IT Filing Due Date 2023

ABOUT GST PAYMENTS

Under the Goods and Services Tax (GST) system, tax payments are paid  by businesses at various stages of supply chain. GST is an indirect tax that is levied on  supply of  services and goods, and  is designed to be a value-added tax, which is applied to the value added at each stage of p distribution or production. overview on tax payments under GST:

1. GST Registration:

   – Businesses that meets certain turnover thresholds has to register for GST. Once registered, they are assigned  with a unique GSTIN 

2. Collection of GST:

   – Businesses which are registered under GST are responsible for collecting of GST on the taxable supplies they manufacture to their customers. This GST collected is called as the Output GST.

3. Input Tax Credit (ITC):

   – Businesses are  allowed to claim credit for  GST they have paid on their  expenses and purchases. This is called as Input Tax Credit (ITC). ITC can be claimed for the GST paid on inputs ( goods, raw materials and services) used in the business.

4. GST Returns:

   – Registered businesses  required to filethe  regular GST returns, which include details of their purchases and sales. 

5. Calculation of GST Liability:

   –  GST liability of any  business is calculated based on  GST collected (on sales )Output GST minus the GST paid on purchases and expenses (ITC). If the Output GST is more than the ITC, the business  required to pay the obtained difference to the government.

6. Payment of GST:

   – Businesses are required to pay GST liability to government electronically through the GST portal provided. Payment can also be made  by using various modes of payment like online banking, credit cards or debit cards, or through authorized banks.

7. Due Dates for Payment:

   – Due date for GST payment depends on  type of taxpayer and the turnover. 

8. Late Payment Penalties:

   – Late payments towards GST may result in penalties and interest charges. It’s  always important for businesses to ensure  accurate and timely  GST payments to avoid these additional fines.

 

9. Adjustment of Tax Liability:

   – In case of any errors in GST returns, businesses can make adjustments in the subsequent returns through the process of  revision or amendment.

10. Refund of Excess GST:

    – If any business has to  pay  more GST than it has collected , then you may be eligible for  refund. This refund process typically involves in filing an application with tax authorities.

11. Annual GST Return:

    – In addition to the regular GST returns, businesses are required to file an annual GST return that will consolidates their financial information for the entire financial year.

It’s crucial for  any businesses to maintain accurate records of their purchases and sales ,calculate their GST liability correctly, and file GST returns on time to ensure compliance with GST regulations. Non-compliance with GST rules can also result in penalties and legal consequences. To avoid difficulty many businesses  seek professional assistance to manage their GST obligations efficiently.

 

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