GST Registration in Odisha

GST Registration in Odisha

GST stands for Goods and Services Tax, which is levied on goods or services or both in India. GST includes several existing indirect taxes being levied by the Central and State Governments. It comprises Central Excise duty, VAT, Purchase Tax, goods Tax, Entry Tax, Local Body Taxes, Octroi, Central Sales Tax, Luxury Tax, etc.

It provides several advantages to all stakeholders like industry, government, and the citizens. It is required to lower the cost of goods and services, boost the market, and make the products and services globally competitive. Odisha GST number intends to make a common national market with uniform tax rates, methods and removes the economic difficulties. Thereby, paving the way for an integrated economy at the national level.

Odisha GST registration is a destination-based consumption tax. It has been created in a manner so that the tax is received at every stage, and the credit of tax paid at the early stage is available to set off the tax to be paid at the next stage of the transaction, thereby reducing the cascading of taxes. This eradicates “tax on tax” and provides cross utilization of input tax credits, which serves the industry by making the whole supply chain tax neutral.

Benefits of GST Registration in Odisha

• GST will provide a major addition to the ‘Make in India’ initiative of the Government, by making goods or services produced in India in the national and international markets. Moreover, all imported goods will be debited with integrated tax (IGST), which will be more or less similar to Central GST and State GST. This makes equality in taxation on local and imported products.
• Under the GST management, exports will be zero-rated in total, unlike the present system where a return of a few taxes is not supported due to the fragmented nature of indirect taxes between the Centre and the States. All taxes paid on the goods or services exported or on the inputs or input services practiced in the supply of such export goods or services shall be returned. The system of exporting only the cost of goods or services and not taxes would be accompanied. This will increase Indian exports, thereby increasing the balance of payments position. Exporters will be facilitated by a grant of a provisional refund of 90% of their claims within seven days of the delivery of acceptance of their application, thereby following in easing of position concerning cash flows.
• GST is required to bring buoyancy to the Government Revenue by broadening the tax base and developing taxpayer agreement. GST is likely to develop India’s ranking in the Ease of Doing Business Index and is expected to boost the GDP by 1.5% to 2%.
• GST will check the cascading of taxes by implementing a complete input tax credit device over the whole supply chain. The seamless availability of input tax credit beyond goods or services, at every step of supply, will allow streamlining of business operations.
• Uniform GST rates will decrease the reason for evasion by reducing rate arbitrage between neighboring states and that among intra-state and inter-state sales.
• Common methods for registration of taxpayers, the refund of taxes, uniform formats of tax return, common tax base, a common system of distribution of goods or services along with timelines for every activity will give higher assurance to the taxation system.
• GST is mainly technology-driven. The interface of the taxpayer with the tax experts will be within the common Odisha GST portal (GSTN). There will be clear and automatic methods for various methods such as registration, returns, refunds, tax payments, etc.
• All methods, be it of applying for registration, filing of returns, payment of taxes, filing of return claims, etc., would be done online through GSTN. The input tax credit will be checked online.

Benefits of online GSTIN search & verification tool

The advantages of GSTIN verification are:

• To verify the authenticity of any GSTIN
• A GSTIN on a hand-written invoice can be checked regularly, if unclear
• You can prevent yourself from connecting with vendors using fake GSTINs
• Avoid a GSTIN duplicity
• Help vendors fix any possible mistake in reaching GSTIN

Checklist requirements for GST registration in Odisha

• New GST Registration is required for all suppliers who conduct their business across India.
• GST Registration must be for all the businesses, small startups, entrepreneurs who make a value over the selected turnover limit in India.
• They should register under the GST Act to support single tax return rules.
• Accurate Permanent Account Number(PAN).
• Valid Indian mobile phone number.
• Valid email address
• Prescribed documents and data on all necessary fields of the registration application.
• Place of business.
• An approved signatory who is the citizen of India with real details, including PAN.
• At least one proprietor/ director/ trustee/ karta/ member with a corresponding PAN card.
• Indian Financial System Code (IFSC) number of the corresponding bank and branch.
• Correct India bank account number.
• Jurisdiction details.

What are the various types of returns under the GST laws?

The following table lists the various types of returns under GST Law:

Filing GST process in Odisha

GSTR-1 (Statement of Outward Supplies):

• This return implies the tax liability of the supplier for the stocks affected during the preceding month.
• It requires to be filed by the 10th of every month regarding supplies made during the previous month. For instance, a statement of all the outward supplies given during July 2017 requires to be filed by 10th August 2017.

GSTR-2 (Statement of Inward Supplies):

• This return implies accrual of ITC (Input Tax Credit) from the inputs obtained during the previous month.
• It is auto-populated from the GSTR-1s recorded by the related suppliers of the Taxpayer except for a few fields like imports, and purchases from suppliers that are not registered.
• It needs to be filed by the 15th of every month regarding supplies obtained during the previous month. For instance, a statement of all the inward supplies collected during July 2017 needs to be filed by 15th August 2017.

GSTR-3:

• This is a consolidated return. It requires to be filed by the 20th of every month. It incorporates the following details.
• Outward Supplies (Auto-Populated from GSTR-1)
• Inward Supplies (Auto-Populated from GSTR-2)
• ITC availed.
• Tax Payable.
• Tax Paid (Using both Cash and ITC) NOTE: Payment should be made on or before the 20th of every month.

Features of GST Registration in Odisha

The basic features of the GST return process include automatic filing of returns, uploading of invoice level data and auto-population of information relating to Input Tax Credit (ITC) from returns of the supplier to that of the receiver, invoice-level information matching and auto-withdrawal of Input Tax Credit in case of mismatch. The returns mechanism is meant to assist the taxpayer to file returns and avail ITC.

Under GST, a general taxpayer needs to provide monthly returns and one annual return. There are separate returns for a taxpayer filed under the planning scheme, non-resident taxpayer, taxpayer registered as an Input Service Publisher, a person responsible to deduct or manage the tax (TDS/ TCS), and a person given a Unique Identification Number. It is essential to note that a taxpayer is NOT required to file all types of returns. Taxpayers are expected to file returns depending on the actions they initiate.

It leads to an increase in revenue

GST has given the economy a boost, and an increase in India’s GDP in the long run. As far as direct impact goes, GST has succeeded in increasing the taxpayer base by regulating the threshold for liability. Tax compliance is also working to be more comfortable in the long-term, and an online taxation system means greater performance, responsibility, and therefore reduces the chances of being able to get away with tax fraud.

It simplifies tax filing for businesses

As a company owner, you may find that currently adjusting to the new GST regime requires time, money and management. But in the long term, the method of filing GST returns will become a lot simpler. Since all major indirect taxes have been solidified, you will find that you no longer need to manage large departments that are particularly focused on dealing with the previously extensive tax documentation. Additionally, if you are a start-up, you are no longer required to file several individual taxes like VAT and service tax.

It has made certain items more affordable

As a private taxpayer, you will find that the value of some products has decreased, such as the reduction in the tax levied on private taxis from 6% to 5%. For air travel, flying economy class has become marginally more affordable with a tax of 5%. The price of eating out hasn’t seen any main changes. Although it depends on the nature of the enterprise - whether it has air conditioning or not, whether it serves alcohol or not, or whether the turnover is less than Rs.50 lakh per annum. On the other hand, you will find that businesses that focus on unprocessed grains like rice and wheat, unprocessed milk, vegetables, seafood, meat, and unbranded flours, don't have to pay GST. With this data in hand, be abreast of the latest GST updates and deadlines. This way, you can make sure that you register GST returns and charge GST on customers properly.

• GST Percentage in Odisha: The GST rate in India for many goods and services is classified under 4 slabs; these are 5% GST, 12% GST, 18% GST, and 28% GST. Though, some goods do not provide any GST rate.
• GST Calculation in Odisha: For the calculation of GST, the taxpayer should know the GST rate applicable to various categories. The slabs for various types are 5%, 12%, 18% and 28%. 1,000 and the GST rate Suitable is 18%, then the net price determined will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs. 1,180.

Which GST registration is mandatory?

• People performing any inter-state taxable supply;
• Casual taxable persons;
• People who are expected to pay tax under reverse charge;
• Non-resident taxable forms;
• People who are asked to deduct tax below section 37;
• People who provide goods and services on account of other registered taxable persons whether as an agent or otherwise;
• Input service distributor;
• People who provide goods or services other than branded services, through an electronic business operator;
• Every electronic business operator;
• An aggregator who provides services under his/her brand name or trade name; and
• That person or class of similar persons may be declared by the Central Government or a State Government, on the advice of the Council.

GSTIN in Odisha

The Odisha GST code is 21. The Goods and Services Tax (GST) started on 1 July 2017 at a memorable event in the Parliament. It was aimed at clarifying the existing tax structure of India. The main purpose of the implementation of a new tax regime is one nation, one tax, one market. Odisha GST code has returned a dozen central and state levied taxes such as excise, VAT, and service tax.

As an outcome, business objects will now need to file under GST and get a unique 15-digit Goods and Service Tax Identification Number (GSTIN). This will return the previously existing Tax Identification Number (TIN) which was given to businesses by respective state tax officials for registering under VAT.

In the new GST management, all registered taxpayers will be connected to a single platform for compliance and management plans and will be registered under a single authority. Around 8 million taxpayers were moved from various programs to GST.

A unique code identified as GSTIN is assigned to each taxpayer, which will be state-wise and PAN-based. Here is the analysis of the 15-digit Odisha GST code or GSTIN format:

For example let us consider a GST number 21AAAAAAAAAA1Z5

• The first two digits denote the Odisha GST code or state code as per the Indian Census 2011. The state code of Odisha is 21. Every state or Union territory has a different code. For instance, 27 stands for Maharashtra, and 09 is for Uttar Pradesh.
• The following ten digits are the PAN number of the taxpayer or company organization
• The 13th digit intimates the number of registrations in a state for the same PAN. It will be an alphanumeric digit (first 1-9 and then A-Z)
• The 14th digit will be the alphabet ‘Z’ by default.
• The last digit will be a check code to identify errors. It can be a letter or a number.

Why do you need a GSTIN in Odisha?

Odisha GSTIN number is important for business entities as it provides several advantages that are possible under the GST regime. A GSTIN is compulsory by the government for businesses with annual turnover surpassing Rs.20 lakh. If you are a certified dealer, you need to file GST returns and create a payment if GST liability exists. Also, if the GST paid by you is higher than the GST liability, you can claim a refund through your GSTIN.

Additionally, a GSTIN also assists when you are viewing to avail of a loan to fund your business. Financiers provide company loans for businessmen to buy inventory, develop commercial space and increase their business. Your business should be filed with the Government of India and have a correct GSTIN to be available for a business loan.

Verification of GSTIN in Odisha

Verifying GST Number or GSTIN is very essential as there are many instances where people manage GST Number (GSTIN). In addition to this, the GST Number search will assist you to support clarity in all the business activities and will assure you that you are registering exact GST Returns for the particular tax period. Moreover, GSTIN verification will also assist you to maintain input tax credit that you might lose because of fake GSTIN.

Verifying GSTIN or GST Number is the necessity of the hour to assure that your paid GST taxes land up in the right pockets. It also provides an opportunity to contribute to nation-building.

Documents needed for GST registration in Odisha

The important documents for GST filing include a PAN card, proof of business registration, identification, photos and address proof of persons in charge, the business’ address proof and bank account records. You can verify your bank details using a bank statement, canceled cheque or an extract from your passbook. Furthermore, an address proof can take the form of an electricity bill, rent agreement, purchase documents, property tax statement and so on.

GST Registration Documents for People and Sole Proprietors

• Owner’s PAN card
• Owner’s Aadhaar card
• Owner’s photograph
• Proof of address
• Bank account details

GST Registration Documents for Partnerships and LLPs

• Partnership deed
• PAN cards of partners involved
• Photographs of partners involved
• Address proof of partners involved
• Aadhaar card of any authorized signatory
• Signatory’s proof of appointment
• LLP proof of registration
• Bank details
• Business’ principal address proof

GST Registration Records for Hindu Undivided Families (HUFs)

• HUF’s PAN card
• Karta’s (patriarch of the family) PAN card
• Owner’s photograph
• Bank detail
• Business’ principal address proof

GST Registration Documents for Companies

• Company PAN card
• The Ministry of Corporate Affairs business certificate
• Memorandum/ Articles of Association
• Signatory’s appointment proof
• Signatory’s PAN card
• Signatory’s Aadhaar card
• PAN card of all directors
• Address proof of all directors
• Bank details
• Business’ principal address proof

GST Registration Documents for Society or Club

A society or club wants to give the following GST filing documents to make the process and obtain GSTIN.

• A copy of the club or society’s registration certificate.
• A copy of the PAN card of the club or society with that of affiliated associates or promoters.
• Photograph of co-workers or promoters.
• A copy of the bank account record/crossed cheque/passbook’s first page.
• Verification of registered office’s address, that can hold utility bills, certificates of legal ownership/municipal khata copy for premises occupied by the society or club. In the case of rented premises, a rent agreement as well as NOC from the premise’s owner.
• Permission letter approved by approved signatory/signatories.

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