Goods and Services Tax:Understand CGST, SGST and IGST

Goods and Services tax is an indirect tax levied on goods and services in whole nation. There are three types of GST: CGST (Central Goods and Services Tax), SGST (state goods and services tax) and IGST (integrated goods and services tax). Before GST there were different taxes like VAT, Central excise, Service Tax were being levied by the government on consumers which abolished after GST and makes India “one nation one tax”. There are different GST rates for every products and services levied by the Government.

Details of GST rates on different products: GST RATE SLAB

What is CGST (Central goods and services tax)?

CGST which is also known as central goods and services tax levied by the Central Government on any transaction of goods and services. If there is intrastate supply of goods and service then the seller has to collect both CGST and SGST. The CGST will be collected by the central government and SGST will be collected by the state government.

What is SGST (State goods and services tax)?

SGST refers to state goods and services tax is governed by the SGST act and levied by the state where the transaction of products and services are being purchased or sold. The tax collected from intrastate transaction of goods and services in state will be added to the state government revenue.

What is IGST (Integrated goods and services tax)?

IGST also refers to Integrated goods and services tax is a tax charged on all interstate transactions of goods and services. Integrated goods and services tax is governed by IGST act and applicable to all interstate transaction which mean transactions of goods and services within two different states. Under IGST, exports would be zero-rated and tax will be shared between the central state government.

There are many advantages of GST including transparency and less complicated tax structures which aimed at simplifying the tax reforms and make India a business-friendly nation.

Due to many new concepts in goods and services tax you may have many questions related to GST.  For any assistance related to GST:  Check out GST Query support

Latest updates on GST rate and GST filing

The GST council has slashed the GST rates of 178 items of daily use from tax bracket of 28% to 18% which will come in to effect by November 15^th.Good and Services Tax council took a major step to simplify the process of GST returns filing during the meeting held last week. Now only 50 items left in the highest GST rate slab. The recommendations made by the GST council will reduce the compliance burden on businesses and ease the GST returns filing procedure for companies.

The item includes liquid soaps, chocolates, granite, detergents, perfumes, creams, wash basins, plywood, artificial flowers, panels, boards, tiles, ceramic pipes, glass mirrors, doors, fire extinguishers, compound optical microscopes, wrist-watches, razors and after-shave products which is a welcome step to benefit the consumers. There is no change in GST tax rates on consumer durables. These changes in GST rates of daily use items will increase the consumptions, affordability and consumer sentiment according to the industry experts.

In order to know more about the GST rates of other items included in 5%, 12% and 18% click here: https://www.trutax.in/gst-rate-slab

Changes in GST forms:

The GST council has decided to simplify the GST returns filing process for both small businesses and large enterprises. Before these changes the taxpayers had to file GSTR-1, GSTR-2 and GSTR-3 by 10^th ,5^th and 20^th of the subsequent month respectively.

There are two cases for GST returns filing depends on turnover of businesses.

Businesses with turnover of up to Rs. 1.5 crore a year:

-The last date to file GSTR-1 form for July to September is December 31.

-The last date to file GSTR-1 form for October to December is February 15, 2018.

-The last date to file GSTR-1 form for January to March by April 30, 2018.

Companies with turnover of 1.5 crore or more a year:

-The last date to file GSTR-1 form for July to October is December 31.

-They have to file monthly returns but with a delay of 40 days from the end of the taxable period.

Know more about the details of other GSTR forms and its deadline dates:  https://www.trutax.in/gst-returns-filing

Penalty for last filing of GST returns:

The GST council has also revised the penalty charges for late GST return filing to reduce the compliance burden on small and large businesses. The penalty for late filing of GST return has been cut to 20 per day from 200 per day for small business with a turnover of up to Rs. 1.5 crore and 50 per day for companies with the turnover of Rs. 1.5 crore or more.

It is very important to file the GST returns on time without any errors.

For any expert assistance related to GST returns filing process or query, click here: https://www.trutax.in/askexpert

Understand Defective Return Notice under Section 139 (9) | Upload form 16 on TruTax

Understand Defective Return Notice under Section 139 (9) | Upload form 16 on TruTax

Understand Defective Return Notice under Section 139 (9)

If you get the Notice under Section 139 (9) then it is about Defective Return Notice. You can get this Income Tax Notice under Section 139 (9) due to various reasons and mistakes done while filing your income tax returns. There is no need to panic about this notice as you just need to understand the reason behind it which you will get through mail by Income Tax Department.

In case if you will get the Defective Return Notice then you just need to correct your mistakes and provide the required information mention on mail while filing your return again within given deadline. You will get 15 days to rectify the errors and file your returns correctly. In case if you ignore this notice and fail to rectify the errors mention by the Income Tax Department then your return will be treated as invalid which can be resulted into serious consequences.

Reasons of Defective Return Notice under Section 139 (9):

- Proof of TDS, Advance Tax and Self Assessment Tax.

- Incorrect Income Details Information.

- Claiming Income Tax Refund without paying full taxes.

- Mismatch name on Income Tax Return and PAN Card.

- Fail to provide copy as proof in case of audit under Section 44AB.

- Incorrect income information under the head “profits and gains”.

- Failure to provide mandatory information in ITR form.

It is very important to rectify these errors and file your income tax return within given deadline.

How to rectify the errors under in Defective Return Notice u/s Section 139 (9)?

The process to submit the response to Defective Return under Section 139 (9) as follows:

-Login to Income Tax e-filing Website: http://www.incometaxindiaefiling.gov.in/.

-Click on “e-file in response to Notice u/s 139 (9).

-You will be redirected to the page where you can check the Defective Return Information.

-If the assesse agree with the specified defective return info then you need to select “Yes” under the column name “Do you agree with defect”. In other case Assess can also select “No” if assesse does not agree with the defective return and mention remarks also to provide information.

-If Assesse is agree with defective return and selected “Yes” then Assesse need to upload the relevant XML Return.

-On successful completion of the response to the defective return assesse can view the success screen and click on “View” link under response column. Assesse can also note down the acknowledge number and date while filing the Return.

Click here to know about the Income Tax notice under Section 143: https://www.trutax.in/income-tax-notice

Online Income Tax Return: Income Tax Deductions for AY 2017-18

Online Income Tax Return: Income Tax Deductions for AY 2017-18: Important Income Tax Deductions for AY 2017-18: 80C Deductions,80D Deductions. Income Tax Deductions under Section 80C,80D are the...

Income Tax Deductions for AY 2017-18 | Upload form 16 on TruTax

Income Tax Deductions for AY 2017-18 | Upload form 16 on TruTax

Income Tax Deductions for AY 2017-18

Important Income Tax Deductions for AY 2017-18: 80C Deductions,80D Deductions.

Income Tax Deductions under Section 80C,80D are the most common options for the taxpayers to reduce the tax burden. There are many income tax deduction rules as per income tax act which taxpayers should know to increase their tax savings while filing income tax return.

Income Tax Deduction under Section 80C:

What is Section 80C Deduction?

Section 80C is the most common income tax deduction section or tax saving section that allows the deductions of Rs.1,50,000.

Section 80C Deduction includes various income tax saving options/instruments which taxpayer can choose to increase their investment plans.

These are the best tax saving schemes available under Section 80C:

Investment in ELSS: ELSS (Equity Linked Savings Scheme) are the tax savings scheme that invest primarily in equities. The lock-in-period of ELSS is 3 years. You can invest through a SIP (Systematic Investment Plan).

Investment in PPF (Public Provident Fund) under Section 80C Deductions: The lock-in-period of PPF is 15 years.

Investment in EPF (Employee Provident Fund) under Section 80C Deductions.

Investment in NPS (National Pension System) under Section 80C Deductions.

Investment in NSC (National Savings Certificates) under Section 80C Deductions: The lock-in-period of NSC is 6 years.

Investment in ULIP (Unity Linked Insurance Plans).

Investment in Sukanya Samriddhi Yojana.

Investment in Life Insurance.

Investment in Senior Citizen Saving Scheme.

Section 80C Deduction is applicable to Individual and HUF and allows deduction up to Rs.1.50 lakh.

Income Tax Deduction under Section 80D:

What is Section 80D Deduction?

Section 80D Deduction is applicable only for individuals and HUF. Section 80D Deduction provide deduction for medical insurance premium and health check-up.

The deduction amount is different for senior citizens and non-senior citizens under section 80D.

These are the types of deductions that you can claim under section 80D:

Section 80D Deduction on Health Insurance premium paid for your parents: You can get a tax deduction of a maximum of INR 25,000 under Section 80D.

Section 80D Deduction on Health Insurance premium paid for you and your family: You can get a tax deduction of a maximum of INR 25,000 under Section 80D.

Section 80D Deduction on health check-up: You can get a tax deduction of a maximum of INR 5,000 under Section 80D.

Section 80D Deduction on medical expenses of senior citizens: You can get a tax deduction of a maximum of INR 30,000 under Section 80D.

For our Tax Experts assistance related to income tax, you can register on Trutax and we will contact you to resolve your query: https://www.trutax.in/sign-in