Goods and Services Tax (GST) is a comprehensive indirect tax that has been implemented in India since July 2017. GST is a destination-based tax that has replaced various indirect taxes such as service tax, VAT, excise duty, and others. The implementation of GST has had a significant impact on businesses across India, including Arunachal Pradesh.
In this blog, we will discuss GST accounting in Arunachal Pradesh, including the registration process, filing of GST returns, and compliance requirements.
GST Registration in Arunachal Pradesh
Any person or entity involved in the supply of goods or services in Arunachal Pradesh with a turnover exceeding Rs. 20 lakhs per annum must register for GST. In the case of businesses located in the North-Eastern states, including Arunachal Pradesh, the turnover limit for GST registration is Rs. 10 lakhs.
The GST registration process in Arunachal Pradesh is similar to that in other states. The applicant must provide their PAN card, Aadhaar card, bank details, and other business-related documents, such as registration certificates, licenses, and authorizations. The registration process is online, and the applicant must fill in the required details on the GST portal.
GST Returns Filing in Arunachal Pradesh
GST returns are filed on a monthly, quarterly, or annual basis, depending on the turnover of the business. The GST return must be filed by the 20th of each month for monthly filers and by the end of the next month for quarterly and annual filers.
The GST return must be filed on the GST portal, and the process is entirely online. The taxpayer must provide details of their inward and outward supplies, along with the tax paid and collected. GST returns must be filed even if there is no business activity during the period.
Compliance Requirements
Under GST, businesses are required to maintain various records and comply with specific requirements. These include:
- Maintaining records of all purchases and sales, along with invoices, receipts, and vouchers.
- Issuing invoices with specific details, such as GSTIN, HSN code, and the amount of tax collected.
- Reversing input tax credit in case of non-payment of supplier invoices within 180 days.
- Displaying the GST registration certificate at the place of business.
- Conducting regular audits and filing of GST annual returns.
In addition to the compliance requirements mentioned above, businesses in Arunachal Pradesh must also adhere to specific GST regulations related to inter-state and intra-state supply of goods and services.
Inter-state supply of goods or services occurs when the supplier and the recipient are located in different states. In such cases, Integrated GST (IGST) is applicable, which is a combination of Central GST (CGST) and State GST (SGST). The IGST is collected by the Central Government and then apportioned to the respective states.
On the other hand, intra-state supply of goods or services occurs when the supplier and the recipient are located in the same state. In such cases, CGST and SGST are applicable, and the tax is collected by the respective state governments.
It is also important to note that businesses in Arunachal Pradesh can claim input tax credit (ITC) on the tax paid on inputs used for the supply of goods or services. However, certain conditions must be met, such as possession of a valid tax invoice, payment of tax by the supplier, and the use of inputs for business purposes.
Moreover, businesses must also comply with the e-way bill system, which is a document required for the movement of goods worth more than Rs. 50,000. The e-way bill must be generated electronically on the GST portal, and it contains details of the consignment, such as the supplier and recipient’s names, the goods’ value, and the transportation details.
One of the significant advantages of GST for businesses in Arunachal Pradesh is the simplified tax system. GST has replaced the complex and cascading tax structure of the pre-GST era, which led to a significant tax burden on businesses. With GST, businesses only need to deal with one tax, which has reduced the compliance costs and the overall tax burden.
Another benefit of GST is the increased competitiveness of businesses. Previously, businesses had to pay taxes at multiple levels, which added to the final cost of the product or service. However, with the implementation of GST, the tax burden has been significantly reduced, and businesses can pass on the cost benefits to the customers, making their products or services more competitive.
Furthermore, GST has enabled seamless flow of goods and services across the country, which has boosted inter-state and intra-state trade. The introduction of IGST has eliminated the need for multiple state taxes and has made the process of moving goods from one state to another more streamlined.
Additionally, the GST system has enabled increased transparency and accountability in tax administration. The GST portal provides a platform for businesses to file their returns and make payments online, reducing the possibility of tax evasion and fraud.
Another important aspect of GST accounting in Arunachal Pradesh is the classification of goods and services. Under GST, goods and services are classified into different tax slabs based on their nature and value. The current GST tax slabs are 0%, 5%, 12%, 18%, and 28%.
It is essential for businesses to correctly classify their goods and services to determine the applicable tax rate. Incorrect classification can lead to penalties and legal issues, as well as loss of input tax credit.
Moreover, businesses must also maintain proper records and invoices to claim input tax credit. The ITC can be claimed on taxes paid on inputs used in the supply of goods or services. However, ITC can only be claimed if the inputs are used for business purposes, and the supplier has paid the tax.
Another crucial aspect of GST accounting in Arunachal Pradesh is the filing of returns. Businesses must file monthly, quarterly, or annual GST returns, depending on their turnover and registration type. The GST returns include details of the business’s transactions, such as sales, purchases, and tax paid or collected. Failure to file returns or delay in filing can result in penalties and interest charges.
Furthermore, businesses must also comply with the anti-profiteering provisions under GST. Anti-profiteering provisions ensure that businesses pass on the benefit of reduced tax rates to the customers by reducing the prices of goods or services. If a business is found to be profiteering, it can be penalized under the provisions of GST.
Conclusion
businesses operating in Arunachal Pradesh must ensure timely compliance with GST regulations, including classification of goods and services, maintenance of proper records, filing of returns, and compliance with anti-profiteering provisions. By complying with the GST regulations, businesses can take advantage of the benefits of GST and contribute to the growth of the state’s economy.
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