What is Input Tax Credit? Input Tax Credit, or ITC, is the tax a registered GST taxpayer pays on purchases that is refunded to them. He should get this tax back from the government. For Example, A registered taxpayer made a sales invoice with Rs. 500 in tax for the final product and got that amount from the final customer. Let’s say he already paid a Rs. 200 tax when he bought the raw materials. Now, Rs 200 will be sent to
The main goal of every taxpayer is to get the most ITC while following all of the rules and conditions of GST law. The success of this goal depends on the internal processes and tools used, as well as some external factors like vendor compliance. In this article, we’ll talk about four important ways to get the most out of your ITC claim. Note: According to GST Notification 18/2022, you have until November 30, 2022 to claim ITC,
The removal of the exemption on export freight has had a big impact on both exporters and transporters. In this article, we’ll talk about the new change that has been made, how much air and ocean freight is now affected, the problems with the ITC, and the history of this exemption. Exemption on Export Freight Update The CBIC had already agreed that air and ocean export freight would not have to pay GST until September 30, 2022. But the exemption is
Table 6 of GSTR 9 pertains to reporting of Inward Supplies and ITC. We all know that in the Annual Return GSTR 9, details of outgoing and incoming supplies, as well as ITC claimed, reversed, tax liability, tax payment, and adjustments, must be reported. Tables 1, 2, and 3 of Part I of the GSTR 9 Form cover basic information about the taxpayer. Tables 4 and 5 of Part II of the GSTR 9 Form cover information about Outward Supplies. Most of
ITC Computation is important for businesses to make sure they get the most ITC claim possible, which can help them have more cash on hand. In this article, we’ll talk about four important parts of figuring out ITC. But first, let’s start with what you need to know about ITC… ITC stands for “Input Tax Credit,” which is when taxes paid on inputs are subtracted from taxes that need to be paid on output. Input Tax is the GST that
As you may know, GSTR 9 is a form that regular taxpayers have to fill out every year to report their annual turnover under GST. The form asks for invoice information for both supplies that come into and go out of the business. But what if a business didn’t send any invoices for any incoming or outgoing transactions during the year? Would it still have to file GSTR 9? It looks like YES, a person who is registered under GST
E-invoicing was generally easy to set up in India. But some things about E-invoicing, like how to handle Freight, TCS, and Discounts, can still be a worry for many. Even more so now that the business size limit for e-invoicing has been lowered to small businesses. According to the GST Notification 17/2022, companies with an AATO of more than Rs. 10 Cr. are required to create an IRN for e-invoicing. It is said that this threshold will go down
Issues Faced while Filing GSTR 9 and GSTR 9C Taxpayers have been having trouble filling out forms GSTR 9 and GSTR 9C as they try to file their GST annual returns in the middle of all the chaos and rush. The CBIC has put out a note to help taxpayers deal with these problems. So, if you find yourself in any of these situations, please see what you need to check, edit, or change to get a correct GST reconciliation. Issues
Since the goods and services tax came into effect, a lot has changed. All businesses have to register for GST. Getting registered for GST has many benefits, one of which is that it makes doing business a lot easier. Still, the businessmen want to know a few things. One of these important parts is TCS under GST. Here are some of the most common questions about how TCS works under GST. What is TCS? TCS stands for the tax taken out at
Now that the government has made an important change, the question is how GST affects people who own flats. So, in this article, we’ll talk about the important question of how GST affects flat owners and RWAs, as well as what GST is. What is GST? The Goods and Services Tax (GST), as its name suggests, is a tax on the sale of goods and services. The main goal of this tax structure is to control the way other indirect taxes affect
