What is GST? - Registration and Procedure
Introduction of 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. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. Presently most of the items are levied at 40%-50% tax rates but due to introduction of GST flat tax rate shall be applicable which will reduce tax burden on consumers. GST Registration& 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 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. • These are the list of compulsory registration: I. Persons making any inter-state taxable supply II. Casual taxable persons III. Person who are required to pay tax on reverse charge basis IV. Non-resident taxable persons V. Person who are required to deduct tax under sec 37 VI. Persons who supply goods or services on behalf of other registered taxable person whether as an agent or otherwise VII. Input service distributor VIII. Person who supply goods or services other than branded services, through electronic commerce operator IX. Every electronic commerce operator X. An aggregator who supplies services under his brand name or his trade name XI. 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. Procedure for Registration under GST • 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. Further, it is mandatory for every person to register if the annual turnover is more than Rs 20 lakh, the exemption limit. • 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.
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