The term Refund and its challenges are already described in the previous section of 54 of the CGST/SGST/GST Registration Act. The Refund includes the below statements.
- The balance amount in the electronic cash ledger
- The unutilized input tax credit in regards to the zero-rated supplies, the tax rate occurs when the rate of tax for inputs are higher than the tax on output supplies.
Procedures to remove the challenges of Refund under GST registration Law
The person claiming the refund of any tax or service if he paid such tax or any other amount makes an application 54(1) before the expiry of 2 years from the certain date.
The registered person claiming a refund of any balance in the electronic cash ledger may refund in the prescribed manner.
The methods to claim the refund filing
The refund filing should be the file in the Form GST RFD 1. The refund claim of balance in the electronic cash ledger can claim through the monthly or quarterly returns in form GSTR 3, GSTR 4 or GSTR 7.
Salient Features of GST
GST is applicable to goods and services under the law of tax on manufacturers and sellers of goods & services. The GST is the opposition to the origin-based VAT system and it is based on the consumption taxation. It is simultaneous coordination of central and state tax as a common base. The central GST means the GST charged by the central and charged by sates is termed as state GST license. The inter-state supply of goods and services charges by the Integrated GST Consultans system. This is collecting from the center thus the credit chain does not violate. The imports of goods treat as interstate supply and it remains under the category of IGST.
Importance of features
Import of service also categorized under IGST. GST is applicable to all products except alcohol. The taxpayers with an annual of 20 lakhs exclude from the GST filing for special category regarding section 279A). Small taxpayers have turnover 1 crore can able to apply for a special composition scheme. That means tax payment at a flat rate without credits. This rule may rise to 1.5 crores after getting some amendments.
The compounding scheme and the threshold exceptions are optional. The institute of cost account and the Tax Research department are zero-rated. The credits of CGST pay only for the CGST on output as well as a credit of SGST paid on inputs are also used for the SGST output. The statements of the Input tax credit cannot cross utilized except some specific circumstances of interstate supplies for payment of GST.
GST Registration challenges
The GST Act introduce by the Constitution Act 2016, following the passage of 122nd amendment Bill. Since 1947 GST is the biggest transform in Indian taxation. But it also faces certain challenges in accordance with the existence.
State agreement: The phenomenal tax of GST is critical. The state government published GST in state assemblies to bring majority.
RNR (Revenue Neutral Rate): The success of GST carries RNR. It is also one of the main factors. In GST the government revenue is not the same as the current system. The RNR’s revenue would be the same despite giving tax credits.
Threshold limit in GST
When the introduction of broad-based taxation under GST, both the empowered committee and the central government ensure that lowering of threshold limit should not be a taxing burden in small scale industries.
Healthy IT Network
the robust network means the government already introduced GST. The GSTIN has developed GST portal to ensure the technical support for registration, tax filing, IGST settlement, etc.
Broad training session for Tax administration Staff: the existing system and the GST are totally different. The state and central staffs must be trained well-properly in terms of concept, legislation, and procedure.
The number of descriptions
there are two types of GST Law. One is called CGST and another is called SGST. There are different tax rates at these two categories. The further divisions based on the location, resources, etc of each state.
Additional charges on GST: the additional charges are applying to negotiate the loss of revenue while moving to GST. The fundamental need for GST in India to makes the interstate movement easy.
The main challenges of GST are to make all the taxes under the same roof. In a few states there occur some opposition to include purchase tax. Other states are unwilling about alcohol, tobacco, etc under GST. This is because the major part of the revenue is derived under these categories.
The GST obligations are allocated on central and state are granting through an amendment. It seems a little difficult to add the current political scenario of the country.
Makes a shift arrangement:
The state government claims compensation from the central government as they expect a major dent in the revenue due to CST losses. This may ask for the first 5 years of GST, for which the central government agreed to 3 years.
The framework of Taxes: There are lots of legal procedures for tax clashes and lawsuits to avoid any violation from others.
Everywhere the transportation facility is available, but the place of sale and feasting may not be the same. This is really difficult to go forward with revenue allotment. Hence, it is a little difficult to tackle with the problems to define the solutions.
Infrastructure for the collection process
The proper infrastructure is all we need to track the movement of goods and services between states, collections and evaluating the revenue, etc.
Calculation of GST Rates: this is the major step for the success of GST. The calculation of the GST Rate suitable to both the government and the public is a little complicated.
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