Goods & Service Tax (GST)
Here is a guide on how you can register under the GST system online and file your returns
GST Registration online - an overview
The Goods and Services Tax (GST), which went into effect on July 1, 2017, affects all producers, traders, and service providers in India, including independent contractors. A number of central taxes, including service tax, excise duty, and CST, as well as state taxes, including entertainment tax, luxury tax, octroi, and VAT, were combined into one tax on July 1, 2017, known as GST. Every stage of the supply chain will be charged GST, with full set-off privileges available. GST registration is done totally online without any manual input.
Along the supply chain, every product goes through a number of steps, including buying the raw materials, manufacturing, selling to the wholesaler, selling to the retailer, and then selling to the customer. It’s interesting to note that GST will be applied to all 3 levels.
Additionally, to avoid tedious GST requirements and pay GST at a set rate of turnover, taxpayers with a turnover of less than Rs. 1.5 crore can choose the composition plan.
Who needs a GST Registration?
Every company or business that buys, sells, or provides goods or services needs to register for GST. Companies must register for a GST if their annual revenue exceeds Rs. 20 lakhs (for the sale of services) and Rs. 40 lakhs (for the supply of commodities).
Every company that exports goods beyond state lines must also register for a GST. The same holds true for companies that produce taxable supply on behalf of other taxable individuals, such as agents and brokers.
In accordance with a recent regulation, e-commerce vendors and aggregators are also exempt from registration provided their combined sales are under Rs. 20 lakh.
What are the GST Tax rates?
Basic requirements are included on the exempt list, which means they are not subject to tax.
- Items that are considered basic necessities come under exempt list i.e they are not taxed
- household necessities and life saving drugs etc. are taxed at 5%
- products like computers and processed food are taxed at 12%
- Hair oil, toothpaste and soaps, capital goods, industrial intermediaries and services are taxed at 18%
- Luxury items are taxed at 28%
Look at the GST calculator, which is useful for figuring out the Goods and Service Tax using various slabs.
Mandatory documents required for online GST registration
- PAN Card and address proof of proprietor
- PAN Card of LLP
- LLP Agreement
- Partner’s name 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
- Digital Signature
The following can be shown as proof of address of a director:-
- Passport
- Voter Identity Card
- Aadhar card
- Telephone or electricity Bill
- Driving License
- Bank Account Statement
Frequently Asked Questions
India’s Goods and Service Tax (GST) is an indirect tax imposed on the administration and distribution of goods. It might be a comprehensive multistage, goal-based assessment, which means that almost all indirect taxes have been included with only a few exceptions. It might also be multi-staged because it is imposed at each stage of the generation prepare but is intended to be discounted to all parties in those stages aside from the final customer.
It is a requirement under the Indian government, which essentially wants to save money on taxes and protect individuals from the cascading effects of taxes.
Yes, every tax payer who is registered under the GST scheme must pay GST.
The upper maximum that must be met in order to comply with GST legislation varies depending on the category:
40 lakhs in the manufacturing sector.
20 lakhs in the service sector
10 lakhs in the North Eastern states
For the purpose of tax collection, goods and services are divided into five different tax slabs: 0%, 5%, 12%, 18%, and 28%.
Wherever products and services are consumed, taxes are imposed that are destination-based or consumption-based. Exports are taxed at zero percent under destination-based taxation, whereas imports are taxed at the same rate as domestic output.
GST late filing penalties are paid at a rate of Rs 200 per day. Such late costs are not assessed under the IGST.
If the GSTR is not filed, a penalty of 10% of the unpaid tax or Rs 10,000 will be assessed, whichever comes first.
If fraud has been committed, the penalty is 100% of the tax owed, or Rs 10,000, whichever comes first.