Well, today I want to tell you that when you read this blog till the end, you may have lot of questions in your mind that what is GST? Why is GST needed? When will you have to take GST? What is the type of GST? What are the different rates? What are the compliance? There are a lot of things and what are the benefits of GST?
You will get to learn all these things in this blog. Now, to explain GST, I do not have to give you only theoretical knowledge Iwant to tell you one thingabout GST. I am so curious myself because there is a lot to learn. We are going to start step by step and I will keep asking you questions and I will ask you questions in such a way that I will try to get the answers to our audience’s questions and you will also teach me.
So sir, here we go. First of all, let me tell you why GST came. What was there? We had a lot of taxes. Service tax was different. Excise was different. Luxury tax was different. There were a lot of taxes and there was confusion everywhere. Which registration does a person have to take? Whose input will he get? There was confusion.
Gateman’s single tax. It was applied all over India. Now, if I do any kind of work, I will get its benefit. That is, the tax can also take the benefit of the input of the computer. First, the service person only got the benefit of the service. The excise person got the benefit of the excise.
The luxury tax person got the benefit of the luxury. The entertainment tax person got the benefit of entertainment. And even we women had a lot of work. How today so many taxes? GST came for that. I will say thank you to Mr. Modi for bringing GST. Now, why did it come? We came to a concept that we get the input of GST.
It is a single tax and the compliance is done at the same place. So, in India, the revenue is very high and the compliance has also become easy. The first point has been done for us that whist came and what are its benefits?
Second and most important, what are the types fogs? There is confusion because some say CGST will be applied, some say SGST, that is, Central Good Service Tax. One is our State Good Service Tax and one comes IGST, that is, Integrated Service Tax.
Now, what is the confusion that which one will be applied one? There are three types. I would like you to write and tell people that SGST, CGST, Stand IGST. Three types of taxes are applied. Now, what is important in this? Which one to apply? This and this are applied when we purchase or sell in the same area, in the same state.
If I buy some goods from Delhi, Mr. Pushcart, if you are in Delhi and you are buying from Delhi, then you will apply two types of taxes. And if Mr. Pushcart will give me something from Delhi in Gurgaon, then he will apply IGST. So, this is a simple verification. If it is within the state, then these two taxes are applied.
If we are sending or buying some goods from one state to another state, then we apply IGST. So, simple Sits qualified in only three categories. SGST means Central, SGST means State. These are the parts. He will take his Central, that is, our Mr. Modi will take his State, that is, the state in which you will purchase or sell.
And this is IGST, that is, it also goes to Central, but State and Central choose their part separately. So, in these three ways, you write in your invoice and when the moment of goods is in the state and in another state, you do its verification and classification. Now there is a question heretic will ask that because people have questions.
Okay, sir, let’s say I give counseling to someone. I am sitting in Haryana. Now I am sitting in Haryana and someone is taking counseling from me. It is the party of Mumbai. So, if I send him an invoice, let’s say have to send an invoice of Rest 9000, according to 18%, now we will talk about the rates. GST of Rest 9000 is also applied.
So, which GST will I apply here? Sir, where you are sitting and Mumbai, these are different states. Both the states are different. So, we will apply IGST. I will make my invoice. Counseling service Rest 50,000, IGST Rest 9000, the total invoice will be overs 59000. Here one thing is understood that I gave service to someone and it was done through a phone call.
IGST is applied. If that person from Mumbai comes to meet me, now I charge Rest 50,000 from the cashier. So, now the GST that will be applied, which will be applied now? Sir, this is the category of service. I fit was goods, then I would say that you would have applied HGST and CGST because your point of sale has ended in your state.
In the case of goods, it is applied, but in the case of service, your recipient is from Mumbai, then you will charge IGST in it. Whether he comes to me. It does not have to be paid because the ultimate consumer is his. Let’s talk about a doctor herein the case of a doctor, does GST apply? In the case of a doctor, there is no GST.
In the case of a lawyer, it is in reverse charge. If you take the service of an advocate, then the advocate will not pay, you will have to pay in reverse charge. The advocate does not need to take GST registration, no matter how much turnover he has. He is forgiven because he is a government official. He is an advocate.
From the beginning, the service tax was also forgiven and GST is also forgiven. In reverse charge, we have to pay. If we are taking the service of an advocate, then very nice. Please continue. The third point is the rate. The most important thing is the most confusing thing is the rate that I should apply for the service at what rate or goods.
I fit is 0%, then some people apply 12%. If you apply 12%, then it can be 0 and there can be recovery. That you had 12% and you are applying 0. So there are four types of rates. I tell you that there is a 5% rate, 12% and 18%. There is also a higher tax that is applied on luxury, 28%and there is also an exempt category.
Exempt means those who do not apply GST. Now there are some codes for this. You have to do the classification properly by looking at your item. This is called the HSN code. HSN code is for goods and SAC, Service Accounting Codes for service.
Now the 0% category and exempt, those who are training in this, they have to be very careful because GST people send notes to them that is it really in 0% and exempt category.
0% and exempt will be the same thing. No, sir, there is a difference. If I have exempt, then GST should never have been applied omit. If it is coming at 0%, then I get a refund of GST on it. That is, I come in the GST category, I will also take out the EV bill, I will do everything. All applicable rules will be applied, but I have to charge 0%.
One minute, one minute, this means that if I want, I can take the input. Yes, the exempt cannot take the input. Now we will explain the input to you. So this input is a very important concept. So keep this category in mind and get your GST registration done because the most income tax notices come on rate classification and GST also.
There is an interlink in both. So keep in mind that whenever you select the rate, it should be in line with your goods. Now my question is that give examples in them also. On which 0% will be applied, on 5, on 12, on 18, on 20. See what is 0% is, those who export goods, suppose I am giving a service in my export, then it will always be 0 rated.
That is, I do not have to charge GST on it, but it comes in Get’s I will get the input rate and I can also take a refund. Is this in the special economic zone? Yes, it is in the special economic zone or overseas. It is always considered 0 rated supply.
5% is currently applied on curd, chickpeas, grains, rice, 5%GST is applied on it, which is a very basic need. 5% is a little lower tax. 12% category is mostly applied on medicines and shoes, clothes, etc. 18% comes in its top category.
This is, all the service categories, whether it is of CA or anything, all have 18% and the goods that come, also come in the18% category.
Now 12% is going to end. These categories are going to remain because the government needs a little revenue. 12% can be the next month. The rate will end. Now we come to 28% because it is the highest rate. So 28% is mostly applied on luxury items.
If you buy BMW, then 28% GST is applied on it, as well as Sass almost 40% tax haste be given to BMW on Mercedes. Or if we are buying cement to make a house, then 28%rate is also applied on cement. So these are the categories. So I say a little.
Exempt. Look, the doctor’s service is exempt. So the doctor does not have to take GST gestation, nor does he have to take out the e-wail, nor does he have today the GST return on the balance, even if his turnover is more than 100 crores.
So there are some categories that always come in the exempt. The government wants not to apply on them. For example, wheat. If you are buying wheat from a farmer, then there is no GST omit. If you are buying from farmer, then the entire GST is exempt.
Yes, if you make flour from it and grind it and sell it in the land, then it will take 5%. The category of farmers is completely exempt. If you sell milk, like the milkman comes in the morning, he brings it in a bag in his utensils, there is no GST on it. So it comes in the exempt category.
Neither does he have to take a gestation, nor does he have to pay GST. To enjoy fully, like a married man enjoys in life. Yes, there are books in exam Because if there are commercial books, then 5% tax will be charged on it What is the definition of commercial? Like we take for studying, there are novels Tax is charged on them
So, it is charged on novels Not on academic books So, there are books in exam, right? Not on academic books, if there is education10th class, 12th class, college It comes in education That’s why Its concept is that The basic needs Tax is charged on it And 5% on commercial books Commercial is 5%
If it comes in high classify it is imported Then 12% to 18% is charged on some people Okay And 5% on e-books5% on e-books-books means It should not be in printed form You download it There are some conditions for it That it should not be commerciality should be academic Okay There are many conditions in it
Now, the next and most important topic, Mr. PushKar That is our registration for GST90% people in India Take registration in a wrong way They don’t know When do I have to take registration? In some people’s case It is mandatory in some people’s case There is the turnover base also and it is in different states
So, when is the registration done on the turnover base? If someone’s sale Has gone more than 40 lakhs in a year Then it is mandatory to take GST Okay As soon as it will cross 40 lakhs It will be 40 lakhs and 1 rupee He will get the registration done for Stand all the compliance of State will have to be done in case of goods Okay
Now, I come to service As a charter accountant I am giving service My limit here is 20 lakhs That means, in any year Financial year1st April From 2000Whatever is going one check it till 31st March Okay If the service of any Cages more than 20 lakhs Then he will take his registration In the service category
Talking about financial year Yes From 1st April to 31st Marche will check his sale And everything will go in sale People get confused here That I will only check the sale of GST Suppose, I am a doctor I also advise the professionals I am also giving rent And I am also selling wheat and grass
So, all my turnover Counts in 40 lakhs People make mistakes They check only Gather say, doctor is forgiving The cow’s milk is also forgiving Curd and milk are forgiving will only check the rental income It is not like that You will see the entire turnovers, you have to take GST Okay?
The second important point Which comes in GSTIs the composition scheme That means, you Instead of 18%, 5%, 28%You can save your entire tax By giving 1% GST Which many people don’t know in today’s date That is called the composition scheme In Gutsier, explain it to people Many people don’t know Many people work in the market If your annual income is 1.5 crores
If I am selling something to someone Suppose, you don’t have GSTI will give you a bill of 18% Stir you don’t have 18% GSTI am not taking it from you will take it from someone else Who will give me in a cheaper rate
Now, you have gone from me will take the composition scheme The material was of 100 rupees will give you the same of 100 rupees will not take 18%I will take 100 rupees and deposit 1 rupee to the government as a Gatha rate of composition is 1%0.5 Stand 0.5 Hosts, what will happen with 1%
My GST will be 17%And your GST will be 18%And you will become my customer My sale will be double, triple, 4 times Because I won’t be able to lose you So, there are many SMEs in India Small Sectors
Where they can’t work They can’t give 18%And they can’t take it and there is a business effect They should go to the composition scheme The limit is 1.5 crores and pay 1% from your pockets that they can save from all these problems and the business will also increase, in this cases there any limit as you said There is a limit of 1.5 crores for a year1.5 crores
There are many people Their turnover does not reach 1.5 crores There are many SMEs in India Where it is up to 1.5 crores and you start from 1.5 crores When it will increase Then you can make a planning Make it in two firms You can make it on your husband It will be 3 crores People can do it like this Planning like this That 3 crores is enough for a year
There are very few people Who cross 3 crores If it has been crossed Then a big man will take 18%What difference does it makes, this happened In your goods casein goods cases there any difference in the case of service If someone is giving goods Then there is no rate in the service
But if the service is giving composition Then 6% rate is applied on it That is a limit of 5 lakhs And some categories of service Where you can pay 5% tax Like restaurant Now in the restaurant have no use at 18%Because there is no input Vegetables, milk All items have 5%So what you do Take a rate of 5%Pay 5% to the government
But sir, you will not get credit in the restaurant You will not get If you take 5%If I take 18% in the restaurant Then you will get credit Then there is an option If I am selling 5% in my bill And I am selling people by taking milk, vegetables, fruits Yes Even if I am selling on Zomato, Swiggy Cloud Kitchen Still he cannot take credit
Cannot take credit5% without IT fee Input tax credit in GST Kohen you will get benefiting this registration You have told that If someone’s turnover Crosses more than 40 lakhs That is also an overall turnover Overall turnover Then it is mandatory to take GST registration And if 20 lakhs In case of service
Ok In that also, all the turnovers will be seen Turnover concept is very important Yes’s compliance Where we need the most People say that Pushkarji started his own GST Started on his own He thinks When
I will purchase the sale have to do it Some people take GST registration For backup And file the NIL They make a big mistake If I don’t file ITRE Don’t file GST Both of them have a lot of compliance Income tax and Stew think we will do some work Then only we will do It is not like that If you have taken GST number
Then you have to file NIL return every month Otherwise, you will get penalty It can be 10 rupees20 rupees According to your work NIL is also there And if you do some work Then it is up to 50 rupees and 100 rupees You will get penalty Many people have penalty of 1 lakh
And those people Today Neither can cancel Gestors can do business So whoever is taking GST registration Cancel it Or do compliance every month If we have taken GST registration And we don’t have work for Gotten we can cancel it Yes
So that if we have to take it in future Then we can take it again And don’t be non-compliant Because when we go to take it again We get it from our PAN number We got it earlier also So what will happen You will not get the registration He will say Pay the first penalty
Then do it Your entire future Your future can be ruined By doing wrong GST registration There is some return in it will tell you that GSTR 3B goes in it Which you can do monthly or quarterly will write it once GSTR 3BGSTR 3BAnd GSTR 1Which is important am telling you two Which goes. Okay.
Now what is in 3BThere is payment And our invoice goes in GSTR 1The invoice we give We upload it in GSTR 1Means like now If I give invoice to someone I will upload it in GSTR 1YesIt will be seen on his portal He will take input He will take input
But now have not given money have not given money will give money In GSTR 3BSo many people do this Some people who are in business It will happen That it is seen And do not file 3B return Do not do But now the system has come
That you If you do not file 3BThen next month You will not be able to file GSTR 1It used to be Okay Now you have to file similar two things So that tax theft stops People used to do That they kept putting here For 5 years
They kept doing this Okay It means that You have generated invoices Yes The other person took the credit Suppose someone has generated 5 crore invoice Yes Took 5 crore credit Yes And this is not deposited This is zeroed
They ran away So this is fake Fake was going on It was going on at that time The government understood That when you are filling GSTR 1Then 3B will have to be filled along with it And if there is a difference in your month It is also that you show a sale of 1 crore in GSTR 1And show 50 lakhs in 3BIn the same month
In three days Officer can come to your house and arrest you And at the same time He will do the recovery What is the problem? You have put 1 crore sale in GSTR 1You have uploaded the invoice Because you wanted the input You didn’t have money in 3BYou have shown only 50 lakhs As soon as you file 3BOf 50 lakhs In three days Officer will come to your gate
He will do the recovery Which will be of different amount Without giving any notice Without doing anything Okay sir In India Because many people do tax theft Someone took GSTR registration in the name of this rickshaw driver
Now that poor guy doesn’t know anything Aadhar card and PAN card are roaming around See, let me tell youngster’s intelligence system is very good The rickshaw driver is fine But Sarthe IP address from which the file will be coming He will check Who is filing Okay
There are many things keep going in Gestors intelligence has full backup You can prepare as much as you want For tax theft He is 10 steps ahead of you What is the best thing than this Plan yourself And pay taxes honestly We can laugh Because we know Pay the full tax Because I would like to tell you about all these things
The biggest problem in India is that there is no information Now like you What you just told One is GSTR registration was simple Which was the second This is of our rate No no1%CompositionSo I didn’t even know the composition got to learn from you We pay simple Snow the composition GSTI have heard for the first time
That many people can pay more than 1%Actually what is it People take decisions by themselves We should go to a consultant and discuss our business nature That this is my business This is my client There are many factors Which you should discuss before taking GSTR registration
Do it after that’s means you can do overall tax planning You can do You genuinely Like I understood today Genuinely Someone can save 17%And people save it by taxing it Which is wrong What is the need for that What is the need for that When you have provision in the act That you can save 1%
And your business will also increase You come to me will charge you 100 rupees didn’t charge you 100 rupees So your business will automatically increase Very nice sir these are our two types of compliance You can pay 3B quarterly If you are a small taxpayer There is a limit of turnover of 5 crores So you can do 3B quarterly You have to pay tax monthly You have to make self-composition You have to deposit tax every month
You can pay tax later You can also fill out JSTOR 1 monthly and also quarterly furnishing. We have the option of this so that people can get input. My advice is that we should adopt this monthly so that the complaints are made monthly.
Because you have to make the payment monthly. We do all the work. So we don’t have to stop quarterly. So many people say that we will do quarterly but when you are paying tax, I have paid the money, then why should I not make the complaint? I have also done the working, so at least I should clear it and go
so that people can get input and your miss-making issue also gets over. Now, sir, a question arises. There are many people who have JST registration. For example, I have cinematographer who said that I have a credit of 3 lakhs. I said how did you get 3 lakhs credit? He said that Istook the camera on my JST number and I keep taking the camera.
So I have a JST of 3 lakhs deposited. So can that person take a refund? Sir, the ITC of the refund is some criteria. Let me tell you in the refund. Suppose I export. So my service is zero rated. Now, in this case, whatever input I get, suppose I buy a camera, I can take refund for that. I will get that refund because my rate is zero and there is a tax behind it.
So I have loss. The government says that you take a refund for that. The second case comes. Suppose buy a product that is 5% and my rate was zero. Or for example, I have an input of 12%and my final output is 5%. So I bought the product at 12% and sold it at 5%. So what happens in this case?
It is called inverted duty. In that case, you get a refund. The government will say that yours will always be 12% and this will be 5%. So you take 7%back from us. Like in the case of thread, the thread was coming at 12% and the cloth was coming at 18%.
So this was the problem. There are many such items. The wagons of the railway are also like this. The amount of material comes at 18%and the final output on the railway was 5% first, then 12%, now it has gone to 18%. But when it was 5%, then it was refunded. But sir, I come to the same thing. For example, I gave an example of a cinematographer.
He does his photography. It may be from a longtime. He says that Idol not have work, but I have a credit. He will carry forward. When the business is setup, he will not get a refund. Why will not he get a refund? Sir, there are some categories of refunds. Like 0 rate, 12%, I am a CEO. I have started a business. My expenses have become 1 crore.
But slowly it will be set up. I will not get refund. If he comes to take a refund, he will get a notice of GST. Sir, refund will not be allowed. The system will not allow. The system will not allow. The interest on it will be a penalty if he files.
There are some options when we refund. What is the nature of the refund? But if he has put it for a refund, then you will not get 99% cases. He will not get 100% because there is no option.
If this happens, then every person in India will take the purchase number and will keep purchasing every item and will collect the input and will get refund. Because this is a common question of many people.
Now the salary person is taking laptop. He will also take a GST refund. He will take a laptop refund. He will take laptop refund. He will take a refund of the laptop. He will take a refund of the laptop.
When he has no work, he will get groceries. When he gets so many things, electricity bill, telephone bill, when he will start his work again, when he will get the project again, when he will raise the invoice again, then he will set it offset can be taken from the client. Then he will not have to pay. He will not have today.
He can set it off. Otherwise, every person in India will go to Modi jig for a refund. So, whatever the basics of GST were, today in a few minutes, we study such thick books, have studied for 5 years. Today, on this , we have made people an expert of Gst in a few minutes.
