Being deemed as the country’s biggest tax reform, The Goods and Services tax, better known as GST, rolled out on July 1. The reform is anticipated to benefit the common man and, the honest tax payers of the nation. With a promise, to further concretize the Indian economy, it is designed specifically, to diminish corruption to a significant extent.
Although, this taxation reform starts the ball rolling for the vision of ‘One Nation, one Tax,’ it has also given birth to certain apprehensions among the populace, regarding its impact on their finances, businesses and routine life.
Asserting that the citizens of the country should not fall for any mocked-up rumour, Mr. Hasmukh Adhia, the mainspring behind the incorporation of GST, took to twitter, in order to shoot down some novice misconceptions about GST, surfacing lately.
The myths, debunked by Mr. Hasmukh Adhia are mentioned below-
Myth 1:I need to generate all invoices on computer/ internet only.
Fact: Invoices can be generated manually also
Myth 2: I need internet all the time to do business under GST.
Fact: Internet would be needed only while filing monthly return of GST.
Myth 3: I have provisional ID but waiting for final ID to do business.
Fact: Provisional ID will be your final GSTIN number. So start business.
Myth 4: My item of trade was earlier exempt so I will need new registration before starting business now.
Fact: You can continue doing business and get registered within 30 days.
Myth 5: There are 3 returns per month to be filed.
Fact: There is only 1 return with 3 parts, out of which first part is to be filed by dealer and two other parts would be auto populated by computer.
Myth 6: Even small dealers will have to file invoice wise details in the return.
Fact: Those in retail business (B2C) need to file only summary of total sales.
Myth 7: New GST rate is higher compared to earlier VAT.
Fact: It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now.