Introduction
Goods and Services Tax (GST) is an indirect tax system that has been implemented in India since 1st July 2017. GST subsumes all the previous indirect taxes like VAT, Service tax, Excise Duty, etc. into a single tax regime. It is a destination-based tax system where the tax is levied at the place of consumption. In this blog, we will discuss GST accounting in Assam.
GST in Assam
Assam is one of the seven sister states in the northeastern part of India. Assam is known for its tea, oil, and silk industries. The implementation of GST has had a significant impact on the businesses in Assam. The GST Council has categorized goods and services under various tax slabs – 0%, 5%, 12%, 18%, and 28%. The tax rates applicable in Assam are the same as that of other states in India.
GST Accounting in Assam
GST accounting involves maintaining records of all the transactions related to the supply of goods or services. All the registered taxpayers in Assam are required to maintain proper records of their purchases, sales, and inventory. The GST returns must be filed on a monthly, quarterly, or annual basis, depending on the turnover of the business.
The following are the GST returns that need to be filed in Assam:
- GSTR-1: GSTR-1 is a monthly or quarterly return that contains details of all the outward supplies made by the taxpayer. It includes details such as the invoice number, date, and value of the supplies made.
- GSTR-2A: GSTR-2A is an auto-populated return that contains the details of all the inward supplies made by the supplier.
- GSTR-3B: GSTR-3B is a monthly return that contains the summary of all the outward and inward supplies made by the taxpayer.
- Annual Return: Every registered taxpayer is required to file an annual return in GSTR-9. It contains the details of all the supplies made during the financial year.
Penalties for non-compliance
Non-compliance with GST regulations can lead to penalties and fines. The following are the penalties that can be levied for non-compliance:
- Late Filing: A penalty of Rs. 100 per day will be levied if the returns are not filed within the due date.
- Incorrect Filing: A penalty of 10% of the tax amount will be levied if the returns are filed with incorrect details.
- Non-Filing: A penalty of 10% of the tax amount or Rs. 10,000 (whichever is higher) will be levied if the returns are not filed.
In Assam, GST has had a positive impact on the economy. The state has a significant agricultural sector, and GST has helped to reduce the tax burden on agricultural produce. The implementation of GST has also led to the growth of the manufacturing and service sectors in the state.
One of the significant advantages of GST is the input tax credit. Under GST, businesses can claim input tax credit for the taxes paid on the purchases made for business purposes. This has helped to reduce the cost of production for businesses. However, to claim input tax credit, businesses must maintain proper records of their purchases and sales.
To help businesses comply with GST regulations, the government of Assam has set up GST facilitation centers. These centers provide assistance to businesses in registering for GST, filing returns, and complying with other GST regulations. The government has also organized training programs and workshops to educate businesses on GST.
Apart from the GST facilitation centers, the government of Assam has also launched several online platforms to help businesses comply with GST regulations. The Assam Commercial Taxes Department has developed an online portal for businesses to register for GST and file returns. The portal also provides businesses with access to their tax liabilities and payments.
To ensure compliance with GST regulations, the government of Assam has also introduced the E-way bill system. The E-way bill is a document required for the movement of goods worth more than Rs. 50,000. The E-way bill contains details such as the supplier, the recipient, the goods being transported, and the mode of transportation. The E-way bill is generated electronically, and it helps to ensure the proper documentation of the movement of goods.
The implementation of GST has also led to the simplification of the tax system for small businesses. The government has introduced the Composition Scheme for small businesses with a turnover of up to Rs. 1.5 crores. Under the Composition Scheme, businesses are required to pay a fixed percentage of their turnover as tax, instead of the regular GST rates. This has helped to reduce the compliance burden on small businesses.
To encourage businesses to comply with GST regulations, the government of Assam has also introduced several incentives. The government has announced a cash incentive of 5% of the tax paid for businesses that file their returns on time. The government has also waived off the late fee for businesses with a turnover of up to Rs. 1.5 crores who file their returns late.
Conclusion
GST accounting is an important aspect of running a business in Assam. The government of Assam has taken several initiatives to help businesses comply with GST regulations, including the introduction of online platforms, the E-way bill system, and the Composition Scheme. The government has also introduced incentives to encourage businesses to comply with GST regulations. The implementation of GST has had a positive impact on the economy of Assam, and it has helped to simplify the tax system for businesses.
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