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OVERVIEW
GST REGISTRATION
Introducing Goods and Services Tax (GST) has been a significant tax reform in India. The GST has mostly superseded other indirect taxes including excise duty, VAT, and services tax. Based on the Goods and Service Tax Act, which was approved by the Indian Parliament on March 29, 2017, GST became effective on July 1st, 2017. You can use Taxkey to bring your GST registration. Here, we excel in abating the burden of a long-winded registration process. You will receive guidance from our knowledgeable team on quickly obtaining a GSTIN.
WHAT IS GSTIN?
WHAT IS GSTIN?
Entities with a GST registration number are given a GSTIN or Goods and Services Tax Identification Number (GSTIN). GSTIN has a length of 15 characters. Based on the applicant’s PAN and State, a GSTIN is assigned. The State Code is represented by the first two digits of a GST registration number. The next ten numbers represent the applicant’s PAN.
Types of GST Registration
Regular Taxpayer
The taxpayers who are engaged in business in India are eligible for this type of GST registration. Taxpayers who register as regular taxpayers are given an infinite validity date and do not need to make a deposit.
Composition Taxpayer
The person needs to sign up for the GST Composition System in order to register as a composition tax payer. Applicants in the Composition System are eligible to pay a flat GST rate. The taxpayer would not be qualified to submit an input tax credit claim.
Casual Taxable Person
Each taxpayer opening a seasonal store or stall must register as a casual taxable person. A deposit in the amount of the GST liability must be made by the taxpayer in order to register as a casual taxable person. The obligation must coincide with the active registration periods. The registration is still valid after three months have passed.
Non-Resident Taxable Person
Non-resident taxable persons fall under this category if they are not Indian citizens. Only after acquiring registration are taxpayers permitted to provide taxable goods or services to Indian residents. A deposit in the amount of the GST due must be made by the taxpayer in order to register as a non-resident taxable person. The obligation must coincide with the active registration periods. The registration is still valid after three months have passed.
What qualifications must an individual meet in order to register for GST?
- Casual taxable person
- Non-resident taxable person
- An taxpayer subject to the reverse charge mechanism
- Distributor of input services and its agent
- Operator or aggregator of electronic commerce
- Agents of a supplier
- Any organization or vendor engaged in the interstate supply of commodities.
- Any company whose total revenue in a fiscal year surpasses Rs. 40 lakhs (Rs 20 lakhs for special category states in GST). Note: If a business only deals in the supply of products or services that are exempt from GST, this section will not apply.
- Entities that, other than registered taxable persons, provide online information, database acquisition, or retrieval services to a person in India from a location outside India.
What modes does the GST take in India?
A system for GST administration was developed in which the government (both the Central and State governments) has the authority to impose and collect taxes through their respective laws.
- Central GST
- State GST
- Integrated GST
Features |
Central GST - CGST |
State GST - SGST |
Integrated GST - IGST |
|---|---|---|---|
|
Applicability |
Supplies inside a state |
Supplies inside a state |
Interstate supplies and import |
|
Input Tax Credit |
Against CGST and IGST |
Against CGST and IGST |
Against CGST, SGST, and IGST |
|
Tax Revenue Sharing |
Central Government |
State Government |
Shared between State and Central governments |
|
Free Supplies |
Applicable |
Applicable |
Applicable |
ADVANTAGES
ADVANTAGES OF GST REGISTRATION
Cost-Reduction for Goods and Services
The cascading impact of numerous taxes and VATs was eliminated with the implementation of GST, which decreased the cost of goods and services.
Helps in avoiding time-consuming tax services
Small businesses benefit from GST registration since it lets them avoid time-consuming tax services. Because service providers and products suppliers with annual sales of under 20 lakh rupees and 40 lakh rupees respectively are exempt from paying the GST.
Trying to Cut Down on Corruption and Sales Without Receipts
The GST was implemented with the intention of eliminating fraud and receipted sales. Also, it assists in lowering the amount of indirect taxes that small businesses must pay.
Bank Loans
GST registration and submission of GST returns serve as evidence of business activity and build a business’s track record. Hence, GST registration might assist you in formalizing your Company and obtaining financing.
E-commerce
Having a GST registration would enable you to sell online, as it is a requirement to do so on sites like Amazon, Swiggy, and others.
Input Tax Credit
Organizations that have registered for GST are allowed to charge GST to customers for their purchases and claim an input tax credit for the GST they have already paid on other products and services. Hence, GST registration might lower your tax bill and increase your profit margins.
Supplier Onboarding
To become a supplier of recognized firms, GST registration is often times a prerequisite throughout the supplier onboarding procedure. Thus, GST registration can assist you in getting more business
GST TAX RATE?
HOW MUCH DOES THE GST TAX RATE?
In India, a value-added tax known as the Goods and Services Tax (GST) is imposed on the delivery of products and services. It’s crucial to remember that GST rates are subject to modification and may alter based on the kind of goods or services being offered.
When making a purchase or providing a service, it is usually a good idea to check the current GST rates. There are some unique rates that are applied to particular items and services in addition to these prices. Following are the common slab rates.
- 0% - This rate is valid for basic goods such food grains, fresh vegetables, and medical equipment.
- 5% - Food that has been processed or packaged, as well as various home goods
- 12% – This rate is applicable to products including television sets, laptops, and cell phones.
- 18% - Items like air conditioners, refrigerators, and washing machines.
- 28% - This charge is applicable to products including upscale automobiles, cigarettes, and aerated beverages.
- Customer accounts
Compulsory Registration Under GST
The types of taxpayers who are subject to mandatory GST registration. These categories are listed below according to Section 24 of the 2017 CGST Act. Accordingly:
- Individuals who must pay tax under the casual taxable
- Individuals who must pay tax under the reverse charge
- Individuals or organizations that engage in interstate taxable supply
- Non-resident taxable individuals who are compelled to pay tax under section 9's subsection (5)
- Individuals who must pay TDS (Tax Deducted at Source) in accordance with section 51. Whether the Persons are individually registered under the Act or not, and regardless of whether they are separately registered under the Act, this is inappropriate.
- Individuals who provide database access or retrieval services from one location to another outside of India. These services are given to a person who is not an Indian citizen or resident.
- Distributor of input services, whether or not individually registered under the Act.
- Individuals who, either as agents or otherwise, make taxable supplies of goods or services on behalf of other taxable individuals.
- Every individual operator in electronic commerce
- Individuals who provide goods or services other than supplies as described in section 9's subsection (5). Such supplies are made through an operator of electronic commerce, who is required by section 52 to collect tax at source.
- Individuals who were informed by the government of the Council's recommendations.
Persons not liable for GST Registration
(a) Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from taxation under this Act or under the Integrated Goods and Services Tax Act;
(b) An agriculturist, to the extent of produce supply out of land cultivation
(c) The Government may, on the recommendations of the Council, by notification, 3 specify the category of persons who may be exempted from obtaining registration under this Act.
- For those who only made taxable supplies, the total tax is liable to be paid on a reverse charge basis.
- Inter-state supply of services up to 20 lakhs is exempted.
- Casual Taxable person making taxable supplies of handcraft goods.
- Individuals who do the inter-state supply of handcrafts up to 20 lakhs are exempted.
- Supplier of services (other than those notified under Section 9(5) through an e-commerce operator up to 20 lakhs is exempted.
GST Registration Turnover Limits
TYPE OF TAXPAYERS |
TYPE OF SUPPLIES OR BUSINESS OPERATIONS |
EXEMPTION LIMIT |
|---|---|---|
|
Normal taxpayers |
Render of goods only |
Threshold annual turnover increased to up to INR 40 lakhs |
|
Special category states |
Render of goods only |
Threshold annual turnover increased up to INR 20 lakhs |
|
Normal taxpayers |
Render of services only |
Threshold annual turnover of up to INR 20 lakhs (remains the same) |
|
Special category states |
Render of services only |
Threshold annual turnover of up to INR 10 lakhs (remains the same) |
DOCUMENTS REQUIRED
DOCUMENTS REQUIRED
GST Registration Turnover Limits
- Aadhaar card
- PAN card
- Photograph
- Bank account details
- Address proof (Passport, Driving license, Voters identity card, Aadhar card etc.)
LLP and Partnership Firms
- Copy of partnership deed
- Aadhar card of authorized signatory
- PAN card of all partners (including managing partner and authorized signatory)
- Photograph of all partners and authorized signatories
- Address proof of principal place of business
- Address proof of partners Proof of appointment of authorized signatory
- In the case of LLP, registration certificate / Board resolution of LLP
- Bank account details
HUF
- PAN card of HUF
- PAN card and Aadhar card of Karta
- Photograph
- Bank account details
- Address proof of principal place of business
Company (Public and Private) (Indian and foreign)
- Certificate of incorporation
- Memorandum of Association
- Articles of Association
- PAN card of the Company
- PAN card and address proof of all directors of the Company
- Photograph of all directors and authorized signatory
- Board resolution appointing authorized signatory
- Bank account details
- Address proof of principal place of business
- Note: PAN card and Aadhar card of the authorized signatory should be an Indian, even in case of foreign companies/branch registration
Note:
- Address Proof of Individuals/ Directors / Partners – Passport, Driving License, Aadhar Card, Voter ID.
- Address Proof of Principle Place of Business
- Rental Property (Rental Agreement, Electricity Bill)
- Own Property (Sale Deed, Electricity Bill)
- Shared Property (Shared Agreement, Electricity Bill, NOC)
The above Note must be placed parallel to the documents required content in the website.
Procedure for GST Registration
- Visit the GST portal and choose "New GST Registration" to register for GST registration online.
- Fill in the relevant information, such as the business's name, state, PAN card information, etc.
- Enter the OTP, then select proceed.
- The temporary reference number should be written down (TRN)
- Search for "Register" under the "Taxpayers" section on the GST portal.
- Enter the TRN and continue.
- Enter the OTP that was sent to your registered email or mobile number, and then proceed.
- On the next page, you can look up the status of your application.
- Enter the required information and upload the required documents.
- Verify your application using one of the three methods provided before submitting it.
- Upon submission, you will receive an email and a mobile number with the Application Reference Number (ARN).
- You can now check the ARN's status on the GST portal.
- After the GST officer has verified the GST application and other necessary GST registration documents, you will receive your GST registration certificate and GSTIN. Please keep in mind that the GST certificate cannot be printed out and must be downloaded from the GST Portal.
Penalties Involved Under GST Act
- No GST Registration - 100% tax due or INR 10,000*
- Not filing GST Tax Returns
- For Nil Return - INR 20 Per Day
- Regular Returns - INR 50 Per Day.
- Not issuing GST invoice - 100% tax due or INR 10,000*
- Incorrect Invoicing : INR 25,000
- Choosing Composition Scheme even if not eligible - 100% tax due or INR 10,000*
What is Harmonized System of Nomenclature (HSN)?
The introduction of HSN (Harmonized System of Nomenclature) has allowed for the systematic classification of items on a global scale. This code, which has a standard six digits, is used to categorize more than 5000 different products. It was created by the World Customs Organization (WCO) and implemented in 1988.
The HSN system is renowned throughout the world for coding and classifying all products. The HSN system is also used by the WTO (World Trade Organization) and people for trade and trade negotiations.
Structure of HSN Code
For Instance, 07031010
SECTIONS OF HSN CODE
SECTIONS OF HSN CODE
Introducing Goods and Services Tax (GST) has been a significant tax reform in India. The GST has mostly superseded other indirect taxes including excise duty, VAT, and services tax. Based on the Goods and Service Tax Act, which was approved by the Indian Parliament on March 29, 2017, GST became effective on July 1st, 2017. You can use Taxkey to bring your GST registration. Here, we excel in abating the burden of a long-winded registration process. You will receive guidance from our knowledgeable team on quickly obtaining a GSTIN.
S.No |
Section |
Products List |
|---|---|---|
|
1 |
Section 1 |
Live Animals |
|
2 |
Section 2 |
Vegetables and their products |
|
3 |
Section 3 |
Animal or vegetable fats |
|
4 |
Section 4 |
Prepared foodstuffs, Manufactured tobacco |
|
5 |
Section 5 |
Mineral products |
|
6 |
Section 6 |
Chemical products |
|
7 |
Section 7 |
Plastic and rubber products |
|
8 |
Section 8 |
Raw hides and skins, Leather, Furskins and articles thereof, saddlery and harness, travel goods, handbags and similar containers, articles of animal gut (other than silkworm gut) |
|
9 |
Section 9 |
Wood and articles of wood, Wood charcoal, Cork and articles of cork, Manufacturers of straw, of Esparto or of Other Plaiting Materials |
|
10 |
Section 10 |
The pulp of wood or of other Fibrous Cellulosic Material, Recovered ( Waste and scrap ) paper or paperboard, paper and paperboard and articles thereof |
|
11 |
Section 11 |
Textile |
|
12 |
Section 12 |
Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks, seat-sticks, whips, riding-crops, and parts thereof, Prepared feathers and articles made therewith, Artificial flowers, Articles of human hair |
|
13 |
Section 13 |
Articles of stone, plaster, cement, asbestos, mica, or similar materials, ceramic products, glass and glassware |
|
14 |
Section 14 |
Natural or cultured pearls, precious or semi-precious stones, precious metals, Metal clad with precious metal, and articles thereof, Imitation Jewellery, Coins |
|
15 |
Section 15 |
Base Metals and Articles of Base Metal |
|
16 |
Section 16 |
Machinery and mechanical appliances, electrical equipment, parts thereof, sound recorders and reproducers, television image and such recorders and reproducers, and Parts and Accessories of such article |
|
17 |
Section 17 |
Vehicles, Aircraft, Vessels and Associated Transport Equipment |
|
18 |
Section 18 |
Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus, clocks, and watches, musical instruments, parts and accessories thereof |
|
19 |
Section 19 |
Arms and ammunition, parts and accessories thereof |
|
20 |
Section 20 |
Miscellaneous Manufactured Articles |
|
21 |
Section 21 |
Works of art, Collectors’ Pieces a, d Antiques |
Structure of HSN Code
The Central Board of Indirect Tax & Customs’ (Service Tax Department) Service Accounting Code, often known as SAC, is the code used to categorize and identify the services provided. Every service offered has a special SAC code, just like every HSN for various goods categories does. The SAC code can and should be used by those participating in the service industry to properly comprehend the tax levied on the services provided and received.
Structure of SAC Code
For Instance, 998314
Please design this structure of SAC code in an attractive way.
How Taxkey Can Assist You?
Online GST registration is simple and compliances are hassle-free since we take full charge of them. Our legal staff is here to answer any questions and walk you through the entire GST registration procedure.
The GST Forms feature many difficult fields, notwithstanding the user-friendly layout of the GST system. Hence, it is strongly advised that you get professional assistance for submitting the application, carrying out the necessary steps, filing your taxes, and finishing other requirements in the site.
FAQS
FAQS
In general, GST registration takes 5 to 15 working days depending on the location and submitted documents.
Any person must register for GST within 30 days of the date they become required to do so.
If your application for GST registration was denied, you will have the opportunity to respond to the denial letter. However, you would need to wait for a final rejection, which will take about 10 days, if you wanted to submit a fresh application.
Pros:
1. Low tax and high
2. liquidity
3. Less tax payment
Cons:
1. Sales across states are not allowed.
2. Tax payments cannot be collected.
Pros:
Its business territory is limitless.
Accessibility of Credit for Paid Input Tax.
It is possible to sell through an ecommerce marketplace.
Cons:
It requires more compliance, which means that several returns must be filed.
Reduced liquidity to avoid huge tax amounts in the electronic ledgers, and one can only access input when the provider has submitted the return.
Thorough accounting records must be kept.
The CMP-02 form must be submitted by the taxpayers in order to opt into the composition scheme. The taxpayers who were regular taxpayers in the prior Financial Year but are choosing the composition scheme should file ITC–03 for reversal of ITC credit on Stocks of Inputs, Semi–Finished Goods, and Finished Goods Available with Him within a Period as Prescribed under Rule–3. This provision is intended to prevent switching for the benefit of the taxpayer in order to abuse the ITC.
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