Important Announcements: Upcoming changes for Goods and Service Tax in India
You must be aware that a comprehensive indirect tax reform by the name of GST (Goods & Services Tax) is proposed to be introduced in India w.e.f. 01-July-2017. The said reform is a fundamental change in the framework of indirect taxes and impacts not only the rates of tax but also various business processes and associated documentation.
We have started examining the impact of the GST law based on the information available till date. Keeping that in mind we’ve listed down a few questions points that could help you understand GST and it’s impact on your business.
What is Goods and Service Tax (GST)?
The GST is a destination based tax on consumption of goods and services. It’s a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India to replace taxes levied by the central and state governments.
|When is it coming into effect?
The GST is likely to come into effect from 1 July 2017 as per the latest announcements from the government of India. Please stay tuned to updates from the government to be aware of any changes in schedule that may occur.
|How does GST work?|
What impact does GST have on your business?
The GST rates for Domain, Hosting, Web Designing, Web Development, Application Development, Mobile Apps and IT Consultancy services have not been announced yet. However we are expecting the GST rates announcement from Government in a week's time. There will be a sea of changes in the manner in which invoicing will be raised on the customers. Since GST is a consumption based tax, GST will be charged based on the location of recipient state.
What needs to be done?
For obtaining Provisional GST ID you can get in touch with your Chartered Accountants or Tax Consultant. You can go to the link mentioned below to find out the process for obtaining provisional GST ID.
We request you to initiate the process for obtaining GST ID as early as possible.
If your annual turnover is above 20 lakh rupees, it is compulsory for you to register and submit you GST ID. If your annual turnover is less than 20 lakh rupees, you may or may not register for GST ID.
Team Crux Softwares
Friday, May 19, 2017