GST (Goods and Services) Tax also known as ‘”Good and Simple Tax” as termed by Prime Minister Narendra Modi is not proving to be simple enough for traders all across the country. In such situation Revenue Secretary in the Ministry of Finance, Hasmukh Adhia decided to take on Twitter to resolve some of the common confusions prevailing in the country related to GST.
Here are the ‘myths’ and ‘realities’ explained by Mr Adhia
Myth 1: You need to generate all invoices on computer/internet also
Reality 1: Invoices can be generated manually also
Myth 2: The Internet is a must to do business under GST
Reality 2: The Internet is needed only once a month while filing monthly return of GST
Myth 3: Someone has provisional ID but waiting for final ID to do business
Reality 3: Provisional ID can be the final GSTIN number and you can start your business
Myth 4: The item of trade was earlier exempt so I will immediately need new registration before starting business now
Reality 4: You can continue doing business and get registered within 30 days
Myth 5: There are 3 returns per month to be filed
Reality 5: There is only 1 return with 3 parts, out of which first part filed by the dealer and two other parts auto-populated by computer.
Myth 6: Even smaller dealers will have to file invoice wise details in the return
Reality 6: Those in retail business (B2C) need to file only the summary of total sales
Myth 7: New GST rate is higher compared to earlier VAT
Reality 7: It appears so because excise duty and other taxes which were invisible in GST and so visible now.
This clarification can surely help businessmen to understand GST better.