GST REGISTRATION

GST Registration in Jharkhand- GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.

Goods and Services Tax (GST) is a value added tax imposed on most goods and services sold for domestic consumption. It is a location-based tax on the consumption of goods and services. It is proposed to charge all stages of production to final consumption by offsetting the taxes paid at the previous stage. In short, only value added is taxed and the tax burden is borne by the final consumer.

The tax came into effect on 1 July 2017 through the adoption of the Hundred and First Amendments of the Government of India to the Indian Constitution. The tax replaces many existing federal and state government taxes.
The Goods and Services Tax (GST), introduced on 1 July 2017, applies to all Indian service providers (including freelancers), traders and manufacturers. Many core taxes like Service Tax, Excise Tax, CST and government taxes like Entertainment Tax, Luxury Tax, Octroi, VAT are combined into one tax – GST, introduced on 01/07/2017 GST must be collected at every step of the chain for shipping, with benefits full offset is accessible. The GST procedure is completely online and does not require manual intervention.

Each product goes through many stages in the supply chain, which include purchasing raw materials, manufacturing, selling to wholesalers, selling to retailers, and finally selling to consumers. Interestingly, GST is calculated at all these 3 levels. Suppose if a product is produced in West Bengal but consumed in Uttar Pradesh, all the proceeds go to Uttar Pradesh.

Also, taxpayers with a turnover of less than Rs.1.5 crore can opt for a compounding scheme to get rid of the hassle of GST formalities and pay GST at a fixed turnover rate.

GST will consist of 3 tax components, including a central component (Central Tax on Goods and Services or CGST) and a state component (State Tax on Goods and Services or SGST), wherein the center and the state will impose GST on all entities, e.g. when a transaction occurs within a country. Interstate transactions collect an integrated tax on goods and services (IGST) collected by the center, ie. when transactions occur from one country to another.

GSTIN stands for Goods and Services Taxpayer Identification Number. It consists of 15 alphanumeric digits. It is created by the government once you have successfully completed the GST registration.

Types of GST and Explanation

There are 4 different types of GST:

  • Integrated Goods and Services Tax (IGST)
  • State Goods and Services Tax (SGST)
  • Central Goods and Services Tax (CGST)
  • Union Territory Goods and Services Tax (UTGST)

1. Integrated Goods and Services Tax:-The Integrated Goods and Services Tax or IGST is a tax under the GST regime that is applied on the interstate (between 2 states) supply of goods and/or services as well as on imports and exports. The IGST is governed by the IGST Act. Under IGST, the body responsible for collecting the taxes is the Central Government. After the collection of taxes, it is further divided among the respective states by the Central Government.

2. State Goods and Services Tax:-The State Goods and Services Tax or SGST is a tax under the GST regime that is applicable on intrastate (within the same state) transactions. In the case of an intrastate supply of goods and/or services, both State GST and Central GST are levied. However, the State GST or SGST is levied by the state on the goods and/or services that are purchased or sold within the state. It is governed by the SGST Act. The revenue earned through SGST is solely claimed by the respective state government.

3. Central Goods and Services Tax or CGST:- Just like State GST, the Central Goods and Services Tax of CGST is a tax under the GST regime that is applicable on intrastate (within the same state) transactions. The CGST is governed by the CGST Act. The revenue earned from CGST is collected by the Central Government.

4. Union Territory Goods and Services Tax or UTGST:- The Union Territory Goods and Services Tax or UTGST is the counterpart of State Goods and Services Tax (SGST) which is levied on the supply of goods and/or services in the Union Territories (UTs) of India. The UTGST is applicable on the supply of goods and/or services in Andaman and Nicobar Islands, Chandigarh, Daman Diu, Dadra, and Nagar Haveli, and Lakshadweep. The UTGST is governed by the UTGST Act. The revenue earned from UTGST is collected by the Union Territory government. The UTGST is a replacement for the SGST in Union Territories. Thus, the UTGST will be levied in addition to the CGST in Union Territories.

Eligibility for Obtaining GST Registration

Any persons or entity providing a taxable supply of goods or services to persons in India with an annual aggregate turnover of more than Rs.20 lakh must obtain GST registration. In some special category states like Assam, Nagaland, Manipur and North-Eastern state, the aggregate turnover criteria reduced to Rs.10 lakh. Other than the aggregate turnover criteria, a person may obtain GST registration, if they undertake inter-state supply of goods or services or an existing VAT or service tax or central excise registration.

Types of GST Registration

Under the GST Act, GST Registration can be of various types. You must be aware of the different types of GST Registration before selecting the appropriate one. The different types of GST Registration are:

  1. Normal Taxpayer:- Most businesses in India fall under this category. You need not provide any deposit to become a normal taxpayer. There is also no expiry date for taxpayers who fall under this category.
  2. Casual Taxable Person:- Individuals who wish to set up a seasonal shop or stall can opt for this category.
  3. Composition Taxpayer:- Apply for this if you wish to obtain the GST Composition Scheme. You will have to deposit a flat under this category. The Input tax credit cannot be obtained under this category.
  4. Non-Resident Taxable Person:- If you live outside India, but supply goods to individuals who stay in India, opt for this type of GST Registration.

Documents Required for GST Registration

The following documents must be submitted by regular taxpayers applying for GST registration.

sole proprietor / Individual           

  • PAN card of the owner
  • Aadhar card of the owner
  • Passport size photo of Sole Proprietor (in JPEG format, maximum size – 100 KB)
  • Bank account details*
  • Registered Office Address proof.

Partnership firm     

  • PAN card of all partners (including managing partner and authorized signatory)
  • PAN card of Firm
  • Copy of partnership deed
  • Passport size photo of all partners and authorized signatories (in JPEG format, maximum size – 100 KB)
  • Address proof of partners (Passport, driving license, Voter identity card, Aadhar card, etc.)
  • Aadhar card of authorized signatory
  • Proof of appointment of authorized signatory
  • Bank account details
  • Registered Office Address proof

Limited Liability Partnership(LLP)          

  • PAN card of all designated partners (including managing partner and authorized signatory)
  • PAN card of LLP
  • Copy of Registration Certificate of the LLP
  • Copy of Board Resolution
  • Copy of LLP agreement
  • Proof of appointment of authorized signatory (Digital Signature Certificate of any one of the designated partner)
  • Passport size photo of designated partners and authorized signatories (in JPEG format, maximum size – 100 KB)
  • Address proof of designated partners (Passport, driving license, Voter identity card, Aadhar card, etc.)
  • Aadhar card of the designated partner
  • Bank account details
  • Registered Office Address proof

HUF    

  • PAN card of HUF
  • PAN card and Aadhar card of Karta
  • Passport size photo of Owner/Karta (in JPEG format, maximum size – 100 KB)
  • Proof of Appointment of Authorized signatory- Photo and Letter of Authorization
  • Bank account details
  • Registered Office Address proof

Society or Trust or Club     

  • Pan Card of society/Trust/Club
  • Registration Certificate of society or club
  • Passport size Photograph and PAN Card of Promoter/ Partners
  • PAN card and Aadhaar card of the authorized signatory, Promotors/Partners.
  • Board Resolution or any other proof of appointing authorized signatory
  • Registered Office Address proof:
  • Self-owned property – Copy of electricity bill, landline bill, water bill, municipal khata copy, property tax receipt.
  • Rented property – Rent agreement and No objection certificate (NOC) from the owner of the rented property.
  • Bank account details*
  • Registered Office Address proof**

Company(Public, Private and One person) (Indian and foreign)

  • PAN Card of Company
  • Certificate of incorporation given by Ministry of Corporate Affairs (MCA)
  • Memorandum of Association / Articles of Association
  • PAN card and Aadhar card of the authorized signatory. The authorized signatory must be an Indian even in case of foreign companies/branch registration
  • PAN card and address proof of all directors of the Company
  • Photograph of all directors and authorized signatory (in JPEG format, maximum size – 100 KB)
  • Board resolution appointing authorized signatory / Any other proof of appointment of authorized signatory (in JPEG format / PDF format, maximum size – 100 KB)
  • Bank account details
  • Registered Office Address proof

For enrolling as a GST practitioner

  • Photo of the applicant (in JPG format, maximum size – 100 KB)
  • Address proof of place where professional practice takes place
  • Proof of qualifying degree (Degree certificate)
  • Pension certificate (only in case of retired Government officials)

GST Registration Exemption

The below-mentioned individuals and entities are exempt from GST registration:

  • Businesses that manufacture supplies that comes under reverse charge.
  • Activities that do not come under the supply of goods or services. Examples of such activities are the sale of a building or land, funeral services, and services provided by an employee.
  • Businesses that make non-GST/ non-taxable supplies. Examples are aviation turbine fuel, electricity, natural gas, high-speed diesel, and petrol.
  • Agriculturists.
  • Businesses that make exempt/ nil-rated supplies.
  • Businesses that fall under the threshold exemption limit.

Penalty for Not Registering or Late Registering Under GST

If you do not pay tax or pay a lesser amount than what is due, the penalty that is levied is 10% of the due amount (in case of genuine errors). However, the minimum penalty is Rs.10,000.If you have not registered for GST and are deliberately trying to evade tax, the penalty levied is 100% of the due tax amount.

FAQs

Qus:- Who is eligible for GST registration?

In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration. For certain businesses, registration under GST is mandatory.

Qus:- Who should pay GST, the buyer of the seller?

Goods and Service Tax (GST) is paid by the consumers for the products or services. But the GST will be remitted to the government by the businesses who are providing you with those products and services.

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