WHAT IS GST?
The goods and service tax (GST), is a value-added tax that is levied on all goods and services for domestic consumption. It is a destination-based tax that applies to the consumption of goods or services. It will be applied at all stages, from manufacturing to final consumption. Credit for taxes paid at earlier stages is also available as an offset. The tax will only be levied on value-added and the final consumer is responsible for paying the tax.
The One Hundred and First Amendments to the Constitution of India were implemented by the Indian government on July 1, 2017. This brought about the tax’s implementation. This tax replaces multiple taxes that were already in effect by the State and Central governments.
The GST Council, which includes the central finance minister and all states, governs the tax rates, rules, and regulations. GST is intended to replace a number of indirect taxes with one unified tax. It is expected to transform the country’s estimated 2.4 trillion-dollar economy. The GST tax rate varies depending on what service you are selling or the nature of the goods. Businesses that sell goods or services pay GST, but consumers pay it. GST generates revenue for the government.
ONLINE GST REGISTRATION
GST (Goods and Services Tax), is an indirect tax that has been used to replace many taxes in India. Online GST registration passed the Parliament on 29 March 2017, but it became effective in India on 1 July 2017. The threshold limit for GST registration, as per the changes made by the 32nd council meeting is 40 lakhs to the supplier for goods and 20 lakhs to the supplier for services. The North-Eastern States also have the option of choosing between 20 lakhs or 40 lakhs. After you register under this scheme, you will be issued a unique GSTIN number (Goods and Service Tax Identification No.). GST registration has many benefits. You can also get an input tax credit and receive GST from the recipients of goods or services.
Online registration of GST can be done easily by visiting the Online GST portal. While it is simple to fill out the GST online portal form, experts are required to ensure that the form contains accurate information. Many taxpayers are not able to understand some terms used in drafting the GST registration form. In the beginning, GST registration should not be attempted without the assistance of experts. Legal docs will help you complete your GST registration quickly and easily.
BENEFITS GST REGISTRATION
- You can legally collect taxes on your customers and transfer the Tax Benefits to suppliers.
- Compliance with all taxes for business
- You can claim Input Tax Credit for purchases you’ve made to increase profits.
- GST Certificate can be used to open a current account or Business Account.
- If you have GSTN, you can apply for tenders from the Central and State Governments.
- You can expand your business via various channels such as Online, Import/Exports
- To create payment gateways and use mobile wallets, the GST number must be used.
WHO NEEDS GST REGISTRATION NUMBER
- Companies with an annual turnover exceeding Rs 20 Lakhs per Annum (Rs. 10 Lakh in the North Eastern States).
- A business may be involved in more than one state.
- If your company has been previously registered under VAT, Excise Laws, or Service Tax Laws
- You can sell your products or services online (e.g., on Amazon and Flipkart).
- If you provide services or goods to India.
Conclusion
GST was introduced in the year 2017 on the 1st of July, for the purpose to reduce multiple taxes and build up a uniform tax in India. GST registration is necessary for every taxpayer who falls under GST criteria. Online GST registration can be easily done by visiting the Online GST portal.
