What is GSTR 1? How to file it? Aster billing

What is GSTR 1? How to file it? Aster billing

GSTR-1

GSTR-1 is a monthly or quarterly return to be filed by regular dealers, the return of which is divided into 13 sections. It is the base document upon which the entire compliance structure of GST is based.

For traders with turnover upto Rs 1.5 crore annually, GSTR-1 needs to be filed on quarterly basis while that for traders having turnover above that needs to be filed every month. The late fee for filing GSTR-1 is Rs 50 per day after the due date, and Rs 20, in case of nil returns.

Once GSTR-1 return is filed, a trader does not need to pay any tax immediately. The tax has to be paid at the time of filing GSTR-3B (until March 2018).

Composition dealers need not file GSTR-1. Such traders need to file GSTR-4 every quarter.

GSTR-1 is filed in FORM GSTR-1. The various details included in GSTR-1 are:

(i) Invoice wise details of Inter-State and Intra-State supplies made to registered persons and Inter-State supplies with invoice value more than two and a half lakh rupees made to unregistered persons.

(ii) Consolidated details of Intra-State supplies made to unregistered persons for each rate of tax and State wise Inter-State supplies with invoice value upto two and a half lakh rupees made to unregistered persons for each rate of tax.

(iii) Debit and Credit notes, if any, issued during the month for invoices issued previously.

How to Prepare For an Internal Audit - Aster Billing

How to Prepare For an Internal Audit 

 Aster Billing

In much the same way that individuals are encouraged to get yearly medical check-ups, companies too are subjected to regular ‘health’ assessments. Internal audits, as they are known, are systematic reviews of a company’s vulnerability to risk, and an assessment of its risk-management mechanisms. In contrast to external audits, internal audits are conducted by a company’s own internal audit team (or outsourced to an external organisation), which answers to the audit head or the company’s Board of Directors. Internal audits ensure that a company’s every unit adheres to organisationalpolicies, and is compliant with applicable legal frameworks.They pre-empt any sudden surprises that an external audit might uncover, strengthen internal control, and keep the company in a state of preparedness. While the word ‘audit’ sounds forbidding, complicated, and highly technical it is really just a ‘systems check’. The goal is to ascertain if there are any existing or potentialirregularities, oversights, or gaps in an organisation’s internal processes, to report them should they be present, and to recommend ways to address or prevent such problems.

Getting ready for an internal audit

1. Part of gearing up for an internal audit is determining whichfunctions tofocus on. There are three key organisational categories that are subject to audits: management, operations, and finances.

• Management audits compare and contrast companies’ organisational objectives with its structure to see if the latter is conducive to the former

• Operations audits examine employees on the job to see if their activities are consistent with local and organisational goals and expectations, and that accountability is established

• Finally, financial audits ensure that financial records and business licenses and permits are well organised and maintained, and that employee wages and benefits are being properly calculated and disbursed

2. Establish frequency and timeline: Once you’ve determined how often to conduct your audits—some processes require reviews on a daily basis, others annually—create a schedule. This should help streamline the entire process and avoid any confusion.

3. Give departments a heads up, and avoid springing any surprises on them. Unless you suspect something illicit or underhanded, treat this as you would any routine process. Inform departments in advance so that they can participate to the best of their abilities.

4. Come prepared. Both parties should do their homework before hand. Auditors too should study the policies and procedures pertaining to the department or function that they will be auditing. The better they understand the material, the more thorough they can be in their evaluation of compliance/divergence etc.

5. Interview employees to suss out gaps. An employee’s understanding of their job, and their description of the department’s workflow may be at odds with company policy. This discrepancy is something that only an audit can uncover, and once uncovered, must be reconciled.

6. Write up and report findings. Once the data has been collected and cleaned, the auditor writes up the final report. This report should shed light on risk-prone areas and gaps that were encountered in the course of the audit. Once completed it should be shared with senior staff or board members.

Filing GST Returns for Your Business-ASTER BILLING

Filing GST Returns for Your Business-

ASTER BILLING

As GST will roll out on July 1, 2017, every business will have to file monthly GST returns as part of its GST compliance. Even if there is no activity carried out in business, the business has to still file the returns. Let us check out the various returns to be filed by businesses and their respective due dates. The return has to be e-filed and no paper returns will be acceptable in the GST regime. The table below explains various returns and their due dates which must be filed by businesses under the GST regime.

Return	For	To be filed by
GSTR 1	Outward supplies made by taxpayer (Sales)	10th of the next month
GSTR 2	Inward supplies received by a taxpayer (Purchases)	15th of the next month
GSTR 3	Monthly return	20th of the next month
GSTR 4	Quarterly return for Composite Taxpayer	18th of the month next to quarter
GSTR 5	Return for Non-Resident Foreign Taxpayer	Last day of registration
GSTR 6	Return for Input Service Distributor (ISD)	15th of the next month
GSTR 7	Return for Tax Deducted at Source	10th of the next month
GSTR 8	Return for e-commerce operator	10th of the next month
GSTR 9	Annual Return	By 31st December of next financial year

Monthly GST Returns Filing

Regular taxpayers would have to file GSTR-1, GSTR-2 and GSTR-3 (monthly returns). Taxpayers with multiple registrations within a state would have to file GSTR-1, GSTR-2 and GSTR-3 for each of the GST registrations obtained separately. All the monthly returns have to be filed online through a common portal managed by the Goods and Service Tax Network (GSTN).

Annual GST Return Filing

Each business will have to file an annual return, known as GSTR 9. This will be on top of the monthly returns and is to be filed by 31st December of the next financial year.

Composite Taxpayer and GST Filing

Composite taxpayers will have to file GSTR 4, which will be filed quarterly. The composite tax will be a flat rate of tax, which a business pays based on their turnover in a specific period. They will not be able to take input credits for their purchases. Taxpayers eligible for the composite scheme can opt against the composite scheme and file monthly returns and thereby claim input tax credits on their purchases/supplies as well. Annual return (GSTR-8) will be filed by all normal / regular taxpayers. It will be based on financial records. A compounding taxpayer will also need to file a simple annual return. With GST, though the taxes are getting simplified which is a good for all businesses, there may be an increased burden of compliances on businesses as they have to file a total of 37 returns in year (3 x monthly returns for 12 months; and one return annually) Related Articles: GST Compliance Rating and Why It is Important for You, Composition of Tax Levy Scheme for Small Business in GST, GST Impact on IT and Consultancy Services

How to deal with GST _ Aster Billing

Aster Billing

How to deal with GST

Now it is just a matter of time before the Goods and Services Tax (GST) bill is passed by both the houses of the Parliament. The positive impact of the GST at an overall level is indisputable as the reform in indirect tax regime in India has been long due. The GST regime intends to achieve efficacy and efficiencies in tax administration and collection. One of the major benefits of the GST is the removal of cascading taxes (tax on tax) at each stage of value chain. Another principal benefit will arise from integration of taxes on goods and services. The new regime will also make tax evasion difficult thereby likely to broaden the tax base which is woefully low in India.

However, behind the larger effect there is likely to be variability in the impact on different constituents of the economy. The time for rolling out of the GST is an important window for businesses, the most important constituents, to critically review the ramifications for individual businesses. The effect will not be unalloyed at least in short to medium term. Also, this could have profound and lasting effect over the long term on the individual businesses.

This article attempts to catalyse discussions in this direction. At present, most of the discussions involve the impact of the GST on logistics cost or supply chain at best. However, the impact is likely to be much deeper and may pose challenge to competitive positions of the companies.

In order to understand the impact, one must throw linear thinking out of the window and take a holistic view with the eyes on inter-relationship between the elements of the system. The system thinking will help in assessing the transmission of the effects of the GST on the entire system. Since these elements through feedback loops can change the overall system behavior in a major way, it merits a serious look.

Let us see how few important strategic levers could be impacted. Before discussing the levers it is important to understand the broad structure of the proposed GST in India. The structure of GST in India is customised in order to allay the fears of States and balancing various competing requirements. The GST bill has proposed dual GST structure viz. Central GST (CGST) and State GST (SGST). The CGST and SGST are to be levied and administered by the Central Government and state governments respectively. Both CGST and SGST are proposed to be applied simultaneously and on the same base. The only exceptions where the bases may differ are in situations where different thresholds are applied by the Centre and the states.


It may be noted that input credit for CGST may only be utilised against the payment of CGST. Similarly, input credit for SGST may only be offset against the payment of SGST.


For interstate movement of goods, an Integrated GST or IGST will apply. The exclusions from the GST regime inter alia include taxes collected by local bodies, taxes on petroleum product etc.


Any shortfall in revenues for the states on account of change in indirect tax regime shall be made good by the Centre for the stipulated number of years.


Due to complicated structure of GST in India and provision for myriad exclusions, companies may find compliance a difficult ask, at least initially.


However, GST will not only have operational implications but also far reaching strategic impact on businesses. The repercussions need greater scrutiny and debate within the companies.


First, the pricing strategies for companies may need rethink. Since there will be taxes on both services and goods along the value chain, it may have effect on the overall costs and thus pricing. Though the impact will be different for different companies and different sectors, GST will likely affect the demand for price sensitive products. The change in demand may in turn change the whole economics. For example, the fixed investment is made with certain volume projections. Price changes with GST may lower the demand of a business which may render the business in a weaker position.


Second, procurement and sourcing by companies may undergo a fundamental shift. Different companies have different procurement strategies depending on the market they serve and their core areas of operations. GST may change their models by changing the economics for procurement and sourcing. For example, imported goods will also attract GST over and above custom duties (though slew of other taxes will be subsumed such as Countervailing Duties [CVD]). This may have change in economics of imports vs domestic sourcing of goods and services.


Third, the working capital requirement may also change in a significant way. It is advisable that the companies in need of more working capital secure the same well in advance. Though the overall effect is a subject of much detailed study, the increase in working capital needs may put further strains on the banking system in India and in turn further affect the businesses.


In summary, the above mentioned examples show that the feedback loops in companies may disrupt the old ways of running businesses.


The impact may require changes in strategy and business processes hitherto proven effective. The transition may provide both the challenges and opportunities. It can give rise to competitive edge to the companies if they take an educated call.


In this backdrop, companies should dedicate a task force comprising senior people in the company and experts with strategic insights. The task force should analyse the overall impact and suggest changes in strategic direction and realignment of business processes in line with the strategic shifts.

GST Slab Rate – 4 Slabs from 5% to 28% Aster bIlling

Aster bIlling

GST Slab Rate – 4 Slabs from 5% to 28%

GST slab rate is recently finalized by GST Council. It seems the India is moving one step ahead towards implementation of GST a common tax for goods and services. The GST will be a game changer for the Indian economy as it will abolish many indirect taxes and bring all of them in the single window. GST will also remove the interstate barrier for trading in goods and services. However, looking at GST slab rate it will bring inflation for the common man. It is anticipated that GST will be implemented from 1st April, 2017. Let’s take a look at GST Slab rate and its impact on common man like you and me.

GST Slab Rate – 4 Slabs from 5% to 28%

As per present agreement GST will be implemented in 4 slabs from 5% to 28%. GST shall cover each and every product and services sold and offered in India.

Under 0% Tax Rate – All commodity items such as food grains, rice, wheat and item comprising of 50% consumer price index will fall under this slab.

GST 1^st Slab 5% Tax – All mass consumption items such as spices, tea, mustard oil will fall under this tax slab.

GST 2^nd Slab 12% Tax – Process food items such as bread, cheese, readymade meals, milk will fall under this tax slab.

GST 3^rd Slab 18% Tax – Under this tax slab item such as soaps, oil, toothpaste, refrigerator and smartphone is included.

GST 4^th Slab 28% Tax – This tax slab will include luxury goods, luxury cars, tobacco products, pan masala and aerated drinks etc. There will be additional cess and clean energy cess on the top of the highest tax rate.

Goods and Service Tax (GST) – Beneficial to the Common Man?-Aster billing

Goods and Service Tax (GST) – Beneficial to the Common Man?

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Indirect taxes from central government are excise duty, customs, services tax etc. State government taxes are VAT, Entertainment Tax etc. Even municipality also imposes taxes like water tax, property tax etc. Tax rates also differ from state to state. To overcome all this complication & to reduce tax burden one common tax Goods and Service Tax (GST) is proposed.

What is GST?

GST or Goods and Service Tax is common tax system proposed by government. As the name suggest it is common tax in economy for Goods and Services. Majority of taxes mentioned above will be replaced by GST. GST will be applicable across country with same rate. This will give benefit to common man in terms of reduction in tax. Even this will be beneficial to businessman. GST is one of the most important tax reform for the country.

GST will cover all stages like manufacturing, consumption, sales of goods and services. This tax will be applicable at national level on all goods and services.

What are the benefits of GST?

Elimination of Multiple Taxes
Biggest benefit of GST is elimination of multiple taxes. All taxes that currently exist will not be in picture. This means current taxes like excise, octroi, sales tax, CENVAT, Service tax, turnover tax etc will not be applicable and all that will fall under common tax called as GST.

What is GST in India? Goods & Services Tax Law Explained by Aster Billing

Aster Billing

What is GST in India? Goods & Services Tax Law Explained

1. What is GST?

GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.

In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India.

GST is one indirect tax for the entire country.

Under the GST regime, the tax will be levied at every point of sale. In case of intra-state sales, Central GST and State GST will be charged. Inter-state sales will be chargeable to Integrated GST.

Now let us try to understand the definition of Goods and Service Tax – “GST is a comprehensive, multi-stage, destination-based tax that will be levied on every value addition.”

Multi-stage

There are multiple change-of-hands an item goes through along its supply chain: from manufacture to final sale to the consumer.

Let us consider the following case:

• Purchase of raw materials
• Production or manufacture
• Warehousing of finished goods
• Sale to wholesaler
• Sale of the product to the retailer
• Sale to the end consumer

The manufacturer who makes biscuits buys flour, sugar and other material. The value of the inputs increases when the sugar and flour are mixed and baked into biscuits.

The manufacturer then sells the biscuits to the warehousing agent who packs large quantities of biscuits and labels it. That is another addition of value after which the warehouse sells it to the retailer.

The retailer packages the biscuits in smaller quantities and invests in the marketing of the biscuits thus increasing its value.

GST will be levied on these value additions i.e. the monetary worth added at each stage to achieve the final sale to the end customer.

Destination-Based

Consider goods manufactured in Maharashtra and are sold to the final consumer in Karnataka. Since Goods & Service Tax is levied at the point of consumption, in this case, Karnataka, the entire tax revenue will go to Karnataka and not Maharashtra.

2. Journey of GST in India

The GST journey began in the year 2000 when a committee was set up to draft law. It took 17 years from then for the Law to evolve. In 2017 the GST Bill was passed in the Lok Sabha and Rajya Sabha. On 1st July 2017 the GST Law came into force.

All You Need To Know About E-Way Bills-Aster bIlling

ASTER BILLING

All You Need To Know About E-Way Bills

What is an E-Way Bill

E-Way Bill is the short form of Electronic Way Bill. It is a unique document/bill, which is electronically generated for the specific consignment/movement of goods from one place to another, either inter-state or intra-state and of value more than INR 50,000, required under the current GST regime.

As per the update on 23rd Mar 2018, Generation of the e-Way Bill has been made compulsory from 1st April 2018. Inter-state implementation of e-way bill is notified to be implemented from 1st April 2018.

The implementation of Eway Bill to kick-off from 15th April 2018 in a phased manner. States to be divided into 4 lots to execute this phased rollout.

When e-Way Bill is generated, a unique e-Way Bill Number (EBN) is made available to the supplier, recipient and the transporter.

The e-Way Bill replaces the Way Bill, which was a physical document and existed during the VAT regime for the movement of goods.

Who should generate an e-Way Bill

Let’s try to understand who needs to generate an eway bill during transportation.

GST Registered Person:

(a) When a registered person causes the movement of goods/ consignment, either in the capacity of a consignee (i.e., buyer) or consignor (i.e., seller) in his/her vehicle or hired vehicle or railways or by air or by ship, then either the registered person or the recipient should generate the e-Way Bill in Form GST EWB 01 electronically on the common portal by furnishing information in Part B.

(b) When a registered person causes the movement of goods and hands these over to the transporter for transportation by road, but the e-Way Bill has not been generated, then it is the transporter who needs to generate the bill. The registered person will first furnish the information relating to the transporter in Part B of Form GST EWB. After which, the transporter will generate the e-Way Bill by the information furnished by the registered person through Part A of Form GST EQB 01.

Unregistered Person:

(a) When an unregistered person causes the movement of goods, through his/her conveyance or hired conveyance or using the services of a transporter, then the e-Way Bill needs to be generated either by the unregistered person or by the transporter, by completing Form GST EWB-01.

(b) When an unregistered person supplies the goods to a registered person AND the registered person is known to the unregistered person at the time of the start of the movement of goods, then it will be considered that the registered person is moving the consignment. In this case, the registered person or transporter shall complete the formalities of the e-Way Bill.

List Of Documents Required For GST Registration- Aster billing

Aster Billing 

List Of Documents Required For GST Registration

By now you must have studied about Goods and Services Tax(GST) almost everywhere.

It is an indirect tax which has replaced multiple indirect taxes imposed by the Govt. Of India.

Several books are published on this tax because of its complexity and constant changes that occur to make it better.

The struggle between changes made and the curiosity of people to stay updated is real.

The registration process is a long one which involves business-related documents. For registration, you need to submit different types of documents according to the type of company registration.

Find out the list of documents required for Sole Proprietorship or Individual, Partnership or LLP, Private limited or Public limited or One person company, HUF and Society or Trust or Club.

Documents required for Sole Proprietorship / Individual

• PAN card, aadhaar card, and a photograph of the sole proprietor
• Bank account details- a copy of canceled cheque or bank statement
• Address proof of office:-
  –Own office – Copy of electricity bill/landline bill/water bill/municipal khata copy/ property tax receipt
  –Rented office – Rent agreement and No objection certificate (NOC) from the owner

Documents required for Partnership deed/LLP Agreement

• PAN card, Photograph and aadhar card of all partners
• Bank details- a copy of canceled cheque or bank statement
• Address proof of Principal place of business and additional place of business :
  –Own office – Copy of electricity bill/landline bill/ water bill/ municipal khata copy/ property tax receipt
  –Rented office – Rent agreement and No objection certificate (NOC) from the owner
• In case of LLP- Copy of board resolution, Registration Certificate of the LLP
  Proof of appointment of authorized signatory- letter of authorization

Documents required for Private limited / Public limited / One person company

• PAN card of the company
• Registration Certificate of the company
• Memorandum of Association (MOA) /Articles of Association (AOA)
• PAN card, photograph and aadhar card of all Directors
• Bank details- a copy of canceled cheque or bank statement
• Address proof of Principal place of business and additional place of business:-
  –Own office – Copy of electricity bill/landline bill/ water bill/ municipal khata copy/ property tax receipt
  –Rented office – Rent agreement and No objection certificate (NOC) from the owner
• Proof of appointment of authorized signatory- letter of authorization

Documents required for HUF

• PAN card of HUF
• Photograph, Pan Card and aadhar card of Karta
• Address proof of Principal place of business and additional place of business :
  –Own office – Copy of electricity bill/landline bill/ water bill/ municipal khata copy/ property tax receipt
  –Rented office – Rent agreement and No objection certificate (NOC) from the owner.
• Bank details- a copy of cancelled cheque or bank statement

Documents required for Society or Trust or Club

• Pan Card of society/Trust/Club
• Registration Certificated
• Photo and PAN Card of Promotor/ Partners
• Bank details- a copy of cancelled cheque or bank statement
• Address proof of registered office :
  –Own office – Copy of electricity bill/landline bill/ water bill/ municipal khata copy/ property tax receipt
  –Rented office – Rent agreement and No objection certificate (NOC) from the owner
• Proof of appointment of authorized signatory- letter of authorization

Process Of GST Registration

You can perform the process of registration online through a portal maintained by Central Govt. of India. According to GSTN, the registration process is as follows:

• The applicant will need to submit his PAN, mobile number and email address in part A of form GST REG-01 on the GSTN portal or through facilitation centre (notified by the board or commissioner).

• The PAN is verified in this portal. Email address and mobile numbers are verified with a one-time password(OTP). Once the verification is complete the applicant will receive an application reference number on the registered mobile number and via email. An acknowledgement is issued to the applicant in FORM GST REG-02 electronically.

•  Applicant needs to fill part-B of Form GST REG-01 and specify the application reference number. After attaching the required documents, you can submit the form.

• If additional information is required, Form GST REG-03 is issued. Applicant needs to respond in form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.

• If you have provided all the required information via Form GST REG-01 or Form GST REG-04, the registration certificate in Form GST REG-06 for the principal place of business as well as for every additional place of business will be issued to the applicant. Suppose the person has multiple business verticals within a state he can file a separate application for the registration in Form GST REG-01 for each business verticals. If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05. The applicant who is required to deduct TDS or collect TCS shall submit an application in Form GST REG-07 for registration. If he is no longer liable to deduct collect tax at source then the officer may cancel and communicate the cancel of registration.

It’s important for businesses to register to get legal authorization for supplying any goods and services. In some cases this registration is mandatory. Those cases are as following:

• Inter-state supplier
• Who is not a resident of the place of business
• who streams goods on behalf of some other person.
• E-commerce companies
• Taxable person
• Companies that retail their products through e-commerce websites.
• Companies selling services of other providers who are their partners as well.
• You might want to keep yourself updated with the government policies to stay in the game.

Common Questions Around GST Registration

1) Whether the registration granted to any person is permanent?

Yes, the registration certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.

2) Who is a casual taxable person?

A casual taxable person has been defined in Section 2(12) of MGL. It means a person who occasionally undertakes transactions in a taxable territory where he has no fixed place of business.

3) Is the registration compulsory for the job worker?

No. Section 43A of MGL does not prescribe any such condition.

4) Who needs to register for GST?

As per paragraph 5 in schedule III of MGL, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit.

• a person making any inter-state taxable supply.
• casual taxable persons
• a person who is required to pay tax under reverse charge
• non-resident taxable person
• a person who is required to deduct tax under section 37
• persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise
• input service distributor
• persons who supply goods and/or services other than branded services through electronic commerce operator.
• every electronic commerce operator
• an aggregator who supplies services under his brand name or his trade name and;
• such other person or class of persons as may be notified by the Central Govt or State Government on the recommendations of the council.

5) What are the benefits of GST registration?

Registration under Goods And Services tax regime will confer the following advantages to the business:

• Legally recognized as a supplier of goods or services.
• Proper accounting of tax paid on the input goods or services which can be utilized for payment of GST due on the supply of goods or services or both by the business.
• Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

6) What are the charges for GST registration?

There is no government fee applicable on GST registration. It’s free.

7) How much time does it take for GST registration?

It takes 1-2 days or few hours if all documents are submitted with no errors.

8) Can I cancel my registration in future?

Yes, you can cancel your registration if you are:

• Existing Taxpayer
• Migrated Taxpayer whose application for enrolment has been approved
• Migrated Taxpayer who has not filed any other form after the filing of the application for enrolment