NEW DELHI, May 23, 2017 /PRNewswire/ --
"Goods and Services Tax will not only create a unified network of all the entities involved in a taxable supply chain, but it is also expected to digitize business in India to a great extent. It is going to change how India does business today," said Manoj Yadav, Director-Indirect Tax at Neeraj Bhagat & Co., Chartered Accountants.
Goods and Services Tax Network (GSTN) has been set up with the objective of providing IT infrastructure for GST implementation in India.
Accordingly, provisions have been made in GST law which requires filing of all returns under GST through GST Portal only.
Government has brought forward some of the key provisions as contained under Model GST law for making payment of taxes.
Electronic Tax Liability Register
Under GST law, every registered taxable person is required to maintain an electronic tax liability register in the prescribed FORM GST PMT-1 on GST portal in an electronic format. All amount payable under GST will be debited from this register.
Accounting Treatment
Model GST law requires that any of the above-mentioned payment has to be made by way of debiting the Electronic Credit Ledger or Electronic Cash Ledger and crediting the Electronic Tax Liability register.
Electronic Credit Ledger
Every registered taxable person is required to maintain Electronic Credit Ledger in FORM GST PMT-2 on GST portal. Every claim of Input Tax Credit under GST law will be credited in this ledger only.
Electronic Cash Ledger
Electronic Cash Ledger is another account that every registered taxable person under GST law is required to maintain on GST common portal. This form is required to be maintained in FORM GST PMT-3 for crediting the amount deposited and debiting the payment therefrom toward tax, interest, penalty fee or any other amount.
This deposit can be made by various modes: https://neerajbhagat.com/pdf/GST-%20Payments-%20Edition%208.pdf
The challan in FORM GST PMT-4 generated at the common portal shall be valid for a period of 15 days.
About the Author:
Manoj Yadav is the Director - Indirect Taxation with Neeraj Bhagat & Co, an Indian Chartered Accountancy firm serving various MNCs from across the globe. Neeraj Bhagat & Co. has its offices at New Delhi, Gurgaon and Mumbai. They are part of Allinial Global Accounting Association which is one of the world's Top 10 in accounting associations.
For more information please log on to: http://www.neerajbhagat.com.
Share this article