What is GST?
GST is one indirect tax for the whole nation, which will make India one unified common Market. GST is on supply of goods and services rather than on production, trading or service rendered. It is destination based tax i.e. it is taxable in state in which goods or services are consumed.
It is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage.
GST Registration and procedure
- Every taxpayer should get registered within 30 days of becoming liable for registration however for casual tax payer and non-resident they must get registered within 5 days to prior to the commencement of business.
- Taxpayers having single PAN have business in different state have to take registration each state, however if any person have vertical business in same state then he may opt for different registration.
- The threshold limit for the taxability is whose turnover exceeds RS. 20 lakhs and RS. 10 Lakhs for north east state.
List of Compulsory registration:
- Persons making any inter-state taxable supply
- Casual taxable persons
- Person who are required to pay tax on reverse charge basis
- Non-resident taxable persons
- Person who required to deduct tax under sec37
- Persons who supply goods or services on behalf of other registered taxable person whether as an agent or otherwise
- Input service distributer
- Person who supply goods or services other than branded services, through electronic commerce operator
- Every electronic commerce operator
- An aggregate who supplies services under his brand name or his trade name
- Such other person or class of persons as may be notified by the central Govt. or a state Govt. on the recommendation of the council.
GST Registration procedure
- Paperless procedure: The whole system of enrollment will be paperless: hence, no hard copies shall be entertained by the department. Further, all the aforesaid registered taxpayers will need to visit the GST system portal.
- Provisional ID and password: Before visiting the GST system portal, you must have the provisional ID and password given to you by your concerned state authorities. Contact your ward officer to complete the online pre-registration under GST.
- Proof of constitution of business
- Photograph of promoters/partners/karta of HUF
- Proof of appointment of authorized signatory
- Photograph of authorized signatory
- Copy of bank statement
- Provisional ID received from state/central authorities
- Password received from the state/central authorities
- Valid E-mail address
- Valid mobile number
- Bank account number
- Bank IFSC