GST

GST – Ineligible Input Tax Credit under Section 17(5)

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Within the framework of a Goods and Services Tax (GST) system, Input Tax Credit (ITC) serves as a mechanism enabling businesses to offset the taxes paid on their inputs (purchases) against the taxes they accrue from their outputs (sales). However, there are certain situations in which GST input tax credit cannot be claimed for goods or services falling within the purview of Section 17(5) of the Central Goods and Services Tax Act, 2017.

Credits that are restricted or ineligible under Section 17(5):

Section 17(5) of the Central Goods and Services Tax (CGST) Act specifies certain inputs and input services on which ITC cannot be claimed. This provision outlines 11 clauses for which the claiming of Input Tax Credit (ITC) is not available.

Clause (a) of section 17(5) Conveyance & Transportation

ITC cannot be availed on vehicles acquired for the transportation of persons, including:

  • Four-wheeler motorcars
  • Three-wheelers or auto rickshaws
  • Two-wheeler motorbikes or cycles
  • Tempo Travellers (TT) or buses with a seating capacity of 13 or fewer, including the driver.
  • Any other road-used vehicle.

Sub-clause (aa) of Section 17(5) specifies that input tax credit cannot be availed for the acquisition of vessels and aircraft.

However, there are exceptions to these restrictions in certain circumstances, hence in the following cases, ITC can be claimed when used for specific taxable supplies or transportation of goods such as:

  • Further supply of such vehicles
  • Transportation of passengers
  • Imparting training on driving, flying, and navigating such vehicles.

ITC cannot be claimed in case of purchase of ships, vessels or aircraft. However, an exception is given if the buyer is involved in the business of reselling the ships, vessels or aircraft.

Sub-clause (ab) of Section 17(5) specifies the Services related to general insurance, as well as the servicing, repair, and maintenance of motor vehicles, vessels, or aircraft mentioned in clause (a) or clause (aa), are included by this provision.

Subject to the condition that input tax credit for such services will be accessible-

  1. In cases where the motor vehicles, vessels, or aircraft mentioned in clause (a) or clause (aa) are employed for the designated purposes as outlined therein;
  2. Where acquired by a taxable entity involved- (I) in the production of said motor vehicles, vessels, or aircraft; or (II) in providing general insurance services for such motor vehicles, vessels or aircrafts insured by him.

Clause (b) of section 17(5) Acquisition of food, catering, vehicle rental, club services, and travel

You are not eligible to avail of Input Tax Credit (ITC) on the procurement of the following:

  • Expenditure incurred for outdoor catering, food, or beverages.
  • Payments for health services, beauty treatment, plastic surgery, and cosmetic surgery.
  • Providing vessels, aircraft, or motor vehicles for rent, lease, or hire. However, ITC claims may be permitted for exceptional cases as specified in clauses (a) and (aa) above.
  • Expenditure on life insurance and health insurance.
  • Costs related to obtaining club memberships or expenses for health and fitness centres.
  • Expenses associated with leave, home travel concession, or travel benefits for employees on vacation.

You remain eligible to avail of Input Tax Credit (ITC) on expenses related to food, health services, renting of conveyances, and insurance if:

  1. The goods or services are used by a registered person for making an outward taxable supply of the same category of goods or services or both (termed as reselling of the goods or services), or as an element of a taxable composite or mixed supply.
  2. Employer is providing the facility of Membership of a club, or health and fitness centre to its employees,
  • Travel benefits are extended to employees on vacation, including leave or home travel concession.

In the case of (ii) and (iii), The input tax credit for such goods or services, or both, is accessible when an employer is obligated to provide its employees under any prevailing law.

Clause (c) and (d) – Construction of Immovable Property (Other than Plant & Machinery)

A GST-registered individual is ineligible to assert Input Tax Credit (ITC) for GST paid on building construction or job work expenses, whether the buildings are intended for commercial or residential use. This restriction also encompasses any GST paid on construction materials.

ITC cannot be claimed for renovation or repair expenses related to buildings, provided they are capitalized in the accounts.

Nevertheless, construction companies, builders, and promoters engaged in the resale of such constructed buildings are permitted to claim ITC on the mentioned expenses. Additionally, ITC remains applicable for the purchase or construction of plants or machinery.

Clause (e) – Composition Scheme

Businesses registered under the composition scheme are not eligible to claim ITC. Section 10 requires that a composition taxpayer is not eligible to avail of Input Tax Credit (ITC) on GST paid for purchases since they are taxed based on their quarterly turnover. Correspondingly, Section 17(5) of the CGST Act specifies that ITC is not accessible for composition-taxable individuals, irrespective of whether they supply goods or services.

Clause (f) – Non-Resident Taxable Person

A non-resident taxable person is required to prepay taxes. They have the option to seek Input Tax Credit (ITC) for Integrated Goods and Services Tax (IGST) paid on imported goods but are ineligible to claim ITC for any other domestic purchases.

Clause (g) – Personal Use

Claiming Input Tax Credit (ITC) is not permitted for purchases intended for personal use instead of business purposes. In instances where purchases are utilized both for business and personal purposes, the Input Tax Credit will only be granted for the portion used in business, employing the common credit formula

Clause (h) – Free Samples or Gifts

Input Tax Credit (ITC) cannot be claimed if acquired goods are lost, stolen, damaged, written off, or provided as free samples or gifts.

Clause (i) – Fraudulent case of Input Tax Credit

Input Tax Credit (ITC) cannot be asserted for taxes paid in the following circumstances:

  • Previous instances of non-payment or underpayment of tax,
  • Overpayment of tax leading to excess refunds,
  • Fraudulent utilization or availing of excess ITC,
  • Wilful misstatements or suppression of facts,
  • Confiscation of goods and seizure.

Businesses must have robust systems and processes in place to ensure accurate and compliant claiming of Input Tax Credit. Regular internal audits, adherence to tax regulations, and staying informed about changes in tax laws can help mitigate the risks associated with ineligible ITC claims. Our tax professionals help you to ensure compliance with tax laws and regulations and mitigate the risks associated with non-compliance.

Filing of GSTR-9 and the Consequences of Non-Filing

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GSTR-9 is an annual return form that is required to be filed by regular taxpayers registered under the Goods and Services Tax (GST) regime in India. This return provides a comprehensive summary of all the monthly or quarterly returns filed during the entire financial year.

There are different forms of GSTR-9 based on the type of taxpayer. The main form is GSTR-9, but there are also other variations like GSTR-9A for composition scheme dealers and GSTR-9C for taxpayers whose annual turnover exceeds a specified limit, requiring them to get their accounts audited.

GSTR-9 requires reconciliation with the audited annual financial statements of the taxpayer. This ensures consistency between the financial records and the GST returns filed.

Criteria for filing GSTR-9 forms

GSTR-9: – Every person registered under the regular GST scheme is required to file GSTR-9 if  their turnover exceeds INR 2 Crores.

GSTR-9A: – Every person registered under the composition scheme is required to file form GSTR-9A for each financial year.

GSTR-9C: – Every GST registered person whose turnover exceeds INR 5 crores in a particular financial year.

The due date for filing the GSTR-9 forms: – 31st December of the succeeding financial year or as extended by government notification from time to time.

Filing of Nil GSTR-9: – A person is required to file NIL GSTR-9, If

  • Not made any outward supply of goods/services.
  • Not received any supply of goods/services.
  • Not claiming any credit.
  • Not claiming any refund.
  • No other liability is pending.
  • No pending litigation.

Exemption for filing GSTR-9 form: The following are the persons exempted from filing GSTR-9 and  GSTR-9C respectively

  • Taxpayers having turnover up to INR 2 Crores for a particular financial year are exempt from GSTR-9.
  • Taxpayers having turnover up to INR 5 Crores for a particular financial year are exempt from GSTR-9C.
  • Casual Taxable Person
  • Input Service Distributor
  • Non-Resident Taxpayers.
  • OIDAR Services Providers.

Where to file GSTR-9: – Log in to the portal at https://www.gst.gov.in/ (Go to Services> Returns>Annual Return)

Late Fee and Penalties for delayed/non-filing of GSTR-9

  • Late fee for filing of GSTR-9 after due date: – 200 per day (CGST Rs 100/- and SGST Rs 100/-) Maximum Rs. 5000 OR One-Fourth of the  Total Turnover, whichever is less.
  • Late fee for delayed filing of GSTR-9 on interstate supplies: – 200 per day.
  • Late fee for delayed filing of Nil GSTR-9: – 100 per day (CGST Rs. 50/- and SGST Rs. 50/-)
  • Late fee for Non-filing of GSTR-9: – 200 per day (CGST Rs 100/- and SGST Rs 100/-) Maximum ½ of the taxpayer’s turnover in the state or union territory

It’s important to note that GST regulations are subject to changes, and there might be updates to forms and procedures. Our tax experts assist you in staying informed about the most recent guidelines and notifications issued by the Goods and Services Tax Network (GSTN).

Goods and Service Tax Registration

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Good Service Tax

Goods and Service Tax Registration

The Goods and Services Tax (GST) is a tax imposed in India on goods and services or both, and it went into force on July 1, 2017. The tax was created to replace major existing indirect taxes with a single comprehensive tax.

In essence, GST has consolidated several indirect taxes into a single tax, making tax compliance management effective for service and commodity businesses. Various indirect taxes, such as the central excise tax, service tax, VAT, entertainment tax, etc. were rolled into the GST. This huge development has made it easier to file tax returns without the challenges that were faced in the past.

What is GST and how does it work?

GST is a destination-based tax applicable on all transactions involving the supply of goods and services or both for consideration subject to exceptions thereof. The Goods and Service Tax is a tax paid on the manufacturing and sale of goods and services throughout the nation.

GST registration is a process through which individuals or businesses obtain a unique number, from the tax authorities, known as Goods and Service Tax Identification Number.

Eligibility criteria to obtain GSTIN based on the following factors: –

  • Turnover Threshold for GST Registration
    –  If the turnover exceeds INR 40 lakhs or higher in case of the sale of goods. However, in the case of a special category state, the limit is INR 10 lakhs or higher.
    –  If the turnover exceeds INR 20 lakhs or higher in the case of service providers. However, in the case of special category states the limit is INR 10 Lakhs.
    Special category states include Assam, Uttarakhand, Mizoram, Telangana, Sikkim, Arunachal Pradesh, Tripura, Himachal Pradesh, Manipur, Meghalaya, and Nagaland.
  • Mandatory Registration
    Some businesses are required to register under GST regardless of the turnover limit. This includes:
    – Interstate supply of Goods and Services.
    – Casual Taxable Person
    – TDS or TCS Deductors
    – E-Commerce Operators
    – Input Service Distributor
    – Person subject to reverse charge mechanism.
    – Engaged in the business of import-export.
    – Non-Resident Casual Taxable Person
    – Persons previously registered under VAT, Excise, and Service tax.
  • Voluntary Registration
    A person can go for voluntary GST registration even in the case of not meeting the above criteria. Voluntary registration gives the advantage of taking input tax credits and expanding their operations.
  • Documents Required to Obtain GSTIN
    – Permanent Account Number
    – Identity Proof (Aadhaar Card/Voter-ID/Passport or any other government-issued ID proof).
    – Address Proof (Aadhaar Card/Voter-ID/Passport/ Driving License or utility bills of the business premises)
    – Passport size photo (Director/Partner/Proprietor)
    – Business Registration Documents (Partnership deed in case of Partnership firm/ Certificate of Incorporation in case of Private Limited/LLP/Public Limited/ Ownership deed or any other document in case of Proprietorship).
    – Bank Account Details (Statement/Cancelled Cheque)
    – Digital Signature Certificate
  • GST Registration Process
    – Visit the GST official site – (gst.gov.in)
    – Fill out the forms as required.
    – Verification of the uploaded information and documents.
    – Application Reference Number (ARN) is generated
    – Usually it takes 3-6 working days to generate GSTIN.
  • Key Forms that are required to fill in the GST registration Process
    – GST REG-01: – This is the application form for GST registrations. It consists of two parts, Part A and Part B. Part A includes all the personal details of the applicant such as the Name of the applicant, email address, mobile number, etc. Part A shall be filled in the form GST-REG-01. After submitting part, A, a Temporary Reference Number (TRN) shall be generated. Part B shall be filled by using the TRN.
    – GST REG-02: – This form is used to complete Part B of the GST Registration process. Part B includes the detail of the business such as legal name, trade name, date of commencement of business, Principal place of business, Authorized signatory, bank account details, etc.
    – GST REG-03: – This form is issued if GST authorities required any additional information or clarification. This form requests you to provide the requested information within the specified timeframe.
    – GST REG-04: – This form allows you to make necessary changes or amendments if you have provided incorrect or incomplete information in the GST registration application. GST authorities may issue this form to fill in the correct information and resubmit the form.
    – GST REG-06: – This form is used by the GST Authorities to inform the status of your GST application. Application is accepted or rejected shall be intimated by the issuing of this form. If the application is accepted, this form will be issued to notify your GSTN and the effective date of registration.
  • Komplytek Consulting provides the following GST Services
    – GSTIN Application filing
    – Follow up with the GST Authorities.
    – GST Consultancy
    – GST Return Filing
    – All supporting formalities associated with GST Registration Process and Return Filing.

Registrations are important for a business under various laws and regulations. As a part of legal formality, Registrations ensure that your business operates in a legal framework and complies with applicable laws and regulations. Timely registrations and meeting the legal formalities help you to avoid legal penalties and fines.

Komplytek helps you to get familiar with the requirement of registrations under various laws and regulations. Registration under various tax authorities ensures that your business meets its tax obligations on a timely basis. Specific registration requirements and implications may vary depending on the nature of the business. Our team of legal experts helps you to ensure compliance with relevant laws and regulations applicable to your business.

GST Refund – Meaning & Process

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gst-refund

If a registered taxpayer has paid more than their tax obligations or has excess input against the output tax liability, they may be eligible for a GST refund. They may make a claim after filing a refund application via the GST site with the necessary information.

The GST system has provisions that regulate refunds and aims to standardize and simplify the process. Refund requests can now be made using a standard form (RFD-01). Online claim submission is quick and easy to complete.

Section 54 of CGST Act 2017

Any of the following situations, as defined by Section 54 of the CGST Act 2017, may require the taxpayer to submit a GST refund application:

  • On supply of goods or services, tax is paid at a zero-rated tax rate
  • Exports of goods and services occur
  • Supply of goods to SEZs units and SEZ developers
  • Reimbursement of taxes on purchases made by the UN, embassies, etc.
  • Refund for a decision, decree, order, or instruction of appellate authority, appellate tribunal, or any court
  • Refund of accrued input tax credits due to an inverted duty structure
  • A mistakenly excessive payment
  • GST paid on items purchased in India and transported outside of the country when foreign visitors leave India will be refunded
  • Refund due to the issuance of refund vouchers for taxes paid in advance on goods or services that have not yet been provided
  • GST Refund can be claimed in the return furnished under section 39 before the expiry of 2 years.

Documents for GST Refund Application

 Documents declaring tax paid, interest or any other amount, proof of tax deposit, invoices and any other documents evidencing export should be attached with the application.

Self-declaration is required where the refund is less than Rs. 2 Lakhs and the incidence of such tax and interest had not been passed to any other person

The GST Refund Procedure

The processing of a GST refund claim in India is now standardized by the GST legislation. The taxpayer must use a specific form RFD 01 along with the required documents in Annexure 1 to the form and submit the requests for GST refunds using the GST Common Portal.

In order to collect the refund amount, the person must also submit returns on a monthly basis. A refund application is only legitimate if it receives an acknowledgment in GST RFD 02 within 15 days after the submission if the application in form GST RFD 01 is correct. If there is any mistake, it will be communicated in GST RFD 03. 

The competent officer may issue an order in GST RFD 04 authorizing the refund within seven days of the date of acknowledgment if he is initially satisfied that the amount claimed as a refund is accurate.

The relevant officer shall pass an order for refund in GST RFD 06 also known as a final order and shall issue a payment advice in the form GST RFD 05 for the amount sanctioned as refund and the amount gets electronically credited to the bank account of a registered person.

gst-refund

Relevant Date:

In case of goods exported outside India

               

 In case of services exported outside India

                                                                           

 In the case of a supply of goods regarded as deemed exports.

Date of the request for a refund of these exports

Where GST refund arises as a result of any court order, decree, judgment, or direction of any appellate authority.

Date of communication of such decree, order, etc.

In case of a refund of ITC due to an inverted duty structure.

End of the financial year in which such refund arises.

In cases where tax is paid provisionally.

The date on which the tax amount is adjusted after the final settlement.

Where a refund is claimed by any person other than the supplier.

Date of receipt of goods/services.

In any other case

Date when tax is paid.

Why choose us?

Komplytek is a well-known GST consultant in Delhi (NCR). We provide total Goods and Service Tax solutions to our customers, including:

  • Obtaining a Goods and Services Tax registration:
  • Preparing and filing GST returns on a monthly or quarterly basis.
  • Providing advice on a variety of subjects
  • Preparation and filing of Goods and Service Tax refund applications, as well as follow-up
  • Preparation and submission of yearly tax returns

 

Document Identification Number (DIN) under GST benefits & structure.

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Document Identification Number

 

A new system for the electronic development of a Document Identification Number (DIN) for all GST-related communications (including emails) to be delivered by the government offices to taxpayers and other interested parties has been implemented by the Central Board of Indirect Taxes and Customs (CBIC). Any document made without a valid GST DIN will be regarded as invalid. On the CBIC portal, taxpayers can confirm the validity of the Document Identification Number (DIN). in GST.

What does a DIN in GST mean?

A 20-digit document identification number serves as the unique identifier for each communication that government entities deliver to taxpayers. The taxpayer can verify the legitimacy of digital communications they receive from the government using this number.

DIN Structure with an example

The DIN’s structure is “CBIC-YYYY MM ZCDR NNNN,” and it includes:

  • YYYY represents the year that the DIN was created.
  • MM stands for the month in which the DIN was generated.
  • Zone Commissionerate Division Range Code, also referred to as ZCDR.
  • NNNN stands for “randomly generated alphanumeric code.”

The Document Identification Number-DIN

The process of levies and collections involves a lot of communication. A business requests a refund when it pays more tax than it needs. If the corporation pays less than the fair value, the government (tax officials) may order the company to pay more. The tax authorities may occasionally find it suspicious when a firm declares its taxable income to be so low. The firm can receive a notice from the tax authorities.

As a result, it is clear that this communication would require a substantial number of papers, including returns, appeals, letters, notifications, orders, and much more. In order to keep track of all documents, DIN requires government tax officers to attach a distinct DIN to each one.

The CBDT debuted its 10-digit DIN on October 1st, 2019. On November 8, 2019, CBIC papers received an extension, and CBIC also introduced its own 20-digit DIN.

The use and advantages of the GST document identification number

 

The taxpayer would profit from the following benefits of a document identification number on any correspondence from the GST department:

  • Transparency in all dealings with the department to prevent receiving fraudulent notices and make it simple to spot them.
  • Establishing an accurate audit trail for each message the department sends. Uphold the taxpayers’ rights.

 

DIN use/application

 

In GST matters where probes are ongoing and arrest warrants or search warrants have been obtained, the document identification number will now be used. This communication’s legitimacy will be verified by the use of a document identification number. By entering this DIN in the “VERIFY CBIC-DIN” box on www.cbic.gov.in, a taxpayer can authenticate the communication’s authenticity. Only if the communication is legitimate will the window report the information.

 

Why is the DI number crucial for taxpayers and businesses to know?

 

It is common practice to send summons and notices to unofficial email accounts. Implementing a document identifying numbers assures the validity of such notices and shields a taxpayer from pointless annoyance. So, before replying to any notification, it is crucial for a taxpayer to double-check the document identifying number.

 

Taking appropriate action as a result of a notice’s inadequacy, consequences, and lack of a DIN in certain circumstances

 

All correspondence with the taxpayer must have a DIN. Without a document identification number, every communication of this kind is void. To the extent that they were never issued, they are regarded as invalid. A communication could, however, be sent out in certain cases without a document identifying the number. In this case, the taxing authorities are required to provide justification for why the document was issued without a document identification number. On rare occasions, a communication might not contain a document identification number. For example,

  • If a technical fault or other flaw exists in the production of the electronic DIN
  • When an investigation, inquiry, GST DIN Verification, etc. needs to be conducted quickly or urgently, and the authorized official is not present at his normal place of duty (office).

However, any message sent under the aforementioned conditions must be regularized within 15 working days. Taxpayers are urged to be aware that any papers issued by government agencies without a DIN (apart from those issued under the exclusions listed below) would be deemed invalid.

 

The Outcome

 

The aim of the government is to make conducting business easier. It is clear from its assertion that a system without a face would be set up between the assessor and the assessee. The initial step in this approach is DIN.

 

Why should you choose us?

 

The best business management consultant can help clients with matters like finances, GST, human resources, compliance procedures, and strategy formulation. To enhance their operations and performance, a variety of public and private businesses use business management consultants.

Leading business management consulting company Komplytek provides practical solutions to companies in many markets and sectors. We help companies perform better by giving them expert guidance on how to expand and get around challenges. Furthermore, we provide integrated services and solutions that support finance, accounting, and compliance operations by enhancing control efficacy visibility and ensuring prompt corrective actions. For our clients, we put a lot of emphasis on developing secure, user-friendly accounting and also compliance management solutions.

 

 

 

Types of Capital Assets, Capital Gain and Taxe

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Types of capital Gains

A capital gain is any profit made from the sale of an item classified as a capital asset. Capital assets include things like machinery, leasehold rights, patents, trademarks, cars, land, buildings, and real estate. The income category includes the profit that was made on the sale of a capital asset. The tax on capital gains is imposed when an investor sells an investment and makes a profit. It is due for tax in the year in which the investment is sold. Consequently, a tax must be paid on the gain arisen /income earned.

Types of Capital Assets

The following is a list of the two categories of capital assets:

  1. Short-Term

Short-term assets are those that have a holding period of less than 36 months. The period is less than 24 months in the case of immovable property. However, in the case of the sale of securities, shares, UTI Units, Zero Coupon Bonds, and equity-oriented mutual funds, the period for calculation of short-term capital gain is less than 12 months. Such an asset would generate a capital gain upon sale, which would be subject to the relevant short-term capital gains taxes.

  1. Long-Term

A long-term asset is one that has been held for more than 36/24/12 months, as the case may be. The proceeds from the sale of such an asset would constitute long-term capital gains and would be subject to the relevant tax.

  1. Tax implications on the sale of capital assets:

An assesse is liable to pay tax on capital assets when any capital gain arises on the sale of these assets.

Types of Capital Gain Taxes:

 

1. Short-Term:

Short-term capital gain taxes are levied on capital gains from the sale of assets held for a short period.  They shall be included in the assesse’s income and taxable as per the normal tax slab rate if security transaction tax (STT) is not paid. If STT is not paid, it will be taxed at a rate of 15%.

2. Long -Term:

Long-term capital gain taxes are levied on capital gains from the sale of assets held for a longer period (more than 36/24/12 months).  They will be taxed at various rates.

On sale of Equity Shares/Units of equity oriented mutual funds – 10% over and above Rs.1 Lakh

Other than equity shares/ units of equity oriented mutual funds – 20%

If a person in India inherits a property and there is no sale, no capital gains tax is due under the Income Tax Act. However, if the inheritor decides to sell the property, tax will need to be paid on the sale’s earnings.

Why should you choose us?

The best business management consultant can help clients with matters like finances, human resources, compliance procedures, and strategy formulation. A variety of public and private businesses use business management consultants to enhance their operations and performance.

Komplytek is a leading business management consulting firm that offers effective solutions to firms in a variety of industries and regions. We help companies perform better by giving them expert guidance on how to expand and get around challenges. Furthermore, we provide integrated services and solutions that support finance, accounting, and compliance operations by enhancing control efficacy visibility and ensuring prompt corrective actions. For our clients, we also put a lot of emphasis on developing secure, user-friendly accounting and compliance management solutions.

 

 

 

Form 26AS – Definition and Purpose

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Form 26AS

An essential tax document is Form 26AS. It is an annual statement that is sent to individual taxpayers and linked to their Permanent Account Number (PAN). Below you will find information on this form’s applicability as well as instructions on how to see or download it online.

 

What is Form 26AS?

An annual statement called Form 26AS contains information on the tax credits applied to a taxpayer’s PAN. A taxpayer can obtain this form using their login credentials from the Income Tax Department’s online filing site.

You can refer to it for information on your income (from which taxes have been deducted) and the taxes that have been paid to the government treasury by or on your behalf by the deductor (which could be your company, bank, etc.).

What purpose does it serve?

 

Before submitting their income tax return, taxpayers should compare their actual transactions to the ones listed on their Form 26AS (ITR). Omissions and other filing errors will be much reduced as a result of doing this. An investigation may be conducted if there is a discrepancy between the Form and your submitted income tax returns.

This form also attests to the fact that several organizations have paid taxes on your behalf and placed the funds in the government account.

 

How can it be downloaded?

 

You may get your Form 26AS from the website of the Income Tax Department. You need to already have a user account in order to register on the website.

 

If you do not log in, how can you access the form?

 

Additionally, you may access your Form using your bank account’s internet banking service. Only if your PAN is connected to your bank account then this function is accessible. Axis Bank, Bank of India, ICICI Bank, IDBI Bank, Indian Overseas Bank, Kotak Mahindra Bank, State Bank of India, and Union Bank are a few of the banks that provide this service.

 

What has changed in Form 26AS?

 

The new form is now an Annual Information Statement (AIS) instead of an Annual Tax Statement. While the Form 26AS and the AIS are both now accessible through the portal, the old Form will be phased out and replaced by the AIS until the new AIS has been verified and is fully functioning. Only tax deducted at source (TDS) against your PAN, tax collected at source (TCS) against your PAN, details of other taxes paid, and information on income tax refunds were included in the previous form. Part A and Part B make up the new AIS.

Part A of the form contains general information about the taxpayer and the following fields:

  1. Permanent Account Number
  2. Aadhaar ID
  3. Name
  4. Date of Birth/Incorporation
  5. Mobile number
  6. Email ID
  7. Address

It is significant to notice that the new Form includes a space for the taxpayer’s cell phone number and email address, which were not previously recorded. This demonstrates the value of the mobile number and email address in the overall scheme of things, as there will only be one faceless method used for all interactions with the tax authorities.

The following details are in Part B of the form:

  1. Details on tax deductions or source-based collections
  2. Details on certain financial transactions.
  3. Information on tax-related payments

What makes Form 26AS and Form 16 different from one another?

 

While the contains all of a taxpayer’s tax-related actions, Form 16 is a declaration that details the total amount paid to an employee and the tax withheld during the course of a fiscal year.

 

For more details, Get in touch with the experts. 

 

4 Essential Benefits of GST for Small Businesses & Start-ups

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Benefits of GST for Small Businesses

Benefits of GST for Small Businesses

In India, GST was implemented to simplify the tax assessment process. To make the compliance process easier, GST was formed with the tagline “One Country, One Tax System.” In this blog, we will look at a few of the key elements of the Goods and Services Tax implementation process for new firms in India.

A Quick Overview of Goods and Services Tax

A value-added tax is the Goods and Services Tax. It covers all stages along the supply chain, right from the manufacturer to the final consumer. As a result, the tax will be borne by the end customer, as the final person/entity in the supply chain. India’s indirect tax structure has been made simpler by the Goods and Services Tax. Both the federal and state governments are subject to the tax framework. It will also replace India’s present many levels of complex taxes.

Here are Four Benefits of GST for Small Businesses and Start-Ups

GST will be a single tax covering all major indirect taxes. As per an evaluation of the GST’s impact on start-ups, they will likely profit.

 1. The widespread use of online registration

Other taxes, such as Excise Duty, VAT, Services Tax, Sales Tax, and so on, have been absorbed by GST. As a result, the main benefits are fewer tax filings and uniform formats. This saves a lot of time and paperwork. Although many states have different registration needs, the process is the same: it is done online and verified. Due to the ability to manage the majority of uploads online and with digital signatures, the GST registration also reduces the amount of manual paperwork.

2. Access to a single national market throughout India

It has major advantages for small firms. Most firms were required, under the previous tax system, to maintain substantial distribution and logistics networks since these networks were built to satisfy the requirements of state level tax reduction. Under the new approach, corporate requirements will drive distribution and logistics networks, allowing smaller firms an equal opportunity to compete with larger ones. For smaller firms looking to increase their national footprint with little expense, this single market throughout India will be a huge benefit.

3. It prevents taxation from cascading

Tax cascading is no longer an issue owing to the GST, which was formed to bring all major indirect taxes under one roof. For small firms, this means greater immediate savings. All indirect taxes were rolled into one with the Goods and Service Tax. In simple terms, the cascading effect was Tax on Tax, and the ITC (input tax credit) was introduced as a great benefit to firms to mitigate this.

4. Increasing the GST Registration barrier for Small Firms

Given that the registration limit is Rs. 40 lakhs, many small firms, mainly start-ups, are free from paying the GST. As a part of benefits of GST for Small businesses it offers a lower tax rate for small firms with a turnover of between 50 lakhs and 1.5 crore, notwithstanding the fact that it is optional. This is refer to as the composition plan under the GST. This will also reduce the tax burden on startup firms.

The GST has helped several sectors of the Indian economy. The benefits of the Goods and Service Tax also vary based on the sort of business you run.

Komplytek is a well-known GST consultant providing services to clients spread across industries and geographies. We provide our clients with entire Goods and Service Tax solutions, such as:

  • Obtaining a Goods and Services Tax registration
  • Preparing and filing GST returns on a monthly or quarterly basis.
  • Providing advice on a variety of subjects
  • Preparation and filing of Goods and Service Tax refund applications, as well as follow-up
  • Preparation and submission of yearly tax return

For Assistance in Managing your Small Business Accounting.

Get in touch with Komplytek today!

Effects of GST on Manufacturers, Distributors, and Retailers

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Effects of GST  on Manufacturers, Distributors, and Retailers

The GST is the largest indirect tax change in the world since freedom. The Indian economy benefited from the implementation of the plan since most items’ prices were reduced. It encourages the consumerism and hence improve economy.

In India, GST is an indirect tax on the supply of goods and services. The Government of India implemented the One Hundred and First Amendment to the Constitution Act 2016 on July 1, 2017, and GST went into effect on that day. It replaced the federal and state governments’ numerous existing taxes.

The Goods & Service Tax is a multistage, complete, destination-based tax. It has effectively absorbed almost all indirect taxes, except for a few state levies. This new tax structure has a slightly varying effect on diverse businesses. The first degree of difference will depend on whether the industry is in manufacturing, distribution, or retail.

The following are the Effects of GST on manufacturers, Distributors, and Retailers:

The Goods and Services Tax is improving India’s manufacturing sector’s competitiveness and performance. Previously, various indirect taxes have raised manufacturers’ and distributors’ admin expenses. However, now that GST is in place, compliance costs have decreased, and the industry is expanding at a faster rate as a result.

Businesses that had previously been exempt from taxation must now register for GST. As a result the Goods & Service Tax removes the possibility of tax avoidance.

The benefits of GST implementation in these industries include:

 

• Lower production costs.

Previously, manufacturers were unable to claim any tax credit of OCTROI, entry tax and other local body taxes and it increased the total cost of production of goods and services adding to manufacturing cost. The GST abolished these cascading taxes, saving manufacturer’s money on the spot. It also established the Input Tax Credit to assist in the reduction of tax bills.

• Increase in the competitiveness

Production costs have been reduced after the implementation of GST, hence it helps to increase the competitiveness of Indian Goods and services in the global market and give boost to Indian exports. The procedure is now much simpler thanks to Goods & Service Tax. The same GST rate applies regardless of the location of the suppliers and buyers. This allows you to pick the most cost-effective providers.

• Better Logistics

With the implementation of GST, numerous state border checkpoints were shut down immediately. You may now register shipments and pay taxes online using the e-way bill system. As a result, you will save time and money on logistics.z

• Simple Registration

One of the major effects of GST is the simplicity in the process. Previously, it was compulsory for manufacturers to register their plants in a single state. GST registration is PAN based and state specific. Manufacturers simply have to file for individual registration under the GST, regardless of the number of factories in a state.

• Longer evaluations are no longer necessary

Earlier, firms had to go through a confusing and lengthy tax assessment process. The companies had trouble answering questions about complicated and diverse taxes such as VAT, central excise, and sales tax. Different tax assessment authorities were in charge of different taxes.

GST was also implemented in the industrial sector, along with a composition scheme. This plan offers various incentives to dealers and producers, which includes:

 

  • The ability to pay GST quarterly rather than monthly relieves the burden of monthly payments.
  • Goods & Service Tax will be charged at a reduced rate of 1%.
  • Only the taxable supply turnover, not their whole income, will be subject to Goods & Service Tax.
  • Unlike ordinary taxpayers who do not use the composition plan, there is no requirement to keep extensive records or keep books.

Komplytek is a well-known GST consultancy in Delhi (NCR). We provide potent solutions to businesses across geographies and numerous industry verticals. Our team comprises team of lawyers and chartered accountants who bring many years of corporate experience with them. Our customers may get entire Goods and Service Tax solutions from us, including:

  • Obtaining a registration for the Goods and Services Tax
  • Preparing and reporting monthly or quarterly GST returns
  • Offering guidance on several topics
  • Goods and Service Tax refund applications, including preparation and filing, as well as follow-up
  • Annual tax returns preparation and submission

8 Essential Benefits of GST

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Following the introduction of the Goods and Services Tax (GST), the government was flooded with input on the tax’s benefits and drawbacks. The GST is a national value-added tax (VAT) that is imposed on the production, purchase, and delivery of goods and services.

It removes major indirect taxes imposed on products and services by state and federal governments. The Goods & Service Tax is substantial tax reform in India and in this post, we’ll look at the positives of GST taxation.

Benefits of GST

1. Business Ease

The Goods & Service Tax introduces the notion of a single national market. It deters states from engaging in harmful rivalry. It has now become beneficial to run a business across state lines.

2. Tax Documentation and Filing Made Easy

Entrepreneurs have benefited from the GST. Because there are no various taxes to deal with, compliance and documentation have become much easier. Filing a return, paying taxes, and obtaining a refund have all become much simpler.

3. Reduces Tax evasion and corruption

The GST Act improves tax administration by making it more transparent and free of corruption. The government lost money as a result of tax evasion before implementation of Goods & Service Tax. There are no hidden taxes, and this reduces the cost of doing business.

4. GST Removes Tax Cascading Effects

Goods & Service Tax combines the majority of indirect taxes levied across the country, removing the “tax on tax” impact that has plagued the supply chain and driven up end-user costs.

5. Powered by Technology

Because it is technology-driven, the entire registration and filing of returns procedure is speed up. It also guarantees that the process is transparent and that tax collection is in accordance with the law. Filling out the registration form, submitting a refund request, dealing with notifications, and dealing with consumer complaints are all facilitated through the GST Portal.

6. Product That Is More Competitive

The Goods & Service Tax has made manufacturing more competitive by addressing the cascading effect of taxes, interstate taxes, and excessive logistics costs. It has benefitted both entrepreneurs and customers.

7. Regulates poorly organized industries

In the country, the textile and construction industries, for example, are highly unstructured and unregulated. GST has made it easier to manage payments, compliance, and input credit online.

8. GST Scheme of Composition

The composition system provides relief from tax responsibilities for small enterprises. Any taxpayer with a turnover of less than Rs. 1.5 crore is eligible for this plan.

Goods & Service Tax and the “Make in India” initiative

GST is the backbone of this strategy, as it applies to imports and gives a boost to manufacturing by reducing superfluous costs. Another benefit is the removal of commercial roadblocks, which make transactions and the free movement of goods across state lines much easier. By removing the arbitrary taxing system, the GST model has united the Indian market. Manufacturing has benefited greatly from reduced logistical costs, and relief from export taxes and refunds.

Komplytek is a renowned GST consultant in Delhi and the NCR. We offer our customers complete Goods & Service Tax solutions, which comprise all services such as:

  • Acquiring Goods & Service Tax Registration
  • GST returns are generated and filed on a monthly/quarterly basis.
  • Consultancy on a variety of issues
  • Goods & Service Tax refund application preparation and filing, as well as follow-up
  • Annual return preparation and filing
  • Auditing and evaluation of the Goods & Service Tax
  • GST Number Cancellation