Float on July 1 2017, the Goods & Services Tax (GST) applies to all Indian service providers, traders and manufacturers. A variation of Central taxes like Service Tax, Excise Duty, CST and state taxes like Entertainment Tax, Luxury Tax, Octroi, VAT are absorbed in one tax. GST is  charged at every step of the supply chain, with full set-off benefits. The plan of action  for GST is entirely online and requires no handbook intervention.

Every product goes through multiple stages along the supply chain, which includes the purchasing of raw materials, manufacturing, sale to the wholesaler, selling to the retailer and then the final sale to the consumer. GST  will be levied on all of these  three Process.

Taxpayers with a turnover of less than Rs.1.5 crore can choose composition scheme to get rid of monotonous GST formalities and pay GST at a fixed rate of turnover.

What are the components of GST?

GST will have 3 tax components, which includes a Central Goods and Services Tax or CGST and a State Goods and Services Tax or SGST where center and state will impose GST on all entities, that is  when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax , to be levied by the centre, i.e. when a transaction happens one state to another.



What is the input tax credit?

Input tax credit lets you reduce your tax you have already paid on inputs and pay the remaining amount at the time of paying tax.

You pay taxes on the purchase when a product is purchased from a registered seller, and when you sell the product, you too collect the tax. With input credit, you can adjust the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance liability of tax, i.e. tax on sale minus tax on the purchase.



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 obligatory  for companies whose turnover is more than Rs.20 lakhs (for supply of services) and Rs. 40 lakhs ( for supply of goods) yearly to register for a GST.

All businesses making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, example Agents and Brokers.

What are the GST tax rates?

Items that are considered basic necessities come under exempt list i.e. they are not taxed.

Household necessities and life-saving drugs etc. are taxed at 5%.

Products like computers and processed food are taxed at 12%.

Hair oil, toothpaste and soaps, capital goods, industrial intermediaries and services are taxed at 18%.

Luxury items are taxed at 28%.



What is a GST Return?

A GST Return is a document containing details of income that is required to be filed as per the law with the tax authorities. A taxpayer has to submit two returns on a monthly basis and one such return annually. All returns have to be filed online. Please note that there is no provision for revising the returns. All invoices for the previous tax period that went unreported must be included in the current month.

A registered dealer has to file GST returns that include: Purchases, Sales, Output, GST  and Input tax credit.

What is GSTIN?

GSTIN is a unique identification number given to each GST taxpayer. To verify a GSTIN number a person who has a GST number can log into the GST portal.



What is the GSTN (Goods and Service Tax Network)?

The Goods and Service Tax Network (or GSTN) is section 8 (non-profit), non-government, private limited company. GSTN is a one-stop solution for all your indirect tax requirements. GSTN is Manage for maintaining Indirect Taxation platform for GST to help you prepare, file, rectify returns and make payments of your indirect tax liabilities.



Mandatory documents for Online GST registration

The list of documents required for registration of GST for various business are as follows:



Proprietorship



PAN Card and address proof of proprietor

LLP



PAN Card of LLP

LLP Agreement

Partners’ names and address proof

Private Limited Company



Certificate of Incorporation

PAN Card of Company

Articles of Association, AOA

Memorandum of Association, MOA

Resolution signed by board members

Identity and address proof of directors

Digital Signature

The following can be shown as proof of address of a director:-



Passport

Voter Identity Card

Aadhar Card

Ration Card

Telephone or Electricity Bill

Driving License

Bank Account Statement

Add what works as identity proof, One can use a PAN Card, Aadhar Card as identity proof. For address proof, any of the director’s can show their voters ID, passport, telephone bill, electricity bill and telephone bill.



Preparation of GST application

One of our GST representatives will collect all the required documents and process the GST application through the iCFO platform.



Application Filing



Once all the documents are collected, the application will be processed and filed. Then immediately the ARN number will be issued.



GST Registration Certificate



The GST Registration certificate and GSTIN will be issued upon verification of GST application and other mandatory documents by the GST officer. Be aware that no hard copies of the certificate will be issued and the GST registration certificate can be downloaded from the GST Portal.



Penalties For Failure To GST Registration



As per the Section 122 of the CGST act, in India, there is a direct penalty for all those taxable persons who fail to register for GST.



Voluntary Registration Under GST (for Companies With A Turnover Below Rs.20 Lakhs)



Any small business with turnover less than 20 lakh can voluntarily register for GST even though it is not compulsory by law. Voluntary GST registration in Jaipur has its own advantages.