Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST. However, the cross utililzation of CGST and SGST would not be allowed except in the case of inter-State supply of goods and services under the IGST model.
We recommend minimum hardware configuration as under:
Processor Core i3 or higher (2GHz or faster processor)
RAM 2 GB or more (4 GB recommended)
HDD 5 GB or more Hard Disk space
Other USB Port
- Supported Client OS
- Microsoft Windows 7 with Service Pack 1, Windows 8.1, or Windows 10 (64 bit Recommended)
- Supported Server OS
- Windows Server 2008 R2, Windows Server 2012 R2, Windows Server 2016
- .NET Framework 4.0 or Higher
Useful Information to upgrade GST in Miracle Software
As we all know, GST is going to rollout from 1st July, 2017. We have also implemented GST in Miracle Software. Please go through the attached file to upgrade Miracle into “GST Ready” version.
What are the changes in GST Ready Miracle Software and how it is implemented?
Find HSN Code for Your Business. HSN stands for Harmonized System of Nomenclature which is internationally accepted product coding system used to maintain uniformity in classification of goods.
HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Depending upon the turnover Taxpayers shall use 2 digit,4 digit or 8 digit HSN code.
Dealers registered under the Composition Scheme of GST are exempted from the usage of HSN Codes.
Download HSN Code List: (Last Updated Date: 20 May 2017)
The present indirect tax regime is complex and entails multiple taxes and duties. Further, there is a significant cascading effect of taxes on account of various restrictions on cross utilization of credit of one tax against another. In addition to this, multiplicity of returns and compliances at State level, administrative costs, waybills requirement for inter-state movement of goods, add to the procedural compliances to be followed by the assesses.
Introduction of a GST to replace the existing multiple tax structures of Centre and State taxes are not only desirable but imperative in the emerging economic environment. The Goods and Services Tax (GST) is a destination-based value added tax, levied at all points in the supply chain with credit allowed for tax paid on purchases used in making the supply. It would apply to both goods and services in a comprehensive manner with exemptions restricted to minimum.
The dual GST which would be implemented in India will subsume many consumption based taxes. At central level, Central excise duty, Additional excise duty, Service tax, Countervailing duty (CVD) and Special Additional Duty (SAD) and at State level, VAT/Sales tax, Octroi and Entry Tax, Purchase tax, Luxury tax, Entertainment tax and taxes on lottery, betting and gambling would be subsumed.
A 4-tire GST tax structure of 5, 12, 18 and 28 percent, with lower rates for essential items and the highest for luxury and de-merits goods that would also attact an additional cess, was decided by the GST Council. By removing cascading effect, layers of taxes and simplifying structure, GST will effectively mean that the tax paid by the final consumer will come down in most cases. In case of services it is likely expected to have a flat rate of 18% including cesses.
|3%||Precious items like Gold and Silver|
|18%||For goods other than covered under 12%|
|Vajpayee Government mooted the Idea|
|Kelkar Task Force - Vijay Kelkar presented paper in Oct´02|
|Proposal to Introduce the GST was put forth by April 2010 by FM in budget|
|Empowered Committee presented first discussion paper|
|FM proposed to introduce GST from April 2011|
|Constitution 115th Amendment bill introduced in LS|
|Committee submitted report in Aug´13 but the Lok Sabha dissolved|
|Revised Constitutional amendment bill was tabled in LS, GST expected from April 2016|
|06 May 2015: Passed by Lok Sabha|
The spread of Value Added Tax (VAT) and Goods and Services Tax (GST) has shown an increasing trend over the last two decades. Most of the current experts and international authorities agree that out of 194 countries in existence over 160 countries have implemented VAT/GST. Most of these countries have a unified GST system barring countries like Brazil and Canada, which follow a dual system wherein GST is levied by both federal and state or provincial governments. France is the first country in the world, which has implemented GST in 1954. Latest, GST was implemented in Malaysia in April 2015.Rate of GST ranges between 15-20% generally (may differ to higher/lower side in few countries).
The following countries are working towards implementing GST/VAT system Gulf Cooperation Council (Bahrain, Kuwait, Qatar, Saudi Arabia, Oman and the United Arab Emirates) across the UAE on January 1 2018.
Compliance with Returns
Under the current indirect tax regime, a taxpayer is obligated to file multiple returns under various statutes which could be manual/online filing. Reporting the same transaction repeatedly in varying formats to multiple authorities has only proven to be cumbersome to the tax payers.
In a move towards Ease of Doing Business, GST regime is knocking out the multiplicity of return compliance and moving towards paperless tax compliance. Returns under GST envisage that tax payers will freeze the actual credit eligibility and impending tax liability after due co-ordination between the customers and vendors respectively.List of returns to be filed under GST regime:
|Monthly||10th of succeeding month||Furnish details of outward supplies of taxable goods and/or services affected|
|Monthly||On 11th of succeeding Month||Auto-populated details of inward supplies made available to the recipient on the basis of Form GSTR-1 furnished by the supplier|
|Monthly||15th of succeeding month||Details of inward supplies of taxable goods and/or services for claiming input tax credit. Addition (Claims) or modification in Form GSTR-2A should be submitted in Form GSTR-2.|
|Monthly||20th of succeeding month||Details of outward supplies as added, corrected or deleted by the recipient in Form GSTR-2 will be made available to supplier|
|Monthly||20th of succeeding month||Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax|
|Monthly||—||Communication of acceptance, discrepancy or duplication of input tax credit claim|
|—||—||Notice to a registered taxable person who fails to furnish return under section 27 and section 31|
|Annually||31st Dec of next fiscal||Annual Return – furnish the details of ITC availed and GST paid which includes local, interstate and import/exports.|
|Quarterly||—||Details of inward supplies made available to the recipient registered under composition scheme on the basis of Form GSTR-1 furnished by the supplier|
|Quarterly||18th of succeeding month||Furnish all outward supply of goods and services. This includes auto-populated details from Form GSTR-4A, tax payable and payment of tax.|
|Annual||31st Dec of next fiscal||Furnish the consolidated details of quarterly returns filed along with tax payment details.|
|Monthly||20th of succeeding month or within 7 days after the expiry of registration||Furnish details of imports, outward supplies, ITC availed, tax paid, and closing stock|
|Monthly||0n 11th of succeeding month||Details of inward supplies made available to the ISD recipient on the basis of Form GSTR-1 furnished by the supplier|
|Monthly||13th of succeeding month||Furnish the details of input credit distributed|
|Monthly||10th of succeeding month||Furnish the details of TDS deducted|
|Monthly||TDS certificate to be made available for download||TDS Certificate – capture details of value on which TDS is deducted and deposit on TDS deducted into appropriate Govt.|
|Monthly||10th of succeeding month||Details of supplies effected through e-commerce operator and the amount of tax collected on supplies|
|Annually||Annual, 31st Dec of next fiscal||Reconciliation Statement – audited annual accounts and a reconciliation statement, duly certified.|
For taxable person whose registration has been surrendered or cancelled
|Monthly||Within 3 months of cancellation of registration||Furnish details of inputs and capital goods held, tax paid and payable.|
|Monthly||28th of succeeding month||Details of inward supplies to be furnished by a person having UIN|
Ease of doing Business
Economies are ranked on their ease of doing business, from 1-190. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. Latest Ease of Doing Business report of the World Bank Group has once again everyone has been left disappointed as India climbed just one position to 130 this year.
Paying taxes is one of the worst indicators for India - this year the countrys rank remained atlowly 172 out of 190 countries.
The introduction of the Goods and Services Tax (GST)is expected to ease doing business by managing the multiple indirect taxes applicable in the existing tax regime, removing cascading effect of taxes and widening the tax base.
By unifying all Indian states and Union Territories into a one nation one common market, GST will exponentially enhance the ease of doing business. GST is expected to bring in a lot of certainty on the indirect tax front and this will provide a boost to new investments, especially foreign investments in the Country.
GST Return Formats, Download GST Return Forms (GSTR Forms)
Last Updated 3rd June 2017 (03-06-2017)
Details of outwards supplies of goods or services
Details of auto drafted supplies of goods or services
Details of inward supplies of goods or services
Details of supplies auto drafted from GSTR-1 or GSTR-5 to recipient
Notice to return defaulter u/s 46
Quarterly return for registered persons opting composition levy
Auto drafted details for registered persons opting composition levy
Return for Non Resident Taxable Persons
Details of supplies of online information and database access or retrieval services by a person located outside India made to non-taxable persons in India
Return for input service distributors
Details of supplies auto drafted from GSTR-1 or GSTR-5 to ISD.
Return for Tax Deduction at Source
Tax Deduction at Source Certificate
Statement for Tax Collection at Source
GST Annual Return
Simplified Annual return by Compounding taxable persons registered under section 8
GST Reconciliation Statement
GST Final return
Inward supplies statement for persons having Unique Identification Number (UIN)
Application for enrolment as Tax return preparer
Enrolment certificate as Tax return preparer
Show cause to as Tax return preparer
Order of cancelling enrolment as Tax return preparer
List of Tax return preparers
Consent of taxable person to Tax return preparer
Withdrawal of authorization to tax return preparer
GST Audit Report
GST ITC Mismatch Report
Every registered person (other than a person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017) required to furnish the details of outward supplies of goods or services or both under section 37, shall furnish such details in FORM GSTR-1 electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner.
Refund of balance in the electronic cash ledger which is a concept similar to PLA account can be claimed by registered taxable person.
Refund to be claimed through the GSTR-3 – Monthly return to be filed by tax payer (Sl. No. 12 – Refunds claimed from cash ledger).
Refund of unutilized input tax credit shall be allowed only in two scenarios.
Refund of unutilized input tax credit shall be allowed only for Exports including Zero rated supplies (SEZ Supplies). The Ministry has confirmed that refund of 90% of the duties paid by exporters in the process of manufacturing items for export would be made within a period of seven days under the Goods and Services Tax (GST) regime on provisional basis. The remaining 10% refund will be made after verifications by tax authorities.
Credit accumulation due to inverted duty structure.
Supply of goods and/ or services to or by a SEZ developer or an SEZ unit, shall be deemed to be a supply of goods and/or services in the course of inter-State trade or commerce and would be Zero rated supplies.
However, probably as it exists today such upfront exemptions could be subjected to certain conditions only after fulfilling these conditions it is likely that the SEZs would enjoy the abinitio exemption else, they would have to opt for refund route
Where tax payer pays one tax for another
(a) CGST/SGST – Instead of IGST
(b) IGST – Instead of CGST/SGST
Refund to be claimed of the wrongly paid tax & the appropriate tax to be paid to the Government without interest
Casual taxable persons or Non-resident taxable persons are required to make an advance payment of estimated tax liability at time of registration application
Refund of tax, if any excess paid shall be allowed subjected to that the dealer must file all the returns.
Tax refund for international tourist scheme provide an opportunity to foreign tourist to buy goods manufactured during their stay in any country and claim refund of the tax suffered on such goods at the time of their exit from the country. In India, it is expected that the scheme will be implemented through the retailer registered for the purpose of this scheme.