Gst Launched: 8 Myths Busted — Here Are The Facts

By Author: Mohit Yadev
Total Articles: 74
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Revenue Secretary Hasmukh Adhia 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. Asserting that people should not fall for any rumor, Adhia in a series of tweets cleared the myth about GST and said that the process around the implementation and execution will be transparent.
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.
The government does not intend to use the “hammer” immediately to pull down prices, leaving it to market forces to guide companies to pass on the benefits of goods and services tax+ (GST) to consumers.
“Competition will force them to fall in line. You don’t have to use the hammer immediately,” a high-ranking officer told TOI, adding that companies and small businesses were themselves passing on the gains to the consumers. Several car companies, consumer goods manufacturers+ and white goods and mobile players have announced price changes with many more expected to follow once they resume business and invoicing after updating their software.
Know Much More About GST Filing Utility.