GST CALCULATOR

GST CALCULATOR

 

 

GST CALCULATOR

GST in India will bring about a change in the tax system by redistributing the burden of taxation equitably between manufacturing and services. GST CALCULATOR will enable broadening of the tax base, which will further result in reduction in effective rate of tax. It will reduce distortions by applying the destination principle for levy of taxes.

GST will be a game changing reform for the Indian economy by creating a common Indian market. There would be a direct impact on the taxation structure, tax computation respective payment, compliance and credit utilization, leading to a complete overhaul of the current indirect tax system.

The impact of this new indirect tax regime will be far reaching impacting the pricing of products, services, supply chain optimization, accounting, IT and compliance systems.

After the introduction of GST by Indian government in July 2017,  many software companies will find try and figure out how to calculate GST using their software according to the new changes. Interestingly Reach Accounting Software is designed with compliance with the new GST rule in India.

BASIC GUIDELINES FOR GST CALCULATOR

  • Proper record keeping is necessary for accurate tax declarations. Using accounting software helps greatly in record keeping and helps to calculate GST automatically. In addition, the use of accounting software generates other operational and financial information that are useful for management of the business.
  • With a proper accounting system in place to accurately calculate GST and produce accounting information for tax reporting purposes, businesses are less likely to make errors in their tax declarations. This would reduce compliance costs for businesses, as any tax reporting errors would result in penalties being imposed.
  • GST Authorities will conduct audit on businesses from time to time to ensure that businesses are making correct tax declarations. It is a common procedure for the Revenue authorities to request for certain accounting information as part of the audit. For businesses using manual records, the process of producing the records required by GST Authorities is usually time-consuming. Businesses using accounting software that is able to calculate GST automatically and generate the GAF as recommended in this guide would find it easier to meet GST Guidelines and this saves the businesses time and effort.

Reach comes with all the guidelines mentioned for GST guidelines

  1. Provides Issuance of GST tax invoice aswell as debit/credit note
  2. Provides reporting facility
  3. Provides comprehensive documents to assist Auditors
  4. Incorporates adequate internal control
  5. Restoration of archieved data
  6. Contains key data elements necessary for business

 

GST FILING

 

Filing GST return under the GST regime is crucial as non-compliance and delay will result in penalties and affect your compliance rating and timely refunds.

A return is a document containing details of income which a taxpayer is required to file with the tax administrative authorities. This is used by tax authorities to calculate tax liability.

Under GST, a registered dealer has to file GST returns that includes:

  • Purchases
  • Sales
  • Output GST (On sales)
  • Input tax credit (GST paid on purchases)

To file GST returns, GST compliant sales and purchase invoices are required.

In the GST regime, any regular business has to file three monthly returns and one annual return. This amounts to 37 returns in a year.

The beauty of the system is that one has to manually enter details of one monthly return – GSTR-1. The other two returns – GSTR 2 & 3 will get auto-populated by deriving information from GSTR-1 filed by you and your vendors.

There are separate returns required to be filed by special cases such as composition dealers.

 

What are the types of GST Returns?

Any regular business:

Return Form Particulars Interval Due Date
GSTR-1 Details of outward supplies of taxable goods and/or services effected Monthly 10th of the next month
GSTR-2 Details of inward supplies of taxable goods and/or services effected claiming input tax credit. Monthly 15th of the next month
GSTR-3 Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax. Monthly 20th of the next month
GSTR-9 Annual Return Annually 31st December of next financial year
GSTR-3B Provisional return for the months of July and August Monthly 20th of the next month

GSTR 3B is a simple return that businesses need to file in the first two months of GST (July and August, 2017). The government has postponed the filing of GSTR 1, 2 & 3 for July and August, 2017 in order to give businesses some time to adjust to GST.

Forms For July 2017 For August 2017
GSTR-3B 20th August 20th September
GSTR-1 1st-5th September 16th-20th September
GSTR-2 6th-10th September 21st– 25th September
GSTR-3 11th– 15thSeptember 26th– 30thSeptember

There is no buyer-seller reconciliation for July & August. There is no late fee or penalty levied for the months of July and August in the case of delayed return filing.

A dealer opting for composition scheme :

A composition dealer will enjoy the benefits of lesser returns & compliance along with payment of taxes at nominal rates. A composition dealer will file only 2 returns:

Return Form Particulars Interval Due Date
GSTR-4 Return for compounding taxable person Quarterly 18th of the month succeeding quarter
GSTR-9A Annual Return Monthly 31st December of next financial year

Returns to be filed by specific registered dealers:

Return Form Particulars Interval Due Date
GSTR-5 Return for Non-Resident foreign taxable person Monthly 20th of the next month
GSTR-6 Return for Input Service Distributor Monthly 13th of the next month
GSTR-7 Return for authorities deducting tax at source. Monthly 10th of the next month
GSTR-8 Details of supplies effected through e-commerce operator and the amount of tax collected Monthly 10th of the next month
GSTR-10 Final Return Once. When registration is cancelled or surrendered Within three months of the date of cancellation or date of cancellation order, whichever is later.
GSTR-11 Details of inward supplies to be furnished by a person having UIN and claiming refund Monthly 28th of the month following the month for which statement is filed

What is GSTR-3B?

GSTR-3B is a simple return form introduced by the CBEC for the month of July and August. You must file a separate GSTR-3B for each GSTIN you have. Do note that you do not have to provide invoice level information in this form. Only total values for each field have to be provided, this value must be for the month for which you are filing.

GSTR-1, GSTR-2 and GSTR-3 for the months of July and August will be filed later. For now GST registrants must file GSTR-3B.

Why is filing GSTR-3B important?

Filing GSTR-3B is mandatory for GST registrants.

Some portions of Part B of GSTR-3 will be automatically populated from GSTR-3B filed by you. If there is any discrepancy between the two you can correct your GSTR-3 later and deposit any taxes which are payable.

When is GSTR-3B due?

GSTR-3B for July 2017 is due on 20th August.

GSTR-3B for August 2017 is due on 20th September.

GSTR-3B is not applicable starting the month of September, regular returns in GSTR-1, GSTR-2 and GSTR-3 have to be filed from September.

How to file GSTR-3B?

You can file start filing GSTR-3B on Reach software now. Here are some of the ways in which this can be done

Prepare your sales and purchase invoices , with this minimal detail you can easily prepare your GSTR-3B.

Upload excel of your sales and purchases invoices on our software will prepare your GSTR-3B.

Upload excel report from any ERP you are using and our software will generate GSTR-3B for you.

Upload your summarized information  and be ready to file.

You can review GSTR-3B in detail once you have input the data. It can be filed at  the click of a button.

Who should file GSTR-3B?

Every person who has registered for GST must file the return GSTR-3B. This return form must be filed and submitted by you even if you do not have any transactions during the month of July and August.

 

CONCLUSION

Reach Accounting Software comes with all the things that are mentioned in the guidelines. To make it simpler, here is what Reach Accounting Software can do. As you record GST Invoices and Purchases, Reach captures the input and output taxes and calculates the dues correctly! You can produce your Form GST Returns in one click and also extract General Audit Format in XML format.

 

 

 

Hi, this is Karishma here, a commerce graduate with more than 10 years of work experience, the latest being a Global Financial Analyst with a Software company. My experience as an Analyst has driven me to write blogs for Reach
1 Comment
  1. Ishu 3 months ago

    I have submitted the data in GSTR 3B but I have some changes in it .there will be no options to change the data .please tell me what I can do for it

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