Finance

A List Of The Latest GST Amendments In Relation To Central Taxes And Integrated Tax

Before GST, there were taxes issued by various bodies in local, State, and the Centre. It created a lot of confusion, and you might often be charged twice for the same goods and services which you deliver.

It all changed with the implementation of GST as a single indirect tax throughout the country, transforming India into an economic union.

New Amendments By The Centre Concerning GST 

You need to stay updated with the gst latest amendments from the Centre to make use of them. During the tough times, the centre has decided to help ailing businesses prosper, as well as, put the economy back on track. The blog discusses the new amendments on both intrastate and interstate GST.

GST Rates 

You may be eligible for zero GST payment. However, the rates of most items are around 18%. The maximum GST applicable is up to 28% for alcohol and tobacco.

Do You Need To Apply For GST?

If your turnover exceeds 40 lakh rupees in the year 2019-20, and you are only selling goods, you are eligible for taxation. You need to register for a GST and pay your returns using GSTIN. Similarly, for services, you can avoid registering for GST for a turnaround of up to Rs. 20 lakhs.

If you are applicable for IGST, the maximum threshold to avoid GST is Rs. 20 lakhs for both goods and services. You also need to pay your GST returns even if you exceed ten lakhs of turnover annually if you operate solely in the following states and Union territories.

  • Arunachal Pradesh
  • Manipur
  • Sikkim
  • Meghalaya
  • Nagaland
  • Mizoram
  • Telangana
  • Tripura
  • Uttarakhand
  • Puducherry

Furthermore, according to new amendments, Aadhar verification is now mandatory.

Composition Scheme 

Under this scheme, you can apply for tax on goods and services quarterly. Previously, the turnover threshold amount was 1 crore rupees. However, traders, restaurant service providers, and manufacturers can now get an increased threshold of 1.5 crore rupees.

Traders and manufacturers need to pay 1% CGST, whereas 5% CGST is applicable for restaurants within the range. Businesses under this scheme can file tax returns annually, although payments must be made quarterly.

TCS Benefits 

Previously, the GST was calculated on the entire amount, including Tax Collected at Source. Now, however, the tax collected at source is not part of the calculation. Hence, you need to pay lower GST and lower taxes as a whole.

National Anti-Profiteering Scheme 

If the National Anti-Profiteering Authority finds out, it can now levy a 10% penalty on your profiteered amount.

Latest CGST Amendments 

  • E-way bills changed the way people reported travel and movement of goods. It was verifiable by the sender and the receiver, thus double-checked and needed to be completed before dispatching goods and services to another location. The validity of e-way bills has been increased by the Center as mentioned in the notification 40/2020 and 35/2020 – Central Tax.
  • The Central Tax Act mentions the fifth amendment. Under this rule, you can fill up your Form GSTR-3B and file your return using an electronically verified code. If you have a null return, you can file the return using a messaging service that confirms your mobile number with an OTP.
  • According to notification 39/2020 of the Central Tax Act, ensure that if you are a debtor undergoing corporate insolvency process, you can apply for a new corporate identity in the same state. During the time of this economic crisis, the service will be a boon for you.
  • You can now easily correct any errors of payments by changing the head using the provisions in Form GST PMT- 09.
  • Jammu and Kashmir and Ladakh are still new to the rollout of the GST rules. Hence, many notifications allow these union territories to adopt the GST rules along with the extension of forms and applications.
  • During the massive coronavirus outbreak, the Center seeks to provide businesses with relief measures through various central tax reforms for the time being. They include lowering your taxes and increasing the date for submitting taxes.
  • The Fourth Amendment allows for the cumulative application of Form GSTR-3B through February to August.
  • The Third Amendment deals with the registration, verification, and segregation of goods and services along with refunds.
  • Businesses with a 50 lakh turnover, operating in a single state and providing both goods and services need to pay a total GST of 6%, of which 3% is CGST.

Latest IGST Amendments 

  • The rate of GST on lotteries have been increased to 28%.
  • The IGST on the maintenance of aircraft along with repairs and overhaul is decreased to 5% from the preceding 18%. Business to business maintenance, repair, and overhaul has changed the place of supply to the recipient of the product.

How Ledger Application Can Help You With GST Invoices 

A ledger application can help you in the following ways:

  1. You do not need to remember essential contact numbers.
  2. You can easily request and track payments.
  3. An online ledger application will help you to send a GST invoice to your clients.
  4. You do not need to visit your partners, stakeholders, contractors, or other branches. You must stay at home during the lockdown.
  5. You can carry your ledger anywhere you go and easily prepare your balance sheet with a built-in calculator.
  6. Since you can keep track of all your finances on the go, you won’t miss an entry and can easily calculate GST.

How to apply for GST? 

The following steps can help you to apply for GST application:

  1. Go to the GST website and fill up your PAN details, mobile number, and email address.
  2. You will receive two OTPs, one each on your mobile, and your email ID.
  3. Enter the two OTPs to generate your application page.
  4. Fill in the application page with relevant details.
  5. Register using a digital signature certificate.
  6. Fill up your bank details.
  7. Verify and submit your GST application.

Conclusion 

The GST is a mode of unifying many taxes under one roof. GST depends on the area of movement of goods and services. The government is continuously rolling out many benefits for applicants during the economic slowdown. This includes the facility to pay gst online.

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