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What is GST, Why an accountant needs to have updated knowledge on GST at all times?

GST Interview Questions and Answers

A big salute to Modi government for bringing a huge change in Indian taxation. GST is like a hidden ocean. There are so many updates coming in GST nowadays.It’s a very challenging area of study. People need expert advice to avoid difficulties in tax calculation. There are also so many penalties if we fail to know the provisions. Companies are hiring only those people who are well versed in GST accounting. There are a lot of new terms which are not understood by the common man.

Since GST is a destination-based tax there should be documentary evidence to pay tax and avail credit. There are also mandatory books to be maintained in order to get a tax credit.  Main Advantages of GST are:

  1. It is the simplest tax regime
  2. It ensures easy compliances
  3. It promotes trade and industry
  4. Helps to increase nations GDP by increasing Export and free flow of foreign currencies
  5. Equal distribution of taxes between the manufacturing and service sector
  6. Boost to overall business efficiency
  7. Removal of cascading effects on taxation
  8. Companies under unorganized sector will come under tax purview
  9. In long run there is every possibility of lower price for goods
  10. A great transparency over indirect taxes
  11. Composition scheme available for small businesses

An accountant must have a thorough knowledge in the following areas

  • Eligibility of utilization of input tax credit: Certain GST payments made can be set off against GST liability. While some cannot be considered for this purpose. Due care should be taken to understand and analyze the various input credit that can be considered.
  • Adhere to all GST due dates: GST payments should be made monthly or quarterly depending on the type of business and there are due dates to be followed. An accountant should have a clear idea when he is supposed to make payments, file returns and he should do them before the due date.
  • Make payments for GST: GST payment should be made online through GST portal. There are various steps to be followed while making payments. An accountant having experience in making GST payments will know that he has to ensure the tax amount is correct and be careful about various other factors. He is also required to ensure the calculation is correct.
  • File returns: Every company registered under GST act has to compulsorily file returns. There are forms that are applicable to each type of business.
  • Suggestions to the management: An accountant can give suggestions to the management regarding invoicing and billing. They can also have discussions regarding input credit and how to utilise it and pay tax wisely.

After gathering knowledge about GST we can easily say that it’s the simplest tax reforms compared to the previous indirect tax provisions. We can calculate tax on our own and save time and money. Too many questions may come to your mind

  • What is GST?
  • What are the different types of GST?
  • Who must maintain accounts?
  • How does it work?
  • What is GST accounting method?
  • GST an Asset or a Liability?
  • When is GST to be collected and remitted?
  • How tax is remitted through online portal?
  • What are GST Returns and their applicability?
  • How GST to be shown on Balance sheet?
  • What are the eligible taxes
  • What are rates applicable for each type of product and services?
  • What is GST Ledger?
  • What are the services and goods which are outside the purview of GST?
  • What is RCM concept under GST?
  • What are the penalties for non-collection and remittance of GST?

All your concerns and doubts regarding GST can be solved with the best GST theory and practical training. Come join a 20 hours class for GST For Accountants at Finprov. Expert faculty with more than 25 years of professional experience are handling classes. Be an expert in your field, the world will follow you.

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