Revenue Secretary HasmukhAdhia on Sunday took to Twitter to clear 7 misconceptions about the Good and Services Tax (GST)
Compiled Text: Rochelle D’Souza Photos: Various sources
Revenue Secretary HasmukhAdhia on Sunday cleared apprehensions of the consumers over the complexities of the Goods and Services Tax (GST) reform, which is likely to benefit the honest taxpayers.
Adhia on Sunday took to Twitter to clear 7 misconceptions about the Good and Services Tax (GST). “There are seven myths going around about GST which are not true. I want to dispel them one by one in form of myth and reality. Please see these,” Adhia tweeted.
The Revenue Secretary then issued a list of myths and misconceptions, followed by reality. These included confusions relating to invoices, Internet, provisional ID, exempted trade items, returns per month, New GST rates and more. The clarification comes a day after the historic goods and services tax came into play across the country. A number of shops in major markets reportedly remained shut, or didn’t carry on any business on the first day due to confusion about taxes.
Here’s the list issued by the revenue secretary on Twitter.
Higher tax rate
Myth: The new GST rate is higher compared to earlier VAT.
Reality: It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now.
Paying utility bills by card
Myth: If a person makes payment of utility bills by credit cards, they will be paying GST twice.
Reality: Inaccurate. GST is only levied once, irrespective of the payment being made by cash or cards.
Electronic transactions
Myth: All invoices must be generated on computer/internet only.
Reality: Invoices can be generated manually also.
Internet connectivity
Myth: A retailer needs internet all the time to do business under GST.
Reality: Internet would be needed only while filing the monthly return of GST.
Business permits
Myth: A retail business I have provisional ID but waiting for final ID to do business.
Reality: Provisional ID will be your final GSTIN number.
Ease of doing business
Myth: An item of trade was earlier exempt so the retailer will need new registration before starting a business now.
Reality: You can continue doing business and get registered within 30 days.
Filing returns (businesses)
Myth: There are three return per month to be filed.
Reality: There is only one return with three parts, out of which first part filed by the dealer and two other parts auto-populated by computer.
Small-scale businesses
Myth: Even small dealers will have to file invoice wise details in the return.
Reality: Those in retail business (B2C) need to file only summary of total sales.