GST Blue Saffron: Recent Episodes
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A taxi driver needs GST registration in Australia. TFN & ABN both are needed for GST registered business. Minimum purchase of $82.50 is needed to avail GST Credit. Listen to podcast for many such scattered points in brief under FAQ context.
Zero rated Supply vs Exempted Supply. Composite Supply Vs Mixed Supply. MRP of Supply. Interstate Supply Vs Intrastate Supply. Invoicing over Continuous Supply. Listen to podcast to learn all this.
Indian GST model is adopted from Canadian Dual GST System which is unlike that of Australia. Tax rates are different. Indian model also has Composition Scheme for ease of doing small businesses. Listen to podcast to learn more differences w.r.t. ISD, eWay & more.
Australian market has many software packages for professional accounting some of which are FREE & some are not. Some support GST. Listen to podcast to find out top 10 popular ones.
Goods entering Australian soil may incur GST, duty &/or other additional port charges which importer may need to pay before it is cleared from customs. Listen to podcast to know the process & various documents needed for importing goods / services in Australia.
A GST registered person in Australia need not include GST in the price of exports. Hence it's GST Free. Not only that, the supplier can claim GST credits that were included in the price of purchases used to make exported goods and services. Listen to the podcast for various real life export scenarios in brief.
Regardless of whether for personal use or in the course of business, all supplies of goods or services or both imported into India shall be treated as an interstate supply. All interstate supplies attract IGST (Integrated GST). Listen to podcast to know how is it different from Goods.
The idea is to add up the taxable amount including all taxable charges & other taxable fees, and then tax the total. For determining the Transaction value after GST Valuation is that supplier and recipient are not related to each other. Listen to podcast to learn more rules, formulae, inclusions & discounts.
What makes them both different is the nature of deduction / collection. The TDS is Tax deducted whereas the TCS is Tax collected, at source. And obviously deduction happens only at the payer side whereas the collection happens at the recipient end. Listen to the podcast to learn more differences.
Introduction of Tax Collected at Source (TCS) w.e.f. from 1st of October 2020 was deemed necessary after noticing ongoing numerous tax evasions after GST rollout. The Government has placed the responsibility on the Operator to collect the ‘tax’ at a rate of 1% from the supplier. Listen to the podcast to understand in detail with full story.
TDS (Tax Deducted at Source) in India is like PAYG W (Pay As You Go Withholding) in Australia. The rate of TDS notified under the GST laws is 2% (1% CGST+1% SGST or 2% IGST) on the payments made to the seller of taxable goods or services. It is mandatory for a person liable to deduct TDS. Listen to the podcast to know how TDS "is & not" connected to GST.
If you take any nation, the first 18 months are always very critical and Australia was no exception. While critics argued that GST consumed a major proportion of their income, govt. counter-argued that they were not paying any extra tax. As a socio-economic impact, the nation witnessed a sharp decline in its 10 years’ economic growth due to lower consumption of GST taxed items from the people of Australia.
Excise duty is a part of GST. as an indirect tax that has been subsumed by the Goods and Services Tax or GST. Listen to podcast to learn about major differences, and similarities between two.
DDS saves you from paying import duties on imported items since they’re going to be used for making export products. It neutralises all import duties such as customs duty, central excise and service tax on any imported materials in the manufacture of export goods. Listen to the podcast to know deemed exports & documents needed.
Under the GST Regime, while being a registered business, you may come across various GST Documents and GST Forms, you also come across different GST eLedgers. It’s an online GST passbook that has records w.r.t. your credits, cash & liabilities. Listen to the podcast to find out 3 main types of eLedgers online.
The purpose of GST forms is to facilitate transparency and ease of doing business. And these forms are not just one way, even the Govt. is obliged to generate certain forms most of which could be of the type “Response / Acknowledgement Forms”. Listen to the podcast to know various types of forms & their naming convnetion.
Once you’ve started your registration with GST, you are under obligation to maintain certain documents in the course of your business under the GST Regime in India. Listen to the podcast to know what are they.
Where there is only one taxable sale on a tax invoice, the amount of GST should be rounded to the nearest cent (rounding 0.5 cents upwards). Where there is more than one taxable sale on a tax invoice, there are two rules known as the total invoice rule and the taxable supply rule. Listen to the podcast to learn those 2 simple rules.
PAYG W (Pay As You Go Withholding) is like TDS (Tax Deducted at Source) in India. Earlier, employers used to pay the full gross salary to the employees. Then employees had to file their tax return at the end of the financial year. Many people confuse to relate PAYG W with GST. Listen to the podcast to know that both are different things.
Sometimes people don't meet their lodging obligations on time, even with the best intentions due to lack of funds or forgetful nature. Failure to lodge a return on time may result in penalties. The ATO (Australian Taxation Office) sends you a FLT penalty notice stating the amount and due date of the penalty. Listen to the podcast to know various types of penalties involved for different business entities.
This podcast gives you a Helicopter view / Bird's Eye view / Satellite view of how GST works in Australia in a Nutshell. Listen to the podcast to find out simple aspects of it.
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The Goods and Services tax (GST) system was introduced into the Australian taxation system on 1 July 2020. Taxation of goods and services is primarily levied through the legislation contained in A new tax system (Goods and Service tax Act 1999) Commonwealth and is administered by the Australian Taxation Office (ATO). Listen to the podcast to know more about it.
As we know that business can be carried out by an individual, company, trust or partnership etc. all have to report their share of GST to the tax office whether it turns out to be net receivable or payable. The form which is used to report GST with other reporting obligations in Australia is known as “BUSINESS ACTIVITY STATEMENT”. Listen to the podcast to know about various other taxes as compensation.
Some taxpayers are careless about the timeline while some are struggling for funds sufficient enough to pay their GST. Some smart people expedite their forthcoming purchase order / work order to reduce their payable tax amount in the next month. Listen to the podcast to learn what INTERESTS & LATE FEES apply.
The decline value (depreciation) is claimed by the taxpayer on purchase of inputs of goods / services (input supplies). However, if the Input taxed Supply is claimed in GST Credits then it cannot be re-used for deductions. However, the balance amount can be.
You can save taxes legally and ethically in many ways. GST Credits are Input Tax Credits (ITC) that a (GST) Registered business can claim in their entire business course. Another way is to claim the expenses as deductions to reduce your business income figure so that tax is saved. Listen to the podcast to study various real life like examples to understand in detail.
According to the ATO (Australian Tax Office) to claim your GST credits for pre-establishment costs such as: Business registration Set-up fees, Trading stocks and Business premises. But certain criteria must apply. Listen to the podcast to learn those criteria.
It is a credit for the tax included in the price of your business inputs (purchases) therefore it’s also called ITC (Input Tax Credits). Of course you need to be (GST) registered for claiming your GST Credits. Listen to the podcast to learn about more criteria for claiming credits.
From 140 countries, India has adopted dual model of GST from Canada however, the threshold is still higher posing a challenge to SMEs (Small Medium Enterprises). Listen to podcast for detail of model and structure.
The Import event comes under IGST Act 2017. Hence it is as good as importing from another state so will attract Integrated GST. However it's just not one tax, there is a collection. Listen to podcast to know the set of taxes / duties applicable on imports.
Recovery from defaulter can be done by the officer. Under two types of cases.
- Section 73 (No invocation of fraud)
- Section 74 (Invocation of fraud)
Listen to podcast to learn more about What forms are involved and how it is done.
Any one who is aggrieved by any order or decision passed under GST Act(s) has right to appeal to the Appellate Authority under Section 107 by filling up the form FORM GST APL-05.. The Appellate authority hears the appeal made. Listen to the podcast to learn more about who can file appeal and who cannot.
There are many offences listed in GST such as Supply without Invoice, Invoice without Supply. , Not paying collected tax for 3 or more months.Not depositing TDS (Tax Deduction at Source),the list is long. Listen to the podcast to know all offences.
The GST Act has provision to warrant such prosecution in form of a prescribed compensation to be paid to the department. This is called compounding. As per Section 138 of the CGST/SGST Act, the offences can be compounded. Listen to the podcast to learn more about certain conditions and consequences of compounding.
Arrests can take place only when a Commissioner authorizes CGST/SGST officer with “a reason to believe” that the person has committed an offence attracting the punishment. Listen to the podcast to know about safeguards and precautions during arrests.
“Inspection” is a softer provision than the “Search” which is carried out under Section 67(10) CGST/SGST Act. It enables the inspector to access any place of a business such as an office, factory, godown, etc. Listen to the podcast to find out who can inspect what & what does search warrant contain.
When it comes to manufacturing, understanding of the Job Work gets a little tricky. Although you manufacture an item you are not the manufacturer. Why? Because the raw material doesn’t belong to you. All you are providing is the molding service to turn that into a desired finished goods. Listen to the podcast to learn the definitions, obligations and precautions of doing a Job Work.
Seizure is the confiscation of the goods / evidence that lead to the crime. Listen to the podcast to find what different types of perishable hazardous items should be disposed off after seizure & a classic case of what kind of disaster it can bring by not following the protocol.
Bill Traders are the tax evaders who do GST Scams by taking advantage of loop holes in GST. But they don't know that it's a trap where ultimately they end up being caught and prosecuted. Listen to the podcast to find out more about it.
When you get some benefit in business from the Govt. which you do not pass on down the line is called Anti-profiteering. Indian Govt. protects Consumers in many ways since they bear the ultimate burden of the GST. Listen to podcast to learn a classic case study.