The main difference in the existing tax structure and the GST is that the new regime will put an end to multiple taxes levied on different products and services at different stages by including most of it.<\/p>\n
\nThe GST will remove tax barriers between states and create a single market avoiding complications that exist in the present tax regime. <\/span><\/p>\n<\/blockquote>\n
Penalties Under GST <\/span><\/h2>\n
1. Mistakes For Startups And MSME\u2019s To Avoid<\/span><\/h2>\n
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- Not Filing Return On Time <\/b><\/li>\n
- Making An Inter-State Purchase<\/b><\/li>\n
- Be Careful Of Freebies: <\/b>Limit under the composition Scheme <\/a>is Rs. 50 lakhs and anything above Rs.50 lakhs is taxed. For Eg: If you\u2019re total supply of goods annually was Rs. 48 Lakhs and you provide extra Rs.4 lakh of goods to your family for free, then your total expenditure will be Rs. 52 Lakhs and will face problems like non- inclusion under the composition scheme, payment of taxes, and included under non-filing of returns and imposed under a penalty of Rs. 5000 per return. <\/span><\/b><\/li>\n
- Not Seeking Permission: <\/b>Seeking permission for benefits from the composition Scheme must be done by availing it at the beginning of the year. <\/span><\/li>\n
- Casual Registration:<\/b> Businesses taking help of local registrations for establishments, service tax<\/a>, and shops will not be covered under GST and are liable for Composition Scheme. \u00a0People who are of the notion of taking the help from local registrations for shops, establishments and service tax in future will not be entitled for GST.<\/span><\/li>\n<\/ul>\n
2. Fraudulent Behaviour <\/span><\/h2>\n
Any person committing an offence of tax evasion has to pay a penalty of 100%. Not only the taxable person but also any person helping another person to commit fraud, Acquires\/receives any goods\/services with full knowledge that it is in violation of GST rules, fails to appear before the tax authority after receiving summons, failure to issue an invoice according to GST<\/a> rules, and failure to account any invoice appearing in the books. All of the above cases will have to pay a penalty extending upto Rs. 25,000.<\/span><\/p>\n
Additional cases of fraudulent behavior carry extra penalties like:<\/p>\n