Latest Articles By Madan Murari

What Is Aggregate Turnover? Definition and How to Calculate It Aggregate turnover is a key concept in the GST composition scheme . Under Section 2(6) of the CGST Act, aggregate turnover includes: taxable supplies exempt supplies exports of goods or services or both inter State supplies of persons having the same PAN It is computed on… Read more

What Is GST Registration Cancellation? GST registration cancellation is the formal deactivation of a taxpayer’s GST registration. Once cancelled, the taxpayer: cannot issue tax invoices showing GST in that GSTIN cannot collect GST in that registration cannot continue filing regular GST returns for that registration after the effective date of cancellation generally has to file a… Read more

If you deduct TDS from salary, rent, contractor payments, or professional fees, you must file the applicable TDS return or challan-cum-statement and deposit the deducted tax on time. Missing either deadline can attract a late filing fee of Rs 200 per day under Section 234E where a statement is filed late, interest for late deduction or… Read more

What Is Depreciation? Depreciation is the systematic, non-cash allocation of a tangible fixed asset's cost over its estimated useful life. It represents the portion of an asset's cost consumed in generating revenue during a given accounting period, matching the cost of using the asset to the income it helps produce. Core depreciation formula Depreciable Amount =… Read more

A voucher in accounting is a written document that records and authorises a financial transaction. Before a transaction is posted in the books, whether it relates to rent paid, customer money received, or stock moved between godowns, it should be supported by a proper voucher. This guide explains the main types of accounting vouchers, their journal… Read more

What Is GST? A Brief Overview Goods and Services Tax, or GST, is India’s unified indirect tax system that came into force on 1 July 2017. It replaced several central and state levies such as VAT, service tax, central excise duty, entry tax, octroi, and Central Sales Tax, bringing a large part of India’s indirect tax… Read more

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 that they use for business purposes. However, there are… Read more

PVC tape is widely used in electrical work, electronics, and small repair jobs. Electricians use it for insulation, joint covering, and wire marking. Packaging and general repair jobs also use PVC based sealing tapes. Under GST, these different PVC tapes must be classified correctly so that invoices, e invoices, and returns are accurate. If you deal… Read more

Photo frames are popular decorative items used in homes, offices and shops to display pictures and certificates. Knowing the correct photo frame HSN code helps traders, gift shops and e commerce sellers charge the right GST and keep paperwork clean.

RAM, or Random Access Memory, is a key computer part used in laptops, desktops and servers. It directly affects the speed and performance of a system. For IT dealers, computer shops, distributors and system integrators, using the correct HSN code for RAM is important for clean GST invoicing and smooth input tax credit. In this guide,… Read more

Mild steel sheets and plates are basic items in construction, fabrication, and engineering. Under GST, they fall under iron and steel chapters and need the correct MS sheet HSN code.

Freight is the amount you pay to move goods from one place to another. Under GST, freight charges are treated as a service and must be shown with the correct HSN or service code on the invoice. When you know the right freight HSN code, you can charge GST correctly, claim input tax credit smoothly and… Read more

Copper scrap is widely generated from old wires, cables, industrial parts and machinery. It is collected, processed and reused by metal recyclers and manufacturers. Under GST, copper scrap must be classified under the correct HSN code, as scrap metal is treated differently from finished copper products like rods, sheets or wires.

Chana is one of the most commonly traded pulses in India. It is sold in many forms such as whole yellow chana, split chana and chickpeas used in different food products. Under GST, all these forms need to be classified under the correct HSN heading so that invoices, returns and reports stay accurate. In customs and… Read more

Agarbatti and incense sticks are used daily in homes, shops and places of worship across India. For GST compliance, traders and manufacturers must use the correct HSN code on invoices and returns. This guide explains the main HSN code for agarbatti, how different types such as scented and herbal sticks are classified, and the typical GST… Read more

Whether you’re flying for business or leisure, your airline ticket includes more than just the base fare. One major component is Goods and Services Tax (GST), which varies based on travel class and flight type. In this blog, we’ll break down the gst on air tickets, explain how rates differ between economy and business class, and… Read more

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 goods hsn code and GST rate in India and how different categories like gear, clothing, and fitness accessories… Read more

If you’re buying or selling clothes in India, knowing how GST on clothes works is super important. From everyday wear to designer outfits, garments are taxed based on their price. Let’s simplify how it all works. Get a Free Trial – Best Accounting Software For Small Business

Tobacco is one of the most heavily taxed products in India. Under the Goods and Services Tax (GST) regime, tobacco products like cigarettes, chewing tobacco, and gutkha are subject to both GST and an additional compensation cess. This dual-tax approach is designed to discourage tobacco consumption while generating revenue for public welfare. In this blog, we’ll… Read more

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, discuss the types of accounting assumptions,… Read more

We all know that businesses require cash to survive, but what happens when customers delay payments? It can slow down 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 management is, why it matters, and the best practices… Read more

GST compliance is not only about filing returns. It starts from the first invoice you create and continues through purchase entries, tax ledgers, and reports. When GST work is done manually, errors happen easily, and correction takes time. That is why many businesses now prefer GST-ready software that keeps invoicing and accounting linked with GST rules.… Read more

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 whether they’re fresh or preserved.

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 charges attract GST, and how it impacts both customers and… Read more

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 paper hsn code and gst rate varies based on the type and use of paper.

This guide explains the latest TDS (Tax Deducted at Source) rules in India that apply to online gaming winnings and digital transactions. With the growth of gaming platforms, e-commerce, and digital payments, the government has introduced clear rules to track income, prevent tax evasion, and ensure transparency.

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 at the source itself and widen… Read more

TDS (Tax Deducted at Source) certificates are vital proof that tax has been deducted and deposited with the government on behalf of a taxpayer. In India, these certificates primarily include Form 16 and Form 16A, which help individuals and businesses claim TDS credits while filing their Income Tax Returns (ITR). Understanding the purpose, components, and process… Read more

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 dates, documents, and common mistakes to avoid.

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 make informed decisions and optimise their resources.

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 one part of the equation. Your business also requires… Read more

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, and GST errors. In this guide, you’ll… Read more

If you are searching for zero rated GST items, it is important to know one thing first. In India, zero rated is mainly decided by the type of supply, not by a product wise item list. That is why the same goods can be normal rated in India, but become zero rated when supplied as exports… Read more

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.

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 applicable on petrol in India? In this blog, we’ll break… Read more

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.

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 premiums, including rates for different policies, applicable HSN codes… Read more

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 of iron in India.

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 in India and see how different types of tableware—ceramic, glass,… Read more

The rapid adoption of digital banking and real-time payment systems is transforming the way consumers and businesses manage money. From instant transactions to AI-powered services, modern banking is moving beyond physical branches to offer convenience, speed, and security like never before.

Accounting standards create a common language for financial reporting across different countries. The three most recognized frameworks are IFRS, US GAAP, and Ind AS. Understanding these standards helps businesses, especially those with global operations, maintain transparency, ensure compliance, and attract investors.

Accurate business accounting begins with proper revenue and expense tracking. Without it, companies risk cash flow problems, missed tax deadlines, and poor decision-making. Whether you’re a small startup or a growing enterprise, understanding where every rupee comes from and goes is critical for financial stability and long-term success.

Accounting is the backbone of every successful business. It provides a structured way to record, analyze, and communicate financial information, helping companies stay organized, compliant, and profitable. From tracking daily transactions to guiding long-term strategies, accounting is essential for businesses of all sizes and for maintaining financial stability.

The Union Budget for the financial year 2026–27 was presented on February 1, 2026, in Parliament. This year’s Budget focuses on global economic uncertainty, realignment of the supply chain, and evolving investment dynamics, while reinforcing India’s commitment to sustained growth and fiscal discipline.

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 device, enabling business owners, accountants, and teams to collaborate and make… Read more

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 accounting type and rule ensures transactions are recorded when… Read more

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.

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 is accurately reflected to internal and external stakeholders.

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 controlling costs, management accounting is broader, encompassing planning,… Read more

In today’s digital-first economy, businesses sell across multiple channels—physical stores, online marketplaces, eCommerce websites, and even B2B platforms. With so many moving parts, keeping track of stock levels in real time is no longer a luxury, it’s a necessity. Real time inventory tracking combined with multi-channel inventory management ensures that stock data is always accurate, up-to-date,… Read more

Managing inventory effectively is one of the most challenging tasks for any business. Different industries from retail to healthcare face unique challenges that can impact stock levels, customer satisfaction, and profitability. This is where inventory analysis methods and modern analytics tools come in. They provide data-driven insights to help businesses minimize errors, forecast demand, reduce waste,… Read more

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 return, boosting retention and overall business growth.

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. This article aims to provide an in-depth understanding of… Read more

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 possible business performance.

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 to the Central Goods and Services Tax Act 2019. This article will explain… Read more

Buying or selling property in India involves more than just signing an agreement and paying the price. Tax Deducted at Source (TDS) rules apply when the property value crosses a specified limit. To stay compliant, buyers must deduct TDS, deposit it to the government using Form 26QB, and issue Form 16B to the seller. Here’s a… Read more

Filing TDS and TCS returns is a critical part of tax compliance for businesses and individuals who deduct or collect tax at source. Each form serves a unique purpose based on the nature of the payment and the recipient. This guide explains Forms 24Q, 26Q, 27Q, and 27EQ in detail, covering applicability, due dates, and filing… Read more

Government departments and public sector bodies handle huge volumes of payments every month. To ensure tax compliance, these entities must deduct Tax Deducted at Source (TDS) on eligible payments. The rules for government deductors are slightly different from those for private businesses, with specific responsibilities and timelines.

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, routers, dongles, and everything you need to know as a consumer… Read more

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 how it applies to both customers… Read more

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.

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 on pricing.

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 services, and what both venue owners and… Read more

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.

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 questions.

Payroll processing is one of the most crucial functions in any organization. It involves calculating employee salaries, managing tax deductions, ensuring compliance with government regulations, and maintaining accurate payment records. Effective payroll management not only ensures timely salary disbursement but also builds trust and transparency between employees and employers.

Prepaid expenses are payments made in advance for goods or services a company will receive in the future. Instead of recording the full amount as an expense immediately, the payment is treated as an asset and gradually expensed over time as the benefit is used.

The going concern concept is a fundamental accounting principle that assumes a business will continue operating in the foreseeable future. It means the company is expected to remain in business long enough to realize its assets and fulfill its obligations without the need to liquidate.

The full disclosure concept is a fundamental accounting principle that requires companies to provide all information necessary for users to make informed decisions. By presenting complete and transparent details in financial statements and accompanying notes, businesses build trust and ensure that investors, creditors, and other stakeholders can accurately assess financial health.

In an increasingly regulated financial world, financial compliance ensures that companies adhere to the legal and ethical standards set by governing bodies. It prevents fraud, promotes transparency, and builds investor confidence. Whether it’s a bank, insurance firm, or fintech startup, compliance is the backbone of trust and sustainability.

Accurate revenue and expense accounting is critical for strong financial health. Yet many businesses make avoidable mistakes that distort reports, create tax problems, and hurt decision-making. Knowing the most common accounting errors can help you stay compliant and profitable.

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.

For small business owners, understanding the ins and outs of ITC can save significant money. Thus, using GST software can help you claim in accordance with GST requirements by simplifying the process and ensuring you maximise your ITC. This article explains which expenses businesses can claim as Input Tax Credits and how to calculate and claim… Read more

Compare GSTR 3B vs GSTR 2A and understand their importance in tax filing. Learn how Busy simplifies GST compliance with accurate reports and insights.

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 the market.

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 tax. A manufacturer or service provider cannot submit Form GST TRAN 2. When a supply is sold, it… Read more

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 final product. The higher tax burden… Read more

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). After receiving GST registration, taxpayers can claim an input tax credit for GST paid on… Read more

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 between the data sets are identified and corrected.

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 tax to be paid. GST valuation rules… Read more

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 result in fines, interest, and taxes.

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 the government. Matching refers to the process… Read more

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 input tax credit claims may result in fines, penalties, interests, and… Read more

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 in the context of GST… Read more

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 for both sales and purchase… Read more

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 items, and final goods. On July 30th, these taxes will be accessible to most enterprises as an input… Read more

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 business owner needs to reverse the credit he… Read more

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 claim ITC. In this article, we will discuss the cases… Read more

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 ITC available in GSTR-2A. However, reconciling ITC between these two forms can be challenging… Read more

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 credit, what it is, how it is calculated and… Read more

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 the deadlines associated with it. Registered taxpayers… Read more

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. ITC-02 is used to claim ITC on goods or… Read more

Learn how to adjust Input Tax Credit under GST for compliance. Maximize benefits and simplify tax processes with Busy. Click to explore step-by-step guidance!

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 and Services Tax (GST) and provide… Read more

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 business owner needs to reverse the credit he… Read more

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 applying, the taxpayer has 30 days to intimate… Read more

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 any excess input tax credit within the stipulated period and claim… Read more

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 Form and outlines the steps that both… Read more

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 taken throughout the year. The report may… Read more

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 implications for GST compliance and liability. This value is particularly important because it… Read more

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 provision enables taxpayers to claim ITC on the basis… Read more

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 liability by effectively utilizing input tax credit benefits specific to… Read more

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 on inputs sent for job work, subject to certain… Read more

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 created two forms – GST TRAN 1 and GST TRAN 2.… Read more

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 within the specified period and use it to offset any tax payable… Read more

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 explore some commonly asked questions and provide answers… Read more

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 GST registration. They do this through filing Form GST-01, which is… Read more

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 the GST liability on the output. The new GST return filing system… Read more

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 purchaser pays the total amount to the… Read more

Rule 86B puts a cap on how much of your GST liability you can pay through Input Tax Credit in the electronic credit ledger. In simple words, once you cross a certain turnover in a month, you must pay at least a small part of your GST in cash . This guide explains: When Rule 86B… Read more

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 GST because it is the focal point of all its… Read more

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 the tax they pay on inputs (goods and services used… Read more

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 in India.

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 in penalties and legal repercussions. In the event of a… Read more

Courier services play a key role in e commerce and business supply chains. They handle door to door delivery of documents, parcels and small consignments within India and across borders. Under GST, courier activity is treated as a service and is classified under a Service Accounting Code rather than a goods HSN code. Most private courier… Read more

Installation services are common in many industries, such as installing machines, air conditioners, CCTV systems, furniture and more. Under GST, these are treated as services and classified using Service Accounting Codes instead of normal goods HSN codes.

Wooden furniture is used in homes, offices, hotels and restaurants. Common items include wooden chairs, tables, beds, and sofas. Under GST, wooden furniture needs to be classified under the correct HSN code so that GST rate and input tax credit are handled properly. Carpenters, small furniture workshops and large furniture brands all must understand the wooden… Read more

Scissors are widely used in tailoring, garment cutting, office work, crafts and home use. Under GST, these products are classified using the Harmonised System of Nomenclature so that taxation on different types of scissors stays consistent and easy to track in returns. In most cases, tailor scissors, office scissors and general hand scissors are all grouped… Read more

Safety helmets and hard hats are compulsory safety gear at construction sites, factories and many engineering workplaces. For GST, these products must be billed with the correct HSN code so that tax rate, input tax credit and returns stay accurate. Using the correct heading also helps during departmental checks and when you prepare e way bills.… Read more

Rice is one of the most important food grains in India. It is sold in many forms such as paddy, brown rice, basmati rice and broken rice. For farmers, traders, millers and retailers, using the correct rice HSN code is important so that GST and records remain correct. In this guide you will learn how rice… Read more

Plastic chairs are widely used in homes, offices, events, restaurants and outdoor spaces. They are light, durable and low cost. Under GST, plastic chairs are treated as plastic furniture and are covered under specific HSN codes. Correct classification is important for manufacturers, distributors, rental companies and event managers who deal in large quantities of chairs and… Read more

Pencils are basic stationery items used in schools, offices and by artists. They are available in many forms such as graphite pencils, coloured pencils and mechanical or propelling pencils. For GST compliance, each of these needs to be classified under the correct HSN heading when you raise invoices or file returns. The customs and GST tariff… Read more

Jewellery includes ornaments made from gold, silver, platinum, diamonds and imitation materials. Jewellers and traders must use the correct jewellery HSN code so that GST and customs duties are applied properly. This guide explains the main HSN codes used for gold and diamond jewellery, how these codes affect taxation and why correct classification is important for… Read more

Hammers are basic hand tools used in carpentry, construction, fabrication and many industrial jobs. Under GST, these tools must be reported with the correct HSN code so that tax calculation and returns stay accurate. In most cases, carpentry hammers, claw hammers and sledge hammers are covered under the hand tools heading for hammers. These tools usually… Read more