About GST in India.
Introducing
GST in India is the dynamic step taken to integrate and consolidate all the
Indirect taxes practiced in the country into the Single one. It is introduced
with a view to promote “Ease of doing Business”. It has eliminated the major
defects in the old regime of taxes such as double taxation and cascading
effect, rather it also provides the seamless flow of credit. It is a consumption
based destination tax rather than origin based taxation system. Goods and
services are divided into five different tax slabs for collection of tax - 0%,
5%, 12%, 18% and 28%. However, petroleum products, alcoholic drinks, and
electricity are not subject to tax under GST.
India adopted
a dual GST model, meaning that taxation is administered by both the Union and
state governments. Transactions made within a single state are levied with
Central GST (CGST) by the Central Government and State GST (SGST) by the State
governments. For inter-state transactions and imported goods or services, an
Integrated GST (IGST) is levied by the Central Government. And under this model
the Setting off of the GST Credit available to the business as in the following
order:
|
Credit Available:
|
Order of Setting Off:
|
|
Integrated
Tax
|
1)
Integrated
Tax
2)
Central
Tax
3)
State
or UT Tax
|
|
Central
Tax
|
1)
Central
Tax
|
|
State
or UT Tax
|
1)
State
or UT Tax
|
Registration:
It is
advisable to every business man and every business entity to get itself
registered under GST because it allows you to collect tax from your customers
and freely allow you to set off the Output tax collected with the Input
available, so that the burden of the tax can to be transferred to the end user
of the Goods or Services (Since it is Destination Based Tax). This shifting of this burden allows the business man or entity
to reduce the cost of goods or services the provides. An Unregistered person is
not able to take such benefit because the tax he pays on account of purchases
of goods or services becomes the part of its cost of purchases and not be
allowed to deducted from the output collection of tax.
Compulsory Registration.
The following persons are
compulsory liable to get themselves registered under GST.
Ø Every Supplier shall be
liable to get itself registered in the State or Union territory form which he
makes taxable supply of Goods or Services if
·
In
case of supply of Goods, its aggregate turnover exceeds Rs. 40,00,000/- in such
financial year and Rs. 20,00,000/- in case of Special category states.
·
In
case of supply of Services, its aggregate turnover exceeds Rs. 20,00,000/- in
such financial year and Rs. 10,00,000/- in case of Special category states.
Ø Persons making Inter-State
Taxable Supply.
Ø Casual Taxable Person making
Taxable Supply.
Ø Persons who are required to
Tax under Reverse Charge (RCM).
Ø Non-Resident Taxable person
making Taxable Supply.
Ø Persons
who are required to deduct tax under section 51, whether or not separately
registered under this Act.
Ø Persons
who make taxable supply of goods or services or both on behalf of other taxable
persons whether as an agent or otherwise.
Ø Input
Service Distributor, whether or not separately registered under this Act.
Ø Persons
who supply goods or services or both, other than supplies specified under
sub-section (5) of section 9, through such electronic commerce operator who is
required to collect tax at source under section 52.
Ø Every
electronic commerce operator who is required to collect tax at source under
section 52.
Ø Every
person supplying online information and database access or retrieval services
from a place outside India to a person in India, other than a registered
person.
Ø Such
other person or class of persons as may be notified by the Government on the
recommendations of the Council.
Documents for GST Registration:
Ø PAN card details of Proprietor/Company/Firm/LLP/HUF/Society.
Ø PAN and Aadhar / Voter Card
Details of Proprietor/Directors/Partners/Karta/Trustee, as the case may be.
Ø Passport size photograph of of
Proprietor/Directors/Partners/Karta/Trustee, as the case may be.
Ø Copy of MOA/AOA, Partnership
Deed, Trust Deed as the case may be.
Ø A Copy of Rent agreement
& No Objection Certificate from the landlord of the business place if the
business premises are rented or leased in favor the Company.
Ø Other utility bills such as
telephone, water, gas, or electricity bill as residential proof of
the registered office. It should not be older than 2 months
Additions in our services for GST Registration:
Ø GST Registration Certificate.
Ø All other Consultancies
regarding that.