5 Things To Know About GST Registration

What is goods and service tax (GST)?

GST is an indirect tax, formulated to subsume and unify all the other taxes. GST is paid by consumers and is remitted to the Indian government by organizations and businesses including Private limited company, public limited company, and one person company selling goods and services. GST is introduced in an attempt to reduce the number of taxes.

Some of the taxes that are amalgamated under GST are mentioned below.

1.     Service Tax

2.     VAT (Value Added Tax)

3.     Entertainment Tax

4.     Central excise Tax

5.     Entry & Purchase Tax

6.     Advertisement Taxes

7.     Taxes Applicable On Lotteries

 

What are GST types?

There are different types of taxes under GST which are listed below:

1.     Central Goods and Service Taxes

2.     State Goods and Service Taxes

3.     Integrated Goods and Service Taxes

4.     Union Territory Goods and Service Taxes

 

What is the GST structure?

After GST (goods and services) are taxed with four different tax rates 5 percent, 12 percent, 18 percent and 28 percent. However, the government of India is planning to change this four level tax slab into three or two tax slabs in order to make the taxation process more easy and simple.

GST is still susceptible to violations, conflicts and deviations of interest due to lack of information and knowledge about it. To avoid this, an advanced ruling mechanism on issues of supply of goods and services are released by the government. Every taxpayer can refer to this mechanism for matters like classification, taxability, gst registration in delhi, mumbai, agra, bangalore and so on . 

What is the GST number?

If you are running a business whose turnover is more than Rs 20 lacs per year, then you must register it under GST and get a GST number which is also known as GSTIN. This is a unique 15 digit unique identification number given to every business that is registered under GST.

Remember, there can be several GST numbers under a single PAN. So, you can hold multiple businesses in a state of union territory under one PAN number. But, every unit of your business has a different GSTIN number.

Who can be eligible for a GST registration process?

We have mentioned below the categories of individuals who can register themselves under GST. 

·        Taxpayers from the previous tax system

·        Business owners whose turnover is above RS. 40 lakhs while 10 lakhs for special category.

·        Ecommerce aggregators

·        Taxpayers falling under reverse charge mechanism system

·        Vendors and agents of a supplier

Whose business is liable to pay GST?

Every business owner must know whether his business is liable to pay GST or not. According to the GST act, "Tax will be levied whenever there is a supply of goods and services. It could be a sale, transfer, exchange, lease, etc., of goods or services. If a business is involved in any of them, then GST will replace all the taxes paid by the business owner on buying. However, he or she can exempt some goods and services from GST but depend on the government. 

Why should you prepare for GST?

If your business is already registered under VAT, service tax or even excise duty. Then you must rollover your Registration to GST. Businesses whose turnover is less than Rs 20 lakh don't have to register for it. GST registration is mandatory for those business owners who have a website from where they supply their goods and services. Remember, GST applied to an input Service distributor as well. Here input distributor means a head office that gets billing for Services received at branches and sends apportions to branches later on.

What are the key benefits of GST?

Remember, GST can benefit every individual. Some of the major benefits of it are listed below.

·        It can transform India into a standardized market and make it easier for overseas companies to do business in the country.

·        Better coordination between the state and center as management of several taxes will be avoided.

·        Intra-state business is becoming cheaper. Also, there is a reduced burden of tax on logistics as well as a uniform tax across all states of India will make business' smooth. It has become easier for the Indian government to administer the taxes because most of the indirect taxes have been replaced by GST.

·        Businesses will get relief in tax because of GST that if passed on the end customers can bring down the prices of services and goods. 

How to file a GST return?

Taxpayers like Manufacturers, consumers, and individuals registered under GST have to file their tax return. Filing taxes can be automated and filed online with the help of our Expertbells team.  Steps to file your GST return are mentioned below.

Step 1: First you need to go to the online portal of GST or can also use GST software for filing GST monthly return.

Step 2: 15 digit unique identification number will be provided based on your personal account number.

Step 3: Now, submit the invoice containing all the information about your purchases and sales, and an invoice reference number will be provided against every invoice you upload.

Step 4: Upload all the return (Inward and outward) and consolidated monthly return online.

Step 5: Be sure to file the return outward supply return before the 10th of every month in GSTR-1 form using the information section at GSTN Portal.

GSTR-2 lists every detail on the outward supplies by the supplier to the recipient. The recipient has to verify and adjust the details of outward supplies and file the details of debit and credit notes.

Besides, you as a recipient have to provide the details of your inward supplies of the taxable goods and services in the form of GSTR-2. Supplier has the choice of accepting or rejecting the adjustments of the details of inward supplies made available by the recipient in GSTR-1 A.

Documents Required for GST Registration in India?

Documents required for GST registration online in India are:

·        PAN & TAN and Aadhaar of applicant

·        Identity and address proof

·        Address proof of business

·        Business registration proof

·        Bank account proof

·        Digital signature certificate

·        Letter of authorization

The process of GST Registration in India is both complex and confusing, so it is advised to take help of legal firms like ExpertBells for online GST Registration.

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