If you're feeling overwhelmed by GST and looking for GST Compliance services in Mumbai, it's time to sit back and relax. In this post, we will go over the fundamentals of GST and show you how we can assist you with GST through our services so that you can focus on your business without worrying about GST.
What is GST?
GST (Goods and Services Tax) is an Indian tax on the supply of goods and services. The concept of GST was introduced in 2017 and went into effect on July 1, 2018. It is an indirect tax that has largely replaced other taxes such as excise duty, service tax, and so on.
GST was first implemented in India to replace the Central Excise Duty (CED) on goods and services. It has been renamed "the biggest" tax reform since Independence Day in 1947! Except for gold, real estate, and luxury cars, the current GST rate is 5% on almost all goods and services.
What are the different types of GST?
In India, there are four types of GST:
Central Goods and Services Tax (CGST) (CGST)
In India, the Central Goods and Services Tax (CGST) is a tax on the supply of goods or services. CGST will be levied on all inter-state supplies, regardless of where they are manufactured. When a service is provided in any part of India, a service tax is levied.
The CGST percentage rate is high in comparison to normal custom duty rates, which vary by state. The CGST rate is 13.36 percent, but the actual amount charged may vary depending on the nature of the supply and other factors such as exemptions.
State Sales and Use Tax (SGST)
The State Goods and Services Tax (SGST) is a tax levied by a state's government on the sale or purchase of goods or services within that state. It is generally levied at a higher rate than the central Goods and Services Tax (GST).
Each state has its own set of tax rates for various goods and services. For example, all goods sold in Mumbai, Maharashtra state, are subject to a 5% sales tax. In Gujarat, all items sold in the state are subject to a 12% sales tax.
The Integrated Goods and Services Tax (IGST) (IGST)
The IGST is an interstate trade and commerce tax. The central government has proposed imposing IGST on all inter-state sales, supplies, and purchases of goods and services, which may include the transfer of property, provision of services, and other activities that result in the movement of goods between two or more states.
The IGST will be levied at a rate of 5% on all interstate sales, supplies, or purchases of goods and services. The levy will be levied both at the time of GST registration and when goods are delivered to the recipient. Suppliers will also be required to pay input tax credit (ICT) if they pay taxes on inputs used in production activities out of their own pockets.
Union Territory Goods and Services Tax (UTGST)
The UTGST is levied on goods and services sold by a business in a Union Territory to another business or individual located outside of the Union Territory. Inter-state trade is taxed at 0%, while intra-state trade is taxed at 10%.
What is GST Registration?
GST registration is a certification from the Government of India that your business is eligible to collect GST. It is required for all GST-registered businesses and ensures that you are eligible to charge and collect tax on your sales.
Why is GST Registration Required?
Here are five reasons why GST registration is critical:
1) It will assist you in obtaining a refund for any taxes paid to date during the previous year.
2) You can claim an input tax credit for payments made on previous purchases.
3). You can claim an input tax credit for domestic supplies and services which were not taxable under other laws/inclusions before CGST came into effect on 1st April 2017.
4). It ensures that you are not compelled to pay service tax if your company does not provide any of the eight specified services.
5). You will be able to claim an input tax credit on import duties paid if you import goods subject to excise duty and subsequent value-added tax levy (VAT).
What types of GST services are available in Mumbai?
GST Registration:
GST Registration is the process by which a taxpayer registers for GST. After registration, the central government assigns a unique 15-digit registration number known as the Goods and Services Tax Identification Number (GSTIN).
However, any non-service business with a turnover of more than Rs 40 lakh or a service provider with a turnover of more than Rs 20 lakh in a given fiscal year is required to register under GST.
Viser's GST specialists will walk you through the registration process and ensure you are GST compliant.
GST Return Service:
A GST Return is a document that contains information about GST invoices, payments, and receipts for a specific period. A taxpayer is required to declare all transactions related to a business's revenue for the authorities to calculate the amount of tax that the business must pay.
Types of GST Return
GSTR-1:Information required for all outward supplies of goods and services. It contains the invoices and debit-credit notes generated by sales transactions during a tax period. Viser's GST specialists will walk you through the registration process and ensure you are GST compliant.
GSTR-3B: This is a monthly consolidated summary that includes all details of inward and outward supplies made, input tax credits claimed, GST liability calculated, and taxes paid.
GSTR-2A vs GSTR-3B match: Reconciliation of Input Tax Credit (ITC) as per GSTR–2A and GSTR–3B are required when filing form GSTR3B. It helps businesses to claim the full ITC and also helps to reverse any excess ITC claims.
GSTR-9: This is the annual return that GST-registered taxpayers must file. It is an annual compilation of outward and inward supplies, tax liability, and input tax credit received during the fiscal year.
Why choose Viser for GST Registration Services in Mumbai?
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The dedicated expert team is composed of qualified Chartered Accountants, Company Secretaries, Legal Consultants, IT Experts, and a highly-skilled Accountant team to meet all compliances with high accuracy.
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GST operations are being automated with user-friendly software to eliminate non-compliance and due date headaches.
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Proactive support and maintenance from a team of experts who are easily accessible.
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With the best security tools, you can provide data security and ensure the integrity of your data.
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Budgeted solutions result in significant cost savings. With this, we at Viser Solutions say, 'Focus on what you do best, and be completely confident about the rest'.
