Goods & Service Tax

Overview

Goods and Service Tax is a tax levied on supply of goods and services right from the point of manufacturing to final consumption by user. GST is a simplified indirect tax structure, wherein tax paid on goods/services procured by one person at one stage can be availed as credit while passing on the goods/services to the next stage, until they reach the final consumer who bears incidence of tax.

Registration - Any person or entity supplying goods or services in India above the aggregate turnover limit is mandatorily required to obtain GST registration

Turnover Limit - Limit is Rs.20 lakhs for service providers and Rs.40 lakhs for goods suppliers, except in special category states and subject to the conditions.

Composition Scheme - Any existing taxpayer whose annual turnover did not cross Rs 1.5 crore threshold in the preceding financial year are eligible for composition scheme.

Advantages of New GST Registration

Legally recognized as supplier of goods or services.
Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
Relief from the double taxation system.
Lower tax rates under composition scheme.
Improved logistics by way of E-way Bill.
Taxpayers are eligible to avail various other benefits and privileges under the GST laws.
Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

Registration Check Eligibility

Turnover Exceeds 40/20 Lakhs

If the aggregate turnover is more than 40 lakhs (For Normal Category States) and Rs. 20 lakhs (Special Category States) then GST registration is necessary and must be obtained within 30 days of reaching to that level.

Normal Category States (40 Lakhs): Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, J&K, Assam, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal.

Special Category States (20 Lakhs): Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand.

Compulsory Registration

It is compulsory irrespective of the turnover, for casual taxable person, or those need to pay tax on RCM, Non-Resident taxable person, Input Service Distributor, E-commerce Operator, etc.,

Inter-state Sales or Service

If you are engaged in the supply of goods or services to customers in another state then regardless of turnover, you need to obtain the registration before commencing any interstate trade.

Inter-state Sales or Service

A person who was registered under any previous law of indirect tax was required to migrate to GST, however if failed then immediately get yourself registered under GST.

Documents Required

GST Registration is a PAN based registration which is done online and for one PAN multiple GST registration can be obtained based on the location or business vertical. The registration must be applied within 30 days of, the coverage and to apply the same soft copy of documents are required. Following is the list of documents required for GST registration in India.