GST Myths and Realities Revealed - Get a Clarification Here!
And the most awaited tax regime is implemented! Goods & Services Tax, i.e., GST is now in. There were various confusions in the nation in regards to the execution of the GST. Many were in favor while the others were against the regime. On July 01, 2017, the ACT came into practice, and after a few days of its implementation, the exact rates of GST came further in the notice.
Still, there are chaos and false beliefs which are prevalent in the society. The Revenue Secretary Hasmukh Adhia has made an attempt to clarify some of the common misconceptions and has put in the realities in public through his Twitter post. Let’s take a quick view at the seven common myths which have been busted by Mr Hasmukh.
- Myth 1 : It is believed that the taxable person shall have to generate the invoice on a computer or through the Internet only.
Reality : He has clarified that invoices can be generated manually as well, there are no such mandatory requirements.
- Myth 2 : For doing business, one needs to have internet active all the time under the GST.
Reality : He specified that the Internet would be required only at the time of filing returns under GST every month.
- Myth 3 : Provisional ID & Final ID are different, and one needs to wait for the allotment of final ID for doing business.
Reality : He clarified that Provisional ID is your GSTIN number, one need not wait for any further allotment and can start their businesses.
- Myth 4 : Traders of the items which were earlier exempt and now taxable will have to immediately register now to continue business.
Reality : Mr Hasmukh says they can register under GST within 30 days of implementation and can continue doing their businesses even before registration.
- Myth 5 : The taxable person is required to file three returns per month.
Reality : There is only one return to be filed every month which is divided into three parts; in which the first part is filed by the dealer while the other two are auto populated by the computer.
- Myth 6 : It was believed that even the small business dealers will be required to file the invoice-wise details in the return.
Reality : He clarified that those who are into the retail business, i.e., (B2C) need to file the summary of the total sales only.
- Myth 7 : The rates of GST are greater than the earlier VAT rates.
Reality : Mr Hasmukh clarified that they appear higher because the excise and other duties and applicable cess which were invisible earlier are now visible in the GST.
The Government of India claimed that after GST there will be one nation one tax, however, there are several items which are still kept out of the ambit of the GST Act. For example, petrol, liquor, etc., have been kept out of GST.
People have a misconception that personal expenses will raise now and their income and savings will be strongly hit. But, this isn’t the truth, the GST rates are designed keeping various parameters in mind in order to bring uniformity and minimise the gap between rich and the poor. The short-term implications might be unfavorable for the people but it has been assured by the government many a time that the long-term benefits would be fruitful. So we being the Indian citizen, need to stay calm and trust our government which is going to bring in great opportunities and higher growth.
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