Launched on July 1 2017, the Goods & Services Tax (GST) applies to all Indian service providers (including freelancers), traders and manufacturers. A variety of Central taxes like Service Tax, Excise Duty, CST and state taxes like Entertainment Tax, Luxury Tax, Octroi, VAT are absorbed in one tax – GST, implemented on 01.07.2017. GST is to be charged at every supply chain step, with full set-off benefits available. The procedure for GST is entirely online and requires no manual intervention.
Every product goes through multiple stages along the supply chain, including purchasing raw materials, manufacturing, selling to the wholesaler, selling to the retailer and then the final sale to the consumer. Interestingly, GST will be levied on all of these 3 stages. Let’s say if a product is produced in West Bengal but is being consumed in Uttar Pradesh, the entire revenue will go to Uttar Pradesh.
Also, taxpayers with a turnover of less than ₹ 1.5 crore can choose composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
GST will have three tax components, which includes a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where centre and state will levy GST on all entities, that is when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre, i.e. when a transaction happens from one state to another.
Input tax credit lets you reduce your tax you have already paid on inputs and pay the remaining amount at the time of paying tax.
You pay taxes on the purchase when a product is purchased from a registered seller, and when you sell the product, you too collect the tax. With input credit, you can adjust the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance liability of tax, that is tax on sale minus tax on the purchase.
Every business or corporation that are involved in the buying and selling and good of services have to register for GST online. It is mandatory for companies whose turnover is more than ₹ 20 lakhs (for supply of services) and ₹ 40 lakhs ( for supply of goods) yearly to register for a GST.
All businesses making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, example Agents and Brokers.
Also, as per the recent notification, e-commerce sellers/aggregators need not register if total sales are less than ₹ 20 lakhs.
Goods and Services Tax (GST) is a value-added tax that is levied on the supply of goods and services in India. The GST tax rates in India are as follows:
In addition to these rates, there are some special rates that are applicable to specific goods and services. For example, gold is taxed at 3%, while crude oil and natural gas are taxed at 6%. GST is also levied on services such as telecom, insurance, and banking at the rate of 18%.
It's important to note that GST rates are subject to change and may vary depending on the type of goods or services being supplied. It's always a good idea to check the current GST rates before making a purchase or offering a service.
You can see the tax rates for all the products here: https://cbec-gst.gov.in/gst-goods-services-rates.html
Check out the GST calculator, which comes in handy to calculate the Goods and Service Tax using different slabs.
A GST returns is a document containing income details that must be filed as per the law with the tax authorities. Under the GST law, a taxpayer must submit two monthly returns and one annually. All returns have to be filed online. Please note that there is no provision for revising the returns. All invoices for the previous unreported tax period must be included in the current month.
Under GST, a registered dealer has to file GST returns that include: Purchases, Sales, Output, GST (On sales) and Input tax credit (GST paid on purchases).
GSTIN is a unique identification number given to each GST taxpayer. To verify a GSTIN number, a person who has a GST number can log onto the GST portal.
The Goods and Service Tax Network (or GSTN) is section 8 (non-profit), non-government, private limited company. GSTN is a one-stop solution for all your indirect tax requirements. GSTN is responsible for maintaining the Indirect Taxation platform for GST to help you prepare, file, rectify returns and make payments of your indirect tax liabilities.
The list of documents required for registration of GST for various business are as follows:
The Following Can Be Shown as Proof of Address of a Director
Add what works as identity proof, One can use a PAN Card, Aadhar Card as identity proof. For address proof, any of the director’s can show their voters ID, passport, telephone bill, electricity bill and telephone bill.
Step 1:Visit the GST portal and select ‘New Registration’
Step 2:Fill in the necessary details like name of business, state, pan card details, etc
Step 3:Enter the OTP and click proceed
Step 4:Make a note of the Temporary Reference Number(TRN)
Step 5:Check the GST portal and select ‘Register’ in the ‘Taxpayers’ menu
Step 6:Enter the TRN and proceed
Step 7:Enter the OTP received on your registered mobile number or your email and then proceed
Step 8:You can check the status of your application on the next page
Step 9:Fill in the necessary details and upload the necessary documents
Step 10:Submit your application after verifying by one of the three methods given
Step 11:After completion, you will receive the Application Reference Number(ARN) on your registered mobile number and email id
Step 12:Now you can access the status of the ARN on the GST portal.
After successful registration, you will get your GST registration certificate and GSTIN after verification of the GST application and other mandatory documents by the GST officer. Be aware that no hard copies of the certificate will be issued and the GST certificate can be downloaded from the GST Portal.
A GST Certificate is a document issued by the Indian government to businesses registered under the Goods and Services Tax (GST) system. It serves as proof of the business's registration under GST and includes details such as the business's GST identification number, name, and address. Businesses are required to have a GST Certificate to be able to charge and collect GST from customers. It is also used for various other purposes such as availing input tax credits, applying for loans and participating in tenders.
As per the Section 122 of the CGST act, in India, there is a direct penalty for all those taxable persons who fail to register for GST online.
Any small business with turnover less than ₹ 20 lakh can voluntarily register for GST even though it is not compulsory by law. Voluntary GST registration has its own advantages and some of them are:
A GST Return Filing is a return document containing details of the taxpayer's income. It has to be filed with the GST administrative authority. The document is used tax authorities to calculate the tax liability of a GST taxpayer. A GST Return Filing form has to include the following details.
For filing a GST Return, you need to have GST compliant sales and purchase invoices attached.
Some of the best reasons to choose us are:
Our legal representatives are available to explain the whole gst registration process and clear any queries you may have.
Although the GST portal has a user-friendly interface, the GST Forms have a lot of complex fields. Hence, it is highly recommended that you seek the help of a professional for submitting the application, the required procedures, filing your returns and completing other formalities in the portal.
The DSC is an instrument issued by certifying authorities (TCS and n-Code are two of them) by which you can sign electronic documents. As all documents needed are electronic, partners need a DSC.
Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased after incorporation at any time to issue additional shares to the shareholders.
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a One Person Company, if you are the sole owner of the company.
Quick Taxperts can integrate a Private Limited Company in 10-14 days. The time taken also depends on the relevant documents provided by the applicant and the speed of approvals from the government. To ensure a speedy registration, kindly pick a unique name as the proposed Company name and also ensure that you have all the required documents prior to the starting of the registration process.
These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
Yes, NRIs, foreign nationals and foreign entities can register a company and invest in India, subject to the Foreign Direct Investment norms set by the RBI. However, incorporation rules in India require for one Indian national to be a part of the company on the Board of Directors.
GST
GST Stands for Good and Service Tax
TRN
Temporary Registration Number - It is a unique 15-digit reference number generated when you have finished filling Part-A of the GST application and have validated your mobile number & email id.
ARN
Application Reference Number - It is the number you get after filing the GST application and you can use it to check your application details.
DSC
Digital Signature Certificate - It is a certificate that acts as proof of the identity of individuals in digital space and protects data.
SGST
State Goods and Services Tax - A part of GST which is levied by the State Government.
CGST
Central Goods and Services Tax (CGST) - A part of GST which is levied by the Central Government.
IGST
Integrated Goods and Services Tax (IGST) - It is a type of GST paid in the case of interstate supply of goods and services.
UGST
Union Territory Goods and Services Tax (UTGST) - A part of GST which is levied by the Union Government.
GSTIN
Goods and Services Tax Identification Number/GST registration number is a unique 15-character identity number given to the businesses that register for GST.
GSTR
GST Return (GSTR) is a document capturing the details of the income, which a taxpayer is supposed to file with the authorities to calculate his tax liability. There is a total of 11 types of GST returns.
GSTN
Goods and Services Tax Network (GSTN) is a non-profit, public-private partnership company that provides IT infrastructure and services for the implementation of GST.
ITC
Input tax credit [ITC] is the credit a taxable person receives for paying input taxes towards inputs used for his business.
HSN Code
HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide. HSN stands for Harmonised System of Nomenclature.
SAC Code
SAC code is a code used to classify services under GST. Each service has a unique SAC code.
Reverse Charge
Reverse charge is when the liability to pay tax is on the recipient of goods instead of the supplier (which is the norm). However, this only applies to special categories of supply.
Aggregate Turnover
Aggregate turnover is the total value of all taxable supplies and it is used to determine the threshold for GST.
Taxable Person
A taxable person is any individual engaged in economic activity in India and who is or is required to be registered under GST.
Mixed Supply
Mixed supply is when two or more individual supplies of goods and/or services made together by a taxable person for a single price (when it does not form a composite supply).
Composite Supply
Composite supply is when a supply consists of two or more goods and/or services, which are naturally bundled and provided together, where one is the principal supply.
Continuous Supply
Continuous supply is when the supply is provided at a specific interval (eg. weekly & monthly) and the payments are made accordingly.
GST Compliance Rating
GST Compliance Rating is a score between [0 -10] assigned to all the taxpayers, that depicts their GST compliance.
Assessment
Assessment is the process to determine the tax liability. There are 6 types of assessment in GST.
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