GST stands for Goods and Services Tax. It is an Indirect tax which was introduced to replacing other Indirect taxes such as service tax, , excise duty, etc. GST is being levied on the supply of certain goods and services in India. It is single tax that is applicable all over India. On July 1st 2017, the Goods and Services Tax implemented in India.

GST Mechanism/ Working of GST

• Manufacturer: The manufacturer will pay GST on the raw material that is purchased and the value that has been added to make the product.
• Service Provider: Here, the service provider will pay GST on the amount that is paid for the product and the value that has been added to it. However, the tax that has been paid by the manufacturer can be reduced from the overall GST that must be paid.
• Retailer: The retailer will need to pay GST on the product that has been purchased from the distributor as well as the margin that has been added. However, the tax that has been paid by the retailer can be reduced from the overall GST that must be paid.
• Consumer: GST must be paid on the product that has been purchased.

Types of GST

There are four different types of gst as mentioned below:

1.Central Goods and Services Tax : CGST is charged on the intra state supply of products and services.
2.State Goods and Services Tax : SGST, like CGST, is charged on the sale of products or services within a state.
3.Integrated Goods and Services Tax : IGST is charged on inter-state transactions of products and services.
4.Union Territory Goods and Services Tax : UTGST is levied on the supply of products and services in any of the Union Territories in the country, viz. Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and Chandigarh. UTGST is levied along with CGST.

GST Registration Eligibility

The following entities and individuals must register for goods and service tax:

• E-commerce aggregators
• Individuals who supply through e-commerce aggregators
• Individuals who pay tax as per the reverse change mechanism
• Agents of input service distributors and suppliers
• Non-Resident individuals who pay tax
• Businesses that have a turnover that is more than the threshold limit of INR 40 Lakhs/20 Lakhs/10 Lakhs
• Individuals who have registered before the GST law was introduced

Types of GST Registration

1.Normal taxpayers : Most businesses in India comes under the category of Normal taxpayer.
Businesses whose turnover exceeds Rs 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is Rs 10 lakh if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand.
 
2.Casual taxable individual : Occasional or seasonal businesses need to register their businesses under GST for this category. Businesses need to make a deposit equal to the GST liability from the occasional operations. The tenure for registration is 3 months. However, businesses can apply for renewal and extensions.

3.Non-resident taxable individual : Individuals who reside outside India but occasionally supply goods or services as agents, principals, or in other capacities to Indian residents are liable to file for registration under this category. The business owner must pay a deposit equal to the expected GST liability during the GST active tenure. The normal tenure is 3 months. However, individuals can extend or renew the registration if required.

4.Composition registration : Businesses with an annual turnover of up to Rs 1 crore are eligible for registration under composition scheme. Under this scheme, businesses have to pay a fixed amount of GST irrespective of their actual turnover.

Documents Required

• PAN of the Applicant
• Aadhar Card
• Address Proof for principal place of business
• Proof of business registration or Incorporation certificate
• Digital Signature
• Bank Account Statement/Cancelled Cheque
• Letter of Authorization/Board Resolution for Authorized Signatory

GST Returns

A GST return is a document or form where the assessee is required to disclose details of all the income/sales/purchases/expenses made during the relevant period for which the return is being filed. The return is used to calculate net tax liability of GST.

We at Taxcellent provides all kind of professional services related to GST from obtaining GST registration to filing of GST returns and GST Audit.