Overview of Goods and Services Tax

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    A Leading Overview Of Goods & Services Tax

    Overview of Goods & Services Tax or GST means a broad-based consumption tax that is levied on the import of goods, as well as the supply of almost all goods and services tax in Bangladesh. In other countries GST is known as value added tax or VAT. The current GST rate is 6 percent in Bangladesh.
    Overview of Goods and Services Tax (GST) in Bangladesh

    Registration Made Easy With Our Overview of Goods & Services Tax

    All companies in Bangladesh must register for GST if their annual taxable revenue is more than 15%.You can also choose to voluntarily register for GST. Once approved, you must be registered for at least two years.

    Collecting Goods & Services Tax For You

    Once you have registered for GST, you must charge GST at the existing rate on your supply. This GST which is charged and collected is known as output tax. Output tax has to be paid.
    The GST you incur on business purchases and expenses (including import of goods) is known as input tax. If your business meets the conditions for claiming input tax, you can claim input tax on your business purchases and expenses
    Ensures input tax credit mechanism. Only value is added at each stage of the supplied chain.

    Our Rules Of Overview of Goods & Services Tax Supply Are Effective

    The output tax for most transactions will be calculated based on the following:

    1.When an invoice is issued
    2.When payment is available

    Terms For Claiming Goods & Services Tax

    These conditions must be met for input tax:
    1. You will GST-register;
    2. The goods or services must be provided to you or the goods must be imported by you;
    3. Products or services are used or will be used for your business purposes;
    4. Local purchases must be supported by a valid invoice, or a simplified tax invoice when claiming input tax;
    5. The goods which must be supported by the import permit shall be the importer;
    6. Input tax is responsible for direct taxable supply, or out-of-scope supply which will be taxable if made in Bangladesh;

    Get Simplified Goods & Services Tax Invoice

    Tax invoice is the main document to support the input tax claim. Tax invoices must be maintained by your customers and suppliers for at least five years. This tax invoice does not have to be submitted with the GST return.
    A tax invoice will be issued when your customer registers for GST. Your customer will need to keep this tax invoice as a supporting document in order to claim input tax on standard-rated purchases. Generally, a tax invoice must be issued within 30 days from the time of delivery. Zero-rated supplies, discounted supplies GST-non-registered customers will not need to issue tax invoices.
    If required, the tax invoice must provide details of exemptions, zero-rated or other supplies. The total amount payable for all types of supplies should also be specified separately.

    Expenses incurred by the employee on behalf of the company

    Generally, it is not allowed to claim input tax for purchases if the name of the tax invoice company is not addressed.

    An input tax claim can be granted if it is proved that your employee is acting as an agent for your company in the provision of goods or services.
    Input tax claims comply with the following conditions:

    1. A GST-registered business;
    2. Products or services are used for business purposes;
    3. The input tax is directly responsible for the taxable supply which must be taxable if made in Bangladesh;
    4. Input tax claims Expenditure under Regulations 26 and 27 of the GST Regulations was not sanctioned.

    FAQ For Overview of Goods & Services Tax

    What taxes are levied on goods and services? How does networkBd help?

     Goods and Services Tax (GST) is a value added tax that is levied on most goods and services sold for domestic use. GST is paid by NetworkBD consumers, but is sent to the government by businesses selling goods and services.

    Is it necessary to register all traders under goods and services tax by NetworkBD?

    By NetworkBD a trader is only dealing in exempt goods or where his turnover is below BDT 20 lakh (but not employed in interstate supply) in their financial year is not required to register under GST.

    Do independent contractors charge GST?

    Unlike employees, almost all independent contractors have to charge GST / HST for their services. It will apply whether they are included or not.

    Can you claim GST from NetworkBD to contractors?

    You can register for GST as an independent contractor, freelancer or sole trader – no company needs to be registered with the government. As an individual you can increase the same business expenses by NetworkBD.

    Save Your Valuable Time With Our Goods & Services Tax