7 Major GST Myths Busted; Here Is How Indian Companies Are Faring On Day #3 Of GST Regime
GST regime is now live across India, and as expected, there are loads of confusion and myths related to the new tax structure across India.
Sensing the need and understanding the confusion ensuing all around, Revenue Secretary Hasmukh Adhia came out in the open and issued clarifications to clear all doubts.
Here are the 7 Mythbusters issued by the Govt.:
Myth #1: All invoices need to be generated by computer under GST
Reality Check: No, invoices can be generated manually as well, as long as GST is mentioned in it
Myth #2: The Internet is mandatory to conduct business under GST
Reality Check: The Internet is only required while filing monthly returns under GST.
Myth #3: Provincial ID and actual GST Id are different
Reality Check: Your provincial ID is your actual GST Number. No need for another ID
Myth #4: The product I deal with was earlier exempted, but not anymore. I need to re-register my business now before doing any business
Reality Check: No need to wait. You can do your business from day 1. But, within 30 days, you need to re-register.
Myth #5: I need to file 3 returns in a month
Reality Check: There is only one return, which is divided into three parts. The first part needs to be done by the business, and the other 2 parts are auto-populated by the system
Myth #6: Every small business needs to file invoice wise details in the returns
Reality Check: If you are into retail business for B2C, then filing total summary of sales is enough
Myth #7: New GST rates are much higher now
Reality Check: The new GST tax ‘seems’ higher now, because excise duty and other invisible taxes are now visible.
Besides, Revenue Secretary urged people not to spread misinformation. He said, “Nothing to worry about GST implementation, don’t need big IT infrastructure. Even B2B don’t need big software. We will give free software.”
GST Updates On Day 3 Of GST Regime
Smartphones: Leading smartphone manufacturers such as Samsung, Xiaomi, Oppo, Gionee, Intex & Lava has assured all that they won’t increase prices under GST regime. Some of them have even said that they will absorb the extra cost of implementing GST.
On the other hand, Apple has decided to reduce prices of their iPhones and iPads under GST. Around 3-7k price reduction have been announced for various models.
Automobile, Bikes: Maruti, JLP, BMW, Toyota & Hero MotoCorp have decided to announce reduced prices for their cars. While Toyota reduced the prices by 13%, Hero has slashed prices of their bikes by Rs 400 to Rs 4000. Maruti has decided to reduce the price by 3% on some models.
FMCG: HUL, makers of Wheel, Rin, Surf Excel, Comfort, Sunlight, Vim, Domex and other products have announced the reduction of prices for some of their products, mainly soaps and detergents. Meanwhile, stock prices of FMCG companies have risen by 3% to 7% during early morning trades on Monday.
Sports: Ticket prices of popular sporting events such as IPL, would become costlier, as the tax slab has been moved from 15 to 18%
We will keep you updated as we receive more updates related with GST.