Make a smooth transition to the all-in-one GST tax by April 2019.
Launched on April 1, 2017, the Goods & Services Tax (GST) applies to all Indian service providers (including freelancers), traders and manufacturers, once their supply turnover crosses Rs. 20 lakh. The GST is an all-in-one tax that subsumes a variety of state (VAT, Entertainment Tax, Luxury Tax, Octroi) and central taxes (CST, Service Tax, Excise Duty). GST is to be charged at every step of the supply chain, with complete set-off benefits available. The procedure for GST is completely online and requires no manual intervention. There will also be a composition scheme under GST for businesses with a supply turnover of less than Rs. 1.5 crore.
GST is a consolidated tax, this means that both central and state taxes have been merged together. A feature of the GST is that the whole country will have one uniform tax rate. Earlier, this was not the case.
In its current form, products and services have different rates of GST. For example the GST charged for eating at a restaurant is 5%, while the GST on services is capped at 18%. The law also states that for certain businesses, a GST registration is mandatory. Failing to comply with registering for a GST can attract huge penalties and fines under the GST.
Every business or corporation that are involved in the buying and selling and good of services have to register for GST. It is mandatory for businesses whose turnover is more than Rs. 20 lakhs annually to register for a GST. For the North East states, the prescribed amount is Rs.10 lakhs.
All persons who make interstate outward supplies of goods have to register for a GST too. The same applies to people making taxable supplies on behalf of other taxable persons, example Agents and Brokers.
The list of documents required for registration of GST for various business are as follows:
Add what works as identity proof, One can use a PAN Card, Aadhar Card as identity proof. For address proof, any of the director’s can show their voters ID, passport, telephone bill, electricity bill and telephone bill.
A GST Return Filing is a return document that contains details of the income of the taxpayer. It has to be filed with the GST administrative authority. The document is used tax authorities to calculate the tax liability of a GST taxpayer. A GST Return Filing form has to include the following details.
For filing a GST Return, you need to have GST compliant sales and purchase invoices attached.
GSTIN is a unique identification number given to each GST tax payer. To verify a GSTIN number a person who has a GST number can log onto the GST portal.
In GST, each taxpayer is assigned a state wise PAN like 15 digit number. The first two digits of the GSTIN is the state code, for example Delhi has the code 07. This means that every GST tax payer from Delhi will have a GSTIN number that begins with the number 07. The following 10 digits is the PAN card number of the taxpayer. The 13th number is assigned based on number of registrations within a state while the 14th is Z by default. The last digit is the used for check code, so it is always an alphabet.
The GST will consolidate Central Excise Duty, Service Tax, VAT, Central Sales Tax, Customs Duty, Central Surcharge & Cess, Octroi, Luxury Tax, Entertainment Tax, Purchase Tax and a few other indirect taxes. The GST will apply on all goods and services. Even petrol and petroleum products will eventually be subject to it.
The GST council has decided on a four-tier structure. The GST rate will depend on the type of goods and services. Currently, the slab rates are 5%, 12%, 18% and 28%. The rate for gold is yet to be decided, and will likely to be the lowest of all.
GST will have a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST). Therefore, centre and state will levy GST on all entities. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre.
Businesses with a supply turnover of over Rs. 20 lakh must register for GST. The key word here is supply, which takes into consideration any turnover, including stock-taking, discounts and freebies. In fact, even those supplying non-taxable goods must register for GST. Business making sales to other states must register for GST, regardless of turnover.
Just send in all your documents and we'll start processing your application. We will also begin advising you on the best way to transition your business to the GST era.
We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.