What is Goods & Services Tax (GST) in India?

Chetan

3 min read

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Sep 26, 2018

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Goods & Service Tax (GST) is an indirect tax imposed in India on the supply of goods and services. GST will be levied at every step while running the business, It will be a procedure where all the parties will be refunded with the tax they pay. The government wants to remove every tax barriers between central & states. Their aim is to create only one tax rather than paying several.

GST Registration is the greatest duty change in India, hugely enhancing the simplicity of working together and expanding the citizen base in India by getting a huge number of private ventures in India. By canceling and subsuming numerous assessments into a solitary framework, impose complexities would be diminished while charge base is expanded considerably. Business taking place without GST registration would not be permitted to gather GST from a client or claim input charge credit of GST paid or could be punished. Further, enlistment under GST is compulsory once a substance crosses the base edge turnover of begins another business that is relied upon to cross the recommended turnover.

Elements in exceptional class states with a yearly turnover of Rs.10 lakhs or more would be required to get registered under GST. Every single other substance in rest of India would be required to enlist for GST if yearly turnover surpasses Rs.20 lakhs rupees.

List of people who are defined to be taxable people under GST

1. A Hindu Undivided Family
2. A Company
3. A Partnership Firm
4. A Limited Liability Partnership
5. An Association of Persons or a Body of Individuals, whether incorporated or not, in India or outside India
6. An Individual
7. Any Corporation Established by or under any Central, State or Provincial Act, or a Government Company
8. Any body corporate incorporated by or under the laws of a country outside India
9. A co-operative society registered under any law relating to cooperative societies
10. A local authority
11. Society as defined under the Societies Act, 1860
12. Government
13. Trusts Artificial judicial person
14. Who are liable for GST registration
15. The turnover of the firm should exceed 20 lakh rupees.
16. Turnover shall include all supplies made by a taxable person, on his own account or on behalf of his principal.
17. The person engaged exclusively in non-taxable supplies or exempt supplies under CGST/ SGST or IGST Law are not liable for GST registration
18. The person making any interstate taxable supply
19. Non — resident taxable person
20. Non- resident taxable person

Benefits of GST registration

GST Filing is a complete assessment that was intended to bring the circuitous tax collection under one roof. All the more essential, it will dispense with the falling impact of duty that was clear before.

Simple and easy procedure.

Prior, in the VAT structure, any business with a turnover of more than Rs 5 lakh (in many states) was obligated to pay VAT. It would be ideal if you take note of that this utmost contrasted state-wise. Likewise, benefit charge was exempted for specialist organizations with a turnover of not as much as Rs 10 lakh.

Under GST, private companies (with a turnover of Rs 20 to 75 lakh) can profit as it gives an alternative to bringing down charges by using the Composition conspire.

Lesser compliance is required

1. Offense under GST
2. Fake invoice.
3. If any applicant submits false information.
4. He transports goods without appropriate documents.
5. If the applicant does not deduct TDS or deducts less amount of it.
6. There is a penalty levied for delay in filing GST
7. There is a penalty for not filing GST
8. Even frauds will have to pay penalty.

Documents required for GST registration

Proprietorship

1. Identity proof (Aadhar Card, Pan Card, Passport)
2. Canceled check/ Bank statement
3. Passport photo
4. Electricity bill

Company

1. Company PAN Card
2. Company document (MOA, AOA, Registration certificate)
3. Copy of Bank Statement
4. Copy of Board resolution
5. Director related documents
6. PAN Card and ID proof of directors registered office documents
7. Electricity bill
8. Digital signature

Partnership / LLP

1. PAN Card
2. Partnership deed
3. Utility bills
4. Bank statement
5. ID proof of Managing/ Authorized/ Designated partners

Procedure to do GST registration

1. Draft the application LegalDocs Portal
2. Get ARN (Application reference number)
3. Registered GST number will be received within 5–7 working days.