GST Registration and Compliances

GST refers to the Goods and Services Tax in India. GST was applicable since 1st July ,2017 .It was introduced to abolish many indirect taxes or tax on tax and to have one tax one nation. GST covers all the previous various indirect taxes levied on goods and services such as VAT, Service tax, Excise duty, etc. A complete reformation was observed in Indian’s Indirect Tax System after implementing GST.

The Businesses that gets registered under GST, are provided a unique Goods and Services Tax Identification Number (GSTIN). If a person owns businesses in more than one State, than, he is required to get Multiple GST registrations. GST is a Pan based Registration. The 4 main GST tax slab rates are 5%, 12%, 18%, 28% depending upon the nature of Goods and Service.

Who should get GST Registration?

  • To eradicate the previous concept of taxes like Excise, VAT, Service tax , etc came into effect and all the previous Indirect taxes got clubbed under one tax Structure named ‘GST”. So, all the persons paying indirect taxes previously are required to get themselves registered under GST.
  • The businesses paying tax under Reverse Charge Mechanism
  • All the businesses supplying goods whose turnover exceeds Rs.40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is Rs.20 lakh if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand.
  • Any Casual taxable person- who supplies goods or services to the state where GST is applicable but don’t have a fixed place of business.
  • Non- Resident taxable person.
  • Agents of a supplier & Input service distributor
  • Any person carrying Inter-state supply.
  • Any E-commerce aggregator.
  • Any Businesses who voluntarily wishes to get registered under GST can register themselves and also an application needs to be made for surrendering GST registrations anytime they wish to.

Benefits under GST Registration

  • No more Tax on Tax :- The cascading effect of Tax on Tax is reduced and only one tax is levied and also input tax credit benefit can be availed.
  • High Threshold Limit :- Earlier the threshold limit for VAT payment for any business, having a turnover of more than 5 lakhs rupees where required to pay VAT and now the limit has been increased to 20 lakh rupees. This exempts many tax payers and service providers.
  • Composition scheme for small businesses :- The small businesses are given a benefit of tax under the Composition Scheme which reduce the tax burden and other compliances on small dealers.
  • Lessor no. of Compliance :- Earlier for every Tax Structure, filling of Tax return was messier as every Tax Structure had different Tax filling compliance required to be done making it complex. However, Under GST, one Tax return filing needs to be done.
  • Easy Trading for E-commerce operators :- Earlier before GST was levied, online business service provider faced multiple issues during the transportation of Goods from one state to another. As VAT was levied in certain States and the dealer must have VAT registration to supply goods Inter-state so many compliances was required to be done. All these confusion have been removed under GST.

After GST registration compliances

  • After you get your GST registration done, you are now required to pay taxes as per the goods and services you provide. If the taxes are not paid within the time limit specified, the compliance score gets affected. We here at make the process simple for you by making tax payments on your behalf on regular basis thus saving your business image.
  • Generating E- invoices of GST payments.
  • Filling of the returns on timely basis to claim benefits under the GST Act.
  • The tax payments and filling of tax returns records are been maintained for a period of 8 years.
  • The annual GST return filling.
  • The GST tax payments are required to get an Audit done on crossing a threshold limit.

Documents required :-

  • PAN card of Business
  • Adhaar card
  • Address proof of promoter
  • Business registration document
  • Business location proof

In the Coming Years, the businesses holding GST registrations will get maximum benefits under Udyam Registration. So the businesses who want to get maximum benefits under Udyam Registration shall get themselves register under GST even though they do not come under the Minimum Revenue Bracket.