2020 GST Guidelines For Running Modern Businesses In India
Implementing GST was one of the largest initiatives of the Indian Government- replacing all other direct and indirect taxes across the nation. 2020 GST Guidelines consists of several updates that have streamlined the taxation process. Students are now constantly looking for a placement supported course in GST to skyrocket their career in 2020.
The alterations in GST made it simple for taxpayers and companies to pay their taxes. Similarly, many such amendments and provisions were put into actions to make tax administration hassle-free. Here are the latest GST Guideline updates for your reference.
Goods and Services Tax (GST) in India
Indian Government levied Goods and Services Tax (GST) for generating optimum revenue from all goods and services in the country. GST was introduced in 2017 which helped in replacing all the other taxes for example:
- Value Added Tax (VAT)
- Central Excise Duty
- Service Tax
- Additional Custom Duty
- State Level Value Added Tax
Government charges GST on slabs. In 2020, the different GST slabs are:
5%, 12%, 18%, and 28%.
The Goods and Services Tax Council manages and regulates GST since its enactment in 2017. GST is applicable for all goods and services except
- petroleum products
- alcoholic drinks
- food/drink merchandise (selective)
GST is divided into 2 parts
- State Goods and Services Tax (SGST) – this is controlled by the state governments and
- Central Goods and Services Tax (CGST)- this is collected and regulated by the central government.
Both state and central governments have equal shares of GST.
Example: If a product is levied with 10% GST, the State collected GST will be 5% and the Centra; collected GST will be 5%. Besides these, there is Integrated Goods and Services Tax (IGST) which is charged on goods and services for inter-state products/services.
Importance of 2020 GST Guidelines
- GST helps in collecting multiple taxes, eliminates the cascading effect of taxes and regulates the entire forte of indirect taxes.
- Extra taxes are refunded to the individuals or organizations under GST
- GST is a destination-based tax. GST is collected by the state and the central government where goods/services are expended without basing it on the state of origin.
Post GST implementation, students are learners are taking a special interest in pursuing a GST Business course. It prepares them with the latest GST updates, the importance of taxation in accounting, and managing the financial standards of a company.
2020 Month-Wise GST Updates
January GST announcements
- On January 10th, the date of filing one-time GSTR 1 form (for amnesty scheme) was extended till 17th January 2020.
- Tax amnesty is a one-time opportunity for a specific group of taxpayers who are to pay a definite amount of penalty for tax liability to prevent prosecution. This liability includes tax interest and penalties concerning a previous tax.
February GST announcements
- The last date for filing yearly tax returns and reconciliation through GSTR Form 9 and 9C was extended between 5th and 7th February.
- This date reformation is applicable for the states of Haryana, Chandigarh, Delhi, Ladakh, Punjab, Gujrat, Rajasthan, Jammu & Kashmir, Uttarakhand, Andhra Pradesh, Arunachal Pradesh, Himachal Pradesh, Bihar, Assam, Andaman & Nicobar Islands, West Bengal, Odisha, Pondicherry, Mizoram, Meghalaya, Sikkim, Dadra, Goa, Daman, Diu, Uttar Pradesh, Nagaland, Maharashtra, Lakshadweep, Jharkhand, Madhya Pradesh, Tamil Nadu and other territories.
- February GST updates extended the last date of filling and submitting TRAN-01 to 31st March (TRAN 01 includes carrying forward the transitional credit).
March GST announcements
- The Union Financial Minister provided some flexibility for businesses to deal with the pandemic time of COVID-19.
- The last date for filing GSTR 1 and GSTR 3B was extended from March to June last week.
- Business taxpayers with yearly revenue of fewer than five crores do not have to pay late fee, taxes, or penalty during GST filing.
- Taxpayers with more than five crore turnovers will pay a 9% rate of interest within fifteen days from the initial due date of GST payment.
- CMP 02, CMP 08 & GSTR 4 filing date is extended up to 30th June 2020.
- All GST payments that are scheduled between March to April is extended up to 30th June.
- The last date for availing Sabka Vishwas Scheme is extended till June 30th.
- Last date for filing GSTR 1 and GST 3B is extended from April to September.
April GST announcements
- The Finance Ministry announced that the pending amount, GST, and custom refunds are to be immediately disbursed.
- This modification helped in bettering the business functioning for over fourteen lakh taxpayers. The government received a total refund of more than eighteen thousand crores against such announcements.
- The new 2020 GST guidelines made it extremely beneficial for the governments, taxpayers, and businesses to run smoothly during and after COVID 19 pandemic.
May GST announcements
- May GST update includes registration facility of IRP and RPs on the official GST Portal
- Special reimbursement and drawback disposal initiative to benefit Exporters and MSMEs during/after COVID19.
- Refund of Rs. 6.76 lakh was claimed during the announcement which amounted to more than 8000 crores.
- Section 128 of Finance Act came to action during May GST announcements.
- The filing date for STR 9 annual and GSTR 9C settlement form is extended till 30th September.
- The validity for the e-way bill which expired on 20th March was extended till 31st May.
- Companies can now file for GSTR 3B form between 21st April and 30th June.
June GST announcements
- CBIC revised and extended the due date of filing GSTR 5, 6, 7, and 8 till August 31st
- The facility to file NIL GST Return 1 Form by SMS was introduced from July 1st week by the Central Government.
- The Central Tax payment extension under Section 54(7) of the GST Act is till 31st August. An extension of fifteen days is provided beyond 31st August.
- The due date for compliance under 35/2020-Central Tax was extended up to 31st August from March 30th. Plus, the filing for GSTR 3B form can
- There is a relief period for paying late GSTR 1 form between March and June 2020.
- CBIC established an e-Office to automate the internal file handling process
July GST announcement
- Initiation of online facilities for tax payments and adjustments by Odisha tax authorities.
- GSTR 4 Form i.e. Annual Return is now accessible on the GST online portal
- 18% GST is to be reported on alcoholic made sanitizers for few media sections
- SMS based filing for GSTR 1 and GSTR 3B is NIL.
- All Concord Taxpayers can file the annual GSTR 4 form by August 31st.
Latest 2020 GST Guidelines (August to October 2020)
- 21 Indian States have mobilized more than seventy-eight thousand crores to meet GST implementation.
- GSTR 3B filing is extended till March 2021.
- The Ministry of Finance statement introduced LTC (leave travel communication) benefits.
- GSTR 2B form is now accessible on the GST Portal.
- In 2020, CGST sub-rule 4 and 36 are now modified for tax filing till August which was previously till February.
- Relaxation and rebates added to e-invoicing for taxpayers and individuals.
- Execution of Dynamic QR Code on B2C invoices extended till December 1st 2020.
- Businesses with turnover from and above Rs. 500 Crores will e-file their invoices under GST from B2B supplies.
- Relaxation in paying late fees to taxpayers filing under GSTR 4 or 10 forms.
With such modern adaptations in 2020 GST guidelines, there is a huge rush for GST courses in India. Check out the best GST course here that prepares you for the industry and equips you with the right skills as a GST expert.