What is GST?

GST is an indirect tax that has replaced all the prevailing indirect taxes suitable until now. It is mainly a mixed form of all the other taxes which will cater for a single and streamline the method. After the introduction of GST, it essentially gives the thought of ‘One nation one tax’.The taxes are taxed at a single rate. The whole amount or accumulation, then divided between both Central and State governments in the title of CGST and SGST or IGST. This article will guide all about GST Registration

Who needs GST Registration?

• Any business entity whose aggregate turnover in a financial year exceeds Rs 40 lakhs (Rs 20 lakhs for special category states in GST).
• Note-This clause does not apply if the entity is only dealing in supply of goods/services which are exempt under GST,
• Every entity registered under an earlier law of taxation (i.e., Excise, VAT, Service Tax, etc.) needs to get register under Goods and Service Tax.
• Any entity or supplier dealing in inter-state supply of goods.
• Casual taxable person
• E-Commerce operator or aggregator*
• Input service distributor and its agent
• A Person who supplies through E-commerce aggregator.
• Entities who are providing online information, acquiring database, or retrieval services from a place located outside India to a person in India, other than a registered taxable person

Certain businesses must file under GST. Carrying out business without filing is a crime and can lead to hefty penalties.

What are the Types of GST in India?

For GST administration, a model designed where the government (Central and State) have powers to impose and collect taxes through their respective legislations.

The Types of GST are Central GST, State GST, Integrated GST, and Union Territory GST. The details are given below:-

• Central GST: CGST imposed a tax on the Intra State supplies of goods and services by the Central Government. When the place of the seller and the buyer is in the same state it is termed as an Intra-state supply of goods or services. A seller to collect both CGST and SGST in which CGST remains with the Central government while the SGST collected by the State government.
• State GST: SGST is the tax levied on the Intra State supplies of goods and services by the State Government.
• Integrated GST: Integrated GST govern by the IGST Act, the seller collects IGST from the buyer, the tax collected, divided between the Central and State Governments.
• Union Territory GST: Union Territory GS applicable when any goods & services used in (UTs) of India, the revenue collected by the government of the union territory.

What are the Constituents of GST?

• Registration Number
• Legal Name and Constitution of business
• Trade Name
• Period of validity
• Types of taxpayer
• Date of Liability
• Signature of the applicant

What are the Benefits of GST Registration

• Simplifies Taxation Services : GST has combined a number of indirect taxes under one umbrella and integrated the Indian market.
• Reduction In Costs Of Products & Services: With the introduction of GST, the cascading effect of a series of VATs, taxes erased which has resulted in the reduction of the cost of goods and services.
• Aimed At Reducing Corruption And Sales Without Receipts: GST, introduced with an aim of reducing corruption and sales without receipts. Also, it helps in reducing the need for small companies to comply with various indirect taxes.
• Uniformity In Taxation Process : GST Registration brings uniformity in the taxation procedure and allows centralized registration. This helps the businesses to file the tax returns every quarter through an online process.
• Higher Threshold For Registration: Earlier, in the VAT system, any business with a turnover of more than Rs 5 lakh was liable to pay VAT in India. The in-Service tax exempted service providers with a turnover of less than Rs 10 lakh. In the GST, the regime Threshold increased to Rs 20 lakh for a lot of small traders, service providers.
• Composition Scheme For Small Businesses : Under GST, small business under turnover of Rs 20 to 75 lakh can benefit as it gives an option to lower taxes by using the Composition scheme. This move has brought down the tax and compliance burden on many small businesses.
• Regulations Of Unorganized Sector: In the pre-GST, often observed that certain industries in India like building construction and textile were largely unorganized and unregulated. Under GST, however, there are provisions for online compliances and payments, and for availing of input credit only when the supplier has accepted the amount. This has brought accountability and regulation to these industries.