Goods & Services Tax (GST) was launched on 1 July, 2017; it applies to all Indian Services providers like traders, manufacturers. GST is to be charged at every step of the supply chain, with full set-off benefits available. 

Parts of GST:

Central Goods and Services Tax or CGST

-State Goods and Services Tax or SGST

Integrated Goods and Services Tax or IGST (For Inter-State Transactions), to be levied by the Center i.e. when a transaction happens from one state to other.

GST Registration

Eligibility for GST :

Every Business or corporation which is involved in the buying and selling and good of services has to register for GST Mandatory:

  • Companies whose turnover is more than Rs. 20 lakhs (Rs. 10 lakh for North Eastern and hill states ( for supply of Service)
  • Companies whose turnover is more than Rs. 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,applied same to business making taxable supplies on behalf of the other taxable persons, for ex. Agents and Brokers.
  • E-commerce sellers /aggregators need not to register if total sales are less than Rs. 20 lakhs.

Documents required for GST Registration:

  • For Proprietorship : PAN Card and Address proof of proprietor
  • For LLP: PAN Card of LLP, LLP Agreement, Partners Names and Address proof.
  • For Private Limited Company : Certificate of Incorporation, PAN Card of Company, Articles and Memorandum of Association, Resolution signed by the Directors, Ids(PAN Card) and Address proof(Passport, Aadhar Card or Electricity Bill) of Directors, Digital Signature of

GST Registration Procedure:

  • Access the official GST portal gov.in
  • Click on services ->Registration
  • Under Registration, there will have two drop-down options, Click on New Registration.
  • Under above , one have to fill the required details like mobile no., email id and PAN no. which is mandatory for GST Registration. In case of the Company’s or LLPs, it’s PAN no.
  • Then an OTP will be generated on Mobile no and Email-id for verification.
  • After this a Temporary identification number that will be usd for further registration process.
  • Then Documents will be uploaded based on the business type and other information required to be filed.
  • The officer may take 3 working days to review the application , if approved , certificate will be granted within 7 days of time along with GST identification number. If it is pending , one have to submit further documents to authenticate application, post which the officer will make a decision on the application.

Note: Information that will be required while filling the form online:

  • Business Information(Type of Business Activity)
  • Promoter Information( Credentials like name , address etc)
  • Authorised Signatory Information(Authorised Person on behalf of the Business Entity)
  • Principal Place of Business( Address of Place of Business)
  • Additional Place of Business
  • Details of Goods and Services (Details of the top 5 goods and services supplied by the applicant, for goods supplied provide the HSN code and for services provide SAC code.

GSTIN:

GSTIN is a 15 digit PAN based unique identification number allotted to every registered GST taxpayer. One can login through this no. on GST portal.

GST Registration Certificate:

The GST Registration certificate and GSTIN will be issued upon verification of GST application and other mandatory documents by the GST officer, The Registration Certificate can be downloaded from the GST Portal.

GST Return:

GST Return filing is a return document that contains details of the income of the taxpayer. It has to be filed with the GST administrative authority. The document is used by tax authorities to calculate the tax liability of a GST taxpayer.

GST Return filing form has to include the following details:

  • Output GST(on sales)
  • Sales
  • Input tax credit(GST paid on purchases)
  • Purchases

For filing a GST Return, one needs to have GST complaint sales and purchase invoices attached.

Rates of GST

 https://cbic-gst.gov.in/gst-goods-services-rates.html(For Rates of GST on various goods and services)

Reverse –Charge Mechanism:

It is mandatory for a person undertaking reverse charge transactions to register for GST. Reverse – charge mechanism is a provision where the liability of the tax is on the receiver of goods, and not on the supplier. This is done on specific anf other notified supplies.

Other Criteria’s:

  • Any person who has registered in any of the previous tax Systems like Excise duty, Service tax or VAT must register for GST.
  • In case of a transfer of a business from one person to another, the person to whom the rights are transferred to must register for GST.
  • Agents of a supplier.
  • Any person who supplies via an E-commerce operator.
  • Any person supplying specific information from outside India, to a Non-Registered Indian citizen.

Registration for Multiple Branches:

Note that Separate GST Registration has to be obtained from each state and each branch hen planning to open multiple branches and in case of different verticals in business, separate registration has to be obtained for each vertical.

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Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.

Author- CS Aakansha Negi and can be contacted at csaakanshanegi@gmail.com

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