MEANING AND CONCEPT
The Goods and Services Tax (GST) was effective from 1st July 2017. GST was introduced with the concept of “ONE NATION ONE MARKET ONE TAX”. GST was one of the biggest tax reform in the Indian history and it has brought more transparency in the system as the customers will know exactly how much taxes they are being charged and on what base. GST is a COMMON tax levied on goods and services imposed at each point of supply. This will improve the tax structure in India and also will improve the ease of doing business. By abolishing multiple taxes into a single system, tax complexities will be reduced and it will help the small businessman to manage the business efficiently and effectively.
WHY TO REGISTER FOR GST??
- To Claim Input Tax Credit.
- To provide Input Tax Credit to customers
- Make Inter-sate sale without any restrictions.
- A registered business will get some better standing than other non-registered entity.
ELIGIBILITY FOR GST REGISTRATION?
- Individuals or companies registered under previous Excise, VAT, Service Tax, etc.
- Any person having turnover of more than Rs.20 Lakh (Rs.10 Lakh for North Eastern States).
- Person doing business in E-commerce market
- Agent of a supplier & Input Service distributor
- Person who claims Input tax credit
- Person paying tax on reverse tax mechanism
- Nonresident Tax payer
- Online database and software service provider
- Voluntary registration if turnover is less than Rs.20Lakhs
- GST registration process is totally online and no physical submission of documents to the authority is required.
- A normal tax payer can register by visiting the website of GST.
- Email id and phone number of the tax payer is required along with the necessary documents.
- Upload the documents and sign the application digitally.
- Normally it takes 3-4 working days for getting the GST number if there are no queries from the concerned officers.
- GST certificate will be issued by the department once the application is duly filed.
DOCUMENTS REQUIRED FOR GST REGISTRATION
- Identity and Address Proof of applicant
- Pan Card and Aadhaar card of applicant
- Photograph of applicant/Director
- Board Resolution for Authorized signatory in case of companies
- Address proof of place of business
- Business activity of company
- Bank Account Statement/Cancelled cheque
- Digital Signature in case of Director in company.
BENEFITS OF REGISTRATION:
- Legal identity as supplier of goods or services.
- Input Tax credit can be utilized for payment of GST on supply of goods and services
- One stop solution for all Tax compliance
- Online filing of returns and maintaining of electronic data.
- Easy compliance for small businessman under composition scheme.
- Online transfer of credit to other location.
- Eliminating the cascading effect of tax
- Simple and easy online procedure for filing of returns and registration.
- Unorganized sector also covered under GST.
- Increase in transparency and ease of doing business.
- A uniform tax rate for various goods and services all over India.