Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services. It has replaced multiple indirect taxes such as excise duty, service tax, VAT, and others. GST compliance involves several processes and obligations, including GST advisory, GST filing, GST transition filing, and GST registration. Here’s an overview of each:
GST Advisory: GST advisory services involve providing guidance and assistance to businesses regarding the various aspects of GST compliance. This includes understanding the GST law, assessing the impact of GST on the business, determining the correct GST rates applicable to goods or services, understanding GST implications on transactions, and ensuring compliance with GST rules and regulations.
GST Filing: Under GST, businesses are required to file regular returns with the GST authorities. GST filing involves submitting the necessary information and details of the taxable supplies, purchases, and output and input taxes to the tax authorities. The returns are filed online through the Goods and Services Tax Network (GSTN) portal. Different types of returns, such as GSTR-1, GSTR-3B, GSTR-9, etc., need to be filed by businesses based on their turnover and nature of the business.
GST Transition Filing: GST transition filing relates to the migration of businesses from the previous indirect tax regime to the GST regime. It involves filing transitional forms and declarations to carry forward tax credits and comply with the provisions of the law during the transition period. This filing ensures a smooth transition of businesses into the GST system without any disruption or loss of tax benefits.
GST Registration: GST registration is mandatory for businesses that exceed the prescribed turnover threshold. It involves obtaining a unique Goods and Services Tax Identification Number (GSTIN) from the tax authorities. Registration enables businesses to collect GST from customers, claim input tax credits on purchases, and comply with the GST provisions. It also provides legal recognition and enables businesses to avail themselves of various benefits and incentives under the GST regime.
During the GST registration process, businesses need to provide relevant information such as PAN (Permanent Account Number), Aadhaar, proof of address, bank account details, and other required documents. Once registered, businesses receive a GSTIN and a unique GST certificate.
These various aspects of GST compliance, including GST advisory, GST filing, GST transition filing, and GST registration, aim to ensure that businesses meet their tax obligations, maintain accurate records, and adhere to the provisions of the Goods and Services Tax law in India.