GST

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WHAT IS GST ?

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture upto final consumption with credit of taxes paid at previous stages available as set off. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.


The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian Government. The tax replaced existing multiple Central and State Government taxes.


The tax rates, rules and regulations are governed by the GST Council which consists of the finance minister of central and all the states. GST is meant to replace a slew of indirect taxes with a unified tax and is therefore expected to reshape the country's 2.4 trillion dollar economy. GST tax rates vary from 0% - 28% depending on the type of service or Nature of Goods Your business is selling. The GST is paid by consumers, but it is remitted to the government by businesses selling goods and services. In effect, GST provides revenue for the government.

ONLINE GST REGISTRATION

GST (Goods and Services Tax) is essentially an Indirect tax which has been implemented to replace numerous taxes in India. Onlne GST registration was passed in the Parliament on 29th March 2017 yet it became effective on 1st July 2017 in India. As per the changes in the 32nd council meeting, the threshold limit for GST registration is 40 lakhs for the supplier of goods and 20 lakhs for the supplier of services. Along with that, the North-Eastern States have an option to choose between 20 lakhs and 40 lakhs. Once you have registered under this regime, you will receive a unique GSTIN (Goods and Service Tax Identification Number). There are various advantages of GST registration. You can also avail input tax credit and collect GST from recipients of goods and services.

Online GST registration can be easily done by visiting Online GST portal. It is easy to fill the form on GST online portal yet at the same time you require the expert's to fill the form with accurate information and submit the documents accordingly. Few of the terms while drafting for GST registration cannot be understood by many of the taxpayers. Therefore at the initial stage GST registration should be done with the help of experts and here at Legaldocs, you will be able to get done with your GST registration with a simple and quick process.

BENEFITS OF GST REGISTRATION

1. You can legally collect taxes from your customers and pass on the Tax Benefits to suppliers.
2. Business Becomes 100% tax Compliant
3. You can Claim Input Tax Credit which you have paid on your purchases and improve profits.
4. GST certificate can be used as one of the documents while opening current account or Business Account.
5. You can easily apply for various states and Central Government tenders if you have GSTN.
6. Expand your business through various channels like Online, Import-Exports
7. To start payment gateways and use mobile wallets GST number is used.

WHAT ARE DIFFERENT TYPES OF GST REGISTRATION?

For the filing of GST, transactions need to be classified depending on the type of customer to whom the sale is done. Following are the two different types of GST registration:

Registration Under Composition Scheme:

The Composition Scheme is for the small taxpayers in order to ease the tax compliance for them. This scheme allows eligible taxpayers to pay a percentage of their yearly revenue as a tax. Like small retailers, eateries and trading businesses. This will relieve the taxpayers/ businesses from collecting taxes from their customers directly and adds benefits as mentioned below:

  • File Single Quarterly return, not multiple monthly returns.
  • Pay Lower Tax which gives competitive advantage
  • Books of Accounts and Records are easy to maintain under GST norms.
  • In short, this is a customer who has a business which is registered under the composition scheme of GST and has a GSTIN.

Following is the eligibility criteria to register under GST Composition Scheme :

  • Must be a Registered Taxpayer
  • Annual Turnover should be less than Rs 1 Crore
  • Manufacturers of Goods, Dealers, and Restaurants (Not Serving Alcohol) can opt for this scheme.

Registration As a Casual Taxable Person:

Casual Taxable Person is a person who supplies taxable goods or services occasionally like a event management company which has various events in different states needs to register as a Casual Taxable Person for that particular taxable state before supplying or offering any goods or services.

WHO NEEDS GST REGISTRATION NUMBER?

  • Businesses having annual turnover morethan Rs 20 Lakhs Per Annum (Rs 10 Lakh for North Eastern States)
  • If business is dealing in more than one state
  • If your business has previous registration under VAT, Excise Laws, Service Tax Laws
  • Selling your goods or services online (like selling on Amazon and Flipkart)
  • If you are providing services and goods outside India.

PT (Professional Tax)

This is a state-level tax applicable to salaried employees and professionals. Employers deduct PT from employee salaries and pay it to the state government.

DSC (Digital Signature Certificate)

It's an electronic form of a physical signature used for online transactions, filings, and authentication of documents. It ensures security and validity in online interactions.

DIN (Director Identification Number)

It's a unique identification number assigned to individuals who wish to become directors in companies. It's a mandatory requirement for anyone looking to hold a directorial position in a registered company.