Do I have to go to jail if someone wrongly takes GST number based on my documents?

- A to Z of GST - Harsh Kishore

- Today, more than 140 countries around the world have GST or its equivalent modern indirect tax system in place

Instead of worrying, if you are a little careful, your documents cannot be misused. In the same way we keep the important information private in case of fake currency notes or ATM password and other important information to avoid cyber fraud, similarly we have to take care that the Aadhaar card and other proofs do not fall into the hands of an unknown person. Along with being careful, knowing the basics of GST like design of GST, organs of GST, structure of tax, exempted goods, importance of registration and turnover limit, taxes, why some people do wrong, etc.

GST raises some important questions

- Sir I am a retailer doing business but not many people buy from me everyone says first get GST number then why should we buy from you?

- If I want to get a GST number, which documents do I have to provide, which form do I have to fill?

- Do I have to pay tax interest and penalty if the seller turns out to be wrong later?

- What is bogus billing? What things should be taken care of to avoid it?

- My daughter is studying CA and son is doing 11th commerce. What should be done if both want to understand GST in Gujarati?

- Why is this GST law so complicated?

- Thousands of amendments have been made in GST and new court cases are coming daily from above. As a lawyer, the brain curdles.

- When going to file the paper, the speed of the computer is not available. what to do

This new column of GST has been launched to keep traders, lawyers, aspirants preparing for competitive exams, students of economics and commerce as well as officials with the latest and latest information at their fingertips.

There are mainly two types of taxation: direct (eg income tax) and indirect (eg GST). Out of the 144 crore population of our country, about 100 crore people are directly or indirectly affected by the Goods and Services Tax Act. Because almost 90% of goods and services except vegetables, milk, grains which are useful to every person are subject to GST subject to certain conditions. You all must feel that the GST law is very complicated and the GST Council constituted by Article 79-6 of the Constitution of India or the government is making it more and more complicated. The Delhi-based GST Council is chaired by the Union Finance Minister and the Finance Ministers of all the states are its members. The GST Council makes recommendations to the Central and State Governments on all policy matters related to GST such as tax rates, return reforms, tax credits, refunds, clauses-rules, etc. In fact, all the reforms that are being made in GST today are being done to help reduce the hassles of taxpayers and tax advisors as well as those implementing GST.

First of all, know that there were 17 indirect tax laws of the central government and the state government in the country, which were implemented for the last 66 years, the challenge of combining them into one law is not a small one!! The good intention of the central and state governments was that there is no double taxation and its overall burden is reduced, balanced economic development is achieved, tax rate wars between states are stopped, our industries can survive in global competition, exports are encouraged and boosted, in the new tax system its Ease of implementation and enforcement, minimal disputes and court cases.

Today, more than 140 countries around the world have GST or an equivalent modern indirect tax system in place. And many places also saw a decline in government tax revenue in the early years. So it is natural that central and state governments in India are concerned about their respective tax revenues. Because 70% of the total tax revenue of the state, which is required to carry out development works and run welfare schemes, comes from indirect taxes like GST and VAT.

Major reliefs: Existing as per design of GST

1. Current newspapers, dailies or news papers are tax exempted

2. There is tax exemption if the farmer cultivates himself or cultivates through family members

3. Primary education and certain health services are exempted from taxation subject to certain conditions

4. GST is not levied on salary received by employees.

5. GST is not levied on RTI service and GST Network service.

6. For small traders, the facility of paying higher taxes has been given to the annual turnover of up to one and a half crore rupees. Similarly, tax payers providing services have been given the facility to pay tax at a higher rate on turnover up to Rs 50 lakh.

7. Mandatory registration form is not required to be obtained in case of turnover up to Rs.40 lakh in goods and up to Rs.20 lakh in case of services.

8. One percent tax on affordable housing

9. Quarterly filing facility for traders with annual turnover below Rs 5 crore.

10. Exemption from mandatory e-way bill in case of goods carrying less than Rs 50,000.

Any changes in GST tax rates, tax exemptions, registration, tax credits, refunds, forms, e-way bill etc. during the last six and a half years have been after extensive discussions at all stages based on the demands of taxpayers and opinions of experts. If the government makes laws favorable to trade, then the businessmen also have a duty to keep their business transactions and accounts true and complete.

GST MCQ: GST is a ___ based tax on consumption of goods and services.

(A) Origin (B) Destiny (C) Development (D) Destination (E) Dividend

Answer (D). Understanding: Regarding the doctrine of origin vs. destination:-

Under the Excise Act, tax was levied if the goods left the factory. While under VAT and under CST, the tax was received by the state from which the movement of goods started. Eg: In case of inter-state sale of goods from Ahmedabad to Jaipur, the tax under CST was received by the Gujarat government.

Now under GST, according to the principle of destination, the state in which the movement of goods will be completed will get the tax of IGST. In the said case, the businessman of Jaipur will ask for a tax credit and through the GST network, the Gujarat government will have to transfer the amount of tax to the Rajasthan government.