What is GST? What Are The Types Of GST? Basics Of GST Lecture 1 By CA Rachana Ranade

[Music] hi guys Sierra channel on Eddie here and I welcome you all to my Saturday lecture series in today's lecture we are going to talk about some basic points about GST you know there were there was a joke which was floated on whatsapp and earlier what was asked once that what is the full form of GST and she said it is goodnight sweet dream and take care so these days I guess hero answer competing with each other that who is going to give the most hilarious answer for any question as you have understood about whom I am talking about right so anyways so that we don't end up giving such messy answers we are going to start up a separate series which will clear all your basics about GST and the intention is not to make you a GST expert but the intention is to make you as a consumer and even if you are an entrepreneur to make you aware about certain basic concepts of GST so in today's video we are going to talk about what is the meaning of GST we are going to talk about the components of GST we are going to talk about the registration requirements of GST and we are also going to talk about what are the different forms which appear in GST at a very basic level at a layman's level this video is brought to you by QuickBooks QuickBooks is an accounting software packaged and developed mainly to help out chartered accountants and small and medium-sized businesses for chartered accountants the best advantage is that you will be able to track all your work and clients in one place and streamline tasks very easily now if you're a businessman or a professional or even a student who is planning to pursue the see a course or a student who is planning to start his or her own business then this video is going to be very important because in this video I am going to talk about an accounting software which is going to make your life very simple so please watch this video till the end so GST is basically goods and services tax it's both are in plural plural goods and services tax okay before the introduction of GST we had so many taxes in India we had excise we had service tax we had customs we had that we had see a stain so many we adopt oh I was a complete mess complete shitty of all the taxes so to simplify things this government BJP in 2014 to nineteen regime their first tenure they came up with GST and we're in our Prime Minister Narendra Modi said that we are introducing view with one nation one text and that was GST he called it as a good and a simple tax is it really good is it simple there are so many different perceptions about I mean by various people so let's understand a little bit more in detail so that you can make your own perception about really is it good and really is it simple or not I remember that when I was at a restaurant the day after GST was introduced and the waiter got a bill right next to my table and the customer was sitting right next to me he saw the bill and he said it says see GST is at 9% and s GST is at 9% and he said I have listened to Modi ji speech and he said it's one tax one nation so either charge me see GST or charge me as GST and not want to pay both do you think I'm a fool no so there's a confusion why is it said one tax one nation when there are multiple components of GST and what are the components of GST there are three major components one a CGS T 1 is s GST and one is IG s t cg s T stands for central GST goods and services tax as y-a is state GST and IG IG s T is an integrated GST okay now which tax is levied events when in simple words again assume that I am selling my lectures to a person who is in Maharashtra I am from Marcia I am selling lectures to a person in Maharashtra then I have to levy two types of taxes one is C GST 1 is s GST CJ s T so basically when I sell lectures to you and when I whenever I collect taxes from you then I will pay a part of that to the state government so I pay s GST state GST to Maharashtra government then C GST that portion goes to central ok so I don't pay taxes separately that the division part the bifurcation part is done by the tax authorities but that component whatever I am paying so as a simple example if I am paying 18 rupees to the government then it gets split up as nine plus nine nine rupees goes to government of Maharashtra which is the S GST and nine rupees goes to the center central government that is the C GST okay but now it does happen that there are many people who place an order for my lectures even outside Maharashtra so let us say there's a person from Delhi was placed in order for my lectures there's a person from Chennai who has placed order for my lectures now what happens do I charge C GST and is jested to them no I charge a GST so I hope you have understood any sale which takes place within the state is a C GST is GST so basically such sale will attract to taxes C GST HST and a sale outside the state will attract a GST which is an integrated GST Oh what would be the tax rate for i GST in such a case where c GST is SG is nine percent 9 percent then for i GST it will be 18 percent next time so this is a small task that I'm giving to you all I'm sure you might be ordering many products let's say from Amazon then just check out the bill what taxes are charged to you and you must check that if you are from a particular state and if the seller is also from that particular state and has he charged see GST SD state to you or not and if he is from outside the state and he might have charged by GST so just have a small practical that's the homework from my side okay so is it necessary that every person who is selling some Goods always rendering a service is every person required to pay is required to collect and pay GST to the government so a simple example take it on lighter note let's say my building watchman I was going to my office the other day and my watchman said Salah ma'am and I said hello hi good morning and he said wait wait hood where I going he said I'm going to my office said that I have provided your service I was awake on the night and I was protecting the people of your society so that everyone should sleep very calmly and quietly without any tension so I've provided you a service so first pay GST and then go to office is that what is going to happen no but then he is also providing a service that's true then who is required to collect GST and who is not required to collect GST for that you should know the registration requirements okay so just as an example if I am collecting GST from you then it means that I cross the threshold the minimum requirement and then it would be mandatory for me to register under GST so what are the mandatory requirements for any businessman basically I'm talking about businessman okay if the turnover of a business turnover is nothing but since if the norcross's 40 lakhs then he or she that business basically is required to get itself registered under GST if some person wants sumoto supermoto is on his or her own wish will then they can register under GST okay so if you're a small shopkeeper and you say I want to get registered under GAC I want to tell everyone that I am registered under GST this just just out of curiosity can you register under GST yes you can that's a voluntary registration but when is it a mandatory registration mandated registration is that if you cross the threshold of 40 lakh rupees turnover okay one more some important point for you if you were to sell your products online so let us say you're making some fancy items some fancy bottles these days decorating bottles are made by so many girls some Pun teas and candles and whatnot and if you want to sell it online Christmas gifts and all that then in that case even if your business has one rupee of turnover because you're selling online it would be mandatory for you to get yourself registered under GST okay so if you're selling products online then that forty life threshold disappears okay so I hope you have understood the registration requirements there are so many details I'll just covered it at a very basic level so let's talk about a few forms which you have to file under GST the number one is GST r1 second one is GST r3b these two forms are currently required to be filled by various businessman and professionals I'll give you this one one-liner about what is GST r1 and what is GST on 3 V 1 is basically about it gives so I as a businessman I have to give details to the Government of India as to how much sale or how much services I have rendered the worth of that I have to submit in GST r1 so just as an example if I have sold goods worth rupees 10 lakhs in one month as an example okay if I have sold lectures worth rupees 10 lakhs in a month as an example then I have to tell this to the government that yes I have sold these lectures 10 lakhs worth on these I have collected 18% GST and this is my total tax liability okay this is what I have to tell in GST are one of course I have to give the details b2b b2c all these details have to be given here b2b is business to business and b2c is business to customer okay then what happens with GST are 3 B now in 3b basically my tax liability is calculated okay so whatever sales have done I'll give you a very simple example just pay attention assume that I have sold goods worth rupees 100 and I collected 18 rupees GST okay then what is my tax liability I collected 18 rupees from the customer as a business one I have to pay this 18 rupees to the government okay but could it happen that me as a businessman I have also purchased you to someone yes so I will give you a simple example assume that I am selling this calculator okay when I sell this calculator I said it at hundred rupees have collected 18 rupees okay I'm a trader okay so assume I purchased this calculator from a wholesaler at 80 rupees okay I purchased at 80 rupees and I have paid 8 rupees GST as an example to the wholesaler right so let's take this attention 18 rubies collected from the customer 8 rupees or whatever whatever I said maybe I'd said eight rupees only eight rupees I have paid to the supplier okay so now I tell the government then 18 rupees collected - eight rupees paid I am going to pay you only ten rupees okay that is all as a concept of GST credit in my next video I am going to talk about this same concept of GST credit in a bit more detail I hope as of now we have understood a little bit so I just paid the net amount and not the gross amount collected as a GST to the government okay so this is to be told in GST or 3b and whatever is the liability have to pay to the government by 20th of the next month so right now we are in the month of November so whatever amount I collect from my customers I have to paid by 20th or who December I hope you have understood this participant in the beginning of the video I had talked about QuickBooks so now is the time to understand all the features all the key features of QuickBooks in a much simplified manner the very first feature of QuickBooks is that you can get real-time access anywhere so what does it mean even if when I'm in my office or even if I'm at some other place or even on a vacation let us say but if I want to tell some important data some urgent data to my client it'll be very easy for me because I can choose when to access that data on what device also I can I can directly access it through my laptop or from my mobile it becomes very simple to track all the data and very important at a real-time basis one more very important feature of QuickBooks is that I can now also give certain permissions amongst my staff so just an example if I want one of my staff member to edit the accounting entries I can give an edit only option to another employee if I want to ensure that he or she will be able to only view it but not edit it so such specific permissions me as a chartered accountant I can definitely assign certain permissions among my staff members so let's turn to the second feature one more very important feature but this is only for chartered accountants there will be a great increase in the productivity of your team and how can this happen so I'll just take it through a screen shot of this QuickBooks dashboard what I can do is I can assign certain tasks to my team members so for example I am saying that one of my team member a has to manage the GST our filings team member B has to look after tedious team number team member C will have to check whether all the reports the weekly reports monthly reports whether they are properly prepared on time or not so for that I can easily assign tasks to my members I can also set deadlines for them and I can check whether they are doing it or not because I get to real-time updates so here you can see that today 1 2 3 4 I have to do all these things week 4 what I have to do this week these are the four tasks which have to do next week these are the six tasks that I have to do in next 30 days what tasks I have to do all this thing at one shot I can get in one single template there's going to really simplify the work of Chartered Accountants and I'm sure because you have all such permissions where you can add team members you can assign specific roles to them with this ease of access definitely the overall productivity of your team is definitely going to increase moving on to the next feature which is IP a mind-blowing feature where you can have multiple users and very important as a small and medium-sized business you can invite the accountant to view your accounts so I remember when I was doing my articleship we also had certain clients where out sourced accounts writing to us okay so what we used to do we used to do the accounts writing for them once we were done with the entire accounting then we used to give the data to them is to backup the enter data and give it to them then only they were in a position to check their books of account now what can happen I can easily access their books of account on a real-time basis and so can they so it will be a seamless connectivity between the C and the client and that's the amazing feature number 3 of QuickBooks another amazing feature is about the banker net you might have seen other accounting softwares I will not name any but it's so very popular software in India we're in a you know having bank statement and having BRS is a very tedious thing I mean just understand this as an accountant what I am required to do is that I'd have to take a bank statement from the clan I have to enter each and every transaction then I have to check which checks are cleared which are not it clear I'd have to fill in the check dates and then the BRS will be prepared with QuickBooks what you can do is directly you can actually assign or you can link your bank account with QuickBooks account so automatically your bank entries start getting updated as for the bank's records and you also need not prepare a separate bank reconciliation statement you have to set certain rules for that there are certain basic stuff which were required to do but once that is done when no need of separately preparing PRS there's going to be a very easy task for you now one more important feature is that you can generate hundreds of report in QuickBooks you can have a customized P&L a customized balance sheet you can even have an analysis in the form of trends in the form of a graphical presentation this will actually simplify a non commerce person's life because for a non commerce person to understand the balance sheet becomes a little bit tricky but if you can see certain graphs and certain trends in front of him it becomes very easy for him to understand how his business is performing accountants the important point is that si will get a 360 degrees view of the business one more important feature for a chartered accountant is that you can now easily follow up on the payments because you will get again online tracking real-time tracking of data and there are so many more features for even chartered accountants now one more important feature in the same is that you can also easily file your GST returns which I discussed GST are one GST r3b with the data which is generated through QuickBooks so QuickBooks actually simplifies your processes for filing these various GST are returns as well very important feature again is that I can manage all my clients in a single screen now here you can see that all these are my clients and I can just quickly go into the data of any single client there could be certain clients who are also not using QuickBooks but still I can get certain limited feature access if the client is even not using QuickBooks now what is the most important point if I get all the clients at one place it becomes easy for me to manage and this is like all things at one place so I remember again when we we used to require certain invoices from the client then at that time there wasn't whatsapp so they were they used to scan the document then they will send it by email sometimes the email we were not able to find where they have actually sent it on which email on whose email all that is cut out what you can do is this in QuickBooks only you can now ask the client to scan the document and that scanned document also gets fixed in the same client document on the same page so it's all at one shot their accounting data there are bank statements their invoices any other document all at one place that's the biggest advantage I feel now the last point is that even if I purchase QuickBooks and if I am in a difficulty I'm not able to understand how to use it then what they have a separate training stuff who can help you they'll have a separate product coach who can help you so that whenever you get stuck up in any specific screen or while using any specific tool that they have then it'll be very easy for you to just contact their team they'll get back to you and all your queries will be sorted if you want to know more about QuickBooks don't forget to check out the link which I have given in the description box below just click on that link and you will get to know about the one of the accounting sofas we just come up in India I hope you have enjoyed today's video and if you have enjoyed this video if you feel that I am giving you some value addition do consider subscribing to my channel do consider sharing it with your friends and I hope I'm able to add value and I'll continue doing that in the future as well that's it from my side for this video jaian bye bye [Music]

Channel: CA Rachana Phadke Ranade

Views: 677,957

Keywords: gst, rachana ranade, gst basics, Types Of GST, basics of gst, What is GST, CA, gst course, gst act, QuickBooks, goods and service tax, goods and services tax, gst registration, gst accounting, gst apply, gst bill, gst billing software, gst calculation, gst composition scheme, gst means, gst rates, gst news latest, gst explained, gst explanation, gst in india, gst basic knowledge, accounting software, online accounting software, goods & services tax, gst news

Id: 76UUB7Vv8s8

Length: 18min 17sec (1097 seconds)

Published: Sat Nov 16 2019