Broad section of service tax and its simplification in GST

Broad section of service tax and its simplification in GST:

Broad section of service tax laid on the service providers it recently replacing with GST registration. Service tax is collecting on the value of table service rendered by them for consideration. The taxable event is the completion of the rendering of service. The moment the service is completed, the liability to service tax arises. The service tax will have to be paid on value of taxable services realized. Immaterial whether it is a service tax has been collected from the customer or not.

Amount of service tax and education cess has to be calculated by working back from the amount realized assuming that the amount realized is inclusive of service tax and education cess. GST council has introduced new return system to improvise the hard core features of service tax. Value added tax calculation is totally abolishing in the GST filing.

Broad section brief in GST:

GST filing process is following the new system for the broad section companies. Two monthly return methods are introducing for the companies to file their return. Keen details of outward and inward supplies and payment of the tax are calculating through the GSTR-1 and GSTR-3B. The main form of GST return is the GSTR-1. It comes with the help of GST ANX-1 and GST ANX-2. Charge for import of goods and service and reverse charges are applicable on in these goods and service tax filing process.

Budget 2012 proposes to usher the paradigm shift in the manner services will be taxed in the future. The transition involves shift from taxation of 119 services specific descriptions to a new regime where by all services will be taxed unless they are covered by any of the entries in the negative list or are otherwise exempted. To resolve the complex classification issue this system is using for a while before GST registration amendment.

Concept of simplification:

To avoid the barriers of additional taxes and too much filing is coming under this category. Frequency of filing totally depend the turnover of the entity. GST return filing completely depending on the profile and structure of the company. The mandatory supply process is coming under realm of new GST formation. Previous service tax system followed the ledger account and all information in the filing of form ST- 3 and service tax returns-3. Month wise total billing and total recoveries are furnished for the half year covered by the return.

New form of profile questionnaires will show the GST registration return format display only to the relevant format and prompt to the profile of the corporate or other form of companies. Invoices are uploading and the data of these invoices taking in the manner of real time feed. As per these the recipient will take appropriate action. It brings to end for the fraud or fake invoice insertions.

Broad section of taxation:

Tax laws and GST registration are complicated complex, highly technical and beyond understanding of the common person. The interpretation of tax laws is very much painful and difficult. There is a tendency to amend tax laws frequently. It causes great difficulty to a citizen in understanding the tax and financial affairs. Many professionals find accounting and taxation a very complicated affair as such they try to remain away from this matter. Obviously, it involves with the interest in the income tax matters and lack of knowledge of the latest amendments.

A professional is required to pay more tax than other legal payables. All these issues are getting it solution in the form of GST filing. The simplification of form and filing process will lead lower cost of compliance. As the prolific form of filing tax payers will able to amend their return id that once filed. Only two amendments are acceptable in the tax return period.

Broad section of tax showing in separation:

An individual is rendering any of the service the service tax in payable one. So, the separate provisions are coming under the service tax. Computerized data is maintaining through the assesse according to the various laws in force. It is changeable one from time to time. Service tax department follows these essential processes. Now it is totally changing into the hand of GST filing process.

Filing of GST-1:

GST registration under the category of Business to customer and business to business with the inward supply comes with the reverse charge mechanism. NIL rated transaction and exempted goods and supplying through the e-commerce operators will be recommending for this GST Ret-1 as per the new laws of the GST council. Before this process memoranda received from the branch office of service tax department.

Broad section of CENVAT credit rule:

As the rule 6(2) the manufacturer or provider of output service in engaging the manner for final product comes with output services which are chargeable duty or tax as well as exempted goods or services then the manufacturer or provider of output service shall maintain separate accounts for receipt consumption and inventory. These large processes are coming as the unified tax form through new GST registration.

Documents and accounts under CENVAT credit rule:

The manufacturer brings the final source of the product offer the output service. These services shall maintain proper records for receipt, disposal, consumption and inventory of the inputs and capital goods, recording therein the value, duty paid, central vat credit and utilisation. These too much holding document and data process are simplified in the GST filing process. The simplest form of the tax calculation with the unified process is following in this new tax system.


GST registration is considering as the complex process and not easily adopts this process in the first time. However, the time limit for the GST registration process is extending for the welfare of the business people. Try to make it fast as soon as possible. Because, without GST registration the business is undertaking is not approving one. The turnover limit is notable one in this business governing process.


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