There are various Myths and Misconceptions about GST. Allow me to burst few: 1. 𝗚𝗦𝗧 𝗔𝗽𝗽𝗹𝗶𝗲𝘀 𝗮𝘁 𝗮 𝗨𝗻𝗶𝗳𝗼𝗿𝗺 𝗥𝗮𝘁𝗲 𝘁𝗼 𝗔𝗹𝗹 𝗚𝗼𝗼𝗱𝘀 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀: 𝗙𝗮𝗰𝘁: India has adopted a multi-tier GST rate structure.

Depending on the nature of goods and services, different GST rates (5%, 12%, 18%, and 28%) are applied. Additionally, some essential items are exempt from GST, while specific luxury and sin goods attract an additional cess.

2. 𝗚𝗦𝗧 𝗶𝘀 𝗣𝗮𝗶𝗱 𝗯𝘆 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀, 𝗡𝗼𝘁 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿𝘀: 𝗙𝗮𝗰𝘁: While businesses are responsible for collecting and depositing GST, the tax's burden ultimately falls on the end consumer.

The prices of goods and services under the GST regime are inclusive of the GST, which means consumers pay the tax, while businesses merely act as collecting agents.

3. 𝗔𝗹𝗹 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗠𝘂𝘀𝘁 𝗥𝗲𝗴𝗶𝘀𝘁𝗲𝗿 𝗳𝗼𝗿 𝗚𝗦𝗧: 𝗙𝗮𝗰𝘁: GST registration is mandatory for businesses that cross a certain annual turnover threshold, which varies depending on the type of supply and the state of operation.

However, businesses below this threshold have the option to register voluntarily. Additionally, some businesses, like those engaged in the supply of exempt goods or services, might not require GST registration.

4. 𝗔𝗹𝗹 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗙𝗶𝗹𝗲 𝗠𝗼𝗻𝘁𝗵𝗹𝘆 𝗥𝗲𝘁𝘂𝗿𝗻𝘀: 𝗙𝗮𝗰𝘁: The frequency of GST return filing depends on the type of registration and the turnover of the business.

While certain businesses need to file returns monthly, small businesses with a turnover up to a certain threshold (under the Composition Scheme or using IFF) can file quarterly returns.

Those in IFF needs to pay tax monthly (actual tax or on a percentage basis), and filing of Return is quarterly but it is advised to file IFF monthly.

5. 𝗟𝗮𝘁𝗲 𝗙𝗶𝗹𝗶𝗻𝗴 𝗼𝗳 𝗚𝗦𝗧 𝗥𝗲𝘁𝘂𝗿𝗻𝘀 𝗗𝗼𝗲𝘀 𝗡𝗼𝘁 𝗜𝗺𝗽𝗮𝗰𝘁 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀: 𝗙𝗮𝗰𝘁: Late filing of GST returns can lead to penalties and interest. Continuous non-compliance might also lead to other legal actions.

𝗜𝗳 𝘁𝗵𝗲 𝘃𝗲𝗻𝗱𝗼𝗿 𝗱𝗼𝗲𝘀 𝗻𝗼𝘁 𝗳𝗶𝗹𝗲 𝗿𝗲𝘁𝘂𝗿𝗻 𝘁𝗶𝗺𝗲𝗹𝘆 𝘁𝗵𝗲𝗻 𝗶𝘁 𝗺𝗶𝗴𝗵𝘁 𝗶𝗺𝗽𝗮𝗰𝘁 𝘁𝗵𝗲 𝗜𝗻𝗽𝘂𝘁 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁 (𝗜𝗧𝗖) 𝗼𝗳 𝘁𝗵𝗲 𝗥𝗲𝗰𝗶𝗽𝗶𝗲𝗻𝘁. Therefore, it's essential to ensure timely filing to avoid these repercussions.

In addition to these myths, there's a general belief that GST has a one-size-fits-all approach, which isn't true. The GST regime in India offers multiple return forms and compliance mechanisms tailored to the specific needs and sizes of businesses.

It's essential to understand the nuances and ensure compliance to reap the benefits of this unified tax system. I wish and hope you like this post.