GST Course

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Introduction

In the wide spread economy, professionals are growing day by day. Presently, Service Tax (ST) is charged by the service providers on their services or is paid under Reverse Charge. In GST regime, there will not be any concept of service. There will be only one concept i.e. 'Supply'. All professional activities will be treated as 'Supply'.

Under GST Regime, no service tax would be there and the same shall be replaced by four taxes:-

  1. Central GST
  2. State GST
  3. Integrated GST
  4. Union Territory GST

The taxes mentioned in (1) & (2) above shall be levied on all intra state transactions and rate shall be shared equally by both (1) & (2).

Tax mentioned in (3) above shall be levied on all interstate transactions and will be levied on all intra state transactions done in Union Territory's except Delhi & Pondicherry , who shall levy tax mentioned in (4) above.

Rate of Tax

Reverse Charge of Services under GST


Name of Service

Provider of service (%)

Recipient of Service (%)

Services provided or agreed to be provided by an individual advocate or firm of advocates by way of legal services, directly or indirectly

0

100

Taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory other than non-assessee online recipient (OIDAR)

0

100

Sponsorship services

0

100

Services provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate

0

100

Services provided or agreed to be provided by an insurance agent to any person carrying on insurance business

0

100

Services provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non-banking financial company

   

Other Services

All other Services shall be Taxable at the Rate of 18% with Input Tax Credit.

Transition Provision about Input Credit

The amount of Input Tax Credit relating to the period ending with the day immediately proceeding the appointed day shall be available to the registered tax payer under the GST. However, in the following cases the registered person shall not be allowed to take credit:-

  • Where the said amount of credit is not admissible as input tax credit under this Act; or
  • Where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date.

Period of retention of Books of Accounts

Every registered person required to keep and maintain books of account or other records in accordance shall retain them until the expiry of seventy-two months from the due date of furnishing of annual return for the year pertaining to such accounts and records.

Audit of Books of Accounts

Every registered person whose turnover during a financial year exceeds rupees two crore shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement and such other documents in such form and manner as may be prescribed.

Special Audit by Chartered Accountants/Cost Accountants

If at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner.


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Category GST, Other Articles by - CA Vivek Kumar 



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