GST Registration in India

ONLINE GST REGISTRATION IN INDIA

In India, we as a citizen have to pay two types of taxes i.e. Direct tax and Indirect tax. Goods and Services Tax (GST) is a type of Indirect tax which has replaced many other indirect taxes in India. The Goods and services tax act was passed by the parliament on March 29th, In India, we as a citizen have to pay two types of taxes i.e. Direct tax and Indirect tax. Goods and Services Tax is an of Indirect tax which has replaced many other indirect taxes in India. The Goods and services tax act was passed by the parliament on March 29th, 2017 which came into effect on July 1st, 2017. In the year 2000, a committee was set up to draft GST law and it took its final form in 2017, therefore GST took 17 years to come into its real application in India.

It is basically levied on the sale of goods and services and now it is the only tax charged replacing various other previously existing indirect tax laws in India.

GST is a multi - stage and destination-based tax law, which is levied at every point of sale of goods and services. Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) is charged in case of transactions occurring intra – state while in case of inter – state, Integrated Goods and Services Tax (IGST) is charged.

The production of goods and services goes through many stages from manufacturer to final sale to the customer. Thus, it is levied at each stage, making it the multi – stage tax. It is charged only to the value added at each stage by the seller. It is levied at the point of consumption; hence it is destination based. Get GST Registration in India with help of Company Vakil Expert Lawyers, CA’s and CS at most affordable prices.

Evolution of GST in India

The history of goods and services tax can be traced all the way back to year 2000 wherein a committee to draft the GST law was setup by late prime minister Atal Bihari Vajpayee. The GST timeline is given as under:

• 2000 – committee to draft GST law by PM Atal Bihari Vajpayee
• 2004 – improvement in tax structure through GST proposed by task force
• 2006 – introduction of GST proposed by finance minister from April 1, 2010
• 2007 – central sales tax decided to be phased out, rates slashed from 4% to 3%
• 2008 - dual GST structure finalized by EC, having separate levy and legislation
• 2010 – computerization of commercial taxes started but GST implementation got postponed
• 2011 – Constitution Amendment Bill passed to bring GST law in force
• 2012 - Clause 279B stalls discussion over GST bill by standing committee
• 2013 - Standing Committee files its reports on goods and service tax registration in India
• 2014 – Re-introduction of GST bill in the parliament by finance minister
• 2015 – Bill passed in Lok Sabha but not in Rajya Sabha
• 2016 – GSTN goes live, amendment passed in both houses, President gives assent
• 2017 - Four supplementary GST bills passed by Lok Sabha and later by Rajya Sabha, Final implementation begins July 1, 2017

GST LAW & GST APPLICATION PROCESS EXPLAINED

Gst online registration is considered mandatory for any entity that is involved in purchase and sale of goods and services in India. As one of the biggest tax reforms of the country, this law facilitates the ease of doing business in India at the same time bring more and more businesses under the tax bracket, thereby contributing to the growth of the economy. Through goods and service tax registration in India, Government can more easily track transactions across and within states and put a check on unregulated transactions across the country. It has significantly boosted the tax law compliance in India.

Goods and Service Tax, as the name suggests, is an indirect tax that is levied on the supply of goods and services in India. It has in fact replaced a number of indirect taxes in the country such as VAT, excise duty etc. In simple terms, it is a single indirect tax for the whole country. Before the introduction of GST, indirect taxes such as VAT and excise duty were levied at every stage of the distribution cycle with varying rates which was difficult to regulate. But with Goods and Service Tax registration in India, tracking and regularization became much easier.

Some of the key facets of GST law are that it is a multi-stage, destination-based tax law that will be applicable whenever there is some value addition.

• Multi-stage implies that there are multiple stages in the production to the delivery of a good or service; namely raw material purchase, manufacturing or production, warehousing, sales to the wholesaler, then the retailer and ultimately to the end customer. GST will be applicable at each of the above cases.
• Destination based implies that if the goods manufactured in Punjab are sold in Haryana, the entire tax revenue will go towards the destination state i.e. Haryana which is the point of sale for the end consumer.
• Value addition implies that the manufacturer who purchases raw material transforms and adds value to it produce the good. Similarly, when passed to a warehousing agent who packs and labels the good, value is added. When this good is again sold to the retailer, value addition occurs. At each of these stages, GST will be levied till the final good reaches the end consumer.

The process of how things worked in the pre-GST era can be explained as under:

In the earlier regime, taxes were cascaded, hence the final customer had to pay more since tax was levied on previous stage taxed item.

However, in the current regime, this cascading effect of taxes has been eliminated to benefit the end consumer, as illustrated below:

As it can be observed, there is a significant tax saving of Rs 253 under the current regime. This benefit is directly transferred to the end customer.

Other benefits of getting a GST online registration done from one of the top GST Registration Portals such as Company Vakil are explained below.

Benefits of GST Registration Online in India

• Removal of cascading effect of taxes
• Logistical efficiency improvement
• Reduced complexity and less compliance
• Regulation of unorganized sector
• Composition scheme for the small and medium enterprises
• Increased threshold for registration
• Simple GST online registration procedures via GST Registration Portals
• Well defined treatment of e-commerce transactions

GST SLABS IN INDIA

Apart from items that are exempted from Goods and Services Tax such as jute, eggs, fish, fresh meat, milk, butter milk, chicken, curd, fresh fruits, vegetables, salt, natural honey, bread, printed books, bindi, sindoor, judicial papers, newspapers, colouring books, drawing books, handloom, bangles, horn cores, horn meal, bone meal, palmyra jaggery, cereal grains etc. most other items are placed in four Goods and Services Tax slabs namely 5%, 12%, 18% and 28%. Items in each slab are periodically reviewed by the GST council as per industry and economic norms to take final call on their tax slab. Some of the items in each slab are as under:

5% GST SLAB RATE

Commodities- Milk food for babies, packaged food products like paneer, pizza bread, both postage and revenue stamps, roasted coffee beans, rusk, spices, skimmed milk, domestic LPG, edible oil, fish fillet, first day cover, fertilizers, frozen foods, floor covering, footwear upto Rs 500, hearing aid, apparels upto Rs 1000 etc.

Services- Transport services like railways, economy class air travel, radio taxis and motor cabs, sale of print media advertisement space, tour operator services, small restaurants of turnover up to Rs 50 lakhs.

12% GST SLAB RATE

Commodities – Almonds, apparel above Rs 1000, butter, animal fat sausage, cake servers, ayurvedic medicines, chess and carrom boards, diagnostic kits, forks, knives, fruits, fruit juices, frozen meat, exercise books, ghee, pickle, nuts, sewing machine, tooth powder, tongs, umbrella, spoons, playing cards, work contracts etc.

Services - business class air tickets, hotels, inns and guest houses with tariff ranging from Rs 1000 to Rs 2500.

18% GST SLAB RATE

Commodities – Aluminium furniture, bamboo, cakes, biscuits, branded garments, camera, CCTV, computers, curries, corn flakes, transformers, hair oil, footwear above Rs 500, envelopes, refined sugar, circuits, printers, tampons, toothpaste, steel products, speakers, soups, soaps, weighing machinery, salad seasonings etc.

Services – IT services, telecom services, hotels, inns, guest houses with tariff between Rs 2500 and Rs 5000, AC hotels which serve alcohol.

28% GST SLAB RATE

Commodities – Deodorants, paint, after shave lotions, aerated water, automobile motorbikes, personal aircrafts, hair clippers, pan masala, shavers and shaving creams, washing machine, vacuum cleaner, dyes, dishwashers, water heater, shampoos, waffles, vending machines, tiles, wallpapers etc.

Services – Cinema tickets and entertainment events, five-star hotels, gambling and race clubs, hotels, inns and guest houses having tariff between Rs 5000 upwards

WHAT IS CGST, SGST & IGST?

• CGST means Central Goods and Services tax and SGST means State Goods and Services tax. When there is a transaction that takes place within a state i.e. intra state then CGST & SGST is levied. A transaction where buyer and the seller are located in the same state, seller collects CGST & SGST from the buyer. The Central and the State governments, both agree to combine the charges in an appropriate proportion for sharing the revenue on a sale of goods and services that takes place intra-state but the tax rate should not exceed 14% each.
• IGST means Integrated Goods and Services Tax which is charged on sales that take place between two or more states. This is levied when the location of the buyer and the seller is in different states. When an export or import of goods or services takes place and when the supply of goods or services is done to or by a SEZ unit, the deal is presumed to be Inter-State and IGST is charged. A seller collects IGST from the buyer in case of inter – state transactions. The taxes have been segregated for the fact that both central and state government need to raise funds for their development and offering services and responsibilities.

WHY I NEED TO REGISTER FOR GST IN INDIA?

• A person carrying out taxable activities in India need to register for Goods and Services Tax.
• Anyone who performs business in any part of India needs GST Registration online via a GST Registration Portal.
• Any person who is engaged in trade and commerce activities in India are required to have a GST Registration in India.
• Any firm, company, individual, LLP government company, etc. are under obligation to register under law.
• GST registration Online is necessary to continue the commercial activities in India.
• Registration via GST Registration Portal is mandatory for few businesses. If the organization undertakes a business without GST registration in India, it is considered to be a crime under law and heavy penalties are charged on non-registered companies.
• GST - Goods and Services Tax Registration in India takes between 2-6 working days. Company Vakil Experts are always available to help you with your registration via its GST Registration Portal.

What Benefits do I get from GST Online Registration in India?

For a standard registered business opting for Goods and Service Tax registration in India, benefits include:

• Input tax credit facilities
• No restrictions regarding inter-state sales

For a composition dealership, benefits are:

• Reduction in tax liability
• More working capital
• Fewer compliances

For business houses with turnover less than 20 lakh per annum voluntarily opting for Goods and Service Tax registration in India via a GST Registration Portal, advantages are:

• Input tax credit facilities
• No restrictions regarding inter-state sales
• Competitive advantage over other businesses
• Access for registering to e-commerce websites

WHO SHOULD GET GST REGISTRATION IN INDIA?

• Person who is already registered under previously established laws (i.e., Excise, VAT, Service Tax etc.) is needed to register for GST.
• If the turnover of the business in a financial year exceeds Rs.20 lakhs (Rs.10 lakhs for North Eastern and hill states), they need get a goods and service certificate.
• In case of transfer of business, the person to who it is transferred will have to register for it.
• Anyone who supplies online information and database access or other services from a place outside of India to the person residing in India, other than a registered taxable person also has to register himself under Goods and Services Tax laws.
• Person driving inter-state supply of goods will be required to register.
• A casual taxable person who irregularly supplies goods or services in a territory where GST is applicable has to register under it.
• Non-Resident taxable person
• Agents of a supplier are also needed to register as per the act.
• People who are paying tax under the reverse charge mechanism will be required to get themselves registered under GST law.
• Supplier of the goods / services which receives tax invoices on receipt of input services and issues tax invoices for the purpose of distributing the credit of CGST / SGST / IGST paid on the said services to the branch with same PAN is required to register for it.
• E-commerce operator or aggregator needs to register for it, if the total sales exceed Rs. 20 lakhs.
• Person who supplies through e-commerce aggregator

GST REGISTRATION ONLINE PROCESS

At Company Vakil you may avail services to get your business registered under The Goods and Services Tax Law and get your Goods and Services Identification Number (GSTIN).
Taxation Experts of Company Vakil can guide you on its applicability and guidelines to be followed under GST Registration Online for your business. All its process is online through a Central Govt. of India’s GST registration portal. Following is the process for GST registration Process in India:

• Applicant will have to submit his PAN number, valid email id and phone number in the PART – A of the GST REG – 01 form with company Vakil.
• After submitting the details, verification of PAN, Phone Number and Email id is done and the application reference number is sent to the registered mobile number and email id. In the GST REG – 02 form, an acknowledgement is issued electronically.
• After filing the required details and reference number in PART – B of GST REG – 01 form, applicant will have to submit the form.
• For additional information GST REG – 02 form is required to be filled further.
• After this, GST REG – 04 form needs to be submitted in 7 working days with required information after receiving GST REG – 03 form.
• In the form of GST REG – 06, the registration certificate will be provided.

FEES FOR GST ONLINE REGISTRATION IN INDIA

GST Registration Online in India is lengthy and time consuming 11 step process which involves filling various details, submitting documents and scanned certificates.

Company Vakil charges a nominal fee as stated above to register your GST. Team of company Vakil Taxations experts, CA’s and CS are always at your disposal for any queries.

PENALTY FOR NOT REGISTERING UNDER GST ONLINE REGISTRATION

Those who are not registered under GST law are subject to the penalty of 10% of the total of the tax amount to a minimum of Rs.10, 000.

The penalty will be charged at 100% of the tax amount due if the lawbreaker has purposely evaded from paying taxes.