CENTRAL EXCISE DAY
When the central excise day is celebrated? What is the due date of excise duty?
Central excise day is celebrated on 24th February across the world that motivates the employees of the excise department to exercise this duty to prevent the misuse of goods in the manufacturing industry or business.
The purpose of this day(central excise day) is to contribute towards our Indian economy encouraging the workers or the employers to perform their duty with sincerity.
The term that represents this duty is the Central Board of excise and customs that outlook the activities concerning the formulation of policies, collection of customs with excise duty, and service tax.
The excise duty is the provision that came into existence after the changes made under the excise duty act in form of amendments which took place in 2002 which talks about the sale of goods after once they are removed from factory or warehouse.
The excise duty must be paid always on the 5th of the following month. If the payment has to be made through net banking then it has to be made by the 6th of the following month.
What is the purpose of excise duty?
If the goods are imported from outside India, there are different types of taxes and duties that have to be paid. Excise duty is considered to be an indirect tax and is always designed to cast down the purchase of particular goods.
What is the current rate of excise duty in India?
The rate on which the excise duty charges is 12.36% and the rate is based on rules made by the central government. The rate can be modified as per the products.
Which day is considered GST day?
The GST (goods and services tax) was a step that falls under the category of indirect tax. The GST day is celebrated on 1st July 2018
What is the point of sale in GST?
The point of tax in GST is always stated when the services are deemed to be rendered and also when the goods need to be get supplied. The point in tax shows that how the rates of tax and due dates for the payment of taxes are determined.
What do you mean by the time of supply?
The time of supply refers to the period wherein the supply for goods has to be made keeping in mind its taxation value. The time speaks about two kinds of periods where the supply has to be made with respect to the invoice or as the payment is done.
On the other hand, the date when the payment is received by the supplier shall be on the date when it got noted in the books of account and on the date when the payment is credited to his bank account
What is HSN in GST?
The HSN stands for harmonized system of nomenclature which is provided in the form of code that is used to categorize goods of various categories under GST.
This system has been introduced to systematize the goods on the basis of their classified categories in the world.
What is the time limit of taking ITC?
ITC refers to the input tax credit as a tax that is payable at the time of purchase of the product when the liability which is payable on such product is reduced on outward supplies and it is the tax that is paid on the purchase of goods or services by the buyer.
The date of issuing an invoice is within 180 days where the price has to be paid by the buyer to the supplier in form of ITC.
Who can claim ITC?
To claim the ITC, the claimant must be the registered taxable person. If the goods and services are received out of business purposes then only one can claim for the input tax credit. On the other hand, it can be said that the registered person can claim the ITC on the basis of the condition given for such claim-
- The tax invoice must be possessed by the supplier of goods and services or over both or else the debit note is issued by a supplier.
- The supply of goods and services must be received by the person who is registered as a taxable person.
- He must have paid the tax according to the terms prescribed under the GST act.
- A person must have a document supporting his claim for eg. a Debit note, supplementary invoice, these are such documents that are needed to claim ITC.
- ITC is only paid through the medium of electronic credit /cash ledger.
What is ineligible ITC?
Ineligible ITC is one upon which input tax credit is not available. ITC puts restrictions upon certain commodities and for which the tax purchase is not available. The purchase of aircraft and vessels does not provide ITC.
This means that it talks about the vehicles which include the capacity of 13 persons or less than 13. It does not only includes purchase but also includes its leasing, hiring or renting, etc.
There are certain exceptions available for ineligible ITC where the ITC is eligible and available-
- When there is a further supply of such vehicles, vessels, and aircraft.
- It is used for the transportation of passengers.
- When such vehicles, vessels, aircraft are used to impart training to the drivers of the vehicles and training to the operators of the vessels and aircraft.
We can quote some examples upon which ITC is not available and are ineligible.
- The vehicles are utilized for personal use.
- The vehicles that are purchased for the purpose of training the drivers of the driving school to which the above exceptions are available.
- Vehicles that are purchased for sale by the car dealers.
Who is eligible for GST input credit?
The person who is eligible for GST input credit must be a registered taxable person under the Goods and services (GST) act, who is able to pay tax in furtherance of his business and can avail his ITC credit in an electronic ledger.
What is the income limit of GST credit?
It is mandatory for a person who is carrying a business has to get register under goods and services tax if his aggregate turnover in the financial year exceeds Rs 20 lakh. The limit for the Northern Eastern and hilly states brought under special category has been set as Rs 10 lakhs.
The said limit for 2020 is Rs.20 lakhs except in specified states where persons are engaged in making supplies.
How is GST calculated?
GST is calculated where we have the selling price of the goods or services on which it is sold and applying the GST rate through which we calculate the net price and get the calculated GST amount.
Article by – Nitisha Sharma
Very informative article! Keep us the good work NITISHA!!
Thanku so much