In this article, we will discuss the non-resident taxable person. Any layman can figure out, t...
Today in this article we will tell you about how to calculate the GST payments and Refunds in India. There is an ample number of benefits embed with the GST registration in India which you will come to acknowledge in our article.
Under GST Registration you need to file your return every month like GSTR-1 is to be filed to report Sales, GSTR-3B is required to be a file to report the ITC. Also if a refund is required to be claimed the same can be done by filing an RFD-1 form to the online GST portal.
The very first thing which we do after getting GST registration is the payment of the GST tax. Now let us learn how to calculate gst payment and refunds under GST registration in India.
GST mainly covers three taxes which are as follows-
|Goods sold from Delhi to Uttar Pradesh||
|Goods sold within Delhi||No||Yes||Yes|
|Goods Sold from Uttar Pradesh to Noida||No||Yes||Yes|
TDS or Tax Deducted at Source under GST Registration– apart from the payment one more payment is needed to be made by the dealer before making payment to the supplier that is TDS.
For an example-
A government agency gives a tender of road construction to the builder. The contract value is 20 lakhs. The government agency payment to the builder TDS@ 1% (which amounts to 20000) which will be deducted and balance amount will be paid.
Usually, the Input Tax Credit should be deducted from the Outward Tax Liability to calculate the total GST payment to be made. TDS/TCS will be deducted from the total GST to arrive at the net payable figure. Interest and late fees will be added to arrive at the final amount. However, ITC cannot be claimed on interest and late fees where both the Interest and late fees are required to be paid in cash.
A regular dealer is liable to pay the GST on the outward supplies made and can also claim the Input Tax Credit on the purchase made by him. The difference between the outward tax liability and the ITC is the amount of GST you need to pay.
The GST payment for a composition dealer is piece of cake. A dealer who has opted for the gst composition scheme need to pay the fixed percentage of the GST on the total outward supply he made in the course of business. The type of business of a composition dealer decides the amount of GST paid.
Total = O.1% for the Manufacture or trader (Goods)
Total = 5% for the Restaurant not serving alcohol
The*Service provider is not eligible for composition scheme
The following are the dealers who are required to make the payment-
GST payment should be made when the GSTR 3 is filed that is 20th of the next month.
Following are the ledgers that are to be maintained on the GST portal through electronic mode-
There are two ways to make the GST payment in India
A penalty of 18% is to be paid by the dealer if there is any delay in GST payment or GST paid late or unpaid. Into the bargain, a penalty of Rs 10,000 or 10% is charged on the short paid or unpaid of the tax.
When you pay GST more than GST liability then the situation of GST refund comes into the picture. The process of claiming GST Refund is very easy and in a standardized form. The process is online and set on a time limit.
Following are the cases where GST refund can be claimed-
Understand the calculation of GST refund will be more fun if we do this with an example-
Mr. Ram has the liability of Rs 2, 00,000 for the month of August and due to mistake, Mr. Ram paid Rs 2 Lakh as a GST payment. Now, Mr. Ram has made an excess GST payment of Rs 1, 80,000 which can be claimed as refund under GST payment by him.
The time limit for claiming the refund is two years from the date of payment. The following are the relevant date of payment in different cases-
|Reason for claiming GST Refund||Relevant Date|
|Excess payment of GST||Date of payment|
|Export or Deemed export of goods or services||Date of dispatch/loading/passing the frontier|
|ITC accumulates as output is tax exempt or nil- rated||the Last date of the financial year to which the credit belong|
|Finalization of Provisional assessment||Date on which tax is adjusted|