GST

ABOUT GST REGISTRATION

Concept

Goods and Services Tax is a unified indirect tax combining VAT, CST, Service Tax, Excise duty, Entertainment Tax, etc and applicable all over India from 1 July 2017

When to register for GST?

Mandatory to register under GST when annual turnover exceeds INR 20/10 lakh or supply goods and services inter-state or through e-commerce platform.

What are the GST tax rates?

Tax rates vary from 0% to 28% depends on the type of goods & nature of services you are selling.

Input Tax Credit Availment

Only business unit registered under GST can avail credit of tax paid at the time of purchase while filing GST returns.

Return Filing & Payment

Every GST registrant requires to file three monthly/quarterly returns and One annual return. Requires paying tax every month.

Composition Scheme

Business Unit having an annual turnover less than Rs.1 crore may opt the scheme. Requires to pay subsidize tax ranges from 1% to 5% & file quarterly return.

WHY I NEED GST REGISTRATION?

GST registration not only helps you in getting your business recognized as a legal registrant but also opens a number of opportunities for your business. Benefits to GST registered business at glance are as follows:-

• Become more competitive : – You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration.
• Expand your business Online : – You cannot sell products or services on e-commerce platform without GST registration. If you're planning to give a blow on e-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a GSTIN.
• Can take input tax credit : – Only Registered GST holders can avail input of GST tax paid on their purchases and save the cost.
• Can sell all over India without any restrictions : – Without having GSTIN you cannot trade inter-state. This is possible only if you registered your business under GST.
• Apply Government Tenders : – Various government tenders requires GSTIN to apply tender. If you don’t have you may miss the business opportunity.
• Open Current Bank Account : – Especially, in case of sole proprietor business Banks & Financial Institution does not open a current bank account in the name of business trade name unless you carry any government proof in the name of your business. GST registration certificate can help you to open a current bank account.
• Dealing with MNCs : – Generally, MNC’s does not comfortable to deal with small business entities until they carry valid tax registration proof.

DOCUMENTS REQUIRED FOR GST REGISTRATION

1)              PAN Card

2)            Aadhaar Card

3)            Passport Size Photograph

4)            Rental Agreement / EB Bill / Municipal Tax / Property Tax Receipt

5)            Bank Account statement / Cancelled Cheque

TYPES OF GST RETURN

GSTR 1

The Purpose of this return serves to submit details of sales. Due date of this return is 10th of every Quarter/Month

GSTR 2

The Purpose of this return serves to submit details of Purchases. Due date of this return is 15th of every Quarter/Month

GSTR 3

GSTR-3 is a final monthly return and will contain details of net tax liability considering the output and input tax

GSTR 1A

The purpose of this return is to rectify/resolve the mismatch in sales figures with your customers to whom you raise the tax invoice

GSTR 2A

The purpose of this return is to rectify/resolve the mismatch in purchase figures with your vendor from whom you obtain the tax invoice

GSTR 4

A business unit who opt the composition scheme. Requires paying to subsidize tax rates ranges from 1% to 5% & file quarterly return.

WHY SHOULD YOU FILE GST RETURNS ON TIME?

• Avoid Penalty – Failing to file GST Returns on time will attract penalty of INR 50 per day and maximum up to INR 5000 of each return
• Avoid Registration Cancellation – To be worst if you don’t file GST Returns on time your certificate might get cancelled
• Better Relationship with your prospects – Filing GST Returns on time will let your customers claim input credit smoothly hence maintain healthy relationship with good prospects
• Better Compliance Rating - Government of India has proposed to start compliance rating system under which scorecard of every GST registrant shall be maintained. The timely filing of GST returns is one of the key factors to compute such rating.