GST Registration in Daman and Diu

Doing GST registration in Daman & Diu has never been easier! Get it done online & see the difference it makes to your business!

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What is GST?

Goods and Services Tax (GST) has replaced almost all the indirect taxes in India. The GST Act was passed on 29 March 2017 in Parliament. Later, it came into force from 1st July 2017. India started enforcing the act from then on to all the taxpayers.

Since 1947, India's largest indirect tax reform finally looks like it has the ‘goods and service’ levy. The Constitution (122 Amendment) Bill, 2014 seeks to amend the Constitution to implement goods and service tax (GST). The GST incorporates various indirect central taxes, including central excise duties, countervailing duties, service tax, etc. This also includes the tax on the value-added tax of the economy, tax on loans, tax on luxury, etc.

The GST is being implemented not only to get rid of the existing indirect taxes which keeps muddling our income throughout the year and, mostly causes multiple rates with fewer privileges and exemptions, but also to boost tax grievances and privileges.

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GST rates

The Council on Goods and Services Tax (GST), led by the Union Finance Minister previously, has finalized tax rates for all services in India. Also, the taxes are exempt from healthcare and education as well. The multiplication of service tax rates would add difficulty to enforcement under the GST regime.

On other goods, the GST council narrowly approved GST prices for products at 0%, 5%, 12%, 18%, and 28%. Let’s talk about the five tax slabs in-detail:

NIL rates:

  • GOODS – Products such as milk, natural honey, fresh meat, jute, buttermilk, fresh fruits, and vegetables, etc. will have no tax i.e. 0% tax will be applied.
  • SERVICES - Tariffed hotels and lodges below the price of Rs.1000, and also grandfathering services are removed under the GST.

5% rates:

  • GOODS – Any packed food items, fertilizers, pizza bread, coal, frozen vegetables, spices, medicines, etc. has 5% of the GST.
  • SERVICES - Transport services such as the railways, air transports, newspaper printing, and small restaurants will be charged a 5% tax slab rate of GST.

12% rates:

  • GOODS – Clothing which is above Rs.1000, nuts, purse, frozen meat products, butter, cheese, ghee, Ayurvedic medicine, handbag, etc.
  • SERVICES - Non-AC hotels, building construction for sale, business class air tickets, and work contracts will be charged a 12% tax rate of GST.

18% rates:

  • GOODS - Footwear which costs more than Rs.500, biscuits, flavored refined sugar, washing machine, pasta, cornflakes, James, instant food mixes, mineral water tissues, soap, tampons, notebooks, steel products, camera, and speakers.
  • SERVICES - AC hotels, outdoor catering, telecom services, and IT services will have a tax rate of 18% GST.

28% rates:

  • GOODS - Chewing gum, ATM, sunscreen, paints, chocolate not containing cocoa, motorcycles, waffle, pan masala, deodorants, shaving creams, hair shampoo, dye, weighing machines, washing machines, vacuum cleaner, automobiles, motorcycles, aircraft for personal use.
  • SERVICES – Stay or food/drink at any 5-Star hotels, race club betting, cinema.

There are certain GST exemptions which are available for the following situations:

  • Imports of some non-indigenous security products (up to 2024)
  • Supplies to FIFA- defined persons for the Under-17 Football World Cup in India
  • Provision of silver or platinum for export by specified agencies such as Diamond India Ltd.
  • Supply to the Food and Agriculture Organization (FAO) for defined projects in India
  • Import of silver or platinum by a few specified agencies like the Diamond India Ltd.

Types of Exemptions:


Absolute exemption:

The absolute exemption is an exemption without any conditions. For instance, transmission or distribution of electricity by an electricity transmission or distribution utility or even the services by the Reserve Bank of India (RBI).

Conditional Exemption:

A conditional exemption is an exemption which is subject to certain conditions. For instance, services by a hotel, inn, guest house, club, lodge or campsite, by whatever name called, for residential or lodging purposes, having acknowledged tariff of a unit when accommodated in any of these with less than Rs.1000/- per day.

Conditional or partial exemption:

Intra-State supplies of goods and/or services received from an unregistered person by a registered person is exempted from payment of tax under reverse charge, on condition that the aggregate value of such supplies received by the registered person from all or any of the suppliers does not exceed Rs.5000/- in a day.

What are the advantages of GST?

  • GST is an economically effectual solution
  • Common national market
  • Lesser compliances
  • Increased efficiency in logistics
  • Online simpler proceedings under GST
  • GST evades the “cascading” of taxes
  • Regulating the unorganized sector
  • The number of tax-exempt goods will decline
  • Higher threshold for registration
  • It merely reduces the logistic costs and also the consolidation of warehousing amenities
  • GST will simplify tax administration and improve compliance
  • GST helps in cutting down the production cost and making export more competitive
  • Revenue will get an enhancement while considering both the States and Center will have less oversight
  • It will eliminate economic distortions in production, trade, and consumption.

What is a late fee in GST?

The late fee is a sum paid for delay in filing GST returns, in compliance with GST legislation. It can be considered as an unpaid fee.

When a GST Registered Company fails to file GST Returns within the specified due dates (refer to the Government website for the due dates), some late fees are paid accordingly. The late fee for the delay in filing NIL returns is also valid. There are, for example, no figures in the GSTR-3B to announce sales or acquisitions for December 2018. Now, you need to file your return.

The duration of the delay will depend on the number of days from the due date. The GST return is filed in GSTR-3B on 23 January 2019, 3 days after the specified due date, i.e. 20 January 2019. Late payments are estimated for three days, and cash deposits are made.

Nevertheless, the GST platform is currently only configured to charge a late fee on GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7, and GSTR-9 returns.

What are the components of GST?

There are 4 essential components of GST. They are:

  • CGST
  • SGST
  • IGST
  • UTGST

CGST:

The full form of CGST is Central Goods and Services Tax. It is collected by the Central Government on the intra-state supply of goods and services in India. For instance, the transaction happening within the state of Orissa)

SGST:

SGST is otherwise called the State Goods and Services Tax. SGST is collected by the State Government on the intra-state supply of goods and services in India. For instance, the transaction happening within the state of Maharashtra)

IGST:

The full form of IGST is Integrated Goods and Services Tax. It is collected by the Central Government on the inter-state supply of goods and services in India. For instance, the transaction happening between Orissa and Maharashtra or vice versa.

UTGST:

UTGST stands for Union Territory Goods and Services Tax. It is an indirect tax levied and collected by the Union Territory on the intra-state supply of goods or services in India.

CGST, SGST, and IGST have replaced all the below-mentioned taxes.

  • Duties of Excise
  • Purchase Tax
  • Special Additional Duty of Customs
  • Entry Tax
  • Taxes on advertisements
  • Central Sales Tax
  • Luxury Tax
  • State VAT
  • Central Excise Duty
  • Cess
  • Entertainment Tax
  • Additional Duties of Excise
  • Additional Duties of Customs
  • Taxes on lotteries, betting, and gambling

Documents required for GST Registration in Daman and Diu

There are 5 essential documents required to register for GST in Daman and DiuDaman and Diu. They are:

Photographs of directors are very important.

Directors’ PAN (Permanent Application Number) card

PAN is mandatory for becoming a Director in a company, it is required for GST purposes as well. It is highly important to apply for a PAN if you don’t have one. PAN will make your GST registration process in Daman and Diu easy.

Identity proof (E.g. Aadhaar card)

Each director of the company should submit any of his/her identity proof. The ID proof can be a Passport or Voter Card or Driving License or any other ID proof for GST Registration in Daman and Diu.

Aadhaar card:

Though an Aadhaar Card is not necessary to register for GST in Daman and Diu, it is always good to own one. Aadhaar number can be linked to your respective mobile numbers so that the process of generating the Digital Signature Certificate (DSC) would rather be done within minutes.

Address proof of each Director

Each Director of the company should submit any one address proof in their name which can be either the Bank Statement or Gas bill or Water bill or Electricity bill or Telephone bill. Most importantly, the address proof should not be more than 2 months old. Also, remember that an Aadhaar card and bank passbook is not a valid address proof.

Office address proof and utility bill

The director should submit the office address proof for the proposed office address which can be an Electricity Bill, Water Bill, Gas bill, Telephone bill or any other utility bills. These bills can be in anyone’s name, which doesn’t matter. Also, these bills which will be submitted need to be less than 2 months old. The electricity bill can also be in the house address or the father’s name.

The above mentioned are common for any type of businesses i.e. Sole proprietorship, Private Limited Company, One Person Company, HUF, Partnership firm, etc.

Procedure

  • Submit your details here Vakilsearch
  • An executive will call you on your request
  • According to your requirements, an expert will be assigned exclusively for you throughout your journey of our GST registration
  • Upload the required documents in the provided portal
  • An ARN number will be generated
  • You will receive your GSTIN number shortly

Frequently Asked Questions

IGST or Integrated GST is an indirect tax levied on inter-state supplies of goods and services. It is also applicable in cases of export from and import into India.
No, you are not allowed to collect GST from your customers if you do not have a GST registration. Also, you can’t claim any Income Tax Credit against the GST paid by your customers.

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