Goods And Services Tax (GST) Registration

Goods And Services Tax (GST) Registration INR - 10,000.00

GST is the biggest tax reform in India since independence, to bring transparency and boosting global competitiveness in economic world. In world of economic uncertainty, India is in the brightest spot to capture this growing global trade and play vital role in its development. It will ensure increase in transparency in system, growth in government tax collection, reduced cascading effect of taxes on consumer, easier adjustment of input credit. It will also be an impetus in Manufacturing and Institutional Investment growth in India.

 

GST is one indirect tax for the whole nation, which will make India one unified common market. The GST shall subsume all the previous indirect taxes, except the Basic Customs Duty that will continue to be charged even after the introduction of GSTIndia shall adopt a Dual GST model, meaning that the GST would be administered both by the Central and the State Governments.

GST stands for Goods & Service Tax which implies the system of indirect tax collection in a country based on “one nation, one tax” policy.

GST is  destination based tax on consumption of various goods and services being provided. It will levied at all stages from beginning of manufacture to final consumption of products or goods or services, with credit of taxes paid at various stages available as setoff. In other words, only value addition will be taxed and ultimate consumer will have to born only one tax, instead of present system, of paying indirect taxes at various level like vat, excise, service tax, etc. It will subsume all ancillary and major indirect tax into one form of tax, which will be dually administered by Centre and States.

As per proposed law of GST in India, all the supplier of goods or provider of services are liable to pay GST. In specific cases like import or RBI services, it would be based on reverse charge mechanism. Further, the liability to pay is on the third person like aggregrator/ e-commerce company, concerned company will be liable. All activities would be subject to threshold of Rs. 25 lacs (Rs. 10 lacs in North-Eastern States) for paying GST. For instance, if Mr. Rajesh want to take registration in Kolkata or Dhanbad, he will have to pay Rs. 25 lacs, but if Mr. Rohit want to take registration in Nagaland then he might be charged Rs. 10 lacs.

Taxable services means any activities / services offered to someone for consideration and exceeding the limit of turnover as specified by government for taxability as such. For eg. Mr. Ramesh living in Kolkata offer services of Rs. 28 lac. to Mr. Ajit, in Asansol during F.Y. 2016-17, he will be liable to pay tax on such services since, the consideration for services has exceeded Rs. 25 lac. as such specified in law for non-taxability. 

GST tax structure of 5, 12, 18 & 28 percent  has been proposed with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess. Illustrating, Mr. Ajit sales, computer parts in Kolkata, GST will be charged @ 5%, but if Mr. Ravi sales, Motor Car – GST might charged @ 18%. Essential and basic commodity like wheat, rice, pulse, milk, food etc.  will be zero or at very low rate.  Precious items like gold will be charged at 4 percent, maximum rate of an item could go upto 31-32 percent eg. Sunita from Ahmedabad wants to buys Apple latest i-pod imported from USA, he mights have to GST at 30-32%, apart from Custom duty. Luxury & imported cars would fall under highest rate, but standard rate would be 5 percent, 12 percent and 18 percent as such.
 

GST requires persons to register for smooth and hassle free transaction and following people need to complement as such.

  • All Persons who are registered to pay existing taxes under various statute eg. VAT, Service tax, Excise etc. will be subsumed under GST. For instance, Mr. Akash from Ranchi, Jharkhand want to manufacture and sales plastic bottle, he don’t need to apply for VAT, Excise or Registration separately, one registration in GST would be sufficient.
  • Persons with whose Gross Turnover exceeds threshold as such specified by law.
  • Persons who are making and willing to make interstate supplies.
  • All Casual and non-resident suppliers of service or goods also need GST registration.
  • Above all Voluntary Registration can also be applied for those below threshold limit.
  • GST would also required in case for Unique-id for specific class of persons for eg. UN, WHO, Foreign diplomat etc. who exempted from such provisions and Class like SPV, Trust etc.

All those whose turnover exceed threshold are required to get GST registration mandatorily. Classes as specified by Government or in law as such. For eg. Input service provider, composition scheme adopter, Interstate supplier etc. are necessarily required to get GST registration, irrespective of Turnover. Like Mrs. Anita from Lucknow want sale goods in Bihar or Delhi, she will have to take registration of GST compulsorily, irrespective of her business turnover.

Document requisition would be same for all state or region, instead of erstwhile different policy of state in past. Documents would as follows:

 Person having Proprietorship concern : PAN, Address Proof of the Proprietor

Partnership Firm & Limited Liability Partnership concern:  Certificate of Incorporation, LLP Agreement / deed, PAN of the LLP, Identity Proof of Partners, List of no. of Partners, Address Proof of Partners like bank statement, utility bill etc.

Private Limited Company : Registration Certificate of Incorporation, MOA (Memorandum of Articles), AOA (Articles of Association of the company), PAN in the name of Company, Directors detail, Resolution passed by Company, Directors ID proof & address proof. 

Once all documents submitted application online, with the authority, it will take 3 days to grant GST registration no. subject to satisfaction of application by concerned officer on Prima Facie.

If application found incomplete or deficient, more information or explanation could asked by concerned officer, in that case, Registration would be given in within 7 working days.  Document should be either digitally signed or sent with requisite signed document to department.  Like Mr. Amit from Dhanbad want to take GST registration in Jharkhand on 02.01.17, he will have to apply online with GST portal and after submitting document and application he will be given Provisional GST no. after 3 days i.e. on 05.01.17, if error or compliance required by proper officer then it will be extended by 3 days and in that he will registration within 7 working days.

GST registration would be mandatory once cross threshold limit of turnover or the class of person specified by law as such. In order to claim the benefit and running business, it would be a biggest thwart to business. But involving in tax evasion or escaping to take registration would be subject to jurisdiction and penalty as such provided in law. However, it could vary for Central GST or State GST, subject to notification of central government.

Under GST 4 types of taxes viz. CGST, IGST, Additional tax & SGST will be paid. For eg. Geeta wanted to pay SGST, Kolkata she can adopt either of below mentioned method to pay taxes;

There will be three mode of payment :

  1. Electronic mode including CC/DC (credit & Debit card)
  2. Over the counter  Payments (Payments upto Rs. 1000/-, cash & cheque)
    (once challan generated, valid for 7 days)
  3. Payment by way of RTGS / NEFT
  4. Credit in Cash Ledger maintained with department.

Departmental officers could accept payment only in case of enforcement.

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