| |
|
|
The Goods and Services Tax (GST) is an indirect tax used in India on the supply of goods and services. It is a comprehensive, multi-stage, and destination-based tax that has replaced many indirect taxes previously levied by the Central and State Governments.
FEATURES OF GST:
- PAN based registration
- Completely Online and Centralized Process
- Removal of cascading effect of taxes
- Seamless input credit chain
- Destination-Based Consumption Tax
REGISTRATION UNDER GST- APPLICABILITY
Voluntary Registration
Any person, on his choice, may opt to register under GST, voluntarily. It allows the business to legally issue tax invoices, take Input Tax Credit (ITC) on their purchases, and make inter-state sales of goods without restriction. Once registered, all provisions and compliance requirements of GST become applicable.
*Simplified Registration (for Small B2B Suppliers):
Suppliers with monthly B2B output-tax liability below 2.5 Lakhs per month, may get their GST Registration certificate within 3 days from the date of application.
Mandatory Registration Based on Aggregate Annual Turnover (AATO)
For Exclusive Supply of Goods, if AATO exceeds 40 Lakhs in other states, and exceeds 20 Lakhs in specified special category states that are Arunachal Pradesh, Meghalaya, Sikkim, Nagaland, Tripura, Mizoram, Manipur, Uttarakhand, Telangana, Puducherry.
For Exclusive or Mixed Supply of Services, if AATO exceeds 20 Lakhs in other states, and exceeds 10 Lakhs in specified special category states.
Mandatory Registration (Irrespective of Turnover)
Certain business activities require mandatory GST registration, even if their turnover is below the specified threshold limits:
Inter-State Suppliers of Goods,
E-Commerce Operators,
Suppliers via E-Commerce Operators (ECO),
Casual Taxable Persons (CTP) / Non-Resident Taxable Persons (NRTP),
Reverse Charge Mechanism,
Input Service Distributor (ISD)
ADVANTAGES OF GST REGISTRATION:
- Enhanced Business Credibility and Market Access
- Simplified and Standardized Online Compliance
- Legal Authority to Collect Tax and Pass on ITC
- Seamless Inter-State Business Operations
- Legal recognition as supplier of goods or services.
UNDERSTANDING GSTIN (GST IDENTIFICATION NUMBER):
The first 2 digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the next two digits are for entity code, and the last digit is check sum number. A PAN based legal entity would have one GSTIN per State, that means a business entity having its branches in multiple States will have to take separate State wise registration for the branches in different States.
|
|
|
|
|