Goods and Services Tax (GST) is an indirect tax that has replaced the multiple taxes levied on goods and services by the Central and State government. GST was introduced with an aim to simplify the tax structure and bring transparency to the taxation system. However, the implementation of GST has created confusion among taxpayers, especially small and medium business owners and startup founders.
In this article, we will address some of the frequently asked questions related to GST, including e-way bill rules, credit of KCC, and RWA charges.
Under GST, an e-way bill is a document that needs to be generated online for the movement of goods worth more than Rs. 50,000 from one place to another. The e-way bill contains details such as the name of the consignor, consignee, and transporter, and the details of the goods being transported. The e-way bill is valid for the duration mentioned in the bill, and it needs to be carried along with the goods that are being transported.
However, there are certain exceptions to e-way bill generation, including the movement of goods within certain distance limits, the transport of goods by non-motorized conveyance, among others. It is important to understand the e-way bill rules to avoid penalties and fines.
Kisan Credit Card (KCC) is a government scheme that provides credit to farmers for farming activities. Under GST, the credit of KCC can be claimed by the farmer for payment of GST on the supply of goods and services related to farming activities.
The KCC credit can be claimed by the farmer for the tax paid on any inputs or services that are used for farming activities. However, it is important to note that the KCC credit can only be claimed for the farming activities that are exempted from GST. The credit cannot be claimed for activities that are subject to GST.
Residential Welfare Association (RWA) charges are the charges that are collected by the RWA from its members for the maintenance of the residential society. Under GST, RWA charges are taxable if the annual turnover of the RWA is more than Rs. 20 lakhs. If the annual turnover is less than Rs. 20 lakhs, the RWA charges are exempted from GST.
However, it is important to note that the exemption limit of Rs. 20 lakhs is applicable only if the RWA is not providing any other services that are taxable under GST. If the RWA is providing any other taxable services, the exemption limit of Rs. 20 lakhs is not applicable, and the RWA charges will be taxed under GST.
Understanding GST rules and regulations is essential for smooth business operations. E-way bill rules, KCC credit, and RWA charges are some of the common questions that taxpayers have related to GST. By understanding these rules and regulations, businesses and startups can avoid penalties and fines and ensure compliance with the GST laws.
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