GST Registration

Here is all that you need to know about GST (Goods and Service Tax)

The previous indirect tax regime was a hindrance in the growth of the domestic manufacturing sector as well as flow of foreign investment to the sector. Introduction of GST was important as it would help alleviate the situation. There would be reduction in cost of manufacturing both from a tax view as well as compliance front. Inspite of being one country, India has more than 30 markets which would be transformed into a single market with GST. Since it will also be applicable on imports, the tax factor working against ‘making in India’ will disappear, further boosting the production and in turn the exports as well.

Introduced on July 1, 2017 and set to revolutionise the way India does its taxes, GST will be levied on value additions at each stage of the production cycle - buying raw materials, processing, manufacturing, warehousing and sale to customers - the monetary worth added at each stage to achieve the final sale to the end customer will be taxed.

What are these taxes included in the GST?

It comprises of two components as you might’ve seen in the bills- a central GST (C-GST) and a state GST (S-GST).

The central government levies taxes such as the Central Excise Duty, Duties of Excise for various departments including medicinal and toilet preparations, goods of special importance, textiles and textile products, Customs Duty-CVD and SAD and service charges.

The state or union territory government meanwhile has its own set of taxes including the Value Added Tax (VAT), Luxury Tax, Entry Tax, Taxes on Entertainment and Amusement, Advertisements, lotteries and gambling, purchase taxes, etc.

GST is the sum of C-GST and S-GST (UT-GST). The value of GST is based at 5%, 12%, 18% and 28% of the billing total- meaning the purchaser pays that much percentage extra as tax, which is divided among the components of the GST.

The amount of tax depends mainly on the essentiality of the purchased good or service- to determine if it is a luxury or not-basic necessities being taxed the least and indulgences the most.

There is an additional component added to the end total of the GST known as the IGST- Integrated GST for imports and transactions occurring between states, added by the centre.

Benefits of GST (Goods and Service Tax)

Removes the Cascading Tax Effect

The cascading effects of taxes occur when there is tax added on tax- especially in multifunctional industries such as restaurants that offer both goods and services. Thanks to the comprehensive GST, the service tax applicable on the input services is not set off against the output VAT- the net tax hence reduced.

There is a higher threshold for registration

This means that industries and businesses that are of a smaller scale- like startups are exempted from paying different taxes depending on their annual turnover- hence as of now the threshold for paying the GST is now 20 lakhs turnover in all states except the North Eastern States where it is 10 lakhs. For those businesses with a turnover between 20-50 lakhs, an optional compensation scheme is available to relieve these upcoming businesses from heavy tax burdens.

GST is digital and thus easy

This means no running around from office to office- everything right from the registration to the payment of the tax can be done online.

Time saving

Earlier different taxes such as the VAT and Service Tax had different compliances as well as returns meaning monthly filing of many separate taxes. With GST, the number of returns are effectively decreased (04 universally applicable to all GST payers)

Taxes defined for e-Commerce

GST clearly states what taxes are applicable for the functioning of the e-Commerce sector all over the country- having cleared out major confusions that occurred earlier due to multiple compliances and clear imbalances.

Marked increase in the efficiency of the Logistics sector

Since now warehouses can be set up throughout the country without fear of additional operating costs attributed to the CST and state entry taxes, which also decreased the overall capacity of the sector. Now it is possible for the warehouses to be set up in more strategic locations such as Nagpur- a zero mile city.

Brings organisation to various industries

An example of this would be the fact that industries like textile and construction popular for their extremely unregulated nature are only given input credits upon the supplier accepting the payment of the GST- thus these industries are forced to be systematic and regular in their work.

Reasonable Late Fees and Interests

There is a standard 18% interest on the amount outstanding between the date of filing and the date of payment. A comprehensive late fee of 200 Rs per day is applicable- none for IGST- with a maximum of Rs 500. For NIL returns, the late fee is now only Rs 20 per day- a solid improvement on the previous Rs.200.

Life made simple

No paper is wasted, since everything is now electronic- payments can be easily done online as well as offline; it is all upto you as the options are plenty including Credit/Debit Cards, NEFT, Cheques and Online Banking.

Necessary documents for GST Registration

PAN Card

PAN Card of owner/ directors/ partners

Address proof

Bill of Electricity/ Telephone, Rent Agreement or Letter of Consent (NOC)

Aadhar card

Aadhaar Card of owners/ directors/ partners

Bank Details

Bank statement/ Cancelled Cheque

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Check out what's in the kit for you

  •   GST Number
  •   GST Certificate
  •   Free Consultancy on GST*
  •   Assistance on Bank Account Opening
  •   Assistance on Accounting Software

RS. 5,999/-
RS. 2,499/- All Inclusive

Get Started

* Mentioned cost is based on GST registration Fees. Fees may vary in case of any modifications.

Question? Call us 8447037100

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FAQ's on GST Registration

Yes, you can apply for GST Registration online. A GSTIN will be generated on acceptance of the application and a temporary password and login will be sent. GSTIN is a unique 15-digit ID.

Yes, GST applies to all service providers, manufacturers and traders. Whether they are LLPs, proprietorships, partnerships or private limited companies. It extends to any dealers, bloggers, writers, agents, aggregators etc.

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