GSTN Issues Advisory on Reporting 6% Rate In GSTR-1

GSTN Issues Advisory on Reporting 6% Rate In GSTR-1
|Updated on: July 13, 2022

The GST or Goods and Services Tax, is an indirect tax that has replaced the previously applicable taxes such as the service tax, value added tax, purchase tax, excise duty, etc. It is a tax levied on certain goods and services and applies to all parts of India. The IGST or Integrated goods and services tax is an interstate tax that is also levied on imported goods and services into India. The CGST or Central Goods and Services Tax is a tax governed by the CGST Act, levied on Intra State supplies of goods and services by the Central Government. The SGST or State Goods and Services Tax is levied on the Intra State supplies of goods and services by the State.

 

What Role GST Software Plays For Your Business?

GSTR-1 Filing Facility will be Blocked for Non-filing of GSTR-3B Returns

New GST Rate

The government has issued a notification announcing the new tax rate of 6% IGST or 3% CGST+ 3% SGST on certain goods.

New rate structure (IGST and CGST + IGST)

The new rate structure will amount to 6% IGST or 3% CGST+ 3% SGST on certain goods.

Reporting of new GST rate in portal

Since the portal has not yet been updated to reflect this change in the tax, the taxpayers are to report it under the 5% section. This will display the system computer 5%, which the user can edit manually to the 6% IGST or 3% CGST + 3% SGST value in the relevant space in the B2B, B2C, or export table as applicable to their entries. This manual entry will ensure that the user is filling the correct tax amount in the GSTR-1. This is only a temporary measure until the portal has been made capable of calculating the modified 6% tax value.

Flexible accounting software accommodates tax rate changes

Ensure that you use accounting software such as TallyPrime that easily reflects any changes in the tax structure so that you generate accurate tax filing reports every time with no necessity for manual calculations.

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