GST IN INDIA – AN INTRO
GST – The biggest tax reform in the history of India completely transformed the system of taxation in India. “GST” which stands for Goods and Services Tax is a unified indirect tax which replaced a dozen of indirect taxes levied by the central and state govt. Online GST Registration India portal provides the GST registration services in India.
It took 17 long years for GST to become a reality in India. It was first proposed by then Finance Minister Vishwanath Pratap Singh in the budget for 1986-87 as the major refurbishment of the excise taxation structure. Then Prime Minister Atal Bihari Vajpayee introduced the notion in 2000 and set up a committee headed by the then West Bengal Finance Minister Asim Dasgupta to design a GST model. Since then the bill faced a lot of ordeals and finally on August 3, 2016, the Rajya Sabha passed the 122nd Constitution Amendment Bill by a two-thirds majority. On September 2, 2016, 16 states ratified GST Bill and the President gave his assent to the Bill. Finally, on 1 July 2017 the Goods and Services Tax commenced In India.
Fundamentally, it is a comprehensive indirect tax which has to replace many indirect taxes in India. The main objective of GST is to cover most of the indirect tax levies into a single tax. It also aims to overcome the limitations of multiple indirect taxes and create efficiency in the tax administration. Online GST Registration India portal is the way through which one needs to register with the GST India.
GST is charged at every stage of the production-distribution chain with applicable set-offs in respect of tax paid at previous stages. Therefore, it is a tax on concluding consumption of goods and services.
Unlike many countries, India has a dual GST system. Under this model, the tax is levied simultaneously by the Centre as well as the States on a common base, i.e. supply of goods or services or both. Both the system requires to comply with online GST registration India procedures. It has a central component (CGST) and a state component (SGST). There is also an Integrated GST, which is the component of GST that is levied by the central government in case of inter-state trade.
The supreme body which governs GST is called GST Council and it has a total of 33 members. It is chaired by the Union Finance Minister. It is responsible for any revision or enactment of rule or any rate changes of the goods and services in India.
Goods and Services Tax Network (GSTN) has been set up by the Government as a private company, which provides three services to the taxpayers through Online GST registration India portal, namely registration, payment and return.
The GST council has decided on a five-tier structure. The GST rate will depend on the type of goods and services. Currently, the slab rates are 0%, 5%, 12%, 18% and 28%.
Direct Tax and Indirect Tax
To understand GST, first, we need to understand the difference between direct and indirect taxes. In simple words, direct taxes are taxes that are directly paid to the government by the taxpayer. It is a tax applied to individuals and organizations directly by the government. Taxes which are paid under Direct Tax include Income Tax, Capital Gains Tax, Securities Transaction Tax, Corporate Income Tax, Marginal Tax, Rate Tax on Agricultural etc. Direct taxes do not come within the ambit of online GST registration India services.
Indirect Taxes are whose taxes which are applied to the manufacture or sale of goods and services. These are initially paid to the government by an intermediary, who then adds the amount of the tax paid to the value of the goods/services and passes on the total amount to the end user. Online GST registration India
The prime difference between a direct tax and indirect tax is the ability of the taxpayer to shift the burden of tax to others. Direct taxes include taxes such as income tax, corporate tax, wealth tax, gift tax, expenditure tax etc. While indirect tax includes taxes like sales tax, excise duty, GST, customs duty etc.
Online GST Registration India
To come under the purview of GST, you have to register under the Goods and Services Act.
It is mandatory for businesses engaged in supplying of goods or services with an annual aggregate sales turnover of more than Rs.20 lakhs in most States to register for GST. However, in special category states (all northeastern states and Jammu and Kashmir), the aggregate turnover criterion has been decreased to Rs.10 lakhs.
But as decided in the 32nd GST council meeting, new threshold limits have been introduced for exemption from registration for the supplier of goods i.e. under 40 lakhs and 20 lakhs. It means businesses in most states with an annual turnover of above 20 or 40 lakhs have to register under the Goods and Services Act. Though, it is in the discretion of States to choose the limit within a week the limit as per their requirement for online GST Registration India.
Online GST Registration India is also compulsory for entities undertaking inter-state supply of goods and/or services, in spite of the fact of aggregate annual turnover.
Enterprises engaged in the supply of goods or services through e-commerce sites are compulsorily required to be registered under GST, in spite of the fact of aggregate annual turnover.
All enterprises having service tax or VAT or central excise registration should register under GST Registration in India mandatorily as well.
Types of GST India
As India has a Dual GST system. There are 4 types of taxes applicable in the online GST registration India system; namely CGST (central GST), SGST (State GST), UTGST (Union Territories GST) & IGST (Integrated GST).
- CGST: – It is collected by the Central Government on an intra-state sale of goods and services (Eg: for transaction happening within Uttar Pradesh).
- SGST: – It is collected by the State Government on an intra-state sale of goods and services (Eg: for transaction happening within Uttar Pradesh).
- UTGST: – It is the GST applicable on the goods and services sale that takes place in any of the five union territories of India, including Andaman and Nicobar Islands, Dadra and Nagar Haveli, Chandigarh, Lakshadweep and Daman and Diu.
- IGST: – It is collected by the Central Government for the interstate sale of goods and services. (Eg: for the transaction from Jharkhand to Odisha).
India follows the system of Dual GST as it is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes. Both Governments have distinct responsibilities to perform as per the Constitution, for which they need to raise tax revenue. The Centre and States are simultaneously levying GST from traders or businessmen who has completed online GST registration India.
GST Rate Slabs
The government as per the recommendation of GST Council follows a 5-tier tax structure for all goods and services under the slabs- 0%, 5%, 12%, 18%, and 28%.
However, Goods like Hulled cereal grains like barley, wheat, oat, rye, etc., Bones and horn-cores unworked and waste of these products, Palmyra jaggery, all types of salt, Sanitary Napkins etc. have been exempted from the purview of GST.
The government has also exempted healthcare and educational services from the purview of the online GST Registration India. Hence, they are not liable to pay taxes under GST India.
Chargeable services offered on Basic Savings Bank Deposit (BSBD) account opened under the PMJDY (Pradhan Mantri Jan Dhan Yojana) are also exempted from the purview of GST India.
Hence, the Goods and Services Tax council has passed the rate slabs at Nil, 5%, 12%, 18%, 28%.
The 31st GST Council meeting was held 22nd December 2018 which has revised GST rates of few goods and services, which has been listed below: –
|S. No.||List of Goods||Change in GST Rates|
|1.||Pulleys, transmission shafts, and cranks, gearboxes etc., falling under HS Code 8483||28% to 18%|
|Monitors and TVs of up to screen size of 32 inches|
|Re-treaded or used pneumatic tires of rubber|
|Power banks of lithium-ion batteries. Lithium-ion batteries are already at 18%. This will bring parity in GST rate of power bank and lithium ion battery.|
|Digital cameras and video camera recorders|
|Video game consoles and other games and sports requisites falling under HS code 9504|
|2.||Parts and accessories for the carriages for disabled persons||28% to 5%|
|3.||Cork roughly squared or debugged||18% to 12%|
|Articles of natural cork|
|4.||Marble rubble||18% to 5%|
|5.||Natural Cork||12% to 5%|
|Fly ash Blocks|
|6.||Music Books||12% to Nil|
|7.||Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container.||5% to Nil|
|Vegetable provisionally preserved (for example by sulfur dioxide gas, in brine, in sulfur water or in other preservative solutions), but unsuitable in that state for immediate consumption.|
Some of the goods and services which require online GST registration India but are exempted from the purview of GST India are: –
- Supply of gold by Nominated Agencies to exporters of an article of gold Jewellery.
- Proceeds received by Government from the auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which are used for the public or charitable cause.
- IGST/Compensation cess on vehicles imported for temporary purposes under the Customs Convention on the Temporary Importation of Private Road Vehicles.
Other Miscellaneous Reforms which were discussed in the 31st GST council meeting is: –
- The GST rates of 5%/18% to be applied based on the transaction value of footwear.
- Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value).
- GST rates of 5% rate has been prescribed on renewable energy devices & parts for their manufacture (biogas plant/solar power-based devices, solar power generating system (SGPS) etc.
Process of Online GST Registration India
The process of online GST registration in India is pretty simple and is analogous to what is done for service tax registration.
- Open the GST registration portal (www gst gov in) and do GST login and fill in the details/particulars asked in the GST application form.
- Upload the original scanned copies of all documents specified. The GST application form needs to be printed and sent to the GST registration in India department for confirmation.
- When you submit the GST application form after filling in all the essential details, an acknowledgement number will be generated, and the same will be communicated through email and SMS.
- After verification of the documents, the GST application in India will be reviewed and accepted.
- A GSTIN will be generated on acceptance of the GST application in India and a temporary password and Login ID will be sent. GSTIN is a unique 15-digit ID.
- GSTIN will be one unique identification for your business.
Reasons for Online GST Registration India: –
- E-Way Bill System: – The introduction of the e-way bill as one of the services offered by online GST registration India, is an immense alteration from the earlier “Departmental Policing Model” to a “Self-Declaration Model”. It envisions one e-way bill for movement of the goods throughout the country, thereby ensuring a hassle-free movement for transporters throughout the country.The e-way bill system has been introduced nationwide for all inter-State movement of goods with effect from 1st April 2018. As regards to intrastate supplies, the option was given to States to choose any date on or before 3rd June 2018. All States have notified e-way bill rules for intra-State supplies.
- Modes of Payment: – Various modes of payment of tax available to the taxpayer including internet banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS).
- Refunds: – Refund of tax to be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date. Refund of unutilized ITC also available in zero-rated supplies and inverted tax structure.
- Anti-Profiteering Mechanism: – Implementation of GST in many countries was coupled with increase in inflation and the prices of the commodities. This happened in spite of the availability of the tax credit. National Anti-profiteering Authority (NAPA) has been constituted under GST India by the Central Government to examine the complaints of non-passing the benefit of reduced tax incidence. The Authority shall cease to exist after the expiry of two years from the date on which the Chairman enters upon his office unless the Council recommends otherwise.
- Composition Scheme: – An optional composition scheme (i.e. to pay tax at a flat rate on turnover without credits) is available to small taxpayers (including to manufacturers other than specified category of manufacturers and service 34 | 49 providers) who has done online GST registration India, having an annual turnover of up to Rs. 1 Cr (Rs. 75 lakhs for special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution). This limit has been raised to Rs. 1.5 Cr after necessary amendments in the GST Acts. The amendment shall be effective from a date to be notified in the future.
- Zero-rated Supplies: – Export of goods and services are zero-rated. Supplies to SEZs developers and SEZ units are also zero-rated. The benefit of zero rating can be taken either with payment of integrated tax or without payment of integrated tax under bond or Letter of Undertaking.
- Tax Collection at Source: – Obligation on electronic commerce operators to collect ‘tax at source’, at such rate not exceeding two percent of the net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. The provision for TCS has not been operationalized w.e.f. 01st October 2018.
- Self-assessment: – Self-assessment of the taxes payable by the registered person shall be the norm. Audit of registered persons shall be conducted on a selective basis. Limitation period for raising demand is three (3) years from the due date of filing of an annual return or from the date of erroneous refund for raising demand for short payment or non-payment of tax or erroneous refund and its adjudication in normal cases. Limitation period for raising demand is five (5) years from the due date of filing of an annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful misstatement.
- Recovery of Arrears: – Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person.
- Appellate Tribunal: – Goods and Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act.
- Advance Ruling Authority: – Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under the CGST Act.
- Transitional Provisions: – Elaborate transitional provisions have been provided for a smooth transition of existing taxpayers to the GST regime.
- Subsuming of taxes, duties etc: – Among the taxes and duties levied and collected by the Union many were subsumed. As far as taxes levied and collected by States are concerned, they are also subsumed by GST India.
Benefits of Online GST Registration India
- Benefits to the exporters under online GST registration India : –
- The integration of major Central and State taxes in online GST registration India, comprehensive setoff of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will upsurge the competitiveness of Indian goods and services in the international market and give a boost to Indian exports.
- The uniformity in tax rates and procedures across the country will go a long way in reducing the compliance cost.
- Benefits to small traders and entrepreneurs:
- GST has increased the threshold for online GST registration India for small businesses.
- Unlike multiple registrations under different tax regimes earlier, a single GST registration is needed under GST India in one State. If the business is spread over multiple states, then a separate online GST registration India is required for businesses in each state.
- Benefits to agriculture and Industry under online GST registration India:
- GST registration in India will give more relief to industry, trade, and agriculture through more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST India and phasing out of CST.
- The transparent and complete chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of the tax burden on an average dealer in industry, trade, and agriculture.
- Benefits for common consumers:
- With the introduction of online GST registration India, the cascading effects of CENVAT, State VAT, and service tax will be more comprehensively removed with a continuous chain of set-off from the producer’s point to the retailer’s point than what was possible under the prevailing CENVAT and VAT regime.
- Certain major Central and State taxes will also be subsumed in GST and CST will be phased out.
- Other things remaining the same, the burden of tax on goods would, in general, fall under the regime of online GST registration India and that would benefit the consumers.
- Ease of Doing Business:
- Online GST registration India has simplified the indirect tax regime with fewer exemptions along with a reduction in a multiplicity of taxes that are at present governing our indirect tax system will lead to simplification and uniformity.
- Reduction in compliance costs as multiple record-keeping for a variety of taxes will not be needed, therefore, lesser investment of resources and manpower in maintaining records. It will result in simplified and automated procedures for various processes such as registration, returns, refunds, tax payments.
- All interaction shall be through the common GSTN portal, therefore, the less public interface between the taxpayer and the tax administration. It will improve the environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions.
- Common procedures for registration of taxpayers, refund of taxes, uniform formats of the tax return, common tax base, a common system of classification of goods and services will lend greater certainty to the taxation system.
Documents required for online GST Registration India
- PAN Card Number of the business for GST Registration in india – As GSTIN is linked with the PAN of the business. Hence, PAN is vital to obtain GST certificate.
- Identity proof and Address Proof of Promoters – Which comprises of PAN, passport, driving license, Aadhaar card or voter’s identity card should be submitted for all the promoters.
- Business Registration Document for online GST Registration India – Proof of business incorporation like incorporation certificate or partnership deed or registration certificate shall be submitted for all types of registered entities.
- Address Proof of Place of Business – Documents such as rental agreement or sale deed in addition to copies of electricity bill or latest property tax receipt or municipal khata copy shall be duly submitted for the address mentioned in the GST application.
- Bank Account Proof for online GST Registration India – Scanned copy of the very first page of bank passbook depicting a few transaction and address of the business must be submitted for the bank account specified in the GST application form.
- Digital Signature for Online GST Registration India – Class 2 or class 3 digital signatures is needed for the authorized signatory to sign and submit the GST application form. Most importantly, in the situation of proprietorship, there is no need for a digital signature.
The Advantage of a GST Registration Certificate in India
- As it provides a common and shared IT infrastructure and services to the Central and State Governments, Tax Payers and other stakeholders for the implementation of the Goods & Services Tax (GST) it will make the work more transparent.
- It is an extremely helpful system as it carries out research, study best practices and provides training and consultancy to the Tax authorities and other stakeholders.
- It provides common online GST Registration India, Return and Payment services to the all the Taxpayers having GST certificate.
- It creates an efficient and user-friendly GST Eco-system.
- It encourages and has collaborated with GST Suvidha Providers (GSPs) to roll out GST Applications for providing simplified services to the stakeholders involved in this system.
- It has developed the Taxpayer Profiling Utility (TPU) for Central and State Tax Administration to implement and execute smoothly.
- It also assists Tax authorities in improving Tax compliance and transparency of Tax Administration system.
- It provides effective Backend Services to the Tax Departments of the Central and State Governments on request.
- It delivers any other services of relevance to the stakeholders involved on request.
FAQ’s about Online GST Registration in India
Name of the Government website is www gst gov in / gst gov in, we are not a government website but we also offer Consultation services for Online GST Registration in India.
PAN of your business should be put if its a company. In the case of the proprietor, provide your personal PAN at the time of GST registration in India.
There is No government Fees involved in making Online GST Registration in India but the professional fees of our GST Consultants for helping you in obtaining GST Registration Number in India is Rs. 1,500 onwards.
TRN or Temporary Reference Number is a unique 15-digit reference number that is generated when you successfully submit all the fields of PART A (first page) of the new registration application and successfully validate your mobile number and e-mail ID by correctly entering the respective OTPs. Your TRN is sent to you via SMS and email. It is valid for 15 days from the date of creation. After TRN is generated, note it down and access PART B of your new online GST registration India application on the GST website in the pre-login mode by entering the TRN.
GST Registration number is a unique 15-digit identification that is provided to each and every taxpayer based on PAN and State of the applicant. It is also known as GSTIN.
You cannot submit your New online GST Registration India Application without selecting a Primary Authorised Signatory.
You are required to provide a minimum of just one good or service (one HSN or Service Classification Code code).
Yes, you need to add at least one bank account.
You can add up to a maximum of 10 bank accounts.
Your GST application form cannot be rejected after the first assessment as the principle of natural justice mandates that you get an opportunity to be heard, hence, the Tax Official may only raise a Notice Seeking Clarification to provide you with the said opportunity. If your response is satisfactory, your application will be approved. If you provide an unsatisfactory response or fail to respond, your application will be rejected. You have seven (7) working days within which to respond to the Notice Seeking Clarification.
Therefore, we can say that GST India has completely reformed the old taxation system of India and has open a lot of door of opportunity for businesses especially modern ventures like start-ups, e-commerce etc.
If you want to get your company’s Online GST registration India then visit GST registration portal is the one-stop solution for you. Get your GST Certificate without stepping out of your house. For more detail visit online GST registration India website or GST website.