Know about the Finance and Investments Terms

GST is an indirect tax imposed on the supply of goods and services. It was passed on 29th March 2017 and came into effect on 1st July 2017. GST was solely introduced on the motto of “One Nation, One Tax”. It replaced a number of indirect taxes which were previously levied by the Central and State governments.

This new taxation system comes with several benefits. Entrepreneurs should be well aware of all the GST information and other Goods and Services Tax details you need to know to reap maximum advantage.

There a lot of GST benefits, such as reduced tax rates, no multiple taxations, increased revenues, etc. Also, in case an excess of GST has been paid, you can claim for a GST refund under Section 54 by filing an online application with proper supporting documents.

• In case of export of goods or services without the payment of IGST, Refund Amount is equal to the turnover from the supply of goods (zero-rated) and the turnover from the supply of services (zero-rated). The total amount is multiplied with the net ITC calculated against the adjusted total turnover.
• In the case of ITC GST refund can be claimed if – 
  1. Unutilised ITC for zero-rated goods or services is exempt from GST.
  2. Goods or services have higher input tax rate than the output tax rate.
  3. I cannot be completely used against output tax in case of partial reverse charge.

In this case, the maximum refund amount is equal to the turnover earned from the supply of goods (on inverted rate) and multiplied with the net ITC against total turnover. The aggregated value is deducted from the tax payable on the inverted rated supply of goods to find the refund amount.

So, if you own any small or medium-sized business and have your GST filed with all proper documentation, you can avail advances whenever required. Learning what you need to know about GST allows you to lower your tax burden by a significant amount.