The long-awaited goods and services tax is a reality now, which subsumes most of the indirect taxes in it. While tax base will increase the complication of compliance is set to reduce. Now the tax is not on manufacturing, sale or provision of service but is on supply. The system of GST is such where the credit of the GST paid on Inward Supply can be set off towards the GST on outward supply where the chain of tax credit needs to remain intact. Under the new tax regime, all persons involved in the supply of goods or services are required to obtain registration of GST. Those who are not registered under GST shall not be allowed to collect GST from customers or claim input tax credit (ITC) on inward supply. GST Council has prescribed 20 Lakhs of turnover to be the threshold limit for registration under GST. However, for north-eastern states, it is 10 Lakhs. The registration must be applied within 30 days of reaching the threshold limit.
Advantages of GST
One Nation One Tax
GST shall be the only tax in the entire supply chain of goods or services thus shall subsume various taxes which was being levied since independence like Central Sales Tax, Additional Customs Duty, Purchase Tax, Luxury Tax, etc. this shall eventually result in easy tax management.
Lower Taxes ( NO tax on Tax)
In the previous indirect tax regime, though through reforms an effort was made to remove a tax on tax and VAT was introduced, however, there exist cases where a tax was imposed on tax. For example, vat was applied even on excise duty. The GST system ensures continuous flow of credit in the system
Same Tax Rate all over India
In the erstwhile tax system, the vat rates differ from state to state, as a result the same product was having the different price for consumer due to different indirect tax being passed on to the consumer. However, under GST the tax rates shall be same across the supply chain.
PAN card of individual
ID proof and address proof of Individual
Passport size Photograph of applicant
Bank Details - Copy of cancelled cheque or first page of Pass Book or first page of recent bank statement
Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc in the name of applicant or in case the premises is rented, Rent
Any other license obtained from other department (PT, IEC, shop & establishment etc)
List of goods or services along with HSN Code or SAC Code.
Digital signature of applicant or Aadhar number should be linked with mobile number to get OTP
Similarly, the HUF and Individual Coparcener of the family have different PAN Numbers. Theturnover of karta as a karta of HUF will not be aggregated as they will have different PAN Numbers.
VOLUNTARY REGISTRATION: A person can obtain registration of GST even if a person is not require to get registered under GST as the turnover of is less that the threshold limit. For example, if a person is in Bhopal is having a turnover of just Rs. 6,00,000 still he can enrol under GST on voluntary basis.
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