About Goods & Service Tax (GST)
Goods & Service Tax (GST) is an indirect tax which is levied on every supply of goods or services, unless it is specifically exempted / excluded from its scope. In simpler term, GST is payable on every sale / purchase of good as well as provision of service in India, unless otherwise exempted.
GST was introduced to replace a number of the earlier prevailing taxes such as Excise duty, Value added Tax (VAT), Central Sales Tax (CST), Service Tax, etc, with effect from July 1, 2017. Since singularly GST replaces so many erstwhile taxes and allows seamless credit of taxes paid at every level of value chain, it removes the cascading effect of taxes paid. In order to provide a transparent and fair mechanism for allocation / distribution between Central Government and all State Governments of taxes collected by Central Government, GST has been divided in three components viz. –
- CGST – Central GST (belongs only to Central Government)
- SGST – State GST (belongs only to State Government)
- IGST – Integrated GST (to be shared by Central and State Government in agreed proportion)
Supply of goods or services within State are liable to CGST & SGST, wherein each component is one half of total GST payable. For Example, in case of Biscuits liable for 18% GST, which are supplied within State, CGST and SGST component is 9% each. Where goods or services are supplied outside State, they are liable to IGST at the full rate i.e. 18% in case of Biscuits.
Tax Vyapar provides all support and facilities your business needs under GST regime such as GST Registration, Return Filing, Composition Application, Refund Application, GST advisory, Notice Response, Advance Ruling, Appeals, Surrender of GST Number, etc.
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Who is required to register under GST compulsorily?
Business in the following categories are compulsorily required to obtain GST Registration
- Intra-State Annual Turnover of more than Rs.40 lakhs in case of supply of goods (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
- Intra-State Annual Turnover of more than Rs.20 lakhs in case of provision of services
- Inter-state supply of taxable goods and services.
- Person liable to pay GST under Reverse Charge Mechanism.
- Non-resident taxable individuals.
- Agent of suppliers.
- Input service distributor.
- All E-commerce operators
- Ecommerce Aggregators
- Persons selling on Ecommerce website, portals, etc.
Any person not falling in the above categories can also obtain voluntary GST registration. This is especially useful for those who purchase goods which are liable to GST and want to take input credit.
Our Pricing
To know our pricing for filing GST returns, click here.
Types of Registration
Classification under which a person can obtained registration under GST in India
- Regular Taxable Person
A person / entity who supplies goods or services from a fixed place of business in India will be registered as a regular taxable person under GST. A regular taxable person may also opt for GST Composition Scheme.
Registration under this category is valid forever unless cancelled or surrendered. Further, it does not require the taxpayer to deposit the estimated GST liability with the department in advance, unlike the other categories.
- Casual Taxable Person
Persons who have seasonal or temporary businesses or travel to different places for supplying their goods or services can register as Causal Taxable Person. Such persons do not have any fixed place of business due to the very nature of their business. Persons supplying their goods or services in trade fairs or exhibitions fall under this category.
Since such persons find it difficult to maintain a fixed place of business and proper books of accounts, special provisions have been made for such person under GST. Casual Taxable Person’s registration is valid for the duration mentioned in the registration application, which cannot extend beyond 90 days from the date of registration.
- Non-Resident Taxable Person (Foreigner)
A non-resident person or entity who occasionally supply goods or services in India but do not have any fixed place of business in India are required to be registered as Non-Resident Taxable Person under GST.
Prior to obtaining such registration, the foreigner / foreign company or organisation has to give details of a person in India to act as its authorised representative for GST compliance. Such person must be a resident in India having a valid PAN. Non-Resident Taxable Person’s registration is valid for the duration mentioned in the registration application, which cannot extend beyond 90 days from the date of registration.
GST rates applicable
Rates at which GST is charged is different for different category of good or services. Presently, the GST rates are 0%, 0.25%, 3%, 5%, 12%, 18% and 28%.
GST has been structured in a way that essential services and food items are placed in the lower tax brackets, while luxury services and products have been placed in the higher tax bracket. For example, vegetables attract 0% GST (Nil rated) and Leather articles fall in GST slab of 28% rate.
To check the GST rate applicable on your goods or services, click on the following link.
Consequences of not registering under GST
Every person who was required to obtain GST Registration but has failed to do so or has delayed in registering, is liable to penalty as per Section 122 of the CGST Act. The penalty amount will be Rs. 10,000 or the amount of tax evaded or not deducted, whichever is higher.
Time Frame
File Application
Once you give us all the required documents and information, we’ll take only 1 working day to file GST Application
GSTIN Receipt
You will get GST number (GSTIN) in 2-3 working days after filing application
Information Required
Relating to FIRM / COMPANY
- Mobile Number & email id
- Landline number
- Date of commencement of business
- Nature of business (Manufacturer, Retailer, Wholesaler, etc.)
- Goods traded/ Services rendered (with HSN / SAC Code)
- Name of the person signing application
Relating to PARTNERS / DIRECTORS / PROPRIETOR
- Date of Birth
- Father Name
- PAN
Documents Required
Relating to FIRM / COMPANY
- PAN Card
- Bank Statement of Current account or Cancelled Cheque
- Letter of Authority in favour of Partner/ Director (not applicable for Proprietorship)
- Constitution Document
- Proprietorship – No Document
- Partnership – Partnership deed
- Limited Liability Partnership (LLP) – Certification of Incorporation
- Company – Certification of Incorporation
Relating to PARTNERS / DIRECTORS / PROPRIETOR
- Passport size photo
- PAN Card
- Aadhar Card
Relating to PLACE OF BUSINESS
If Rented:
- Rent Agreement / Lease Deed
- Any one utility bill (electricity bill / property tax bill)
- NOC from Owner/ Landlord
- Owner PAN/ Driving License or Passport
If Owned:
- Purchase Agreement / Sale Deed
- Any one utility bill (electricity bill / property tax bill)
If Neither Rented nor Owned (i.e. use on consent):
- Any one utility bill (electricity bill / property tax bill)
- Consent letter / NOC
- Owner PAN/ Driving License or Passport
* Recent bill (last 1-2 months) in name of owner / landlord
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