● Simple process for new GST registration, application status tracking, and filing for clarifications
● Tailored services for GST needs of citizens, eCommerce sellers, and government offices
● All GST needs Met: CA-assisted online document submission, GST filing, GSTIN procurement.
● Assistance for GST e-invoicing, ledger, and invoice maintenance
The Central Goods and Services Tax Act of 2017, implemented to streamline taxation and curb tax evasion, establishes the framework for the Goods and Services Tax (GST) levied on intra-state and inter-state supplies of goods and services in India.
The Goods and Services Tax, or GST, is a multi-stage, destination-based indirect tax system. It serves as a replacement for other collective levies and VAT. The process of registering a business under the GST Act of 2017 is known as "GST registration." A 15-digit GSTIN is given after registration. This facilitates the sharing of all transaction-related processes and data with the relevant authorities. GST registration is required if yearly income surpasses ₹40 lakhs for goods and ₹20 lakhs for services.
Input tax credit (ITC) is another incentive available to registered firms on purchases.
1. Legal Obligation: Required by law for businesses above a certain turnover threshold.
2. Tax Compliance: Ensures businesses collect and remit GST, fostering tax transparency.
3. Input Tax Credit (ITC): Allows businesses to offset GST paid on purchases against GST collected on sales, reducing tax liability.
4. Credibility: Signals legitimacy and compliance, enhancing business reputation.
5. Interstate Transactions: Facilitates seamless movement of goods/services across state borders.
6. Government Contracts: Often a prerequisite for participating in government tenders and contracts.
7. Composition Scheme: Enables access to beneficial schemes, such as lower tax rates for small businesses.
8. E-commerce Compliance: Necessary for compliance with tax laws governing online transactions.
1. Input Tax Credit (ITC): Registered businesses can claim credit for the GST paid on inputs, reducing the overall tax burden.
2. Legal Compliance: Ensures compliance with tax laws, avoiding penalties and legal issues.
3. Business Credibility: Enhances the credibility and trustworthiness of the business, especially for customers and suppliers.
4. Interstate Trade: Facilitates interstate trade by eliminating barriers and ensuring uniform tax treatment across states.
5. Access to Government Contracts: Opens opportunities for bidding on government tenders and contracts, often requiring GST registration.
6. Availment of Tax Schemes: Allows businesses to benefit from various tax schemes and incentives offered by the government.
7. Competitive Advantage: Provides a competitive edge, especially in industries where GST registration is seen as a mark of professionalism and compliance.
8. Streamlined Processes: Simplifies tax compliance processes, leading to efficiency gains and cost savings for the business.
The GST compliance rating is a measure used by tax authorities to assess how well businesses comply with Goods and Services Tax regulations. It's typically based on factors such as timely filing of returns, accuracy of tax payments, and adherence to GST rules and procedures. A high compliance rating indicates that a business is fulfilling its tax obligations effectively, while a low rating may trigger closer scrutiny or penalties. This rating system helps promote tax transparency, accountability, and fair competition among businesses operating within the GST framework.
The following documents are required for the GST registration process.
1. Applicant's PAN
2. Aadhaar card
3. Evidence of business registration or Incorporation certificate
4. Promoters/Director's Identity and Address proof with Photographs
5. Business location Address proof
6. Bank Account statement or Canceled cheque
7. Digital Signature
8. Letter of Authorisation or Board Resolution for Authorised Signatory
GST registration is mandatory for businesses that have a turnover of ₹40 lakhs for the sale of goods in normal category states and ₹20 lakhs for the sale of goods in special category states.
Companies must register for GST and pay taxes on their taxable goods and services if their annual revenue exceeds ₹40 lakhs for goods sales or ₹20 lakhs for services. Businesses with yearly income under ₹40 lakhs are free to register for GST, while it is not required. By doing this, they are eligible to receive input tax credit benefits.Notably, states that come under the special category have a different minimum threshold—₹10 lakhs for services and ₹20 lakhs for goods— that must be met.
Irrespective of the threshold limit GST registration is mandatory for the following:
1. Individuals engaging in interstate taxable supply (with a threshold of ₹20 lakhs/₹10 lakhs applicable for interstate supply of taxable services, specified handicraft goods, and handmade goods)
2. Casual taxable persons involved in taxable supply
3. Individuals obligated to pay tax under reverse charge for received inward supplies
4. Non-resident taxable persons engaged in taxable supply
5. E-commerce entities (inclusive of every e-commerce operator and individuals supplying goods and/or services)
6. Individuals required to deduct tax under Section 51
7. Input service distributor
8. Individuals making taxable supply of goods or services on behalf of other taxable persons, whether as an agent or otherwise
9. Individuals required to pay tax under Section 9(5)
10. Any other individuals or categories notified by the government.
Irrespective of the threshold limit GST registration is mandatory for the following:
1. Individuals engaging in interstate taxable supply (with a threshold of ₹20 lakhs/₹10 lakhs applicable for interstate supply of taxable services, specified handicraft goods, and handmade goods)
2. Casual taxable persons involved in taxable supply
3. Individuals obligated to pay tax under reverse charge for received inward supplies
4. Non-resident taxable persons engaged in taxable supply
5. E-commerce entities (inclusive of every e-commerce operator and individuals supplying goods and/or services)
6. Individuals required to deduct tax under Section 51
7. Input service distributor
8. Individuals making taxable supply of goods or services on behalf of other taxable persons, whether as an agent or otherwise
9. Individuals required to pay tax under Section 9(5)
10. Any other individuals or categories notified by the government.
1. Central Goods and Services Tax (CGST) applies to the supply of goods and services within a single state
2. State Goods and Services Tax (SGST) is applicable to the sale of goods or services within the confines of a state
3. Integrated Goods and Services Tax (IGST) is imposed on transactions involving goods and services across state boundaries
4. Union Territory Goods and Services Tax (UTGST) is levied on the supply of goods and services in Union Territories such as Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and Chandigarh. UTGST is charged in conjunction with CGST.
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