What is GST?
Goods and Services Tax is the new unified, multi-stage and consumption based tax levied on manufacture, sale and consumption of Goods and Services at national level to replace all the existing national and state tax systems like VAT, Service Tax, Excise Duty, etc. It is expected to remove the cascading effect of tax-on-tax which is prevalent presently. It is applicable to you if you are into Manufacturing, Trade, E-commerce or Services.
What is GST Compliance Rating?
GST Compliance Rating is a numerical rating given to businesses depending on their level of compliance with Goods & Services Tax rules. Refund claims under the GST regime will also be processed on merit basis, i.e on the GST compliance rating of the registered taxpayer. It is expected that certain slab rates will be maintained for various taxpayers falling under various bandwidths of compliance rating and the refunds will be made in terms of percentage amount based on the individual rating of the taxpayer. Higher compliance ratings will make the refunds process easier for businesses.
How to Enroll for GST?
You can enroll for GST via the common portal of Goods & Services Tax. ClearTax can also help you with your enrollment. For more details click here.
Can I have multiple Registrations?
Yes. A person with multiple business verticals in a state may obtain a separate registration for each business vertical (in each state).
What are the Benefits of Goods & Services Tax?
- Cascading tax effect (meaning tax on tax) will no longer exist
- Input Tax Credit will be easier to avail
- Returns and compliances will be consolidated
- Increased efficiency in Logistics
- Subsumes variety of Indirect Taxes
- Higher threshold for Registration
- Composition scheme for smaller businesses
- Online simpler procedure
- Regulating the unorganised sector
What is Composition Scheme?
Small businesses and taxpayers having a turnover less than Rs. 75 lakhs can opt for Composition scheme where they will be taxed at a nominal rate of 0.5% or 1% (for manufacturers) CGST and SGST each (rates as per the latest proposed changes in the Goods and Services Tax bills). Composition levy is available to only small businesses dealing in goods. It is not available to interstate sellers, e-commerce traders and operators, and service providers.
Is Input Tax Credit Available under Goods and Services Tax?
Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. One of the fundamental features of Goods & Services Tax is the seamless flow of input credit across the chain (from the manufacture of goods till it is consumed) and across the country.
Which all taxes will GST replace?
It will replace all the taxes currently levied and collected by the Centre (such as Central Excise Duty and CVD) and by the State (such as VAT and CST), on businesses.
How many Returns are required to be filed under GST?
A business in most cases will be required to furnish 3 returns monthly and 1 annual return. That means any business will require to file 37 returns in a financial year. However there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS)
What is HSN Code?
The Harmonized Commodity Description and Coding System generally referred to as “Harmonized System of Nomenclature” or simply “HSN” is a multipurpose international product nomenclature developed by the World Customs Organization. It comprises about 5,000 commodity groups; each identified by a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification. Without HSN, the system will not be able to pick tax rate for goods declared at the time of registration.
Is ClearTax GST a comprehensive GST software?
ClearTax GST with its powerful billing, vendor data mismatch reconciliation mechanism, validation engines and return filing process serves as a single platform for all GST compliance.
- You can create 100% GST complaint bills or bulk import sales and purchase data from your accounting software such as Tally in excel format.
- It data validation engine ensures that you are notified when your data looks not in line with set rules, reducing chances of errors.
- You can also collaborate with your accountant and other colleagues in real time.
Are there any pre-system requirements to use ClearTax GST Software?
The software is hosted on cloud and accessible from anywhere at anytime. You need to just sign up using your email Id, and choose the type of plan you want to subscribe for. As soon as you subscription is activated you will be able to get started.
You just need internet connection. Also, the software works both online and offline. If you work offline, the data will automatically sync as you get connected to internet once again..
How does ClearTax GST ensure data security?
Data security is top priority at ClearTax as a tax company. We have taken all industry safety measures to make sure, that your data remains safe both while in transit as well as when at our platforms:
- ClearTax encrypts sensitive data using industry-leading methods. Even when data is transmitted over public networks, we make sure that it flows in encrypted form
- We use standard, well-reviewed cryptographic protocols and message formats (such as SSL and PGP) when transferring data.
- We ensure that cryptographic keys are at least 128 bits long (AES). Asymmetric keys must be at least 2048 bits long (RSA).
- We also install security updates and patches on our servers and equipment on a regular basis. The Security settings of applications and devices are tuned to ensure appropriate levels of protection as well.
My data is stored in tally. How can I import my data?
If you are using any version of tally(licenced or cracked) you can continue using Tally for your accounting needs whereas for GST compliance such as uploading invoices to GST, filing returns etc, you can use ClearTax GST.
You can import the data through two routes:
- Manual: Export all your sales data and purchase data into excel files from tally. Go to GST returns filing feature of Cleartax GST and click on import. Browse your excel file and import all the data into Clear Tax GST.
- Automatic 2 way data integration using connectors: Very soon we will offer API enabled integration between all versions of Tally and Cleartax GST software. You need to just download the API Utility. Once implemented ,it will be reflected under Utilities as ClearTax integration. The connectors will allow 2-way data integration between Tally and ClearTax GST software, i.e you will be able to push data to ClearTAX gst platform from Tally at a click and import the data back to Tally from ClearTax platform.
I want to use my existing accounting software for maintaining business records. How to transfer that data to ClearTax GST to file my GST returns?
You can bulk import all your sales and purchase data into ClearTax GST platform through two ways.
- Import data using Cleartax standard template
- Import data using a customised template
Templates are excel formats designed to capture your sales and purchase data. You can download ClearTax Standard template and fill out all the sales details in the format and upload it
You can upload your original excel sheet and then map all the column headings to heading scheme followed by ClearTax.
Once data is imported you can view all the invoices at a glance. The software will automatically process the data and prepare GST returns for you.
Do I need to be online all the time?
ClearTax GST will soon be working online as well as offline. Which means you will be able to use the software even when you are not connected with internet. Once you get online, the data will automatically sync up.
I have multiple team members across different departments who need to access the sales and purchase transactions data? Do I need to take special subscription for multi-user access?
No, you can add as many users as you want for your business account. Also, you can manage the access rights granted to each user.