All You Need to Know About Starting a Company
What is GST Registration?
Goods and Services Tax (GST) is an indirect tax which is applied on the supply of goods and services. It is an all-in-one tax that incorporates a variety of state and central taxes. So, it is comprehensive in nature. It will be applied at every step in the production process. So, it is also multi-stage tax. It will be collected from point of consumption. So, it is also destination-based tax.
VAT, Central Excise Duty, Customs Duty,Service Tax, Central Sales Tax, Entertainment Tax, Central Surcharge & Cess, Luxury Tax, Purchase Tax and a few other indirect taxes are included in GST.There are various slabs in GST decided by GST council. The type of good and services will decide the GST rate for that particular item. Currently, there is a five-tier structure. The following slab rates are considered for now- 0%,5%, 12%, 18% and 28%.
There are two components present in the GST. These are: Central component (Central Goods and Services Tax or CGST) and state component (State Goods and Services Tax or SGST). Therefore, GST on all entities will be levied by central and state governments. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST) and it will be levied by the central government.
Who Needs a GST Registration?
All businesses which have a supply turnover of over Rs. 20 lakhs have to register for GST. For the North East states, the limit amount is Rs.10 lakhs.
All businesses which makes sales to other states have to register for GST irrespective of their turnover.
GST Registration Process
We have laid out the steps in GST registration as below:
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You need to fill up the Part A of the Form GST REG–01 on the GSTN portal by providing the details like email address, PAN card details andmobile phone number.
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Your submitted details will be verified by the GST portal. Your registered mobile number will be verified using the One Time Password (OTP). On successful verification, an application reference number will be generated and sent to you at registered mobile number and email address. You need to acknowledgethe same by filling GST REG-02 form online.
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Now, you are required to fill up the PartB of the GST REG-01 form. You need to provide the application reference number and all required documents for this form.
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GST REG-03 form will be sent to you if any further information is required from you. You need to revert back within 7 working days by submitting the GST REG-04 form with all the required information.
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After successful completion of all the required forms, a GST REG-06 form will be sent to you which will consist the registration certificate. If you have different business verticals within a single state then you need to file different applications for each.
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If your details are found unsatisfactory, your application will be rejected through GST REG-05.
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If you have to collect TCS or deduct TDS, a GST REG – 07 form will be submitted. If the tax is not being deducted /collected at source then its registration may be cancelled.
Documents Required for Online GST Registration
The list of documents required for registration of GSTare as follows:
- PAN Card and address proof of proprietor
- PAN Card of LLP
- LLP Agreement
- Partners’ names and address proof
- Certificate of Incorporation
- PAN Card of Company
- Articles of Association, AOA
- Memorandum of Association, MOA
- Resolution signed by board members
- Identity and address proof of directors
- Passport
- Voter Identity Card
- Aadhar Card
- Ration Card
- Telephone or Electricity Bill
- Driving License
- Bank Account Statement
PROPRIETORSHIP
LLP
PRIVATE LIMITED COMPANY
The following can be shown as proof of address:-
Eligibility for GST Registration
The following taxable group are eligible for GST Registration:
- Persons who are required to pay tax under Reverse Charge.
- Persons who are required to deduct tax at source.
- Non-resident Taxable person (No fixed place in India)
- Casual Taxable person (No fixed place where GST is applicable).
- All E-commerce Operator
- All Agents of a supplier.
- Persons who supply goods or services through E-commerce Operator.
- Input Service Distributor.
- An aggregator who supplies services under his brand name.
- Any Specialized Agency of the UN or any Multilateral Financial Institution.
- Persons making any Inter-State taxable supply (e.g. from Delhi to Maharashtra).
GST Return
A GST Return is a document which is required to be filed in accordance with the tax authorities. According to GST law, a taxpayer needs to submit three returns on monthly basis as well as one return annually. These returns need to be filed online. There are no provisions provided at all for revising the returns. If any of the invoices of previous period is not filed then it should be included in the current month return process.
What is GSTIN?
GSTIN is a unique identification number given to each GST tax payer. To verify a GSTIN number a person who has a GST number can log onto the GST portal.
In GST, each taxpayer is assigned a state wise PAN like 15 digit number. The first two digits of the GSTIN is the state code, for example Delhi has the code 07. This means that every GST tax payer from Delhi will have a GSTIN number that begins with the number 07. The following 10 digits is the PAN card number of the taxpayer. The 13th number is assigned based on number of registrations within a state while the 14th is Z by default. The last digit is the used for check code, so it is always an alphabet.
Features of GST
- TAXES INCLUDED IN GST
VAT, Central Excise Duty, Customs Duty ,Service Tax, Central Sales Tax, Entertainment Tax , Central Surcharge &Cess, Luxury Tax,, Purchase Tax and a few other indirect taxes are included in GST. - GST RATES
There are various slabs in GST decided by GST council. The type of good and services will decide the GST rate for that particular item. Currently, there is a four-tier structure. The following slab rates are considered for now- 5%, 12%, 18% and 28%. - CGST & SGST
There are two components present in the GST. These are: Central component (Central Goods and Services Tax or CGST) and state component (State Goods and Services Tax or SGST). Therefore, GST on all entities will be levied by central and state governments. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST) and it will be levied by the central government. - GST THRESHOLD
All businesses which have a supply turnover of over Rs. 20 lakhshave to register for GST. All businesses which makes sales to other states have to register for GST irrespective of their turnover.
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