Recent changes to the CGST Act and the income tax slabs under the new tax system were made by Finance Minister Nirmala Sitharaman in the Finance Bill 2023, which is part of the Annual Budget 2023–2024 presented on February 1, 2023. The adjustments range from raising the GST prosecution level to reducing the tax percentage’s compounding amount, among many other operational laws.

The Goods and Services Tax (GST) came into effect on July 1st, 2017. Many misconceptions concerning GST registration, notifications, and restrictions continue to exist among new applicants and the general public even six years later, in 2023. Everyone must understand how GST works and what the most recent developments are, regardless of whether or not they need to register for GST to operate a business.

MPVD & Associates, a leading GST consulting company in Kolkata, discusses some of the common misconceptions about GST and offers helpful insights for greater awareness and clarity among the masses.

GST Amendments in Budget 2023

Based on suggestions from the GST Council, the proposed modifications to the CGST Act and IGST Act in the 2023 Finance Bill primarily focus on facilitation/simplification and increasing compliance. Here are a few significant amendments to the Act that will have a big impact.

1. The CGST Act was amended to include a new section 158A that enables firms to share GST data digitally with permission.

Three GST law offenses are decriminalized:

i) tampering with or destroying tangible evidence or records with the intent to obstruct or impede an officer from carrying out their CGST Act-related duties

ii) failing to provide information that must be provided following the CGST Act

iii) providing misleading information, intentionally or unintentionally.

2. Amending Section 10: Composition Levy to include e-Commerce operators in the composition system for supplying goods

3. Amendments to Sections 23, 22, or 24 that lift the obligation for people listed in Section 23 who are involved exclusively in the exempt supply of goods to register according to Sections 22 and 24 of the CGST Act of 2017.

There are at least 10 other amendments added to the GST Act that have significant benefits for the MSME sector, prioritize social inclusion, and make high-value transactions simple. Regarding the foundation of Saptarishi Priorities under the Amrit Kaal phase:

Common GST Myths and the Real Situation in 2023

Coming back to busting the common myths regarding the GST, one of the most widespread misconceptions about GST registration is that it is only necessary for companies with large annual revenues.

So many new businesses as well as self-employed individuals seek GST consulting services from us at MPVD & Associates, and we find something amazing.

We come across so many clients that have been operating for years without registering for the GST despite having revenues that surpass the minimum threshold of Rs. 20 lakhs, which is Rs. 10 lakhs in several states in the North East. You’d be surprised to learn that the main reason for this is not to evade tax, but the simple misunderstanding that GST registration is for big companies.

So here is a fact check: if your turnover reaches Rs. 20 lakhs, regardless of whether you’re a self-employed salesperson, a micro organization, or a fully-fledged company, you must register for GST. Additionally, even with no revenue, you will need a GST number if you want to list your product on online marketplace aggregators like Amazon, Flipkart, or Myntra.

Below are some further misconceptions about GST that we have got to clear up right now.

• Myth 1: GST Only Works With Digitally Generated Invoices

• Truth: Invoices can be generated manually too, and you will only need the internet to file the monthly return for GST. We at MPVD & Associates can help you with that.

• Myth 2: GST registration is not mandatory for Shopify stores.

• Truth: Goods and services tax must apply to all products and services offered by Indian online retailers. GST is therefore required if you have set up a Shopify store in India. E-commerce companies that sell or provide goods or services through unregistered persons will now face increased penalties unless the unregistered person is excluded from GST registration. The penalty also applies to registered individuals who supply products or services across state lines when they are not authorized to.

• Myth 3: The TDS and TCS Calculation is Confusing for GST

• Truth: While the concept of TDS and TCS does apply for GST, with rates of 2% and 1%, respectively, composition-taxable individuals are required to pay GST at reduced or nominal rates, starting at 1.5% and going up to 6% based on their revenue. The assessee, however, is not required to submit the TCS or TDS Credit Received form before submitting the GSTR-1/3B. The form can be submitted separately as well. The math and the process are straightforward and transparent.

• Myth 4: GST registration is a complicated process

• Truth: Not only GST registration but the entire process of calculating GST percentages, GST notifications, and many other procedures can be carried out easily online or offline. And when you get the help of professionals like the GST consultancy agency MPVD & Associates, things can only be made simple, never complicated.

There are several other myths and misconceptions regarding how the GST works for businesses and independent sellers, or self-employed individuals. There is ample confusion regarding the minimum threshold limit for GST registration and the norms specific to each state.

If you have more questions or confusion, we at MPVD & Associates offer personalized GST consultation and services to make things simple and consistent for your needs. Feel free to talk to us. Call us at +91 98300 51999 or email us at mpvdassociates@gmail.com. We are headquartered in Kolkata, West Bengal, but are serviceable nationwide through digital communication.