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GST FACTS: Myth or Reality

By Finance Advisory, 3rd Eye Advisory®
GST FACTS: Myth or Reality

  1. Filing Returns (Businesses):

    Myth:
    There are three returns that need to be filed per month.

    Reality:
    There is only one return with three parts, out of which first part has to be filed by the dealer and two other parts will be auto-populated by the computer.
  2. Electronic transactions:

    Myth:
    All invoices must be computer/internet generated only.

    Reality:
    Invoices can also be manually generated.
  3. Increase in tax rate

    Myth:
    The new GST rate is higher than the VAT, which was being used earlier.

    Reality:
    It only appears higher because excise duty and other taxes which were undetectable earlier, are now encompassed in GST and so are detectable now.
  4. Permits for business:

    Myth:
    A retail businessman having provisional ID will have to wait for final ID to do business

    Reality:
    Provisional ID will be the final GSTIN number.
  5. Convenience in doing business:

    Myth:
    For an item of trade, that was earlier exempt, the retailer will need new registration before starting a business now.

    Reality:
    You can continue doing the business and get registered within 30 days.
  6. Payment of utility bills by card:

    Myth:
    If a person pays utility bills by credit cards, he will be paying GST twice.

    Reality:
    Incorrect. GST is only levied once, regardless of the payment being made by cash or card.
  7. Small-scale businesses:

    Myth:
    Even the small dealers will have to file invoice wise details in the GST return.

    Reality:
    Those in retail business (B2C) have to file only the summary of total sales.
  8. Internet connectivity:

    Myth:
    A retailer needs internet continuously to do business under GST

    Reality:
    Internet would be needed only during the filing the monthly return of GST.

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Article by: Finance Advisory, 3rd Eye Advisory®