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R.R.JAGADEESAN, GST PRACTITIONER WELCOMES YOU TO "ABHIVIRTHI" WITH LATEST UPDATES ON GST - GOODS AND SERVICES TAX ACT, IGST - INTEGRATED GOODS AND SERVICES TAX ACT, CGST- CENTRAL GOODS AND SERVICES TAX ACT, SGST - STATE GOODS AND SERVICES TAX ACT, UTGST - UNION TERRITORY GOODS AND SERVICES TAX ACT WITH NOTIFICATIONS, CIRCULARS, FORMATS, GST TAX RATES,PRESS RELEASES, HSN CODES AND OTHER INFORMATION FOR BUSINESS SECTOR AND INDUSTRIAL SECTOR AND SERVICE SECTOR, PRIVATE BANKS, PUBLIC SECTOR BANKS, PUBLIC SECTOR UNDERTAKINGS, STAKEH0LDERS, ACADEMICIANS, STUDENTS AND CHARTERED ACCOUNTANTS AND GST PRACTITIONERS WITH COMPLETE GUIDELINES FOR ONLINE REGISTRATION, ONLINE RETURN FILING, ONLINE PAYMENT AND ONLINE GENERATION OF CERTIFICATES IN GST PORTAL (www.gst.gov.in) As per the Notification No. 78/2020 dated 15th Oct 2020, the tax payers, having Aggregate Annual Turn Over (AATO) above Rs 5 Crore, shall use atleast 6 digit HSN code in the e-Invoices and e-Waybills and other tax payers shall use atleast 4 digit HSN code in E-Invoices and E-Way Bills with effect from 1st October, 2023.-----GSTR-2B WILL BE AVAILABLE IN THE AFTERNOON OF 14TH AS ITS GENERATION COMMENCES AFTER END OF DUE DATE OF GSTR-1/IFF FILING ON 13TH TAXPAYERS MUST FURNISH 4 DIGIT HSN CODES AND 6 DIGIT HSN CODES IF THE AGGREGATE TURNOVER IN THE PRECEDING FINANCIAL YEAR IS BELOW RUPEES 5 CRORES AND ABOVE RUPEES 5 CRORES RESPECTIVELY AND 8 DIGIT HSN CODES IF THE GOODS ARE EXPORTED IRRESPECTIVE OF QUANTUM OF TURNOVER THANK YOU VERY MUCH FOR YOUR VISIT AND BOOKMARKING THIS BLOGSPOT FOR FREQUENT VISITS-----SHARE THE ARTICLES WITH YOUR COLLEAGUES AND FRIENDS USING PRINT FRIENDLY OPTION AVAILABLE ON THE RIGHT SIDE-----TO VIEW MORE ARTICLES PLEASE VISIT AGAIN AND AGAIN. ABHIVIRTHI R.R.JAGADEESAN அபிவிருத்தி R.R.ஜெகதீசன் अभिविरथी R.R.जगदीसन
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PLEASE CLICK "GST RETURN DUE DATES" TO VIEW THE LAST DATE OF FILING OF GST RETURNS IN INDIA----PLEASE CLICK "GST IN INDIA" TO VIEW ACTS AND RULES, GST TAX RATES, CIRCULARS, CLARIFICATIONS, NOTIFICATIONS, FORMATS, HSN CODES ETC
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Wednesday, October 5, 2016

GST - Best return filing option under GST Regime


HOW TO CHOOSE RETURN FILING OPTION TO EARN MORE PROFIT IN GST REGIME

The Honourable Finance Minister of India under the esteemed leadership of Honourable Prime Minister has published and made available on public domain the draft model of Goods and Services Tax Law on 14.6.2016.




The Goods and Services Tax Act, 2016 will be applicable all over India including Jammu and Kashmir.

The Constitution Amendment Bill for Goods and Services Tax (GST) has been approved by the President of India.

Introduction of Goods and Services Tax in India will be possible only if majority of States ratify the bill in their Assemblies and for that purpose at least 50% of the States have to ratify the Amendment Bill. 

As on 1st October the following States and Union Territories have ratified the legislation.


S.No.
Name of the State / Union Territory
Date of Ratification
1
ASSAM
12.8.2016
2
BIHAR
16.8.2016
3
JHARKHAND
17.8.2016
4
HIMACHAL PRADESH
22.8.2016
5
CHHATTISGARH
22.8.2016
6
GUJARAT
23.8.2016
7
MADHYA PRADESH
24.8.2016
8
DELHI
24.8.2016
9
NAGALAND
26.8.2016
10
MAHARASHTRA
29.8.2016
11
HARYANA
29.8.2016
12
TELANGANA
30.8.2016
13
MIZORAM
30.8.2016
14
SIKKIM
30.8.2016
15
GOA
31.8.2016
16
ODISHA
1.09.2016
17
RAJASTHAN
2.09.2016
18
PUDUCHERRY
2.09.2016
19
ANDHRA PRADESH
8.09.2016
20
ARUNACHAL PRADESH
8.09.2016
21
MEGHALAYA
9.09.2016
22
PUNJAB
12.9.2016
23
TRIPURA
26.9.2016



As more than 50% of the States in India has ratified the Amendment Bill for Goods and Services Tax Act in their Assemblies, the President of India has gave assent to the Constitution Amendment Bill on Goods and Services Tax (GST) and thus the passage will pave the way for setting up of a GST Council that will decide the rate of tax, Cess and Surcharges.

The Union Cabinet has approved the process, formation and functioning of the Goods and Services Tax (GST) Council as per the Article 279 A of the Constitution on 12.9.2016.

The GST Council consist of the following composition:

Chairperson: Union Finance Minister

Member: Union Minister of State (Mos) in-charge of  Revenue of                                  Finance

Members: The Minister in-charge of Taxation or Finance or any other Minister nominated by each State Government.


The first meeting of Goods and Service Tax (GST) Council has been held on 22.9.2016 and 23.9.2016.

The second meeting of Goods and Service Tax (GST) Council is proposed to be held in October 2016 and Rate of Tax under GST will be decided in that meeting.

There may be so many meetings of GST Council before April, 2017.  There may be so many to be bills passed in respective Assemblies of various States. There may be many debates.  There may be so many Seminars, Conferences, Training Classes at various levels in Offices and Trade Associations. There may be so many guidelines about the introduction of GST.  There may be so many representations from Chambers, Traders and Entrepreneurs and Service Sector people to the State Governments and Central Government. There may be so many representations, arguments, discussions, agreements and also findings. The meetings, seminars, conferences, training classes will be revenue oriented to Government and exemption oriented to traders and guidance oriented to stakeholders. The Goods and Services Tax Act will come into force with effect from 1.4.2017.

HOW TO EARN MORE PROFIT?

This article will be profit oriented to Business Sector, Industrial Sector and Service Sector. No doubt.  This article will lead all people to run business without any loss.

REGISTRATION

The following categories of dealers should get registration under GST Act compulsorily:

a)   persons making any inter-State taxable supply;
b)   casual taxable persons;
c)    persons who are required to pay tax under reverse charge
d)   non-resident taxable persons;
e)   persons who are required to deduct tax under Section 37;
f)      persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;
g)   input service distributor;
h)   persons who supply goods and/or services other than branded services, through electronic commerce operator;
i)       every electronic commerce operator;
j)       an aggregator who supplies services under his brand name or his trade name; and
k)    Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.

For other persons, the threshold limit for registration under GST Act will be as follows:

AREAS
THRESHOLD
TURNOVER
FOR
REGISTRATION
PER ANNUM
All States and Union Territories in India (Except North Eastern States)
9 Lakhs
North Eastern States and Sikkim
4 Lakhs

Any supplier who carries on any business at any place in India and whose aggregate turnover exceeds threshold limit as prescribed in a year is liable to get himself registered.

Any person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such condition as may be prescribed.

Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:

·       Legally recognized as supplier of goods or services.
·       Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
·       Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.

Even though the threshold limit for Registration is fixed, voluntary registration facility is available to persons, whose threshold turnover is below Rs. 9 Lakhs and 4 Lakhs under the Goods and Services Tax Regime.

A person who starts a new business or service may get registration voluntarily at the time of commencement of business itself without waiting for the threshold limit for registration. Any person who has taken voluntary registration under the Goods and Service Tax Act has to commence his business or service within six months from the date of registration and if the person who takes voluntary registration fails to commence business or service, the registration will be cancelled.

EXEMPTION THRESHOLD LIMIT

AREAS
THRESHOLD
TURNOVER
FOR
EXEMPTION
PER ANNUM
All States and Union Territories in India (Except North Eastern States)
20 Lakhs
North Eastern States and Sikkim
10 Lakhs


TYPES OF RETURN FILING OPTIONS AND TAX PAYMENTS

There are three types of options available under the GST Act to dealers and service providers:

1)   Monthly
2)   Quarterly (for Compounding options)
3)   Annual

Persons who want to avail input tax credit must opt for monthly basis and persons who do not want to avail input tax credit may  opt for Compounding and a deductor under section 37 (Tax deduction at source), a casual taxable person and a non-resident taxable person may opt for Annual basis.

WHAT IS MONTHLY TURNOVER FILING OPTION?

Disclosure of inward supplies or purchases and outward supplies or sales and filing of returns every monthly along with proof for payment of tax is called monthly basis filing of returns and for filing of monthly returns the following procedures to be adopted.  

DISCLOSURE OF SALES / OUTWARD TURNOVER
UNDER CGST / SGST ACTS EVERY MONTH

Every registered taxable person, other than an input service distributor and a person paying tax under the provisions of section 8 or section 37, shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods and/or services effected, during a tax period on or before the tenth day of the month succeeding the said tax period and such details shall be communicated to the recipient of the said supplies within the time and in the manner as may be prescribed:

Provided that the Board / Commissioner may, for valid and sufficient reasons, by notification, extend the time limit for furnishing such details:

Provided further that any extension of time limit by the Board/Commissioner of State Goods and Services Tax shall be deemed to be approved by the Commissioner of State Goods and Services Tax/Board:

Explanation:- For the purposes of this section, the expression “details of outward supplies” shall include details relating to zero-rated supplies, inter-state supplies, return of goods received in relation to/ in pursuance of an inward supply, exports, debit notes, credit notes and supplementary invoices issued during the said tax period.

(2) Any registered taxable person, who has furnished the details under sub-section (1) for any tax period and which have remained unmatched under section 29, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after filing of the return under section 27 for the month of September following the end of the financial year to which such details pertain, or filing of the relevant annual return, whichever is earlier.


Disclosure of inward supplies TURNOVER under CGST / SGST Acts. (Monthly)

(1) Every registered taxable person, other than an input service distributor and a person paying tax under the provisions of section 8 or section 37, shall verify, validate, modify or, if required, delete the details relating to outward supplies and credit or debit notes communicated under sub-section (1) of section 25 to prepare the details of his inward supplies and credit or debit notes and may include therein, the details of inward supplies and credit or debit notes received by him in respect of such supplies that have not been declared by the supplier under sub-section (1) of section 25.

(2) Every registered taxable person shall furnish, electronically, the details of inward supplies of taxable goods and/or services, including inward supplies of services on which the tax is payable on reverse charge basis under this Act and inward supplies of goods and/or services taxable under the IGST Act, and credit or debit notes received in respect of such supplies during a tax period on or before the fifteenth day of the month succeeding the tax period in such form and manner as may be prescribed:

Provided that the Board/Commissioner may, for valid and sufficient reasons, by notification, extend the time limit for furnishing such details:

Provided further that any extension of time limit by the Board/Commissioner of State Goods and Services Tax shall be deemed to be approved by the Commissioner of State Goods and Services Tax/Board.

(3) Any registered taxable person, who has furnished the details under sub-section (2) for any tax period and which have remained unmatched under section 29, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (2) shall be allowed after filing of the return under section 27 for the month of September following the end of the financial year to which such details pertain, or filing of the relevant annual return, whichever is earlier.

Filing of Returns. (Monthly)

(1) Every registered taxable person shall, for every calendar month or part thereof, furnish, in such form and in such manner as may be prescribed, a return, electronically, of inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other particulars as may be prescribed within twenty days after the end of such month:

Provided further that a registered taxable person shall not be allowed to furnish return for a tax period if valid return for any previous tax period has not been furnished by him

(2) Every registered taxable person, who is required to furnish a return under subsection (1), shall pay to the credit of the appropriate Government the tax due as per such return not later than the last date on which he is required to furnish such return.

(3) A return furnished under sub-section (1) by a registered taxable person without payment of full tax due as per such return shall not be treated as a valid return for allowing input tax credit in respect of supplies made by such person.

(4) Every registered taxable person shall furnish a return for every tax period under sub-section (1), whether or not any supplies of goods and/or services have been effected during such tax period.

(5) Every registered taxable person required to deduct tax at source shall furnish a return, electronically, in such form and in such manner as may be prescribed, for the month in which such deductions have been made along with the payment of tax so deducted, within ten days after the end of such month.

(6) Every Input Service Distributor shall, for every calendar month or part thereof, furnish a return, electronically, in such form and in such manner as may be prescribed, within thirteen days after the end of such month.

(7) Subject to the provisions of sections 25 and 26, if any taxable person after furnishing a return under sub-section (1) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be filed for the month or quarter, as the case may be, during which such omission or incorrect particulars are noticed, subject to payment of interest, where applicable and as specified in the Act:

Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for filing of return for the month of September or second quarter, as the case may be, following the end of the financial year, or the actual date of filing of relevant annual return, whichever is earlier.

WHAT IS QUAERTERLY TURNOVER FILING OPTION TO PAY TAX AT COMPOUNDED RATES

This option is available to the persons whose aggregate turnover is upto Rs. 50 Lakhs per annum with the following condition:

A registered taxable person will be permitted, whose aggregate turnover in a financial year does not exceed [fifty lakhs of rupees], to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not less than one percent of the turnover during the year:

Provided that no such permission shall be granted to a taxable person who effects any inter-State supplies of goods and/or services.

Provided further that no such permission shall be granted to a taxable person unless all the registered taxable persons, having the same PAN as held by the said taxable person, also opt to pay tax under the provisions of this sub-section.

(2) A taxable person to whom the provisions of sub-section (1) apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.

Provided that a registered taxable person paying tax under the provisions of section 8 of this Act shall furnish a return for each quarter or part thereof, electronically, in such form and in such manner as may be prescribed, within eighteen days after the end of such quarter.

Switch over options from monthly to compounded rate and from compounded rate to monthly available with certain conditions.


WHAT IS ANNUAL TURNOVER FILING OPTION?

Every registered taxable person, other than an input service distributor, a deductor under section 37 (Tax deduction at source), a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and in such manner as may be prescribed on or before the thirty first day of December following the end of such financial year.


REASONS FOR INCREASE IN PRICES

A product reaches the consumer from the manufacturer through the following distribution channels.

1.    Manufacturer / Producer
2.    Distributor
3.    Wholesaler
4.    Retailer
5.    Consumer

Each step of distribution channel increases the costs of distribution. Reducing the steps of distribution channel is a common way for businesses to cut expenses.

A manufacturer or producer add some percentage of margins and sells   the same to a distributor. The distributor adds 5% to 10% margin and sells the same to the wholesaler.  The wholesaler adds 2% to 20% margin (Depending on the schemes given to those who buy in big block) and sells to retailers. The retailers adds 10% to 25% margin and sells the same to consumers.

At every step the value of products or goods increases by means of administrative expenses, freight expenses, handling charges, loading and unloading expenses, storage expenses and profit margin.  The product reaches the consumer or customer from retailer at a higher price and for the difference of turnover Value Added Tax levied.

The profit earned by the retailers who sells goods or products to consumers or customers differs based on the filing of their returns.

BEST RETURN FILING OPTION UNDER GST REGIME

        The purchase price of each commodity differs by each buyer based on their return filing options and hence the selling price of commodity has to be fixed based on the purchase price to earn profit by each buyer.

Is it true?

Yes.

Please see the following example.

Purchases and Sales effected by a dealer opted to pay tax on monthly turnover basis
(GST TAX RATE ADOPTED @ 18%)

Purchase value of 500 Nos. of
Readymade Garments at Rs.100.00 each
excluding CGST and SGST                                     Rs.50000.00

CGST @ 9%    on purchase                                    Rs.  4500.00

SGST @ 9% on purchase                                       Rs.  4500.00
                                                                                -----------------
Total Value of 500 Nos. of Readymade Garments  Rs.59000.00
                                                                                -----------------

This is a local purchase bill.  The goods were purchased from a dealer who is paying tax on monthly turnover basis.  The seller may be a manufacturer or an importer or inter-State buyer or reseller of readymade garments within the State.

If the above purchases were made by a dealer who opted to pay tax on monthly turnover basis the purchase cost and the selling cost and tax elements will be as shown below:

The buyer of the above goods is a registered dealer under the GST Act and opted to pay tax on monthly turnover basis and hence he will take CGST of Rs. 4500.00 and SGST of Rs. 4500.00 as input tax credit and avail adjustment of Input Tax Credit on Reverse Charge basis while selling the same goods at a higher price.

See the following example.

Sale value of 500 Nos. of Readymade
Garments at Rs.105.00 each                                  Rs.52500.00

CGST @ 9%    on sale                                            Rs.  4725.00

SGST @ 9%    on sale                                            Rs.  4725.00

Total sale value of 500 Nos of
Readymade Garments                                            Rs.61950.00

Rate per 1 piece of Readymade Garment
 Rs.105.00 + 9.45 + 9.45                                         Rs.    123.90


DETAILS
TURNOVER
CGST  & SGST
PURCHASES
50,000.00
9,000.00
SALES
52,500.00
9,450.00
DIFFERENCE
2,500.00
450.00

The difference of turnover will be dealer’s profit earned on sales and the difference of CGST and SGST will be paid to Government from the CGST and SGST collected from the customers.

In this case the dealer earns 5% profit and sale value of each readymade garment works to Rs. 105.00 + CGST Rs.9.45 + SGST Rs.9.45 = Rs.123.90

A consumer or a customer or a buyer will enquire the rates in various shops and try to purchase the same where the price is at lower cost. A customer may purchase the readymade garment at Rs. 105.00 + 18.90 (CGST & SGST) = Rs.123.90.

                               
Purchases and Sales effected by a dealer who opted to pay tax on QUARTERLY turnover basis AT COMPOUNDED RATES

Purchase value of 500 Nos. of
Readymade Garments at Rs.100.00
excluding CGST and SGST                                     Rs.50000.00

CGST @ 9%    on purchase                                    Rs.  4500.00

SGST @ 9% on purchase                                       Rs.  4500.00
                                                                                -----------------
Total Value of 500 Nos. of Readymade Garments  Rs.59000.00
                                                                                -----------------
This is a local purchase bill.  The goods were purchased from a dealer who is paying tax on monthly turnover basis.  The seller may be a manufacturer or an importer or inter-State buyer or reseller of readymade garments within the State.

If the above purchases were made by a dealer who opted to pay tax on quarterly turnover basis (Compounding rates) the purchase cost and the selling cost and tax elements will be as shown below:

As the dealer has opted to pay tax at compounded rates the dealer cannot take input tax credit and he cannot adjust the same against output CGST and SGST payable. Hence the purchase cost of the above materials by the dealer who is   paying at compounded rates will be at Rs. 59,000.00.  If the dealer paying tax at Compounded rates and if he wants to adopt 5% Gross Profit, the selling cost will be as follows:


Purchase value of 500 Nos. of Readymade
  including CGST and SGST                                    Rs.59000.00
Add 5% Gross Profit                                                Rs.  2950.00
                                                                                -----------------
Sale value of 500 Nos. of Readymade garments
 at Rs.123.90                                                           Rs.61950.00

Rate per 1 piece of Readymade Garment               Rs.    123.90

In order to gain 5% Gross profit, the compounding tax paying dealer has to add 5% margin on the purchase value and CGST and SGST paid on purchases and then sell 1 piece of Readymade Garment at the flat rate of Rs. 123.90.

The dealer has to pay 1% Compounding tax of Rs.619.50 from his margin.

Both dealers are selling goods at the same rate. The dealer paying tax on monthly turnover basis collects tax from the consumers or customers and pays tax to Government after deducting the tax paid on purchase Bills.  The dealer paying tax at compounding rate pays compounding tax from his margin which leads to lesser profit.

ANNUAL TURNOVER CALCULATION EFFECT

Let us calculate the sales turnover with comparison for whole year. The profit margin for monthly tax payer has to be added with the basic price and the profit margin for compounding tax payer has to be added on the purchase value including CGST and SGST.

DETAILS
MONTHLY TAX PAYER
COMPOUNDING TAX PAYER
Purchases
39,00,000.00
39,00,000.00
Add CGST at 9%
Add SGST at 9%
3.51,000.00
3.51.000.00
7,02,000.00
3.51.000.00
3.51.000.00
7,02,000.00
Total
46,02,000.00
46.02,000.00
Purchase cost
39,00,000.00
46,02,000.00
Add 5% margin
1,95,000.00
2,30,100.00
Goods to be sold
40,95,000.00
 CGST 3,68,550.00
 SGST 3,68,550.00
48,32,100.00
48,32,100.00
CGST @ 9% due
SGST @ 9% due
3,68,550.00
3,68,550.00
48,321.00
(at 1% on sale value)
CGST @ 9%
SGST @ 9%
To be paid to Government by monthly tax payer.

1% compounding tax to be paid to Government by quarterly tax payer.
17,550.00
17,550.00
35,100.00
(The monthly tax payer collects output CGST and SGST from the customers and hence  he has to pay only the difference)
48,321.00
(The compounding tax payer is not eligible to take input CGST and SGST paid on purchases and hence he has to pay 1% tax from his margin
Net Sale value received
40,95,000.00
47,83,779.00
(After deducting 1% Compounding tax paid from dealer’s margin
Less Purchase cost
39,00,000.00
46,02,000.00
Profit after payment of CGST & SGST
1,95,000.00
1,81,779.00

The dealer who is filing monthly return gains more profit of Rs.13,221.00 when compared to the dealer who opted to pay tax on compounding basis.

Thus the profit earned by the tax payer on monthly turnover basis will be higher than the profit earned by the tax payer on quarterly turnover basis because the dealer who opted to pay compounded rate has to pay tax from his profit margin whereas the monthly turnover basis tax payer collects CGST and SGST from customers and remits only the difference.

Thus the profit earned by the dealers paying tax on monthly turnover basis will be high and they can develop their business all over the world without any restriction to the maximum extent and gain more profit on huge purchases and sales. The dealers who opted to pay tax on compounding basis have to effect purchases only from the registered tax payers locally and effect only local sales that also to the maximum extent of Rs. 50 Lakhs including compounding tax payable. Thus the compounding tax payers cannot develop their business.

There are also some other disadvantages while choosing the option to pay tax at compounded rates and they are:

DEALERS PAYING TAX ON
MONTHLY TURNOVER BASIS
DEALERS PAYING TAX ON QUARTERLY TURNOVER BASIS AT COMPOUNDED RATES @ 1%
Can avail input tax credit on purchases
Cannot avail input tax credit on purchases
Can effect inter-state supplies of goods and / or services
Cannot effect inter-state supplies of goods and / or services
Can effect imports
Cannot effect imports
Can effect exports
Cannot effect exports
Business people in the same category will effect purchases and avail input tax credit and there may be heavy purchases by other business people.  Business to Business and Business to Consumer sales will not be affected.
Business people in the same category will effect purchases and will not avail any input tax credit and they will have to pay tax for such purchases at the time of sale and hence business people may avoid purchases from compounding taxpayers.
Output tax can be collected from the customers and the difference between output tax and input tax paid after reverse charge.
Compounding tax has to be paid from the dealer’s margin and will not be collected from the customers.
No limitation of turnover
The sales turnover limited to 50 Lakhs per annum.
Monthly Tax payers should file sales details before 10th of succeeding month and confirm purchase details before 15th of the succeeding month and file returns before 20th of succeeding month.
Quarterly Tax payers at compounded rates should file quarterly returns before 18th of the succeeding month.
Timing of payment will be between from 00.00 to 20.00 hours (After 8.00 P.M. to next day morning 6.00 A.M. E-payment facility will not be available.)
Timing of payment will be between from 00.00 to 20.00 hours (After 8.00 P.M. to next day morning 6.00 A.M. E-payment facility will not be available.)

Under the Goods and Service Tax Regime, all tax payers eligible for threshold exemption will have the option of paying tax with input tax credit (ITC) benefits.

Hence the dealers who are under the threshold exemption may also opt for filing of return on monthly turnover basis and avail input tax credit and pay the difference of CGST and SGST.

Similarly instead of opting quarterly basis i.e. compounding option, the dealers may opt for monthly filing of returns to avoid payment of Compounding tax from their profit margin. They can easily increase the volume of turnover and to attract more valuable customers at competitive rates.

Choosing Monthly Turnover Basis Tax Return under GST Regime will fetch more profit


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