Online GST Registration
What is Online GST Registration?
Online GST registration is the process of registering for the Goods and Services Tax (GST) through the Internet. Apply online GST registration is simple, quick, and hassle-free. It is mandatory for businesses with a turnover of more than Rs. 20 lakhs to register for GST. This can also be completed through the official GST portal. The Goods and Services Tax. It is an indirect tax in India that mostly replaced other indirect taxes including the services tax, VAT, and excise duty. On March 29, 2017, the Parliament adopted the Goods and Service Tax Act, which went into force on July 1 of the same year. In other words, the Products and Services Tax is applicable to the provision of goods and services (GST). The comprehensive, multi-stage Goods and Services Tax Law, which is based on the destination, applies to all value addition in India. A single domestic indirect tax law, known as GST, applies to the entire nation.
SRV Associates also offers corporate law and compliance services to help businesses with online company registration, and compliance with corporate laws and legal documents. We fully support clients in a meeting legal and regulatory requirements
Features of GST Registration
Principal Features of GST That Applies In contrast to the previous concepts of manufacturing, selling, and providing services, it is now only applied to the “supply” of goods or services. As opposed to the current premise of origin-based taxation, the GST is based on the destination-based consumption taxation principle.
Dual GST: It is one in which both the federal government and the states simultaneously impose taxes on the same base. The GST that the Center will levy is known as Central GST (CGST), while the GST that the States will levy is known as State GST (SGST).
The Integrated Goods & Services Tax (IGST), in addition to any applicable customs charges, would apply to imported goods and services because they are deemed to constitute interstate supplies.
GST Council’s GST rates should be agreed upon: The rates for CGST, SGST, and IGST are determined by agreement between the Center and the States Various Rates: The original GST rates were 5 percent, 12 percent, 16 percent, and 28 percent. The GST Council develops the schedule or list of goods that would be subject to these various slabs.
Objectives of GST Registration
To follow the “One Nation, One Tax” philosophy
Several indirect levies that were in force under the former tax system have been replaced by the GST. The benefit of a single tax is that each state applies the same rate to a specific good or service. Since the central government sets the tax rates and regulations, tax administration is made simpler. Common laws like e-way bills for the transportation of goods and e-invoicing for transaction reporting can be introduced. Taxpayers are not burdened with numerous return forms and deadlines, which improves tax compliance. It is an integrated method for complying with indirect taxes overall.
1. To stop taxes from increasing in a cascading fashion
Eliminating the cascading effect of taxes was one of the main goals of the GST. In the past, taxpayers were unable to offset the tax credits from one tax against another due to disparate indirect tax legislation. For instance, the VAT due during the sale may not be offset by the excise charges paid during manufacture. Taxes began to increase as a result. Only the net value added at each stage of the supply chain is taxed under the GST system. Due to this, input tax credits for both products and services are now flowing smoothly and the cascading effect of taxes has been reduced.
2. To expand the base of taxpayers
In India, the GST has contributed to a larger tax base. Previously, the registration threshold for each tax law varied dependent on turnover. Since it is a combined tax applied on both goods and services, the number of firms that are tax-registered has expanded. A few unorganized sectors have also been brought inside the tax net thanks to the tougher legislation governing input tax credits. Take the Indian construction sector, for instance.
3. A better distribution and logistics system
Multiple pieces of documentation are not required as often for the supply of products under a single indirect tax scheme. Among its many advantages, GST reduces transportation cycle times, enhances supply chains and turnaround times, and promotes warehouse consolidation. The abolition of interstate checkpoints under the GST is most advantageous to the industry in terms of enhancing transit and destination efficiency. In the end, it assists in reducing the high expenses associated with warehousing and logistics.
4. The majority of India’s indirect taxes must be incorporated
Service tax, Value Added Tax (VAT), Central Excise, and other formerly-imposed indirect taxes were charged in India at various points throughout the supply chain. States and the federal government each have their own tax laws. On both products and services, there was no one, centralised tax. It was therefore implemented. The majority of indirect taxes were merged into one under the GST. It has significantly lowered the burden of compliance on taxpayers and facilitated tax administration for the government.
5. Online processes to make doing business easier
In the past, taxpayers had a difficult time dealing with several tax agencies under each tax code. Additionally, even though return filing was done online, the majority of the evaluation and refund processes were done offline. Today, practically all GST procedures are completed online. From registration to return filing to refunds to e-way bill production, everything is accomplished with the stroke of a mouse. It has greatly facilitated taxpayer compliance and added to India’s overall ease of doing business. The government also intends to launch a centralised platform soon for all indirect tax compliance, including the filing of GST returns and electronic way bills and invoices.
6. To encourage market competition and boost demand
Revenues from consumer and indirect taxes have increased as a result of the introduction of GST. Under the previous administration, the cascading impact of taxes led to greater costs for goods in India than on international markets. Even within states, there was an imbalance in purchases in some areas as a result of lower VAT rates. The uniformity of Goods and Services Tax rates has helped to keep prices competitive both inside India and internationally. Consequently, this has increased demand and generated larger income, achieving yet another significant goal.
Apart from this, our team of Chartered Accountants provides online GST filing services, Income Tax Return Filing Services, and GST return filing Services expert financial and accounting services to businesses and individuals across India and beyond.
Types of Goods and Services Tax
The central and state governments would both impose GST at the same time on a single foundation. The following categories apply to the dual GST:
Internal GST (CGST)
– The central government will impose a GST: States and Union Territories with legislatures must levy the State GST (SGST) and Union Territory GST (UTGST). In order to prevent the credit chain from being interrupted, the central government imposes an integrated GST (IGST) on the supply of goods and services between states. Imports of goods and services would be classified as inter-state supplies and as such, in addition to any existing customs charges, be subject to IGST.
X`Tax before Goods and Services Tax: There were numerous indirect taxes imposed by the state and the federal government under the previous indirect tax regime. The Value Added Tax was the most common tax kind that states collected (VAT). There were various laws and rules in each state. The Center levied taxes on commodities sold over state lines. In the case of an interstate sale of goods, CST (Central State Tax) was applicable. In addition to the aforementioned indirect taxes, states and the federal government also imposed local taxes and the entertainment tax. As a result, there was a great deal of state and federal tax overlap.
The following is the list of indirect taxes in the pre-GST regime:
- Central Excise Duty
- State VAT
- Central Sales Tax
- Purchase Tax
- Luxury Tax
- Entertainment Tax
- Entry Tax
- Taxes on advertisements
- Taxes on lotteries, betting, and gambling
Indirect Taxes that still do not come under GST:-
- Stamp Duty
- Electricity Tax
Goods and Services Tax Rates: A Description of Tax Slabs
For all goods and services, the government has proposed a 4-Tier tax structure with 4 slabs of 5%, 12.5%, 18.5%, and 28.5%. Continue reading to find out which products and services fall into certain tax brackets and whether they are tax-free or taxable:
1) Zero percent (No Tax Slab): There is no tax on these items: Natural honey, besan, flour, salt, bread, sindoor, prasad, bindi, stamps, printed books, judicial papers, handloom, bones and horn cores, newspapers, bangles, bone grist, etc.; hoof meal, cereal grains hulled, horn meal, salt-all varieties, palmyra jaggery, kajal, etc
2) A tax slab of 5% : Clothing priced under Rs. 1,000, fish fillet, footwear priced under Rs. 500, packaged food items, skimmed milk powder, cream, branded paneer, coffee, tea, frozen vegetables, spices, rusk, pizza bread, kerosene, coal, sabudana, lifeboats, medications, stents, cashew nut, raisin, cashew nut in shell, ice and snow, insulin, bio gas, kites, postage.
3) Tax Slab of 12 percent
Ayurvedic medicines, bhujia, namkeen, tooth powder, picture books, colouring books, exercise books, and note books, sewing machines, umbrellas, ketchup and sauces, cellphones, diagnostic kits and reagents, fertilisers, fish knives, spoons, forks, cake servers, ladles, skimmers, tongs, corrective lenses, playing cards, carom, ghee, butter, frozen meat products, packaged dry Additionally, services like non-AC hotels, state-run lotteries, and business class airline tickets would be subject to a Goods and Services tax rate of 12 percent.
4) A flat tax rate of 18%: Most products in this price range include footwear costing more than 500 rupees, biscuits (all categories), bidi Patta, flavor-enhanced refined sugar, cornflakes, pasta, preserved vegetables, pastries and cakes, jams, soups, sauces, instant food mixes, ice cream, tissues, mineral water, tampons, envelopes, steel products, printed circuits, notebooks, speakers, and monitors, Kajal pencil sticks, camera, aluminum foil, and weighing.
5) 28% Tax Slab: The following items will be subject to a 28 percent tax: bidis, molasses, chewing gum, waffles and wafers coated in chocolate, chocolate that doesn’t contain cocoa, pan masala, paint, deodorants, aerated water, shaving creams, hair shampoo, aftershave, sunscreen, water heaters, ceramic tiles, weighing scales, dishwashers, ATMs, washing machines, vacuum cleaners, vending machines, shavers, hair clippers, cars.GST
Goods and Services Tax Registration
For some company types, registration is required.
- It is against the law under GST law to operate a business without registering under GST.
- A casual taxpayer, non-resident taxpayer, e-commerce aggregator, agent of a supplier, distributor of input services, etc. must register under GST.
- Additionally, throughout the registration procedure, each GST taxpayer receives a special identifying number called a GSTIN.
• Photographs (passport size)
• Company PAN Card
• Identity proofs like Aadhar Card/Passport/Driving Licence
• Proof of address for your offices
• Bank details via a statement or a canceled cheque or a passbook
• Certificate of Incorporation for Private Ltd Company or LLP or OPC
• Partnership deed for partnership firms
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