GST or Goods and Service Tax is one of the most transformational changes that we have seen in recent years. It is one of the biggest tax reforms in India that includes both State and Central taxes. The good part about this tax is it is easy, and one doesn’t have to get into the trouble of different taxation systems. Any business offering sale of goods with an annual turnover of ₹ 40 lacs or service with an annual turnover of ₹ 20 lacs would require the registration for GST and have a valid GST Number.
Well, this new transformation that we are talking about came on July 1st, 2017. As per this, GST is an indirect tax that is imposed in India to remove the geographical barriers and form a single market that is open to buy and sell, import and export within our nation.
We have already mentioned the state tax and the central tax which are levied on goods and supply –interstate and intrastate. Additionally, taxes are levied on goods and services within Union Territories, which is known as Union Territory GST.
If you fall under any of the following categories, you don’t need to go for GST registration. You will get Unique Identification Number:
It is applicable in all the Union Territories. These are:
UTGST will attract GST applicable to a Union Territory and Centre. For example, if you have supplied the vehicle's part from shop A to shop B in Andaman and Nicobar Island, then the GST applicable is 12% and here is how the tax will be calculated:
The process of GST registration has been simplified in India. But, before that, you must know about the modes of GST registration in India:
The GST registration process is almost the same for union territories like Andaman and Nicobar Island like it is for other parts of the nation. If you are willing to go for UTGST registration, then you would need to know about the documentation and procedure of registration. Here is a list of documents that you would need:
If you are going to register as a sole proprietorship, then you would need the following documents:\
If you are registering your organization as a Private Limited Company or Public Limited Company, then you need to submit the following documents:
Apart from the company’s document, you would also be required to produce all the validating documents of the directors like:
Registered Office documents
Similar to the documents of director in case of a private limited company or public limited company, you need to submit documents of the partners in the partnership :
Registered Office documents
An important point to note here is that B2B transactions are also subjected to GST, so if you are dealing in this domain, then you need to go for the GST registration. However, if you have an online shop that has a turnover of fewer than 10 lakhs, then you would not need GST registration.
GST registration is a great initiative, although it has its supporters and opponents, this has unified the taxation system. The above-mentioned steps have clearly explained the right way of GST registration in Andaman and Nicobar Island. The procedure for registration and tracking remains the same for all the states.
The process of GST registration is very simple, and if you have complete documents with you, the process will be hassle-free. Register with Vakilsearch in 3 simple steps –
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