What is the current GST Rate in India?

According to the GST Council of India's recent revision of GST tax rates, the new tax slab for regular taxpayers is 0% (on health services, education services, consumable dairy goods, fruits, vegetables, etc.), 5% (on kitchen utilities & provision items like edible oils, sugar, domestic LPG, kerosine, etc.), 12% (on computer parts, smart phones, certain renewable energy devices, processed food items, etc.), 18% (on domestic products like toiletries & stationery items, capital goods, industrial intermediaries, railway goods, broadcasting and media items, packaging products, etc.), and 28% (on caffeinated beverages, raw and processed tobacco products, certain construction materials, etc.). The TCS and TDS deductions made under GST are 1% and 2%, respectively. Some less commonly imposed GST tax rates are 0.25% and 3%.

How to Avoid Common Mistakes When Registering for GST?

The common mistakes committed by taxpayers while during GST registration include: Incomplete authentication of the Aadhaar details Incomplete or incorrectly filled out forms and paperwork Not claiming the TCS (Tax Collected at Source) and TDS (Tax Deducted at Source) according to the GST regulations Not complying with Rule 86B. After its introduction on 1st Jan, 2021, it prohibits the use of electronic cash ledgers for satisfying the output tax debts that surpass over 99% of the total tax output. In order to correct the mistakes made during GST registration, owners need to re-submit the documents (including amended forms and legal paperwork) at the online GST portal within fifteen days of registration.

What Every Business Owner Needs to Know About GST Registration?

Business owners must note that they've to file GST returns under the category "NIL returns" even if they don't perform any commercial transactions during the budget year. They must mention their additional place of business (if any), business contact details (and not just the details of their tax professional), and HSN-wise summary in the GST return-1 form. They must be clear about Letter of Undertaking (LUT), GSTR-10 (the final return form), and the rules mentioned under Input Tax Credit (ITC) while registering their business and filing returns. Therefore, hiring a skilled and seasoned GST registration professional is recommended to avoid missing out on the form submission deadlines or incorrect application.

What are the 3 types of GST registration?

There are multiple registrations listed under the GST laws. Voluntary registration isn't legally binding and based on the will of business owners. Compulsory registration is imposed irrespective of the annual turnover, for e-commerce companies/sellers and organisations have inter-state sales of goods. Composition Scheme Registration is mandatory for businesses having different yearly turnover amounts. The tax slab is INR 20 lakhs (or INR 10 lakhs for businesses running in specific states) to INR 40 lakhs, INR 20 lakhs to 50 lakhs, INR 20 lakhs to 1.5 crores (or INR 75 lakhs for businesses of special nature). In special cases, some businesses are exempted from GST registration. It includes direct crop supply from cultivated land by agriculturists, goods or services that do not fall under the GST taxation, businesses that fall under voluntary registrations, and organisations that have an yearly turnover of less than INR 20 lakhs (or INR 10 lakhs under special provisions).

GST Registration Online: A Fast and Easy Step-by-Step Guide

The introduction of Goods & Services Tax (GST) in 2017 made it mandatory for all individuals and companies to pay a centralised composite tax on purchasing products and services. The newly introduced integrated taxation system seemed a bit cumbersome and unrequited initially. However, it had several advantages. E.g., the large incremental value of products & services. So, whether you are already running a small business or willing to start one, it is important that you get acquainted with the GST registration process, laws, and other requisites associated with it, to avoid paying a hefty amount as tax.

Are you aware of the GST registration process? If not, then you are at the right place as here we are going to provide you the required details on the same:

What Is GST Registration?

Under the Goods and Services Tax Act, any business that has an annual turnover exceeding the threshold limit of 10 lakhs, 20 lakhs, or 40 lakhs, whichever the case might be, should register itself as a normal taxable person. This is called GST registration. You can also proceed with GST registration online.

Before going for GST registration, it is important to make yourself familiar with certain sections of the CGST Act:

Section 22: Section 22 of the CGST Act deals with the mandatory registration requirements for persons liable to pay GST.

Section 23: Section 23 of the CGST Act outlines the circumstances under which a person may be exempt from obtaining GST registration.

Section 24: Section 24 of the CGST Act deals with the compulsory registration of certain categories of persons, irrespective of their turnover.

GST Registration Process: Steps

Steps For Online GST Registration:

Business owners willing to register for the GST must log in to the official portal (www.gst.gov.in) and fill out a form that includes their personal and business details, bank account details, nature of services or goods, SAC, HSN, etc.
It is followed by the submission of important documents required for GST registration. Personal ID proof (Aadhar, voter ID, etc.), business address proof (land or shop registry, rent agreement, etc.), income proof (PAN card and bank account statement), and business registration certificates (such as a partnership agreement, company registration number, etc.) are examples of acceptable documentation.
Following the verification of the application and documents, the authorities allot the GSTIN.

Documents Required for GST Registration

Here is a list of documents required to apply for GST registration:

Sole proprietor / Individual

Owner’s PAN card

Owner’s Aadhar card

Owner’s Photograph (in JPEG format, maximum size – 100 KB)

Bank account details

Address proof

LLP and Partnership Firms

PAN card of all partners

Copy of partnership deed

Photograph of all partners and authorised signatories (JPEG format, maximum size – 100 KB)

Address proof of partners

Aadhar card of authorised signatory

Proof of appointment of authorized signatory

LLP Proof of Registration

Bank account details

Address proof of principal place of business

HUF

PAN card of HUF

PAN card and Aadhar card of Karta

Photograph of the owner (JPEG format, maximum size – 100 KB)

Bank account details

Address proof of principal place of business

Company (Public and Private) (Indian and foreign)

Company’s PAN card

Ministry of Corporate Affairs incorporation certificate

Memorandum/Articles of Association

Signatorty’s PAN card and Aadhar card

PAN card and address proof of all directors of the Company

Bank account details

Address proof of principal place of business

Address Proof: Director's Valid Address Verification Choices are:

Aadhaar Card
Passport
Voter ID Card
Driving License
Utility Bills
Property Tax Receipt
Rent Agreement
Bank Statement or Passbook
Registered Sale or Lease Deed
Municipal Corporation Receipt

Eligibility Criteria For Businesses

GST registration is mandatory for :

Manufacturers that earn an annual revenue over INR 40 lakhs,
Service providers that generate more than INR 20 lakh/year (also the e-commerce platforms and vendors),
Hill-area operations with a minimum annual turnover of INR 10 lakh.

Why GST?

Less Monetary Pressure:
The GST was imposed with the objective of removing additional and unwarranted state or central taxes (like service tax, excise duty, VAT, etc.). It resulted in more savings for business owners.
Cost Benefits:
Small-scale ventures meeting specific GST requirements and having an annual profit capital of over INR 75 lakhs need to pay a flat rate of 1-5% as tax.
Easier Loan Application:
All GSTIN holders are entitled to acquire collateral-free loans after the evaluation of their business's financial output potential.
Greater Credibility In The Market:
Getting a business registered for the GST makes it more legitimate and credible in the eyes of the government, customers, and other companies. Businesses are spared from unnecessary compliances, people trust them for partnerships or mergers, and they file income tax returns on a quarterly basis.
Affordable Transport For Interstate Deliveries:
Business owners with GST registration get the opportunity to expand their footprint on a national and international scale without having to pay heavy sums for the delivery of goods and services across borders. The tax is charged at the selling location of goods and services, not at the manufacturing location.
Higher Market Value of the Final Product/Service:
Because the GST is a value-added tax, the same product that goes through different stages of production is taxed multiple times. E.g., purchase of raw materials, product designing, production, packaging, marketing, distribution, and sale. It increases the market value and selling price of goods and services.

Types Of GST Registration

Normal Taxpayer:
No initial deposit requirement or the expiry date is imposed on most regular businesses that belong to this category.
Composition Taxpayer:
This category is exempt from the input tax credit, and business owners have to deposit a flat rate if their business falls under the GST Composition Scheme.
Casual Taxpayer:
Seasonal businesses (like summer/winter food stalls, marriage planners, etc.) are casual taxpayers that must deposit an advance tax equivalent to their expected GST liability at the time of operation of their business. The GST registration granted to them is renewed every three months.
Other Taxpayer:
All foreign businesses offering their products and services in India apply for registration under this category. The laws are similar to the "casual category," where owners need to deposit an amount equivalent to their GST liability; however, the registration is granted only for a period of 3 months. It can be renewed or extended later.
Businesses That Run In Multiple States:
Some businesses need to have multiple registrations under the same GSTIN and PAN if they're manufacturing, distributing, and selling goods at multiple locations. During GST registration, they must provide information such as the nature and manufacturing process of the goods, the various processes used for distribution and supply, environmental compliances, insurance, and the types of customers served, among other things.

GST Related:

The Process of GST E-Invoicing

SOP extension

Changes brought in GST Registration

Process of Aadhar authentication for GST Registration

GST on Real Estate Sector

Finance Act 2020-GST

GST E-invoice with QR code

GST applicability on GTA

value of supply of lottery for GST

Do I have to pay GST on money received on breach of contract?

What is a GST Certificate?

GST Certificate is basically the document issued by the government of India to an entity that has completed the registration under the GST system. This authorises the entity to collect tax from customers on behalf of the government. You can acquire the certificate after GST apply online.

What After GST Registration?

Following the registration, it is important that you update your business details from time-to-time, maintain all sale/purchase invoices and records, comply with tax laws, file GST returns on the scheduled date, and stay up to date with the amended GST laws. It's beneficial to hire a GST expert for managing such tasks.

If you're searching for an expert in GST audit, income tax consultancy, transfer pricing, CFO outsourced services, etc., then BC Shetty & Co. is the suitable option for you. Click here to discover how we can help you with GST registration and other associated services!

What is GSTIN? [Goods and Services Tax Identification Number]

GSTIN is a unique 15-digit identity verification number that is assigned to an entity registered under the GST regime. The GSTIN will be issued by the government of India once the company registers for GST and is required during the process of GST e-invoicing.

It is important for you to display the GST number at business premises so that every customer/visitor gets to know that your organisation is registered under GST. This will give them the liberty to ask for a valid tax invoice.

Penalty For Not Obtaining GST Registration

As per Section 122 of the CGST Act, any taxable person who fails to get their GST registration done in spite of being required to do so will have to pay a penalty.
The person will be charged a penalty of Rs 10,000 or the amount of tax evaded, whichever is greater.
The compliance rating is also going to be affected if a person fails to obtain GST registration on time.

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

GSTN is a nonprofit non-government company that will offer IT infrastructure and GST-related services to the state governments and central government. The taxpayers and the stakeholders can also avail of the services offered by GSTN. GSTN basically acts as an interface between the government and the taxpayer.

GST Service Guidance Provided By BC Shetty & Co

BC Shetty & Co. is one of the top names for GST registration services. The company will offer you top-notch GST service based on your unique business needs. The team of experts at BC Shetty & Co. is well aware of the rules and regulations of the country, they will offer you service based on that. The GST consultants in Bangalore will offer you the necessary guidelines on multiple GST-related services like GST amnesty scheme and other services like:

To know more about GST filing, contact the experts at BC Shetty & Co and you will get the necessary details.