The new GST rules will come into effect from Mar 1, 2024, Have You Checked?

The new GST rules will come into effect from Mar 1, 2024, Have You Checked?

PrimeNewsly: If you are also a small businessman and your annual turnover is Rs 5 crore or less, then it is very important for you to read this news because from March 1, the Indian government is going to implement new rules related to GST, which will greatly affect small businessmen like you. Let’s discuss in today post, What are these rules?

What is GST?

Goods and Services Tax (GST) is a tax that consumers have to pay while buying goods and services such as food, clothes, electronics, daily necessities, travel tickets, etc. GST is included in the cost of goods and services. This tax is paid by the consumers but it is passed on to the government by the business. GST is a kind of tax, whether you pay income tax or not, you indirectly pay GST on the purchase of goods and services.

What is the Changes are Made in GST?

The central government has made a big change in the compliance rules of GST. Small businessmen, especially those who do business from one state to another, will be affected by the new rules. The new rules will come into effect from March 1 this year. According to the new rules of GST, such business whose turnover is more than Rs 5 crore will not be able to issue e-way bill without e-challan. This will be applicable to all their business transactions from March 1. For goods worth more than Rs 50,000 to be moved from one state to another, it is mandatory to have an e-way bill under the GST tax system.

Reason to Changes GST rules

The central government's National Information Centre (NIC), in its analysis, found that many businessmen are transacting with B2B and B2E taxpayers through e-way bills without linking them to e-challans. All these taxpayers are eligible for e-challan. Due to this, in some cases, different information recorded in the e-way bill and e-challan is not matching with the standard. Due to this, there is no match between the e-way bill and the e-challan statement.

Keeping in the mind, GST taxpayers have been asked not to generate e-way bill without e-challan statement from March 1, 2024. So, now these businesses will have to prepare an e-challan statement to generate an e-way bill. However, it has also been made clear that e-way bill for other transactions generated from customers or non-suppliers will run as before.

ALSO READ: Countries Accepting UPI Payments, It can also be used in Sri Lanka and Mauritius

GST Comes to the Effect

The Modi government has implemented the GST system in the country from July 1, 2017. This GST system was brought to integrate all types of indirect taxes in the country. This made it easier to do business in the country as it changed the different tax regime of different states. To build consensus on GST, the government has also formed a GST Council, which will be chaired by the country's finance minister. On behalf of the states, their finance ministers or their representatives will be part of this council. It is the highest decision-making body in the country on GST.

ALSO READ: ICICI Bank FD Interest Rates 2024 (Updated on 8 Feb 2024)