Online GST Registration – An Overview

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Summary: GSTIN is the unique identification number that each GST taxpayer receives.
A person with a GST number can log on to the GST portal to verify their GSTIN numbers.

The Goods & Services Tax (GST), which was introduced on July 1, 2017, applies to Indian service providers, including freelancers, traders, and manufacturers. GST combines a number of central taxes, including Excise Duty, Service Tax, and CST, as well as state taxes like Entertainment Tax, Luxury Tax, Octroi, and VAT. It was implemented on 01.07.2017. GST will be applied at all stages of the supply chain.

There are full set-off benefits. GST can be done online without the need for manual intervention. Each product has multiple stages in its supply chain. This includes purchasing raw materials, manufacturing, selling to wholesalers, selling to retailers, and finally sale to the end consumer. GST will be charged at all 3 stages. Let’s suppose that a product produced in West Bengal is consumed in Uttar Pradesh. Taxpayers with less than Rs. 1.5 crore turnover can also choose a composition scheme, which will get rid of all the tedious GST paperwork and allow them to pay GST at a fixed rate.

What are the components of GST?

There will be three components of GST. The Central component, known as the Central Goods and Services Tax (CGST), and the state component, known as the State Goods and Services Tax (SGST), will determine whether GST is imposed on all entities. When a transaction occurs within a state. Interstate transactions are subject to the Integrated Goods and Services Tax, which will be levied at the center. When a transaction occurs in more than one state.

What is the input credit?

You can reduce the tax you have paid on inputs, and then pay the rest at tax time. The purchaser of a product purchased from a registered seller is responsible for paying taxes. The seller is also responsible for paying taxes on products sold. You can use input credit to adjust the taxes you paid at the time of purchase by the amount of tax on sales (output tax) and then pay the remaining tax liability. Tax on sale less tax on the purchase.

Who is eligible to register for GST?

GST registration is mandatory for all businesses and corporations selling, buying, and providing services. Companies with a turnover exceeding Rs.20 lakhs for the supply of services and Rs.40 lakhs for goods must register.

To register for GST, you must have a turnover of more than Rs.20 lakhs (for the supply of services) and Rs.40 lakhs (for the supply of goods). Businesses that make interstate deliveries of goods must also register for GST. Businesses that make taxable supplies for other taxable persons (e.g. Agents and Brokers) are subject to the same rules. A recent notification also states that e-commerce sellers/aggregators are not required to register if their total sales exceed Rs.20 lakhs.

What are the GST tax rates?

  • The exempt list includes items that are basic necessities. They are exempt from tax
  • You can get household necessities, life-saving drugs, etc. Taxes are at 5%
  • Computers and processed foods are subject to a 12% tax.
  • Taxes are 18% on hair oil, soaps, toothpaste, and capital goods, as well as services, intermediaries, and industrial products.
  • Luxury items are subject to 28% tax

You can see the tax rates for all the products here: https://cbec-gst.gov.in/gst-goods-services-rates.html The GST calculator is a handy tool that allows you to calculate the Goods and Service Tax by using different slabs.

What is a GST return?

A GST returns document that contains details about income is required to be filed with the tax authorities according to the law. A taxpayer must file two returns per month under the GST law and one annually. All returns must be filed online. It is not possible to revise returns. All unreported invoices from the previous tax period must be included in this month. A registered dealer must file GST returns, which include purchases, sales, output, GST (on sales), and input tax credit (GST on purchases).

What is GSTIN?

GSTIN is the unique identification number that each GST taxpayer receives. A person with a GST number can log on to the GST portal to verify their GSTIN numbers.

What is the GSTN (Goods and Service Tax Network)?

Section 8 (nonprofit, non-government, private limited) of the Goods and Service Tax Network (or GSTN), is the Goods and Service Tax Network. GSTN provides a single-stop solution to all indirect tax needs. GSTN maintains an Indirect Taxation Platform for GST. This platform allows you to prepare, file, rectify, and pay your indirect tax obligations. For Online GST Registration, you will need to provide mandatory documents These documents are required to register GST for different businesses: Proprietorship

  • Address proof and PAN card

LLP

  • PAN Card of LLP
  • LLP Agreement
  • Address and names of partners

Private Limited Company

  • Certificate of incorporation
  • PAN Card of Company
  • Articles of Association, AOA
  • Memorandum Of Association, MOA
  • Board members sign resolution
  • Directors’ identity and address proof
  • Digital Signature
You can show proof of an address to a director by displaying the following:
  • Passport
  • Voter Identification Card
  • Aadhar Card
  • Ration Card
  • Telephone or Electricity Bill
  • Driving license
  • Statement of Bank Account

You can add what you use as an identity proof to a PAN Card or Aadhar Card. Any director can present their voter ID, passport, and phone bill to prove their address. Preparation of GST Application A representative from GST will gather all required documentation and process the GST application via the CFO platform. Documents have been collected, so filing the application is the next step.

After that, you will receive the ARN number immediately. In order to obtain a GST registration certificate, the GST officer must verify the GST application and other documents. Downloading the GST registration certificate from the GST Portal is the only way to obtain a hard copy. Incomplete GST Registration: Penalties According to Section 122 of CGST Act, India, all taxable persons who fail to register for GST are subject to a direct penalty for Voluntary registration under GST (for companies with a turnover below Rs.20 Lakhs). It’s not mandatory for small businesses to register for GST, but they can voluntarily do so. Some advantages of voluntary GST registration include:

Take input credit

The flow of credit in GST is from the manufacturers of goods to the end consumers. Input credit is when a taxpayer pays tax on output but deducts the tax already paid on inputs to pay the rest. Businesses that register voluntarily may be able to increase their profits and margins as a result.

Interstate selling without restrictions

SMEs can expand their business and discover potential customers.

Register on E-Commerce Websites:

SMEs can expand their market share by registering through eCommerce websites. You will have a competitive advantage over other businesses. Registration of any business entity under the GST Law entails obtaining a unique number from the relevant tax authorities for the purpose of collecting tax on behalf of the government and claiming Input Tax Credit for taxes paid on inward supplies.

GST Return Filing GST Return Filing refers to a document that details the income of the taxpayer. GST administrative agency must receive it. In order to file it, you must contact the GST administrative agency. Tax authorities use this document to calculate the GST taxpayer’s tax liability. A GST Return Filing Form must include the following information.

  • Output GST (On sales)
  • Sales
  • Input tax credit (GST payable on purchases)
  • Purchases

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