Concept and Scope of GST

It is levied at all stages right from initial stage up to final consumption with the credit of taxes paid at previous stages available as set off.

Only value addition will be taxed and burden of tax is to be borne by the final consumer.

It is applicable to whole of India including the State of Jammu & Kashmir. It came into force on 1st July, 2017.

In the GST Regime, Major indirect taxes have been subsumed in the one ambit and it is a comprehensive tax structure covering both goods and services.

Concept of destination based tax on consumption

The tax would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply. In other words TAX to be accrued to the state in which supply of goods or service or both are destined/ consumed.

Benefits of GST

GST brings benefits to all the stakeholders industry, Government and the consumer. It will lower the cost of goods and services give a boost to the economy and make the products and services globally competitive. GST is a win- win situation for the entire country.

The significant benefits of GST are discussed hereunder:

No multiple taxes
GST has subsumed majority of existing indirect taxes levies both at Central and State level into one tax i.e., GST which is levied with uniformly in taxation system.

No cascading effect
By subsuming most of the Central and State taxes into a single tax and by allowing a set-off of prior-stage taxes for the transaction across the entire value chain, it would mitigate the ill effects of cascading, improve competitiveness and improve liquidity of the business.

No double taxation
GST makes doing business easier and also tackle the highly disputed issues relating to double taxation of a transaction as both goods and services as for example in case of Services by a Restaurant, works contract service, service provided by job worker etc. but after introduction of GST such kinds of composite supplies shall be treated only as service.

Uniformity in provision
GST aims to make india a common market with common tax rates and procedure and remove the economic barriers thus paving the way for an integrated economy at national level is one nation, one tax, one law, one market.

Buoyancy to the Government Revenue
GST is expected to bring buoyancy to the Government Revenue by widening the tax base and improving the taxpayers compliances by way of pruning number of exemption, by way of threshold limit etc.

Boost to ‘Make in India’ initiative
GST will give a major boost to the ‘Make in India’ initiative of the Government of India by making goods and services produced in India competitive in the national as well as international market.

Taxes that have been subsumed in GST

Central levies to be subsumed State levies to subsumed
Central Excise Duty & Additional Excise Duties State surcharges and cesses in so far as they relate
to supply of goods & services.
Service Tax Entertainment Tax (except those levied by local bodies)
Excise Duty under Medical & Toilet Preparation Act TAX on lottery, betting and gambling
CVD & Special CVD Entry Tax (All Forms) & Purchase Tax
Central Sales Tax VAT / Sales TAX
Surcharges and Cesses in so supply of goods & services Luxury Tax

Five taxes that will continue post GST

The taxes that will continue after GST are:

Import duty

Export Duties

Entertainment Tax

Electricity Duties

Stamp Duties

What is GSTN

GSTN stands for Goods and Services Tax Network (GSTN). A Special Purpose Vehicle called the GSTN has been set up to the needs of GST. The GSTN shall provide a shared IT infrastructure and services to Central and State Government, tax payers and other stakeholders for implementation of GST.

1

Facilitating registration

2

Forwarding the returns to Central & State authorities

3

Computation & settlement of IGST

4

Matching of tax payment details with banking network

5

Providing various MIS reports to the Central & the State Government based on the taxpayers return information

6

Providing analysis of taxpayers profile or compliance rating.

7

Running the matching engine for matching, reversal & reclaim of input tax credit.

Threshold For GST Registration

As per section 22 of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019, a supplier is liable to be registered in the State/Union territory from where he makes a taxable supply of goods and/or services, if his aggregate turnover in a financial year exceeds the threshold limit. The threshold limit for a person making exclusive intra-State taxable supplies of goods is as under-

  • Rs. 10 Lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
  • Rs. 20 Lakh for the States of States of Arunachal Pradesh, Meghalaya, Pondicherry, Sikkim, Telangana and Uttarakhand.
  • Rs. 40 Lakh for rest of India

The threshold limit for a person making exclusive taxable supply of service or supply of both goods and services is an under:-

  • Rs. 10 Lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
  • Rs. 20 Lakh for the rest of world.

As per section 2(6) of the CGST Act, 2017, aggregate turnover include the aggregate value of:

  • all taxable supplies,
  • all exempt supplies,
  • exports of goods and / or services and
  • all inter-state supplies of persons having the same PAN. The above is computed on all India basis.

Documents required for GST Registration

For Proprietor

  • Self Attested PAN card of Owner
  • Self attested Aadhaar No
  • Name of Enterprise
  • Date of Commencement of Business
  • Copy of cancelled cheque
  • Contact Number
  • E-Mail ID
  • Address of organization along with address Proof Eg:- Any utility Bill which shall not be older than 2 Months.
  • Rent agreement is case premises is rented + NOC
  • Description of business Activities Conducted (Whether Export, Service Provider, retailer, whole sale trader, agent etc)
  • Description of any 5 Goods sold or any 5 Services Provided

For Partnership Firm

  • Self attested PAN card of all the partners
  • Self attested Aadhaar Number of all the partners
  • Copy of PAN Card of Partnership Firm
  • Copy of cancelled cheque
  • Contact No
  • E-Mail ID
  • Address of organization along with address Proof Eg:- Any utility Bill which shall not be older than 2 Months.
  • Rent agreement is case premises is rented + NOC
  • Partnership Deed
  • Description of business Activities Conducted (Whether Export, Service Provider, retailer, whole sale trader, agent etc)
  • Description of any 5 Goods sold or any 5 Services Provided.

For LLP

  • Self Attested PAN card of all the Designated Partners
  • Self attested Aadhaar No of all the Designated Partners
  • Copy of PAN Card of LLP
  • Copy of cancelled cheque
  • Contact No
  • E-Mail ID
  • Address of organization along with address Proof Eg:- Any utility Bill which shall not be older than 2 Months.
  • Rent agreement is case premises is rented + NOC
  • Description of business Activities Conducted (Whether Export, Service Provider, retailer, whole sale trader, agent etc)
  • LLP Agreement
  • Certificate of Incorporation of LLP
  • Description of any 5 Goods sold or any 5 Services Provided
  • DSC of any of the Partner

For Corporate Enterprise

  • Self Attested PAN card of all the Directors
  • Self attested Aadhaar No of all the Directors
  • Copy of PAN Card of Company
  • Copy of cancelled cheque
  • Contact No
  • E-Mail ID
  • Address of organization along with address Proof. Eg:- Any utility Bill which shall not be older than 2 Months.
  • Rent agreement is case premises is rented + NOC
  • Description of business Activities Conducted along with MOA and AOA of the Company (Whether Export, Service Provider, retailer, whole sale trader, agent etc)
  • Certificate of Incorporation of Company
  • Description of any 5 Goods sold or any 5 Services Provided
  • DSC of any director

Pricing

Normal

Starting at Rs. 2,499 /- Onwards
  • GST Registration
  • 1 DSC Class 2

Standard

Starting at Rs. 9,999 /- Onwards
  • GST Registration
  • 1 DSC Class 2
  • Annual Accounting and Bookkeeping
  • Annual ITR Filing

Executive

Starting at Rs. 15,999 /- Onwards
  • GST Registration
  • 1 DSC Class 2
  • Annual Accounting and Bookkeeping
  • Annual ITR Filing
  • GST 3B and GSTR -1 Filing

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Frequently Asked Questions

Who needs to register for GST?

A supplier of goods, with an annual turnover of Rs. 40 lakh (Rs. 20 lakhs for special category States), must apply for GST registration. There are certain cases where the taxable person is liable to pay GST even though his turnover has not crossed this limit.

Those providing services must get GST registration, once their turnover crosses Rs.20 lakhs and in case of Special Category States at Rs 10 lakhs.

Is there a time limit to apply for GST online?

A person must apply for GST registration within 30 days from the date on which he becomes liable to registration. The process, rules, and conditions of the GST application must follow the Registration Rules laid by GST Council.

A Casual taxable person and a Non-Resident taxable person must get their GST registration, at least 5 days before the commencement of business.

Validity of GST Registration Number?

GST certificate is granted for the lifetime of the business unless canceled, suspended, revoked or surrendered.

Only those certificates, as issued to the Casual taxable person, and Non-Resident taxable persons have a validity period fixed by the Authorities.

What is a Compliance Rating?

The GST compliance rating is a rating based on performance & compliance. It is given to all registered taxpayers. The taxpayer is rated based on his adherence to the GST provisions. The rating system is devised on a scale of 1 to 10, based on the type of business. Here, 10 is the most compliant and 1 being the least compliant. Your buyer would prefer to work with as seller with the highest rating.

Can a Person not registered with GST collect GST?

No. An unregistered person is not allowed to collect GST.