The introduction of GST involves an improvement in our taxation system. While in the olden times, only service tax was charged on goods and services, there was the problem of double taxation that lead to the introduction of VAT, excise duty, etc. Now, the input credit of VAT is available against the output of VAT. Similarly, the input credit of excise duty is available only against its output. However, calculation of VAT also includes the value of excise. Thus, the problem of double taxation still persists in the society. In order to evade double charges and complications in our taxation system, the government has decided to introduce GST.
LIST OF DOCUMENTS FOR REGISTRATION
PAN CARD COPY
ADDRESS PROOF. PLACE OF BUSINESS
DETAILS OF BANK ACCOUNT
PROCEDURE OF REGISTRATION
INCLUSIVE IN OUR SERVICE
Preparation of Application
Filling of Application
Consultancy for GST registration
FREQUENTLY ASKED QUESTIONS
GST is one indirect tax for the whole nation, which will make India one unified common market. GST will be applicable to all businesses, small and large.
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
- For business and industry
- Easy compliance
- Uniformity of tax rates and structures
- Removal of cascading
- Improved competitiveness
- Gain to manufacturers and exporters
- For Central and State Governments
- Simple and easy to administer
- Better controls on leakage
- Higher revenue efficiency
- For the consumer
- Single and transparent tax proportionate to the value of goods and services
- Relief in overall tax burden
- At the Central level, the following taxes are being subsumed:
- Central Excise Duty,
- Additional Excise Duty,
- Service Tax,
- Additional Customs Duty commonly known as Countervailing Duty, and Special Additional Duty of Customs.
- At the State level, the following taxes are being subsumed:
- Subsuming of State Value Added Tax/Sales Tax,
- Entertainment Tax (other than the tax levied by the local bodies),
- Central Sales Tax (levied by the Centre and collected by the
- Octroi and Entry tax,
- Purchase Tax,
- Luxury tax, and
- Taxes on lottery, betting and gambling.
Keeping in mind the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.
The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of Central Excise.
Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST. However, the cross utilization of CGST and SGST would not be allowed except in the case of inter-State supply of goods and services under the IGST model which is explained in answer to the next question.
In case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution. The IGST would roughly be equal to CGST plus SGST. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one State to another. The inter-State seller would pay IGST on the sale of his goods to the Central Government after adjusting credit of IGST, CGST and SGST on his purchases (in that order). The exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The importing dealer will claim credit of IGST while discharging his output tax liability (both CGST and SGST) in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. Since GST is a destination-based tax, all SGST on the final product will ordinarily accrue to the consuming State.
For the implementation of GST in the country, the Central and State Governments have jointly registered Goods and Services Tax Network (GSTN) as a not-for-profit, non-Government Company to provide shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders. The key objectives of GSTN are to provide a standard and uniform interface to the taxpayers, and shared infrastructure and services to Central and State/UT governments.
Comprehensive IT infrastructure including the common GST portal providing frontend services of registration, returns and payments to all taxpayers, as well as the backend IT modules for certain States that include processing of returns, registrations, audits, assessments, appeals, etc. All States, accounting authorities, RBI and banks, are also preparing their IT infrastructure for the administration of GST.
There would no manual filing of returns. All taxes can also be paid online. All mis-matched returns would be auto generated, and there would be no need for manual interventions. Most returns would be self-assessed.
The Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently being levied on imports will be subsumed under GST. As per explanation to clause (1) of article 269A of the Constitution, IGST will be levied on all imports into the territory of India. Unlike in the present regime, the States where imported goods are consumed will now gain their share from this IGST paid on imported goods.
The major features of the proposed registration procedures under GST are as follows:
- Existing dealers: Existing VAT/Central excise/Service Tax payers will not have to apply afresh for registration under GST. But they are migrate from Existing VAT/Central excise/Service Tax to GST
- New dealers: Single application to be filed online for registration under GST.
- The registration number will be PAN based and will serve the purpose for Centre and State.
- Unified application to both tax authorities.
- Each dealer to be given unique ID GSTIN.
- Deemed approval within three days.
- Post registration verification in risk based cases only.