The Goods and Services Tax (GST), which went into effect on July 1, 2017, affects all producers, traders, and service providers in India, including independent contractors. A number of central taxes, including service tax, excise duty, and CST, as well as state taxes, including entertainment tax, luxury tax, octroi, and VAT, were combined into one tax on July 1, 2017, known as GST. Every stage of the supply chain will be charged GST, with full set-off privileges available. GST registration is done totally online without any manual input.
Along the supply chain, every product goes through a number of steps, including buying the raw materials, manufacturing, selling to the wholesaler, selling to the retailer, and then selling to the customer. It’s interesting to note that GST will be applied to all 3 levels.
What are the Main Components of GST?
The Goods and Services Tax (GST) will have three tax components: a central (Central Goods and Services Tax, or CGST) and a state (State Goods and Services Tax, or SGST) component. Both the federal government and each state will impose the GST on all entities, or whenever a transaction takes place within a state. When a transaction occurs from one state to another, it will be subject to the Integrated Goods and Services Tax (IGST), which will be imposed by the central government.
Who needs a GST Registration?
Every company or business that buys, sells, or provides goods or services needs to register for GST. Companies must register for a GST if their annual revenue exceeds Rs. 20 lakhs (for the sale of services) and Rs. 40 lakhs (for the supply of commodities).
Every company that exports goods beyond state lines must also register for a GST. The same holds true for companies that produce taxable supply on behalf of other taxable individuals, such as agents and brokers.
In accordance with a recent regulation, e-commerce vendors and aggregators are also exempt from registration provided their combined sales are under Rs. 20 lakh.
How much does the GST tax cost?
* Basic requirements are included on the exempt list, which means they are not subject to tax.
* The tax rate is 5% on things like life-saving medications and household essentials.
* Computers and processed food are subject to a 12 percent levy.
* Tax rates on capital goods, industrial intermediaries, services, toothpaste, soap, and hair oil are all 18%.
* Luxury goods are subject to a 28% tax.
Documents Required for Online GST registration
The list of documents required for registration of GST for various business are as follows:
* PAN Card and address proof of proprietor
* PAN Card of LLP
* LLP Agreement
* Partners’ names and address proof
Private Limited Company
* Certificate of Incorporation
* PAN Card of Company
* Articles of Association, AOA
* Memorandum of Association, MOA
* Resolution signed by board members
* Identity and address proof of directors
* Digital Signature
The following can be shown as proof of address of a director:-
*Voter Identity Card
*Telephone or Electricity Bill
*Bank Account Statement
Including what serves as identification, A PAN card or an Aadhar card can be used as identification. Any director may present their voter identification card, passport, telephone bill, power bill, and telephone bill as evidence of address.
The GST officer will issue the Online GST registration and GSTIN after reviewing the GST application and other required papers. Please be advised that the certificate will not be printed on paper and that you can get a copy of your GST registration certificate from the GST Portal.