New Delhi, July 3 : The Goods and Services Tax (GST) reform finally implemented in the country. But its not that easy to understand every bit of single tax regime as due to complexity of there are lots of confusion among the people.
However, to ease the tax maze we bring myths and facts about India’s biggest tax reform.
Higher tax rate :
Myth: The new GST rate is comparatively higher than previous VAT.
Fact: It seems to be higher because excise duty and other taxes which were hidden earlier are now subsumed in GST and so visible now.
Utility bills payment by cards:
Myth: If someone is paying utility bills by credit cards, they would have to pay GST twice.
Fact : False. GST is only levied once, irrespective of the payment mode, be it by cash or cards.
Myth: All invoices must be generated on computer/internet only.
Fact : Invoices can be generated manually also.
Myth: A retailer needs internet 24/7 to do business under GST
Fact : Internet would be required only while filing the monthly return of GST.
Myth: A retailer have a provisional ID but have to wait for final Goods and Services Taxpayer identification number(GSTIN) to do business
Fact : There is no need to get GSTIN number as he or she can continue business by using Provisional ID.
Ease of doing business:
Myth: The business which was earlier exempt will need new registration ahead of starting a business now.
Fact : One can continue his/her business and get registered within a span of 30 days
Filing returns (businesses):
Myth: There are three return per month to be filed under new tax regime
Fact : No, there is only one return with three parts, out of which first part filed by the trader and two other parts auto-populated by computer.
Myth: Even small businessmen will have to file invoice wise details in the return.
Reality: Those in retail business (B2C) need to file only summary of total sales.