A day after the landmark Goods and Services Tax (GST) came into effect in the country, the government on Sunday moved to dispel myths about the new taxation system. Revenue Secretary Hasmukh Adhia, took to Twitter to clear seven misconceptions about the new tax regime. “There are seven myths going around about GST which are not true. I want to dispel them one by one in form of myth and reality. Pl see these,” Adhia tweeted before listing out myths and realities.
The IAS officer later also responded to questions on Twitter. The government has also launched a Twitter account -- @askGST_GoI – to answer any query related to the GST.
Here are 7 myths and realities listed out by Dr. Hasmukh Adhia:
Myth 1: I need to generate all invoices on computer/ internet only.
Reality 1: Invoices can be generated manually also.
Myth 2: I need internet all the time to do business under GST.
Reality 2: Internet would be needed only while filing monthly return of GST.
Myth 3: I have provisional ID but waiting for final ID to do business.
Reality 3: Provisional ID will be your final GSTIN number. Start business.
Myth 4: My item of trade was earlier exempt so I will immediately need new registration before starting business now.
Reality 4: You can continue doing business and get registered within 30 days.
Myth 5: There are 3 returns per month to be filed.
Reality 5: There is only 1 return with 3 parts, out of which first part filed by dealer and two other parts auto populated by computer.
Reality 6: Those in retail business (B2C) need to file only summary of total sales.
Myth 7: New GST rates are higher compared to earlier VAT.
Reality 7: It appears higher because excise duty and other taxes which were invisible earlier are now subsumed in GST and so visible now.