Latest Articles By Madan Murari

Section 206C of Income Tax Act The Section 206C of Income Tax Act deals with Tax Collected at Source (TCS). Under this provision, sellers are required to collect tax from buyers at the time of sale of certain specified goods or while receiving payments under specific transactions. The purpose is to ensure smooth tax collection

Guide to Stock Auditing and Stock-Taking Best Practices Effective stock auditing and stock-taking are crucial for maintaining accurate inventory records and ensuring smooth business operations. By regularly reviewing stock levels, businesses can detect discrepancies, reduce losses, and improve forecasting. Adopting best practices in inventory auditing not only strengthens compliance but also boosts efficiency, helping organisations

Impact of Inventory Management on Customer Satisfaction and Retention Effective inventory management is essential for delivering a smooth customer experience and building long-term loyalty. By keeping products in stock, fulfilling orders quickly, and minimising errors, businesses can meet customer expectations consistently. When stock levels are accurate and processes are efficient, customers are more likely to

How to File TDS Returns Online: Step-by-step Filing Process TDS is a mandatory tax deduction system in India. Every deductor who deducts TDS from payments must file TDS returns on time. If you want to learn how to file a TDS return online, this blog will guide you step-by-step through the process, including forms, due

TDS Section 194J: Professional and Technical Services TDS(Tax Deducted at Source) is a way to collect income tax in advance. One of the key TDS sections in India is Section 194J, which applies to payments made for professional and technical services. Whether you are a business owner, freelancer, or service provider, it’s important to understand

How to File Form PMT-09 on the GST Portal: A Stepwise Guide Form PMT-09 is a handy tool under GST that lets you shift wrongly paid amounts within your electronic cash ledger. This guide walks you through what GST PMT 09 is, when to file it, and a detailed step-by-step process to file it online.

GST for Bakery Products: Tax on Cakes, Bread, and Confectionery If you’re running a bakery, managing a confectionery business, or simply buying bread, cakes, and cookies, it’s important to know how these products are taxed under GST. Unlike packaged food with uniform rates, bakery items attract different GST slabs depending on their type, branding, and

Crockery GST Rate: Tax on Ceramic, Glass and Melamine Tableware Whether it’s a ceramic dinner plate, a glass bowl, or a melamine serving tray, crockery is a must-have in every Indian kitchen. But do you know how these items are taxed under the Goods and Services Tax (GST)? Let’s break down the crockery GST rate

GST on Wifi Services in India: Applicable Rates and Billing Details In today’s digital world, wifi services are no longer a luxury—they’re a necessity. From home plans to business broadband, every internet bill includes GST, but not everyone knows how much they’re paying. This blog breaks down the gst on wifi services, including data plans,

Sports Item GST Rate: Equipment and Accessories Whether it’s cricket bats, footballs, gym gear, or badminton rackets—sports equipment plays a crucial role in health, recreation, and professional training. But do all sports items attract the same GST rate? This blog breaks down the sports item GST rate in India and how different categories like gear,

GST on Tailoring Service in India Tailoring is a vital part of India’s clothing and fashion industry—from local darzis to designer boutiques. But is GST applicable when you get your clothes stitched? And if you run a tailoring business, should you charge GST? Let’s simplify the rules around gst on tailoring service in India, and

GST on Banking Services: Account, Loan, and Transaction Fees From savings accounts to home loans and credit cards, banking is a daily part of our lives. But behind every transaction, there’s often a small tax charged—yes, we’re talking about GST. In this blog, we’ll simplify how the gst on banking services works, what types of

GST for Marriage Hall Booking and Services Planning a wedding involves many costs—from catering to decorations, and one of the biggest expenses is the marriage hall. But did you know that GST is charged on wedding venue bookings too? This blog explains the gst for marriage hall, how much tax you pay on rent and

Difference Between Manual Accounting and Computerized Accounting Every business needs a reliable way to record its income, expenses, and other financial activities. Some still rely on an Excel sheet, while others use software to manage everything digitally. These two approaches are called manual accounting and computerized accounting. BOOK A FREE DEMO What is Manual Accounting?

GST on Advocates and Legal Services Legal services are essential for individuals and businesses alike. But are they taxable under GST? The answer depends on who is providing the service and who is receiving it. This guide breaks down the gst on advocates, its applicability, and how lawyers and clients should manage it. BOOK A

Receivables Management: Best Practices to Speed Up Cash Flow We all know that businesses require cash to survive, but what happens when customers delay payments? It can slow your business operations, hamper your growth, and create financial stress. Thus, having a solid receivables management process is so important. In this blog, we’ll explore what receivables

GST on Footwear in India: Price-Based Slabs Footwear is a daily necessity for some and a fashion statement for others. But whether you’re buying budget flip-flops or branded sneakers, GST affects the final price. This guide explains the gst on footwear, how pricing impacts tax rates, and what both buyers and retailers need to know.

GST on Paper Products: Printing, Writing, and Packaging Paper is used in education, offices, packaging, printing, and even hygiene products. But under the Goods and Services Tax (GST) system, not all paper items are taxed equally. In this guide, we explain how gst on paper varies based on the type and use of paper. BOOK

GST on Raincoats: Applicable Slabs and Classification Raincoats are a seasonal necessity, especially in monsoon-heavy regions of India. Whether made of plastic, PVC, or polyester, rainwear is widely sold across the country during the rainy season. If you’re a retailer, manufacturer, or buyer, understanding the raincoat gst rate helps with pricing and tax compliance. BOOK

GST on Popcorn in India: Tax for Packaged and Loose Forms Popcorn isn’t just a movie-time snack anymore—it’s a booming retail product sold in malls, cinemas, grocery stores, and online. Whether you sell or consume it, understanding the popcorn gst rate is important for accurate pricing and compliance under GST in India. BOOK A FREE

Iron GST Rate in India: Categories and Applications Iron is one of the most widely used materials in industries like construction, manufacturing, and infrastructure. Whether it’s raw iron, rods, or scrap, knowing the correct iron gst rate helps in proper billing, tax compliance, and cost planning. Let’s break down how GST applies to different forms

GST on Paints: What You Should Know If you’re building a new home, renovating, or running a paint business, it’s important to understand how the Goods and Services Tax (GST) affects the cost of paints. This blog breaks down everything you need to know about gst on paints in India—from rates to billing and impact

GST on Fertilizers in India: Comprehensive Guide Understanding the Goods and Services Tax (GST) on fertilizers is crucial for farmers, manufacturers, and retailers in India. The GST rates vary based on the type of fertilizer and its packaging. This guide provides an overview of the applicable GST rates, HSN codes, and answers to frequently asked

Depreciation in Accounting: Meaning, Types, and Real-World Examples In business accounting, not all costs are immediate. Some, like the purchase of machinery or vehicles, are investments that benefit the company over multiple years. This is where depreciation comes in. Depreciation is an accounting method used to spread the cost of a fixed asset over its

Fundamental Accounting Assumptions: Types and Parameters In finance, every business report is built on a set of basic beliefs—even if they are not directly mentioned. These beliefs are called fundamental accounting assumptions, and they help create a consistent and reliable foundation for preparing financial statements. In this blog, we’ll explain the meaning of accounting assumptions,

Corporate Accounting: Key Concepts, Regulations, and Financial Reporting Corporate accounting plays a critical role in maintaining financial transparency, regulatory compliance, and informed decision-making in business organizations. It encompasses the process of recording, classifying, summarizing, and analyzing financial transactions specific to corporations. Adhering to legal and regulatory standards, corporate accounting ensures that a company’s financial health

What is Cloud Accounting Software and How Does It Work? Cloud Accounting Software has revolutionized how businesses manage their financial operations. In today’s digital era, traditional accounting methods—relying heavily on desktop installations, spreadsheets, and manual bookkeeping—are being increasingly replaced with modern cloud-based solutions. These platforms provide secure, real-time access to financial data from any internet-enabled

Clear Difference Between Cost and Management Accounting Cost accounting and management accounting are both essential components of financial decision-making, yet they serve different roles. Understanding the difference between cost and management accounting helps businesses analyze financial data more effectively and apply insights for strategic and operational improvements. While cost accounting focuses on tracking, analyzing, and

GST on Electronic Items in India: Overview of Applicable Rates Electronic items are a staple in modern households—from televisions and washing machines to smartphones and kitchen appliances. But how are these products taxed? This blog provides a complete overview of the GST on electronic items, including applicable rates, HSN codes, and how it affects both

GST on Insurance Premiums: Life, Health, and More Insurance offers peace of mind during life’s uncertainties—but it also comes with taxes that often go unnoticed. Under the Goods and Services Tax (GST) regime in India, different insurance products—like life, health, and general insurance—attract varying tax rates. In this blog, we’ll explain the GST on insurance

GST on Petrol in India: Is It Included or Exempt? Petrol is one of the most essential commodities in India—fueling not just vehicles, but also affecting the cost of transportation, food, and other daily essentials. While the Goods and Services Tax (GST) has replaced most indirect taxes in India, a common question still arises: Is

GST in Garments and Apparel in India If you’re buying or selling clothes in India, knowing how GST in garments works is super important. From everyday wear to designer outfits, garments are taxed based on their price. Let’s simplify how it all works. BOOK A FREE DEMO What Is the GST Rate on Garments? The

Ecommerce Inventory Management and Payment Reconciliation Ecommerce Inventory Management is the backbone of a successful online business. From tracking stock across warehouses to reconciling payments from Amazon, Flipkart, and Shopify, managing it all efficiently is crucial. Without the right systems like inventory management software ecommerce sellers rely on, businesses risk stockouts, lost revenue, delayed shipments,

What is a Voucher: Benefits, Types and Components A voucher in accounting is a document that proves a financial transaction has taken place. It helps businesses keep track of money received or paid and ensures that every transaction is properly recorded. There are different types of vouchers, such as receipt vouchers, payment vouchers, journal vouchers,

TDS Return and Payment: Important Due Dates You Should Know TDS return and payment deadlines are crucial for smooth tax compliance. Missing them can lead to penalties and interest charges. Stay ahead by knowing the important TDS return due dates to avoid unnecessary costs. BOOK A FREE DEMO What is TDS Return? TDS Return is

Understanding Accrual Concept in Accounting: Meaning, Importance, and Examples Let’s say you are a business, and you recently made a sale on credit. Do you record the revenue when you make the sale, or do you wait until you actually receive the payment? This is where the accrual concept of accounting comes into the picture. This

The Role of ITC in Reducing Tax Burden for MSMEs The Input Tax Credit (ITC) enables MSMEs to minimize their taxation by claiming credit for taxes paid on purchases. It helps them balance their tax liabilities, increase their cashflows, bring down costs, comply with GST norms, and make their operations more efficient and competitive in

How Input Tax Credit Benefits Different Sectors: A Sector-wise Analysis Input tax credit is a crucial mechanism that allows businesses to claim a credit for the taxes paid on their inputs (goods and services). To better understand this, it’s essential to explore what input tax credit is in GST.Businesses can greatly reduce their overall tax

Common Challenges in GST Reconciliation and How to Overcome Them GST reconciliation compares GST data a taxpayer submits in their GST returns with the information available on the government’s portal. The business’s accounting records match sales and purchase data from various GST return forms such as GSTR1, GSTR2B, and more. Any errors, omissions, or mismatches

Everything You Must Know About MRO Inventory Management MRO inventory consists of consumables, equipment, and supplies utilised in MRO tasks. In other words, you use cleaning supplies, tools, maintenance equipment, and other miscellaneous items daily to keep your business working. Under inventory, thinking about the products you sell to customers is common. However, that’s only

A Complete Guide to TRAN 1 and TRAN 2 Forms The Goods and Services Tax (GST) regime in India introduced various forms for GST compliance, including the TRAN 1 and TRAN 2 forms. To make the transition to the new GST tax system easier for businesses, the Central Board of Excise and Customs (CBEC) has

How to Opt-Out of the Composition Scheme? To withdraw or opt out of the GST Composition Scheme, a taxpayer must file an application in the prescribed format of Form GST CMP-04. The application must also include details of stocks in finished and semi-finished goods, which must be provided in the form of GST ITC-01. After

Complete Guide to GST Composition Scheme The Composition Scheme is a simplified tax scheme introduced for small taxpayers. It aims to reduce the compliance burden on small businesses by allowing them to pay tax at a lower rate and file their returns on a quarterly basis instead of monthly. Businesses with annual revenue of up

Comparison of GSTR 3B vs GSTR 2A : Importance & Report BOOK A FREE DEMO GSTR 3B vs GSTR 2A GSTR 3B and GSTR 2A are different forms for filing GST returns, requiring different reconciliation methods. Taxpayers use Form GSTR 3B to declare their GST liabilities. The due date for filing GSTR 3B, a monthly

How to Cancel GST Registration Every business owner must stay aware of the process for cancelling their GST registration in case they need to discontinue their operations or for any other reason. The Goods and Services Tax (GST) system was introduced in India in 2017, and GST registration is mandatory for businesses with an annual

Cancelling GST Registration for a Sole Proprietor after Death As a business owner in India, it is crucial to understand the legal and regulatory requirements for Goods and Services Tax (GST) registration. GST registration is mandatory for businesses with an annual turnover above a certain threshold, and failure to comply with registration requirements can result

Concept of Place of Supply under Gst Explained Rules GST is a destination-based tax, meaning that the goods/services are taxed at the point of consumption rather than the point of origin. So that state would have the authority to collect GST where they are consumed. As a result, the place of supply is essential under

Value Of Supply Of Goods Or Services Between Related Person Under GST Under the Goods and Services Tax (GST) regime, transactions between related parties are subject to a special set of rules. One such rule is the determination of the value of the supply of goods or services between related persons, which can have significant

Vendor Reconciliation – Meaning, Format, Process Across businesses, vendor payments represent a major cash outflow. Accountants usually manage vendor reconciliation to run the business conveniently. Even though it could be laborious and time-consuming, this work provides a firm with important advantages and is occasionally disregarded. Vendor reconciliations must be used correctly to guarantee the best

Who Can Claim ITC in India Input Tax Credit is one of the significant features of GST. It is applied to every transaction conducted under GST. Understanding how to claim an input tax credit, when to claim one, what cannot be claimed, etc., is crucial for a registered person. Incorrect input tax credit claims may

ITC 01 Form – Claim ITC on New GST Registration Form GST-01 is used to claim Input tax credit by taxpayers that have newly registered under GST. Newly registered persons need to declare any existing stock of inputs, capital goods and/or finished goods at their place of business as on the day they obtained their

Optimising Credits In The Amended Rules For Input Tax Credit Utilisation To optimise the utilisation of input tax credit under the new rules, it is essential to claim all input tax credits as soon as possible. Late claims may be ineligible for credit. Businesses can apply for a refund of any excess input tax credit

What is O2A form under GST GST ITC-02A form is used by registered taxpayers who own businesses at multiple locations within a state or union territory to transfer their input tax credit (ITC) from the registered entity to a new one. This article provides a comprehensive understanding of the provisions related to the GST ITC-02A

Matching, Reversal and Reclaim of ITC Input tax credit (ITC) is the credit a registered taxpayer can claim for the tax paid on the purchases made for business purposes. Matching, reversal, and reclaiming of input tax credit refer to the process of reconciling the ITC claimed by the taxpayer with the tax liability payable to

Reversal of Input Tax Credit In GSTR-2 The tax that a person already paid at the time of the purchase of goods or services and which is eligible as a deduction from the tax due is referred to as an input tax credit. The reversal of input tax credit refers to the situation where a

Inverted Duty Structure Under GST When the input tax credit available on inputs is greater than the GST rate applied to the final product, it leads to an inverted duty structure. This raises the manufacturer’s tax burden, as he is buying inputs at a higher tax rate than what he is charging customers for the

Monthly Tax and ITC Summary Report The Monthly Tax and ITC Summary Report may be used to analyse and maintain track of the output taxes paid and the input tax credit used within any given period. When completing yearly returns, the taxpayer must provide a detailed accounting of all taxes paid and input tax credits

Section 43A – Procedure For Furnishing Returns & Availing Input Tax Credit The GST filing system has undergone multiple changes since its implementation. This change is meant to implement a new and efficient return filing structure under the CGST Rules, as recommended by the GST Council at its 27th meeting. Section 43A has been added

How To Claim ITC Under The New GST Return Filing System? GST returns are statements companies must submit to the government to record their taxable sales and purchases. On the other hand, the Input Tax Credit (ITC) is a credit that a business can claim on the GST paid on inputs and use to reduce

Adjustment of Input Tax Credit under GST BOOK A FREE DEMO Why is it necessary to reconcile the returns with the book of accounts? Prevent missing out on claiming ITC Sometimes, businesses forget to document the invoices they receive. Reconciliation helps in ensuring that the available ITC is claimed correctly and on time. Maintaining Internal

How To File ITC-02 on The GST Portal? As GST taxpayers, it is important to stay compliant with the various rules and regulations set by the government. One such compliance requirement is filing ITC-02 forms on the GST portal. ITC is claimed by filing several forms on the GST portal, one of which is ITC-02.

All About Rule 86B Under GST: Restriction on ITC Utilisation In Electronic Credit Ledger BOOK A FREE DEMO Exceptions to the Rule Rule 86B allows certain exceptions, as mentioned below: If the individuals listed below paid more than Rs. 1 lakh in income tax pursuant to the Income Tax Act, 1961 The registered person Proprietor,

How to Claim Maximum ITC: Time Limits and Tips As a business owner, it’s important to stay up-to-date on tax laws and credits that can help you save money and reduce your tax burden. One tax credit that may be available to you is the Input Tax Credit (ITC). This credit allows businesses to offset

What Expenses Can Be Claimed as Input Tax Credit ITC? This article explains which expenses businesses can claim as Input Tax Credits and how to calculate and claim them. For small business owners, understanding the ins and outs of ITC will help save a significant amount of money. GST software can help you readily claim

Availing ITC As Per Section 16 (2) (Aa) In India, the Input Tax Credit (ITC) is a crucial element of the Goods and Services Tax (GST) system. As per Section 16 (2) of CGST Act, 2017, Businesses must submit claims for Input Tax Credit (ITC) that only shows in GSTR-2B starting January 1st, 2022. This

Rules For Input Service Distributor Under GST Laws One of the provisions of GST is the concept of an Input Service Distributor (ISD). ISD is a mechanism that allows taxpayers with multiple branches to distribute the input tax credit on the input services received by the head office or central administration to the respective branches.

What is Reversal of Input Tax Credit The tax that a person already paid at the time of the purchase of goods or services and which is eligible as a deduction from the tax due is referred to as an input tax credit. The reversal of input tax credit refers to the situation where a

What is GST Reconciliation? Every data point in the records of a business is closely tracked by the GST authorities. Any discrepancy can lead to unnecessary scrutiny, audits, or even suspension of GST registration by the authorities, which can be highly cumbersome for a business. Thus, proper reconciliation of GST is an absolute must. Reconciliation

What Are Special Cases Where ITC is Not Applicable? Input Tax Credit is a key differentiator of GST from previous tax regimes. For taxes paid on purchasing business-related supplies, taxpayers can claim Input Tax Credit to lower their tax obligations on their sales. However, GST law mentions several cases where taxpayers are not allowed to

How to Claim ITC in India In order to claim ITC, a business owner must pay the supplier for the received supplies, including tax, within 180 days from the invoice’s issuance. If the purchaser fails to do so, the credit amount they could have availed will be included in their output tax liability. Once the

What is Input Tax Credit on Common Credit Businesses often purchase goods for business as well as personal use. However, Input Tax Credit is only allowed on goods used for business purposes. This is where the concept of common credit comes into the picture. In this article, we will provide a thorough explanation of common

Input Tax Credit on Job Work Under GST Input Tax Credit (ITC) on job work in GST is an essential aspect of the Goods and Services Tax (GST) system that allows businesses to claim tax credit for inputs used in the manufacturing of goods or providing services. In the GST system, businesses can claim ITC

Claiming ITC on Transfer of Business A registered taxpayer may transfer the input tax credit accessible and excess in his electronic credit ledger to another business in case of a business transfer by way of sale, merger, or demerger by filing a declaration in GST Form ITC-02. The new business entity must register for Goods

What is GSTR 1? All taxpayers who have registered under GST are required to file their GST returns as per GST Law. By filing these returns, taxpayers and the government get clarity on the amount of GST to be paid. To file these returns correctly and with minimal fuss, the taxpayer must have GST-compliant invoices

GST Compliance Rating This rating can be useful for businesses to showcase their compliance level to potential customers, lenders, and investors. Additionally, it can also help tax authorities to identify businesses that are not compliant and take necessary action. Overall, GST Compliance Rating significantly promotes GST compliance and builds a transparent and efficient tax system

Frequently Asked Questions Regarding the Composition Scheme The Composition Scheme is a simplified tax system designed for small businesses in India. Its primary aim is to ease the compliance burden on small taxpayers and encourage more businesses to become tax compliant. However, small business owners may question the scheme and its rules. This section will

Complete Guide to Input Tax Credit under GST As a business owner and taxpayer, you need to understand Input Tax Credit to be able to maximise your tax benefits and reduce unnecessary tax liabilities. Input Tax Credit allows businesses to claim a credit for taxes they have paid on the purchase of goods and services

The Different Types of GST in India – CGST, SGST, IGST, and UTGST The exchange of goods and services within and across the States can be summed up as interstate and intrastate transactions. Intrastate transactions include the collection of CGST and SGST, whereas Interstate transactions include only IGST. BOOK A FREE DEMO A Brief Overview

Transition of The Old Input Credits under VAT to GST – Tran 2 BOOK A FREE DEMO Form Tran 2 can be filed by a dealer/trader registered under GST but not under the old regime. A dealer who doesn’t have VAT or excise invoices for stocks they hold can use TRAN 2 to claim credit

Transition of The Old Input Credits under VAT to GST – TRAN 1 BOOK A FREE DEMO Making sure their registered firms under GST do not miss out on the tax advantages and input credits of the previous system is a top priority. These taxes may have been paid when purchasing inputs, raw materials, semi-finished

ITC Reporting In GSTR-9: GSTR-2A Reconciliation, Challenges, And Clarifications BOOK A FREE DEMO Under GST, taxpayers must file annual returns in the form of GSTR-9, which provides a summary of all the transactions undertaken during the financial year. One of the main aspects of GSTR-9 is to reconcile the ITC claimed in GSTR-3B with the

Valuation of Supply Rules under GST GST is an indirect tax levied on the supply of goods and services in India. It was introduced to replace many indirect taxes that both the central and state governments previously levied. Under GST, the valuation of goods and services is an essential aspect that determines the amount of

ITC 01 Form – Claim ITC on New GST Registration BOOK A FREE DEMO Regular businesses would have inputs, capital goods, and finished products stocked at their location on the day they registered for GST. Before acquiring GST registration, the buyer cannot claim the GST paid on such purchases as an Input Tax Credit (ITC).

Amendments in GSTR-1 and Error Messages It’s usual to make mistakes while submitting your GST return. However, since the ability to make modifications and adjustments in the GST forms is restricted, it is essential to have a solid understanding of the errors that may be rectified, as well as the procedure for doing so and

Optimising Credits In Amended Rules or Input Tax Credit Utilisation The most effective way to optimise input tax credit utilisation under the amended rules is to ensure that all input tax credits are claimed as soon as possible, as late claims may not be eligible for credit. Additionally, businesses should apply for a refund of

What is the Input Tax Credit under GST in India? Input Tax Credit is one of the most significant features of GST. It applies to every transaction conducted under GST. Understanding how to claim an input tax credit, when to claim one, what cannot be claimed, etc., is crucial for a GST registered Individual. Incorrect