GST (Goods and Services Tax) is an indirect tax applied in India to provide goods services. It is a destination-based, multistage, comprehensive tax: comprehensive since it includes practically all indirect taxes (like VAT, Service Tax, etc.) except for a few state taxes. The GST, as a multi-stage tax, is imposed at each stage of the production process. However, it is intended to be refunded to all parties involved in the various stages of production except the final consumer. As a destination-based tax, it is collected from the point of consumption rather than the point of origin.
For tax collection purposes, goods and services are separated into five tax slabs: 0%, 5%, 12%, 18%, and 28%. On the other hand, petroleum products, alcoholic beverages, and electricity are not subject to GST and are instead taxed separately by state governments.
A taxpayer's registration under GST is the process through which they become a registered taxpayer. A unique registration number known as the Goods and Services Tax Identification Number is provided to a business once officially registered (GSTIN). This is a 15-digit number that the federal government assigns to taxpayers after they register.
• Any business involved in the supply of goods whose aggregate turnover exceeds Rs 40 lakhs in Normal Category states (Rs 20 lakhs in Special Category States) Note: This provision does not apply if your turnover consists only of the supply of exempted goods/services that are exempt under GST.
• Any business entity that provides services and has aggregate turnover of more than Rs 20 lakhs in a financial year for states in the Normal Category (Rs 10 lakhs for Special Category States)
Normally following persons are required to compulsory registration without any threshold limit (40lakh/20lakh/10lakh).
• A person who transports goods across state lines (Inter-state supply).
• Agents of a supplier.
• Those paying tax under the reverse charge mechanism:
• Casual Taxable Person (CTP) (Note No. 1).
• Non-Resident Taxable Person(NRTP) (Note No. 2).
• Input Service Distributer (Note No. 3).
• E-commerce Operator or aggregator (Note No. 4).
• Online information and database access or retrieval (OIDAR) (Note No. 5).
In a GST-applicable state, a person delivers goods and services as-needed but does not operate from a set location. Such a person will be classified as a casual taxable person under GST. A casual taxable person in Pune owns a place of business in Bangalore but provides taxable consulting services in Pune, where he has no business.
Non-Resident Taxable Person supply goods or services in a GST-eligible region but do not have a permanent business presence in India. According to GST, such a person will be considered as a Non-Resident taxable person
ISD means an office of the supplier of goods or services or both which receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of GST paid on the said services to a supplier of taxable goods or services or both having same PAN as that of the ISD.
Any person who owns, operates or manages digital or electronic facility or platform for electronic commerce that facilitates the supply of goods and services.
Online Information Database Access and Retrieval services (OIDAR) is a category of services provided through the medium of internet and received by the recipient online without having any physical interface with the supplier of such services. E.g. downloading of an e-book online for a payment would amount to receipt of OIDAR services by the consumer downloading the e-book and making payment.
CGST = Central Goods and Services Tax
The Central Goods and Services Tax(CGST) is a tax which replaces all prior taxes levied by the federal government. Central surcharges and cess, as well as central excise duty, are examples of such taxes. The CGST is a tax paid on goods and services supply within a state.
SGST = State Goods and Services Tax
The State Goods and Services Tax (SGST) is a single tax levied on intrastate supply of goods and services, except alcoholic beverages.
IGST = Integrated Goods and Services Tax
The Integrated Goods and Services Tax (IGST) is a tax that applies to both goods and services. One of the three components of the Goods and Services Tax is the IGST. When goods and services are transferred across states, the IGST tax is imposed.
UTGST = Union Territory Goods and Services Tax
The Union Territory Goods and Services Tax (UTGST) is a tax that applies to supply of goods and services in the Union Territories. In the Andaman and Nicobar Islands, Lakshadweep, Daman Diu, Chandigarh, and Dadra and Nagar Haveli.
• Pan Card
• Aadhar Card
• Business Name
• Copy of Rent Agreement (If Office is Rented)
• Ownership document (If Owned property)
• Latest Electricity Bill
• Passport Size Photograph
• Mobile No
After obtaining GST registration, a provider of goods or services can claim credit for GST paid to a former supplier for business activity. The cost of goods and services has been reduced, lowering supply pricing.
The online GST registration process is simplified. After the registration process is completed, The GST registration number, commonly known as the GSTIN, is allotted to the applicant on a certificate form. The registration is valid for life and does not need to be renewed.
If the supplier is registered under GST, whether mandatory or voluntary, supplier can legitimately collect taxes. Furthermore, the provider may pass the credit to buyer. The status and responsibilities of a voluntarily registrant are the same as those of a taxpayer who has completed the statutory requirements. With this registration, the registrant can also send invoices to consumers.
After registration, each registrant is responsible for ensuring compliance in the form of timely return submission. Under the GST regime, these compliance requirements are simplified.
Small businesses can opt composition scheme and reduces burden of tax compliances.
When a company drops under the purview of GST, there is a penalty for failing to register. If the offender has not applied for GST registration and seeks to escape it on purpose, the INR 10,000 or the amount of tax evaded whichever is higher.
Those who choose the Composition Scheme despite not being eligible face a penalty of 100% of the tax payable or Rs. 10,000, whichever is higher.
There is a penalty of Rs. 100 each day under CGST Act and Rs.100 each day under SGST Act. if a person does not file GST return on time. The maximum sum can't be more than Rs. 5,000.
There is also a provision that punishes tax fraud offenders with a jail term.
No, a GST number is unnecessary until the business's total revenue surpasses the general category limit of 40 /20 lakhs and the specific category limit of 20/10 lakhs. The company does not fall under the required registration category.
According to GST laws, every business required to register for GST must do so separately for each state in which it operates.
The Indian government does not charge a fee to register for GST.
CGST: Tax component levied by the Central Government over the Intra-State trade transactions.
SGST: Tax component set by the State Government over the Intra-State trade transactions.
IGST: Tax component levied by the Central Government over the Inter-State trade transactions.
No, GST registration process is completely paperless.
Please enter the PAN of your business. In case of proprietor, please provide your personal PAN.