What is GST (Goods and Service Tax) ?
Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July 2017 and was applicable throughout India which replaced multiple cascading taxes levied by the central and state governments. It was introduced as The Constitution (One Hundred and First Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill. The GST is governed by a GST Council and its Chairman is the Finance Minister of India. Under GST, goods and services are taxed at the following rates, 0, 5%, 12% ,18% and 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 15% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products. GST was initially proposed to replace a slew of indirect taxes with a unified tax and was therefore set to dramatically reshape the country's 2 trillion dollar economy. The rate of GST in India is between double to four times that levied in other countries like Singapore.- Source -Wikipedia
GST Registration Number (GSTN)
- Every taxpayer will be assigned a state-wise PAN-based Goods and Services Taxpayer Identification Number (GSTIN) which will be 15 digit long.
- The first two digits of GSTIN will represent the state code .
- The next ten digits of GSTIN will be the PAN number of the taxpayer.
- 13th digit indicates the number of registrations an entity has within a state for the same PAN.
- The fourteenth digit will be “Z” by default.
- The last digit will be a check code which will be used for detection of errors.
After the GST Registration, each assessee have to file the GST Returns as per the compliance.
For Regular Dealers- if you are registered under the regular scheme of the GST then you have to file the monthly basis returns.
Compostion Dealers: Quarterly Returns
Procedure for GST Registration
Step 1: Visit https://www.gst.gov.in/ and Select Taxpayer
Step 2: Fill the required information like State in Which registration is sought, District, Legal name of Business, PAN number, Mobile Number and Email Id.
Step 3: Provide OTP and validate , System will create Temporary Reference Number (TRN) and will be sent to you on email and Mobile Number.
Step 4: Login with TRN number and OTP on email/Mobile
Step 5: New Application form will be displayed , fill required details like
Address of Business: upload Supporting Documents
Details of existing Registration like , Company Registration, LLP Registration , Partnership Registration and upload supporting Documents
Provide details of proprietor/ partners/ Directors/ Designated Partners/Authorized Signatory and upload Photograph
Provide details of Goods and Services of your business
Provide details regarding type of Business: Retailer/ wholesale/ Manufacturer/ Service Provider/ Work Contract
Upload Details regarding Bank Account of business and Upload supporting Documents
Provide details of specific ward and services tax area
Provide state specific tax information , if any
Step 6 : Sign and Submit the Application, Once application for GST Registration is submitted , you will receive ARN on registered email id and Mobile Number.
Step 7: Track Status of application with ARN
Step 8: Receipt of Certificate or Clarification from Department, if any clarification is sought than resubmit the Application from available on GSTN portal.
CIN is always mentioned at Certificate of Incorproation of the Company , you are required to mentiond Company CIN at all commercial documents like Letter Heads, Visiting Cards, Website of the Company.
What is Composition Scheme?
Composition Levy is an option provided to small business enterprises whose aggregate turnover in preceding financial year did not exceed Seventy Five Lakh rupees may opt to pay tax at much lower rates of
-Two percent in case manufacturer, and
5% in case of person engaged in supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.