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GST Registration

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Overview of GST Registration

  • GST means Goods and Service Tax
  • GST is a single tax that will replace all the existing indirect taxes in India. These taxes include Sales tax (VAT), Excise duty (CENVAT), Service tax, Entertainment tax, Luxury tax etc.
  • Goods and services are divided into five tax slabs for collection of tax – 0%, 5%, 12%, 18% and 28%.

Documents required for GST registration

  1. Proprietor/Directors/Partners aadhaar card
  2. Proprietor/Directors/Partners pan card
  3. Company located proof

There are 4 types of taxes at different levels

CGST – It is short for Central GST.
SGST – It is short for State GST.
UTGST– It is short for Union Territory GST.
IGST – It is short for Integrated GST.

a) CGST – The tax will be imposed by the central government of India. It will replace excise duty, service tax, SAD (Special Additional Duty), CVD (Countervailing Duty), ADE (Additional Duties of Excise) and other indirect taxes levied by the central government. CGST will be applicable on supplies within a state and the tax revenue will go only to the central government.

b) SGST – The tax will be imposed by the state government. It will replace sales tax, VAT, entertainment tax, entry tax, luxury tax, purchase tax and taxes on lottery. SGST will be applicable on supplies within a state and the tax revenue will go only to the state government.

c) UTGST – The tax will be imposed by the Union Territory of Chnadigarh, Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, Andaman and Nicobar Islands, Delhi and Puducherry. It will replace sales tax, VAT, entertainment tax, entry tax, luxury tax, Octroi, purchase tax and taxes on lottery. UTGST will be applicable on supplies within a union territory.

d) IGST – It will be imposed by state and central government together, but is collected by the central government. The revenue is shared by both central and state governments. It will replace Central Sales Tax (CST). It will be applicable on interstate import and supplies. No exemption limit has been defined by the government for this type of GST. If dealers supply in different states, then they have to register for this GST. It will also be applicable on free supplies. For this type of GST, the composition scheme is not available.

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Who will take GST in India?

GST was mandatory for following business,

  • If the annual turnover was exceeds Rs.40 lakhs
  • Supply of goods through inter-state
  • Sell the products through e-commerce platform.
  • Incase wholesaler or retailer or customers want bills.
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Return Filings

  • Every GST registrant requires to file every month or three month/quarterly once and one annual returns.
  • It was based on your business turnover and your business type.

Frequently Asked Questions

01. Who needs gst registration number?
  • Businesses having annual income more than Rs 40 Lakhs Per Annum.
  • If business is dealing in one city to another city.
  • Selling your goods to online (like selling on Amazon or Flipkart).
  • If you are providing services to outside India.
02. When should a business apply for multiple GST registrations?

        If a business operates more than one state, then a separate GST registration is required for each state. For e.x, If a person sells electronic items in Kerala and Tamilnadu, he has to apply for separate GST registration in Kerala and Tamilnadu respectively.

03. What is the composition scheme?
  • It is a scheme under GST for small businesses whose turnover less than Rs. 1.5 crore (less than 75 lakhs for North Eastern states).
  • The business owners registered under this scheme and these vendors pay tax at a lesser rate.
  • A composition tax payer cannot collect tax or claim input tax credit for the supplies delivered to their clients. Due to this reason, bills of supply are issued for sales transactions, instead of tax invoices.
  • The composition rates are different based on the type of business. For traders and manufacturers it’s 1%.For restaurant sector it’s 5%.
04. Who can't opt for Composition Scheme?

The following individuals cannot opt for Composition Scheme:
1.Suppliers who provide services
2.Suppliers involved in inter-state transactions
3.E-commerce operators/aggregators
4.Casual taxable person or a non-resident taxable person
5.Manufacturers of ice-cream, pan masala and tobacco & tobacco substitute

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