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  • What is GST Registration?

    Launched on April 1, 2017, the Goods & Services Tax (GST) applies to all Indian service providers (including freelancers), traders and manufacturers, once their supply turnover crosses Rs. 20 lakh. The GST is an all-in-one tax that subsumes a variety of state (VAT, Entertainment Tax, Luxury Tax, Octroi) and central taxes (CST, Service Tax, Excise Duty). GST is to be charged at every step of the supply chain, with complete set-off benefits available. The procedure for GST is completely online and requires no manual intervention. There will also be a composition scheme under GST for businesses with a supply turnover of less than Rs. 1.5 crore.
    GST is a consolidated tax, this means that both central and state taxes have been merged together. A feature of the GST is that the whole country will have one uniform tax rate. Earlier, this was not the case.
    In its current form, products and services have different rates of GST. For example the GST charged for eating at a restaurant is 5%, while the GST on services is capped at 18%. The law also states that for certain businesses, a GST registration is mandatory. Failing to comply with registering for a GST can attract huge penalties and fines under the GST.

  • Who Needs a GST Registration?

    Every business or corporation that are involved in the buying and selling and good of services have to register for GST. It is mandatory for businesses whose turnover is more than Rs. 20 lakhs annually to register for a GST. For the North East states, the prescribed amount is Rs.10 lakhs.
    All persons who make interstate outward supplies of goods have to register for a GST too. The same applies to people making taxable supplies on behalf of other taxable persons, example Agents and Brokers.

  • GST Registration Process?

    In its current form, the procedure for registering a GST is as follows.

     The person who is registering first has to submit his email address, his PAN card details and, mobile phone number in Part A of the Form which is labelled GST REG–01 on the GSTN portal or through a Facilitation centre (to be notified by the commissioner or the board). .

     The GST portal verifies the submitted details like the PAN, mobile phone number and the E-mail address, the latter of which are verified using the One Time Passwords (OTPs). After completion of the verification process, yan application reference number is sent to the registered phone number and Email address. You are expected to acknowledge the same through the GST REG-02 form on the portal.

      Next step is to fill up Part- B of the GST REG-01 form and mention the application reference number which has been received. This is to be submitted the after attaching all the necessary documents.

     In case any information is missing or any other extra information is needed then the GST REG-03 will be sent. One has to reply to this through the GST REG-04 form with all the additional information within seven working days of receiving the GST REG-03.

     After all the required data has been provided through the above mentioned forms, then the GST REG-06 is sent, this contains the registration certificate made for the principal place of business and other additional places of business will be sent. If there are several different business verticals within a single state, then, one has to file different and separate applications under GST REG-01 for each individual vertical..

  • Eligibility for GST Registration

    The following taxable group are eligible for GST Registration:

    • Persons who are required to pay tax under Reverse Charge.
    • Persons who are required to deduct tax at source.
    • Non-resident Taxable person (No fixed place in India).
    • Casual Taxable person (No fixed place where GST is applicable).
    • All E-commerce Operator (e.g. Flipkart, Amazon).
    • All Agents of a supplier.
    • Persons who supply goods or services through E-commerce Operator.
    • Input Service Distributor.
    • An aggregator who supplies services under his brand name.
    • Any Specialized Agency of the UN or any Multilateral Financial Institution.
    • Persons making any Inter-State taxable supply (e.g. from Delhi to Maharashtra).
  • What is GSTIN?

    GSTIN is a unique identification number given to each GST tax payer. To verify a GSTIN number a person who has a GST number can log onto the GST portal.
    In GST, each taxpayer is assigned a state wise PAN like 15 digit number. The first two digits of the GSTIN is the state code, for example Delhi has the code 07. This means that every GST tax payer from Delhi will have a GSTIN number that begins with the number 07. The following 10 digits is the PAN card number of the taxpayer. The 13th number is assigned based on number of registrations within a state while the 14th is Z by default. The last digit is the used for check code, so it is always an alphabet.

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