most common questions, like how to ask for a refund or join the composition plan.

4. Upcoming Due Dates
In the “Upcoming Due Dates” section, users can find out when the next GST return date is. Here, you can see if the times for filing have changed.

What is the GST login procedure for existing users?

Existing users can use the steps below to log in to GST:

Step 1: Visit www.gst.gov.in or the official GST website and click on ‘Login’ appearing on the right-hand corner of the homepage.

Step 2: Enter the username, password, captcha code and then click on the ‘LOGIN’ button.
Step 3: You will see your dashboard upon a successful GST login. You can view a summary of your GST credits under the FILE RETURNS’ tab, the PAY TAX’ tab, and the Annual Aggregate Turnover (AATO) tab, along with notices and orders received and saved forms.

What is the GST login procedure for first-time users?

Following are the steps for new users to create login on the GST portal:
Step 1: Click on the link that says “Login” at the top right of the GST Home page.

Step 2: Click on the here link in the instruction at the bottom of the page that says “First time login: If you are logging in for the first time, click here to login”.

Step 3: Enter the provisional ID/GSTIN/UIN and password received on your e-mail address. Also, input the given captcha and then click on “Login”.

Step 4: The new credentials page is displayed. Enter the username and password of your choice. Re-confirm the password and then click on the “Submit” button.

Step 5: A success message is displayed once the username and password have been created. You can now login to the GST official Portal using these credentials.

Step 6: When you login for the first time on the official GST website, you will be prompted to file a non-core amendment application to submit bank accounts details. Click on ‘FILE AMENDMENT’ button.

Step 7: The application form for editing is displayed and non-core fields is available in editable form. Edit the details in the bank accounts tab by clicking ‘ADD NEW’ button and submitting the application.

Services available after GST login

After you log in, the gst.gov.in home page has the following options:

Login Dashboard

When you log in to the GST site, you see a dashboard on the screen.

On the dashboard page of the home page, you can see whether the last five return periods have been made or not. This dashboard page makes it easy to get to your biography, notifications, and orders with just one click. From this screen, you can also file a tax report or make a tax payment challan.

Then, you can click on the “Dashboard” tab to see the ledger balances, which are the amounts in your cash, credit, and liability ledgers, as well as the information of the turnover for any given financial year.

Services (Registration, Returns, Challan)

In addition to the services you could use before you logged in, the GST site gives you a long list of services after you log in.

(a) There is an extra way to change non-core fields of the GST application under the “Registration” tab.

How to register on gst.gov.in?

When the yearly turnover goes over the threshold limit, everyone must sign up for GST through the GST portal. The process to sign up on the government’s GST site is easy and only takes 11 steps. You can use this guide to sign up on the GST site, or you can use Clear, which is quick and easy.

(b) Under the ‘Ledgers’ tab, you can access the following:

(c) Under the ‘Returns’ tab, you can explore the following options:

(d) Under the ‘Payments’ tab, you will find these:

(e) Under the ‘User Services’ tab, you have access to the following list of services:

(f) Under the ‘Refunds’ tab, you will have the below options to choose:

Even after you log in to gst.gov.in, the rest of the tabs, like “e-Way Bill System,” “Track Application Status,” “GST Law,” “Search Taxpayers,” and “Help and Taxpayer Facilities,” give you the same choices.

Here is a list of some of the most important services you can use once you log in to the GST Portal. To see the full guide, click on the service.

• Application for Registration for Normal Taxpayer, ISD, Casual Dealer
• Application for GST Practitioner
• Opting for Composition Scheme (GST CMP-02)
• Stock intimation for Composition Dealers (GST CMP-03)
• Opting out of Composition Scheme (GST CMP-04)
• Filing GST Returns
• Payment of GST
• Filing Table 6A of GSTR-1 (Export Refund)
• Claim Refund of excess GST paid (RFD-01)
• Furnish Letter of Undertaking(LUT)(RFD-11)
• Transition Forms (TRAN-1, TRAN-2, TRAN-3)
• Viewing E-Ledgers
• Filing of GSTR-9 -Annual Return
• Filing of GSTR-9C -Reconciliation Statement

In addition to the above services, the GST Portal/ GSTN also lets you change the core and non-core fields, look through the notices you’ve gotten, file ITC forms, and engage or dismiss a GST practitioner.

How to check your GST status?

You can check the progress of your GST registration before or after you log in to your account. After 15 days, a GST registration form is processed, but you can check the progress of your GST portal registration online through the GST portal. Follow the steps in the article “How to Track GST Status” to find out everything you need to know.

FAQ on GST login

What is the list of documents required for GST registration?

Depending on the type of GST registration or how the business is set up, different papers will be needed. Read our post on “GST registration documents” for all the information you need.

When GST registration is required?

Depending on the state where their main place of business is, a person must register for GST if they make more money than the basic amount set by the GST law during the financial year.

How to get GST login ID and password?

One can get a GST login ID and password by applying for GST registration and giving information about the business, such as the name, PAN of the business, phone number, name of an authorized person, address of the main place of business, and supporting documents. If the application is accepted, an ID and password for GST login will be given.

How to get GST login details?

If someone can’t remember their current GST login information, they can always reset their password by adding some basic information, like their registered phone number or email address. A person must apply for GST registration if they want to get a new GST login.

How to create GST login ID and password?

One can get a GST login ID and password by filling out an application for GST registration and giving information about the business, such as the trade name, PAN of the business, phone number, and name of the authorized person, as well as the full address of the business’s main place of business. Supporting papers are also required. If the application is accepted, the person will be given an ID and a password for the GST login.

How to login GST portal with ARN?

Go to gst.gov.in login and click on the “Login” button in the top right corner. As a first-time user, click “Click here to log in” under the “First time” tab. Then, for GST login, enter the ARN and password that were sent to your email address.

What to do if GST login is locked?

Go to Services on the GST site and then click on “Registration. Click on “New Registration” after that. Choose “Temporary Reference Number” and click “Next” to move on. Use the OTP sent to the registered phone number and email address to check the login information for GST.

How much time for GST number?

Granting of GST number usually takes between 3-7 working days.

How to login GST with SCN number?

You can’t use a SCN number or a show cause notice number to log in to the GST site. The Service Request Number (SRN), on the other hand, can be used to check on the progress of a GST registration.

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Who does it apply to?

• To every person who supplies goods and/or services of value exceeding Rs 20 lakh in a financial year. (Limit is Rs 10 lakh for some special category states). Compulsory registration for these. And GST must be paid when turnover exceeds Rs 20 lakh (Rs 10 lakh for some special category states).
  To any person making inter-state taxable supply of goods and/or services
• Every e-commerce operator
• Every person who supplies goods and/or services, other than branded services, through e-commerce operator
• Aggregators who supply services under their own brand name
• Casual Taxable Person
• Non-Resident Taxable Person
• Person required to deduct/collect tax (TDS/TCS)
• Input Service Distributor
• Person supplying online information and database access or retrieval services from a place outside India to a person in india, other than a registered taxable person.
• Person required to pay tax under Reverse Charge
• Person supplying the goods on behalf of other taxable person (eg. Agent)
• GST does NOT apply to Agriculturists
• GST does not apply to any person engaged exclusively in the business of supplying goods and/or services that are not liable to tax or are wholly exempt from tax under this Act

What is the GST framework as per the new law?

GST is meant to replace secondary taxes like VAT, customs duty, Excise, CST, Service Tax, and Entertainment Tax with a single tax called the Goods and Services Tax.

• Broadly there will be 2 forms of GST in India.
• At the intra-state level (when goods travel within a state) and at the inter-state level (when goods travel between states).
• At the intra-state level two types of GST shall be levied CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax).
• At the inter-state level IGST (Or Integrated Goods and Services Tax) shall be levied.
• Imports shall be considered as inter-state supply.
• Exports shall be zero rated.
• Supplies to SEZ will be Zero-rated

Will the new GST allow tax cascading benefits?

Many of us know that service tax and VAT have cascading benefits, which means that you can get a credit for the tax you paid on supplies. In the case of service tax, for example, you charge service tax on the services you sell, and when you pay this tax, you can deduct the service tax you paid on the services you used as inputs. In the case of GST, this cascading benefit will also be possible.

Here is how set off works in case of GST

IGST payments can be set off against – IGST, CGST, SGST on inputs CGST payments can be set off against – IGST and CGST on inputs SGST payments can be set off against – IGST and SGST on inputs Hope our readers will find this information about GST useful. We will bring more details on the draft law which is under discussion and has not been approved yet, so you can better understand its impact on your business. To read the entire GST Bill draft, click here.

The post Understanding the basics of GST appeared first on GST Suvidha Kendras.

What is TDS? – TDS Meaning and Full Form

TDS stands for “Tax Deducted at Source.” This means that income tax is taken out of certain payments, like rent, commission, professional fees, wages, interest, etc., when they are made. Income tax is usually due by the person who earns money. But with the help of Tax Deducted at Source rules, the government makes sure that income tax is taken out of your funds before you get them. After TDS is taken out, the person who gets the money gets the net amount. The person who gets the money will add the gross amount to his income, and the amount of TDS will be subtracted from his total tax bill. The receiver gets credit for the amount that has already been taken out of his account and paid.

When should TDS be deducted and by whom?

The Income Tax Act says that anyone who makes certain payments must reduce TDS at the time of making such a payment. But TDS doesn’t have to be taken out if the person paying is an individual or HUF whose books don’t have to be inspected.

But if an individual or HUF pays more than Rs 50,000 in rent each month, TDS of 5% must be taken out, even if the individual or HUF is not subject to a tax check. Also, these people don’t need to apply for a TAN if they have to pay TDS at 5%. Your company takes out TDS at the rate for your income tax slab. Banks take out 10% TDS. Or, if they don’t have your PAN, they might take 20% off.

TDS rates are set by the income tax act for most payments, and TDS is taken out of most payments based on these rates. If you show your boss proof of your investments and your total taxable income is less than the taxable limit, you don’t have to pay any tax. And because of this, no TDS should be taken out of your pay.

In the same way, if your total income is below the taxed limit, you can give the bank Forms 15G and 15H so that TDS isn’t taken out of your interest income. If you can’t show proof to your workplace or if your employer or bank has already taken TDS out of your pay and your total income is less than the taxable limit, you can file a return and ask for a refund of this TDS. The full list of Specified Payments that can have TDS taken out of them, along with the TDS rate.

What is the due date for depositing the TDS to the government?

The government must get the Tax Deducted at Source by the 7th of the following month.

For instance:TDS that was taken out in June needs to be paid to the government by July 7. But the TDS that was taken out in March can be paid in until April 30th. When TDS is taken out of rent or the purchase of a home, the payment is due 30 days after the end of the month in which TDS was taken out.

How to deposit TDS?

The Challan ITNS-281 on the government platform must be used to pay in Tax Deducted at Source. Read our post for a step-by-step guide to making an online payment for TDS.

How and when to file TDS returns?

Tax Deducted at Source (TDS) forms must be filed by everyone who has taken TDS. The TDS return must be sent every three months, and it must include information like the TAN, the amount of TDS taken, the type of payment, the PAN of the deductee, etc. Also, different forms are needed to file returns based on the reason why TDS was taken out. Here are some different kinds of return forms: Form 26QTDS for all payments except salaries Q1 – July 31 Q2: October 31 Q3: January 31 Q4 – May 31

What is a TDS certificate?

TDS certificates include Form 16, Form 16A, Form 16B, and Form 16C. TDS certificates must be given by the person who deducts TDS to the person whose income TDS was taken out of when payment was made. For example, when TDS is taken out of the interest from a fixed account, the bank gives the depositor a Form 16A. Form 16 is given to the worker by his or her boss.

TDS credits in Form 26AS

It is important to know how your PAN is connected to TDS. TDS deductions are linked to both the person doing the deduction and the person getting the discount. If TDS has been taken out of any of your pay, you need to fill out Form 26AS. All PAN users can get this form, which is a consolidated tax statement.

Since all TDS is linked to your PAN, this form shows the details of the TDS taken out of your income by each deductor. This includes both salaries and interest income. All TDS that is related to your PAN is shown here. This form also lists the income tax you paid directly, either as advance tax or self-assessment tax. So, it’s important to put your PAN in the right place wherever TDS might be taken out of your pay.

With the ClearTDS software from ClearTax, it’s easy to make your TDS returns. It is an online TDS program that doesn’t need to be installed on a PC or updated. It makes it easy to make regular and right e-TDS statements online with just a few mouse clicks. It’s also easy to import TDS returns from earlier financial years because it works with them. Also, you can use ClearTDS to make your TDS certificates.

How to upload TDS statements

Follow the below guide for uploading TDS statements on the Income Tax Department website:

• Visit Income Tax website. Login with your TAN.
• Select e-File > Income Tax Forms > File Income Tax Forms on the dashboard
• Select the relevant form and fill in the details
• Validate the return using either DSC or EVC.

Types of TDS

Here are some types of income that are subject to TDS:

• Salary
• Payments to Contractor
• Commission payments
• Sale of House
• Insurance Commission
• Interest on securities
• Interest other than interest on securities
• Rent Payment
• Professional fees
• Online Gaming
• Winning from games like a lottery, crossword puzzle, card, etc.

SMS Alerts for Higher Transparency

The income tax department has been sending SMS messages to taxpayers from the number VK-ITDEFL. These messages say how much tax was taken out at the source (TDS) based on the taxpayer’s PAN (Permanent Account Number). Every three months, the SMS alert will let you know how much TDS was taken out of your salary, interest, etc. The amount of TDS would be added up on your Form 26AS for the appropriate fiscal year.

The Finance Ministry started this project to make things more clear and cut down on the number of TDS mismatches when paying income taxes. Taxpayers can compare the information in the SMS with the information on their pay stubs to make sure nothing is wrong. TDS mismatch may be a regular reason why people file the wrong income tax return.

Tax liability in a case where TDS is already deducted from Income

TDS is taken out of your salary based on the income tax bracket you fall into. For other types of income, the TDS rates are set and range from 10% to 20%. The tax rates don’t depend on how much money you make. So, you might have to pay a TDS on some of the money you get. You would have to figure out your annual income by adding up all of your income from all sources.

Your real tax bill would be based on the total amount of your taxed income. From the taxes you have to pay, you can get a credit for the TDS that was taken out of your different records. Subtract the tax taken out at the source from the real tax you owe to find out how much you need to pay the income tax department. You may also get money back. In either case, you must file a tax return and either pay the tax you owe or ask for a credit.

Frequently Asked Questions

1 – What is the responsibility of the person deducting tax at source?

The following are the jobs of the person who takes out TDS:

• Get the Tax Deduction Account Number and include it on all TDS-related papers.
• TDS should be taken out at the right rate.
• Pay the TDS amount to the government by the date they tell you to.
• Send in your TDS reports by the due date.
• Send the TDS document to the payee by the date you’re supposed to.

2 – At what rate the deductor will deduct TDS if I do not furnish my Permanent Account Number to them?

As per Section 206AA of the Income Tax Act​, if you do not furnish your Permanent Account Number to the deductor, then the deductor shall deduct TDS at the higher of the rate prescribed in the relevant provisions of the Act or at 20%.

3 – What is the difference between TAN and PAN?

TAN stands for Tax Deduction Account Number and PAN stands for Permanent Account Number.

The person who needs to take TDS, called the deductor, should get a TAN. In all TDS-related papers, the deductor must include the TAN.

But there is one exception: TDS on the buying of land and building under Section 194-IA does not require the deductor to get a TAN. Instead, the deductor can use the PAN to send the TDS.​

Also, when it comes to TDS on rent under Section 194-IB and TDS on payment of certain sums by individuals or HUFs under Section 194-M, the deductor can use PAN instead of TAN to send TDS.

4 – What are Sections 206AB and 206CCA?

The Finance Bill of 2021 put in place these rules for deducting and collecting income tax at the source at these higher rates if any amount is paid or due to a certain person who did not file the IT report. Section 206AB of the IT Act is about TDS. It was added after section 206AA. It lets TDS be taken out of the account of buyers at higher rates if they don’t give their Permanent Account Number (PAN). Also, Section 206CCA of the IT Act is about TCS. It was added after Section 206CC and has the same reason as above. Read our post on “Sections 206AB and 206CCA” to learn more.

5 – How many types of TDS are there?

There are several types of TDS defined by the law. To know more, read our article with a summarised table on various TDS types “TDS Rate Chart”.

6 – What is the TDS rate on salary?

TDS must be taken out of a worker’s pay at what is called the “average rate of income tax” for the year. It is written as Average pay tax rate = Income tax liability (based on slab rates) divided by the employee’s expected pay for the assessment year.

The post TDS – What Is Tax Deducted at Source – TDS Meaning, Filing, Return & Due Dates appeared first on GST Suvidha Kendras.

What is a supply under GST?

The word “supply” refers to all ways of getting things or services. It is made for a fee as part of a business transaction and includes the following:

• Sale
• Transfer
• Barter
• Exchange
• License
• Rental
• Lease
• Disposal
• Import of services for a consideration (if even it is not in the course or furtherance of business)

Why is the concept of mixed supply & composite supply important?

The GST Council has set rates for different types of items and services. In the GST Law, each type of good and service has its own GST rate. So it’s easy to figure out how much to charge for a certain good or service. But sometimes the sale of a good and the delivery of a service can be linked or can be done together even if they are not related. Take the case of a person who buys an air conditioner and also gets help installing it. The GST Act says how to rate this kind of service. So, it’s important to understand the ideas of combined supply and mixed supply. It helps figure out the right GST rate and makes sure that all of these kinds of sales are taxed the same way under GST.

What is a bundled supply?

A bundled supply is a group of things and/or services that are sold together. This idea was mostly used in service tax, where a “bundled service” meant that two or more services were sold together.

How to determine if it is naturally bundled, i.e., it cannot be separated?

In the normal course of business, the question of whether or not to bundle supplies relies on how the industry usually works. Here are a few ways to tell them apart:

• If most buyers expect these kinds of services to come as a package, the deal will be treated as if it were naturally bundled. For example, most business meetings want a hotel, an auditorium, and food all in one place.
• If most service providers in an industry offer a bundle of services, it can be said that the services are usually bundled. For example, most companies offer flights and food on board as a package. The kinds of services that make up a bundle will also help you figure out if the services are combined. If one service is the main one and the rest are just extras, it is called a “bundled service.” For example, most five-star hotels will do your laundry for free if you stay there. The main service is renting out the room. Laundry is a secondary service. Laundry services are only available to people who are staying at the hotel.

Other signs that services are being bundled in the normal process of business (but not a surefire way to spot it): Even if a customer buys less than the whole package, there is only one price. The parts are usually sold as a box. The different parts are not sold separately.

What is composite supply under GST?

Composite supply means that a supply includes two or more goods or services that are naturally bundled and sold together in the normal process of business. One of these goods or services is called the principal supply. It means that the things are most often sold together. You can’t get the things separately.

How to determine if it is a composite supply?

When the following conditions are met, a supply of things and/or services will be treated as a composite supply:

• Supply of 2 or more goods or services together; AND
• It is a natural bundle, i.e., goods or services are usually provided together in the normal course of business.
• They cannot be separated.

What tax rate will apply?

All of the supply will be taxed at the same rate as the main supply.

Example:Goods are insured while they are being packed and moved. A composite supplier includes goods, packing materials, transportation, and insurance. If there are no things to ship, insurance and shipping can’t be done separately. So, the main source is the supply of goods. The tax due is the tax on the main supplier, which is the GST rate on the goods. If the second condition isn’t met, the supply is called “mixed.”

What is mixed supply under GST?

• Under GST, a “mixed supply” is when two or more things or services are sold together for one price.
• Each of these things can be given on its own and doesn’t need the others.

Under GST, the tax rate for a mixed supply is the tax rate of the item with the higher tax rate. For example, a Diwali gift box with canned foods, sweets, candies, cakes, dry fruits, a carbonated drink, and fruit juices sold for one price is an example of a mixed supply. All of them are also sold on their own. Since the GST rate on carbonated drinks is the largest, at 28%, carbonated drinks will be treated as the main supply, and the 28% GST rate will be applied to the whole gift box.

How to determine if it is a mixed supply or a composite supply?

You must rule out the possibility that the supply is a composite source. If a supply is not also a hybrid supply, it can only be a mixed supply. If the items can be sold separately, meaning that they don’t come together naturally in the process of business, then it is a mixed supply. For example, a person does not have a mixed supply if they buy canned foods, sweets, candies, cakes, dry fruits, aerated drinks, and fruit juices separately and not in a Diwali gift box. Each item will have its own tax.

Differences between mixed and composite supplies

Time of supply

Time of supply in case of composite supply

If the main supply is a service, like flying and getting food on board, the whole thing will be treated as a service supply. The rules about when services must be given will be in effect. In the same way, the supply of goods is the main source when it comes to buying and moving goods. The combined supply will be seen as a supply of goods, and the rules about when goods can be delivered will apply.

Time of supply in case of mixed supplies

If a service has the highest tax rate, the mixed supply will be treated as the supply of services. The rules about when services must be given would be in effect. In the same way, if the highest tax rate is on goods, then the mixed supply will be viewed as a supply of goods. The rules about when services must be given would be in effect. Please read our different articles to find out more about when things and services are delivered.

Some more examples

Example 1: Booking train tickets
You are buying a ticket for the Rajdhani train, which comes with a meal. It is a group of things. It is a combination of goods that can’t be sold separately. You can’t just buy the meal on the train and not the ticket. Because of this, the main source is the transportation of people. The tax rate that applies to the main service will be applied to the whole package. So, when you buy a Rajdhani ticket, IRCTC will charge you the 5% GST rate that applies to transporting people by train.

Example 2: Buy detergent Get bucket free
Many stores give away a bucket for free when you buy soap. This doesn’t meet the second condition, which is that it can’t be sold separately, so it’s a split supply. Either just a bucket or just soap can be bought. Then, the GST will be charged at the highest rate. Since 28% is the higher rate for detergents, this rate will be used for the whole mixed package.

Example 3: Works Contract
A works contract is a mix of providing a job and giving someone something. For example, when a new building is built, bricks, cement, sand, and the work of laborers, engineers, builders, etc. all come together to make a building (a good).

It is one of the best examples of a composite source. But to escape the confusion caused by the old tax law, the GST Act makes it clear that a works contract is a service that has to be taxed at a certain rate.

Example 4: Restaurant

The business of running a restaurant includes both making food and serving it. It’s also a great example of a standard composite supply. But to escape the confusion caused by the old tax law, the GST Act makes it clear that restaurants are a service and have specific tax rates.

The post Mixed Supply & Composite Supply under GST appeared first on GST Suvidha Kendras.

What is Reverse Charge Mechanism?

Most of the time, the person who sells the good or service pays the tax on supply. Under the reverse charge system, the person who gets the things or services is the one who has to pay the tax. This means that the chargeability changes.

The goal of putting the burden of GST payments on the recipient is to tax more unorganized sectors, exempt certain types of suppliers, and tax the import of services from outside India, since the provider is based outside India.

The reverse charge mechanism only applies to certain kinds of business companies. Using the GST search tool, you can find out what kind of business any GST number belongs to.

When is Reverse Charge Applicable?

Sections 9(3), 9(4), and 9(5) of the Central GST and State GST Acts tell us what to do when there is a reverse charge for activities within the same state. Also, sections 5(3), 5(4), and 5(5) of the Integrated GST Act tell us what to do when there is a reverse charge for deals between states. Let’s talk in depth about the following situations:

A. The sale of certain things and services that the CBIC names

Section 9(3) of the CGST Acts gives the CBIC the right to make a list of goods and services that are subject to reverse charge.

B. Supply from a dealer who isn’t registered to a dealer who is registered

Section 9(4) of the CGST Act says that reverse charge would be used if a seller who is not registered for GST gives things to a person who is registered for GST. This means that the GST will have to be paid directly by the person who gets the goods, not by the person who sells them. The registered buyer who has to pay GST because of reverse charge has to bill themselves for the things they bought.

Under the reverse charge method (RCM), the person buying something must pay the CGST and SGST. Also, the buyer has to pay the IGST when they buy something from another state. From time to time, the government sends out a list of the things or services that fall under this rule.

In the real estate business, the government told promoters that 80% of their supplies should only come from registered sellers. If the sales from registered dealers are less than 80%, the promoter should pay 18% GST on the reverse charge for the amount that is less than 80% of the total inward supplies. But if the marketer buys cement from a company that isn’t registered, he has to pay tax at 28%. No matter what the 80% figure says, this calculation must be done.

On TDR or floor space index (FSI) sold on or after April 1, 2019, the producer has to pay GST on a “reverse charge” basis. Even if a landowner doesn’t run a regular business dealing with land, he or she still has to pay GST when transferring building rights to a promoter. This is because section 7 of the CGST Act considers this to be a service. Also, if a developer sells TDRs to another developer, this is called a “reverse charge,” and GST is charged at 18%.

C. Service delivery through an online business operator

E-commerce operators can be used by any kind of business to sell goods or offer services. Section 9(5) of the CGST Act says that if a service provider uses an e-commerce operator to provide certain services, the e-commerce operator will have to pay GST because of the reverse charge. This part talks about things like:

• Passengers can get rides in a radio-taxi, motor cab, maxi cab, or motorbike. For example, Ola or Uber.
• Providing accommodation services in hotels, inns, guest houses, clubs, campsites, or other commercial places meant for living or sleeping, unless the person providing the service through an e-commerce operator is required to register because their turnover is higher than the threshold limit. One example is Oyo and MakeMyTrip.
• Housekeeping services, such as plumbing and carpentry, unless the person providing these services through an e-commerce operator is required to be registered because their sales exceed the cutoff limit. For example, Urban Company offers the services of builders, electricians, teachers, beauticians, etc. In this case, Urban Company has to pay GST and receive it from the customers instead of the registered service providers.

Also, let’s say that the person who runs the online business doesn’t have a physical location in the taxable area. If that happens, anyone who works for such an online business will have to pay tax for any reason. If there isn’t one, the operator will choose one, and that person will be responsible for paying GST.

Time of Supply Under RCM

A. Time of delivery for goods

In case of reverse charge, the time of supply for goods shall be the earliest of the following dates:

• the date of receipt of goods
• the date of payment*
• the date immediately after 30 days from the date of issue of an invoice by the supplier
• If it’s not possible to figure out when the goods were given, the date of writing in the recipient’s books of account will be used instead.

Illustration:

• Date of receipt of goods 15th May 2021
• Date of invoice 1st June 2021
• Date of entry in books of receiver 18th May 2021

B. Time of supply in case of services

In case of reverse charge, the time of supply shall be the earliest of the following dates:
The date of payment
The date immediately after 60 days from the date of issue of invoice by the supplier
If it’s not possible to figure out the time of supply, the date of writing in the recipient’s books of account will be the time of supply.

Registration Rules Under RCM

Section 24 of the CGST Act, 2017 states that a person liable to pay GST under the reverse charge mechanism have to compulsorily register under GST. The threshold limits of Rs.20 lakh or Rs.40 lakh, as the case may be, will not apply to them.

Who Should Pay GST Under RCM?

Under RCM, the person who gets the goods or services should pay the GST. But according to GST law, the person who sells the things must write on the tax invoice whether or not tax is due under RCM.

The following points should be kept in mind while making GST payments under RCM:

• The ITC on the tax paid under RCM can only be used by the person who gets the goods or services if those goods or services are used for business or to help their business.
• When paying tax under RCM, a composition dealer should pay tax at the normal rates, not the composition rates. Also, they can’t get a return for any tax they already paid.
• The tax due or paid under the RCM can be affected by the GST reimbursement cess.

Input Tax Credit (ITC) Under RCM

A seller can’t get an ITC for the GST they paid under the RCM. The person who gets the goods or services can get an ITC on the GST amount paid under RCM, but only if the goods or services are used or will be used for company.

The person who receives the goods or services can’t use the ITC to pay the output GST on those goods or services. Instead, they should be paid in cash.

What is Self Invoicing?

When you buy something from a supplier who isn’t listed, you have to send yourself an invoice. This is called reverse charge. This is because your seller can’t send you an invoice that meets GST requirements. Because of this, you have to pay taxes on their behalf. So, in this case, self-invoicing is required.

Also, section 31(3)(g) says that a recipient who is required to pay tax under sections 9(3) or 9(4) must give a payment voucher to the seller when paying the supplier.

How ClearTax Helps With Self Invoicing?

With ClearTax GST software, it’s easy to make your own bills. You just need to do the following:

Step 1 – Login to ClearTax GST → ‘‘Create and View Invoices’ → ‘‘Choose a Business’’ → ‘Invoices’ → ‘‘Purchase’’ → then click on ‘‘+ New Purchase Invoice’’ to create a new invoice.

Step 2: As you can see, you need to fill out more than one area with information. Let’s look at each field in more depth:

• Put the bill’s serial number in the space that says “Invoice Serial Number.” Since your provider hasn’t given you an invoice and you’re making one for them, you need to add a serial number yourself. For easier billing, you can make and keep track of a set of serial numbers for reverse charge bills.
• Type in the ”Invoice Date”. The time of availability must be used to set this date.
• Enter any information, like the order number, in the “Reference Number” box.
• Under “Due Date,” you have to write the date by which you have to pay the seller for the item you bought (but you don’t have to write this date).
• Under “Vendor Name,” type the name of the vendor. Remember that this name can’t be your own, even if you’re self-billing under the reverse charge system. If the name of the seller is not already set, you can add a new one.
• Type in the information of the goods or services you bought.
• Under “Advanced Settings,” choose “Reverse Charge” from the drop-down menu.
• Now, fill out all the information on your computer.

Step 3 – After filling in all the other details, click on Save.

The post Reverse Charge Mechanism (RCM) under GST appeared first on GST Suvidha Kendras.

What are the indirect taxes that GST has replace?

It is meant to be a standard tax for the whole country. It will replace the following indirect taxes that the Centre and the State used to charge:

Taxes that the Center charges and collects:

• Central Excise duty
• Additional Duties of Customs (commonly known as CVD)
• Special Additional Duty of Customs (SAD)
• Service Tax

Taxes levied and collected by the State:

• State VAT
• Central Sales Tax
• Entertainment and Amusement Tax (except when levied by the local bodies)
• Taxes on lotteries, betting and gambling

What is the framework that the GST follows?

India will use the dual form of GST, just like countries like Canada and Brazil. CGST (Central items and Services Tax) and SGST (State Goods and Services Tax) will be charged when items and services are sold within the state. The Integrated items and Services Tax (IGST) will be charged when items and services are sold into other states. Importing things will be subject to IGST because it will be seen as a supply between states. Basic customs duty will also be charged on things that are brought in. But exports and goods to SEZ will not be taxed.

Benefits of GST

As was already said, GST will create a single tax system for the whole country. This will help get rid of the tax result of taxes going up and up. The term “cascading effect” refers to having to pay taxes on taxes. With GST, this won’t happen anymore because the unified tax will bring all secondary taxes under one roof. Another important benefit of GST is that the input tax credit can be used on both items and services, which gets rid of the cascading effect. Since there won’t be a separate VAT and service tax, GST will also make it easier to file and pay taxes. Read our piece to find out how GST can help you.

Who are the taxable persons under GST?

The short answer is anyone who runs a business in India and is registered or has to be registered under the GST Act.
Registration for GST is required, among other things, for:

• Any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs for North Eastern and hill states)
• An input service distributor
• An E-commerce operator or aggregator
• A person who supplies via e-commerce aggregator

What is a GSTIN?

GSTIN stands for the GST identification number that will be given to every business. A 15-digit Goods and Services Taxpayer Identification Number (GSTIN) will be given to each taxpayer based on his or her PAN and the state in which they live. Also, keep in mind that you must have a PAN in order to sign up for GST. It’s easy to sign up for GST, and our piece walks you through the steps.

What is Reverse Charge?

Most of the time, the tax is paid by the person who sells the goods. Sometimes, the tax is paid by the person who buys the goods. This is called “reverse charge” because the tax gets paid backwards. This was already the case before GST, when VAT was in place, but it only applied to services. Now, under the GST, it will also apply to goods.

What happens to mixed supply and composite supply under GST?

Under GST, a new idea called “mixed supply” and “composite supply” has been added. This will cover all goods made at the same time, even if they have nothing to do with each other. This idea is kind of like the package services that used to be available. The only thing that is completely new is the idea of mixed supply. Let’s look at these things in more depth. A composite supply is a bundle of two or more things or services that are sold or given away together. Only one of these things can be the main source of supply, but they can’t be sold separately. This is where the idea of a “compound supply” comes in. For example, when things are packed, shipped, and insured, the goods, packing materials, shipping, and insurance are all part of a composite supply. If there are no things to ship, insurance and shipping can’t be done separately. So, the main source is the supply of goods. A taxable person makes a mixed supply when they sell two or more different things or services at the same time for the same price. Each of these things can be given on its own and doesn’t need the others. A mixed supply is, for example, a box of canned foods, sweets, chocolates, cakes, dry fruits, carbonated drinks, and fruit juices that is sold for one price. Each one can be sold on its own. Since the GST rate on carbonated drinks is the highest, at 28%, carbonated drinks will be considered the main source. To learn more, read our piece on mixed and composite supplies.

What is continuous supply?

A continuous supply is when things and services are offered or given out on a regular basis (every two weeks, every month, etc.) and payments are also made on a regular basis. For example, a telecom and internet company will have a steady supply because they have been doing business for a long time and get paid every month or three months.

What is a compliance rating?

The GST compliance rating is a success grade given to all taxpayers who are registered. This grade tells you how well the supplier will follow the rules for GST. This lets the buyer choose the seller based on how well they follow GST rules. Based on the type of business, the rating system can be made on a range from 1 to 10, with 10 being the most complaints and 1 being the least.

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The post What is Goods and Services Tax (GST)? appeared first on GST Suvidha Kendras.

Here’s a step-by-step guide on how to pay taxes on the Income Tax Portal without logging in:

Step 1: Navigating to ‘e-Pay Tax’ Section

• Go to the Income Tax Website.
• Find the ‘Quick Links’ area on the left side of the homepage.
• Click on “e-Pay Tax” or type “e-Pay Tax” into the search bar to find it.

Step 2: Enter PAN/TAN and Mobile Number

• Enter your PAN, and then enter it again to make sure.
• Enter your phone number, then click “Continue.”

• Enter the 6-digit OTP that was sent to your phone, and then click “Continue.”

Step 3: Select the correct Assessment Year and Payment Type

• Select the box that says “Income Tax” and then click “Proceed.”

• Choose “2023-24” from the “Assessment Year” drop-down menu.
• Choose “Self-Assessment Tax (300)” under “Type of Payment” and click ‘Continue’.

Step 4: Enter Tax Payment Details

• Enter the correct amounts for each payment under the correct headings.
• For the right numbers, you can look at the pre-filled challan on Cleartax.

Step 5: Select the Payment Method

• Select the payment method and bank you want to use to pay your taxes, then click “Continue.”
• You can pay with online banking, a debit card, a credit card, RTGS/NEFT, UPI, or at the bank counter.

Step 6: Verify Payment Information

• After you click “Continue,” you can look over the terms of the challan.
• Check the payment information twice to make sure it’s correct.
• Click “Pay Now” to pay, or “Edit” to change the information.

Step 7: Submit the Payment

• To agree to the Terms and Conditions, click the box.
• To continue with the payment, click “Submit to Bank.”

Step 8: Receive Payment Confirmation

• Once your tax payment has been properly sent, you will get a confirmation.

Note: Don’t forget to download the challan because you’ll need the BSR code and Challan number to finish making the return.

Step 9: Declaring Tax Paid Details

• After you pay the tax, you should change the information about the payment on Cleartax.
• Go to the ‘Tax Summary’ page and click on ‘Add Paid Tax Details’.

• You can upload the challan or type in the information by manually.

• When you’re done, your status will change to “taxes paid.”
• Go to Cleartax to e-file and e-verify your return.

Banks Authorised for e-Tax Payment

Here is an updated list of banks that can be found on the e-filing site for e-payment of taxes as of April 28, 2023:

• Axis Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• City Union Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Indian Bank
• Indian Overseas Bank
• IndusInd Bank
• Jammu and Kashmir Bank
• Karur Vysya Bank
• Kotak Mahindra Bank
• Punjab National Bank
• Punjab & Sind Bank
• RBL Bank
• State Bank of India
• UCO BANK
• Union Bank of India

Benefits of e-Tax Payment

Having the option to pay taxes online has definitely made paying taxes a lot easier. Some of the benefits of e-Payments are the following:

• It saves time and can be done at a person’s own convenience, avoiding long lines.
• Tax department records are instantly updated, so the taxpayer doesn’t have to do anything else to make sure that records are up-to-date.
• Instantaneous receipt of tax payment
• Checking the progress of a tax payment can be done online.

Eligibility for e-Tax Payment

From April 1, 2008, the following taxpayers have to pay their taxes online:

• All the corporate assesses.
• All assesses (other than company) to who the provisions of section 44AB of the Income Tax Act, 1961 are applicable.

Self-Assessment Tax

You can’t give your tax return to the tax department until you’ve paid all of your taxes. When you file your tax return, you may see that you owe tax. This tax is called self-assessment tax, and you can pay it online to make sure your e-filing goes through.

If you pay your tax after March 31, you should also pay the interest due under Sections 234B and 234C. When you e-file your tax return with Cleartax, our system will tell you how much tax you need to pay. You can also have a CA check your return to make sure you paid the right amount.

Advance Tax

If your yearly tax bill is more than Rs 10,000, you must pay income tax in advance. Usually, TDS reductions take care of these income tax payments for salaried people.

Situations When You Have to Pay Advance Tax:

• You are salaried but have high income from interest or capital gains or rental income
• You are a freelancer
• You are running a business

How to Calculate and Pay Advance Tax?

Add up all of your cash. Include things like pay, interest, capital gains, etc., just like when you file your income tax return. If you work as an independent, add up all the money you make from all your clients in a year and subtract the money you spend. Rent for your office, internet bills, cell phone bills, computer depreciation, trip costs, etc. are some expenses. Find out more about freelancing and taxes.

How to Determine and Allow Deductions

On your tax return, you take your total income less any expenses you want to claim. This gives you your taxable income. Section 80C, 80D, 80E, or any other benefits you want to claim Sections 80C, 80CCC, and 80CCD have more information.

How to Calculate Tax Due on Total Income

Use your taxable income and the most recent income tax slab rates to figure out how much income tax you owe. Reduce your total tax due by any TDS that may have been taken out. And make sure you’ve paid based on these schedules. You can pay for these things on the Internet.

Our CAs can calculate your advance tax liability and help you with paying it online. Seeing a large tax outgo? Don’t worry, our CAs can help calculate your freelancing income and make sure your taxes are optimized.

Due Dates of Payment of Advance Tax for FY 2022-23

Non-payment of advance tax can result in penal interest levy under sections 234B and 234C.

Outstanding Demand Payment

An income tax demand letter may tell you that you need to pay your income tax. You can pay the claim online if you agree with the assessing officer and are ready to do so. It’s also known as the normal assessment tax.

Frequently Asked Questions

What is included in my total tax payable during a year?

You figure out how much income tax you owe by adding up all of your income, taking any deductions that apply, figuring out how much of your income is taxable, and then calculating your taxes at the rates that apply to your income slab. Next, a 10% surcharge would be added to your taxes if your income was between Rs 50 lakh and Rs 1 crore. If your income was more than Rs 1 crore, a 15% surcharge would be added. Also, a health and education cess of 4% of the taxes owed (plus any fees) will have to be added. If you make less than Rs 5 lakh in a year, you can get a refund under Section 87A up to Rs 12,500 or the amount of taxes you owe, whichever is less.

Is it necessary for me to pay taxes online? If not, how can I pay for it?

The law says that only companies and individuals who are subject to an audit under Section 44AB must pay their taxes online. The rest of the people can pay their taxes in cash by giving the challan to certain banks. However, you can also pay online, which is easy and saves you time.

Are there any benefits of paying taxes online?

Definitely. E-payment not only saves time, but you can also use it at any time and from anywhere. Also, when taxes are paid in person, the government doesn’t get credit for them until at least the next day. When taxes are paid online, the government gets credit right away.

What are the prerequisites for paying my taxes online?

For e-payment of taxes, make sure you are connected to the internet and that your bank account is set up for internet banking. If you don’t have online banking, you can pay someone else using their online banking account. To get the credit, you must make sure that the taxes are paid in your name and against your PAN.

What all taxes can be paid electronically?

Almost all taxes can now be paid online. The following taxes can be paid online:

a. Income tax
b. Corporate tax
c. TDS (Tax Deducted at Source)
d. TCS (Tax Collected at Source)
e. Securities Transaction Tax (STT)
f. Equalisation levy

What to do when you have selected the wrong assessment year while paying tax?

Even if you are careful when paying your taxes, you may still make a mistake, like picking the wrong assessment year when you pay. Most of the time, people make this kind of mistake because they don’t know what the term “assessment year” means. The term “assessment year” refers to the year that your taxes are calculated. To be exact, it is the year after the year you are paying taxes for. If you are paying taxes for the years 2021–22, the assessment year for this tax will be 2022–23. If you picked the wrong year for the exam, do the following:

Step 1: Put the information about your payment on your income tax return for the year, even if the assessment year you chose when you paid your taxes was wrong.
Step 2: Ask your local scoring officer to fix the mistake on the challan with the wrong assessment year. On the income tax department’s e-filing page, you can find information about your assessing officer. If you just made the payment, you have 7 days from the date of the deposit to ask the bank to fix the challan.
Step 3: When the assessing officer (AO) looks at your tax returns, he will most likely send you a warning because the details of your payments do not match the records.
Step 4: Write back to the AO and explain what went wrong with your tax payment.
Step 5: Send in a request to fix something under Section 154.
Step 6: If the AO agrees with your request for a change, he or she can make the necessary changes to your tax return. Once your return is accepted, the AO will make any changes that need to be made and then close it.

The post How to Pay Your Income Tax Challan Online? appeared first on GST Suvidha Kendras.