GST Services
GST Registration
In order to comply with the GST law and collect, pay, and claim input tax credit on the supply of goods and services, enterprises in many countries, including India, must register themselves with the tax authorities. The central and state governments impose several indirect taxes, which the GST system seeks to replace in order to simplify the taxation process.
A value-added tax known as the goods and services tax (GST) is applied to the majority of goods and services that are sold for domestic use. Although customers pay the GST, the companies that sell the goods and services are the ones who send it to the government.
Benefits of the GST
The cascading effect on the sale of goods and services has mostly been eliminated by GST. The cost of items has been altered by the removal of the cascading effect. The GST regime lowers the cost of goods by doing away with the tax on tax.
Additionally, technology plays a major role in GST. The GST portal expedites the process by requiring all necessary online registration, return filing, refund applications, and notice response actions.
GST Components
This system applies the following three taxes: CGST, SGST, and IGST.
- CGST: The tax that the Central Government collects on sales that take place within the same state, such as those that take place in Maharashtra.
- SGST: This is the tax that the state government collects when a transaction occurs inside its borders, such as a sale within Maharashtra.
- IGST: This is a tax that the Central Government collects when a sale occurs between states, such as from Maharashtra to Tamil Nadu.
| Transaction | New Regime | Old Regime | Revenue Distribution |
|---|---|---|---|
| Sale within the State | CGST + SGST | VAT + Central Excise/Service tax | Revenue will be shared equally between the Centre and the State |
| Sale to another State | IGST | Central Sales Tax + Excise/Service Tax | There will only be one type of tax (central) in case of inter-state sales. The Centre will then share the IGST revenue based on the destination of goods. |
Illustration
Assume for the moment that a dealer in Punjab received products worth Rs. 50,000 from a dealer in Gujarat. The 18% tax rate only includes IGST.
In this instance, the merchant must impose a 9,000 rupee IGST charge. The Central Government will receive this revenue.
In Gujarat, a customer purchases items from the same merchant valued at Rs. 50,000. With 6% CGST and 6% SGST, the total GST rate on goods is 12%.
Since the sale took place within the state, the dealer is required to collect Rs. 6,000 in Goods and Services Tax, of which Rs. 3,000 will go to the Central Government and another Rs. 3,000 to the Gujarat Government.
The following documents are n
eeded for GST registration
- Name of Business
- Nature of Business
- PAN card
- Aadhaar card
- Photograph
- Bank statement or cancelled cheque
- Office address proof
Partnership Firm
- Name of Business
- Nature of Business
- PAN card of Firm
- Partnership Deed
- Authorization Letter for Appointment of Authorized Signatory
- Pan Card of All Partners
- Aadhaar card of All Partners
- Photograph of All Partners
- Bank statement or a cancelled cheque
- Office address proof
Owned Premises – Copy of latest electricity bill/ Property tax paid receipt/ copy of municipal
Rented Premises – Valid Rent Agreement and NOC (No objection certificate) from the owner copy of latest electricity bill
Pvt. Ltd. / One Person Company / LLP
- Name of Business
- Nature of Business
- PAN card of Company
- Certificate of Incorporation
- MOA and AOA of Company / LLP Deed
- Authorization Letter ( Board Resolution ) for Appointment of Authorized Signatory
- Pan Card of All Directors
- Aadhaar card of All Directors
- Photograph of All Directors
- Digital Signature of Authorized Signatory
- Bank statement or a cancelled cheque
- Office address proof :
Owned Premises – Copy of latest electricity bill/ Property tax paid receipt/ copy of municipal
Rented Premises – Valid Rent Agreement and NOC (No objection certificate) from the owner copy of latest electricity bill
SOCIETY OR CLUB OR TRUST
- Name of Business
- Nature of Business
- PAN card of Society / Club / Trust
- Registration Certificate of Society / Club / Trust
- Authorization Letter for Appointment of Authorized Signatory
- Pan Card of All Members / Trustee
- Aadhaar card of All Members / Trustee
- Photograph of All Members / Trustee
- Bank statement or a cancelled cheque
- Office address proof
Owned Premises – Copy of latest electricity bill/ Property tax paid receipt/ copy of municipal
Rented Premises – Valid Rent Agreement and NOC (No objection certificate) from the ownercopy of latest electricity bill
HUF
- Name of Business
- Nature of Business
- PAN card of HUF
- HUF Deed
- Pan Card of Karta
- Aadhaar card of Karta
- Photograph of Karta
- Bank statement or a cancelled cheque
- Office address proof
Owned Premises – Copy of latest electricity bill/ Property tax paid receipt/ copy of municipal
Rented Premises – Valid Rent Agreement and NOC (No objection certificate) from the owner copy of latest electricity bill
MULTIPLE GST REGISTRATIONS
On a single PAN, multiple GSTINs can be taken. For example, if an organization operates in several states, it may be required to register for GST in each state.
A company may consist of distinct divisions that carry out distinct business operations from one another. Manufacturing and trade units are examples of business verticals that might exist inside a single enterprise.
In this instance, even though the Head Office and branches are situated in the same state, several registrations may be obtained.
Penalty For Non-Registration ?
A penalty equal to 10% of the tax amount owed, subject to a minimum of Rs.10,000, must be paid by an offender who fails to pay taxes or makes short payments (sincere mistakes).
If the offender willfully avoided paying taxes, the penalty will be 100% of the amount owed.