Starting April 1, 2017, Goods & Services Tax (GST) is applicable to all Indian service providers (including freelancers), traders and manufacturers.
As per the GST Council, entities in the Northeaster and hill states with an annual turnover of Rs.10 lakhs and above would be required to obtain GST registration. For all other entities in rest of India would be required to obtain GST registration, if annual turnover exceeds Rs.20 lakhs.
Entities required to obtain GST registration as per regulations must file for GST registration within 30 days from the date on which the entity became liable for obtaining GST registration. The GST is an all-in-one tax that subsumes a variety of state (VAT, Entertainment Tax, Luxury Tax, Octroi) and central taxes (CST, Service Tax, Excise Duty). GST is to be charged at every step of the supply chain, with complete set-off benefits available. The procedure for GST is completely online and requires no manual intervention. There will also be a composition scheme under GST for businesses with a supply turnover of less than Rs. 50 lakh.
The GST will consolidate Central Excise Duty, Service Tax, VAT, Central Sales Tax, Customs Duty, Central Surcharge & Cess, Octroi, Luxury Tax, Entertainment Tax, Purchase Tax and a few other indirect taxes. The GST will apply on all goods and services. Even petrol and petroleum products will eventually be subject to it.
The GST council has decided on a four-tier structure. The GST rate will depend on the type of goods and services. Currently, the slab rates are 5%, 12%, 18% and 28%. The rate for gold is yet to be decided, and will likely to be the lowest of all.
GST will have a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST). Therefore, centre and state will levy GST on all entities. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre.
Businesses with a supply turnover of over Rs. 20 lakh must register for GST. The key word here is supply, which takes into consideration any turnover, including stock-taking, discounts and freebies. In fact, even those supplying non-taxable goods must register for GST. Business making sales to other states must register for GST, regardless of turnover.
By following these steps you can register by yourself:
Log in to the online GST Portal (www.gst.gov.in).
Fill Part-A of Form GST Registration form 1.
You will receive an application reference number on your mobile and via E-mail.
You will then need to fill the second part of the form and upload the required documents according to the business type.
Finally a certificate of registration is issued to you by the department.
In case of errors and questions, you may need to visit the department.
Produce the documents within 7 working days along with GST REG-04.
The office may also reject your application, if he finds any errors. You will be informed in form GST REG-05 of GST registration regarding the same.
Number of Taxpayers with validated PAN
User activated till date
Percentage of User Activated
|7||Dadra and Nagar Haveli||11/14/2016||4,389||3,031||69.06%|
|8||Daman and Diu||11/14/2016||4,803||3,349||69.73%|
|14||Jammu & Kashmir||12/16/2016||58,208||2,866||4.92%|
|Total for State VAT Users||XXXXXXXX||7,138,332||5,489,111||76.90%|
|35||Taxpayers registered under Central Excise Act but not registered under State VAT||1/7/2017||55,830||14,486||25.95%|
|36||Taxpayers registered under Service Tax Act but not registered under State VAT||1/20/2017||1,156,337||546,580||47.27%|
|Total for CBEC Users||XXXXXXXX||1,212,167||561,066||46.29%|
PAN Card of the proprietor
Address proof of proprietor
PAN Card of LLP
LLP Agreement Partners' names
Certificate of Incorporation
PAN of Company
Articles of Association
Memorandum of Association
Resolution signed by board members
Identity and address proof of directors
What is GST?
Goods and Service Tax is a tax proposed to be levied on supply of goods and services right from the point of manufacturing to final consumption by user. In short it is a destination based tax accruing at the place of sale/supply.
Do I need to get registered under GST law?
A business entity that is currently registered under any of the existing tax regimes then you are compulsorily required to migrate under GST law irrespective of the threshold limits. But if you are supplying goods and services and not registered under any existing tax legislative then you are liable to register only if the aggregate turnover in any financial year exceeds the threshold limit.
What are the threshold limits for registration?
Every supplier of goods and services is required to get registered under GST if his aggregate annual turnover during the financial year exceeds 20 lakhs (for North Eastern States the threshold limit is 10 lakhs).
Who is exempted from registration even if threshold limit is reached?
Suppliers who are engaged in supply of following goods or services listed below:
Exempted Goods (list will be notified by GST Council)
Goods like liquor for personal consumption, petroleum products etc
Importing services for personal use as reverse charge will not be applicable
Is Threshold limit for registration applicable for everyone?
No, the below listed category of suppliers will have to get registration even if they do not exceed the threshold limit:
Casual Taxable Person
Non Resident Person
Business engaged in inter-state supply of goods and services
Those who are required to deduct TDS u/s 46 or collect TCS u/s 56
Input Service Distributor
Electronic commerce operator supplying goods and services directly or acting as intermediary to promote exchange (list of specific goods and services will be prescribed for this purpose)
Person supplying data management services irrespective of whether located in India or not
Thus above person will have to get registered even if their aggregate turnover during a financial year does not exceed the threshold limit
If have business establishments in different states can I apply for a central registration?
No, there is no concept of central registration under GST. Every person will have to obtain a separate registration for every state in which he has a business establishment whether by same name or a different name. Even if person is having same PAN number and has operations in different states every operational unit will have to apply for separate registration.
If I have multiple business units within the same state will I be liable to get separate registrations?
Yes, business units even though registered with the same name and under the same PAN will have to apply for separate registration for each such unit within the same state.
What is composition scheme?
This scheme is introduced for small tax payers to reduce the compliance burden on them. Business registered under composition scheme will be liable to pay tax only to a maximum of 2.5% for manufacturers and 1% for other than manufacturers. They would not be part of credit chain and hence cannot collect any tax from consumers.
Am I eligible for registration under composition scheme?
Only those persons whose annual turnover is below 50 lakhs in preceding financial year and who is supplying goods and services within the same state only are eligible to apply for composition scheme. If supply of goods and services are effected inter-state then this scheme won’t be available for that person.
Can I apply for GST Registration online?
Yes, you can apply for GST Registration online. You can simply register your business on the official GST portal and then scan and upload all the required documents. You will then receive an acknowledgement. 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.
Is the GST threshold limit the same for all Indian states?
he exemption limit is a supply turnover of Rs. 20 lakh for businesses in all but the Indian states in the northeast region. Businesses in Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura must get a GST registration if their supply turnover exceeds Rs. 10 lakh. As mentioned above, this threshold limit applies only to businesses that operate within their home state. A business that conducts trade with another state must seek registration regardless of turnover.
How would the composition scheme work under GST?
The composition scheme would be applicable to businesses with a turnover of up to Rs. 50 lakh. Such taxpayers would pay a fixed percentage of its turnover and cannot avail of the benefits of input tax credit. Such businesses cannot collect tax from its customers. The floor rate of tax cannot be less than 1%.
Does GST apply to all businesses?
Yes, GST applies to all service providers, manufacturers and traders. It extends to any dealers, bloggers, and writers, earnings from Google AdWords through PayPal, import-export businesses, all kinds of startups and companies, whether they are LLPs, proprietorships, partnerships or private limited companies. It also applies, regardless of the threshold limit, to:
Businesses operating outside their home state
A business not registered to the state
Businesses paying a reverse charge
Input service distributor
Aggregators selling services under own brand name (Ola, for example)
Suppliers or agents
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