GST on Restaurants: Uniform 5% tax rate on food bills in both AC and non-AC eat outs.

GST council on Friday has decided to fix the GST on Restaurants reducing tax brackets and hence the burden.

gst on restaurants

Here’s why eating out could become cheaper:

5% GST on…

  1. All independent restaurant Ac or non-AC.(which previously was 12% and 18% respectively)
  2. Takeaway food.
  3. Restaurants in hotels with room charge less than Rs 7500.

[No input tax credit for these Restaurants]


18% GST on…

Continue reading “GST on Restaurants: Uniform 5% tax rate on food bills in both AC and non-AC eat outs.”

Latest Updates on GST Rate Changes

Summary of 23rd GST Council

The GST Council has reviewed the tax rates, returns filing cycle, Late filing fees and much more on 10th Nov 2017, bringing in some relaxation to businessmen, traders, and consumers.

Update on GST

All things considered, tax rates on 177 items are brought down to 18% from 28% to provide relief to consumers and businesses.

  • Many of the items and services which were earlier taxed at 28% now attracts the tax of 18% only. The list includes wire and cables, Furniture, mattress trunk, suitcase, detergents, shampoos, hair cream, hair dyes, makeup, fans, lamp, rubber tubes and microscope. Chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave, deodorant, detergent and washing powder, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches.

Continue reading “Latest Updates on GST Rate Changes”

Reverse Charge under GST – Buying and Selling between Registered and Unregistered Dealers.

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Reverse Charge under GST

Reverse Charge is a system where the receiver of the goods and/or services is liable to pay GST instead of the supplier. Sounds simple? But it isn’t! Here’s a break down of its cause and effects.

Reverse Charge provision states as:

The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

Continue reading “Reverse Charge under GST – Buying and Selling between Registered and Unregistered Dealers.”

Watch out! GST for SME’s can help as well as hurt

GST for SME's pros and cons
GST for SME’s had been introduced to make indirect tax administration much more hassle-free. But, instead, it seems to have caused much chaos in the country. In fact, there have been many GST misconceptions running in traders minds, causing confusion & fear among them.

Well if you’re a trader or planning to become one, Consider reading these to feel like being on top of the world: Continue reading “Watch out! GST for SME’s can help as well as hurt”

What every business owner should know about the GST India

GST basics for Business Owners

GST India – Goods and Service Tax

What is GST India??

  1. GST is a combined tax replacing all the indirect tax levied by State and Central government of India.
  2. Basically, GST = Central Sales Tax + State Sales Tax + Excise duty + Service Tax + CST + Surcharge + CESS + Luxury Tax + Entry Tax + Purchase duty + Vat + Entertainment Tax and many more…

Who should prepare for GST India?

You have to register under GST India if your/you’re

  1. Annual Turnover crosses 20 Lakhs.
  2. Website exists from where the supply of goods and services takes place.
  3. Registered for VAT under previous law
  4. Making Interstate transactions
  5. Paying tax under Reverse Charge mechanism.
  6. The producer of the Final Product.
  7. A Service Aggregator like OLA, Uber
  8. An E-commerce Aggregator/Operator like Amazon, Snapdeal etc.
  9. A Supplier to ECommerce aggregator.
  10. A Casual Taxable person – self-employed.
  11. A Non-Resident taxable person having no place of business.

How does GST India impact you?

If you’re a business owner, you will witness a complete transformation of the taxation system.

  1. Firstly, all registered merchants get a GST registration number. Their permanent account number linked to it.
  2. Secondly, there will be additional 36 returns per year to be filed on a single registration.
  3. Moreover, every Financial Transaction will come under the close Scrutiny of the Tax Department.
  4. That being the case, a merchant will be answerable to even the Smallest Transaction he does without sufficient knowledge of intricacies of the law.
  5. Additionally, they will be increased Compliance Burden: Three returns in a month to maintain will make their job harder. In other words, they will need to maintain a proper account of everything they do.
  6. Eventually, the merchant would need to stay updated with technology since the way in which accounts are required to be maintained under GST, they can only be maintained if a Proper Technology is used.

Why GST and Why Not?

Well if you’re a small trader or planning to become one, here are some eye-openers about GST India that makes you smile:

  1. Starting a Business gets within your reach: Since there would be lesser fees of procedural requirements and zero complications of different indirect tax rules across different states.
  2. Small Traders become Small Taxpayers: There has been an increase in the basic exemption limit to 20 lakhs, which is a 75 percent relaxation in the limit for small traders and manufacturers.
  3. Speed delivery of your Goods/Services: As the entry tax at check posts and interstate borders is expedited.
  4. Happy Manufacturers as well as Consumers: Due to the reduction of tax both for the manufacturer and the end user. For the simple reason that the manufacturer gets the benefit of input tax credits and the end-user pays only the tax charged by the last dealer or the retailer in the supply chain.

Every advantage may seem to have its own disadvantage. When in fact, GST India need not negatively impact SMEs (Small to Medium Enterprises). Whereas, it could surely increase the burden of more compliance if you aren’t prepared well.

  1. Managing ambiguity might become the biggest challenge.
  2. Moving from current tax era to GST would be a Period of Pain and inconveniences if SME’s aren’t embracing technology and processes in their accounting work. To put it briefly, this would require SME companies to inevitably have an Accounting Software System for billing and filing.

Where’s the solution?

Expectedly, businesses failing to comply with GST are failing in business too. All in all, Is my business GST-ready? Is the question to yourself. At any rate, even high-performing rebels in your industry need to ‘Manage up’.  To put in other words, you need to “Manage up” too.

Fact is that under GST India- ”The process of tax payment, Tax credit, and refund of GST would be carried out electronically”.

Evidently, being GST compliant needs updating your Digital Accounting System.  Again, with nearly 70 percent of small businesses in the country are yet to adopt digital technology in their business format, it is going to be a huge challenge for them to computerized themselves in the shortest period.

Fortunately, there is Accounting & Billing software like VYAPAR, which is GST ready. For SMEs, using such accounting software could be a good starting point. Using such Billing software results in a reduction in paperwork and time wasted in paying taxes.

Click here to see how to install Vyapar App to your Desktop to remain GST compliant.


Vyapar is now GST ready.

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Accounting software, GST Invoice, GST software, Invoicing software, Inventory management, Small Scale Business in India

It is often seen when a disruption in the market is initiated, a large segment of the businesses are inconvenienced. GST is touted to be the biggest disruption in the Indian Economy. It has affected businesses of all sizes in some or the other way. Are you suffering due to its complexity? Intimidated by the reports of fines imposed for non-compliance to GST? Worried that you do not have the requisite tools and systems to update your account books? Continue reading “Vyapar is now GST ready.”

Post GST implementation effects for Small Businesses in India

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GST compatible software, Vyapar App, Invoicing software, Inventory software

Prime Minister Narendra Modi billed GST as a ‘good and simple tax’ that will end harassment of small businesses. However, the reality remains quite different. Hailed by experts and economists that GST will be beneficial in the long run, small businessmen are still unclear about the nuts and bolts of the new tax regime. Continue reading “Post GST implementation effects for Small Businesses in India”

GST Invoice Facts

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Accounting, Invoicing, GST India, Small business

In its bid to allay concerns of traders on invoice generation post-GST, the CBEC, under the Department of Revenue, said: “There are some apprehensions in the trade circles that GST invoice have to be issued as per prescribed format and that issuing GST invoice is going to be burdensome process. This is not correct. Some important facts about GST provisions relating to invoice are highlighted for information of all stakeholders.” Touted as the biggest reform since Independence, the incoming indirect tax regime is aimed at creation of a common market, preventing ‘tax-on-tax’ and making goods and services cheaper. Continue reading “GST Invoice Facts”