GST refers to Goods and Services Tax. GST is India’s most ambitious and significant tax reform since independence. Its aim is to levy a single uniform tax on all the goods and services across India. GST seeks to replace various central and state-level taxes, bringing more producers within the tax net thereby making the Indian market more integrated. By enhancing the efficiency of the tax regime can substantially boost growth and government finances
GST is an indirect tax that seeks to replace various indirect taxes in India such as VAT, service tax, and excise duty. GST Act became applicable throughout the nation from 1st July 2017. GST is a multi-stage, destination-based tax regime that is levied on every value addition. GST is a multi-stage, comprehensive tax system that applies to the sale of goods and services. The primary aim of this tax regime which is applicable throughout India is to curb the cascading effect of multiple indirect taxes.
In a nutshell, GST is an indirect tax that is levied on the sale, manufacture, and consumption of goods and services. It applies to the entire nation and seeks to make it a common unified market. With the support of a uniform tax structure, GST will enable smooth supply across the whole supply chain in all states.
As per the provisions of the GST Act, 2017, any business with an annual turnover of Rs. 40 lakhs and above should register for GST. For hill states and north eastern states, the threshold of turnover is Rs. 10 lakhs. Moreover, following individuals also need to register for GST and acquire GSTIN.
The composition scheme is a GST tax levy alternative meant to make compliance easier and lower compliance expenses for small taxpayers.
The key feature of this scheme is that businesses or individuals who choose to pay tax under it can pay a flat percentage rate of turnovers every quarter rather than paying tax at a monthly rate.The composition scheme of the GST now has more flexible restrictions, including a higher turnover threshold for applicability, the inclusion of service providers, and lower tax rates. This policy also applies to under-construction, ready-to-move-in, and cheap homes in the real estate sector.
Manufacturers or traders with a taxable business turnover of up to 1.5 crores (75 lakh in the case of North-Eastern States) are eligible for the composition scheme. If a service provider's taxable turnover is less than $50 lakh, he is eligible for the scheme. Businesses with interstate deliveries, ice cream, pan masala, and tobacco manufacturers, as well as e-commerce players, are not eligible for the composition plan.
By giving relief on GST filings, procedures, and tax rates, the composition scheme effectively recognizes the importance of the MSME sector.
Compliance is simplified because no detailed accounts and records need to be maintained, and no tax invoices are required to be produced. The filing of quarterly tax returns has been simplified. Payment of tax on a quarterly basis and at a lower rate has been simplified. Composition taxpayers are required to pay tax at a lower rate than the usual GST rate of 18 percent, resulting in a smaller impact on their working capital. There will be no regular tax invoices sent. In the case of a NIL return, the same might be submitted via SMS.
There are 4 types of GST that are used to distinguish between inter-state and intra-state supplies. This distinction helps to reduce the burden of indirect taxes.
The GSTIN is a unique 15-digit code that is given to every taxpayer. GSTIN is generated based on the PAN and the state you live in. Before the introduction of GST, all registered dealers under the state VAT were used to get a TIN number. Now, GSTIN has subsumed TIN.
There are various types of GST registration such as
There are various advantages of GST registration such as:
|No tax||Essential commodities such asFood items like Non-food items like||Lodge and Hotel services carry a tariff below INR 1,000, Jan Dhan Yojana and Bank charges on savings accounts, etc.|
|5% GST||Food items such asNon Food items such as:|
|12% GST||Food items such as Ghee,Non-food items such as|
|18% GST||Food items such asNon-food items such as:|
|28% GST||Items such as|
|Type of Entity||Documents Required|
|Partnership and LLP|
|Private Limited Company and Public Limited Company|
You have to provide all the information required for filling the GST application and need to upload all the document in the Intine Console or Share with Intine Expert
Once all the required documents are submitted, Intine expert will file the form, Customer needs to provide OTP for verification. Once the application is submitted successfully, you will receive an ARN number (application number).
Once the application is Submitted, GST department will examin the application and may approve the application or ask for clarification . If there is clarification from the GST department, Intine Experts will file it on priority basis. You will be updated on the status.
Types of GST Registration
CGST stands for Central Goods and Services Tax. CGST is a tax charged on the intrastate supply (home state) of goods and services by the central government of India and is governed by the CGST Act 2017.
SGST stands for State Goods and Services Tax. SGST is a tax charged on the same intrastate supply (as CGST) of goods and services and is governed by the State Government.
IGST stands for Integrated Goods and Services Tax. IGST is a tax levied on all inter-state supplies (states other than home) of goods and services. IGST is also applicable on any supply of goods and services in both cases of import and export from India. In IGST, the exports are zero-rated and the tax is shared between the central and state government at the same proportion. .
GST registration has no expiry and does not require any renewal. It may be suspended or canceled in case taxpayer failed to comply with the requirement. .
It is a simplified tax scheme under GST for the taxpayers. Small business owners can do away with the tedious GST formalities by paying GST at a fixed rate of turnover.
Businesses with turnover less than 1.5crore can opt for composition scheme.
The Aggregate turnover is calculated on the basis of supplies made all over India from a person/company using the same PAN. It is the sum of supplies made under following categories: Exports of goods/services, Exempted supplies, Inter-state supplies, Taxable supplies However it excludes following Value of inward supplies, Taxes (including cess), Value of supplies taxable under reverse charge, Value of non-taxable supplies
Inter-state supply means the goods or services supplied outside the home state. For Example A mumbai based company supplying services to Delhi based company.
Intra-state supply means the goods or services supplied within the limits of their home state. For example A Delhi based company supplying goods or services to another Delhi based company.
PAN Card is a must for GST.
Yes, if the businesses are located in the same state you can have one GST number for multiple businesses.
If your business has two separate verticals you may submit a separate application for each vertical to get a new GST number within the same state. If you are working in multiple states you can apply for GST registration in each state.
Yes, any taxpayer can do the registration under GST on a voluntary basis.
Yes, it mandatory for an e-commerce operator to obtain GST registration
The business owner needs to reapply for GST registration with all requisite documents due to which the application was rejected earlier.
With the help of HSN/SAC one can check the GST rate in which his product/services falling
Yes, if your business turn over crosses the GST threshold limit or you are an e-commerce operator.
Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bills on the GST portal.
Any business with a turnover of Rs.40 lakh and above must register for GST. In case of north-eastern and hill states, the turnover threshold for GST registration is Rs.10 lakh. e-commerce operator must register for GST regardless of their turnover.