GST Registration refers to Goods and Services Tax. It was introduced by the Prime Minister of India in an attempt to regulate prices throughout the country and remove all state or central Govt. imposed indirect taxes on goods and services by initiating GST Registration Online in India.
In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.
For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offense under GST and heavy penalties will apply.
GST registration usually takes between 2-6 working days.
*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.
The State taxes subsumed under GST
These are the few taxes which are implemented by state government VAT, Entry Tax, Central Sales Tax, Entertainment, and Amusement Tax, Luxury Tax, Taxes on advertisements, Taxes on gambling, betting and lotteries related to the supply of commodities and services.
The GST Council broadly approved GST rates for goods at a nil rate,5%,12%,18%, and 28% on certain goods.
- Firm Name
- Business Scope and Activity
- Self-attested PAN card
- Self-attested aadhaar card (Need Aadhaar Verification by OTP)
- Owner Photo.
- Email id and Mobile number
- Address Proof (Electricity Bill and Rent Agreement).
Who Should Register for GST?
- In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.
- Making any kind of goods supply to other states.
- Required to pay tax under Reverse Charge it is needed when your supplier is not registered under GST).
- Agents of a supplier also need GST Registration.
- A Person Who Supplying goods or services through E-commerce Operator.
- E-commerce Operator / Aggregator who supplies goods or services online under his brand name such as Flipkart, Amazon, Ola.
- A Person Who is Supplying online information and database access or retrieval services.
Benefits of GST Registration
- GST registration helps entrepreneurs for starting a new firm and the opening of the current account.
- GST registration helps in operating and managing better accounting of firm and company.
- GST helps businesses to sell and purchase B2B & b2c business.
- It is a very easy process and it takes less time to register as a proprietorship firm.
- GST helps Less tax liability
- GST helps Limited compliances imposed
- GST helps Interstate sales without restriction
- GST helps Inter-state supply without restriction
- GST helps Easy Registration on e-commerce websites
- GST helps Competitive Advantages compared to other businesses
- GST helps Higher threshold limit for registration
- GST helps Facility of Composition Scheme
- GST helps Simple and easy online procedure
- Less number of compliance
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GST is one of the indirect tax for the whole nation, which will make India unified marketplace. GST is a single tax for the supply of goods and services, right from the manufacturer to the consumer. GST is applicable on all goods and service. GST works on four different Slab and its applicable state level and central level. Service provider has to pay GST SGST and CGST.
The benefits of GST can be summarized as follow:
- A good number of products and services are either exempt from tax or charged at 5% or less.
- Small traders will find themselves on one level Up.
- Exemption will simplified for tax structure.
- Products and services will be allowed to move freely across the country.
- Increased competition between manufacturers and businesses will benefit consumers.
Benefit to Economy
- Making of a unified common market.
- Increase in manufacturing processes.
- Enhancement of exports and investments and help to grow economy.
- Opportunity of more jobs using enhanced economic activity.
At the Central level, Few taxes are being included like: Central Excise duty, Service Tax,Customs Duty and Special Additional Duty of Customs.
At the State level, the following taxes are being subsumed:Value Added Tax at state level, Entertainment, Central Sales Tax,Entry tax,Purchase Tax,Luxury tax, and Taxes on lottery and many more.
There will be two components of GST –
- Ø Central GST (CGST)
- Ø State GST (SGST).
GST implementation done on the based of Federal Bank Of India. GST implemented for one common tax. Tax will be levied on every supply of goods and services. Centre would levy and collect CGST, and States government applied SGST and collect the State Goods and Services Tax (SGST) on all transactions within a State. There is mainly four slots for the tax rate mainly 5%,12%,18% and 28%.
The CGST and SGST is applied simultaneously on every transaction, but there is exemption on few goods & services.
There are few major way of payment for GST are as follows:
- Ø Electronic payment process like IMPS,NEFT
- Ø By generating challan or e-challan.
- Ø Payment can be done through various Methods like Credit cards, debit cards etc.
- Ø Use of single challan and single payment instrument
- Ø Common set of authorized banks
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