GST Services

GST (Goods & Services Tax) was introduced by the Government of India to regulate prices throughout the country and remove all state or central Govt. imposed indirect taxes on goods and services by initiating GST Registration in India. As per the new GST regulation, businesses whose turnover exceeds Rs 40 lakhs (20 Lakhs for North East and hill states for sales of goods) are required to get their GST as a normal taxable person. Also, there has been no alterations in the threshold limits for service providers. Persons providing services must register if their aggregate turnover exceeds Rs. 20 lakhs (for the normal category) and Rs. 10 lakhs (for special category states).

Apart from the other turnover bracket, there are certain cases where GST is mandatory for individuals or entities engaging themselves in the supply of goods or services across the State to get new GST registration online. One can apply for online GST Registration either as a normal taxpayer or under a GST composition scheme.

As we glare to the name, the name itself depicts that the GST will be applicable on both the goods and services following a dual system of GST, keeping the work of both the Central and the State Government independently. The GST Council is headed by the Union Finance Minister and will also include various State Finance Ministers.

Different Types of GST in India

Following are the different types of GST in India:

1. CGST: CGST or Central Goods & Services Tax is the tax imposed on the Intra State supplies of goods/products and services by the Central Government of India. When the place of the buyer & seller is in the same State, it is known as an intra-state supply of goods & services. Here, a seller has to collect both SGST & CGST, in which CGST remains with the Central Government while the State Government collects the SGST.
2. SGST: SGST or State Goods & Services Tax is the tax imposed on the supplies of goods & services by the State Government.
3. IGST: IGST or Integrated Goods & Services Tax is governed under the IGST Act, where the seller has to collect IGST from the buyer & the tax collected will be divided between the State & Central Governments.
4. Union Territory GST: This tax is imposed when any products & services are used in the Union Territories of India & the Government of Union Territory collects the revenue.

Advantages of GST Registration

Following are some advantages of GST Registration in India:

1. After GST, tax evasion is minimised to a great extent;
2. Under GST Regime, small businesses under turnover of Rs. 20 lakhs to 75 lakhs can benefit as it gives an option to lower taxes by using the Composition Scheme. This was introduced to lessen the tax & compliance burden on many small businesses.
3. Compliance is less under GST;
4. Previously, in the VAT system, any business with a turnover of more than Rs. 5 lakhs was liable to pay VAT in India. Moreover, service tax was exempted for service providers with a turnover of less than Rs. 10 lakhs. Under GST Regime, said threshold has been increased to Rs. 20 lakhs, which exempts a lot of service providers & small traders.
5. Reduction in costs of goods and services;
6. GST has combined varioindirect taxes under one umbrella & integrated the Indian Market.

Who can Apply for GST Registration in India?

1. Every entity that is registered under a previous law of taxation i.e., VAT, Excise, Service Tax etc., needs to apply for GST Registration;
2. Casual taxable person;
3. Any business entity whose aggregator turnover in a financial year is more than Rs. 40 lakhs (Rs. 20 lakhs for the special category in GST);
4. Agents of a supplier;
5. Any supplier or entity dealing in inter-state supply of goods;
6. Non-resident taxable person;
7. An individual who supplies via an e-commerce aggregator;
8. Person supplying online information & database access/retrieval services from an outside India to an individual in India, other than a registered taxable person or individual;
9. Input service distributor.

Documents Required for GST Registration

Documents for Online GST Registration vary with the type of businesses in India. Following are some vital documents that are required at the time of online GST registration in India:

• For a Partnership Firm:

1. PAN Card of all partners including authorised signatory & managing Partner;
2. Aadhar Card of the authorised signatory;
3. In the case of LLP, Board Resolution or Registration Certificate of LLP;
4. Details of the bank account;
5. Photographs of all the partners & authorised signatories in JPEG format and the maximum size of the photo should be 100 KB;
6. Copy of Partnership Deed;
7. Address proof partners such as Voters ID, Driving License, Aadhar Card, etc.;
8. Address proof of principal place of business;
9. Appointment proof of authorised signatory.

• For a Private or Public Limited Company:

1. PAN Card of the company;
2. Certificate of Incorporation;
3. Memorandum of Association (MoA) and Articles of Association (AoA) of the company;
4. Id proof & address proof of all directors & Authorised Signatory of the company;
5. Passport size photo of the directors & authorised signatory;
6. Details of bank account opening;
7. Passport size photograph of the authorised signatory & directors of the company;
8. Address proof of the business place.

• For a Sole Proprietorship Business:

1. PAN Card of the owner;
2. Aadhar Card of the owner;
3. Owner’s Photographs in JPEG format, maximum size 100KB;
4. Details of bank account;
5. Address proof.

• For a HUF:

1. PAN Card of HUF & the passport size photos of the Karta;
2. Identity proof & address proof of the business place;
3. Details of the bank account.