Top 10 GST Softwares In India You Should Know About

Best GST Software India

In India, Which is one of the most diverse countries with a complicated infrastructure GST is the first technology driven tax regime. If you are looking for the best GST accounting software in India, then you have tended to the rig page, here we have jotted down the best GST ready software for small business and startups to tackle their GST confusion. Since the day of its Inception, GST has been an epidemic of confusion for the business owners in India. Moreover, after years debates, discussions, amendments the GST is the only tax regime that was implemented by the government, and every business needs to follow it.

Here we have handpicked top 10 GST software in India that can help you with the GST compliance and take care of billing & accounting.

1. MARG GST

MARG ERP 9+ is one of the best GST software you can use for your business at an affordable price. Besides, the user interface of the software is convenient for beginners. The software also allows the users to convert the bill into various formats and provides the option to send them via links. The email option adds a hassle-free way to share the bills with customers.

2. Clear Tax

If you wish to secure your billing data and don’t trust thee adware storage then, Clear Tax is for you. It is a cloud-based GST accounting software with internet connectivity for the users. You can easily create GST based bills and carry out accounting operations offline, and the software will automatically sync your data with the cloud storage. The software is accessible via mobile, desktop or laptop which makes it is one of the best GST software in India.

3. Tally ERP 9

Tally ERP 9 is one of the most advanced GST software in India that caters all your billing an accounting needs. With the Tally’s GST software you can easily create GST invoices/bills for your customers with multiple items and multiple tax rates. Besides, Tally ERP 9 is much more than just GST invoice building software; it takes care of all the other billing and accounting actions. The software also takes care of the branch charges, reverse charge scenarios, advance receipts and export invoices.

4. Quickbooks

Quickbooks is quite popular in India and considered as one of the best GST software to handle your business account. The software comes with a user-friendly interface that everyone can understand and access easily. Creating and sharing GST invoices can be done effortlessly in the software, and it also allows you to monitor tax credit so you can save money for your business. The company has released an online GST ready version for the small business that is customized according to their billing needs in requirements. The flexible GST software not only helps the businesses to create GST invoices but enables to track cash flow, expenses, and not categorized their income or expenses with a dedicated feature.

5. EasyGST

Here is another flawless and great GST software available you can use for your business. The Software comes with all required options and features to keep your GST billing cycle running. Moreover, with the software you get additional features to manage your business accounting actions like advance invoicing, tracking cash flow, monitoring the tax credit. Due to its friendly user interface and plenty of accessible features, EasyGST is counted among the best GST software in India.

GST Software

6. Busy Accounting Software

Whether you own a micros, small or medium business, Busy Accounting Software got it all. It is one of the best GST ready software for generating advance invoices and managing the business accounts. The user interface of the software is intuitive, and you can quickly generate invoices with customized options. Moreover, you can easily manage your accounts, finance, credits along with VAT and CST reports.

7. Zoho Books

It is another GST ready software in our list that you can integrate to your business for hassle-free invoice generation. The software lets you effortlessly generate GST invoices with different tax rates and multiple items quickly. Along with this, it is very convenient to keep track of all your account details including cash flow, and monthly expenses.

8. Reach GST

Reac GST is an ideal software of the SME’s to deal with their billing actions depending actions. The software comes with the functionality of multiple user-handling profiles for the business. You can generate GST invoices and can also share with them with the users via mail easily.

9. GEN -GST

If you are still in favor of offline GST ready software, the GEN-GST is specially designed for you and your business. The software allows users to prepare GST returns for consumers without accounting. Besides the software can also extract data from any software, the software works without any internet.

10. Sai GST

Sai GST may be listed last on this list, but it is not the least, the software is explicitly designed for CA and businesses who want to manage their GST returns. The accounting software works online and automatically synchronize all the bills and details between the suppliers and vendors.

GST Rates 2019 – New GST Rates Applicable From January-2019

New GST Rates

GST is the principal tax-related reform in the country bringing equality in the taxation structure and eliminating the cascading of taxes that were levied in the past. The GST Council meets from time to time to revise the GST rates for various products. Several states and industries recommend reduction in GST tax rate for various items which are discussed in these meetings.

Finance Minister Arun Jaitley said that the government wanted to keep the GST rates close to the original rates. But there were differences in case of some items because of the changes in the economy as well as customer preferences. Some commodities were kept in the high tax bracket (18-28%) but on scrutinize the list, they found that these commodities should be considered as necessities and not luxuries. This is why the GST rates were revised for commodities such as notebooks, exercise books, spectacles and lenses and some other items.

GST Tax Rates on some common items

TAX Rates

Products

5%

Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal, Mishti/Mithai (Indian Sweets) and Life-saving drugs are also covered under this GST slab

12%

This includes computers and processed food

18%

Hair oil, toothpaste and soaps, capital goods and industrial

intermediaries are covered in this slab

28%

Luxury items such as small cars, consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks, High-end motorcycles are included here.

GST Rates on Goods

The government has proposed a 4-tier tax structure for all goods and services under the slabs- 5%, 12%, 18% and 28%. After the recent revision of GST rates, these are the commodities that fall under the four tax slabs along with those that do not attract any tax. Please note that only those commodities are included in this list whose rates have been revised in various council meetings.

Let us have a look at various products and the tax slab in which they fall into :

List of Goods and Services under 0% GST Rate (No tax)

With the implementation of GST, there will be no tax for the following goods as well as services throughout India.

Goods:-

Unpacked foodgrains, fresh vegetables and fruits, unbranded atta, maida, besan, gur, milk, eggs, curd, lassi, unpacked paneer, unbranded natural honey, palmyra jaggery, all types of salt, fresh meat, fish, chicken, buttermilk, cereal grains hulled, Jute, flour, bread, prasad, bindi, sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, Bones and horn cores, bone grist, bone meal, etc;, hoof meal, Kajal, Children’s’ picture, drawing or colouring books, Human hair.

Services:-

Under GST, all hotels and lodges in India with tariff below Rs.1,000 are exempted from paying taxes.

Rough precious and semi-precious stones will be taxed at 0.25% all over India.

gst-0percent-tax-rate

List of Goods and Services under 5% GST Rate:

Goods:-

Apparel below Rs 1000, footwear below Rs 500, Sugar, tea, roasted coffee beans, edible oils, cream, skimmed milk powder, fish fillet, branded paneer, frozen vegetables, coffee, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats, Cashew nut, Cashew nut in shell, Raisin, Ice and snow, Biogas, Insulin, Agarbatti, Kites, Postage or revenue stamps, stamp-postmarks, first-day covers.

Services:-

Transport services (Railways, air transport), small restaurants.

gst-5percent-tax-rate

List of Goods and Services under 12% GST Rate:

Goods:-

Cell phones, Apparel above Rs 1000, sewing machine, umbrella, Ayurvedic medicines, tooth powder, Butter, ghee, almonds, fruit juice, packed coconut water, preparations of vegetables, fruits, nuts or other parts of plants including pickle, murabba, chutney, jam, jelly, bhujia, namkeen, fruit juices, frozen meat products, dry fruits in packaged form, animal fat and sausage, cheese, colouring books, picture books, Ketchup & Sauces, All diagnostic kits and reagents, Exercise books and notebooks, Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Spectacles, corrective, Playing cards, chess board, carom board and other board games like ludo.

Services:-

Non-AC hotels, business class air ticket, State-run lotteries, fertilisers, Work Contracts.

gst-12percent-tax-rate

List of Goods and Services under 18% GST Rate:

Goods:-

Footwear above Rs.500, camera, speakers and monitors, Headgear and parts thereof, Trademarks, goodwill, software, Bidi Patta, Biscuits – All categories, flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, notebooks, steel products, printed circuits, Kajal pencil sticks, Aluminium foil, Weighing Machinery [other than electric or electronic weighing machine]. Printers [other than multifunction printers], Electrical Transformer, CCTV, Optical Fiber, Bamboo furniture, Swimming pools and paddling pools, Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings.

Services:-

AC hotels that serve liquor, telecom services, IT services, branded garments and financial services, Room tariffs between Rs. 2,500 and Rs. 7,500, Restaurants inside five-star hotels.

gst-18percent-tax-rate

List of Goods and Services under 28% GST Rate:

Goods:-

Automobiles, Motorcycles, ATM, washing machine, shavers, hair clippers, Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, vending machines, vacuum cleaner, aircraft for personal use.

Services:-

Cinema, 5-star hotels, Private-run lotteries authorised by the states, hotels with room tariffs above Rs 7,500, race club betting.

gst-28percent-tax-rate

GST Rates on Services

The government has also impose GST on Services with the same 4-tier tax structure as of goods. GST rates on services comprising of 5%,  12%, 18% and 28% come with various pros and cons for the consumers. However, the government has exempted healthcare and educational services from the purview of the GST.

The Goods and Services Tax council has passed the rate slabs at NIL, 5%, 12%, 18%, 28%. Some of the services categorized under different slabs are mentioned below :

GST on Cars

Subsequent to bringing cars under the GST regime, the GST rate on cars has been fixed at 28% for all personal use vehicles featuring a petrol or diesel driven engine. However, in addition to GST, a composition cess is also applicable to cars over and above the GST Rate. Thus the overall tax rate applicable to vehicles under GST ranges from 29% to 50%. Lower rates of taxation are however applicable to cars driven by cleaner technologies such as fuel cells (including hydrogen fuel cell) and electric vehicles.

GST on Gold

Subsequent to the introduction of GST on items made from gold such as gold jewellery, the current GST rate on gold is 3%. However, a 5% GST rate is applicable to making charges applied to gold jewellery in case the manufacturing is outsourced to a job worker. This can, however, be charged as an input tax credit (ITC) by the jeweller and only a 3% GST charge is applied to the final bill paid by the purchaser of gold jewellery items.

GST On Real Estate

GST is applicable to real estate purchases only if you are purchasing an under construction property. The GST rate applicable to such transactions is 12%. No GST is applicable in case you are purchasing a ready to move in property. Additionally, different GST rates are applicable to various building materials used in the construction of houses/flats. This can range from 5% (sand, marble rubble, etc.) to 28% (cement, etc.).

GST on Food

Food items especially fresh food mostly carry a Nil GST rate. However, packaged foodstuff and semi-processed/processed foods do feature GST rates starting from 5% up to 18%. While no foodstuff are currently included in the highest 28% GST bracket, the 18% rate of GST is applicable to some common food products such as chocolates as well as baked goods such as cakes.

Upcoming products in GST Rates Slab

The Government is going on with some new tactics to bring in some of the products under the GST system. As hinted by Finance Minister, Arun Jaitley, there could be an inclusion of products under GST with the reduction of GST rates on some products.  Major products which can come under GST rates slab includes:

1) Petroleum products- Petrol and Diesel

2) Land

3) Electricity

4) Others

GST Rates Impact on the Economy

GST has transformed the economy at its peak. It’s a game-changing reform for the Indian economy as it brings about net appropriate price for the goods and services considered under a single taxation system. Mentioned below are some of the important GST rates impacts in the Indian economy :

Increase in Competition: After the GST has been imposed, there has been seen a fall in prices of goods and services which ultimately has brought the final consumer to have less tax burden on the goods and services. There is seen a great scope of increased production, thus, increase in competition.

Simple Tax Structure: GST has simplified the calculation of tax with the adoption of a single taxation system. Under this, multiple taxations have been aborted which ultimately saves time and money.

Uniform Tax Regime: Previously, there used to be multiple taxes at every stage of the supply chain, where the taxpayer got confused. But now, with GST, it is easier for the taxpayer to pay a uniform tax.

Increase in Exports: There has been seen a fall in the cost of production after the GST got imposed. This in return has brought competitiveness towards the international market resulting in rising in exports.

32nd GST Council Meeting – All updates and important decisions taken

32nd GST Council Meeting

The GST Council meeting was held on 10th January 2019 in New Delhi to bring some benefits to medium and small-scale enterprises (MSMEs) with regards to GST exemption and permitted 6 % composition scheme for the services sector.

Addressing a press conference after the 32nd GST Council meet, Finance Minister Arun Jaitley declared that the services sector will now be eligible for benefits under the composition scheme, which was only applicable to manufacturers and traders earlier.

In the meeting, GST council has broadly taken below mentioned decisions –

The limit for the suppliers of goods i.e. Rs. 40 lakhs and Rs. 20 lakhs for exemption from registration and payment of GST. States would be given an option to decide about one of the limits within a weeks’ time. However, the threshold for registration for service providers would continue to be Rs 20 lakhs and in the case of Special category States Rs 10 lakh.

A composition scheme will be made available for suppliers of services with a tax rate of 6% (3% CGST + 3% SGST) whose annual turnover in preceding financial year up to Rs 50 lakhs. The said scheme shall also be applicable to both service providers as well as suppliers of goods and services, who are not eligible for the presently available composition scheme for goods.

The limit of annual turnover in the preceding financial year for availing composition scheme for goods will be increased to Rs 1.5 crore. Special category States will have to decide within one week about the composition limit in their respective States.

Those who come under the composition scheme or want to avail it will have to pay tax on a quarterly basis as only one return has to be filed during a year.

Meanwhile, the Council is yet to take a call on the real estate sector. Jaitley said that a 7-member GoM has been constituted to discuss ways to tackle issues in the ailing sector.

GST Council also approved the levy of cess on the inter-State supply of goods and services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.

Similarly, if any state faces a natural disaster may approach the GST Council to demand a similar solution.

When asked whether there will be further rationalization of GST slabs or tax rates, Jaitley said further rate cuts can be discussed only when there is a rise in revenue collection.

Taxpayers under composition scheme will now need to file one annual return but payment of taxes would remain quarterly (along with a simple declaration)

Following matters were referred by the Group of Ministers

  • Proposal for giving a composition scheme to boost the residential segment of the real estate sector.
  • GST rate structure on lotteries.

All the changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, Circulars and notifications issued earlier and the corresponding changes in SGST Acts would be alert w.e.f. 01.02.2019.

GST Billing And Accounting Software In India

GST-Software

Today, every business needs a new billing management system, which should work according to the new tax regime of India. For this, many companies like ClearTax, Tally, and Marg Accounting has introduced their new billing software, which has been developed completely based upon the new Goods and Service Tax guidelines.

A billing and invoicing software help businesses perform automated calculations, keeping taxes in mind. Additionally, they are also useful for bookkeeping and record-keeping purposes.

To help businesses choose, here’s a list of the top 10 billing and invoicing solution available in India:

How To Find The Best GST Software?

Like every person, every firm is different and has its own expectations from any accounting software. Based on your business, you should check the following points:

1) Software should include all requirements relating to payroll.

2) The system should be able to track available stock, work in progress, orders, jobs, and other task management requirements

3) There should be a provision which can handle more than one bank account.

4) Whether the software handles foreign exchange.

5) There should be a system to keep records of each business or various departments under one business unit.

6) Check whether the Software provides you with an online platform for different activities such as online payments, verifying records,

7) Whether the system can manage different records on what do customers buy, how much they buy, a tax charged on it, etc

Features:

1) According to the business, it should customize the look and generate GST invoices.

2) Different categories. Should be there for different expenses.

3) By importing the bank transactions it should generate the Reconciliation Statement (BRS).

4) Inventory purchases and purchase orders (PO) will be recorded.

5) Record-Journal Voucher entries.

6) Managing database of customer and vendors.

7) Updated information about accounts payable and accounts receivables so that the user is well aware.

8) Help in generating Balance Sheet, Trial balance reports, and Profit and Loss statements as for and when needed.

9) Give platform for different users to use it in a business unit at the same point in time as at times there are different users in one business unit.

To help businesses choose, here’s a list of the top 5 billing and invoicing solution available in India:

Zoho Invoice

zoho

Zoho Invoice is a hassle-free invoicing & billing software that helps businesses send automated payment reminders to their customers and get paid faster online. This web-based solution empowers businesses with the best-automated tools, to smoothen and simplify invoicing operations. With Zoho, users can create invoices, perform faster payments and manage projects on the fly.

QuickBooks

quickbooks

Quickbooks is a reliable and scalable invoicing and billing software for businesses of any scale. Using Quickbooks, users can manage their business and stay organized anytime, anywhere on their computer, mobile or tablet. Create customized and professional invoices, sales receipts and estimates that can be sent in minutes, using QuickBooks.

Sleek Bill

sleekbill

Sleekbill is a simple and efficient billing software which has been specially designed for the Indian market. The software assists in making your invoicing operations efficient. It is a fast and highly scalable solution which can also be used to generate quick and detailed reports, backup/restore data, print/e-mail invoices, and perform GST calculations.

HyperDrive HDPOS Smart

HDPOS Smart is a retail POS billing software, designed to automate retail billing. It is efficient at handling inventory, financial accounting, and billing. HDPOS Smart can be employed at all types of business setups, ranging from stores to hypermarkets. It has additional modules for inventory management, franchise management, accounting, customer management, etc.

MargERP 9+

margERP

MargERP 9+ is an ERP solution that can also be used for invoicing purposes. From automating various ERP components to ensuring complete management of inventory, sales, distribution, procurement and, accounting, MargERP is a complete invoicing and billing software. Simple and easy to use, MargERP 9+ enables users to attain high performance and improved productivity for various domains.

Conclusion

If you own medium-sized business, all these tasks can cause a huge headache. A billing and invoicing solution will not only help businesses ease their payment processes but also get a better grasp of their finances. In turn, businesses can use this data to improve their different financial processes to make them more effective. Which one is your favourite GST software?

Everything you need to know about the recent amendments in the E-way Bill system 2018

e-way-bill

E-Way (Electronic way) bill is a document required to be carried by a person in charge of the conveyance carrying any goods of value for more than Rs. 50,000.  It was introduced earlier this year with an aim to make the interstate movement of goods smoother, swifter and easier. An E-Way bill is created via  GST common portal for E-Way bill system.

E-way Bill needs to be generated in relation to the following given transactions:

  • Movement of goods in relation to their supply for a consideration
  • Movement of goods for some reason apart from the supply of goods, e.g., sales returns or movement for repair of goods, free of cost supplies, etc.
  • Domestic acquisition of goods from an unregistered person.
  • Import of goods from outside India.

Pincode Based State Validation.

The user has to enter the input based on the Pin Code and the E-Way Bill system will auto-populates the state.  If the pin code has reference to multiple states then the taxpayers can select the suitable state by clicking.

Real-Time GST Rate Validation

Now, we have an error-free system which will auto validate tax rates entered by the user. Though it is not mandatory for the system user to feed tax rates if they do so then the system will cross check with standard rates which are fixed by the GST Council.

CGST (%) SGST (%) IGST (%) CESS-Advol (%) CESS-Non-Advol. (Rs.)
0 0 0 0 or 1 or 3 or 5 0
or 11 or 12 or
12.5 or 15 or 17
0.05 0.05 0.1 or 21 or 22 or 36 400
0.125 0.125 0.25 or 49 or 60 or 61 2076
1.5 1.5 3 or 65 or 71 or 72 2747
2.5 2.5 5 or 89 or 96 or 3668
6 6 12 142 or 160 or 4006
9 9 18 204 or 249 4170
14 14 28 400

Validation of Supply Type with Document Type

A consignee needs to carry proper documents of supply of goods for a stress-free transportation. The E-way Bill contains the fields to select document types and the taxpayer can enter the type of suppliers and buyers involved. In case the bill is being generated by consignees columns related to ‘From GSTIN (Supplier)’ and ‘To GSTIN (Buyer)’ validations will change accordingly.

Transaction Type Transaction Sub-Type Document Type From GSTIN (Supplier) To GSTIN

(Buyer)

Outward Supply Tax Invoice Self Other GSTIN/URP
Bill of Supply Self Other GSTIN/URP
Export Tax Invoice Self URP
Bill of Supply Self URP
Job Work Delivery Challan Self Other GSTIN/URP
SKD/CKD Tax Invoice Self Other GSTIN/URP
Bill of Supply Self Other GSTIN/URP
Delivery Challan Self Other GSTIN/URP
Recipient not Known Delivery Challan Self Self
Others Self Self
For Own Use Delivery Challan Self Self
Exhibition or Fairs Delivery Challan Self Self
Line Sales Delivery Challan Self Self
Others Delivery Challan Self Self/Other
Others Self Self/Other
Inward Supply Tax Invoice Other GSTIN/URP Self
Bill of Supply Other GSTIN/URP Self
Import Bill of Entry URP Self
SKD/CKD Bill of Entry URP Self
Tax Invoice Other GSTIN/URP Self
Bill of Supply Other GSTIN/URP Self
Delivery Challan Other GSTIN/URP Self
Job Work Return Delivery Challan Other GSTIN/URP Self
Sales Return Delivery Challan Other GSTIN/URP Self
Exhibition or fairs Delivery Challan Self Self
For Own Use Delivery Challan Self Self
Others Delivery Challan Self/Other Self
Others Self/Other Self

The movement to Transporter’s place

If a consignment has multiple legs supplier then he will need to input details of the first leg of movement only. Unlike the present practice, the supplier does not have to fill Part-B details. The consignment legality and movement for the remaining leg of the journey would be considered valid.

 Automatic Distance calculation between Consignor and consignee

Your E-way Bill will auto calculate the distance (in KMs) between source PIN code and destination PIN code. This process will make your data entry easier as it will auto-populated on the entry of source PIN code and destination PIN code.

One E–waybill for One Invoice Number

Your E-way Bill System will also check and alert you against multiple E-way Bill generations for a single invoice number. The consignor would be permitted to carry with the multiple e-way bills practice if and only if original invoice with the correct number is available and validated.

Bill To– Ship To’ Transactions

Now, E-way Bill System will auto capture details of Bill To – Ship To’ Transactions. These are those transactions where the invoice and the consignment are shipped to two different entities. The person who receives the invoice from the supplier then sales the product/consignment to a third party further gets it delivered from the supplier itself.

Category:

  • Regular OR Bill to –Ship To OR Bill From – Dispatch From OR Both
  • GSTIN and Name of Dispatching Party, if a category is ‘Bill From – Dispatch From’ or ‘Both’
  • GSTIN and Name of Shipping Party, if a category is ‘Bill to – Ship to’ or ‘Both’

Mandatory GSTR-1 data for users of API and Offline (Excel) tool

Post the upgrade, it will be compulsory for those who use API and other Offline tools to include information related to Form GSTR-1 with the E-way bill basic data to produce e-way bills.

Hence, we need to implement technology-based solutions to manage our compliance with E-way Bill to mandate our business. This will make everyone aware of the importance of putting such solutions in place for organizations and that doing so will significantly enhance the efficiency of our operations.  Our business needs to closely monitor new developments in the E-way Bill compliance process and quickly adapt to changing requirements.

All you need to know about the proposed changes in the Single Return Forms under GST

A recent GST Council meeting was all about discussions on providing a more simplified set of return forms. The new layouts for GST Return Forms have now been approved by the Central Government and by the GST Council. From FY 2019 these new set of GST return forms will be applicable.

GST Return

Here are some of the key changes that will be the part of the new GST Return Forms:

  • Single, Simpler and Time Saving

Unlike the previous ones, now the new forms will be less prone to human error and also a simpler form structure comprising of at max 5 to 6 tables. 80% of the form will be auto-populated and this will include sections such as details of supply and purchase/input details. Further, the information will be auto-populated based on the invoices uploaded by the taxpayers. Moreover, most of the data will be auto fetched and dealers will be required to fill the remaining 20% details only.

  • Less Taxing

Across the country taxpayer and trader, the community has a common complaint that the tax filing procedure in itself taxing. To fill returns it required an internet connection and also a desktop or laptop system which ultimately increases the expenditures for traders and taxpayers of buying system, electricity, internet connection and maybe manpower (if needed). But not any longer now A welcome change is seen in a new return filing method through SMS and will the facility to allow taxpayers to file their GST returns through SMS will begin.

  • One Nation One Return Form

The good news is that from next FY onwards the Central Government will do away with the existing multiple returns with a single return filing. Currently, the list of mandatory return file forms under GST include the likes of GSTR-1, GSTR-3B, GSTR-2A (for reconciliation purpose), etc. All these will be replaced with one. While earlier India’s PPP makes it difficult to implement a true one nation One Tax structure, a lot of hue and cry was directed towards the excessive compliance burden the GST framework imposed on the taxpayers (especially honest taxpayers and medium to small-scale traders).

  • Amendments

Unlike the current forms, the new single form will also enable amendments. The maximum number of amendments/changes that can be made will be limited to two though. Additionally, taxpayers will also be able to report negative balance or liability.

  • Profile Based Return Filing

The new FY 2019 will also see profile-based dealer’s filing of returns. The profile could be selected based on the questionnaire filled by the dealer post which returns can be files
“upload – lock – pay” System

Experts call the new returns as a three-step procedure for easy hassle free cost effective return filing. These include:

  • Invoice Uploading by Suppliers (Provide return details)
  • Approval/Acceptance by Recipients of goods or service.
  • GST Payment post return locks by Recipients

sugam sahaj gst return filing

The GST will also make room for new provisions like the Sahaj and Sugam schemes for dealer along with new return forms. Currently, dealers with an annual turnover of fewer than 5 crores file quarterly returns and such dealers can either continue with quarterly returns or they can opt for a simpler two return system which is Sahaj return and another one is Sugam return.

Sajah return is for B2C suppliers. With less number of fields and easy to file it has become much simpler. It will be filed monthly. For those who are involved in both B2B and B2C supplies, they can opt for Sugam. Rest of the process is the same. The Sajah and Sugam are only available to dealers with less than 5 crore turnover.

Key outcomes of the 28th GST Council Meeting

Held on 21st July 2018, the all-powerful 28th GST Council Meeting was headed by the Hon’bleUnion Finance Minister Mr.PiyushGoyalwith an agenda:

  • To review the rates on the basis of representation made by the Industries and Trade Enterprises
  • To simplify the GST return filing
  • Discuss bringing-on the Aviation Turbine Fuel and natural gas under GST net

There have been many other GST council meets, but this one was in particular important because of the GST slab rate adjustments and few other compliance-related issues which will be on the cards during the discussion. Few other points why this meeting was important was because of the discussion on:

  • To reduce tax rates on close to 30 items and simplify return forms
  • To simplify compliance-related norms
  • To discuss the three-bench National GST Appellate Tribunal
  • To discuss the key issues on the e-way bill and reverse the charge mechanism
  • To talk over the sugar cess issue

GST Council

Key takeaways from the meeting:

Items that come under GST exemption

Milk
Sanitary Pads
Raw materials used in brooms
Commemorative coins circulated by the government
Saal leaves
Deities made of marble, stone, or wood

Items under 12% to 5% GST rates

Fertilizer grade phosphoric acid
Handloom Dari

Items under 18% to 5% GST rates

Footwear below 1000 INR

Items under 28% to 18% GST rates

  • Lithium-ion batteries, Bamboo Flooring, Paint, Varnishes, Putty, wooden frames for painting, photographs, mirrors
  • Food grinders, juicer, mixers, Vaccum cleaners
  • Perfumes, Cosmetics, Scents
  • Shaver’s, Hair Clippers, Hand Dryers, Toilet Spray, Hair Curlers
  • Trailers, Special Purpose Vehicle, Work Truck, Concrete Mixer
  • Storage water heaters, Watercooler, Ice cream freezer, Electric smoothing irons, Refrigerators, Washing Machines, TV (up to 68 cm i.e. 27 inches)

Certain transactions to be treated as no supply

The following transactions to be treated as no supply (no tax payable) under Schedule III:

  • Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
  • Supply of warehoused goods to any person before clearance for home consumption;
  • Supply of goods in case of high sea sales.

Issuing credit/debit notes

Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a financial year.

j) The cap on the amount payable for filing the appeal

Reversal of ITC

In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but the liability to pay interest is being done away with.

These recommendations will now be placed before the Parliament and the legislature of State and Union territories for approval and amending relevant GST Acts.

The new model proposes uploading of invoices by the supplier before 10th of next month that shall be subsequently posted in the viewing facility of the buyer by 12th of next month, who will then lock those invoices. The new returns filing model proposes single monthly return for all taxpayers except composition dealers, TDS/TCS and staggered return filing dates based on the turnover of the registered person.

Other major changes:

  • Simpler GST return filings
  • For almost 93% traders or SME’s with up to 5 crore turnover – fillings would be quarterly instead of monthly. However, tax payment would be monthly
  • Exemption limit of 10 Lac increased to 10 Lac for traders in – Sikkim, Assam, Himachal Pradesh and Arunachal Pradesh
  • Also, taxpayers who still haven’t registered under GST will be given an extension up till 31st August 2018 and any late penalty would be waived off.
  • Input credit for fabric allowed in the textile industry
  • Relief for hotel industry as the 28% GST would not apply on tariffs less than Rs. 7,500 even though the printed rates are more.