PROFESSIONAL COMPUTATION OF GST LIABILITY

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CS PROFESSIONAL COMPUTATION OF GST LIABILITY
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CS PROFESSIONAL COMPUTATION OF GST LIABILITY

• The Goods and Services Tax is a tax levied on
  most goods and services sold for domestic
  consumption. The GST is paid by consumers, but it
  is transferred to the government by the
  businesses selling the goods and services.
  GST provides revenue for the government.
• FOLLOWING STEPS TO BE FOLLOWED FOR COMPUTATION OF
  GST
• 1. Whether goods and services lie in the
  exemption list
• Check whether your respective goods and services
  are in the exempt list and be treated neither as
  goods nor as supplies which are as under-
•  
• Services offered by an employee to the employer
  in the course or relation to employment
• Services offered by court and tribunal
• Services offered by members of Parliament, state
  legislature, Panchayats and Municipalities
• Duties performed by any person who holds the post
  in pursuance of the provisions of the
  constitution in that capacity
• Duties performed by any person as a Chairperson
  member or director in a body established by the
  central government and state government

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CS PROFESSIONAL COMPUTATION OF GST LIABILITY

•  2. First, we have to find out goods and service
  rate tax applicable on goods and service first
  we have to find out what will be the applicable
  rate on required goods and services which is
  mentioned in GST act. After selecting the tax
  rate, we will select the HSN code for supply.
  According to GST, there is 5 slab rates defined
  by the ministry, 5, 12, 18,and 28.
• 3. Determine whether your taxability lies as
  CGST, SGST,and IGST
• For determining whether its IGST, SGST and IGST,
  wewill have to determine the place of supply and
  place of supply is where goods and service are
  being delivered. For services and goods related
  to OIDAR and reverse supply, supply determination
  is a complex issue.
• Interstate supplies are those supplies of goods
  and service between two states which comes under
  IGST
• Intrastate supplies are supplied within a state
  which comes under CGST and SGST

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CS PROFESSIONAL COMPUTATION OF GST LIABILITY

• 4. Whether supply of goods and service under
  reverse charge
• In normal cases of supply, the provider is liable
  to collect taxes from the recipient and remit
  this to the government but in some cases,the
  recipient is liable to pay tax in case of
  notified services by the government.
• 5. Whether supplier is enrolled under the
  composition scheme
• Composition scheme requires the supplier to file
  3 GST return a month and maintain extensive
  accounts. Business having a turnover of less than
  rupees 75 lakhs can register under GST
  composition scheme and can pay simple return
  under this scheme. A composition dealer cannot
  issue tax invoice and thats a reason he cannot
  collect tax from their customers
• 6. Check whether which type of transaction is it
  in GST regime
• There are many transactions in the GST regime
  such as business to business and business to
  consumers, but only in business to the business
  scenario, input tax credit can be claimed and for
  claiming that input tax credit respected person
  should have GSTIN number. However, in the case of
  business to the consumer, there is no requirement
  of GSTIN as goods and services are transferred to
  end consumer.
• Learn CS Professional articles here

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CS PROFESSIONAL COMPUTATION OF GST LIABILITY

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