What is Goods and Services Tax?
Goods and Services Tax (GST) is all-in-one tax introduced by Government of India to incorporate a single tax entity. GST came into effect from 1st July, 2017 to apply tax on all service providers, traders, and manufacturers in India. It helps improving ease of doing business by abolishment of multiple taxes into a single system. GST is a multi-stage tax that is chargeable on every step of supply chain with full set-off benefits available. Penalty for not registering under GST will be 100% of the tax amount or Rs 10,000- whichever is higher.
Documents required for GST Registration
1) Proprietorship - Aadhar card of Owner - PAN card of Owner - Passport Size Photograph of Owner - Bank Account Details - Address Proof of principal place of business
2) Private Limited Company/OPC/Section 8 Company - PAN card of Company - Certificate of incorporation given by Ministry of Corporate Affairs - Memorandum of Association / Articles of Association - PAN card and Aadhar card of authorized signatory. The authorized signatory must be an Indian even in case of foreign companies/branch registration - PAN card and address proof of all directors of the Company - Photograph of all directors and authorized signatory - Board resolution appointing authorized signatory / Any other proof of appointment of authorized signatory - Address proof of principal place of business- Property tax receipt/Electricity bill copy/Ownership deed (in the case of owned property)/Lease / rent agreement (in case of leased / rented property)/ NOC from the owner
3) LLP/ Partnership - PAN card of all partners (including managing partner and authorized signatory) - Copy of partnership deed - Photograph of all partners and authorized signatories - Address proof of partners (Passport, driving license, Voters identity card, Aadhar card etc.) - Aadhar card of authorised signatory - Proof of appointment of authorized signatory - In the case of LLP, registration certificate / Board resolution of LLP - Address proof of principal place of business- Property tax receipt/Electricity bill copy/Ownership deed (in the case of owned property)/Lease / rent agreement (in case of leased / rented property)/ NOC from the owner
Types of GST registration
Compulsory Registration The dealer must take Compulsory Registration under GST irrespective of the turnover under certain situations. For e.g. e-commerce operator, inter-state sales of taxable goods, , e-commerce seller, etc
Voluntary Registration A business that is not required to apply for compulsory registration can apply for registration on a voluntary basis which is called Voluntary Registration.
Composition scheme A composition taxpayer should get enrolled under the GST composition scheme to get registered. Any taxpayer whose turnover exceeds threshold limit of Rs 40 Lacs/Rs 20 Lacs but is less than Rs 1.5 crores can avail this facility. Entities enrolled under this scheme can pay a flat GST rate but they will not be allowed to claim input tax credit.
Mandatory Registration under GST
1) Individuals/ Entities registered under the Pre-GST law like Service tax or VAT or Excise Etc.
2) Entities involved in the supply of goods whose turnover in a financial year exceeds Rs 40 lakhs for Normal Category states (Rs 20 lakhs for Special Category states)
3) Entities involved in the supply of services whose turnover in a financial year exceeds Rs 20 lakhs for Normal Category states (Rs 10 lakhs for Special Category states)
4) Casual Taxable Person & Non-Resident Taxable person ( No fixed place of business, supplies goods & services occasionally)
5) Agents of a supplier & Input service distributor
6) Those paying tax under reverse charge mechanism
7) E-commerce aggregator or operator
8) Person who supplies via E-commerce aggregator
9) Person making inter-state taxable supply of Goods