GST Launched: 7 Biggest Myths Busted

The Goods and Services Tax was launched on July 1 as it replaced the previous tax system. While it has its numerous advantages such as simplification of taxes, minimization of tax evasion, and transparency in the commerce sector, many traders and even consumers are concerned how it will impact them.

Image Source

To clear the air regarding the new indirect tax regime, Revenue Secretary took to Twitter and busted 7 of the biggest GST myths that have been floating around. These are:

1. I need computer/Internet to create invoices

While it’s true that generation of invoices will be easier with a computer and Internet, you can generate them manually too.

2. There are three types of returns that must be filed

Only one return has to be filed under the GST regime. However, this return has three parts out of which only one has to be filed by the taxable person. The remaining two will be auto populated.

3. GST rate will be higher than VAT

GST was designed with inflation in mind. Thus, the overall difference between the taxes in the past and now won’t be much.

4. You can’t do business with provisional ID

Since the provisional ID will be the same as the final GSTIN, you can start doing business with the same.

5. Internet is needed to business under GST

Internet connection is only necessary for filing monthly returns.

6. Even small dealers have to file invoice details in the return.

Retailers have to file only the summary of their total sales.

7. If a commodity was exempt earlier, then a retailer has to get a new registration.

The retailer can continue doing business and get registered within 30 days.