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Good And Service Tax

GST is a comprehensive indirect tax levy subsuming all central and state levies. GST is a destination based consumption tax levied on supply of goods and services. It is proposed to be levied at all stages right from manufacture up to the final consumption with credit of taxes paid at all previous stages.

GST is implemented from 1 st July, 2017 and the sellers who have registered themselves with the state VAT/CST or Service Tax laws is required to migrate their existing registrations into the GST regime.

India has adopted a dual GST model where Central and State Governments will simultaneously levy GST on a common tax base. On intra-state supply of goods and services, Central GST ('CGST') and State GST ('SGST') will be levied. CGST will be levied and administered by Central Government whereas SGST will be levied and administered by State Government. Similarly, Integrated GST (IGST) will be levied on every inter-State supply of goods and services (including import) by the Central Government.

 


Advantages of GST:

01

Easy compliance

A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online.

02

Removal of cascading

A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes.

03

Uniformity of tax rates and structures

GST will ensure that indirect tax rates and structures are common across India, thereby increasing certainty and ease of doing business.

04

Improved competitiveness

Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry.

06

Gain to manufacturers and exporters:

The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. The uniformity in tax rates and procedures across India will also go a long way in reducing the compliance cost.



GST Registration:

1)   Every person who is registered under an earlier law will take registration under GST too. Registration is mandatory for following person under GST 1

a) Who makes inter- state supply of goods and/or services

b) Casual Taxable Person

c) Non-Resident Taxable Person

d) Agents of a supplier

e) Taxpayers paying tax under reverse charge mechanism

f) Input Service Distributors

g) E-commerce operator or aggregator and their suppliers

h) Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

2)   Person not liable to registration, namely

a) Any person engaged exclusively in supply of goods / services or both which is not liable to tax or wholly exempt

b) An agriculturist, for supply of produce out of cultivation of land.

c) Any person having multiple business verticals within a state / UT may seek separate registration i.r.o. each of vertical subject.


3)  Where a business which is registered has been transferred to someone, the transferee shall take registration with effect from the date of transfer.

GST Registration of any business entity can be New Registration or Migration from Old Law. Following documents will be required for both kind of registration.

1) PAN Card of the Business or Applicant


2) Identity and Address Proof of Promoters

Identity proof and address proof documents like PAN, passport, driving license, aadhaar card or voters identity card must be submitted for all the promoters.

3) Business Registration Document

Proof of business registration like incorporation certificate or partnership deed or registration certificate must be submitted for all types of registered entities.

4) Address Proof for Place of Business

Documents like rental agreement or sale deed along with copies of electricity bill or latest property tax receipt or municipal khata copy must be submitted for the address mentioned in the GST application.

5) Bank Account Proof

Scanned copy of the first page of bank passbook showing a few transaction and address of the business must be submitted for the bank account mentioned in the registration application

6) Digital Signature

Class 2 or class 3 digital signature is required for the authorised signatory to sign and submit the GST application. In case of proprietorship, there is no requirement for digital signature.


GST Returns


Everyone is worried about timely filling of their GST Returns to avoid Penalty of Rs. 100 per day for the delay in filling Return and Interest at the rate of 18% for the delayed payment.


Be assured for timely filling of your returns with Legaljini Team and focus on your core business activities. Here is brief knowledge about various returns to be filed by various Business entities and Due date of the same.

Return Form What to file? By Whom? By When?
GSTR-1 Details of outward supplies of taxable goods and/or services effected Registered Taxable Supplier 10th of the next month
GSTR-2 Details of inward supplies of taxable goods and/or services effected claiming input tax credit. Registered Taxable Recipient 15th of the next month
GSTR-3 Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax. Registered Taxable Person 20th of the next month
GSTR-4 Quarterly return for compounding taxable person. Composition Supplier 18th of the month succeeding quarter
GSTR-5 Return for Non-Resident foreign taxable person Non-Resident Taxable Person 20th of the next month
GSTR-6 Return for Input Service Distributor Input Service Distributor 13th of the next month
GSTR-7 Return for authorities deducting tax at source. Tax Deductor 10th of the next month
GSTR-8 Details of supplies effected through e-commerce operator and the amount of tax collected E-commerce Operator/Tax Collector 10th of the next month
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