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Best GST Billing (& Invoicing) Software for All Your Taxation Needs in India

Gen GST is the best and ultra-secure GST software created by SAG Infotech Pvt Ltd to simplify and accelerate the taxation procedures such as return filing, invoice generation, ITC claims and so on.

Gen GST software comes in three variants – Desktop offline and mobile & cloud online variants. One can easily download and use the desktop variant of the software on a compatible PC or laptop, while the online version is platform- independent and can be accessed and used anywhere anytime.

The mobile app is also available and accessible at just a little additional amount.  All the variants are completely reliable, safe and confidential, backed with the restoration of up to the minute data. An integrated feature in the software lets you upload data directly to the GST portal.

With the price as low as Rs. 5,000 for the desktop version, Gen GST is envisioned as the most affordable and best GST billing software for all your taxation needs. It is attuned with Statutory Compliances and gets well-updated with latest government amendments and notifications.

A vast array of its innovative solutions includes – Invoice (Sale & Purchase) for Goods & Services, Import-Export Facilities, e-Filing, GST E Waybill, and so on. Here we shall discuss Invoicing for Goods and Services.

Gen GST Billing Software is a complete solution for automating all billing and invoicing related work while ensuring accuracy and alacrity.

Unique Features of Gen GST Billing Software

Gen GST is a complete and the only GST billing solution you will ever need. You can use the software for creating all types of GST compliant bills & invoices, e-way bills, etc. in an easy and hassle-free manner. Here’s why Gen GST is the best GST billing and invoicing software.

  • Customized Billing

Customized billing opens avenues for easy, quick and economical invoicing for the taxpayer with user convenient interface.

  • Digitally Signed Invoices

Invoices are attested with digital signatures and they get dispatched directly to the customers.

  • Bill Book Feature

Bill Book facility in the software maintains and updates records and transactions accurately and timely.

  • Bill Generation Facility

Bill is generated automatically or manually with the bill number of the client’s choice.

  • Purchase Invoice for Unregistered Dealers under RCM

The software maintains a separate list of dealers under RCM and generates purchase RCM invoice for them.

  • Mailing facility to the Customers

Gen GST offers an immediate mailing service every single time an invoice is generated.

  • Advance Receipt

The software can prepare the receipt and compute GST on it in advance.

  • Debit Credit Note

Software prepares and maintains reports on invoices, credit notes, debit notes, credit notes and revised invoices of purchase & sales.

  • Refund Voucher

The software allows you to get refund vouchers from clients and assure you to maintain refund timeline.

  • Industry-based Billing Format

Create billing software according to the Industry’s compliance with GST norms.

Other notable features of Best GST Billing Software include:

  • Bulk SMS/Email Facility to Clients

With this feature, one can directly inform unlimited clients about Returns status through emails and messages.

  • Instant Registration

Instant Registration facility for every taxpayer whether its  Regular, Composition or Practitioner under GST with govt accredited forms.

  • Unique Client Authentication Tool

Unlimited password for unlimited clients. Every taxpayer will have his/her own password for any alterations in tax-related data.

  • e-Payment

Secure single click online payments for GST returns, TDS & taxes while maintaining Challan Register and Challan Printing.

To find complete information about the best GST billing software (Gen GST), download a free demo now!

The post Best GST Billing (& Invoicing) Software for All Your Taxation Needs in India appeared first on GST Helpline India Blog.

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No GST on Petrol and Diesel in India at Present! [Updated]

GST on Petrol and Diesel is a cold-sweat issue for Central and State Government. None of the two seem to desire to include Petrol and Diesel in the GST ambit.

GST regime was rolled in with the objective of “One Nation One Tax “ in July 2017. At that time five petroleum products— diesel, petrol, natural gas, crude oil, and aviation turbine fuel—were kept out of the GST sphere which continued to remain out till date. Neither does it seem to arrive under the purview of Goods and Services Tax (GST) in the near future as the government will have to face a hefty revenue loss.

Although the discussions were held among big industrialists and some ministers including Dharmendra Pradhan and Nitin Gadkari, regarding GST on petrol and diesel to deal with the price flexibility of crude, it doesn’t seem to have any prospectus to levy GST on petrol and diesel. The Union finance ministry as well did not announce any proposal for GST on petrol and diesel after when the same issue was deliberately discussed in GST council meeting on 4 August.

Recommended Post: GST Impact on Petroleum Products in India

Neither the central government Nor any of the state government advocates the inclusion of Petrol and diesel under the Goods and Services Tax (GST) rate slabs. This is because if these two fuels are kept under GST, the Centre will have to relinquish ₹20,000 crore input tax credit which currently contributes into the central revenue when petrol, diesel, natural gas, jet fuel and crude oil are out of GST.

As far as the States are concerned, they wish to preserve a revenue puddle to instantly deal with any contingency like the recent floods in Kerala in a better way.

At present, the Centre charges an exercise duty of ₹19.48 and ₹15.33 per litre on petrol and diesel respectively and the states levy value-added tax (VAT). 6% is the lowest VAT, charged by Andaman and Nicobar Islands on petrol and diesel as well. Whereas 39.12% is the highest VAT levied by Mumbai on petrol and  26% is the highest VAT levied by Telangana on diesel.

Under GST, the total tax on a specific good or service has been fixed at an akin level as the sum total of central and state taxes were applicable prior to 1st July 2017,  by keeping them into one of the four GST tax brackets of 5%, 12%, 18% and 28%.

Also Read: GST Impact on Oil and Gas Sector

On 29 May, the rate of petrol and diesel soared to the crest at  ₹78.43 and ₹69.31, the highest till today. However, the rates dropped down slightly during the subsequent period as a consequence of mollification in oil prices at international font and strengthening of rupee against the US dollar.

At present, the cost of Petrol and Diesel in Delhi is ₹77.49 and ₹69.04 respectively. The VAT is leviable at 27% on petrol and 17.24% on diesel in Delhi.

The post No GST on Petrol and Diesel in India at Present! [Updated] appeared first on GST Helpline India Blog.

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GST Rates for Paper Products in India [Complete Updated List]

The Goods and Services Tax (GST) system which was launched in India in July 2017 is an indirect tax system which covers a range of goods and services being supplied within and from India. GST is a consumption-based tax and is applicable to the supply of goods/services at each stage of the supply chain.

Paper products, being a very prominent industry of India, also comes under the coverage of GST. In this article, we will discuss GST rates on the supply of different kinds of paper products, including paper pulp and paperboard.

GST on Different Types of Paper Products

Most of the paper products being supplied in India fall under chapter 48 of the GST HSN Code. The HSN code of a particular product determines its GST rates for paper products.

GST has five different tax slabs, namely 0% or Nil, 5%, 12%, 18%, and 28%, and different paper products fall under different tax slab, as follows:

Nil (0%) GST Rate

The following paper products fall into this category:

Judicial stamp papers, Non-judicial stamps, Court fee stamps sold only by the Government Treasuries or Government-authorized Vendors, Postal items such as envelopes, Postcards, etc. which are sold by Government, Cheques books & loose cheques, rupee notes sold to the Reserve Bank of India.

5% GST Rate

GST on the following paper items is levied at 5% rate.

Newsprint rolls and Newsprint sheets

Kites (revised from earlier 12%)

Paper pulp moulded trays (revised from earlier 12%)

Articles made of paper mache (revised from earlier 12%)

12% GST Rate

The following paper goods fall into 12% GST rate category:

Uncoated paper and paperboard, greaseproof paper, uncoated kraft paper, composite paper, glassine paper, etc., Aseptic packaging paper, paper cartons, boxes, corrugated paper boxes or paper board box, boxes, wallets, pouches, writing compendiums, etc. which are made of paper or paperboard and contain paper stationery such as writing blocks, exercise book, laboratory notebook, graph book, etc., braille paper, asphaltic roofing sheets, paper splints on matches.

Exercise books and notebooks (revised from earlier 18%)

Also Read: GST on Books, Brochures, Newspapers, Printing and Publishing Industry

18% GST Rate

The following articles made of paper or paper board are subject to 18% GST rate:

Toilet or facial tissue, towels or napkins and other similar paper items used for household/sanitary purposes, vegetable parchment, cellulose wadding and webs of cellulose fibres, tracing papers, glazed transparent or translucent papers (both rolls and sheets), carbon paper, self-copy paper and other copy papers (including coated or impregnated paper for duplicator stencils or offset plates), paper, paperboard, webs of cellulose fibres and cellulose wadding (in rolls or rectangular/square sheets), filter blocks, paper pulp slabs and plates, cigarette paper (in any form), blank in Tariff, duplicator stencils and offset plates made of paper, envelopes, plain postcards, letter cards, correspondence cards made of paper/paperboard, paper handkerchiefs, towels, table cloths, cleansing tissues, serviettes, baby napkins, tampons, sanitary or hospital articles, bed sheets, apparel and clothing products made of paper or paper pulp, registers, account books, order books, note books, receipt books, memorandum pads, letter pads, diaries and other paper articles, blotting-pads, folders, file covers, binders (loose-leaf or other), manifold business forms, book covers, interleaved carbon sets and other stationary articles made of paper or paperboard, bobbins, spools and similar products made of paper, paper pulp or paperboard, paper or paperboard labels of all kinds.

18% GST rates for paper products like Wall paper and similar wall coverings, transparent window papers (revised from earlier 28%)

The post GST Rates for Paper Products in India [Complete Updated List] appeared first on GST Helpline India Blog.

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Everything About GST Rate on Directors Remuneration (Income)

This article presents details about GST on directors remuneration, GST on sitting fees, commission and so on.

Sections and Notifications for Tax Applicability

Under section 9(3) of CGST Act & section 5(3) of IGST Act, the government has the authority to notify the levy of GST on RCM basis on goods and services.

According to the government notification through entry no. 6 of Notification No. 13/2017- Central Tax (Rate) dated 28th June 2017 & entry no. 7 of Notification No. 10/2017- Integrated Tax (Rate) dated 28th June 2017, any services provided by a director of a company to the concerned company would come under reverse charge.

Section 2(102) of CGST Act has given the definition of “Services”  as:

“services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.

So, according to the notification by the government- the tax on services provided by the director would be payable on reverse charge. Means the sitting fees, commission and the services charges for providing a guarantee for a loan granted to the company etc comes under reverse charge so there is liability of GST on directors remuneration.

Who has to Pay the GST?

As per the GST Law, The Section 9(3) and Section 9(4) of the CGST Act constitutes the provisions related to reverse charge applicability. According to these provisions, there are mainly two cases where the RCM is applicable which are as follows:

  • Supplies notified by Government under section 9(3)
  • Taxable Supplies to a registered person by an unregistered person

In the first case, the liability to pay tax falls on the recipient side means the one who receives the services and not the one who supplies the services. Under section 9(3), the liability to pay tax is on the company who receives the services (recipient company), no matter even if the turnover from director’s services is more than INR 20 lakhs or 10 lakhs.

Is it Mandatory for Directors to be Registered under GST?

As per notification no. 5/2017 – Central Tax dated 19th June, 2017, Government has mentioned that the individuals, who are engaged in making supplies of only taxable goods or services or both, the total tax on which is subject to reverse charge basis by the receiver of such goods or services or both under sub-section (3) of section 9 of the Act, are exempt from mandatory registration under the Central Goods and Services Tax Act, 2017 (12 of 2017).

According to section 24(iii) of CGST Act, a person who needs to pay tax under RCM must be mandatorily registered regardless of the limit of its turnover which implies that:

  • GST registration is not mandatory for the directors of the company if they are providing only those services on which Tax has to be paid on RCM basis by the recipient of the services.
  • GST registration is mandatory for the recipient company to pay tax on RCM basis, regardless of its turnover size.
Nature of Transaction for Applicability of GST on Directors Remuneration

The applicability of IGST, CGST and SGST that is liable on reverse charge services depends on the place of supply for such services & the place of the supplier of services.

Place of supply & the place of the supplier of services, both, hold an utmost value, as where IGST is applicable on inter-state supplies and CGST and SGST are applicable on intra-state supplies, the tax has to be paid in the state where supply takes place, and so contributes to that particular state government’s revenue.

The principles of determining the nature of supply (i.e. interstate supply or intrastate supply) remain the same in case of RCM as well, since the government has merely chosen the recipient of goods/services as the point of convenience from the point of view of better compliance with the law.

Interstate and Intrastate Supply

Section 7 and Section 8 of the IGST Act defines the inter-state and intra-state supply respectively. According to these sections, the transaction is, an inter-state supply when the place of the supplier and supply are different and not located in the same state or UT, and an intrastate transaction when the place of the supplier and supply are located in the same state or UT.

Place of supply

According to Section 12(2)(a) of the IGST Act, the place of supply is the location where the services are provided or received.

As far as the director’s service is concerned, it is served to the board of the company. The board refers to the supreme body of corporate administration. So here the place of supply is the place where the board of the company is located, where directors’ services are supplied.

In general, it is the registered office of the company. But in some cases, it is the place from where the company is ruled or controlled. For instance when the companies register their offices at distant places or remote locations like factories, tea gardens, the original place of its formation, etc. In such cases, the location where important board meetings take place or the place where high-level management is situated in the place of corporate administration.

Note: It excludes the place if management has conducted a meeting at a holiday spot for a change. The common or usual place of corporate governance will still be considered as the place of supply.

Recommended Post: No GST on Salary Paid to Private Sector Employees

Location of the supplier in case of director services

The section 2(15) of IGST Act defines the location of the supplier of services as the place where –

  • supply is made from a place of business which is registered, the location of such a place of business;
  • supply is made from a place other than the place of business which is registered (a fixed establishment somewhere else), the place of such fixed establishment;
  • supply is made from two or more establishments, whether the place of fixed establishment or business, the location of the establishment which is highly concerned with the provisions of the supply; and
  • the usual place of residence of the supplier is located, in the absence of such places (as such directors do not own any registered office).
Self Invoicing in RCM Cases

Section 31(3)(f) of the Act states that a registered person shall issue an invoice in respect of goods or services or both received from supplies covered u/s 9(3) and unregistered suppliers covered u/s Sec 9(4).

There is no legal standard format for such invoices but the only thing required is that it should be in compliant with Rule 46 of the CGST Rules. Rule 52 of the CGST Rules is also there which prescribes the format of the payment voucher when payment is made to such a person.

The post Everything About GST Rate on Directors Remuneration (Income) appeared first on GST Helpline India Blog.

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Applicability of GST on Under Construction Flats in India

The government has recently revised GST applicability and rates on both under-construction properties and ready-to-move-in flats. The new rates will be applicable from April 1, 2019.

GST (Goods & Services Tax) is an indirect tax system which was implemented in India on 1st July 2017 thereby replacing all the existing indirect taxes on the supply of goods and services. Here we will discuss the important points about GST on under construction flats.

GST on Under Construction Flats (Properties)

Before April 2019, the GST rate on the supply of under construction flats was 12% with ITC (input tax credit) available.

According to the new rules, the new GST rate on under construction flats with price above Rs 45 lakhs is 5%, but ITC will not be available on the same.

The same GST rates and rules will also be applicable to the supply of ready-to-move-in flats, given that the completion certificate is not issued by the time of sale.

On the other hand, properties whose construction is completed and the certificate is issued will not attract the GST and are only liable for stamp duty.

Recommended: GST Rate on Completed Flats in India

GST on Affordable Homes (Under construction)

GST rate on the sale of affordable homes is 1% with no ITC. Previously, it was 8% with ITC availability.

However, there are certain conditions.

For one, only the under-construction properties with a valuation of Rs 45 lakhs or less will be considered under the affordable housing scheme. The sale of such properties will attract 1% tax with no ITC.

Another condition for a property to be eligible for affordable housing scheme is that the carpet area of the property should be less than 650 sq ft (in metro cities) and less than 960 sq ft in non-metros, while the price must be below Rs 45 lakhs.

On the other hand, the sale of under-construction properties whose value is above Rs 45 lakhs will attack 5% GST and no ITC will be available on it.

The recent changes in the GST rates for under-construction flats, especially in the affordable housing scheme, are expected to help the real estate industry under GST, giving a boost to the sale of under-construction properties in both metro and non-metro regions.

Another important point to note here is that the new, revised GST rates on under-construction properties are optional, as the builders/developers can continue to choose to levy the old GST rate of 12% on under construction flats (and 8% on affordable housing) if they wish to avail ITC. However, this is only applicable to the ongoing projects whose construction started before April 1 or did not finish by March 31, 2019.

New construction projects, starting from April 1, will mandatorily attract GST as per the new rules, i.e. 5% GST on under construction flats with value above Rs 45 lakhs and 1% on flats with value below Rs 45 lakhs.

The post Applicability of GST on Under Construction Flats in India appeared first on GST Helpline India Blog.

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GST Rate on Completed Flats or Ready to Move Apartments in India

GST (goods and Service Tax) is an indirect tax which applies to all supply of goods and services. When it comes to buying a home, GST is applicable but only on under-construction properties because here construction refers to the supply of service.

How is GST Applicable to Completed Flats?

When we talk about the fully constructed apartment or home, there is no GST rate on completed flats.

This is because a completed project – ready-to-move apartment or villa is neither a good nor a service. When the property is under construction, the developer is giving a service to the buyer by building or constructing the project and so the GST is imposed. But in a completed project, there is an absence of service and so no GST is applicable. It is a property on which stamp duty is paid.

Under the GST regime, under-construction and completed projects are treated differently when it comes to taxation. Here, we will throw light on GST rate applicability to completed flats.

Ready-to-move apartment is out of GST ambit. GST is applicable when the service is received and the payment is done for the construction services. When it comes to fully-constructed buildings, where construction has already been done, no GST would be applicable to the purchase of such projects because of the absence of construction services.

And the same is with the used apartment when you buy a ready to move in apartment in the resale offer or an apartment which is already used by someone, you are under no duty to pay GST on it.

Also Read: GST Impact on Property

Let us further dive into the applicability of GST on the immovable property or buildings. Basically, it depends on the issuance of completion certificate. When the completion certificate for a specific property is procured before making any payment to the seller, it would be referred as a sale of the ready-to-move-in property and would not be considered as supply of goods or services. Hence, the sale of completed flats will be exempted from GST i.e. no GST on completed flats.

However, the Goods and Services Tax (GST) will be applicable on sale of ready-to-move-in flats as well as under-construction property where the completion certificate is not issued at the time of sale.

In short, GST will not be charged from the buyers of real estate properties, for which the completion certificate is issued during the time of sale.

Ready-to-move apartments do not attract GST and only the developers will get input credits on the construction costs.

Developers will collect and pay GST on the project’s cost.

The premium charged for ready to shift apartments may nullify the benefits under the GST.

GST on Completed Flats or Apartments Purchased Under CLSS

The (CLSS) (Credit-Linked Subsidy Scheme) has been brought in with the aim to provide homes to the weaker, lower or middle-class sections of the society at affordable prices. The eligibility for the scheme has been set as – the highest annual income of up to Rs 18 lakh. Under the scheme, the GST on these affordable houses will be 8% instead of 12%.

Anti-Profiteering

Section 171 of the CGST Act defines that if there is a cutback in GST rate on the supply of goods or services then the benefit of the input tax credit, which has to be given to the buyer, would also be curtailed in the same proportion as GST. In case, when the seller fails to lessen the prices after a contraction in GST rates, the matter will be taken to the Anti-Profiteering Authorities.

The post GST Rate on Completed Flats or Ready to Move Apartments in India appeared first on GST Helpline India Blog.

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Reconciliation of GSTR 1 and GSTR 3B Return Forms

Reconciling of GSTR 1 and GSTR 3B holds incredible value as any mismatch between the two can exclude you from the good books of government and may comply the tax authorities to send you to demand notice in order to solve the unwanted issues that may obstruct the errorless filing of the annual returns. To understand the importance of reconcilement in this context, let us first know about these two forms.

GSTR-1 is a monthly or quarterly return filed by taxpayers wherein they mention the details of their outward supplies for the month – along with their tax liability. In GSTR-1 invoice-wise details are to be uploaded to facilitate Government to keep track on every transaction, this further becomes a cornerstone for the recipient of supplies for claiming the eligible input tax credit.

GSTR-3B is a monthly summary return filed by a taxpayer wherein they mention the supplies made during the month along with GST to be paid, input tax credit claimed, purchases on which reverse charge is applicable, etc. The taxpayer has to file this form by the 20th of the next month. This is also a provision for the payment of taxes, if any, for the relevant month.

GSTR-1 vs GSTR-3B

The GSTR-3B is an encapsulated return form whereas GSTR-1 is a reporting of all output invoices and taxes on them. GSTR 1 is an individual invoice level reporting which is done on GSTN while GSTR 3B is a summarised/consolidated reporting for sales and purchases in a month together with the ITC claims for the month.

Importance of Reconciliation between GSTR 1 and GSTR 3B

GST Reconciliation/ Matching is not a new term for any taxpayer. This has been a popular item since earlier VAT and excise regime. Under GST, Reconciling Form GSTR 1 and Form GSTR 3B  has gained more significance as it helps in the following way:

  • It’s a confirmation that there is no duplicity or oversight of invoices
  • It is helpful in ascertaining an accurate amount of tax which is payable on the sales during the particular period.
  • It is helpful in diagnosing errors in integrated taxes while filing GSTR 3B
  • It assists the Government to designate the right share of tax revenue to the concerned states.
  • It ensures that only legitimate input tax credit can be claimed as GSTR-1 forms are the linchpin or foundation for the recipients of supplies to claim input tax credit while filing their returns and reconcilement of  GSTR-1 and GSTR-3B ensure that only genuine input tax credit can be claimed.
Reconciliation During the filing of Annual Return

While filing an Annual return in Form GSTR-9, a reconciliation of outward supplies is much needed to make sure that the details presented match the details mentioned in GSTR-1 and GSTR-3B, across all months. Similarly, Details of tax paid throughout the year also has to be mentioned which must also be matched with the total taxes mentioned and paid in GSTR-3B. Therefore Reconciliation While the filing of Annual return holds far fetched value.

Why Do Mismatches in GSTR-1 vs GSTR-3B Happen?

The following could be the reasons for mismatches in GSTR-1 vs GSTR-3B

  • Mentioning supplies in GSTR 3B under the wrong head but correctly declaring the same details in GSTR 1

For Instance:  Correctly Furnishing Zero-Rated Supplies under the Table 6A of GSTR 1, but wrongly reporting the details under Table 3.1(a) in GSTR 3B.

  • Issuing invoices, debit and credit note for a specific month on a later date.
  • Supplies made to an unregistered person declared in GSTR 1 but omitted in GSTR 3B.
  • Tax paid under the wrong head

For instance, IGST paid under the head of CGST and SGST.

  • Tax liability mutated between the filing time of GSTR 1 and GSTR 3B
  • Reporting invoices in GSTR 1 and GSTR 3B at different time.
Consequences of Mismatches

These mismatches may lead you to get show cause notices from GST authorities or lead you to pay a penalty plus interest. In case of a lesser amount of tax paid, the taxpayer has to pay the deficit tax amount together with interest.

How to Solve GSTR 1 and 3B Mismatch?

Considering such mismatches SAG Infotech concocted Gen GST Software –  Highly advanced reconciliation solution which ensures that there is no chance left for any mistake and mismatch by knocking out human intervention.

It compares the data of GSTR 1 and 3B data and identifies all the mismatch areas followed by its correction and validation at all the levels.

Gen GST along with reconciliation also takes care of purchases and GSTR 2A, E-way bills reconciliation with inward and outward supply. All the reconciliations are done monthly/ yearly consolidated and also in accordance with the vendor’s wish. Thus, making you and your business stay tension-free in terms of GST Compliance. Isn’t it amazing?

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Applicability of GST Rates on Hostel Services in India

Levying a tax on the education sector is indeed a delicate but an important concern because education is not just a business, it is more about the social task which polishes and prepares our future generations. Government has an important role to play in this sector and so does government by providing free and compulsory elementary education to every child of the nation and exempting tax on educational services.

The commercialisation of education is also inescapable reliability of today’s date wherein the education sector has become a standardised industry with high profits.

So, to maintain an ideal symmetry, GST Act has kept core educational services provided/received by educational institutions out of the tax bracket ( fully exempted) while the other services are taxable at the standard rate of 18%. Let’s discuss about GST applicability on hostel running services.

GST on Students’ Hostel Services

Auxiliary services served to educational centres with the motive to impart education up to Higher Secondary level are GST exempted. Other education services which do not come under the exemption, would be taxed at a standard rate of 18% with complete applicability of ITC for such taxable services when the output service is unexempted.

Services provided by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by the means of charitable activities are also GST exempted.

Under the GST, the services, provided by an educational institution to its students, faculty /staff or to an educational institution, which is exempted from GST are as follows:

  • Transportation service to students, faculty and staff;
  • Catering as well as any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
  • Security or cleaning or housekeeping services provided in such educational institution;
  • Services relating to admission or examination up to higher secondary

Note: Service provided to an educational institution excluding an institution providing services by way of pre-school education and education up to higher secondary school or equivalent is treated as a taxable service.

GST on boarding and lodging (Hostels)

The commencement of GST reign did not elevate the boarding and lodging costs for parents of under-Class X students staying in hostels. Instead, GST, which subsumes more than a dozen local taxes, consequenced the reduction of the taxes levied on multiple components of education and all services that are given to students and staff.

Now, the Lodging and Boarding services served by educational institutions in hostels from the pre-school to higher secondary level are exempted from GST while 18 per cent GST is imposable on the annual fees payable to the schools/hostels for lodging.

When we talk about the GST on hostel services like lodging facility, under the GST Law, services for residential or lodging purposes by a hotel, inn, guest house, club, campsite, a hostel or by whatever name referred, having the specified tariff of a unit of accommodation below 1000 rupees per day is exempted from GST.

Related Post: GST Impact on Education Sector

GST on Hostel Mess

As far as the private institution which outsources its entire hostel facility to some third party for running and the said third party issues a monthly bill to the institution is concerned, GST @5% is liable on the foodstuff without ITC.

Hostel facility mainly includes mess and lodging services. The Mess facility provided to students and staff attracts 5% GST. Immaterial of whether it is served by the educational institution or an outside (foreign) contractor, services related to food or drink provided by a mess or canteen is always taxable at 5% without Input Tax Credit.

Application of GST on Training programs, camps, yoga and other programs

Training programs, camps, yoga and other programs are considered as commercial activities and therefore comes under GST tax bracket.

The post Applicability of GST Rates on Hostel Services in India appeared first on GST Helpline India Blog.

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GST Software for Restaurant Business in India – Download Free Demo

A true innovation that serves all – Gen GST Software was invented by SAG Infotech with the mission to become an epitome of accurate, compliant and in-time GST management. Aptly termed ‘panacea from SAG Infotech’, Gen GST Software serves an errorless and effortless management of GST related activities in compliance with the latest tax rules and regulations, irrespective of what the business is.

In India, the restaurant industry is worth Rs.75,000 crores and growing at a pace of 7% annually. Restaurant owners, just like any other business, are constantly looking for proper and complete GST software solutions for easy GST return filing, e-billing and other compliance related services.

Let us dig deeper into how Gen GST software can help restaurants in terms of GST related tasks.

Why Gen GST is the best GST Software for Restaurants and Food Businesses

Highly Advanced

Gen GST is a hi-tech software which facilitates users to e-file the returns from various sources easily and accurately. The application is developed on cutting-edge technologies and is regularly updated based on the latest GST compliance rules.

Creation of Masters:

This feature enables the maintenance of data in an organised manner by abbreviating verbosity of data. Creation of Masters supersedes the need to enter the same data many times. The fusion of similar kind/format of data/word/phrase is possible through Data merging utility followed by the elimination of the masters via Delete the Master function, available in Gen GST Software for restaurant.

Also Read: Impact of GST on Restaurants

GST Compliance Invoices

Invoice creation facilitates the production of invoices from invoices/bills of Goods and Services to customize billing. Restaurant manager or owner can now easily create custom-built invoices such as shipping bill, debit-credit note, advance receipt and e-Way Bill. Invoice creation facilitates of invoices from invoices/bills of Goods and Services to customize billing. Restaurant manager or owner can now easily create custom-built invoices such as shipping bill, debit-credit note, advance receipt and e-way bill.

Easy and Complete E-Filing of GST Returns

Gen GST Software serves the facility of e-filing of return and invoicing via Fast e-filing and DESCRIPTIVE e-filing modes. A restaurant owner can fill the GSTR Forms as per the government norms and follow compliance with accurate reports. In addition to it, he/she can also upload the invoices as per their convenience. Further Gen GST Software helps them detect any mismatch or error through Match Mismatch Report Notification and Auto Error Identification features respectively.

Gen GST Software for restaurants supports the e-filing of almost every GST return form, including GSTR-1, GSTR-2, GSTR-3, and more.

Data Import-Export:

Gen GST software has been enabled with data import facility which restaurant owners can use to upload/import data from any other compatible GST accounting software or online portal. Moreover, taxpayers can also export their GST returns and invoices to other software and applications. Other than that, the software also allows import/export excel templates from/to GSTN, import of JSON e-file from other tools, upload of returns to GST portal, import billing details, and more.

Updates & Notifications by SMS/Email:

Gen GST software can be customized to send SMS and Email notifications related to the status of e-filing of returns to the clients and other parties

In-app Payment of Taxes

Gen GST software has also been integrated with the payment feature using which a taxpayer/return-filer can easily make the e-payment of their due-taxes with a single click. The program gives access to the GST portal API where you can directly pay taxes to the government and receive the confirmation along with a payment voucher.

Best-in-class Security

Owing to the increasing issues of online theft and fraud, Gen GST software by SAG Infotech has been created with high-security measures in place. For instance, the application comes with high-end security features, including data encryption, User Rights, Client/Year Wise Password Protection, Return Lock Facility and Log facility.

To conclude, Gen GST is the best GST software for restaurant businesses, as it comes integrated with all the features and facilities you may ever need to be GST compliant, removing the need for hiring separate GST professionals, CAs, etc., or pay high fees for return filing. Get a Free Demo Now!

The post GST Software for Restaurant Business in India – Download Free Demo appeared first on GST Helpline India Blog.

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GST Helpline India Blog
Input Tax Credit (ITC) on Capital Goods under GST with Example

There are different provisions under the GST regime to calculate input tax credit (ITC) on capital goods under GST, availability and non-availability of input tax credit and ITC reversal calculation as well.

In addition to this, capital goods use special provisions as well for both taxable and exempted supplies.

What are Capital Goods Under GST Act?

Under section 2 (19) of the GST Act, “Capital goods” is mentioned as the goods, worth of which is capitalized in the books of account of the person requesting for the input tax credit and the goods which are used and meant to be used in the course or furtherance of business.

What is Input Tax Credit (ITC) on Capital Goods?

If the capital goods are used only for business purpose, the person will be eligible for claiming input tax credit available on capital goods under GST. There is the only condition of mentioning transaction in the GSTR filing.

In other cases, ITC on capital goods is not available, if it is used especially for effecting exempt supplies and for personal use only.

Formula to Calculate Input Tax Credit

If a capital good is used for both business and personal use then one can evaluate the input tax credit as per the following formula.

If GST paid per month then Input Tax Credit calculated via following formulas

GST Paid on Monthly Basis – Input Tax Credit on Capital Goods – Mixed Use

Input Tax Credit = Input Tax Credited to Electronic Ledger / 60

The number 60 is obtained from multiplying months of 5 years. Hence, 5 * 12 = 60

2. In case GST payment done on Quarterly basis then Input Tax Credit is concluded via the formula given below

GST Paid on Quarterly Basis – ITC on Capital Goods – Mixed Use

Input Tax Credit = Input Tax Charged to Electronic Ledger / 20

The number 20 is evaluated by multiplying 5 years with the number of quarters in a year. thus, 5 * 4 = 20.

Personal Use Transformed into Mixed Use

The second formula is to be used when capital goods which were used once for personal purpose and later on used for both, personal and business purpose.

Input tax to be ascribed to electronic credit ledger = Input Tax – 5% of Input tax for every quarter or part thereof from the date of invoice.

Common Input Tax Credit Payable Towards Exempted Supplies

Common Credit Calculation Formula for Exempted Supplies

Step 1: Credit towards Exempted Supplies = (Cost of exempted supplies / total turnover) * Credit for tax term.

Step 2: Appropriate Input Tax Credit = Total of input tax credit – credit towards exempted supplies.

Sale of Capital Goods Under GST

The CGST Act u/s 18 has provisions for the sale of capital goods along with conditions and limitation if the input tax credit has been taken on the considered supply of goods given below is payable.

The input tax credit taken on the above-mentioned capital goods or plant and machinery, the similar amount is reduced by such percentage according to the provision of Rule 44(6); or the tax on the transaction value of considered capital goods or plant and machinery levied as per section 15, whichever is higher.

The input tax credit (ITC) for capital goods held in stock, the remaining useful life of capital goods in months considered five years calculated on prorata basis as per rule 44 (6).

In addition to this, the CGST Act under section 18 allows considering dies, moulds and jigs, refractory bricks, fixtures and jigs as scrap. By this, the registered person under GST Act may be liable to pay taxes on the transaction value of goods mentioned under section 15.

Input Tax Credit Reversal on Capital Goods

Written below are the situations when the ITC on the capital goods needs to be reversed:

When taxpayers are willing to pay tax under the composition scheme.

When supplied goods or services from the taxpayer gets exempted.

When there is a supply of capital goods, on which the taxpayer has already availed input tax credit.

When the taxpayer’s registration has been cancelled and the Input tax credit for the remaining useful life in months will be evaluated on prorata basis, considering useful life as five years.

The post Input Tax Credit (ITC) on Capital Goods under GST with Example appeared first on GST Helpline India Blog.

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