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Goods and Service Tax (GST) is an indirect tax (or consumption tax) levied all across our nation, on the sale of goods and services. GST is levied at every stride in the production process. It is refunded to the producers, dealers, wholesalers, and retailers, but not to the final consumer.
0%, 5%, 12%, 18% and 28% are the five slab rates for collection of tax on Goods and Services. Certain products such as Petroleum products, alcoholic drinks, electricity, and real estate are taxed separately by the individual state governments. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition, a cess of 22% or other rates on top of 28% GST applies on a few items like aerated drinks, luxury cars, and tobacco products. Pre-GST, the statutory tax rate for most goods was about 26.5%, Post GST most goods are expected to be in the 18% tax range.
The act was enacted on July 1, 2017, through the implementation of One Hundred and First Amendment (101st) of the Constitution. The tax has replaced the existing taxes levied by the central and state governments which had multiple cascading effects. The rules, regulations and the tax rates are governed by the GST Council which made-up of finance minister of center and all the states. GST simplified a few of indirect taxes with a unified tax and is therefore expected to dramatically reshape the country's 2.4 trillion-dollar economy.Trucks travel time in interstate movement dropped by 20%, because of no interstate check posts.
In our country, 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 applicable all across the nation. 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 i.e. a Unified Indirect tax reform for the people.
It is basically levied on the sale of goods and services. Now GST is the only indirect tax charged on the sale of goods and services on its value addition replacing various other previously existing indirect tax laws in the nation.
GST is a multi-stage and destination-based tax law which is levied at every point of sale of goods and services. Central GST (CGST) and State GST (SGST) is charged in case of transactions occurring intra – state while in case of the interstate, Integrated GST (IGST) is charged.
The production of goods and services goes through many stages from manufacturer to final sale to the customer. Thus, GST is levied at each stage, making it the multi-stage tax. GST is charged only to the value added at each stage by the seller. Also, GST is levied at the point of consumption, hence it is destination based. Get your GST Registration in India with help of Company Vakil Experts.
Mumbai is the cosmopolitan city located on the western coast in the State of Maharashtra. Marathi is the major language used, along with Hindi and English. Bombay’s cuisine is world famous. This city is the largest of all the cities in our country. It has provided employment and shelter to millions of families. The headquarters of some of the national financial institution like the Reserve Bank i.e RBI, the Bombay Stock Exchange, the National Stock Exchange of the country, SEBI, etc. are located here. Besides, the tourist spots consist of the Juhu Beach, Juhu Chaupati, Siddhi Vinayak Mandir, Haji Ali Dargah and many more.
At Company Vakil, you may avail services to get your business registered in Mumbai under the GST Law and get your Goods and Services an Identification Number.
Experts of Company Vakil guide you on its applicability and guidelines to be followed under GST for the business. GST registration process in Mumbai is online through a Central Government portal. Following is the process for GST registration in Mumbai:
GST Registration is lengthy and time consuming 11 step process which involves filling in various details, submitting documents and scanned certificates.
Company Vakil charges a nominal fee at stated above for GST Registration. You can opt for the expert advice from Company Vakil where experts will be there with you to assist you at each step.
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.
All the documents are required in scanned format only. You can attach the document in the form after payment or email it to us at email@example.com. Feel free to get in touch for any query.
Following are the necessary documents required to be submitted for offline/ online GST registration process in Mumbai:
Yes, VAT & Service Tax Registrations have been merged into GST i.e. Goods & Service Tax Registration. Migration from these Old Tax provisions to GST has to be done as per Law.
GST is Goods and Service Tax applicable all across the nation. It’s a Unified Indirect Tax Provision that was made applicable on 1st July 2017 and almost every kind of Indirect Tax i.e. Vat, Service Tax, and Excise has been replaced to only One Tax Provision – GST.
GST Registration in Mumbai is needed by every business exceeding the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs in case of North Eastern and the Hill States), any business registered under pre-GST Laws (i.e. VAT, Service Tax and Excise) and apart from these there are some special cases too.
Special Cases for GST Registration in Mumbai are as follows: -
1. Any business registered under Pre-GST Laws i.e. Vat, Excise or Service Tax
2. A Casual Taxable Person
3. Taxpayers under the Reverse Charge Mechanism
4. Online e-commerce Operators/Aggregators like Amazon, Flipkart etc.
5. People who are Agents of a Supplier
6. People Supplying through an E-commerce Operator / Aggregator
7. Non – Resident Taxable Person
8. Input Service Distributors
9. When a person supplies online information and database access or retrieval service from a place outside of the country to person in the country, other than a registered taxable person.
10. Anyone doing a business that involves inter-state Supplies of Goods & Services [As per the new Amendment Service Providers doing Inter-state Supply of Service is exempted from GST Registration till their Annual turnover doesn’t Reach the threshold of Rs. 20 Lakhs [10 Lakhs in the Special States & 20 Lakhs for Jammu & Kashmir)]
GSTIN is a unique Goods and Service Tax Identification Number and once a business is properly registered under the same, it receives a unique GSTIN.
Yes, there are penalties for not registering under GST. If a tax offender is not paying GST or is doing lesser payment than the actual amount (due to genuine errors), has to pay the penalty of 10% of the tax amount due and subject to a minimum of Rs. 10,000. If it’s done deliberately by the offender, the penalty would be of 100% of tax amount due.