You know that GST Council has finalized 4 categories of tax rate under GST regime i.e. 5 percent, 12 percent, 18 percent and 28 percent. Apart from this tax rate for Gold, Silver, Precious Stone and Processed Diamond is 3 percent and uncut rough Diamond would be taxed on 0.25 percent. GST Council has already rolled out different tax slab rate for 1211 items / things relating to consuming products and services. There are also certain items that have been completely tax exempted from GST regime; it is a boon for common man to run their livelihood easily. Huge products and services are came under 12% - 18% tax rate and out of that luxury and sin goods are comes under 28% tax rate. Yes, it will create a positive growth and development of a nation like India.

But we are talking about the things or goods that were less taxed earlier as compared to today’s tax rate under GST for the same items / products. So which products and services are became costly after GST rollout?

Let’s have a look on certain products and services that have increased their tax rate. Below is a comprehensive list of goods and services which would be costlier after GST implementation.

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Types of GST Return and Their Due Date

One of the first things that you need to do in order to claim your tax returns is file your income tax returns (ITR) for the year. Normally, the last date for filing tax returns in a year is July 31 and here you file the tax returns for the previous year. For an example, in this financial year (FY) 2018-19 you will be filing the tax returns in 2019-20, which will be regarded as the assessment year (AY).

A financial year is normally taken as April 1 of one year to March 31 of the next year and the assessment year is the just next year of financial year. For example, AY 2019-20 is the assessment year for FY 2018-19.

It is always better to avoid filing at the last time since there can always be mistakes with such an approach. Always file your returns several days before your deadline so that you do not have to face any undue issues.

All you need to know about income tax refund

The tax on your income over income tax slab needs to pay to the income tax department; after being exempted from all benefits and it is deducted from your annual income. So tax deducted at source (TDS) is a way to collect income tax from the source of your income. It is applicable to various source of income like salary, interest on bank FDs, professional fees/ technical fees, rent of land & building and more.

However, TDS is not the final tax amount that you need to pay to the income tax department; your actual tax liability may be higher or lower after tax calculation. So therefore, if the total TDS deducted during a financial year is greater than the actual tax obligation, then you can make a request for refund of excess TDS that deducted over and above your tax liability.

For an instance, if your total TDS is deducted from a financial year was Rs. 40,000, but at the time of filing the income tax return your actual tax liability is ascertained to be Rs. 15,000 only, then you can claim to receive the income tax (TDS) refund of Rs. 25,000.

Keeping all the necessary papers close by

Before you start the process of filing reports it is important that you have your important papers with you. This would items such as the following:

• salary statements
• bank statements
• business income statements
• Form 16 from your employers
• Form 16 from your banks where you have made investments
• certificates of interest that you have paid
• proofs of investment and related documents
• insurance documents that may be relevant
• 26AS tax credit extract

The business income statements are however applicable only if you have a business as such.

Filing the income tax

The next step is filing the ITR. You can do this by filing either ITR-1 or ITR-4 form. The form contains a number of fields that are important for this purpose. Some of them may be mentioned as below:

• name
• address
• your complete income
• the income that is liable to be taxed
• taxes deducted at source (TDS) if any
• total dues
• refund due

This form would contain all your financial data for an assessment year. You can fill this form by yourself or take the help of a tax lawyer or chartered accountant if you wish to. The form basically explains itself and this is why you can easily fill it.

How to claim TDS refund

To claim the TDS refund you need to file income tax return (ITR) in the relevant assessment year (AY). The last date of filing ITR is normally 31st July of relevant assessment year.

At the time of filing ITR what information you have provided, the refund amount would be displayed on the screen automatically under the “Refund” row option. Once the I-T Department processes your ITR, verifies its genuineness and accepts it, then you’ll be intimated by them.

Intimation under Section 143 (1) is given to the taxpayer which may say, ‘tax calculation matched with I-T Department’, ‘tax calculation not matches with I-T Department’ or ‘calculation matches with I-T Department and refund claim accepted’.

If you filed your ITR online and have registered mobile number with I-T Department, then you may get intimation through SMS about the processing of ITR.

You will be asked to provide details of the bank account in which you would like to get the refund if you are filing it in online. The refund amount will be credited to your account once the assessment cycle is over for the I-T Department. And for offline refunds a cheque will be issued in the taxpayer’s name.

Identifying the amount to be refunded to you

Once you have submitted the form, you will be able to see the refund in the refund column. This would happen only in case you have paid more taxes than you are supposed to. If you wish to identify this sum you would need to click on the button named validate, which is there on the sheet named taxes paid and verification. Over there, you would need to note the refund amount and also keep a copy of the ITR form thus generated.

You can check the total TDS deducted amount during the financial year by viewing the "Form 26AS". Form 26AS consists of all TDS deducted by the deductor such as bank accounts, employer, tenant etc. You can access the Form 26AS by logging into e-filing portal of Income Tax Department and view it online and can download the same in PDF format.

Sending the form to the income tax office

If a figure is actually shown in the refunds column then it means that you have actually paid more taxes than your actual liability.

In order to claim the refund, you would need to take a print out of that form and then sign at the place where you are supposed to. The form also has the address of the income tax office – it is there where you would have to send the form. The form can be sent through ordinary post or speed post. After this you need to enclose the form, put it in an envelope and then send it to the specified address.

Interest on TDS refund

If the taxpayer files the ITR with a claim for refund of TDS before July 31st of the relevant assessment year, then the taxpayer is entitled to receive the interest on refund amount for the period starting from 1st April of relevant AY to the date on which refund is granted.

If the return is filed after 31st July of the relevant assessment year, then the interest is calculated from date of filing ITR to the date on which refund is granted.

Currently interest rate at 6% per annum is given on the refund amount. Interest received on the refund is taxable and it is added in the gross income of the taxpayer for that financial year in which interest is received.

How long the refund takes

This is the final stage. After Income Tax Department gets the signed on it, you would be informed by way of SMS (short message service) or email. It would definitely verify the figure in case it finds something wrong with it.

However, as soon as they are okay with the data that you have furnished the application would be processed and the extra taxes that you have paid would be refunded to you. Throughout the entire process you would keep receiving communication from the Income Tax Department by way of SMS or e-mail. 

It depends upon whether the TDS is given on online or through cheque, it normally takes two weeks to three months of time from date of verification of ITR to get the TDS refund. For those who have filed it after first deadline, it may take longer for them.

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Countries such as the United Kingdom have been making the most of the potential on offer in the startup scenario in Bangalore. They are associating with the state government of Karnataka to provide funding for new business enterprises by way of the Karnataka Information Technology Venture Capital Fund (KITVEN Fund). Other investors such as incubators, angel investors, and venture capital funds are also coming to the city in droves to partake in the growth of the city’s economy. They are all looking for the best investment opportunities – ones that the city is known to provide.

Networking opportunities

As may be gauged from a business ecosystem as busy as the one in Bangalore there are plenty of networking opportunities to be had. The business culture in this city is also second to none as can be understood from the words of Ian Felton, the Deputy High Commissioner of Great Britain in Bangalore, the city in future is going to be one of the faces of the country. It has a high-tech society that is truly cosmopolitan and has a global outlook to boot.

All the GST matters are to be filed through online. If you need our assistance on GST registration in Bangalore, Karnataka we will be glad to complete all your GST return process to avoid penalties relating to returns and get tax benefit or GST Returns can be done by filing anyone of the following methods:

1. By GSTN Portal (www.gst.gov.in)
2. By Offline utilities provided by GSTN
3. By GST Suvidha Providers (GSPs) – If you are already using the services of ERP providers such as Tally, SAP, Oracle etc., there is a high likelihood that these ERP providers would provide inbuilt solutions in the existing ERP systems

Here you can follow the table list on various types of returns, due date and forms under GST Law:

GST Filing Process

GST filing is easy and simple process but have to through proper way. A normal taxpayer has to file the following returns:

GSTR-1 (Statement of Outward Supplies):

1. This return signifies the tax liability of the supplier for the supplies effected during the previous month.
2. It needs to be filed by the 10^th of every month in relation to supplies effected during the previous month. For example, a statement of all the outward supplies made during the month of July 2017 needs to be filed by 10^th August, 2017.

GSTR-2 (Statement of Inward Supplies):

1. This return signifies accumulation of ITC (Input Tax Credit) from the inputs received during the previous month.
2. It is auto-populated from the GSTR-1s filed by the corresponding suppliers of the Taxpayer except for a few fields like imports and purchases from unregistered suppliers.
3. It needs to be filed by the 15^th of every month in relation to supplies received during the previous month. For example, a statement of all the inward supplies received during the month of July 2017 needs to be filed by 15^th August, 2017.

GSTR-3: This is a consolidated return. It needs to be filed by the 20^th of every month. It consolidates the following details

1. Outward Supplies (Auto-Populated from GSTR-1)
2. Inward Supplies (Auto-Populated from GSTR-2)
3. ITC availed
4. Tax Payable
5.  Tax Paid (Using both Cash and ITC)
6. Payment should be made on or before 20th of every month.

Annual Return:

GST annual return needs to be filed by 31st December of the next Financial Year. In this return, the taxpayer needs to furnish details of expenditure and details of income for the entire Financial Year.

The goods and services tax (GST) is a radical step towards the country’s transformation into a common market. GST is applicable mainly for manufacturer, service provider and trader. In other word we can say GST is applicable for businesses and won’t affect directly to the salaried class, self-employed professionals and mostly for normal people.

So common man can take the benefits of GST, these people have no worry about the implementation of goods and services tax. It will drive their live better; GST is helpful for household items which are used regularly by common man. I think a single tax can bring down prices for most households.

Here you can see the different categories of tax rates on various items that we are using regularly in our day-to-day life.

Goods and Services Tax (GST) @ 0%

• Unpackaged Food Grains
• Fresh Vegetables
• Unbranded Atta
• Unbranded Maida
• Unbranded Besan
• Gur
• Milk
• Eggs
• Curd
• Lassi
• Unpackaged Paneer
• Unbranded Natural Honey
• Palmyra Jaggery
• Salt
• Kajal
• Phool Bhari Jhadoo
• Children’s Drawing and Colouring Books
• Education Services
• Health Services

Goods and Services Tax (GST) @ 5%

• Sugar
• Tea
• Roasted Coffee Beans
• Edible Oils
• Skimmed Milk Powder
• Milk Food for Babies
• Packed Paneer
• Cashew Nuts
• Raisin
• PDS Kerosene
• Domestic LPG
• Footwear (upto Rs. 500)
• Apparels (upto Rs. 1000)
• Agarbatti
• Coir Mats

Goods and Services Tax (GST) @ 12%

• Butter
• Ghee
• Almonds
• Fruits Juice
• Packed Coconut Water
• Preparation of Vegetables, Fruits, Nuts or other parts of Plants including Pickle, Murabba, Chuntey, Jam and Jelly
• Umbrella
• Mobiles

Goods and Services Tax (GST) @ 18%

• Hair Oil
• Toothpaste
• Soap
• Pasta
• Corn Flakes
• Soups
• Ice-Cream
• Toiletries
• Computers
• Printers

Really GST will helpful to integrate the nation’s economic growth and development by binding a single thread of tax system in all over the India.

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GST Slab Rate in India

GST Council Sets New Tax Rates for Products and Services

The lowest category of 5 per cent is expected to be applied for essential goods while luxury goods will be subjected to the highest slab of 28 per cent. Along with this, an additional cess is expected to be levied on goods like luxury cars, pan masala, tobacco products, and aerated drinks. As of now, the different industries are waiting with bated breath to see which category they are slotted in. Once they get to know about the said categories they would be in a better position to take stock of the effects that the new tax structure would have on them. All this data is going to be crucial with respect to GST registration.

How is government seeing the situation?

From the information that has come through the public domain the effect of the new taxes is not going to be too different than what is the case with the present tax structure. However, this is always going to be easier said than done. If we are to understand how government’s thought process will be translated to reality it is necessary to understand the effects of the present tax regime on various products. At present, a lot of goods are subjected to a value added tax (VAT) of 14 per cent and excise duty of 12.5 per cent. Will this have any effect on GST registration in Bangalore?

The effects of present tax regime on goods

If you add those two categories it comes to 26.5 per cent and it is expected that these goods will now be classified under the highest bracket of 28 per cent under the new goods and services tax regime. However, if goods were fitted into higher rates just by adding the value added tax rates and excise rates then the goods and services rates that we arrive at would be distorted to say the least. There is a chance that tax incidence in actuality could be lower than what is apparent now as far as GST in India is concerned.

Reasons for lower tax incidence

GST registration in Karnataka is expected to get smoother than before. One of the major reasons for a possible lower tax incidence is that excise rates could go down in the future. More important than this is the fact that the same good may be subjected to different rates of value added taxes in various states.

The providers of chartered accountant services in Bangalore operate in various industries that can be as similar as chalk and cheese. This means that on a regular basis they are being exposed to various situations and predicaments, and they have thankfully been able to come out of those with flying colours. This also augurs well for you as a prospective client.

Helping you always

This implies that you can be from any industry and you can be facing any kind of problem. You can be sure that when you come to a chartered accountant in Bangalore it will surely help you. These organizations operate as per simple principles – of providing the best-possible solutions for the issues being faced by the clients. The business environment has become quite dynamic now and everyday new challenges are coming up. With the help of these companies you would always be in a better position when it comes to facing such challenges and dealing with them in an effective manner.

Talent and overall way of work

The companies that provide CA services in Bangalore Karnataka normally work with the very best professionals in the industry. This is one reason they are able to deliver the kind of service that they are known for. They are always well served in terms of the people that are working for them. These companies normally use the best and latest – cloud based in this case – accounting, customer relationship management, and payroll software. These software tools are used all over the world. These companies also cater to international clients that can be from countries such as the following:

• The United States of America
• France
• The United Kingdom
• The Netherlands
• Spain
• Hungary
• Taiwan
• Singapore
• China
• Japan
• Romania
• Switzerland
• Suriname
• South Africa

These companies always aim to provide services that cannot be matched in terms of quality and are delivered at the time that they are contractually obligated to do. They believe in a never-ending cycle of sharing knowledge with their clients in order to empower them. They always make their best efforts in order to make sure that they are adding value to their clients.

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Also Read:

All You Need to Know About Professional Tax in India

How to Claim Income Tax Refund: A Step by Step Guide

Company Annual Return Filing under Companies Act, 2013