What Is The Goods And Services Tax?

GST or Goods and Services Tax was first adopted in the budget presentation delivered on 28 Feb 2006. It laid the groundwork for a total revamp of India’s indirect taxation regime. Finally enacted on 1st July 2017 as Goods and Services Tax Act, the indirect tax structure, therefore, ran through a series of modifications ever since introduction. With this tax policy, GST substituted several indirect taxes imposed on various products and services. The legislative body overseeing all reforms and adjustments to this levy is the Central Board of Indirect Taxes and Customs (CBIC).

Benefits Of Goods And Services Tax

Any individual who registers for GST is subjected to the following benefits

  • Recognized as a certified and a legal supplier of products and services
  • Proper reporting of tax collected on input products or services that may be used for the paying of the GST owing to the sale of products or services, or perhaps both, by the company.
  • Legally allowed to take tax from their buyers and to pay the taxes on products or services provided to buyers or receivers.

GST Registration Process

The GST registration procedure will be conducted online via a platform managed by the government of India. The king. This will also nominate GSPs (GST Suvidha Providers) to assist companies in the enrollment process.

  • The person will be asked to provide his PAN, cellphone number, and e-mail address in Form GST REG–01(Part A) on the GSTN website or via the Facilitation Center.
  • After the PAN number has been verified/authenticated on the GST Database, the contact number and e-mail address are authenticated with an OTP(One Time Password). Once the authentication has been completed, the candidates will obtain the ARN (application reference number) on the registered number and by mail. The candidate should be notified digitally in FORM GST REG-02.
  • Candidates must complete from GST REG-01 (Part B) and indicate the reference number of the submission. After affixing the necessary documentation, the form will then be filed.
  • If further details are needed, it will provide form GST REG-03. The candidate must answer the information needed in Form GST REG-04 in under 7 business days from the date of invoice of Form GST REG-03.
  • If you have given all the necessary details through Form GST REG-01 or Form GST REG-04, the candidates will be provided the certificate of registration in Form GST REG – 06 for the main headquarters and for each alternate place of business. If an individual has various business sectors inside a State, he may submit an independent/separate application to register in the form GST REG-01 for every business location. If the information provided is not sufficient, the application form will be rejected by using form GST REG-05. The individual who is needed to deduct TDS or obtain TCS should send an application for registration as in form GST REG – 07. If he is no longer entitled to subtract or obtain taxes then the agent can cancel the registration and announce the cancelation.

What Are The Documents Required For Applying FOr GST?

Mentioned below are the documents that you require in order to apply for GST.

  • Company’s PAN card
  • Proof of constitution such as a certificate of incorporation, partnership agreement, Articles of Association (AOA)/Memorandum of Association (MOA).
  • A canceled check from your bank account displaying the account owner identity, MICR code, IFSC code, and information of the financial institution.
  • Information and evidence of the location of the business, such as lease contract or power bills.
  • Registered signatories such as List of collaborators with their address and identity proof in the context of a business relationship or List of executives with their address and identity proof in the situation of a business.

GST Rates

In regard to the GST rates, the new taxation scheme has been a year old and slab analysis & re-calibration occurs over and over again. Nevertheless, there are usually 6 GST slabs: 0.25%, 3 % , 5%, 12%, 18% and 28%, respectively. Noticeably, underneath the new regime several products that were subject to taxation earlier are kept tax-free now. Under the GST rules, you can search the tax information on different products and services on the official GST website.