GST Registration
Goods and Services Tax (GST) is a comprehensive multi stage tax system levied on the supply of goods and services or on every value addition. It is a single indirect tax law for the entire country .The main purpose for the introduction of the aforesaid law was to replace the various indirect taxes such a value added tax (VAT), service tax, excise duty etc. .The Goods and Services Act was passed in the parliament on 29th March 2017 and came into effect on 1st July 2017.
TYPES OF GST
There are four kinds of GST, as follows:
Central Goods and Services Act – CGST
It is a tax collected by the central government on an intra state sale or supply of products and services. CGST has replaced all the previous central taxes – Central Excise Duty, Customs Duty, Service Tax, CST etc. The revenue collected under CGST is remitted to the central government.State Goods and Services Act - SGST
It is the tax collected by the state government on an inter state sale of products or services within a state .The state government shall govern the levy of SGST. The said Tax substitutes previous taxes such as Entry Tax, Value Added Tax, Entertainment Tax, State Sales Tax, cesses and Surcharges .The revenue collected under this tax system is remitted to the state government.Integrated Goods and Services Act –IGST
It is a tax collected by the central government for an inter state sale of products and services. the central government collects the IGST and distributes it among the states .It is also levied on imports.Union Territory Goods and Services Tax – UTGST
It is the tax collected on the supply of the products and services in the Union Territories in the country – Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep etc.
Advantages of GST
- Eradication of cascading effect of tax
A unified system of taxation came into effect .The various tax implications at each step was eliminated.
- Composition scheme for small business
The new system has simplified and the compliance and tax burden on small businesses. Ventures with turnovers between Rs 20 Lakh and Rs 75Lakh shall benefit under the new tax regime.
- Threshold for GST Registration is higher
As per the VAT –tax structure, the businesses, which had turnovers exceeding Rs 5 Lakhs, were made liable to pay VAT.
- Helps regulate the unorganized sector
The effectiveness of GST implemented regulation and accountability to certain sectors like textile and construction .the provisions for online payments and diligent compliance has organized the functioning of these unregulated areas of business.
- Smooth operation in the Ecommerce sector.
Prior to GST implementation, the ecommerce arena suffered much. There were numerous VAT laws they had to comply, E.g. : Submission of VAT declaration for online portal delivery services .The post GST era has resolved the differential treatment of the sector alongside defined provisions for their easier supply of products across states.
- Unified Tax System
Initially, the tax system comprised of service tax , and VAT etc. .The Compliance were variant in different states ,and thereby a lot of inconsistencies arose .With the introduction of GST ,all businesses shall pay a uniform tax for the supply of goods and services .
GST REGISTRATION PROCEDURES
It is mandatory that a business having a turnover of above Rs 40 Lakh has to register. The turnover threshold is Rs 10 lakh for the businesses functioning in the hill states and north eastern states .The registration is very simple and can be done online on the GST portal .it is a criminal offense to do business without a GST registration. Heavy penalties shall be levied for non-registration.
Documents required for GST registration
- PAN Card
- Aadhar Card
- Business address proof
- Digital Signature
- Bank Account statement and cancelled cheque
- Business Registration Certificate
- Director’s or promoter’s ID proof, address proof and photograph
- Letter of authorization or Board Resolution from authorized Signatory.
Once the registration is complete, a GST number is issued .The government doesn’t charge any fees when it comes to registration of GST
GST RETURN FILING
Under the new GST rules, GST returns are the Goods and Services Tax Returns forms that taxpayers need to file with the income tax authorities of India. This document furnishes all the purchases, sales, tax paid on purchases and tax collected on sales. Filing the tax returns is now automated and can be filed online using the software provided by the Goods and Service Tax Network (GSTN)
