Myth-busters of GST

Goods and service tax (GST) is an indirect tax structure

designed to improve and advance economic growth. The
purpose of introducing GST was to bring transparency in tax
filing and further improve the economy. There are four kinds
of taxes under the GST, named SGST, CGST, IGST, and
UGST. After the implementation of GST prices are inflated
rates which are supposed to come down after a uniform rate is
applied. As soon as GST was implemented many myths about
GST surfaced, so here are some Myth-busters of GST.

Myth: GST brings one nation one tax and will cover all other
taxes related to goods and services.
Reality: GST is only meant to replace indirect taxes on goods
and services, custom duty, and import duty will remain the
same.
i.e, petroleum and other petrol products prices still vary in
different states of the country because of variation in import
duty prices across the country.

Myth: Utility bills paid by credit cards has to pay GST twice.
Reality: GST has to be paid only once even if payment is
done by cards or cash. The confusion arose because GST is
applicable on service charges applied by the card companies.

Myth: Invoices are to be generated through the internet only.

Reality: Invoices can be generated manually also, only while
filing monthly returns one requires internet connectivity and
the whole procedure is simple and efficient.

Myth: There is a requirement of ID other than provisional ID

to do business.
Reality: Provisional ID is the final id and it is the final
GSTIN number required to do business.

Myth: Small business dealers also need to fill invoice related

details for returns.
Reality: Retails businesses that are b2c businesses only
require to send total sales reports.

Myth: VAT prices were lower than GST

Reality: the prices may seem high due to GST but it is
because other taxes are visible now like central and state
excise, purchase tax which is now reflecting in the bill making
the prices look higher. if one adds up all the taxes
implemented earlier the price would have been more for most
of the items earlier.

Myth: GST enhances economic growth

Reality: Economic growth depends on various factors and
sectors like organized and unorganized sectors, GST reduces
tax evasion which will shift unorganized sector businesses
into the organized sector thus contributing and increasing
economic growth recording as GST filing of every invoice
details.

Myth: One has to file 3 returns per month

Reality: One only has to file 1 return per month it has been
divided into 3 parts and the dealer has to file the 1st part, the
other two parts can be auto-populated by the computer.

Myth: composition scheme for small businessman having

turnover below 1.5 crores for easy compliance
Reality: composition scheme is a scheme under GST for
small businesses having a turnover of fewer than 1.5 crores to
pay GST at a fixed turnover rate if a person makes even a
single supply to a different state he will be out of the
composition scheme and composition scheme is only
applicable for businesses of goods and not for service
businesses.

After 3 years of implementation of GST, there are still pros

and cons of GST and the government is trying to implement
GST smoothly but they can surely take cues from global
economies who have been successful at doing this, to know
more about GST and to get updates related to the same stay
tuned with Accounting Guru.