1. What is GST?
GST is the citizen-friendly tax.It is levied on the manufacturing, sales, and consumption of goods. This tax has been implied on a national level. It is a unified tax which will supersede the existing national and state taxes.
GST will also remove the tax on tax system prevailing today. It is applicable to manufacturing, trade, E-commerce or services.
2. How to enroll for GST?
We provide the best enrolment facilities for GST. You can also enroll for GST through the common portal of Goods and Services Tax.
3. Can I have multiple Registrations?
Yes. If you have multiple business transactions you can have separate registrations for each of them. This is also applicable to different businesses in different states. Separate registrations are available for different states.
4. Is input tax credit available under goods and services tax?
Input credit refers to the reduction on taxes on the input while paying the taxes on the output. Goods and services tax has a prominent feature of the ideal flow of input credit across the chain and across the country.
5. Which all taxes will GST replace?
GST will replace the existing taxes levied on businesses. It is applicable on both center taxes like central excise duty and CVD and state taxes like VAT and CST.
6. What are the benefits of goods and services tax?
- Easy online procedures
- Regulation of the unorganised sector
- Small businesses get composition schemes
- High registration threshold
- Indirect taxes replaced
- Consolidates returns and compliances
- Better efficiency in logistics
- Easy to avail input tax credit
- Abolishes the tax on tax effect
7. What is Composition scheme?
Composition scheme is only for small business and taxpayers. Businesses having a turn over less than Rs. 75 lakhs can apply for this scheme.
The applicants of this scheme are taxed a nominal rate of 0.5% or 1% GST and CGST each (For manufacturers). This scheme is only available for small businesses dealing with goods.
It is not applicable for e-commerce traders and operators, interstate sellers and service providers.
8. How many returns are required to be filed under GST?
In most cases, a business is required to file 3 monthly and 1 annual returns; ie. 37 returns in one financial year. This can be different for taxpayers registered under the composition scheme or input service distributor. It also differs in cases where a person is liable of collecting or deducting taxes (TDS/TCS).
9. What is HSN code?
HSN or the Harmonized System of Nomenclature is basically a harmonized commodity description and coding system. The World Customs Organization developed HSN as a multipurpose international product nomenclature.
It includes almost 5000 commodity groups. Each of these groups has a unique six-digit code. These codes are arranged in a legal and logical manner which enables uniform classification.
This is backed by a set of well-defined rules. The absence of HSN disables the system to pick tax rates when the goods are declared for registration.