Calculating turnover for GST

Aggregate turnover is an important value that will help you determine whether you fall in the exempted category or you need to do the GST registration. Aggregate turnover is the taxable value of supply goods and services exempt from the export of goods and services and inter-state supply. The aggregate turnover is calculated on the basis of the pan India activities carried out by all the entities of the concerned individual. Following is a formula to calculate aggregate turnover:

Value of all (taxable supplies+ exports + exempt supplies + inter-state supplies) – (Taxes + Value of non-taxable supplies + Value of inward supplies + Value of supplies taxable under reverse charge)

This value should give you an aggregate turnover. If this value is less than 40 lakhs, then businesses are not required to register under GST.

Considerations

–       It is important to note that the increase in threshold limit is applicable only for businesses involved in the supply of goods. For service providers, the threshold limit will continue to be the same as the previous limit.

–       Businesses that are involved in the supply of inter-state goods will still have to register for GST irrespective of the aggregate turnover.

–       Section 24 of the GST Act has not been amended and any business that has been registered due to certain circumstances would continue to remain registered. Sellers selling via eCommerce websites such as Flipkart, Amazon, etc. will have to still register under GST.

–       Businesses have to carefully calculate the aggregate turnover as the criteria for registration is that value. An error in calculating the same could have problems for small-business a few years down the line.

–       There is no clarity on the service income and the threshold limit for the supply of service and goods is different. So, if your business is involved in the supply of goods, and you earn some income from rental or other such services, whether you are exempted or not will have to be determined. Not all cases are the same and it is best to consult a professional CA to get the best advice for your own business.

–       Persons that are required to register under Section 24 and suppliers of Ice Cream, and other edible ice, Pan Masala, Tobacco as well as its substitutes have to register under GST irrespective of the turnover.

–       While determining the aggregate turnover, it should be remembered that Section 17(5)(i) clearly states that if you believe you are not liable to pay tax, but the tax department thinks otherwise and you lose the appeal, you would not be eligible for an input tax credit.

Conclusion

The GST council strives to reduce the burden on businesses and make it easier for MSMEs to do business. These steps are taken periodically to assess the changing needs of the businesses. Along with the increase in exemption limit for GST, several items were shifted to lower slabs. Out of 230 items, 200 items were shifted to lower tax rates leaving only sin and luxury items in the 28% tax rate slab. Additionally, businesses opting for composting scheme can file a return just once a year provided, they pay tax every quarter.

Registering for GST is accompanied by several benefits apart from legal compliance. Your business is registered which gives you a branding opportunity and adds credibility. Registering for GST empowers you to get an input tax credit which is something non-registered businesses cannot do. It also improves the overall efficiency of your logistics. All your business purchases can benefit from tax input reducing the effective cost of purchase. The benefits of GST registration certainly outweigh the cons.

The procedure for GST registration of businesses that do not fall under the exempt category simple and hassle-free. Professional CA can help you in registration which can be done completely online without even visiting any government office. Provenience helps in GST registration with a dedicated account manager and at competitive costs. The process can be completed in merely 4-5 days with a completely online process. A dedicated account manager will share the details of all the documents required and will take care of the complete process.

So, even though the new GST threshold limit has been increased to Rs 40 lakhs, you can decide to opt for registration below the threshold as well on a voluntary basis if it benefits your business.    

Here is an alert for you all… File your GSTR – 1, 2 and 3 within the prescribed format and period as well. 

Wherein, you all have been relaxed with the deadline of regular returns filing from July to August, for all the returns filing form GSTR 1 to GSTR 3. 

And what about the filing? Don’t panic, the time period and the return due dates in India for filing returns are mentioned within the URL here… Overall GST Return Due Dates In India. 

To have a view of the same, visit the infographics as —

Also, to know all about the GST visit the Business Leading Innovation website i.e – LeadingFile. 

Well, don’t wait for the last date, just go online @LeadingFile and file it! 

Coming back to the topic… GSTR – 1, 2 and 3 filing returns date are mentioned as follows: 

Forms For July 2017 For August 2017

GSTR-1 1 st – 10th September Up to 5th October 2017

GSTR-2 11th -25th September 6th -10th October 2017

GSTR-3 Up to 30th September Up to 15th October 

What next? Next is to know; who should file the GSTR -1 Form. Have a look…

Who Should File GSTR -1 Form?

The form should be filed mandatorily by all the normal and casual registered taxpayers.

Along with that, it should also be filed when there is no business activity during a given tax period. 

All right, and who should not file it. Keep going…

Who Should Not File GSTR-1 Form?

Interesting, if there is a limit to file then there must be the ones who should not file the same.

So, here they are: taxpayers those who are opted for the composition scheme need not file the GSTR-1 Form. 

Along with that the – Input service distributor, non-resident taxable persons, tax deductor at source, tax collector at source and the taxpayers covered under online information and database access or retrieval should not file the GSTR – 1 Form. 

Ok, we come to know who should file GSTR -1 and who should not. What now? Now is to define the pre-conditions for filing the same, and here they are…

Pre-conditions for filing Form GSTR – 1

Before filing the form the receiver taxpayer should be a registered as a normal dealer and should have an active GSTIN. 

Next, the end supplier taxpayer should have a valid login authority with correct user ID and password. Thereafter, it should also have a valid and non-expired or unrevoked digital signature certificate. 

Wait, what’s more to the filing of GST returns? Noting, just avail the method and start filing the returns. So, the methods to file GSTR -1 is depicted as follows, choose either…

GSTR – 1 Form Filing Methods

Following illustrated are the quite interesting methods of filing GSTR -1 Form;

• Online Invoices Upload
• GSTR – 1 Form Preparation Using Offline Tool
• GSTR – 1 Form Filing Through GSPs

To conclude the details of above-mentioned methods, keep going…

1. Let’s consider the first one i.e; Online Invoices Upload:  If the taxpayer has a limited number of entries then he can direct the details on the GST portal. He has to login to GST portal using his User ID and password and navigate to the Return Dashboard page, where he can click on GSTR 1, ready for online return tab.

1. Over next, let’s consider the other one i.e; GSTR – 1 Form Preparation Using Offline Tools: under this alternative, an excel-based offline tool is provided by the government of India. So, to have a quick overview of that, visit in the URL mentioned here: https://www.gst.gov.in/download/returns. 

Well, this excel tool can be downloaded and installed on the taxpayer’s computer. And for what? For preparing the return in an offline mode. 

But, why one will go with the offline method? Interesting question, here are the key benefits or so-called main features of the offline tools mentioned as follows: 

• The first benefit says that under the offline mode — one can fill in invoices data up to 19,000 line items using excel utility. 
• Over next — using this offline tool, one taxpayer can upload his/her invoices in GSTR – 1 Form. Also, s/he can do the same more than once and at any time during the day or week or month.
• The third and second last benefit says that — the invoices uploaded by the supplier in the GSTR – 1 Form will be auto-populated in GSTR 2A of the receiver. Also, it will be available to the receiver for view. 
• Last but not least — we all know that online methods have their own boundaries and here those boundaries say that invoices more than 500 can’t be viewed out. Hence, to view more than 500 invoices at a time then go offline. Not only this but you can also download it and upon downloading you can edit it. 

1. The final method i.e; GSTR – 1 Form Filing Through GSPs: before all, let’s consider the GSPs: GSPs is nothing but a GST Suvidha Provider accounting application which is used to connect the GST system through a secured MPLS network connectivity.

Wherein, the taxpayers having a very large number of invoices can directly furnish the details of GSTR – 1 Form to GST.

All right, till now we have considered three of the basic methods to file the GSTR -1 Form. 

But, still, we didn’t come out with a proper solution. Don’t panic… have a look this time and consider going with the best GSTR – 1 Form filing method. 

Have a look…

GSTR – 1 Form Filing Steps

• To the first step, you need to log in at the GST official portal or name it GST official website.
• Next to this, upon reaching the official website, one needs to look for the “services” button and later to that for the “returns” button. By following out this navigation – you will be looking at your returns dashboard. 
• By reaching there, one needs to select a particular financial year. Thereafter, s/he needs to select the tax period and upon selecting this all, s/he needs to click over the “Search” button. 
• Going forth, select the GSTR -1 tile and press over the mode of filing, either the “Prepare online” or the “Prepare offline”. 
• Doing so will open a form to fill. So, fill in the required data in the prescribed format and generate the summary of GSTR -1. 
• Upon filing, in order to validate the data – press over the “Submit” button. But remember one thing that no changes can be made in the form once the data is submitted. So, before making the click – recheck the entire data, once. 
• Also, remember that you need to file the form by using the DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).
• Once you are done with this all, an application reference number (ARN) is generated and sent or mailed to your registered mobile number or e-mail ID. 

All done! 

Closing

I hope, now your view of GST Return Filing will take a wise step. 

Well, I will say that take that wise step or select an attorney that can assist you with all your GST filings, and that attorney might be LeadingFile || Business Leading Innovation for you. 

Keeping this aside to retrieve the conclusion. So, the wind-up says that from the GSTR filings date to return dates, from the who should to who shouldn’t, from the pre-condition to form filing – all things are discussed in detail.  

Hope, you enjoyed it. If so, then do share it with your perks and don’t forget to thank — LeadingFile (Backbone of this post).