GST is an indirect tax applicable throughout India which replaced multiple cascading taxes levied by the central and state governments. It was introduced as The Constitution (One Hundred and First Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill. The GST is governed by a GST Council and its Chairman is the Finance Minister of India.
A Person registered under GST, would be allowed to avail input tax credit on goods held in stock, in respect of which he is not possession of any document evidencing payment of central excise duty, in the following manner.
Credit shall be allowed:
When a supplier uploads details of sale invoices, a GSTR-1 is generated by 10th of next month .The details from the suppliers in GSTR-1 automatically gets updated in the GSTR-2 of the purchaser. GSTR-2 is an auto populated return. It will be appearing in the GST portal on its own and has to be only verify/ confirmed by the purchaser, retailers do not have to file GSTR-2, as they have to only match with what the suppliers has uploaded on the GST network.
GSTR-3 is a combinated of GSTR-1 & GSTR-2 and is computer generated. It gives the summery of the Total Output Tax Liability (-)Input Tax Credit and the difference is the tax liability for the month.
The GST council has relaxed the return filing rules for the first 2 months i.e. July & August . For July, sales invoices have to be filled by september 5th instedad of august 10th . And incase of agust,business will have to file sales invoiced by september 20th instead of september 10th.
8 digit HSN code is adopted for Classifying goods and service tax, GST.
# HSN codes of 8 digit are mandatory in case of export and import of goods.
# Taxpayers whose turnover is Rs.5 crore and above shall use 4 digit HSN Code.
# Taxpayers whose turn over is above Rs. 1.5 crore but below Rs. 5 crore shall use 2 digit HSN code.
# Taxpayers whose turnover is below Rs. 1.5 crore are not required to mention HSN code in their invoices.
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