GST state codes

Here is the list of State Codes under GST:

(Annexure I: State code and TIN number co-relation for implementing the validation)

01	JAMMU AND KASHMIR	20	JHARKHAND
02	HIMACHAL PRADESH	21	ODISHA
03	PUNJAB	22	CHATTISGARH
04	CHANDIGARH	23	MADHYA PRADESH
05	UTTARAKHAND	24	GUJARAT
06	HARYANA	25	DAMAN AND DIU
07	DELHI	26	DADRA AND NAGAR HAVELI
08	RAJASTHAN	27	MAHARASHTRA
09	UTTAR  PRADESH	28	ANDHRA PRADESH (old)
10	BIHAR	29	KARNATAKA
11	SIKKIM	30	GOA
12	ARUNACHAL PRADESH	31	LAKSHWADEEP
13	NAGALAND	32	KERALA
14	MANIPUR	33	TAMIL NADU
15	MIZORAM	34	PUDUCHERRY
16	TRIPURA	35	ANDAMAN AND NICOBAR ISLANDS
17	MEGHLAYA	36	TELANGANA
18	ASSAM	37	ANDHRA PRADESH (NEW)

GST DRC 03

What is GST DRC 03 Form?

Form GST DRC-03 is now available on GST Portal for making voluntary payments. What is this form and how to file it?
This blog will answer these questions.

Form DRC-03 enables a taxpayer to make voluntary payments for
1. Before issue of notice u/s 73 or 74 of the CGST Act, 2017 or
2. Within 30 days of issue of show cause notice (SCN), if any. (But not after 30 days. So keep updated and make the payment before 30 days, if required)

Note: Partial payment is not allowed.

Following is the steps for how to file it:

1. Log in
2. Go to services
3. User services
4. My application
5. Application type: select INTIMATION OF VOLINTARY PAYMENT - DRC 03 from the drop down list.
6. Select date of required. Not recommended to type or click anything in date field. Just skip this step
7. Click on New Application
8. The website will ask details for the following:
A) cause for payment
B) section number
C) Financial year for payment
9. Click on proceed to payment. This will take you to your payment gateway and you can pay from your bank account.

Input tax credit (ITC) on capital goods

Business purchases many goods and Assets for its use and GST will be paid on this. We all generally think GST will be refunded. However there is restrictions to claim such ITC under GST ACT for capital goods. This blog is about such restrictions on capital goods.

Capital goods are assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services. For example, comuter used in office is a capital goods.
The raw material used in the manufacturing process is not capital goods.

These capital goods will be kept by the business organisation for more than one year. Eg. Machinery, Furniture, Buildings, UPS, Laptops, etc

Since it is used for more than one year, depreciation is accounted. That is, only a part of its cost is taken as expenses for each year of use. It is computed by a percentage basis as per Income tax Act, 1961 to file your IT Return.

Once this depreciation on capital assets value (including GST) is claimed in income tax returns, you can not claim GST input tax on it. These GST expenses becomes ineligible ITC and recorded as rates and tax expense in profit and loss account.

However, the taxable value (assessible value/ amount excluding tax) of the assets can be taken for depreciation(means excluding tax value) so that you can claim the input tax under GST.

Restrictions on input tax credit under GST Act

* ITC cannot be used for payment of Interest and late fee under GST.

* ITC cannot be used for payment of demand generated by Assessing Officer under Section 74 and 75 of CGST Act, 2017.

* Payment of tax under Reverse Charge Mechanism.

* Payment of tax under section 10 i.e. Composition Scheme

* CGST credit can’t be used for payment of SGST

* SGST credit can’t be used for payment of CGST.

If you are searching for an auditor office to file your tax return , feel free to contact us at 9242858227
Or mail us at gouthamtaxconsultancy@gmail.com

Composition scheme under GST Act

A Composition Scheme is an option under which the small businessmen and taxpayers have a relief from the cumbersome compliance procedures and to pay a minimal amount of tax without indulging into the complex calculations that GST requires.

The Composition scheme is available to persons engaged in manufacturing and trading of goods and restaurant services whose Annual Turnover is up to INR 1.5 crores (INR 15 million), which is INR 75 lakhs in case of North Eastern states and Himachal Pradesh.It is to be noted that turnover of all businesses registered with the same PAN should be taken into consideration to calculate the Annual Turnover.

In case the taxpayer is taking a New Registration under GST regime, then the person is required to opt for the Composition Scheme in Part B of Form GST-REG-01.

Persons who cannot avail the Composition Scheme:

Taxable Person who is engaged in providing Services except for Restaurant services.

A taxable person who makes Interstate outward supply of goods. They can still make an interstate purchase of goods without losing out on the Composition Scheme.

A taxable person who makes any supply through E-commerce operator.

Taxable person who makes any supply of goods which are not leviable to GST as of now, like alcohol, petrol, diesel, tobacco, pan masala etc

Searching for GST office / tax office to file your returns?

Contact us at 9242858227 for filing your GST, Income tax, Professional tax and TDS