What is GST Registration?

Goods and Service Tax is a destination based tax which is imposed on every value addition on made at every stage right from manufacture up to final consumption. As GST is levied on every stage, the taxpayer can avail input tax credit of the GST paid on the previous stage while computing their respective tax liability. This helps in eliminating the element of double taxation.

Dual GST is implemented in India

When we say dual GST, it does not mean double taxation. It simply means that Central and State government simultaneously levy GST on a common tax base.

Dual GST is required keeping in mind the requirement of fiscal federalism under Indian Constitution. As Central as well as State government have powers to levy and collect taxes. Government at both levels has distinct set of responsibilities and in the process of doing that taxes constitute as the main source of income.

GST Registration Online Procedure

Registration under GST is state specific. This means that if a single person is operating his business in more than one state and has a place of business in both states then he is required to get two separate registrations in both places.

GST registration online an be done by following these simple:

STEP 1: To initiate the GST registration process Create a login on the GST portal to initiate the GST registration process. To initiate a unique PAN and contact details are required. After filling in the required information and verification through Part 1 GST REG-01 a Temporary Reference Number (TRN) will be generated.

STEP 2: Once the the TRN is successfully generated, the applicant is required to upload all the required documents in Part 2 of GST REG-01. After final submission of the form an Application Reference Number (ARN) is generated. Using this ARN one can track the application status.

STEP 3: In case any deficiency is found in the application, then it is communicated to the applicant in FORM GST REG-04.

STEP 4: After due verification if the officer is satisfied, then a certificate of registration in FORM GST REG-06.

Document Requirement for Online GST Registration

From GST Registration

  • PAN of Applicant
  • Aadhaar Card or any other ID proof of the applicant
  • A passport Size photograph
  • Bank Statement or Canceled Cheque
  • For Registered office
  • If the property is owned, then latest Electricity bill, or
  • In Case of Rented property – Rent agreement and Electricity bill(Latest), or NOC from owner, in any other case.

If the applicant is a body corporate, then following documents will also be required:

  • Photograph, PAN and ID proof of all the Partners/ Directors.
  • Incorporation Document of such body corporate.
  • Details of Authorized signatory.

Impact of GST in Indian Tax Scenario

At the time of GST implementation many have wondered exactly how will GST benefit the Indian Economy. But, in reality it is a very significant step in the processes of revolutionizing the Indian indirect structure. It has amalgamated a number of central and state level indirect taxes, which has simplified the process of setting off of Input tax credit.

GST Is considered as the biggest tax reform in India

Introduction of Goods and Service Tax is a much appreciated step. The benefits to the economy are multi-fold. Following are some of such benefits:

  • It will unify India’s USD 2 trillion economy and 1.3 billion taxpayers into a common market.
  • It will remove multiplicity of taxes by combining them all into one and thus eliminating the cascading effect of various taxes.
  • It will also promote transparency in the taxation process thus it will also deal with the problem of black money and corruption head on.
  • Under GST Exports are zero rated and as GST is a destination based tax imports will be covered under its ambit. Thus this will make domestic products more competitive in the domestic as well as in international markets.
  • It will expand the taxpayer base and as a result the revenue of the government.

GST Implementation – Not a Smooth Process

Despite GST being a much appreciated step. After its implementation many issues have been identified in the system. Following are some of those challenges identified after its implementation:

  • The taxpayers were unprepared for this major change. GST required them to alter their book keeping, invoicing etc. and a majority of taxpayers were unfamiliar with the process to be followed.
  • No Clarity regarding GST Provisions. It was not just the unpreparedness on the part of the taxpayers, they were not even aware of the relevant rules and regulations of GST laws.
  • Requirement of Skilled resources was a major part of GST implementation, as many traders are unaware of the technical part of it. Implementation process required guidance of skilled professionals which was something small scale traders were not prepared for.
  • Multiple compliances are required to be done once you are registered under GST. There are number of returns required to be filed monthly, quarterly and yearly basis depending upon the nature of registration.

Frequently Asked Questions on GST

This simply means that the tax would accrue to that state authority under whose jurisdiction where place of supply is located i.e. place of consumption of goods.

Following items are not covered under the purview of GST:

  • Alcohol for human consumption,
  • Petroleum Products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel &
  • Electricity.

Such item will continue to be regulated by previous taxation system of VAT & Central Excise.

NO, GST registration is not mandatory for all the traders. However, Section 24 of CGST Act specifies a list of suppliers who are mandatorily required to be registered under GST, they are:

  • Anyone making inter-State taxable supply.
  • Casual taxable persons
  • Taxpayer who is required to pay tax under reverse charge
  • Non-resident taxable persons
  • Taxpayer required to deduct tax under section 37
  • Anyone supplying goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise
  • Input service distributor
  • Anyone supplying goods and/or services, other than branded services, through electronic commerce operator
  • Every E-commerce operator

Exports are zero rated supplies under GST. No tax payment is done in case of exports of goods or services.

Yes, ITC can be available and same will be available as refund to the exporters.

If the taxpayer is affecting any interstate supplies then it cannot register under composition scheme.

Return submission helps in many ways, like:

  • Mode for transfer of information to tax authorities
  • Compliance verification is ensured
  • Computation of tax liabilities of the
  • For availing ITC
  • Helps anti-evasion programs and audit programs of tax administration.

Every registered taxpayer is required to file returns. Even in case of no transactions, nil return is to be filed.

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