Under the One Nation One Tax system, the taxation system in India was replaced by GST – Goods & Services Tax. GST was implemented on July 1, 2017. Before its implementation, different taxes were levied. With GST, all taxes were merged to create GST. Since its implementation, the government has made several changes in GST. A GST council meeting was held a few days back, and a few significant changes were implemented in GST. Let’s take a look at the same changes in GST.
As per the change, the taxpayers will know the details of the cash book and Input Tax Claim (ITC) while filing returns. The taxpayers can also get tax information through the GST portal. Earlier, this process was quite complicated. This new arrangement will be very convenient for the taxpayers. With the change in return 3B, as a business owner will fill the details of turnover, the portal itself will calculate the CGST and IGST.
Convenience To SMEs
Businesses with a turnover of Rs. 40 lakh or less are exempted from GST registration. It will directly benefit all the business owners who have a turnover of less than Rs. 40 lakhs. Earlier, the exemption limit was Rs. 20 lakh. The exemption limit for hilly and north-eastern states is Rs 10 lakh. If a businessman wants to start a business of more than 40 lakhs, he can commence the business and obtain GST registration within a month.
The government has come up with a composition scheme to save the taxpayers from filing returns every month. In the GST composition scheme, the registered taxpayer has to pay tax on a fixed rate based on the turnover of the business. The most significant advantage of the composition scheme is that businessmen will not have to file GST tax return every month but quarterly. The business owners with a turnover of less than Rs. 1 crores can take benefit from the composition scheme.
In this scheme, the registered person has to file a return in GSTR 4 form within 18 days of the end of every quarter. At the end of the year – by 31st December, the annual return has to be filed in Form 9A. It is worth stating here that even if there is no transaction throughout the year, the taxpayer will have to file return quarterly and annually.
In the end, it can be concluded that after the implementation of GST, the taxation system in India has improved. GST has benefited business owners as well as citizens.