GST is basically a consumption based tax that is levied on sales, manufacture and consumption of goods and services at a national level. This tax actually substitutes for all indirect tax levied by state and central government. GST stands for goods and services tax.
It is a very valid question that how GST can be calculated and most of the entrepreneurs wonder about the same! It is not a process that can be accomplished at one go. It takes time and most importantly has certain steps. If you are at Jamshedpur, Synesis will be the best stop to help you do the same. We are experts at assisting you with GST related issues.
Finding GST rate applicable for goods or service:
This is the very first step that is followed. We must first make a distinction between the types of supply under GST. If the supply is goods, then, HSN Code is applicable for this. If the transaction involves supply of a service, then the SAC code must be checked as that is allotted only for service. GST on services will have different calculation than that for goods.
Applicability of IGST or CGST and SGST:
Here comes the second step. Here, the place of supply has to be determined in order to calculate the applicability of IGST or CGST and SGST. If any supplier is involved in providing inter-state supply, GST registration is mandatory.
Determining whether GST is Chargeable on Reverse Charge Basis:
Generally in case of GST, the suppliers are liable to collect tax from the recipient and submit it to the government. However, the service is notified as reverse charge service where the receiver becomes liable to pay the tax.
Enrollment under GST composition scheme:
It is mandatory to determine if the supplier is enrolled under the GST composition scheme. Our team at Synesis, while completing GST registration process, for the ones whose aggregate turnover in the preceding financial year did not cross Rs.1 crore keeps all the record of who are being registered.
Type of transaction should be noted:
Different transactions especially between the business entrepreneurs and the buyers have different GST applied. So, it is very important to note what type of transaction is being made as per which the GST will be applied.
As the name says, GST is the quantification and segregation of tax on every good produced and every service rendered. This has become an important component of our daily life. The calculation of the same carries equal importance.