GST Accounting & GST Filing (Quarterly Plan)
Goods and Services Tax (GST) is an indirect tax (or consumption tax) imposed in India on the supply of goods and services. GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer.
Goods and services are divided into five tax slabs for collection of tax – 0%, 5%, 12%, 18% and 28%. 32% However, Petroleum products, alcoholic drinks, electricity, are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax regime. 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 July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian government. The tax replaced existing multiple flowing 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 centre and all the states. GST is meant to replace a slew of indirect taxes with a federated tax and is therefore expected to reshape the country’s 2.4 trillion dollar economy, but not without criticism. Trucks’ travel time in interstate movement dropped by 20%, because of no interstate check posts.
Before GST under VAT and Excise:
Before the GST, we have to maintain for excise, VAT, CST and service tax. Here’s a list of the few accounts that business had to maintain under the previous regime(apart from accounts like purchase, sales, stock)-
- Excise payable a/c (for manufacturers)
- CENVAT credit a/c (for manufacturers)
- Output VAT a/c
- Input VAT a/c
- Input Service tax a/c
- Output Service tax a/c
For example, a Business had to maintain the minimum basic accounts –
- Output VAT a/c
- Input VAT a/c
- CST A/c (for inter-state sales and purchases)
- Service tax a/c [He would not be able to claim any service tax input credit as he is a trader with output VAT. Service tax cannot be set off against VAT/ CST]
After Goods and Service Tax Implement:
Under GST all these taxes (excise, VAT, service tax) are merged into one account.
The Businesses has to then maintain the following accounts (apart from accounts like purchase, sales, stock) –
- Input CGST a/c
- Output CGST a/c
- Input SGST a/c
- Output SGST a/c
- Input IGST a/c
- Output IGST a/c
- Electronic Cash Ledger (to be maintained on Government GST portal to pay GST)
While the number of accounts is more apparently, once you go through the accounting you will find it is much easier for record keeping. One of the biggest advantages any Business will have is that he can set off his input tax on service with his output tax on sale. VenueTax provides Professional Accounting and GST filing Services in Kolhapur. also Provide Marg ERP software in kolhapur to enable you to generate GST compliance invoices easy and fast.
Register of Goods Produced
Account should contain detail of goods manufactured in a factory or production house
All the purchases made within a tax period for manufacturing of goods or provision of services
Account of all the sales made within a tax period must be maintained
This register should contain a correct stock of inventory available at any given point of time
Input Tax Credit Availed
This register should maintain the details of Input Tax Credit availed for a given tax period
Output Tax Liability
This register should maintain the details of GST liability outstanding to be adjusted against input credit or paid out directly
Output Tax Paid
This register should maintain the details of GST paid for a particular tax period
Other Records Specified
Government can further specify by way of a notification, additional records and accounts to be maintained
Every registered taxable person must keep and maintain books of account for five years from the due date of filing of Annual Return for the relevant year.
HSN is an 8-digit code for identifying the applicable rate of GST on different products as per CGST rules. If a company has turnover up to ₹1.5 Crore in the preceding financial year then they need not mention the HSN code while supplying goods on invoices. If a company has turnover more than ₹1.5 Crore but up to ₹5 Cr then they need to mention the first two digits of HSN code while supplying goods on invoices. If turnover crosses ₹5 Cr then they shall mention the first 4 digits of HSN code on invoices.
Goods And Services Tax (GST) Registration
Under the GST regime, multiple tax levies have been replaced by a single GST tax. This has led to major changes in the accounts the business owners must maintain. Previously, you would have maintained individual accounts for VAT, excise, CST and other service taxes with separate input, output, and credit entries for each. Now, the new tax regime means a completely new list of accounts, featuring the components of GST. GST return filings and maintaining books of accounts can be a headache for businesses but VenueTax Provide the professional Accounting services for MSMEs in Kolhapur also GST filing Services to enable you to focus on core business. Stay with VenueTax, Stay GST Compliant !
An accountant understands the fundamentals of accounting. The proper classification of expenses as capital in nature(eg. Fixed assets) or revenue in nature(eg. purchases) is important. Incorrect accounting can lead to financial losses. Though various accounting tools have come up over the time but the human intelligence is irreplaceable.
Why Not ? You can expect the services at your location based on certain criteria*, but the most of accounting services will be done remotely using online software. Our experts will be available on call and email to address any queries.
Sure, as long as your software can be accessed remotely we can use it. Once you provide us with the access to your software, our experts will login and prepare your accounts.
We Provide our accounting services most of ERP Software widely used by the business, like Tally ERP 9 in Kolhapur, Marg ERP in Kolhapur, Vyapar Software, Cleartax Software, Zoho Books, QuickBook, etc. and other many. so you can expect wide range of accounting services as per your need in Kolhapur
Yes, we Provide GST filing services with most of our Accounting Services Plans.