The Goods & Services Tax (GST) was implemented on 1 July 2017 and applies to all Indian service providers (including freelancers), traders, and manufacturers. A number of central taxes, such as Service Tax, Excise Duty, and CST, and state taxes, such as Entertainment Tax, Luxury Tax, Octroi, and VAT, have been merged into a single tax, GST, which went into effect on July 1, 2017. The GST is to be levied at each stage of the supply chain, and full set-off benefits are available. The GST process is fully electronic and requires no human participation.
Every product through numerous steps in the supply chain, including the acquisition of raw materials, manufacture, sale to the wholesaler, sale to the retailer, and sale to the end customer. Interestingly, the GST will be applied to each of these three stages. If a product is made in West Bengal but consumed in Uttar Pradesh, Uttar Pradesh will receive the entire revenue.
In addition, taxpayers with a turnover of less than Rs.1.5 crore can choose for the composition scheme to eliminate cumbersome GST paperwork and pay GST at a fixed rate of turnover.
GST will contain 3 tax components, including a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST), with centre and state levying GST on all entities, i.e. when a transaction occurs inside a state. Interstate transactions will be subject to the Integrated Goods and Services Tax (IGST), which will be collected by the central government, i.e., when a transaction occurs across states.
Input tax credit allows you to lower the tax you've previously paid on inputs and pay the difference at the time of tax payment.
You pay taxes on the purchase when you purchase a product from a registered seller, and you also collect the tax when you sell the product. With input credit, you can reconcile the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the remaining tax burden, which is the difference between tax on sale and tax on buy.
Every firm or organisation involved in the purchase and selling of services must register for the GST. Companies whose annual revenue exceeds Rs.20 lakhs (for supply of services) and Rs.40 lakhs (for supply of commodities) are required to register for GST.
All enterprises that export goods over state lines must also register for the GST. The same rule applies to firms, such as agents and brokers, that make taxable supplies on behalf of other taxable persons.
Also, according to the latest notification, e-commerce vendors and aggregators are not need to register if their annual sales are less than Rs.20 lakhs.
The tax rates for all items can be viewed at https://cbec-gst.gov.in/gst-goods-services-rates.html.
Check out the GST calculator, which is useful for calculating the Goods and Services Tax using various tax brackets.
A GST return is a document providing income information that must be filed with the tax authorities in accordance with the legislation. Under the GST law, a taxpayer is required to file two monthly returns and one annual return. All returns must be filed electronically. There is no provision for correcting the returns. All unreported invoices from the prior tax period must be included in the current month.
A registered dealer must file GST returns containing the following information: Purchases, Sales, Output, GST (On sales), and Input tax credit (GST paid on purchases).
What exactly is GSTIN?
A GSTIN is a unique identifying number assigned to each taxpayer who pays GST. A user with a GST number can log into the GST portal to verify a GSTIN.
What exactly is the Goods and Services Tax Network (GSTN)?
The Goods and Service Tax Network (or GSTN) is a non-government, section 8 (non-profit) private limited business. GSTN is a one-stop shop for all indirect tax-related needs. GSTN is responsible for providing the Indirect Taxation platform for GST to assist you in preparing, filing, correcting, and paying your indirect tax obligations.
Documents required for Online GST registration - Mumbai
The following is a list of documents required for GST registration for various businesses:
• PAN Card and address proof of proprietor LLP • PAN Card of LLP • LLP Agreement • Partners' names and address proof Private Limited Company • Certificate of Incorporation • PAN Card of Company • Articles of Association, AOA • Memorandum of Association, MOA • Resolution signed by board members
• Digital Signature
The following can serve as evidence of a director's address:
- Passport; Voter Identification Card; Aadhar Card; Ration Card; Telephone or Electricity Bill; Driver's License; Bank Account Statement
PAN cards and Aadhar cards can be used as identification documents. For address verification, any director may provide a voter identification card, passport, telephone bill, power bill, or telephone bill.
Through the iCFO platform, one of our GST professionals will collect all necessary papers and handle the GST application.
After collecting all required documents, the application will be processed and filed. Then, the ARN number will be issued instantly.
GST Registration Certificate
The GST registration certificate and GST number will be issued when the GST officer verifies the GST application and other required papers. Note that no paper copies of the certificate will be supplied, but that the certificate can be accessed through the GST Portal.
Penalties For Failing To Register For GST
According to Section 122 of the CGST Act in India, all taxable persons who fail to register for GST are subject to a straight penalty.
Even though it is not required by law, any small firm with a revenue of less than 20 lakh rupees can voluntarily register for the Goods and Services Tax (GST). Some of the benefits of registering voluntarily for GST are as follows:
A GST Return Filing is a return document that contains information about the taxpayer's income. It must be submitted to the GST administrative body. The document is used by tax authorities to compute a GST taxpayer's tax liability. A GST Return Filing Form must contain the following information.
• Output GST (On sales) • Sales
• Credit for input tax payments (GST paid on purchases)
Attached to your GST Return must be sales and purchase invoices compliant with GST.
We have a staff of CA, CS, and Lawyers that are professionals in Accounting and Taxation who will handle your GST registration and compliance.
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