S20

Menu

+91 7069 646028

Menu

Tag: GST classes ahmedabad

Posted on by admin-s20

GST Compliances for Composition Scheme Dealers

GST Composition Scheme provides relief to small businesses in the form of lower rates…

Read More

GST Composition Scheme provides relief to small businesses in the form of lower rates and lesser compliances. By opting for this scheme, a business can pay GST at a fixed rate, without claiming input tax credit. You can learn more nitty-gritties regarding applicability/eligibility and benefits of this scheme by taking GST classes in Ahmedabad at Super 20 Training Institute (s20.in). Meanwhile, the article here lists down the compliances to be undertaken, should you or your client opt for this composition scheme.

Typical compliances for an indirect tax scheme involve:

In the context of GST composition scheme, these compliances are explained as under:

A. Opt for the scheme
For traders and manufacturer : If turnover is upto Rs. 1.50 Crores p.a.
For Service sector : If turnover is upto Rs. 50 Lacs p.a.
then only a person can opt for composition scheme as the scheme is to benefit small businessmen.

Where a registered dealer desires to opt for composition scheme, typically he is required to do so before or at the beginning of the year, by filing Form GST CMP-02. Where the scheme is opted for in the middle of the year, it becomes applicable from the month following the month in which the form is filed.

Persons applying for fresh registration under GST and opting for composition scheme, may do so by filing Form GST REG-01.

Once a dealer has opted for the scheme, there are two more statements to be filed:

  • Form GST CMP-03 – This statement provides information regarding stock and inward supplies held on the day of opting for the scheme. 
  • Form GST ITC-03 – This statement is required to be filed in order to reverse any input tax credit already claimed on stock of inputs / capital goods before opting for this scheme.

If all these forms and compliances seem daunting, attend GST classes in Ahmedabad to get complete clarity and sort out any queries you may have. 

B. maintaining detailed records
The main purpose of the scheme is to provide relief to taxpayers from comprehensive maintaining of records and compliances. Therefore, unlike regular dealers, dealers registered under the composition scheme are NOT required to maintain detailed records. Further, they are NOT required to collect taxes either, as the taxes are paid at a fixed rate out of own pocket. However, the following to-do’s should be borne in mind:

  • The dealer must issue a Bill of Supply, and NOT a tax invoice.
  • All bills of supplies must state ‘composition taxable person, not eligible to collect tax on supplies’.
  • All hoardings outside the office / at other prominent places must clearly state ‘Composition taxable person’. 
  • Composition delaer can not make any interstate sales.

C. Calculating and payment of taxes
A dealer under the composition scheme should collectcollate the following details of:

  • outward supplies on which tax is payable
  • inward supplies on which tax is payable on reverse charge

Thereafter, compute tax liability by using fixed (reduced) rates as applicable, and split tax liability equally among the CGST and SGST components. Further, credit of input tax cannot be claimed by a GST composite dealer. Add interest payable (if any).The afore-said details would need to be filled in Form GST CMP-08. Form CMP-08 is a statement-cum-challan required to be filed on a quarterly basis. It summarizes the tax liability of the dealer alongwith other relevant details sought by the government. Due date for payment of taxes as well as filing of this statement is 18th of the month following the quarter for which taxes are being paid.

D. Filing of returns – Quarterly and annual
The quarterly statement in Form CMP-08 mentioned above serves as quarterly return as well (it replaces erstwhile quarterly Form GSTR 4).

An annual return also needs to be filed by a GST composite dealer by 30th April following the relevant financial year.

Law prescribes penalties where there is delay in filing of the returns mentioned above. Super 20 Training Institute offers excellent GST return training in Ahmedabad so that you can ensure that the return filing process for you and/or your clients is smooth and hassle-free.

Posted on by admin-s20

Classroom Courses for Practical Knowledge and Training on GST

It’s been a while now that GST became applicable. A lot has been discussed…

Read More

Training-for-GST

It’s been a while now that GST became applicable. A lot has been discussed before and after its introduction. The provisions have been explained and thrashed out at various forums, and many teething issues have also been identified. Moreover, some of these issues have even been resolved by the Government from time to time.

Having said that, no one can deny the novelty as well as the vastness of the subject. While concepts may seem similar to VAT and service tax, there are so many new provisions as well. Further, there are various aspects to the law like applicability, rate, input credit, compliances etc. and each aspect has its own nuances. Gathering a good understanding is important for all professionals, whether you are advising your own company or your client’s.

Why take a GST training?
As is in all cases, the Internet definitely comes in very handy to get a quick overview on the basic provisions. Some blogs may help you identify certain problem areas as well. But as they say, nothing beats classroom training.

A proper training on GST would not only answer your WHATs, but also WHYs. A classroom training would start from the basics including history and genesis of the legislation, it’s structure, and what the law says. And most importantly, the reason why a provision in law says what it says. Also, formal training helps you understand the practicalities, all at one place. The Internet might tell you the deadline for filing GST return, but only a good training institute would tell you the issues that you would face while filing the returns and how to deal with it. What’s best is that you don’t need to spend your precious time on reading and comprehending various sources on the internet. You don’t have to waste time trying to summarize them – and not to forget – getting confused with divergent views / thoughts that people may have. Instead, training on GST could help you get a good grip on the subject without wasting any time, as the experts would have already done their research.

What to Expect From a GST Training?

1) Practical, Practical, Practical Knowledge!
No one needs to know the section number or exact wording. ‘Bookish knowledge’ is not what you would want. It’s the practical GST training classes that is required so as to be able to apply it in your everyday work. Now in doing so, if you need to know some history, that would be fine!

2) Going Beyond The GST Law
Yes, a good GST training may also integrate some accounting and related aspects to it. Though, it may not be completely possible sometimes, and you may have to subscribe to a related accounting course. The point is that you should aim to get a good grip of the law and how it merges with other facets relevant in an organization.

While the Internet is a good source, it is not the answer when you are looking for a structured, thoroughly researched learning on GST. Subscribe to centres like Super 20 Training Institute for its very educative, practical GST training courses.

Posted on by admin-s20

What is Reverse Charge Mechanism under GST?

GST is an indirect tax, whereby seller recovers tax on goods / services supplied…

Read More

GST is an indirect tax, whereby seller recovers tax on goods / services supplied to the buyer, and then
deposits the tax so recovered to the Government of India. While this is the primary way tax is collected
and paid, there is an exception to this mode, namely reverse charge mechanism.

Under reverse charge mechanism, the buyer of goods / services is required to deposit GST directly to the
tax authorities, and the seller need not collect the tax, nor undertake any related compliances.

These principles can be understood in detail when you join GST classes at Super 20 Training Institute.
However, a brief is provided below to get you started.

History and Genesis

Following the normal process (also referred to as the forward charge) may still leave some
transactions untaxed. In a country as vast as India, with unorganized businesses, reverse charge acts
as an effective mechanism to plug the loopholes and implement the law.

Reverse charge mechanism existed in the pre-GST era as well, i.e. in the service tax regime.

Applicability

Liability to pay tax on the buyer / recipient of goods and services arises under the reverse charge
mechanism under the following scenarios:

(i) Based on nature of goods / services supplied, or nature of supplier
Some examples are:
– supply of a service by a non-resident to any person in India
– supply of legal services by an advocate to any business in India
– supply of services by a director of a company to the company in India

(ii) Where a taxable supply is made by an unregistered dealer to a registered dealer [applicability
deferred to 30 September 2019]

When a registered dealer procures a taxable good or service from an unregistered dealer, the
liability to pay GST shifts to him under reverse charge mechanism and he is required to pay GST,
instead of the unregistered supplier. The exception to these cases is when the total procurements
by the registered dealer in a day do not exceed Rs 5,000 (whether from one or all unregistered
suppliers).

The above list is only indicative and not exhaustive. You could learn more at Super 20’s GST classes.

Further, where reverse charge mechanism is applicable, GST would need to be deposited on any
advances paid to the supplier too.

Compliances required / Other aspects

A recipient required to pay GST under reverse charge mechanism must obtain GST registration and
undertake all compliances like any other registered dealer.

GST under reverse charge mechanism needs to be paid in cash, and input tax credit cannot be used to
pay the same. However, once paid, input tax credit can be claimed against GST so paid. The exception to this is the case of a GST composition dealer who is generally not allowed to claim input tax credit,
and therefore cannot claim credit of taxes paid under reverse charge mechanism either. Further,
when a composition dealer has to pay GST under reverse charge mechanism, he must pay at full rates
(and not at lower rates applicable to him).

One more important aspect is the Time of Supply – the point when GST is payable. This differs under
reverse charge mechanism from the usual principles under forward charge.

Of course, there are many more technicalities to these provisions. If you have any queries, do reach out
to us and we could guide you further with the right set of GST training that you should opt for,
considering your background, experience and future plans. Super 20 Training Institute offers the best
tax course and would be just the right choice for this purpose.

Posted on by admin-s20

Accounting with GST – Purchase

Despite people taking accounting courses in Ahmedabad, Tally courses in Ahmedabad, GST courses in…

Read More

accounting-GST

Despite people taking accounting courses in Ahmedabad, Tally courses in Ahmedabad, GST courses in Ahmedabad, at times, we find due to clerical errors and lack of due diligence Accountants in Ahmedabad cause loss to their clients.

Hence, in our series of articles explaining accounting with GST today we will discuss purchase accounting with GST.

When we make purchase, we actually pay GST to the vendor/creditor. Under GST mechanism, we will then get credit of GST paid to the vendor. So it is very important for us to do this section very carefully.

Let us take a practical case to get accounting training / GST training in this matter.

Rittal Enterprise in Ahmedabad is a textile trading firm based at Ahmedabad. They purchase readymade shirts from Vittal Enterprise in Ahmedabad, a shirts manufacturer based at Ahmedabad.

Suppose Rittal Ahmedabad have purchased 1,000 nos. of shirts @ Rs. 500/- from Vittal Ahmedabad. Hence, total purchase value is Rs. 5,00,000/-

Now from the lookup of our GST training, we got to know that GST @ 5% is applicable on these kinds of products. Since the purchase is within state CGST @ 2.5% and SGST @ 2.5% will be applicable on this transaction. Since this is a purchase transaction these will be input GST. Input CGST Rs. 12,500/- and Input SGST Rs. 12,500/- will be paid to the vendor.

Now let us understand accounting effect in the books of Rittal Enterprise Ahmedabad:

Purchase of trading goods will always debited in the books of accounts. So, Purchase A/c Dr. Rs. 5,00,000/-. Input CGST and SGST are credits receivable hence they are debited in the books of accounts by Rs. 12,500/- each. The goods are purchased on credit hence Rittal Enterprise Ahmedabad is yet to pay to Vittal Enterprise Ahmedabad. So, Vittal Enterprise Ahmedabad is a creditor and their account need to be credited. So, final entry will look like as below:

Purchase A/c Dr.   Rs. 5,25,000/-
Input CGST Dr.      Rs. 12,500/-
Input SGST Dr.      Rs. 12,500/-
To Vittal Ent. Cr.    Rs. 5,25,000/-

Though this article has its own limitations, you can contact us for various accounting courses, GST courses, tally courses, wherein we try to cover such topics from a very practical perspective based on actual case studies. Super 20 Training Institute is proud to serve students in capacity of the best accounting training institute in Ahmedabad.