GST Certification in Mumbai by ClearTax (Complete Updated Information)
The advent of the Goods and Services Tax has revolutionized the Indian tax structure. The concept of GST has done away with numerous tedious taxes in the past and introduced a single, easy, all-inclusive indirect tax. However, the implementation of GST has also given rise to a need for its proper understanding by people. This is where the GST Course has come into play.
The Bangalore-based company, ClearTax, has emerged as one of the most popular courses on GST certification in Mumbai. Let us dive deep into what the GST certification in Mumbai by ClearTax is all about.
First, we will start with a brief overview of the Goods and Services Tax and its journey in India’s timeline.
GST and its Brief History
GST stands for Goods and Services Tax and is a replacement of other indirect taxes in India like Excise Duty, VAT, services tax, etc. On 29th March 2017, the Indian Government passed the GST Act in Parliament. It came into operation on 1st July 2017.
GST is an all-inclusive, multilevel, destination-based tax imposed on the supply of goods and services. In other words, GST is one indirect tax law that applies to the whole country.
The GST law entails that a tax is charged whenever a sale happens. Central GST and State GST are implied to intra-state sales whereas Integrated GST is chargeable on the Interstate sales.
The journey of GST in India had started in the year 2000 with Prime Minister Vajpayee organizing a committee for the GST law. The conclusion of the committee about the necessity of GST to enhance the ongoing tax structure in 2004 led to the introduction of GST from 1st April 2010. A Constitution Amendment Bill was then implemented in 2011 in the Parliament that sanctioned the GST law. After a lot of discussion and amendments, the President gave assent to the GST law in 2016 and it was passed in both the Lok Sabha and Rajya Sabha. Final Goods and Services Tax came into action on July 1, 2017.
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Advantages of the Goods and Services Tax
The main advantage of GST is the elimination of the cascading effect that was prevalent in the sale of products and services. This has automatically led to a reduction in the prices of goods.
All the necessary procedures like registration, filing of returns, etc. can be done online on the GST portal. This speeds up the processes.
Other advantages include reduced compliances under GST, defined e-commerce activities, improved logistics efficiency, and regulation of unorganized sectors.
What are the main components of the Goods and Services Tax?
Three taxes have been included under GST:
- CGST: The tax levied within the state by the Central Government is called CGST.
- SGST: The tax levied within the state by the State Government is called SGST.
- IGST: The tax levied between states by the Central Government is called IGST.
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Taxes before GST
There were too many indirect taxes collected by the Central and State governments before GST. Value Added Tax or VAT was collected by the State Government. All states followed a defined set of rules and regulations.
The Centre imposed taxes on the sale of goods between states. The Centre and State together imposed indirect taxes like entertainment taxes, octroi, and local tax. As a result, it caused overlapping of taxes.
For example, the Centre charged the excise duty on the manufacture of goods and their sale. Besides the excise duty, the state also imposed a Value Added Tax. This caused a cascading effect of taxes or a tax on tax effect.
The following taxes were applicable before the GST:
- Central Excise Duty
- Excise Duty
- Additional Excise duties
- Additional Customs Duties
- Special Additional Customs Duties
- State VAT
- Central Sales Tax
- Purchase Tax
- Luxury Tax
- Entertainment Tax
- Entry Tax
- Taxes on commercials
- Taxes on lotteries, bets, and gambles
All the taxes mentioned above have now been replaced by CGST, SGST, and IGST.
Some advantages of a GST certification course are:
- An individual after taking a GST certification course can expect an average salary hike of 15% to 25%.
- After the implementation of GST, over one lakh job vacancies were created in the fields of tax, accounts, and data analysis. Various big and small businesses need professional help in their GST management.
- Individuals are enabled to begin their own consultancy business.
- Tax, finance, and accounting professionals get to upskill themselves.
- The organized course structure helps in better learning.
The main objectives of a GST certification are:
- A general understanding of GST and its execution, observance, and fulfilment.
- An overall insight into how GST can influence the organizational working and the changes needed in the business process to conform to the new GST law.
- Being up-to-date with various procedures under GST like registration, returns filing, obtaining Input Tax Credit, TDS (Tax Deduction at Source), and refunds.
Who can benefit from the GST Certification Course?
The GST certification will benefit the following people:
- Arts/Commerce/ Engineering graduates, Chartered Accountants, Company Secretaries, and Law aspirants
- People who wish to switch from the finance domain to the tax domain
- People looking for opportunities in the field of taxation
- Professionals in finance who want to expand their knowledge about taxes
Knowledge gained from a GST certification course can be applied to the following areas:
- Supply chain management and optimization
- Income Tax
- Tax observance
All the above fields are influenced by the Goods and Services Tax.
An Overview of ClearTax
ClearTax is a finance-technology company based out of Bangalore that came into existence in 2011.
ClearTax was started by three friends named Archit Gupta, Srivatsan Chari, and Ankit Solanki. The company has the privilege of being India’s biggest platform for tax filing. Over 20 lakh returns have been filed from ClearTax. They started by decoding Income Tax filing for the common Indian and have now emerged as experts in the field.
GST Certification in Mumbai by ClearTax
If you are looking for a course on GST certification in Mumbai, ClearTax is one place you can start from. They provide the course in online mode at an affordable price of Rs. 4800.
Some features of the GST certification in Mumbai by ClearTax are as follows:
- More than 8 hours of extensive learning
- Step-by-step transition plan to new GST
- Lectures are given by top industry experts
- Exclusive ClearTax certification
Course Overview of GST Certification in Mumbai by ClearTax
- Detailed introduction of the basics of New GST Returns
- Proper filing process under RET-1/2/3
- Extensive analysis of ANX-1/2
- Transition plan from ongoing returns to new returns
- Case studies presented by expert CAs
What can you expect from the GST certification in Mumbai by ClearTax?
If you are a CA or a tax practitioner, you can learn the following things from the GST certification in Mumbai by ClearTax:
- Education for you and your team about GST
- Seamless transition of clients from old to new GST
- Training for your clients regarding matching, tracking of invoices, and ITC reversals
- In-depth understanding of penalties and ways to evade them
If you are a company executive, you can learn the following things from the GST certification in Mumbai by ClearTax:
- Lowering risks in business and knowing about unlocking ITC
- Management of man-hours needed for tracking of invoices and matching
- Education of the high-risk vendors about the concept of GST
- The function of payments, attainment, and tax teams in compliance
If you are a student, you can learn the following things from the GST certification in Mumbai by ClearTax:
- Understanding and application of various concepts of GST
- Getting a GST certification that is recognized in the industry
- Getting hired for new GST transition projects
- Growth of your practice in the field of GST
The course on GST certification in Mumbai by ClearTax covers the following topics of GST:
E-Way Bill under GST
The e-way bill is a document valid across the nation needed for the movement of goods. It is generated at the e-way bill portal of the government. The e-way bill was first implemented on 1st April 2018 allowing the transport of goods between states. Afterwards, the movement of goods within the states was also introduced under the system. In the case of a person registered with GST with the price of goods consignment exceeding Rs. 50,000, the e-way bill becomes compulsory. A specific E-way Bill Number or EBN is designated to the supplier, transporter, and recipient.
New GST Returns
To simplify the filing procedure under GST, the Indian government initiated the new GST returns for the regular taxpayer. It came into action from October 2020 and replaced GSTR-1, GSTR-2A, and GSTR-3B returns. It is a single return to simplify the filing process by taxpayers registered with GST using automation. There will be the main return that is GST RET – 1/2/3 and two annexures: GST ANX-1 and GST ANX-2. Monthly returns must be filed, barring the case of taxpayers making a yearly turnover of up to Rs. 5 Crore. Then they can choose to file the returns every quarter.
With the introduction of GST on 1st July 2017, all the indirect taxes like VAT, service tax, and excise duty were replaced. Companies filed under VAT and service tax relocated to GST according to the enrolment plan laid out by the state governments. GST applies to a business if it has a yearly turnover of over a particular threshold level. This threshold level differs from state to state and also between a goods supplier and a services supplier.
Documents needed for GST registration are the PAN card of the applicant, the Aadhaar Card, business registration proof, address proof of the business place, bank account statement, digital signature, and letter of authorization.
An electronic method of invoicing for B2B transactions produced by suppliers registered with GST has been introduced by the government. It started on 1st October 2020 and applies to businesses making a yearly turnover of over Rs. 100 Crores. It consists of online verification of invoices in real-time on the allotted invoice registration portals. It is then followed by the generation of the respective reference numbers for each invoice. The verified invoices bearing a response code are then sent to the suppliers by the GSTN.
Every purchase or sale generates an invoice. Every invoice consists of the following particulars: serial number, product details (like name of the product, its description, and quantity), supplier and receiver details, chargeable taxes, applied discounts if any, terms of sale, etc. According to the GST law, all big and small businesses must generate a GST invoice. The businesses can also use other important documents like delivery challans, debit/credit notes, supply bills, vouchers of receipt and refunds, etc. required for various situations.
Businesses can personalize their GST invoice by adding their logo. One can make generate and personalize their GST invoice for free through ClearTax’s BillBook.
There is also a provision for revising invoices that were issued previous to the Goods and Services Tax. As per the GST, all dealers must apply for registration.
It should be noted that for goods, three copies of invoices should be generated whereas, for services, two copies are enough.
A document filed by a taxpayer with the tax administrative authorities according to the law is a return. A regular taxpayer is needed to produce two returns under the GST law: a monthly return in Form GSTR-1 and Form GSTR-3B and a yearly one in Form GSTR-9. An auto-populated return called GSTR-2A consists of the details of the input tax credit. CA/CMA certifies Form GSTR-9C which is a yearly reconciliation statement for some taxpayers following the GST audit.
Almost all basics of GST returns such as Registration, Composition Scheme, Input Tax Credit, Reverse Charge Mechanisms, place, time and value of supply, and assessment procedures are covered in the course for GST certification in Mumbai by ClearTax.
Payments and Returns
There are different laws and provisions associated with the balance of tax credits as opposed to liabilities, payments, refunds, and settlements of the GST. Payments and refunds are done online by electronic ledgers. These ledgers are listed on the Goods and Services Tax portal.
Input Tax Credit
The amount of tax on sales that one can decrease during paying tax on purchases is known as the Input Tax Credit. The smooth flow of input credit through the chain (from the time of manufacture of goods to its consumption) and the country is one of the basic features of the Goods and Services Tax.
Under the GST law, businesses can claim input credit on the taxes applied to the sales. One can decrease the tax applied on inputs at the instant of paying taxes on the output. This implies that one is eligible to assert input credit for tax paid on sales.
The composition scheme is a basic and simple scheme for taxpayers as per the GST. The GST composition scheme allows small taxpayers to pay GST at a set rate of turnover, thus avoiding the tiresome formalities of GST.
Taxpayers with a yearly turnover exceeding Rs. 1.5 Crore are offered a composition scheme for the supply of goods. If the annual turnover does not exceed Rs. 50 Lakh, service providers are allowed to choose the scheme as per the special notification of FY 2019-20. As per the scheme, the taxpayer is not required to keep all records under the Goods and Services Tax. And he has to pay the tax at the defined rate on the total monthly turnover.
According to the GST certification in Mumbai by ClearTax, the following people are not eligible for the composition scheme under GST:
- Ice-cream, Paan masala, or tobacco manufacturers
- Inter-state suppliers
- Businesses using e-commerce
To be eligible for the composition scheme, the following conditions should be met:
- The dealer availing of the composition scheme can claim no input tax credit.
- Goods that are not taxable as per the GST cannot be supplied by the dealer.
- For transactions under the Reverse Charge Mechanism, the taxpayer must pay taxes at normal rates.
- For taxpayers owning various business segments under the same Permanent Account Number (PAN), all the businesses must be registered together under the composition scheme or they must opt-out.
- The words ‘composition taxable person’ must be mentioned by a taxpayer on every signboard of their business as well as every issued supply bill.
A taxpayer can avail of the composition scheme online by logging into the GST portal and then filing the GST CMP-02 with the government. A dealer interested in availing of the composition scheme must do this at the start of the financial year.
As a composition dealer cannot demand tax from his customers, he cannot publish a tax invoice. He needs to pay the tax using his own money. Therefore, a dealer must generate a supply bill. “Composition taxable person, not eligible to collect tax from supplies” should be mentioned on the supply bill.
A composition dealer’s GST payment consists of the following:
- GST on supplies
- Reverse charge tax
- Tax on a purchase made from an unregistered dealer
Some advantages of the Composition Scheme as mentioned in the course of GST certification in Mumbai by ClearTax are the following:
- Reduced compliance (returns, maintenance of record books, the publication of invoices)
- Restricted tax liability
- Lower rate of taxes resulting in increased liquidity
Likewise, some disadvantages of the composition scheme are as follows:
- Restricted business territory. A dealer is not allowed to have inter-state transactions.
- Non-availability of the input tax credit for composition dealers.
- The taxpayer is barred from supplying non-taxable goods under GST like alcohol or goods through e-commerce businesses.
The Goods and Services Tax was introduced to make the tax structure more efficient, reduce the rate of corruption, allowing easy and hassle-free transport of goods between states among others.
The GST law helps in self-evaluation for enabling easy compliance and tax payment. It describes the notices and the demand and recovery facilities in case of unpaid taxes.
The GST procedures can be broadly classified into:
- Demand and Recovery
- Advance Ruling
Audits as per the GST are the evaluation of records that a registered dealer maintains. The goal is to check the correctness of the declared information and pay taxes.
The tax liability deduction as per the GST is known as assessment.
Demand and Recovery
In case of incorrect payment of tax or non-payment by a registered dealer, demand and recovery facilities are relevant. It can also be applied in case of incorrect refunds.
Advance Ruling means soliciting clarifications from the GST authority on tax matters before the start of the proposed activity. This avoids costly litigation.
Different procedures are specified as per the GST law that deals with filing of statements and forms, advance ruling, audits, etc. One is supposed to pay the Goods and Services Tax through self-evaluation.
Penalties and Appeals
It is advisable to steer clear from penalties and prosecution as per the Goods and Services Tax law. Different penalties can be charged in case of specific offences under GST. One should have the specified documents while moving goods in the event of being checked and examined.
The GST certification in Mumbai by ClearTax gives you a thorough understanding of these penalties and appeals
GST Software by ClearTax
ClearTax claims to have the country’s most trustworthy GST software. Taxpayers can experience smooth and consistent billing and return filing under GST. Simplified reconciliation of incorrectly matched invoices and automatic validation of data are bonuses.
In other words, it is an all-rounded GST software for all your tax requirements.
Some features of the GST software are:
- 2A data reports for multiple months through a single click
- Easy Matching
- Unified GST solution
- Guaranteed data security
- ClearTax Desktop App that avoids OTP hassles
- The assistance of the support team for answering queries
We hope we have provided you with everything you wanted to know about the GST Certification in Mumbai by ClearTax.