Goods and Services Tax (GST) is a comprehensive indirect tax system in India that replaces multiple taxes levied by the Central and State governments. GST is applicable to all businesses that supply goods or services and have an annual turnover exceeding the threshold limit.
The following steps are involved in registering for GST in India:
Obtain a PAN: All businesses that wish to register for GST must have a Permanent Account Number (PAN) issued by the Income Tax Department.
Apply for GSTIN: To register for GST, the business must apply for a Goods and Services Tax Identification Number (GSTIN) by submitting an online application through the GST portal.
Submit the Required Documents: The following documents are required to complete the GST registration process: PAN, Aadhaar number, bank details, and proof of business premises.
Payment of Fees: The business must pay the applicable fees for GST registration, which is based on the type of business and the turnover.
Obtain GST Certificate: Once the application is approved and the fees have been paid, the business will receive a GST certificate, which serves as proof of GST registration.
File GST Returns: Registered businesses must file periodic returns, such as GSTR-1, GSTR-2, and GSTR-3, to report their taxable supplies and pay the applicable GST.
It is important to ensure that all the required documents are in order and accurate to avoid any delays or issues during the GST registration process. Additionally, businesses must keep accurate records of their taxable supplies and GST payments to ensure compliance with the GST regulations.
LIST OF GST rates for goods
The Goods and Services Tax(GST) council headed by Union Finance Minister Arun Jaitley finalized tax rates for all services,expect lottery.Also healthcare,education already exempted from tax.
The multiplicative of tax rates for services will add complexity to the compliance in the GST regime.
The GST council broadly approved GST rates for goods at nil rate,5%,12%,18% and 28% on certain goods.
- GOODS-No tax will be imposed on items like jute,fresh meat,milk,butter milk,natural honey,fresh fruits and vegetables, etc.
- SERVICES- Hotels and lodges with tariff below rs1000,grandfathering services has been exempted under GST.
- GOODS-Packed food items,footwear below 500,cream,branded paneer, frozen vegetables,pizza bread,rusk,kerosene,coal,medicines.
- SERVICES- Transport services(Railways,air transport),small restaurants.
- GOODS-Apparel above rs1000,frozen meat products,butter,cheese,ghee,Ayurvedic medicine,tooth powder,coloring books,cellphone etc
- SERVICES- Non AC hotels,business class air tickets,fertilizer,work contracts
- GOODS-Footwear costing more than rs 500,bidi,biscuits,flavored refined sugar,pasta,cornflakes,James,instant food mixes,mineral water tissues,envelopes,tampons,note books,steel products,camera,speakers.
- SERVICES- AC hotels,telecom services,IT services
- GOODS-Bidis,chewing gum,molasses,chocolate not containing cocoa,waffle, pan masala,paints,deodorants,shaving creams,hair shampoo,dye,sunscreen,weighing machines,washing machines,ATM,vacuum cleaner,automobiles,motorcycles,aircraft for personal use.
- SERVICES- 5-Star hotels,race club betting,cinema.
ADVANTAGES OF GST
- The biggest impact of GST is an economically efficient solution which have to compete with the companies in the unorganized sector
- It reduce the logistic costs and consolidation of warehousing facilities.
- GST will simplify tax administration,improve compliance,eliminate economically distortions in production,trade and consumption.
- GST avoids the “cascading”of taxes,therefore cutting the production cost,and making export more competitive.
- Revenue will get a boost- States and Center will have dual oversight.The number of tax exempt goods will decline.