Introduction to GST
GST is an indirect tax levied on the supply of goods and services
It is applicable to all India service providers, traders, and manufacturers as per their turnover basis. As per government latest notification, a business whose turnover exceeds Rs 40 lakhs* is required to register as a normal taxable person. This process of registration is GST registration. For a certain set of business GST is mandatory.
In 2017 parliament if India has passed the Goods and Service Tax act (GST act) and this act came into effect from 1st July 2017. It’s an indirect tax which replaced many other prevailing indirect taxes in India. It is all in one tax which includes a variety of state taxes like VAT, Entertainment Tax, Octroi, etc and central taxes like CST, Service tax, Excise duty, etc.
After registering under this a unique identification number given to each GST taxpayer known as GSTIN (GST identification number)
GST has three components, which includes:
Central Goods and Service Tax (CGST)
State Goods and Service Tax (SGST)
Integrated Goods and Service Tax (IGST)
Tax Rates under GST
Basic necessity items are exempted under GST like milk, salt, bread, etc.
life-saving drugs and Household necessities etc are taxed at 5%
Processed foods and computers are taxed at 12%
capital goods, industrial intermediaries, Hair oil, toothpaste and soaps, and services are taxed at 18%
Luxury items are taxed at 28%
You can check the tax rate for all products after clicking on this link https://cbec-gst.gov.in/gst-goods-services-rates.html
Documents required for GST Registration
PAN Card of proposed proprietor / Directors/ Partners
Aadhar Card of proposed proprietor/ director/ partners
Photographs of all director/ proprietor/ partners
PAN card of business entity (company/partnership/LLP)
Certificate of incorporation or Partnership agreement (company/ LLP/ Partnership)
Address Proof of proposed business address (any one):
Rent agreement
Electricity bill
Gas bill
Water bill
Who needs GST Registration?
*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.
Individuals who were registered under the Pre-GST laws (viz-a-viz Excise, VAT, Service Tax, etc.)
Businesses that have a turnover of INR. 40 Lakhs and above (INR. 10 Lakhs for North-Eastern States, Himachal Pradesh, and Uttarakhand)
Casual taxable person / Non-Resident taxable person
Agents of a supplier
Input service distributor
Businesses/Individual required to pay tax under the reverse charge mechanism
A person who does trade via an e-commerce aggregator
An e-commerce aggregator
Any person, other than a registered taxable person, who supplies online information and/or database access and/or retrieval services to a person in India from a place outside India,
Process of GST registration
Step 1: Go on the GST government site and click on new registration and fill the part –A of the form and do the email and mobile verification, after this you’ll get your TRN (temporary registration number) which will be valid for next 15 days.
Step2: with obtained TRN fill the Part-B of the form where you need to
Fill the business detail like name of the business, business state jurisdiction, central jurisdiction, the reason for obtaining registration and other business detail as perform
Fill the bunnies owners detail like name, address, mobile number, and email id
Fill the authorized person detail
Fill the business address detail and attach the business address proof
Add the additional business address detail if have in the same state
Fill the HSN code for your goods or service which your business is providing
Step3: Submit the application after verifying from OTP received on registered mobile or email id
Step4: Within 7 days the GST authority will verify your application and raise the clarification if needed, if not then it will issue the GST registration certificate in the name of the organisation.
Step5: Raised clarification must be filed within 7 days and submit it again if the authority will satisfy from your clarification then it will issue the certificate if not then again it will ask for clarification or may reject your registration.
February, 2025
23
Monday
August 26,2019
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