Goods and Services Taxsubsumes all other indirect taxes such as Sales tax, Service tax, Excise duty, VAT etc. into one tax called GST. GST is levied on all goods and services produced in India as well as imported into India. Current GST rate applicable in India vary from 5%,12%,18% to 28% depending upon tariff head under which commodity falls.
GST registration is mandatory for businesses with annual revenue of more than Rs. 20 Lakh( Rs.10 Lakhs in case of North eastern states)
You will not get any tax refunds on purchases (e.g. if you buy goods worth Rs 1 lakh in a year, and tax rate is 28% – you will lose tax refund of Rs. 28,000).
You cannot sell outside your state.
GST Registration @Rs. 999/-
Benefits of Registration under GST
GST Registration will give the following advantages to a taxpayer.
Taxpayer is authorized to collect taxes from his clients and pass on the credit of the taxes paid to them.
Taxpayer can claim Input Tax Credit of taxes paid to his suppliers and can utilize the same for payment of taxes due to him.
Taxpayer can have wider reach for his goods and services.
Taxpayer can service big clients and ecommerce portals for his goods and service.
Documents for Registration
PAN Card of owner/ directors/ partners.
Bill of Electricity/ Telephone, Rent Agreement or Letter of Consent (NOC).
MOA/ AOA or Partnership Deed
Letter of Authorisation for signatory.
Bank statement/ Cancelled Cheque.
Aadhaar Card of owners/ directors/ partners.
Price For GST Registration
Frequently Asked Questions
Central GST: When the vending of services or goods takes place in same state that is when the dealer and the Client both are in the same state, two taxes will be charged. One part is charged by the State Government and the other is by Dominant Government. Hence the tax charged by the central government is recognized as Central GST.
State GST: When the vending of services or goods takes place in same state that is when the dealer and the Client both are in the same state, two taxes will be charged. One part is charged by the State Government and the other is by Dominant Government. Hence the tax charged by the state government is recognized as State GST.
Integrated GST: When the vending of services or goods takes place in two different states, that is when the place of dealer and the client are in different states, Combined GST is charged by the central government. In case of Inter State services and goods only IGST will be chargeable.
GST Registration is not mandatory for following person:-
- Person who is supplying agricultural produce from cultivation.
- Person who is making only exempted supplies (Nil Rated or Non-Taxable supplies) of goods or services.
- Person who is making supplies which are entirely covered under reverse charge.
Yes, a person can register himselfvoluntarily under GST in terms of sub-section (3) of section 25. All the provisions of GST will apply to him as they apply to a registered person.
GST registration can be cancelled only in two cases only:
- When person voluntarily opts for cancellation of GST certificate or
- When the proper officer moves to cancel the GST registration on his own motion. This happens when the person is not doing the business from his declared registered place of business or he issues tax invoice without making the supply of goods or services.
Yes, a person can file for amendment like change of e-mail id, mobile no on GST common portal.
Aggregate turnover means cumulative value of taxable supplies, exempt supplies, export value of good and services.
Every PAN holder will have one GSTIN per State. Therefore, an entity having its branches in more than one state will have to take separate state wise registrations for each of its branches in different states even if they hold a single PAN.
Every tax payer will have a single registration in each state for each PAN. Therefore, it can list only one place as its principal place of business and show all the other branches as additional places of business in that state. However, an entity can obtain separate registrations if in case it has separate business verticals within the state.
Non-resident taxable person is a person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but has no fixed place of business or residence in India.
Composition scheme is introduced for small tax payers for reducing the burden of compliance on them. Following are highlights of composition scheme:-
- Under composition scheme return is filed on a quarterly basis instead of monthly returns.
- Tax is to be paid to a maximum of 2% for manufacturers, 5% for restaurant service sector and 1% for other suppliers.
- Tax payer cannot collect any tax from or issue tax invoice to customers.
- Tax payer cannot avail input tax credit.
Composition scheme is introduced for small tax payers to reduce the compliance burden on them. Following are eligible for registration under composition scheme:-
- Deals only in intra-state supply of goods (or service of only restaurant sector).
- Does not supply goods that are not leviable to tax.
- Has an annual turnover below 75 lakhs in preceding financial year.
- Shall pay tax at normal rates in case he is liable under reverse charge mechanism.
- Not supplying through e-commerce operator.
- Not a manufacturer of – ice cream, pan masala or tobacco (and its substitutes)
Causal taxable person is a person who undertakes supply of goods or services in state where he is not registered whether as principal , agent or in any other capacity
E-way bill is electronic way bill required to transport goods worth more than Rs.50,000 or more.