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Understanding GST Provisions in India

One of the most crucial taxes in India in recent years has been GST or Goods and Service Tax. As its name suggests, GST is levied on goods and services delivered, replacing the previous Value Added Tax or VAT system. A brief study of GST provisions can easily lead one to the conclusion that the new taxation system is more comprehensive.

Main Provisions of GST

Let's take a glance at some of the main provisions of GST:

Firstly, the Goods and Service Tax (GST) was and has been effective from 1 July 2017 as the new indirect taxation system for taxing the goods and services sold in India.
One of the most important GST provisions is that while the Goods and Service Tax (GST) is collected from the seller of goods and services, the end burden falls on the customer consuming them. The seller is merely an intermediary who collects the GST from the customer on behalf of the government.
One of the main provisions of GST is that a person now has to get a GST number before they can start a business in India.
Since it can be difficult for smaller businesses to maintain detailed GST records; they have the option of paying GST at a fixed percentage of their sales. The turnover limit for which this composition scheme can opt for has been revised under GST new provisions.
GST taxation regime also avails the option to tax the e-commerce enterprises that are thriving in the country. Similarly, sectors like construction can now be taxed under India's GST taxation system.

New GST provisions

The following are some of the GST new provisions:

One of the most important new GST provisions is that all businesses with an annual turnover of over 20 lacs indian rupees must now generate electronic invoices or e-invoices.
GST new provisions also mean that the GST taxation rates are changed periodically, and thus, the businesses have to adjust accordingly.
Another crucial consideration in the new GST provisions is that in several industries, the responsibility for paying GST has now been shifted to the buyer.

Challenges Presented by These GST Provisions

Every coin has two faces, and GST, despite its incredible advantages, is not without some demerits as well. Some of the challenges presented by these GST provisions:

One of the biggest demerits of GST is that it can increase software costs significantly, as an immediate software update or completely new software might need to be compliant with these provisions. That can also skyrocket your operational and software maintenance costs.
If your business is not GST compliant, whether intentionally or otherwise, it can also attract many penalties.
It may be a challenge for people with inadequate information on GST provisions to calculate their GST liability under the new regime.

Some of these disadvantages can be overcome by going for good auditing firms in Pune, and one of the best auditing and GST taxation consultancy firms is S Gujar. If you are facing challenges in being GST compliant, we highly recommend taking their services.

Address

Sachin Gujar & Associates,
Chartered Accountants
47/22, Erandwana, Law College Road,
Ekta Apts, 3rd Floor, Above Nirmitee Furniture,
Pune - 411004

Contacts

Email: info@sgujar.com
Phone: +91-020-25445575
Phone: +91-020-25445576

Understanding GST Provisions in India