Introduction of GST in India has changed the indirect tax system drastically. Many people are having confusion in understanding this system and traders are facing difficulties in GST Return filing and how to do that and who can help them in filing their return etc for online GST application in Mumbai Maharashtra now you can visit to GST registration in mumbai maharashtra portal. This article deals with all these questions and will guide you to understand everything about GST.
Indian economy is on a ride of reforms lately. In recent years the government of India is bullish on making India a friendly country for all kinds of economic activities. In pursuit of these dreams, the government in India has introduced a brand new indirect tax system so as to ease the whole process and make the system uniform throughout the country. This new indirect tax system is called “Goods and Service Tax”. In short, we will use the term GST for it. Now many of us still looking for online GST registration in mumbai maharashtra. There are some online portal such as GST registration in mumbai maharashtra portal.
In this article, I shall simplify the puzzle i.e. GST, GST Return Filing, due date of GST filing, GST rates on goods and services, etc. and clear all the doubts that may have arisen in your curious minds. So, if you are a trader, businessmen, manufacturer(big or small) or a simple curious mind then after reading this whole article, I am pretty much sure you will understand GST as if it’s simple math. Read more about GST and how to get this services easily on GST registration in mumbai maharashtra portal.
What is GST? By GST Registration In Mumbai Maharashtra Portal
GST is a kind of indirect tax system introduced by the government of India in the year 2017. To give effect to this new system, an Act with the name of Goods and Service Tax Act was passed by the Parliament on March 29, 2017 and the Act came into force on 1st July of the same year. To get online GST registration in mumbai maharashtra consult to GST registration in mumbai maharashtra portal.
GST is a game changer for the Indian economy as has been hailed by many economists as it has brought revolution in the indirect tax collection system in India by replacing multiple indirect tax laws that were in place before it’s introduction. Know in depth about GST and it working sector from GST Registration in Mumbai Maharashtra portal.
By replacing multiple indirect tax laws, GST has brought a great relief to the businessmen, traders etc. Earlier indirect taxes were levied by both Centre and States. Taxes levied by Central government would include Excise Duty, Additional Excise Duty, Service Tax, Central Sales Tax etc. Value Added Tax(VAT), Entertainment Tax, Luxury Tax, Octroi etc. were levied by state governments. Get your online GST application in mumbai maharashtra through GST registration in mumbai maharashtra portal.
Apart from that, the rate at which state governments would levy taxes on goods and services would differ in every states. So it can be seen how much complicated the whole indirect tax system was for any trader. A trader or manufacturer of goods or services who had operations in more than one states had to face different treatments in different states with respect to collecting indirect taxes and that would highly affect the cost of the goods or services. For more consultancy on GST registration in mumbai maharashtra go to GST Registration in mumbai Maharashtra portal and many services on GST.
On the top of this, these multiple levels of taxes had made the system so complicated that it had become very difficult for any trader to avail any input tax credit(ITC) due to mismatch of type of taxes levied during the stage of production and supply of goods resulting in cascading effect of taxes. To know about online GST in mumbai maharashtra visit GST registration in mumbai maharashtra portal. This cascading effect has been explained in detail later in the article.
Introduction of GST has replaced all those taxes and now only one type of indirect tax is applicable on every goods and services and that is also uniform throughout the country. However, the tax rates are not same for every kinds of goods and services in the GST regime. Taxes are levied in five slabs and all the goods and services are distributed among these five slabs. There is a GST Council which has been established to take all the important decisions regarding the changes required in the GST system or change in slab rates or any other changes or revision. Finance ministers of every state are ex-officio members of the GST Council which is chaired by the Union Finance Minister. Know how GST was introduce and what it can bring to traders on GST registration in Mumbai Maharashtra Portal.
Know about three types of GST will be levied through out the country explained by GST registration in Mumbai Maharashtra Portal. They are –
- Central GST(CGST): – Taxes collected under this will form part of the revenue of central government.
- State GST(SGST): – Taxes collected under this will form part of the revenue of respective state governments.
- Integrated GST(IGST): – Taxes collected under this will form part of the revenue of those states from where the goods and services are sold but taxes will be collected by the central government and shared with the concerned states. Know more about CGST, SGST, IGST on GST registration in mumbai maharashtra portal.
Both CGST and SGST are levied for intra-state trade of goods and services i.e. goods or services sold within the state. Whereas IGST are levied for inter-state trade of goods and services i.e. trade between two or more states.
Know about GST Slab Rates from GST Registration in Mumbai Maharashtra Portal
It would not be prudent to put all kinds of goods and services under one basket. Therefore GST Council convenes meeting on a regular interval to decide which goods or services are put under which slabs to know how GST council meeting works visit GST registration in mumbai maharashtra portal. As per the 30th GST Council meeting, there are five slab rates under GST. They are –
- At 0% – Essential items are put under this basket of 0% rates so as to make them affordable and within the reach of poor and middle-class people.
- At 5% – Basic items which are of daily uses are put under this slab.
- At 12% – General items.
- At 18% – General items( Most of the items are accommodated under 12% and 18% slab rates. As these two rates are considered the mainstay of GST).
- At 28% – All the rest items including the luxury ones are kept under this slab rates. This is the highest slab rate under GST.
Thought most of the goods and services are accommodated under GST and taxes are levied on them under different slab rates, yet many items are still left out of this such as tobacco products, petroleum products etc, for more information related to GST slab rates and online GST registration in Maharashtra consult to GST registration in mumbai maharashtra portal. This is done to protect the interests of states as taxes on these products form the large part of the revenue of many states in India. Maybe in later years, these products will also be brought in when state governments will feel more comfortable with putting these products also within the ambit of GST. For any queries regarding GST slab rates consult to GST registration in mumbai maharashtra portal.
In the GST Council meeting, members decide which goods or services are to be put in which tax slabs. This decision is to be taken with the approval of majority members, however, so far most of the important decisions in the council meeting have been taken unanimously. So it is not necessary that the tax rates apply on any particular goods or services will remain the same forever. It is subject to change as per the wishes of GST council. The list is revised by the council at regular intervals. Know when GST council meeting are held and their decision by GST registration in Mumbai Maharashtra Portal.
Detailed list of GST rates revision in GST council meetings by GST Registration in Mumbai Maharashtra Portal
Council meets at a regular interval to discuss the agenda of the meeting and they also decide the GST rates on goods and services. As the system is new so they are watching how things are evolving and as per requirement they make a change in the system. As a result, they also revise the rates of goods or services and if the council feels there is a requirement of any revision then they make it. Read briefly about gst rate revision in GST council meetings by GST registration in mumbai Maharashtra Portal.
For the convenience of traders and readers, in this section, I shall discuss every revision made by the GST council in their last few meetings i.e. from 25th GST meeting to 30th meeting.
25th GST Council Meeting
This meeting was held on 18th January,2018. The main agenda of the meeting was to consider over revision in GST or IGST rates over few goods, compensation cess and other policy decisions among many. Here our focus is on mainly revision in GST rates on many goods.
Revisions made in GST rates by the council in its 25th meeting. Below is the list of all the revisions: –
|Serial No.||Heading/Sub-heading||Product Description by gst registration in mumbai maharashtra portal||Revision in Rates|
|1||8702||Buses, for use in public transport, which exclusively run on bio-fuels.||From 28% to 18%|
|2||87||Old and used motor vehicles (medium and large cars and SUVs) on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.||From 28% to 18%|
|3||87||All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax
credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.
|From 28% to 12%|
|4||29 or 38||Bio-diesel||From 18% to 12%|
|5||1704||Sugar boiled confectionary||From 18% to 12%|
|6||2201||Drinking water packed in 20 litres bottles||From 18% to 12%|
|7||2809||Fertilizer grade Phosphoric acid||From 18% to 12%|
|8||38||Following bio-pesticides: –
Bacillus thuringiensis var.
Israelensis, Bacillus thuringiensis var.
Kurstaki, Bacillus thuringiensis var.
Galleriae, Bacillus sphaericus, Trichoderma viride, Trichoderma harzianum, Pseudomonas fluoresens, Beauveriabassiana, NPV of Helicoverpaarmigera, NPV of Spodopteralitura, Neem based pesticides, Cymbopogan
|From 18% to 12%|
|9||8424||Drip irrigation system including laterals, sprinklers||From 18% to 12%|
|10||8424||Mechanical Sprayer||From 18% to 12%|
|11||4418||Bamboo wood building joinery||From 18% to 12%|
|12||1404/3305||Mehendi paste in cones||From 18% to 5%|
|13||2711||LPG supplied for supply to household domestic
consumers by private LPG distributors
|From 18% to 5%|
|14||13||Tamarind Kernel Powder||From 18% to 5%|
|15||88||Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites
|From 18% to 5%|
|16||4601,4602||Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork||From 12% to 5%|
|17||5601 22 00||Cigarette filter rods||From 12% to 18%|
|18||5801 37 20||Velvet fabric||From 12% to 5%(No refund of unutilised ITC)|
|19||7102||Diamonds and precious stones||From 3% to 0.25%|
|20||2302||Rice bran (other than de-oiled rice bran)||From 0% to 5%|
In the meeting, few items were also put into 0% GST rates or say, exempted from any tax. Get latest decision on gst rates revision by gst registration in mumbai maharashtra portal. They are –
- Parts and accessories for manufacture of hearing aids
- De-oiled rice bran
List of revision made in IGST rates are below. Source from GST registration in Mumbai Maharashtra Portal
|Serial No.||Heading/Sub-heading||Product Description||Revision in IGST Rates|
|1||88 or any other||Satellites and payloads and Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and
consumables required for launch vehicles and satellites and payloads
|From 18% to 5%|
In the meeting, there were also discussion regarding changes in compensation cess on certain goods. But no final changes were made in that regard. For online GST Registration in Mumbai Maharashtra consult to GST registration in mumbai Maharashtra Portal.
Apart from that some modifications or clarification were made regarding change in GST rates and definitions by the council. They are below –
|Serial No.||HSN Code and Product Description||Present GST rate||Modifications/Clarification Recommended|
|1||Rail Coach Industry||Applicable GST rate||Only the goods falling under chapter 86 attract 5% GST rate with no refund of unutilised ITC. Goods falling in any other
chapter will attract applicable GST rate under the respective chapters, even if supplied to the Indian railways.
|2||(27) Poly Butylene Feed
Stock & Liquefied
|18%||The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions.|
|3||(2701) Coal rejects||5% + Rs 400 PMT Compensation Cess||Coal rejects fall under heading
2701 and attract 5% GST and Rs.
400 PMT Compensation Cess.
These revisions are notified to be effective from 25th January,2018.
26th GST Council Meeting
This meeting was held on 10th March,2018 in New Delhi. The agenda of the meeting was to again review policy decisions and suggest any changes if required and simplifications of GST return processes and clarifications over many tax rates. Know about 26th GST council meeting in brief from GST registration in Mumbai maharashtra portal.
However, in this meeting no changes were made in regard to GST rates on goods. Few policy decisions were taken. Key highlights are explained below –
- Introduction of E-way Bill: – This has been done to facilitate movement of goods inter-state and intra-state. Now the time taken by the trucks at the border of states to enter it will reduce drastically and hence the goods will reach on time resulting in a decrease in wastage of perishable goods. GST Council has given its nod to the bill. Now the inter-state E-way Bill will be implemented from 1st April 2018 and intra-state E-way will be implemented from 15th April 2018. Whole scheme will be implemented in a phased manner. GST application in mumbai maharashtra is now can be done through GST registration in mumbai maharashtra portal.
- Applicability of TDS and TCS have been postponed until 30th June 2018.
- Regarding GST Return Simplification: – There was talk in the council to make the whole process more convenient for the filers. As the system still is in its nascent stage so it has been decided to let the current GST Return filing system to continue for another three months to see if any new challenges occur, then a review can be done to simplify the whole procedure. Meanwhile, taxpayers can continue to file GSTR-1 and GSTR-3B. GST registration online mumbai maharashtra is now available at GST registration in mumbai maharashtra portal.
- No changes in GST rates: – As mentioned already in the article, no changes or revision has been in the GST rates of goods and services this time.
- Reverse Charge Mechanism is delayed till 1st July 2018. Reverse Charge Mechanism(RCM) is a new tool by the government to collect taxes from unregistered suppliers of goods and services. Under normal circumstances, it’s the suppliers who collect taxes from buyers and then deposit it to the government but under RCM, it’s the buyers who collect taxes from unregistered suppliers and is supposed to pay to the tax authorities. It’s a tool to prevent tax evasion.
- Export Promotion Schemes: – It has been extended until 1st October 2018. An e-wallet scheme is also being brought in to extend this benefit in another name after the expiry of present schemes.
- Export Refund Claims: – Council has given direction to GSTN to expedite the claims.
- Grievance Redressal Mechanism: – A committee has been formed to look into the grievances of users regarding IT glitches in the GSTN.
27th GST Council Meeting
The meeting was held on 4th May 2018. Key highlights of the meeting are explained below –
Know about Nationalization of GSTN on GST Registration in Mumbai Maharashtra Portal
- Goods and Service Tax Network was earlier a privately owned organisation in which central government had a stake of 49%. Rest 51% stakes were owned by non-government organisations.
- In the meeting, decision has been taken to buy the rest 51% stake by the central government. Now the GSTN is completely government owned.
- In future there’s a plan that centre will own 50% in the GSTN and rest 50% stakes will go to states. The stakes will be owned by the states on the basis of GST collection ratios.
How do get GST Return Simplification by GST registration in Mumbai Maharashtra portal
- Again in this meeting, simplification procedure was on agenda.
- The new single return plan has again been postponed for 6 months. Till then the old system will go on and taxpayers will be filling the GSTR-1 and GSTR-3B.
- In the single-return plan system, only one return is required to be filed in a month which will make 12 in a year. At present, a taxpayer has to file 3 returns in a month that makes 36 in a year. It makes the whole process cumbersome. The new system plans to curb that. Get GST registration online in mumbai maharashtra done via GST registration in mumbai maharashtra portal.
- Government is also planning that in the new single-return plan, less information will be asked from the taxpayer so as to make the whole process easy as was the whole idea behind bringing in GST. For GST application in Mumbai Maharashtra visit GST registration in mumbai maharashtra portal.
- To ease the ITC claims, invoices uploaded by the seller any time in a month will be considered a valid document for ITC. In the GSTN, seller uploads the invoices and buyer referring to that claims Input Tax Credit.
- On the GSTN interface, the buyer now can also see the difference between the ITC claimed by him and what has been offered to him.
- In the transitional phase of this 6 months, provisional credit can be claimed by the tax return preparers. After that, it won’t be allowed. Read more about GST Return simplification on GST registration in mumbai maharashtra portal.
- After the expiry of this transitional phase or after coming of the new single-return plan system, no laxity will be allowed with respect to paying of taxes to the government. So if it’s noticed that even after uploading of involves by the seller no taxes has been deposited with the government regarding the same, it would be deducted from the buyer. Automatic reversal of credit would be barred in that case to the buyer. For online GST mumbai maharashtra consult to GST registration in mumbai maharashtra portal.
- Composition dealers and Nil Return Preparers can now file their return on a quarterly basis.
Revision of GST Rates By GST registration in Mumbai Maharashtra Portal
No major changes has been done in this part. A committee of ministers has been formed to look into the case of increase the revenue of farmers and reducing the duty on ethanol as a measure the boost the farmers income. A final decision in this regard will be taken only after the through study by the committee. How committee of ministers has been formed for revenue explain by GST registration in Mumbai Maharashtra portal.
Implementation of sugar cess has been deferred by the council as they felt that some other source of revenue for the farmers can be worked upon and no extra burden needs to be put on existing rates.
Digital Payments Incentives
The council has decided to form a 5 member committee which can look into if any concession can be given to promote digital payments. A concession of 2% on taxes has been proposed to the council where B2C(Business to Consumer) supplies are more than 3% with a cap of Rs 100 per transaction on incentives. Know more in depth of revision done in GST rates by GST registration in Mumbai Maharashtra portal.
28th GST Council Meeting
This meeting was held on 21st July 2018. Council, in this meeting, has suggested a whole lot of reforms to be carried out. It’s a exhaustive list, so I shall deal with them one by one.
Before explaining the key highlights of the meeting, let me first detail the list of revision in GST rates on goods and services. Get all GST related services now in mumbai maharashtra through GST registration in mumbai maharashtra portal.
Revision on GST rates on goods are below –
|Serial No.||Product Description by GST registration in Mumbai Maharashtra portal||Revision in GST rates|
|1||Washing machines||From 28% to 18%|
|2||Vacuum cleaners||From 28% to 18%|
|3||Lithium-ion batteries||From 28% to 18%|
|4||Glaziers’ putty, grafting putty, resin cements||From 28% to 18%|
|5||Paints and varnishes (including enamels and lacquers)||From 28% to 18%|
|6||Televisions up to the size of 68 cm||From 28% to 18%|
|7||Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons etc.||From 28% to 18%|
|8||Trailers and semi-trailers.||From 28% to 18%|
|9||Special purpose motor vehicles. e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries.||From 28% to 18%|
|10||Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, shaver, hair clippers etc.||From 28% to 18%|
|11||Works trucks [self-propelled, not fitted with lifting or handling equipment] of the type used in factories, warehouses, dock areas or airports for short transport of
|From 28% to 18%|
|12||Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk coolers, refrigerating equipment for leather industry, ice cream
|From 28% to 18%|
|13||Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations.||From 28% to 18%|
|14||Bamboo flooring||From 18% to 12%|
|15||Zip and Slide Fasteners||From 18% to 12%|
|16||Brass Kerosene Pressure Stove||From 18% to 12%|
|17||Hand Operated Rubber Roller||From 18% to 12%|
|18||Ethanol for sale to Oil Marketing Companies for blending with fuel||From 18% to 5%|
|19||Solid bio fuel pellets||From 18% to 5%|
|20||Stone art ware, stone inlay work||From 18% to 12%|
|21||Handbags including pouches and purses; jewellery box||From 18% to 12%|
|22||Art ware of cork (including articles of sholapith)||From 18% to 12%|
|23||Wooden frames for painting, photographs, mirrors etc||From 18% to 12%|
|24||Ganjifa card||From 18% to 12%|
|25||Ornamental framed mirrors||From 18% to 12%|
|26||Glass art ware (including pots, jars, votive, cask, cake cover, tulip bottle, vase)||From 18% to 12%|
|27||Aluminium art ware||From 18% to 12%|
|28||Handcrafted lamps (including panchloga lamp)||From 18% to 12%|
|29||Art ware of brass, copper/ copper alloys, electro plated with nickel/silver||From 18% to 12%|
|30||Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of
|From 18% to 12%|
|31||Art ware of iron||From 18% to 12%|
|32||Glass statues (other than those of crystal)||From 18% to 12%|
|33||Handloom dari||From 12% to 5%|
|34||Knitted cap/topi having retail sale value not exceeding Rs 1000||From 12% to 5%|
|35||Chenille fabrics and other fabrics under heading 5801||From 12% to 5%|
|36||Phosphoric acid (fertilizer grade only)||From 12% to 5%|
|37||Handmade lace||From 12% to 5%|
|38||Handmade carpets and other handmade textile floor coverings (including namda/gabba)||From 12% to 5%|
|39||Hand-woven tapestries||From 12% to 5%|
|40||Toran||From 12% to 5%|
|41||Hand-made braids and ornamental trimming in the piece||From 12% to 5%|
|42||Footwear having a retail sale price up to Rs. 1000
per pair (footwear having a price more than Rs 1000 will continue to attract 18% GST)
|From 18% to 5%|
Apart from these revisions, some goods were also exempted from any taxes. Earlier, a rate of 18% to 5% were levied on these goods. In this meeting, the rates are brought down to 0%. The list of goods which have been exempted from GST are below –
- Sanitary Napkins
- Khali dona
- Phool bhari jhadoo (raw material for jhadoo)
- Coir pith compost
- Sal leaves siali leaves and their products and Sabai rope
- Stone/Marble/Wood Deities
- Rakhi (other than that of precious or semi-precious material of chapter 71)
- Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd (SPMCIL) to Ministry of Finance.
Know Other miscellaneous changes and exemptions in GST from GST Registration in Mumbai Maharashtra
- On Pool Issue Price(PIP) of Urea imported on government account for direct agriculture use, 5% IGST will be applicable instead of assessable value plus customs duty.
- Coal rejects from washery will be exempted from any compensation cess, which is arising out of cess paid coal on which ITC has not been taken.
Other Clarifications or modifications made in the meeting regarding the applicability of GST rates on certain goods info by GST Registration in Mumbai Maharashtra Portal. They are –
- Water supplied for public uses other than in sealed containers will not attract any GST.
- Marine engine (falling under code 8408 10 93) attracts 5% GST rate.
- Milk enriched with vitamins or minerals salts which is commonly known as fortified milk will fall under heading 0401 as milk and therefore will be exempted from any GST.
- Beet and Cane Sugar (including refined) under heading 1701, will attract 5% GST rate.
- Tamarind Kernel Powder both plain and treated or modified will attract 5% GST.
- Kota stone and similar stones (other than marble and granite) which are not polished will attract 5% GST, whereas ready to use polished Kota stone and similar stones will attract 18%.
Know list of revision in GST rates on services by GST registration in mumbai maharashtra portal are below: –
|Serial No.||Product Description||Revision in GST Rates|
|1||Composite supply of multimodal transportation (with ITC)||From 0% to 18%|
|2||Supply of e-books for which print version exists||From 18% to 5%|
Apart from these revisions many types of services have also been exempted from any GST rates. The list of exemption from GST on services are mentioned below sector-wise –
Social Security/Pension Security/Senior Citizens: –
- Services provided by Coal Mines Provident Fund Organisation to the Provident Fund subscribers have been exempted from any tax rates. Same is the case with services provided by EPFO. Know about different types of GST services on Social security and other on GST registration in mumbai maharashtra portal.
- Services provided by Old Age Home run by central or state governments or by a body registered under 12AA of Income Tax Act to the residents whose age should be 60 years or more. It is to be noted that exemption is given to services worth Rs 25,000 a month per member only. Anything more than that will attract applicable GST. Get your online gst registration in mumbai maharashtra done through GST registration in mumbai maharashtra portal.
- Services provided by any unincorporated body or any non-profit body registered under any law which is engaged in the welfare of industrial and agricultural labourer or farmer or for the promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment will be exempted from any tax. Services offered by these organisations to its own members against consideration in the form of membership fee will also be exempted from any tax provided the membership fee does not exceed Rs 1000 per member per year. Read more Social security/Pension Security/Senior citizens on GST registration in mumbai maharashtra portal.
- Administrative fee collected by National Pension System Trust.
List of revision in GST rates on Farmers/Agriculture/Food Processing by GST registration in Mumbai Maharashtra Portal: –
- Warehousing of minor forest produce in line with agricultural produce.
- Services by way of artificial insemination of livestock except horses.
- Services provided by FSSAI to food business operators.
- Installation work and commissioning work undertaken by electricity companies and DISCOMS to provide electricity for the functioning of tube well of farmers or agriculturist is also exempted from any tax. Online GST registration in mumbai maharashtra can now be done through GST registration in Mumbai Maharashtra Portal.
Government Services: –
- Guarantees given by central government/state government/Union Territories Administration to their public sector undertakings or other undertakings.
- Services provided by government to Emergency Response Coordination & Communication(ERCC) by way of assigning the right to collect royalty, DMFT(District Mineral Foundation Trust) etc. from mining lease holders. Get your online GST registration in Mumbai maharashtra through GST registration in mumbai maharashtra portal.
- Reinsurance services provided to various government insurance schemes such as Ayushman Bharat Scheme.
- Import of services by Foreign Diplomatic Missions, United Nations and other International Organisations on the basis of reciprocity.
- Services supplied by person having establishment within India to any establishment of that same person situated outside India, which are treated as establishments of distinct persons in accordance with Explanation I in section 8 of the IGST Act provided the place of supply is outside the taxable territory of India in accordance with section 13 of IGST Act.
Modifications/Clarifications given by the Council are – by GST Registration in Mumbai Maharashtra Portal
- GST should be applicable to accommodation services provided by hotel industries based on transaction value rather than based on tariff value. This will benefit the hotel industry and they can pass on benefits of GST to their customers by offering discounts. Know about modification done by Council on GST registration in mumbai maharashtra portal.
- Entry relating to composite supply of food and drinks in mess, restaurant, eating joints, canteens and such supplies to institutions such as educational, factory, office, hospital etc. on contractual basis at GST rate of 5% needs to be rationalised. Apart from this the scope of outdoor catering under 7(v) is restricted to supplies only if the catering is done for functions(outdoor/indoor) that are event based or occasional in nature.
- Rationalisation of reduced GST rate on composite supply of works contract received by the Government or a local authority in the course of their sovereign functions. Now GST application in mumbai maharashtra can be done through GST registration in mumbai maharashtra portal.
- Services provided by central and state educational boards to students for the conduct of examinations has been exempted from any tax and the same has been clarified by the council.
- It has been clarified that services provided by DISCOMS/electricity companies such as “deposit works” etc. for the distribution of electricity will attract GST. For queries related to online GST registration in mumbai Maharashtra visit GST registration in mumbai maharashtra portal.
- Maintenance paid by Auroville foundation to aurovillians is exempted from any tax.
- It’s been clarified that designated courses run by private ITIs will be exempted from any tax but non-designated courses will attract applicable GST.
29th GST Council Meeting
This meeting was held on 4th August 2018. This one was chaired by Shri Piyush Goyal as an interim finance minister. In terms of policy decisions, not much came out of the meeting. No revision in GST rates were made. Key highlights of the meeting are –
On MSMEs: –
- A committee has been formed of ministers to study the concerns of the MSME sectors regarding GST compliance and GST Return filings and recommend measures that can facilitate the process of GST Return filing for the businesses under MSME sector. Read more in detail about MSMEs on GST registration in mumbai maharashtra portal.
On Digital Payment Methods: –
- Promotion of digital payments has been discussed in this council meeting and earlier ones too.
- To do that it has been decided by the council to offer incentives in the form of cashbacks while making payment through digital methods.
- Digital payment methods would include BHIM UPI, UPI AADHAR, RUPAY DEBIT CARD and Unstructured Supplementary Service Data(USSD).
- A cashback of 20% on GST will be credited back to the taxpayer on making payments using above-mentioned methods. Maximum amount of cashback would be Rs 100 per transaction.
- States are given choice to implement these incentive schemes. As its only a trial measure to see if the scheme helps increase GST compliance. A policy decisions regarding this will be taken at a later meeting after thorough analysis.
30th GST Council Meeting
This meeting was held on 28th September 2018. Like the previous meeting, no revision in GST rates has been made. Only discussion regarding GST collection of states among other things have taken place. Key highlights of the meeting are below –
Revenue from GST collection of states: –
- GST collection from north-eastern states have been good enough that it has exceeded the expected target. But in other states, the collection has been less than the pre-GST era. The revenue from GST collection has seen a shortfall of 16% year on year.
- To abridge the gap, a panel of analysts has been appointed who will look into it and suggest how to increase the revenue and reduce the gap between current revenue and targeted revenue.
- It is expected that this deficit in revenue collection will be reduced entirely and there will be a positive growth in GST collection within 5 years of GST implementation.
- However, in future, any revision in GST rates will take into consideration the growth in tax collection in every states.
Formation of Group of Ministers(GoM): –
There have been many issues with GST compliance and deficit in the revenue collection of many states. Some states are also going through difficult times due to natural disasters. So to solve these problems, a seven-member GoM has been formed to look into these issues and suggest measures. This Group of Ministers will look into –
- Levying of Cess: – Many states are facing deficit in revenue collection after the implementation of GST. Due to this, they are not able to meet their budgetary needs. To overcome this, an idea is being considered to levy a cess over GST rates on certain products. GoM will be looking into the long-term effects of levying cess on these products and accordingly a decision will be taken. However, in the meeting, an additional cess of 1% was considered to meet the exigencies of various states. They will also study if the cess should be imposed on a state-to-state basis or all over India uniformly.
- Additional levying of cess in Kerala to provide relief to flood victims: – This idea was put forward by the Kerala government to levy a cess of 10% over the GST rates to meet the revenue required to provide relief to flood victims and recover the loss in revenue due to floods. A decision is expected to be taken by the council in this regard soon.
In the era of GST, the main problem that taxpayers are facing is filing their GST Returns. One should know how to file their GST returns and what information is required and what’s the time limit to do that. In this article, I shall discuss all of them but before that one must what HSN and SAC code are. Knowing these are a must and along with this HSN codes of goods and SAC codes of services are also mentioned below in the article.
What is HSN Code? By GST Registration in Mumbai Maharashtra Portal
HSN Code is short for Harmonised System of Nomenclature Code. It is developed by the World Customs Organisation(WCO) and is in effect all over the world from 1988. This code was developed to classify different types of goods available in the market.
Goods around the world are not known by the same name. Due to diversity in name, a product may have one name in one country and different in another country. So if there’s a trade of this product between these two countries then how would they know which product they are dealing with. There would be a lot of confusion between them regarding the product. So to overcome this, WCO came up with this code to differentiate between goods. Now, this code is uniformly accepted by all 200 member countries.
HSN Code system includes almost 98% of all goods all over the world. In India also, almost all of the tradable goods are brought within HSN framework. The classification of goods in India under HSN has been done under 21 sections. These sections are further classified into 99 chapters and further into 1,244 headings and 5,224 sub headings. In India, the classification of goods are done in 8-digits as against 6-digit HSN code all over the world to facilitate further identification.
It has multi-purpose utilities such as customs authorities use it to levy a tax, traders of different countries use it to trade in goods, collection of statistics in trade of a goods, measurements, etc. The classification is done in such a way that through an HSN Code, one can identify the exact product along with its description from anywhere in the world.
For example, 42021110 is an HSN Code of certain goods. By using this code one can easily identify which product we are talking about here. In this case, the product is travel bags such as trunks, suitcases, sports bag etc. made of leather.
Know about Importance of HSN Code in GST regime from GST Registration In Mumbai Maharashtra Portal
Every traders dealing in goods have to mention the HSN Codes of goods they are purchasing and selling in their GST filing. It is must so knowing the codes is important.
Detailed Description of Identification of HSN Code by GST Registration In Mumbai Maharashtra Portal
How to identify and read the code? Generally, an HSN code is of 6-digit worldwide. In that 6-digit code, first two digits simply refers to chapter under which that product falls under, next two digit refers to the heading and the last two digit refers to the sub-heading under which the product is classified. In India, customs and excise departments have further classified the code by adding two more digits and therefore it becomes an 8-digit code.
For example: – 42 02 22 10 is an HSN code.
Here, 42 refers to the chapter of Harmonised System Code i.e. articles of leather; saddlery and harness; travel goods, handbags and similar containers, articles of animal gut (other than silk-worm gut).
02 refers to the heading of the product i.e. goods like trunks, vanity cases, brief cases, school satchels, travelling bags etc. which are cases of different types. (Note that there could be different types of these bags made up of different materials so even up to this stage one could not know the exact product we are talking about. One would need further information).
22 refers to the sub-heading of the product. Now after knowing up to this part, one can know what product we are actually talking about. In the present case, 22 refers to handbags, shopping bags, vanity bags, school satchels etc. At the international level, 42 02 22 would mean hang bags, shopping bags, vanity bags etc. like cases.
However, in India, a further classification is done by adding 10 to the HSN code and that becomes 42 02 22 10. Here, 10 refers to the kind of material used in making the product i.e. 42 02 22 10 is the HSN code for shopping bags, handbags and school satchels etc. which is made up of artificial plastic material.
Similarly, 42 02 22 20 is HSN code for handbags and shopping bags made up of material cotton. Here, last two digits 20 refers to the material used to manufacture the product i.e. cotton.
Here again, first 6 digits are same as the previous example so the product is also same, the only thing that changed is the material that is used to make the product and the last two digits in the code signifies that change. Same is the case with SAC code but we will discuss that later in the article.
Know what is SAC Code? On GST Registration In Mumbai Maharashtra Portal
It is short for the Services Accounting Code. Like HSN is used for goods, SAC is used for services. It’s an equivalent of HSN in service arena. It provides uniformity in the identification of services or recognition, taxation, measurement etc.
All around the world the SAC for any kind of services remain the same so it helps in import-export of these services and helps the customs authorities in taxation.
What is the Importance of SAC in GST regime – GST Registration in Mumbai Maharashtra Portal
Businesses engaged in providing services or availing services have to mention the same with SAC in their tax return filing. So it’s necessary to know what it is.
Understanding SAC explained by GST Registration in Mumbai Maharashtra Portal
Services Accounting Code(SAC) also contains 6 digits code like HSN and here also the code helps us to know the kind of services it is referring to.
First two digits of the code refer to the chapter under which service is listed in. Next two digits refer to the heading and last two digits refer to the sub-heading part. Reading the whole code will tell us the exact service it’s referring to.
In SAC, the first two digits are same for every code i.e. 99. Every SAC starts with 99. This two-digit 99 mainly refers to the services. So if you see any code that starts with 99, then it must be referring to some kind of services.
What is GST Return? Explained by GST Registration In Mumbai Maharashtra Portal
It is a document containing all the income details such as sales, purchases, GST collection etc. This document is filed by the taxpayers to the tax authorities. Using this document, tax authorities determine the tax liabilities of the taxpayer and enforce compliance of proper payment of taxes.
Generally, a GST return contains the details like –
- Total purchase of goods along with it’s HSN goods and SAC in case of services.
- Total Sales (including HSN and SAC details)
- ITC (GST already paid while purchasing) and
- Output GST (Collection on the sale of goods)
Who files GST Return? Know from GST Registration In Mumbai Maharashtra Portal
Generally every regular business registered with GST has to file their return in a stipulated time. It is mandatory and necessary requirement to avail ITC.
Types of GST Return by GST Registration In Mumbai Maharashtra Portal
There are 13 types of return that is being filed with the tax authorities but not all needs to be filed by every businesses. It requires certain qualifications to file other returns. In general, a regular business has to file two types of GST Return. They are GSTR-1 and GSTR-3B.
This document contains details of taxable goods or services that have been sold or supplied. People also use another term like the outward supply of taxable goods and services. Don’t confuse with the two. Both means the same thing.
One return needs to be filed every month so in a year, a total of 12 such returns are filed. All the data are filed manually by the taxpayers.
Know about Due date to file GSTR-1 from GST registration In Mumbai Maharashtra
As the return is filed for every month. So due date for every month is 11th of next month. Earlier, it was 10thof next month but since October 2018, the date has changed to 11th of next month.
This one contains details of outward supply or sales of goods or services along with Input Tax Credit claimed. Taxes are also being paid by the taxpayer under this document.
This return is also filed every month. But the good thing is, one doesn’t need to fill in all the details manually as is the case with GSTR-1. This one gets auto-filled when one files GSTR-1 manually. Total 12 such returns are filed in a year.
Know about Due dates of filing GSTR-3B from GST registration in Mumbai Maharashtra Portal
20th of next month is the last date to file this for every month.
Note that late GST filing will make you liable to late fine. Fine includes interests on outstanding tax at the rate of 18% and late fee of Rs 200/day (Rs 100 on CGST + Rs 100 on SGST). There is a maximum limit of Rs 5000 on the late fee. There’s no limit on interests charged on outstanding taxes.
Though at times the due date to file return gets extended every time but you can’t rely on that fact. So filing your return on time is necessary.
Apart from monthly return, a taxpayer has to file a separate annual return for GSTR-1 and GSTR-3B. So including these and monthly returns of both the documents, one has to file a total of 26 (2 annual + 12 monthly each) GST returns. Though it sounds cumbersome, it is what it is. One needs not to worry. Experts at GST Registration in Mumbai are always there to help you.