Goods and Services Tax (GST) is a destination-based tax. It means the taxation will happen at the place where they are consumed and not at the origin place. Let us understand how you need to pay different GST in different situations.
Assume a seller named Mr. Seller is in Pune, Maharashtra. He sells 100 washing machines to Mr. Buyer in Mumbai, Maharashtra. The place of supply (product is consumed) is Mumbai. Also, the state is the same in both cases. Hence, CGST (Central GST) and SGST (State GST) are charged.
Mr. Seller also sells TVs to another buyer in Lucknow, Uttar Pradesh. Now the place of supply is Lucknow, and since the origin and destination states are different, IGST (Integrated GST) is charged.
You cannot transport goods (as in the above example) if the value is more than Rs 50,000 and you are a GST registered person. You can only do it if you have an e-way bill.
It is an Electronic Way Bill for the movement of goods and needs to be generated on the e-Way Bill Portal. If you are GST registered and want to transfer goods in a vehicle whose value exceeds Rs 50,000, you need an e-way bill. You can generate it on www.ewaybillgst.gov.in
The bill can also be generated or cancelled through SMS, by site-to-site integration through API and Android app. Every e-Way bill has a unique e-way bill number (EBN), and it is made available to the recipient, transporter, and supplier.
Must Read - GST Portal Login Guide
There are some prerequisites to generate the e-way bill:
i. You need registration on the EWB portal.
ii. You need to have an invoice or bill related to the consignment of goods.
iii. The vehicle number or transporter ID, in case the transport is by road.
iv. Transporter ID, transport document number, and document date if the transport is by a ship, air, or rail.
Once you have the above ready, follow the below steps to generate an e-way bill:
1. Login to the e-Way bill portal using your credentials - username and password.
2. Once login is successful, under 'E-waybill' click on Generate New option, it will appear on the left-hand side of your dashboard.
3. A new screen will pop up. Give the below details on the screen:
a) Transaction Type: if you are a consignment supplier, give OUTWARD, and if you are a recipient, give INWARD.
b) Sub-type: Depending on the transaction type selected above, give the sub-type. For example, if the transaction type is Outward, the sub-type can be Supply, Export, Job work, etc.
c) Document Type: Select the document type depending on what you have - credit note, challan, invoice, etc.
d) Document Number: Enter the invoice or the document number.
e) Document Date: Select the date in the system - it should be the same as the document.
f) From/To: Give the from and to details on the portal.
g) Item details: You will have to provide the complete information related to the item under this section. Provide product name, description, quantity, unit, value, tax rates of CGST and SGST or IGST.
h) Transporter detail: In this section, you need to give information related to the mode of transport. Specify whether the mode is road, rail, ship, or air. Also, provide the approximate distance between to and from places.
4. Once you have filled in all the details, you can submit the form. If there is no error, your request is complete. You will get a unique 12 digit number on the screen.
You need to print and carry the e-Way bill for transporting the goods in the mode you have selected on the portal. You can download the e-way bill by following below steps:
1. Under the ‘E-waybill’ option, you will find the 'Print EWB’ sub-option. Click on it.
2. Enter your unique 12 digit e-Way bill number and click on Go.
3. Click on the Print button on the portal.
Before GST was introduced in July 2017, for life insurance policies, the end consumer used to pay around 15% taxes. It included Service Tax, Krishi Kalyan Cess, and Swachh Bharat Cess. Now you have to pay GST on life insurance plans as indirect tax. The standard GST rate on insurance products is 18%. However, the rate varies depending on the insurance product you plan to buy.
The GST on the term insurance plan is 18% on premium payment.
The GST again is 18%, and it applies on the mortality premium payments and charges for fund management.
The GST rates are applied differently and vary with the payment year. For the first-year premium, the GST rate will be 4.5%. For subsequent years, it will be 2.25%.
When you buy a term insurance plan or any other insurance product, you have to pay the GST. However, GST applies on the mortality and other charges applied by the insurer and not on the investment amount. The only way you can save GST (which will be nominal anyway) on these transactions is by investing in plans with lower mortality and other charges.
But, you are eligible for tax deduction on direct taxes and investment in majority of life insurance policies does allow you deduction under section 80C.
You can also save taxes by investing in the plans below:
|Life Insurance Plans||Employee Provident Funds (EPF)|
|Term Life Insurance||Public Provident Funds (PPF)|
|ULIPs||National Savings Certificates (NSC)|
|Endowment Plans||Sukanya Samriddhi Scheme|
|Annuity & Pension Plans||Senior Citizen Savings Scheme|
|Equity Linked Savings Scheme (ELSS)||National/New Pension Scheme (NPS)|
For every individual and business owner, the first thing to understand is their taxes. For every product you buy, know what part of your investment is going into taxes. If you are self-employed, GST transactions and services makes your business easier and open to a wider market.
At the same time, tax saving investments will reduce your personal annual tax burden and help you build wealth for your family’s future. Majority of tax-saving investments are long-term plans aimed at specific life goals.
Thus, with right kind of tax-saving investments you not only reduce your tax expenses but also offer your family a better future.Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.