India is moving forward toward radical digitization. Spice Digital believes itself to be one of the front league players in participating in this digitization movement. With Goods and Service tax in its implementation phase, Spice is now one of the selected GST Suvidha Providers by GSTN.
Spice GSP will soon provide comprehensive tax related services to business taxpayers. Spice GSP is all set to offer seamless integration to ASPs, Corporates, MSME, TRPs with the GSTN network to enable the businesses to be compliant with the Goods and Services Tax (GST).
So what exactly is GST?
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the central and state governments. Amalgamating several Central and State taxes into a single tax GST has been implemented to mitigate cascading or double taxation, facilitating a common national market. For example, when you go to a restaurant, VAT will not be charged separately, along with service tax. A single tax amount will be charged on the billed amount, which is GST.
Since the GST is expected to be levied at every stage of the production system. The discrepancy is expected to be eliminated by giving the benefit of Input Tax Credit (ITC) of the tax remitted at previous stages. Currently all the taxpayers are liable to get registered under the GST regime.
TAXES COVERED UNDER GST
The implementation of GST will subsume the following taxes –
- Central Excise
- Service Tax
- CVD or Countervailing Duty under customs
- SAD or Special Additional Duty under Customs
- VAT / Sales Tax
- Octroi & Entry Tax and
- Purchase Tax
The taxes that would be applicable over and above GST would be the Customs duty. There is no clarity as of now over the inclusion of Auto Cess, NCCD and the Infrastructure Cess.
What are the compliance requirements for GST?
On more macro note, GST compliance for any sort of business owners has been set, that is where a business needs a GST Suvidha provider. A detailed list of requirements for GST compliance has been released by GSTN (Goods and Service Tax Network) for all eligible tax-payers:
The taxpayer under GST Regime will have to provide following information at regular intervals:
- Invoice data upload (B2B and large value B2C)
- Upload GSTR-1 (return containing supply data) which will be created based on invoice data and some other data provided by the taxpayer.
- Download data on inward supplies (receipts or purchase) in the form of Draft GSTR-2 from GST Portal created by the Portal based on GSTR-1 filed by corresponding suppliers.
- Do matching of purchases made and that downloaded from GST portal. Finalize the same based on his own purchase (inward supply data) and upload GSTR-2
- File GSTR-3 created by GST Portal based on GSTR-1 and 2 and other info and tax paid.
- Similarly there are other returns for other categories of taxpayers like casual taxpayer or composition taxpayers.
How does the GST Eco-System work?
The GSTN is going to have a G2B portal for taxpayers to access the GST Systems. This will not be the only way for taxpayers to interact with the GST system. Taxpayers can also choose their preferred and authorized third party applications. These will provide interfaces and convenience via desktop, mobile, other interfaces, enabling to interact with the GST system. The third party applications will connect with GST system via secure GST System APIs. All such applications are expected to be developed by Authorized GSPs such as Spice GSP.
Spice GSPs is committed to provide convenient methods to taxpayers and other stakeholders in interacting with the GST Systems from registration of entity to uploading of invoice details to filing of returns. There will be two sets of interactions, one between the App user and the GSP and the second between the GSP and the GST System. It is envisaged that App provider and GSP could be the same entity. Another version could where data in required format directly goes to GSP-GST Server.
It is quite understood that there are different variants and forms of businesses; hence there will be diverse taxpaying requirements. Thus it is the GSP who will come to rescue to provide custom solutions for different kinds of businesses and enterprises.
The flowchart pasted above will help to understand the process in an ideal situation, on how the GSP functions in the system.
Know more about Spice GSP at https://spicegsp.com//
For enquiry, mail us at firstname.lastname@example.org