Phone : 8586981071|Email id : info@nsc.ind.in
Being one of the fastest growing economies in the world, Taxation in India has broader scope since decades. Two major taxes that fetch revenue for India are Direct Taxes and Indirect taxes the major difference between Direct Tax and Indirect tax are;
Though the beginning of levy of Indirect taxes in India were not recorded yet there were few references proving existence of Indirect Taxes even Before Christ (BC). During 17th & 18th Century when India was under the British Rule the indirect taxes were imposed and collected on agricultural Produce, commodities, livestock and on many others. After Independence, constitution of India ‘the supreme law of India’ layout federal structure to Indian Government and designate powers to both Central and State Governments. Thus, both Central and state government has power to impose taxes.
Earlier there were several types of Indirect Tax enactments under various Indirect Tax laws: List of Indirect taxes were imposed by Central Government.
Later, these Indirect Taxes were subsumed in current tax system called Goods and Service Tax (GST).
Goods and Services Tax (“GST”) is the current Indirect tax System in India and it came into force on 1st July 2017. GST will impose and collected by both Central and State governments. GST was formed by subsuming earlier Indirect taxes with an intent of “One Nation One Tax” and considered it as Good and Simple Tax in India. This Dual GST Model will be levied on supply of goods and services as recommended by GST council. Intra-state supply attracts Central GST & State GST and Inter-state supply attracts Integrated GST. GST is not applicable on Petroleum products, Tobacco, Alcohol for human consumption and are still charging under some earlier Indirect taxes. Integrated GST is applicable on Imports after imposing Custom duty and exports are exempted under GST. GST facilitates single interface with GST portal for taxpayers and authorities. Implementation of GST eradicated the cascading effect also enable the supplier to avail Input tax credit on inputs used for supply. Broadly GST has brought significant positive impact to the tax system.
Indirect taxation plays a vital role in generating revenue sources to the government.
Advantages of Indirect Taxes:Indirect taxes facilitate consumers in opting better products, Indirect tax mechanism brings proper utilization of resources, leads to healthy competition, boosts the country’s economy ultimately increase the standard of living of people.
Disadvantages of Indirect Taxes:Better to termed it a drawback instead of disadvantage as indirect taxes or current GST regime will be levied same on consumers whose earning capacity is different to one other. Apart from positive sides in beginning it slightly slow down the economy.
The revolutionary implementation of new Indirect tax regime called GST in India and its outcomes are resulted either positively or negatively to Manufacturing, Automotive, Retail, Real estate, Technology and several other sectors.
As new compliances for adaptation seems difficult for new or existing companies/firms/individuals under GST law and the same will be simple with the Professional Advisory.
Professionals of NIDHI SHARMA AND COMPANY have diverse exposure to earlier Indirect taxes & current GST regime and will help the clients in effective transaction planning with indirect Taxes or GST implications, proposing opinions, drafting of suitable replies to department notices, assisting in tax refund procedure, which lead to acceleration of day to day business activities for smooth functioning of organisation.
Litigations under Indirect taxation prior to GST and during or after evolution of GST has absolute hardship with new and existing laws for various taxpayers.
Professional of NIDHI AND COMPANY can solve the litigations of earlier Service tax, Excise duty and current tax regime of GST in diversified manner until disposal of matter and helps taxpayers by handling the disputed matters before authorities and CESTAT.
Goods and Services Tax (GST)is a consumption tax used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but it is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.
Goods and services are divided into five different tax slabs for collection of tax: 0%, 5%, 12%, 18% and 28%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory tax rate for most goods was about 26.5%, Post-GST, most goods are expected to be in the 18% tax range.
The tax came into effect from 1 July 2017 through the implementation of the One Hundred and First Amendment of the Constitution of India by the Indian government. The GST replaced existing multiple taxes levied by the central and state governments.
The tax rates, rules and regulations are governed by the GST Council which consists of the finance ministers of the central government and all the states.
| Return | Description | Who can File | Standard Date for Filing |
|---|---|---|---|
| GSTR-1 | Statement of Outward supplies of Goods or Services | Normal Registered Person | 10th of the next month |
| GSTR-2 | Statement of Inward supplies of Goods or services | Normal Registered Person | 20th of the next month |
| GSTR-3B | Simple Monthly Return for the period Jul 2017 to March 2018 | Normal Registered Person | 20th of the next month |
| GSTR-4 | Quarterly Return | Taxable Person opting for Composition Levy | 18th of the month succeeding the quarter |
| GSTR-5 | Monthly return for a non-resident taxpayer | Non-resident taxpayer | 20th of the month succeeding tax period & within 7 days after expiry of registration |
| GSTR-5A | Monthly return for a person supplying OIDAR services from a place outside India to a non-taxable online recipient | Supplier of OIDAR Services | 20th of the next month |
| GSTR-6 | Monthly return for an Input Service Distributor (ISD) | Input Service Distributor | 13th of the next month |
| GSTR-7 | Monthly return for authorities deducting tax at source | Tax Deductor | 10th of the next month |
| GSTR-8 | Monthly statement for E-Commerce Operator depicting supplies effecting through it. | E-Commerce Operator | 10th of the next month |
| GSTR-9 | Annual Return | Registered Person other than an ISD, TDS/TCS Taxpayer, casual taxable person and Non-resident taxpayer. | 31st December of next Financial Year |
| GSTR-9A | Simplified Annual Return under Composition Scheme | Taxable Person opting for Composition Levy | 31st December of next Financial Year |
| GSTR-10 | Final Return | Taxable person whose registration has been surrendered or cancelled | Within three months of the date of cancellation or date of order of cancellation, whichever is later |
| GSTR-11 | Details of inward supplies to be furnished by a person having UIN | Taxable Person opting for Composition Levy | 31st December of next Financial Year |
*Registered persons having aggregate turnover of up to 1.5 Crore rupees in the preceding financial year or the current financial year shall furnish GSTR-1on a quarterly basis. Other Registered persons having aggregate turnover of more than 1.5 Crore rupees shall furnish these returns on a monthly basis. Filing of GSTR-2 and GSTR-3 has been postponed till a further announcement in this regard is made.
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