Goods & Service Tax

GST or Goods and Services Tax, replaced the numerous different taxes which were levied by Central and State governments on different products or services. While it was enforced in 2017, the GST Act was passed in the year 2019. This taxation system intends to streamline the numerous taxes levied on products, making it simple for the taxpayers, their collectors, etc A GST return is a document containing details of all income/sales and/or expenses/purchases that a GST-registered taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability. What is GST Return and GST Return Filing A GST Return is a legal document persisting GST invoices, receipts, payments, etc., of a certain period. It is a collection of all the details of income, sales, expenses, and purchases of a GST-registered taxpayer. The main parts of a GST return include- Purchases Sales Output GST (on sales) Input tax credit (GST paid on purchases) All businesses registered under the Goods and Service Tax (GST) are liable to file GST returns monthly, quarterly, and annually on the basis of the business. While filing the GST return, it is mandatory to provide the respective details about the sales or purchases of the goods and services together with the amount of tax that is collected and paid. For filing the GST returns, one has to file 4 forms that may include the returns for the purchases made, returns for the supplies, monthly/annual returns, etc. The government has made GST return filing in India compulsory for all such entities that carry a legit GST registration. Types of GST Returns and GST Return Filing Due Dates There are quite a few types of GST filing which have their specific forms. These forms are listed below in the chart with the due dates for filing the GST returns- Form Name Applicable Entrepreneurs GST Filing Dates GSTR-1 Taxable suppliers to file outward supplies. 10th of next month GSTR-2 Taxable recipients to file inward supplies to claim tax credit. 15th of next month GSTR-3 Taxable individuals file monthly returns based on finalisation of outward and inward supplies along with tax amount payment. 20th of next month GSTR-4 Composition suppliers to file quarterly returns. 18th of next month GSTR-5 NRIs who are taxable. 20th of next month GSTR-6 Input service distributor to file for return. 13th of next month GSTR-7 Authorities conducting TDs to file return. 10th of next month GSTR-8 Tax collectors and e-commerce operators to file supply details and tax collection detail. 10th of next month GSTR-9 Taxable individuals to file return. 31st December of next year GSTR-10 Taxable individuals with cancelled registration to file final return. Within 3 months of cancellation of order GSTR-11 Individuals with UIN refund claims to file inward supply detail. 28th of the month following the month for a statement was filed Who should file GST Returns? Under the GST regime, regular businesses having more than Rs.5 crore as annual aggregate turnover (and taxpayers who have not opted for the QRMP scheme) have to file two monthly returns and one annual return. This amounts to 25 returns each year.  Taxpayers with a turnover of up to Rs.5 crore have the option to file returns under the QRMP scheme. The number of GSTR filings for QRMP filers is 9 each year, which include 4 GSTR-1 and GSTR-3B returns each and an annual return. Note that QRMP filers have to pay tax on a monthly basis even though they are filing returns quarterly. There are also separate statements/returns required to be filed in special cases such as composition dealers where the number of GSTR filings is 5 each year (4 statement-cum-challans in CMP-08 and 1 annual return GSTR-4). GSTN GSTN, or Goods and Services Tax Network, is an online portal containing all the details of sellers and buyers registered under GST’s regulation. Businesses and taxpayers can access these details from the GSTN for filing their returns, logging invoice data, etc. Companies have to file a total of 37 returns, one annual return and 3 monthly returns (once every 3 months) during a financial year. These contain information, including details of inward and outward supplies instigated by an organisation.  FAQs What is GST Return? A GST Return is a document that contains details of income, purchases, sales, and the output tax liability that a business must file under the Goods and Services Tax (GST) law. It is a periodic declaration that businesses make to the GST department to report their transactions and pay taxes. What Types of GST Returns Are There? GSTR-1: Used to report outward supplies (sales) made by the business. GSTR-2A: A system-generated return showing the details of inward supplies (purchases) of the taxpayer. GSTR-3B: A summary return filed for the payment of GST, detailing both sales and purchases, and the tax liabilities. GSTR-4: Filed by businesses registered under the Composition Scheme to report quarterly returns. GSTR-5: For non-resident foreign taxable persons. GSTR-6: For Input Service Distributors (ISD). GSTR-7: For tax deductors (TDS) under GST. GSTR-8: For e-commerce operators who collect TCS (Tax Collected at Source). GSTR-9: Annual return for regular taxpayers. GSTR-10: Final return to be filed when a business is discontinued or its GST registration is canceled.

Reverse charge mechanism (RCM) under GST refers to the situation where the liability to pay tax for the supply of goods or services shifts from the supplier to the recipient, particularly in specific cases involving purchases from unregistered dealers. This mechanism aims to broaden tax collection, especially in unorganised sectors, and covers certain services imports. What is Reverse Charge Mechanism? The supplier of goods or services pays the tax on supply. Under the reverse charge mechanism, the recipient of goods or services becomes liable to pay the tax, i.e., the chargeability gets reversed. The objective of shifting the burden of GST payments to the recipient is to widen the scope of levy of tax on various unorganized sectors, to exempt specific classes of suppliers, and to tax the import of services (since the supplier is based outside India). Reverse Charge Mechanism Example Example 1 XYZ Pvt Ltd, a registered company, purchases raw cashews worth ₹50,000 from an unregistered farmer. Since the farmer doesn’t charge GST, XYZ Pvt Ltd is responsible for paying GST under RCM. The company calculates 5% GST, amounting to ₹2,500, and pays it directly to the government. It later includes this amount in its GST liability when filing tax returns. Example 2 An SME registered under GST hires an unregistered freelancer for website design services worth ₹20,000. Since the freelancer doesn’t charge GST, the SME is responsible for paying it under RCM. The SME calculates 18% GST, amounting to ₹3,600, and pays it directly to the government. It later includes this amount in its GST liability when filing tax returns. Different Types of Reverse Charges Under GST 1. Forward Charge In a forward charge scenario, the supplier collects the tax from the customer and then pays it to the tax authorities. For example, if a car manufacturing company sells auto parts worth ₹1,00,000 to a trader, it collects GST from the trader and later pays it to the government. This is the standard process for most transactions under GST. 2. Backward Charge The reverse charge or backward charge method is less common but is used in specific situations to ensure tax compliance and increase tax revenues. Under the GST reverse charge, the recipient of the service becomes responsible for paying the tax directly to the government. For example, if a chartered accountant provides professional services worth ₹50,000 to a client, it is the client who is liable to pay GST under this mechanism. Several services fall under reverse charge on GST: Goods transport agency (GTA) services Legal services Rent-a-car services Manpower supply services Import of taxable services Security services Service portion in execution of works contract Sponsorship services When is Reverse Charge under GST Applicable Supply from Unregistered or Registered Dealers –  Reverse Charge will occur if a seller who is not registered for GST supplied products to an individual who is registered for GST. This ensures that the GST would have to be billed directly to the government by the recipient rather than the seller.  The licensed dealer who is required to pay GST under reverse charge must self-invoice for sales made. The customer would pay IGST on interstate sales. The customer must pay CGST and SGST on intra-state purchases under RCM. Services through eCommerce Operators – Where an e-commerce operator provides facilities, the e-commerce operator would be subject to a reverse charge. He would be required to pay GST.  For eg, UrbanClap offers the services of plumbers, electricians, teachers, beauticians, and other professionals. Instead of licensed service providers, UrbanClap is required to pay GST and receive it from consumers. If the e-commerce operator does not have a physical presence in the taxable jurisdiction, a person representing such an e-commerce operator for any reason must pay tax. If there is no official, the operator will nominate one who will be responsible for GST. CBEC-specified supply of such goods and services – The CBEC has published a list of products and services that are subject to a reverse payment. This case is reversed when the individual purchasing the goods and services is required to pay taxes. If the recipient purchases products from an unregistered provider, GST must be charged on their behalf. The retailer must give a payment voucher to the receiver. According to Section 2(94) of the CGST Act, 2017, the recipient must be a registered individual. According to Section 2(98) of the CGST Act of 2017, a “reverse charge” is the obligation to pay tax by the purchaser of delivery of products or services or both rather than the seller of those goods or services or both. Who Needs to GST in Reverse Charge Mechanism According to GST rules, the person supplying the goods must indicate on the tax invoice whether or not tax is payable under the RCM. When making GST payments under RCM, keep the following points in mind: The ITC on the tax amount paid under RCM can be claimed by the recipient of goods or services only if such goods or services are utilised for business or furthering of business. When discharging duty under RCM, a composition dealer shall pay tax at the regular rates, not the composition rates. They are also ineligible to claim any input tax credit for taxes paid. The GST compensation cess can be applied to the RCM tax payable or paid. Current RCM under GST In the current situation, the reverse charge process is used in service tax for utilities such as insurance agents, manpower supply, and goods transport agencies, among others. In contrast to the Service Tax, there is no definition of a partial reversal fee. The recipient would pay the full amount of tax on the supply. Previously, it was difficult to raise service tax from the various unorganized markets, equivalent to goods transportation. The attempt has been made to position the facilities in accordance with the current system, and as a result, compliance and tax revenues can be improved by the reverse charge process.  The reverse fee is now available on all goods and services. Goods supplied under the

Travel expense is an unavoidable element of conducting business in today’s globalized world. Employees frequently travel to different places to attend meetings, conferences, training sessions, or fulfill various professional duties. These costs typically include transportation, lodging, meals, and other incidental expenses. Employers usually establish reimbursement policies to offset these costs and allow employees to recover the funds they have spent out of their own pocket. However, the reimbursement of travel expenses becomes more complex when considering Goods and Services Tax (GST). The applicability of GST to the reimbursement depends on the nature and circumstances of the incurred expenses What does reimbursement of expenses mean? Travel expense reimbursement involves compensating employees for the costs they personally incurred during a business trip. Such costs typically cover transportation, meals, accommodation, and other services directly associated with the business objectives of the trip. While employers can claim reimbursement costs as tax deductions, employees are generally unable to deduct these expenses. To receive reimbursement, employees must furnish proper documentation substantiating that the expenses were indeed business-related. Examples of travel expenses that can be reimbursed: Airfare, train fare, bus fare, taxi fare, or car rental fees for traveling to and from the destination Mileage allowance or fuel costs for using a personal vehicle for business travel Parking fees, tolls, and other transportation-related expenses Hotel charges for overnight stays Meals and incidental expenses (such as tips, laundry, phone calls, etc.) within reasonable limits Conference fees, seminar fees, or other professional development costs Reimbursement of expenses refers to the repayment of money spent by a person. In business transactions, this usually happens when a supplier incurs expenditure on behalf of the recipient who is supposed to incur the said expenditure. There are two types of expenses that may get reimbursed to the supplier under GST: Incidental expenses incurred by the supplier in the course of supply. This could be in the form of commission, packing, travelling expenses, etc., and form a part of the supply value. These expenses are usually incurred before or at the time of delivery of the goods or supply of the services. Expenses that the supplier incurs as a pure agent. These are expenses that the supplier has incurred on behalf of the recipient but do not form a part of the supply value. Examples include registration fees or taxes paid to the government, transportation charges paid to a third-party transporter that the recipient has authorised the supplier to incur, etc.  What is the difference between reimbursement and allowance? Reimbursement involves the employer compensating the employee for verified expenses related to travel, medical care, or education. The employee must furnish receipts or other evidence of the expenditure. This form of compensation is not classified as income and remains non-taxable for the employee. On the other hand, an allowance is a fixed sum that the employer provides to the employee in advance or alongside their salary, irrespective of whether the anticipated expense is incurred. No proof of the expense is required from the employee. Unlike reimbursement, allowances are considered as income and are subject to taxation for the employee unless specific conditions exempt them. What is the impact of GST on reimbursement of expenses? All reimbursements of expenses shall form a part of the value of supply, except when incurred as a pure agent. To break this down- Section 15 of the CGST Act provides that the value of a supply of goods or services or both shall be the transaction value. This is the price paid or payable for the supply of these goods or services and applies where the supplier and the recipient are not related, and the price is the sole consideration for the supply. Section 15(2) clause (c) states that any incidental expenses charged by the supplier to the recipient and any other amount charged for anything done during the supply until the time of delivery of the goods or supply of the services shall be included in the value of the supply. Hence, any goods or services provided by the supplier, for which a consideration is charged from the recipient, shall be included in the transaction value and chargeable to tax. With regard to reimbursement of expenses incurred as a pure agent, Rule 33 of the CGST valuation rules provides that any expenditure incurred as a pure agent will be excluded from the value of supply, and hence, from the aggregate turnover as well. However, the supplier will need to satisfy the following conditions for the exclusion from the value of supply:  The supplier acts as a pure agent of the recipient when he makes a payment to a third party after authorisation by such recipient. The payment that the pure agent made on behalf of the recipient is indicated separately on the invoice issued by the pure agent to the recipient.  The supplies procured by the pure agent from the third party are in addition to the supplier supplies’ services on his account. GST on Reimbursement of Travel Expenses GST Rates for Travel Services: Without the option of Input Tax Credits (ITC), a 5% GST is applied to the gross tour price. With ITC, an 18% GST rate is applied. Place of Supply for Travel Services: The location of the service provider, the recipient, and the nature of the service determines the place of supply. For example, in hotel reservations, the place of supply is the city where the hotel is located. GST Implications for Reimbursement of Travel Expenses by Employers to Employees: Employers can claim a GST credit if they reimburse employees for taxable expenses related to business activities. Reimbursement from another party may be subject to GST or exempt, depending on the nature of the reimbursement. GST Implications for Reimbursement of Travel Expenses by Service Providers to Clients: Expenses incurred on behalf of a client during the supply of taxable services are excluded from the value of supply for tax purposes under certain conditions. Conditions include acting as a pure agent, indicating the payment separately in

The government announces GST return filing due dates from time to time to maintain taxation in line with respective clearance. Also, the main effort is to alert the taxpayers regarding the GST return filing due dates to make them neglect any penalty or interest.the GST due dates calendar of October 2024 for all the registered taxpayers under the indirect tax regime to make them aware of the time period of when to get their GST return filing done on time. GST Return Form Name Filing Period Due Date in October 2024 GSTR 07 Monthly (September 2024) 10th October GSTR 08 Monthly (September 2024) 10th October GSTR 01 (T.O. more than 1.5 Crore) Monthly (September 2024) 11th October GSTR 01 (T.O. upto 1.5 Crore) Quarterly (July – September 2024) 13th October IFF Optional Monthly (September 2024) 13th October GSTR 5 Monthly (September 2024) 13th October GSTR 06 Monthly (September 2024) 13th October CMP-08 Quarterly (July – September 2024) 18th October GSTR 3B Annual Turnover of more than INR 5cr in Previous FY Monthly Filing – September 2024 20th October GSTR 3B Upto than INR 5cr(But Opted Monthly) Annual Turnover of up to INR 5cr in Previous FY Monthly Filing – September 2024 20th October GSTR 5A Monthly (September 2024) 20th October GSTR 3B (G1) Quarterly (July – September 2024) 22nd October GSTR 3B (G2) Quarterly (July – September 2024) 24th October GSTR 9 & 9C FY 2023-24 31st December 2024 GST RFD-10 Form End of 18 Months Taxpayers will be eligible to claim the GST refund at the end of 18 months of the particular quarter Why Filing of GST returns is important? The filing of GST Returns has manifold importance,such as For Return Filer Necessary to adhere the legal compliances Helps in calculating the correct tax liability of self and others A tool for claiming ITC For Government Source for collecting Financial Statistics of Organisations Scrutinize the relevant cases effectively and efficiently A basis for future policy making Helps in making the future compliance procedures Evasions can be better tracked Effective mode of procuring information from the taxpayers Interest on Late GST Payment and Penalty on Missing GST Return Due Dates The GST Council has decided to levy interest of 18 percent on the late payment of taxes under the GST regime. The interest would be levied for the days for which tax was not paid after the due date. You can read more details of the GST penalty provision in chapter 10, part 50 at this link  https://cbec-gst.gov.in/CGST-bill-e.html Let’s understand this by an example:  If the total tax liability of a person is Rs. 1,000 and doesn’t pay tax continuously for a few days after the due date, then the interest amount will be calculated as 1000*18/100*1/365= Rs. 0.49 per day at approx. So, the person will have to pay this much interest each day after the due date. In case if a taxpayer does not file his/her return within the due dates mentioned above, he shall have to pay a late fee of Rs. 50/day i.e. Rs. 25 per day in each CGST and SGST (in case of any tax liability) and Rs. 20/day i.e. Rs. 10/- day in each CGST and SGST (in case of Nil tax liability) subject to a maximum of Rs. 5000/-, from the due date to the date when GST forms, GSTR 1 GSTR 3B GSTR 4 GSTR 5 GSTR 6 GSTR 9 are actually filed. FAQs What are GST returns? GST returns are official documents that include details of income, sales, expenses, and purchases that a registered taxpayer must file with the tax authorities. These returns help in determining the tax liability of the taxpayer under the Goods and Services Tax (GST) law. What are the different types of GST returns? GSTR-1: Details of outward supplies (sales) of goods and services. GSTR-2A/2B: Auto-populated details of inward supplies (purchases) made. GSTR-3B: Summary return for the payment of tax. GSTR-4: For composition scheme taxpayers. GSTR-9: Annual return. GSTR-10: Final return when GST registration is cancelled.

By utilizing this software, companies simplify the task of generating GST invoices that comply with GST regulations and ensure compliance with essential requirements. It accurately calculates GST on every purchase, keeps records of GST payments and makes it easy to submit GST returns quickly. What are the features of GST Billing Software? GST invoices can be created instantly by simply selecting customer, products and applicable GST rate (can also be customized if needed) GST returns can be prepared easily JSON files can be created within the software (JSON files are required while filing GST returns and refunds) Backups are automatically taken to minimize misplacing of data What are the Benefits of GST Billing Software? Quicker and Efficient Processing of GST Payments By leveraging automated templates and features within GST invoicing software, businesses can create and send invoices efficiently. In addition, the software provides clients with various payment options, which speeds up the payment collection process and improves overall cash flow management. Compliance with Government Regulations Keeping up with the ever-changing GST regulations can be a challenge. GST invoicing software is built to stay up-to-date with the latest tax regulations and rates, helping businesses comply with GST requirements and mitigating potential penalties and legal complications. Real-Time Tracking GST invoicing software provides instant access to business transactions, tax liabilities and outstanding payments, enabling businesses to effectively monitor their financial health and make informed decisions with accurate data. Real-Time Tracking Experience flawless invoicing by easily incorporating various components of GST (such as CGST, SGST, IGST and more) to suit your specific needs with GST invoicing software. Ensure GST compliance for all your invoices and simplify your GST return filing process with a user-friendly GST invoicing software solution. Error Free Billing Process GST invoicing software provides instant access to business transactions, tax liabilities and outstanding payments, enabling businesses to effectively monitor their financial health and make informed decisions with accurate data. Smooth Integration Numerous GST invoicing software solutions offer integration options with accounting and inventory management systems, enabling seamless and easy connectivity that minimizes the need for manual data entry and maintains consistency across different business operations. FAQs What is GST billing software? GST billing software is a digital tool that helps businesses generate invoices compliant with the Goods and Services Tax (GST) regulations. It automates the process of creating GST invoices, tracking payments, and managing tax returns, ensuring accuracy and compliance with Indian tax laws. Why should I use GST billing software? Using GST billing software simplifies the tax process for businesses by automating invoice generation, calculating GST amounts, managing tax filings, and maintaining records. It reduces manual errors, saves time, and ensures compliance with GST regulations.

GST state codes are unique two-digit alphanumeric codes assigned by the government to each state and union territory in India. GST state code is represented by numbers serially assigned to every state and Union Territory. As an example, GST state code 07 represents Delhi. Whereas, GST state code 29 represents Karnataka. For a simpler understanding, the GST state code is mentioned in the Goods and Services Tax Identification Number (GSTIN). It is a unique 15-digit number provided by the government to any registered person or business entities under the Goods and Services Tax (GST) regime. GST State Code List of India STATE NAME GST CODE JAMMU AND KASHMIR 01 HIMACHAL PRADESH 02 PUNJAB 03 CHANDIGARH 04 UTTARAKHAND 05 HARYANA 06 DELHI 07 RAJASTHAN 08 UTTAR PRADESH 09 BIHAR 10 SIKKIM 11 ARUNACHAL PRADESH 12 NAGALAND 13 MANIPUR 14 MIZORAM 15 TRIPURA 16 MEGHALAYA 17 ASSAM 18 WEST BENGAL 19 JHARKHAND 20 ODISHA 21 CHATTISGARH 22 MADHYA PRADESH 23 GUJARAT 24 DADRA AND NAGAR HAVELI AND DAMAN AND DIU (NEWLY MERGED UT) 26* MAHARASHTRA 27 ANDHRA PRADESH(BEFORE DIVISION) 28 KARNATAKA 29 GOA 30 LAKSHADWEEP 31 KERALA 32 TAMIL NADU 33 PUDUCHERRY 34 ANDAMAN AND NICOBAR ISLANDS 35 TELANGANA 36 ANDHRA PRADESH (NEWLY ADDED) 37 LADAKH (NEWLY ADDED) 38 OTHER TERRITORY 97 CENTRE JURISDICTION 99 Where do we need State Code in GST? (1) GST registration Accurate and complete details must be entered by the applicant to obtain a valid GST registration. One such crucial information is the state and central jurisdictions for primary place of business. The information given by the taxpayer is verified by the officer. Thereafter, the applicant is allotted a GSTIN containing the relevant GST state code. (2) GST invoice and e-Invoicing GST state code becomes relevant for accurate invoicing and e-invoicing under GST. Valid GSTINs of buyer, seller and consignee contain the relevant state codes which are used to identify the place of supply of such sale. Eventually, place of supply decides type of GST to be charged based on whether it’s an interstate or intrastate sale. Suppose, a seller mentions buyer’s GSTIN with a wrong GST state code on the invoice. Then, it may lead to wrong charge of IGST instead of CGST and SGST or vice versa with an incorrect place of supply being picked up. If the seller happens to comply with e-invoicing by law, it can lead to cancellation of IRN due to incorrect state code GST and the need to raise invoice once again. (3) GSTR-1 and GSTR-3B return reporting Regular taxpayers must report B2B invoice details, including GSTIN, in the GSTR-1/IFF filed monthly or quarterly. These details are passed on to the respective GSTR-2A/GSTR-2B of the buyers, based on the GSTIN. There is no mechanism or validation on the GST portal to confirm if a tax invoice bearing a particular buyer’s GSTIN is entered correctly in GSTR-1/IFF, unless it gets auto-populated from the e-invoice portal. Hence, if the seller erroneously mentions the wrong GST State code while entering GSTIN in invoice information in GSTR-1/IFF, the wrong person or GSTIN may end up finding tax credit in GSTR-2A/2B instead of the rightful buyer. Classification of GST Jurisdiction State Jurisdiction State jurisdiction deals with tax administration within a specific state or union territory. It includes the assessment and collection of State GST (SGST) and Union Territory GST (UTGST). Each state is divided into various jurisdictions, each headed by a Jurisdictional Officer. Central Jurisdiction Central jurisdiction involves the administration of Central GST (CGST) and Integrated GST (IGST). It is responsible for transactions that occur between different states or union territories. The Central Jurisdiction ensures that taxes are appropriately collected and distributed among the states. As outlined in CGST Circular no. 21/2017 dated 20th September 2017, here’s how the division is determined: Taxpayers with Turnover Below ₹1.5 Crore: In this category, 90% of taxpayers whose total turnover falls below ₹1.5 crore are under the jurisdiction of the state administration, while the remaining 10% fall under the purview of the Central administration. Taxpayers with Turnover Above ₹1.5 Crore: For taxpayers with a total turnover exceeding ₹1.5 crore, the division is more balanced. 50% comes under the state administration, while the other half is overseen by the Central administration. This division of GST taxpayers is carried out through computer-initiated processes at the state level. It considers factors such as the geographical location of the taxpayer and the type of registration they hold. How to Find or Know Your GST Jurisdiction? Method 1: Through CBIC Portal (For State Jurisdiction) Visit the Central Board of Indirect Taxes and Customs (CBIC) portal (https://cbic-gst.gov.in/). On the CBIC portal, look for the ‘Services’ section. Find and click on the ‘Know Your Jurisdiction’ option. You will be directed to a page where you can access a list of States and Union Territories. Locate and select the State/UT for which you are looking for a GST jurisdiction list Select the zone After which you can select the commissionerate to proceed. Choose the division Select your range. Check and select the localities that fall under that range. Method 2: Through GST Portal Using GSTIN (For Both State and Central Jurisdiction) Visit the official GST portal: GST Portal (https://www.gst.gov.in/). On the GST portal’s homepage, locate the ‘Search Taxpayer’ option In the dropdown, select ‘Search by GSTIN/UIN’. Enter the 15-digit GSTIN of the business or individual you want to inquire about. Click on the ‘Search’ or ‘Submit’ button. The portal will display detailed jurisdictional information, including both the State and Central Jurisdiction for the provided GSTIN. Method 3: Through Individual State Websites Visit the official website of the specific state’s GST department. Look for a section or option related to GST or taxpayer services on the state’s website. Find the ‘Jurisdiction’ or ‘Know Your Jurisdiction’ option. Enter the required details, which may vary by state but typically include GSTIN or other relevant information. Click on the ‘Search’ or ‘Submit’ button. The state’s website will provide you with jurisdictional information specific to that state. FAQs What is GST State Code for Tamil Nadu? 33 is the Tamil Nadu GST State

GSTR 9C is an annual audit form for all the taxpayers having the turnover above 5 crores in a particular financial year. Along with the GSTR 9C audit form, the taxpayer will also have to fill up the reconciliation statement along with the certification of an audit. Pre-requisites to prepare and file GSTR-9C The taxpayer must have a valid GSTIN and must be registered under GST. The login credentials of the taxpayer (Username and password) must be valid. The taxpayer should have filed Form GSTR-9 (Annual Return) for that financial year. The taxpayer’s business must have an aggregate turnover exceeding Rs.5 crore. 53rd GST Council Meeting Updates for Annual Return Form The 53rd GST Council has announced the relaxations provided in FY 2023-24 for FORM GSTR-9 and FORM GSTR-9C. This includes the exemption from filing the annual return for taxpayers with an aggregate annual turnover of up to two crore rupees. The Council has made these changes to ease the compliance burden on smaller taxpayers. GST Burden Reduced for FY 2023-24 Sales GSTR 9 GSTR 9C Up to 2 Cr Optional N/A More than 2Cr. – 5 Cr Filling is mandatory Optional (Benefit Given) More than 5Cr Filling is mandatory Filling is mandatory How Many Types of GST Audits are There? Turnover-Based GST Audit: CA or the cost accountant used to implement it and the CA is arranged by the assessee they shall execute the audit if the turnover of the assessee is more than Rs 5 cr under the CGST act, then he shall need to get his accounts audited through the same people. Normal Audit Under GST: It gets executed through the commissioner of the CGST/SGST or any Officer who has been permitted by the commissioner. The audit in these types of cases will get executed by giving 15 days’ notice before the commissioner. Special GST Audit: The audit beneath this shall be taken by the CA or the cost accountant who gets appointed through the commissioner. To execute the audit the professional needs to get the order of the Deputy or Assistant Commissioner and indeed the permission of the commissioner. Steps to generate form GSTR-9C JSON file from the offline utility? Step 1: Log in to the GST portal and download the GSTR-9 form. Step 2: Next, download the GSTR-9C tables derived from GSTR-9. Step 3: The GSTR-9C Offline Tool must also be downloaded. This may be done from the downloads tab by selecting “Offline Tools”, and then selecting “GSTR-9C Offline Tool”. Step 4: With the help of the GSTR-9C Offline Tool, the following steps may be done to prepare the GSTR-9C:- Open the GSTR Offline Utility Worksheet and then feed in the relevant data into the tables on the worksheet. To then view the draft version of Form GSTR-9C, the preview PDF file has to be generated. Once this is done, the JSON file can be generated. Steps to file the form GSTR-9C on the GST portal Step 1: Once the generated JSON file is uploaded on the GST portal, the user may then proceed towards adding the financial statements such as the balance sheet, profit and loss statement and other necessary documents after the necessary verification. Step 2: The documents to be uploaded must be uploaded in PDF format. The file size limit is 5 MB per file and a maximum of 2 files can be uploaded in each section. Step 3: At the time of uploading the necessary documents, the “SAVE” button must be clicked on after the upload of each document which shows the status as “Processed”. If the “SAVE” button is not clicked with each upload, an error message will be displayed if the user clicks on “PROCEED TO FILE”. Step 4: The “PROCEED TO FILE” button will be enabled only once the following documents are successfully uploaded: Generated JSON file Balance Sheet in the PDF format Profit and Loss Account in the PDF Format Step 5: The user can choose to view the draft of the GSTR-9C by clicking on the “PREVIEW DRAFT GSTR-9C (PREVIEW)” button. Step 6: Clicking on the “PROCEED TO FILE” button will then take the user to the verification page. Once the verification details are confirmed, the “FILE GSTR-9C” button will be enabled, indicating that it is the final step where the form is ready to be filed once the user clicks on it. FAQs Does ‘aggregate turnover’ deals with topics such as stock transfers/ cross charges effected between branches located in two different states? Aggregate Turnover has been defined in Section 2(6) of CGST/ SGST Act and the definition of aggregate turnover includes ‘inter-state supplies of a person having the same PAN’. Thus, we see that stock transfers/ cross-charges of services provided from a branch, located in one state to a branch located in another state is included in the definition of Aggregate turnover of the related branch supplying goods/ services. Should the Form GSTR 9 and Form GSTR 9C get filed separately? As per Section 44(2) of the CGST/ SGST Act 2017, a Registered person is required to file his Annual return in Form GSTR 9 along with this he has to provide a reconciliation statement through Form GSTR 9C. Thus we see, Form GSTR 9C is required to be filed along with Form GSTR 9 where the turnover exceeds Rs. 2 crores.

The Government of India passed the announced the Goods and Service tax (GST) as a sole indirect tax throughout the country which would be a uniform tax. As of the year 2000, goods and services will be taxed at the following rates – 0.25%, 5%, 12%, 18% and 28%. While it still isn’t clear on how the GST will impact the market in the near future – if it will be beneficial to the citizens or not, a big question on how it will impact the real estate market has been posed. With the Prime Minister of the country Narendra Modi having launched the “housing for all campaign”, giving people from below the poverty line and low-income families an opportunity to own a house for themselves and the recent slash in home loan interest rates, now is practically the best time for one to avail a home loan. How the GST will affect the Real Estate Market GST is not applicable in the case of properties that are ready to occupy while a GST of 12% is applicable in the case of residential properties that are under construction and which have not yet received an Occupancy Certificate (OC). The GST is applicable for charges that are associated with a home loan, including the processing fees. Processing fees are usually in the range of 0.25% to 1% of the home loan amount which will now have the GST also added to it. Effect of GST on Home Loan EMIs With more and more people looking to avail home loans due to the slashed home loan interest rates and the ease of availing home loans these days, for the next couple of months the focus would be on how the GST affects home loan EMIs. Listed below are ways on how the GST will affect home loan EMIs: GST for home loans will have a standard rate of 18% throughout the country. Before GST came into effect, it was service tax of 15% which was applicable on home loans. The application of 18% GST will translate to consumers paying slightly more for their home loan. With the interest rate having being increased significantly higher, banks and lenders too will increase the interest rates added on home loans. Applicability of GST on home loan When you apply for a home loan, there are various charges, such as processing fees and legal costs, which are typically deducted by banks, housing finance companies, and other financial institutions. Previously, these charges were liable to service tax. However, the introduction of GST has brought about a significant change in the taxation structure. The expenses that were previously categorised under service tax are now governed under GST. Home loan processing charges HSN code and GST rate Processing fees and other charges levied on disbursing home loans fall within the category of financial and related Services, identified by the HSN code 9971 and subjected to a GST rate of 18%.  The following is an example of how GST is levied on the processing fees for a home loan: Property Value Loan Processing Fee  Applicable GST Rate GST Calculation Rs.50 lakh 1% 18% If home loan = Rs. 50 lakhs, Processing fee = 1% of loan amount = Rs. 50,000, GST @ 18% = Rs. 9,000. Total fee paid = Rs. 59,000 GST on other loan-related charges GST on home loans also applies to various associate­d costs. These costs include prepayment charges, partial prepayme­nt fees, and document handling charge­s. They can be eithe­r a fixed amount or a percentage­ of the loan. For example, in the case­ of a fixed-rate home loan, 18% GST will be­ imposed on a prepayment pe­nalty of 2%. FAQs Is there GST on government housing schemes? Yes, a GST of 1% is levied on government housing schemes. Is GST applicable to late payment charges on home loans? Yes, GST is applicable to late payment charges on home loans, whether a fixed fee or a percentage of the overdue amount.

Composition Scheme acts as an alternative method for levying a tax under GST. Small businesses registered under the GST composition scheme can pay GST at a fixed rate of turnover every quarter and file quarterly GST returns. Composition levy would be generally related to small taxpayers who are supplying goods and services or both to the end consumer with low turnover. Further, the composition scheme has been designed with the aim of making compliance more accessible and cost-effective for the taxpayers. Eligibility For GST Composition Scheme Getting registered under composition scheme is optional and voluntary. Any business which has a turnover of less than Rs. One crore or 75 lakhs for the specified states can opt for this scheme but on any given day, if turnover crosses the above-mentioned limit, then he becomes ineligible and has to take registration under the regular scheme. There are certain conditions that need to be fulfilled before opting for composition levy. They are as follows: Any assessee who only deals in supply of goods can opt for this scheme that means this provision is not applicable for service providers. However, restaurant service providers are excluded. There should not be any interstate supply of goods that means businesses having only intra-state supply of goods are eligible. Any dealer who is supplying goods through electronic commerce operator will be barred from being registered under composition scheme. For example: If M/s ABC sells its products through Flipkart or Amazon (Electronic Commerce Operator), then M/s. ABC cannot opt for composition scheme. Composition scheme is levied for all business verticals with the same PAN. A taxable person will not have the option to select composition scheme for one, opt to pay taxes for other. For example, A taxable person has the following Business verticals separately registered – Sale of footwear, the sale of mobiles, Franchisee of McDonald’s. Here the composition scheme will be available to all 3 business verticals. Dealers are not allowed to collect composition tax from the recipient of supplies, and neither are they allowed to take Input Tax Credit. If the person is not eligible under composition scheme, tax liability shall be TAX + Interest and penalty which shall be equal to the amount of tax. Persons who cannot opt for the composition scheme Supplier of service other than restaurant owners(Serving foods and non-alcoholic drinks) Supplier of non-taxable goods If the person in engage in the inter-state supply of goods Supplier supplying goods through E-commerce operator, who is eligible to collect TCS Supplier of tobacco, pan masala, and ice cream Bill of supply As the composition scheme dealer cannot pass on the credit of the tax, he is required to issue the bill of supply. Details to be mentioned in the bill of supply are as follows – Name, address, and GSTIN of the supplier A consecutive serial number which is a unique number for every financial year Date of issue If the recipient is registered then the name, address, and GSTIN of the recipient HSN Code of goods or Accounting Code for services Description of goods/services Value of the goods/services after adjusting any discount or abatement Signature or digital signature of the supplier or his authorized representative What are the conditions for availing Composition Scheme? No Input Tax Credit can be claimed by a dealer opting for composition scheme The dealer cannot supply goods not taxable under GST such as alcohol. The taxpayer has to pay tax at normal rates for transactions under the Reverse Charge Mechanism If a taxable person has different segments of businesses (such as textile, electronic accessories, groceries, etc.) under the same PAN, they must register all such businesses under the scheme collectively or opt out of the scheme. The taxpayer has to mention the words ‘composition taxable person’ on every notice or signboard displayed prominently at their place of business. The taxpayer has to mention the words ‘composition taxable person’ on every bill of supply issued by him. As per the CGST (Amendment) Act, 2018, a manufacturer or trader can now also supply services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be applicable from the 1st of Feb, 2019. How can a taxpayer opt for composition scheme? To opt for composition scheme a taxpayer has to file GST CMP-02 with the government. This can be done online by logging into the GST Portal. This intimation should be given at the beginning of every Financial Year by a dealer wanting to opt for Composition Scheme.  How Should a Composition Dealer raise bill? A composition dealer cannot issue a tax invoice. This is because a composition dealer cannot charge tax from their customers. They need to pay tax out of their own pocket. Hence, the dealer has to issue a Bill of Supply. The dealer should also mention “composition taxable person, not eligible to collect tax on supplies”  at the top of the Bill of Supply. How should GST payment be made by a composition deale GST Payment has to be made out of pocket for the supplies made. The GST payment to be made by a composition dealer comprises of the following: GST on supplies made. Tax on reverse charge Tax on purchase from an unregistered dealer* Advantages of Composition Scheme Lesser compliance (returns, maintaining books of record, issuance of invoices) Limited tax liability High liquidity as taxes are at a lower rate  Disadvantages of Composition Scheme A limited territory of business. The dealer is barred from carrying out inter-state transactions No Input Tax Credit available to composition dealers The taxpayer will not be eligible to supply non-taxable goods under GST such as alcohol and goods through an e-commerce portal. FAQs What is the GST Composition Scheme? The GST Composition Scheme is a simplified tax scheme under the Goods and Services Tax (GST) regime designed for small taxpayers. It allows eligible businesses to pay a fixed percentage of their turnover as tax, rather than the standard GST rates, making compliance easier and more affordable. Who is eligible

GST stands for Goods and Services Tax. It is an indirect tax set on the supply of goods and services. Goods and Services Tax (GST) is an improved system over the previous Value Added Tax (VAT) in India. It applies a single tax rate on both goods and services. Unlike VAT, GST is a multi-stage, destination-oriented tax. It replaced several previous indirect taxes, such as VAT, excise duty, and service tax, levied by the central and state governments. This streamlined tax administration across the entire nation. The Goods and Services Tax (GST) Act was passed in Parliament on March 29, 2017, and became effective on July 1, 2017. The key purpose of implementing the Goods and Services Tax was to simplify the tax structure and create a uniform and integrated tax system to reduce the tax burden on businesses and consumers. What is GST? (Goods and Services Tax) The full form of GST is Goods and Services Tax. It was first introduced in the Budget Speech presented on 28th February 2006. It laid the foundation for a complete reform of India’s indirect tax system. Finally implemented on 1st July 2017 as the Goods and Services Tax Act, the indirect taxation system thus went through a chain of amendments since its inception. With this tax reform, GST replaced multiple indirect taxes that were levied on different goods and services. The Central Board of Indirect Taxes and Customs (CBIC) is the regulatory body governing all changes and amendments regarding this tax. GST definition is easy to decode. It is a destination-based, multi-stage, comprehensive tax levied at each stage of value addition. Having replaced multiple indirect taxes in the country, it has successfully helped the Indian Government achieve its ‘One Nation One Tax’ agenda. The tax is levied on goods and services sold within India’s domestic boundary for consumption. Implemented by a majority of nations worldwide with respective customisations, the tax has been successful in simplifying the indirect taxation structure of India. GST is levied on the final market price of goods and services manufactured internally, thereby reflecting the maximum retail price. Customers are required to pay this tax on a purchase of goods or services as an inclusion in their final price. Collected by the seller, it is then required to be paid to the government, thus implying the indirect incidence. The GST rates on different goods and services are uniformly applied across the country. Goods and services have, however, been categorised under different slab rates for tax payment. While luxury and comfort goods are categorised under higher slabs, necessities have been included in lower and nil slab rates. The main aim of this classification is to ensure the uniform distribution of wealth among residents of India. History of GST and GST Information Back in 2000, the then Prime Minister of India introduced the concept of Goods and Services Tax. He also formed a committee to draft new indirect tax law. It, however, took 17 more years for its implementation. Meanwhile, the bill went through multiple introductions, amendments and rescheduling. 2000 – Committee set up by the PM for drafting Goods and Service Tax law for India. 2004 – A task force reported a need to implement this law and improve the indirect tax system in India. 2006 – Goods and Services Tax introduction scheduled on 1st April 2010 by the Finance Minister of India. 2007 – Decision to phase out Central Sales Tax (CST). Consequently, CST rates were reduced to 3% from 4%. 2008 – GST’s dual structure was finalised by the EC for separate legislation and levy. 2010 – Postponement of GST introduction due to structural and implementation hurdles. A project launched for the computerisation of commercial taxes. 2011 – Introduction of Constitution Amendment Bill for enabling the Goods and Services Tax Law. 2012 – Discussion regarding the tax initiated by the Standing Committee; stalled due to lack of clarity regarding Clause 279B. 2013 – GST’s report presented by the Standing Committee. 2014 – The Finance Minister of India reintroduces the Goods and Services Tax Bill to Parliament. 2015 – The Lok Sabha clears the bill, but it is stalled in the Rajya Sabha. 2016 – Goods and Services Tax Network (GSTN) went live. The law’s amended model passed in both Houses of Parliament and received a nod from the President of India. 2017 – The Cabinet approves four supplementary bills on GST cleared by the Lok Sabha and the Rajya Sabha. The Goods and Services Tax Law was implemented on 1st July 2017. List of Taxes Subsumed after GST Implementation Good service tax was introduced as a comprehensive indirect tax structure. With this introduction, the government aimed to consolidate all indirect taxes levied under one umbrella. Thus, except for customs duty that is levied on the import of goods, Goods and Services Tax replaced multiple indirect taxes. This introduction helped overcome the limitations of its previous indirect tax structure regarding implementation and inefficiency in the collection process.  Following is the list of indirect taxes that were subsumed by Goods and Service Tax- Indirect Taxes Imposed by the Central Government Central Sales Tax Service Tax Central Excise Duty Excise Duty (Additional) Countervailing Duty or Additional Customs Duty Special Additional Customs Duties Indirect Taxes Imposed by the State Government State VAT Entry Tax and Octroi Duty Luxury Tax Amusement and Entertainment Tax Taxes on Advertisements Goods and services related to cess and surcharges Purchase Tax Tax on betting, lottery and gambling. What are the Types of GST? 1. Central GST (CGST) and State GST (SGST) Wondering what is CGST? It is the tax collected by the central government on intra-state transactions. SGST plays a vital role in revenue generation for individual states. The rates of CGST and SGST are usually equal, and the total GST rate is the sum of both.  2. Integrated GST (IGST) Knowing what is IGST is important for parties involved in sale-purchase transactions. IGST is the tax collected by the central government on inter-state transactions. It also applies to imports and exports of goods and services. The rate of IGST is equal to the total GST rate applicable to the product or service.  The integration of CGST, SGST and