Reduce your GST Liabilities by taking the benefit of GST paid on input goods or services

As we all know GST is a business reform and the major purpose of bringing GST is to stop bogus billing and fake invoice which result s in revenue loss,so government has made it fully affords to clarify the provision of input tax credit. In the GST law ‘input’ has been defined in layman language which means ‘which is not capital goods’, so any input tax which is used for the purpose of business can be claimed as input tax credit.

You will have to remember the provisions on which you cannot claim the benefit of input tax credit which has been mentioned as follow:

1. You cannot avail benefit of GST paid by you on MOTOR VEHICLE but in following businesses you can avail benefit as ITC                                                                                                                                                                  a. further supply of such vehicle or conveyances                                          b. Transportation of passengers/goods                                                        c. Imparting training on driving, flying
2. GST paid on PERSONAL USE of foods , beauty treatment, health
3. Membership of club fees
4. Renting a cab (fare paid to driver of OLA or UBER driver)
5. Life insurance (GST includes on premium paid)

The above mentioned expenses are of personal use that’s why government has not allow the benefit of ITC on such expenses.

6. When you purchased goods from a dealer who has opted for composition scheme
7. When goods are STOLEN/DESTROYED/distributed as a FREE SAMPLES

Input Credit on CAPITAL GOODS:- One of the major benefit that government has given to the tax payer the you can avail the input benefit of GST paid in ONE YEAR. As present laws provides for 2 years.

Now a question arises in mind, what is capital goods?? The definition of capital goods is very simple and easy to understand. We have broken the definition in very simple way which is as follow

• Value of capital goods is capitalized in books of accounts
• It is used or intended to be used for business

First point clarify that if you capitalized in books of account as a capital assets not as an input, and second point says it used for business purpose not for personal use.

Important point to be note:

1. If depreciation claimed on depreciation part then GST paid on capital goods cannot be claimed.

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What Is GST Call 9971627975 To Get Your Gst Registration

The Prime Minister approved “ The constitution change bill for product and repair Tax ”(GST) within the Parliament Session (Rajya Sabha on three August 2016 and Lok Sabha on eight August 2016) together with the confirmation by fifty p.c of state legislatures. so this indirect taxes levied by state and centre  already to get replaced with projected implementation of GST by Gregorian calendar month 2017. This may be the most important tax reform since independence and a boon to the economy because it can eradicate the shortcomings of this tax structure offer one tax on supply of all product and services.
 

What Is GST ?

• Eliminating cascading effect of taxes
• Tax rates will be comparatively lower as the tax base will widen
• Seamless flow of Input tax credit
• Prices of the goods and services will fall
• Efficient supply change management
• Promote shit from unorganised sector to organised sector

Who all need to get GST registration?

A business entity that's presently registered beneath any of the present tax regimes then it's mandatorily needed to migrate beneath GST law no matter the brink limits.The following central and state level tax regimes can finish with introduction of products and repair Tax (GST) .

• Central Excise duty
• Service Tax
• State VAT
• Central Sales Tax
• Entry Tax (all forms)
• Luxury Tax
• Entertainment and Amusement Tax (except when levied by the local bodies)
• Purchase Tax
• State Surcharges and Cesses so far as they relate to supply of goods and services
• Taxes on lotteries, betting and gambling

 But if you are supplying goods and services and not registered under any existing tax legislative then you are liable to register only if the aggregate turnover in any financial year exceeds the threshold limit ,content source :-legalraasta.com

ABOUT AUTHOR :-   set my biz Is an Indian business company registration service provider company located in faridabad , provide Gst registration , llp registration , import export code registration 

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