- Under GST, the taxable event and the liability to pay tax arises when there is a supply of goods or services
The goods and services tax (GST) is one of the biggest fiscal reforms in India. We had covered details relating to the applicability of GST registration and procedure registration in our earlier article titled GST registration requirements for NRIs. The present article covers the aspects subsequent to registration for the non-resident taxable person (NRTP).
Self-assessment mechanism
GST functions on the concept of ‘self-assessment’ by which every registered taxable entity shall itself determine the tax liability under GST law and furnish prescribed returns for the specified tax period. Any entity that falls under the ambit of GST needs to follow the necessary compliances and procedures. The filing of GST returns and payment of tax within prescribed timelines is one of the crucial parts of the compliance requirements. In case of late or incorrect filing of a return, an additional amount may be required to be paid in the form of a late fee, interest, and or penalty. In order to file timely GST returns, it is necessary to understand, on what value tax is to be levied, the place of supply, the type of taxes and the applicable tax rate.
Source: Mint
