How Does GST Registration Work For You?
A business that offers sale of items with annual turnover of 40 lacs or a service with an annual
turn over of 20 lacs will require GST registration and an active GST Number.
GST Registration Online – An Overview
It was introduced on July 1st, 2017 in the year 2017, The Goods & Services Tax (GST) is applicable for every Indian companies that provide services (including freelancers) as well as traders and manufacturers. There are a variety of Central taxes such as Service Tax, Excise Duty CST, and other state taxes such as entertainment Tax, Luxury Tax, Octroi and VAT are combined into one tax – GST that was introduced on 01.07.2017. GST will be paid at each step in the chain of supply with all set-off benefits being accessible. The process for GST is completely online and doesn’t require manual intervention.
Each product has various stages of the supply chain. This includes the purchase for raw material, the manufacturing and sale to wholesalers and then selling to retailers and finally selling to the customer. Incredibly, GST will be charged at each of these three stages. For instance, if a particular product is made within West Bengal but is being consumed in Uttar Pradesh, the entire profits will go into Uttar Pradesh.
Additionally, taxpayers who have under Rs.1.5 crore may choose a composition schemes to skip lengthy GST formalities in exchange for paying GST at a predetermined amount per transaction.
What Are the Components of GST?
GST will be composed of 3 tax components. The central component, known as Central Goods and Services Tax (CGST), and the state component, known as State Goods and Services Tax (SGST), will determine whether GST will be imposed on all entities. When a transaction occurs within a state. Interstate transactions are subject to the Integrated Goods and Services Tax, which will be levied at the Centre. When a transaction occurs in more than one state.
What Is the Input Tax Credit?
You can reduce the tax you have paid on inputs, and then pay the rest at tax time.
When a product purchased from a registered seller is purchased, taxes are charged to the purchaser. You also pay the tax when the product is sold. You can use input credit to adjust the taxes you paid at the time of purchase by the amount of tax on sales (output tax) and then pay the remaining tax liability. Tax on sale less tax on purchase.
Who Needs a GST Registration Service?
All businesses and corporations that deal in the selling, buying, and providing of services must register online for GST. Companies whose turnover exceeds Rs.20 lakhs for supply of services and Rs.40 lakhs for supply of goods must register online. To register for GST, you must have a turnover of more than Rs.20 lakhs (for supply of services) and Rs.40 lakhs (for supply goods).
Businesses that make interstate deliveries of goods must also register for GST. Businesses that make taxable supplies for other taxable persons (e.g. Agents and Brokers) are subject to the same rules.
A recent notification also states that e-commerce sellers/aggregators are not required to register if their total sales exceed Rs.20 lakhs.
What Are the GST Tax Rates?
- The things that are classified as essentials are included in the exemption list, i.e. they aren’t taxed.
- Life-saving medicine and household essentials like. will be taxed at 5 percent.
- Computers as well as other food items that are processed get taxed at 12.5 percent.
- Shampoo soaps, toothpastes, and toothpastes Capital products, industrial intermediaries along with other products are taxed as 18 percent..
- Tax rate on luxury items is 28 percent.
You can see the tax rates for all the products here: https://cbec-gst.gov.in/gst-goods-services-rates.html
What is a GST Return?
A GST return is a type of document with information about income which must be filed in accordance with the law and submitted to tax authorities. In accordance with GST law, under GST law, taxpayers is required to file two tax return on a monthly basis and one annual return. All returns must be submitted online. It is important to note that there isn’t a provision to amend the returns. All invoices from the previous tax period that was not reported are to be reported during the current month.
A registered dealer must prepare GST returns that contain sales, purchases Output GST (On sales) and tax credit for input (GST charged when purchasing).
What is GSTIN?
GSTIN is an unique identification number issued to every GST taxpayer. To confirm the authenticity of a GSTIN number, a person who is GST number GST number is able to log into GST portal. GST portal.
What is the GSTN (Goods and Service Tax Network)?
GSTN stands for the Goods and Service Tax Network (or GSTN) is section 8 (non-profit) private limited, non-government company. GSTN provides a single-stop solution for all of your indirect tax needs. GSTN is accountable for the maintenance of an Indirect Taxation platform for GST to assist you with the preparation return, file, and rectify tax returns and pay your tax obligations arising from indirect tax.
Mandatory Online GST Documents
The list of documents needed to register GST for different businesses is as the following:
- PAN Card and proof of address of the owner
- PAN Card of LLP
- LLP Agreement
- Partners Names and addresses evidence
Private Limited Company
- Certificate of Incorporation
- PAN Card of Company
- Articles of Association, AOA
- Memorandum of Association, MOA
- Resolution adopted by board members
- Address and identity proof of directors
- Digital Signature
The Following Can Be Shown as Proof of Address of a Director
- Voter Identity Card
- Aadhar Card
- Ration Card
- Telephone or Electricity Bill
- Driving License
- Bank Account Statement
Include what is considered to be an identity proof, you could make use of the PAN card, Aadhar Card as proof of identity. As proof of address any director could show the ID of their voter or passport, as well as a electric bill, telephone bill, and phone bill.
Preparation of GST Application
A member of one our GST representatives will take all the documents required for GST registration and submit the GST application using our iCFO platform.
Once all the required documents are taken into consideration After that, the application will be completed and completed. Following that, an ARN number will be issued.
A GST registration certificate as well as the GSTIN are issued after confirmation of the GST application as well as other required document from GST officers. GST officer. It is important to note that no hard duplicates of this certificate are issued. the GST certificate is accessible for download via GST Portal. GST Portal.
Penalties For Failure To GST Registration
In accordance with Section 122 of the CGST law in India it is mandatory to pay a fine for any tax-paying person who do not register with GST online.
Voluntary Registration Under GST
For Companies With A Turnover Below Rs.20 Lakhs
Any small-scale business that has a turnover less than 20 million can sign up voluntarily for GST even though it’s not required by law. Registration for GST on a voluntary basis has many advantages, as well. Some of these include:
- Credit for input: In GST, there is an inflow of credit for input beginning with the manufacture of products to the end users, all over the world. Input credit refers to a tax payer who in the process of paying tax on the output of their business can deduct tax already paid on inputs and pay the remainder. Companies that are registered for voluntary registration can improve the margins and profits they earn through this.
- Do interstate sales without limitations: SMEs can increase the reach of their business as well as find potential customers and discover online platforms
- Register on e-commerce sites: SMEs can widen their reach by registering on websites for e-commerce.
- You have a competitive advantage with other companies.
GST Return Filing
An GST Return Filing can be described as a form of return which contains the tax payer’s earnings. It must be submitted to GST authorities. GST administration authority. This document is used by tax authorities to determine the tax obligation of GST taxpayers. The GST Return Filing Form has to be filled out with the following information.
- Output GST (On sales)
- Tax credit for input (GST applied to purchases)
To file the GST Tax Return, you must to provide GST conforming sales and purchase invoices with.