Categories: GST Filling

Overview on GST Unified Indirect Tax Mechanism

Overview on GST unified indirect taxation mechanism

Goods and Service Tax is a unique unified indirect taxation mechanism that replaced various indirect taxes levied by State & Central Govt of India. Under the GST regime, GST is a destination-based tax on consumption of services & goods that is levied on every value addition. the tax is levied at every point of sale GST simplifies taxation process & helps in ease of doing business in India. Under Goods and Service Tax, both State & Central Govts share authority to levy & collect taxes on Services & Goods. GST levied at all levels right from goods manufacture up to final consumption with credit of taxes paid at earlier stages available as set off. GST includes 4 GST kinds namely SGST, CGST, Integrated Goods and Services Tax (IGST) & UTGST. The taxation rate under SGST, CGST, IGST, UTGST is different.  Goods and services are classified into different tax slabs, including 5%, 12%, 18%, & 28%.

A simple GST formula arises:     GST Amount value = (Original Cost X GST Rate % )/100.

Main objective of the Goods and Service Tax Law

  • GST Taxation Process is simplified.
  • Logistics productivity is enhanced.
  • Simple & Easy online indirect taxation process.
  • More FDI is attracted.
  • Cascading effects on indirect taxation are reduced.
  • All have features of Composition scheme.
  • Throughout country, a uniform indirect taxation rate is implemented.
  • Subsume most indirect taxes into a single unified indirect taxation mechanism & widen the tax base in India.
  • Indirect tax management is applied effective.

Common Mistakes in avoid GST Compliance:

  • Wrong entry of Invoice Details in GSTR-1 can result in the denial of input tax credits for recipients for a smooth input tax credit process
  • Confusing zero-rated and nil-rated supply treatment, It is compulsory to file accurately report zero-rated & NIL rated supplies to avoid GST audit scrutiny.
  • No Purchases or Sales than Ignorance To File Nil Gst Return Failure to do so can result in penalties and potential cancellation of GST registration.
  • Non-Payment of RCM where recipients are responsible for paying the tax obligations can lead to interest payments and the loss of ITC.
  • Neglecting Failure to Reconcile the monthly GSTR-3B RETURNS & GSTR-1 is a significant mistake.
  • Delays or failure to submitting GST Returns within the Timeline date can result in the cancellation of GST registration and financial penalties.
  • Misplacement of export sales details can lead to complicate in claiming GST refund.


Maintaining compliance, averting needless reconciliation processes, and avoiding legal issues all depend on timely and accurate filing of GST returns. Taxpayers can make sure that submitting their GST returns is easy by being aware of and avoiding the typical pitfalls covered in this article. It’s also essential to be familiar with the relevant GST return types according to their particular business features. With careful planning and adherence to the guidelines, taxpayers can properly file their GST returns.

How to Contact GST Consultant Near me – At Rajput Jain and Associates, we consistently strive to satisfy clients by completing their work accurately & efficiently. We always consider all of clients’ issues. You may contact us or give us a call at +91-9555 555 480, if you need our assistance. for GST advice.

Tags: GST Advisory
Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

Recent Posts

Overview on Disallowance of Expenditure u/s 43B(h)

Overview on Disallowance of Expenditure u/s 43B(h) The Union Budget 2023 introduced measures to encourage timely payments to micro or… Read More

2 days ago

Amendments in ITR Form 6 applicable to companies

Amendments in Income Tax Return Form 6 applicable to companies: New ITR forms For the AY 2024–2025, I-T return forms… Read More

1 week ago

Important Concept under Income tax Act

Important Concept under Income tax Act - Concept of Previous Year & Assessment Year The financial year that ended just before… Read More

2 weeks ago

Changes introduced in ITR Forms for AY 2024-25

Changes introduced in ITR Forms for AY 2024-25 Why do Income Tax Return Forms have AY’s? ITR forms include an… Read More

2 weeks ago

MCA Launches CPC Centre in Manesar for e-forms processing

MCA via Notification operationalises of CPC Centre in Manesar for processing of ROC e-forms The Ministry of Corporate Affairs through Notification… Read More

2 weeks ago

Gross Direct Tax collections for FY 2023-24 Upto 10.02.2024

Gross Direct Tax collections for Financial Year 2023-24 upto 10.02.2024  The Finance Ministry has made available the direct tax collecting… Read More

3 weeks ago
Call Us Enquire Now