What is GST?
Goods and Service Tax (GST) is one of the most significant tax reforms introduced in the history of the Indian fiscal evolution. With a singular impact on the economic growth of the country and the way business is done in India, it is expected to achieve the following:
Convert India into one market by seamless flow of tax credits – today some taxes are not creditable when goods move outside an Indian State, service tax credit is not available to a trader or a services unit cannot claim credit of Value Added Tax (VAT) paid on goods.
- Multiple taxes to be replaced by singular tax making compliance easier
- Number of tax rates to be reduced substantially making life easier and disputes lesser
- Compliance process to become uniform due to singular IT portal where business and government agencies interact – this can also reduce human interaction and bring transparency in operations
- Business decisions may not be driven by tax considerations as most of the taxes will be creditable, bringing in overall efficiency in business operations spurring economic growth.
- Electronic filing and online credit matching would substantially reduce
- Non-compliance and tax frauds – this may provide significant boost to honest businesses.
Eligibility of GST registration
GST registration will apply when turnover of business exceeds Rs.20 Lakhs ( Limit is Rs.10 Lakhs for North Eastern Area )
*North Eastern Area includes Arunachal Pradesh; Assam; Manipur; Meghalaya; Mizoram; Nagaland; Sikkim; Tripura.
If an entity undertakes inter-state of good and/or services, then GST registration must be mandatorily, irrespective of aggregate annual turnover.
Internet business aggregators/E-Commerce Seller are mindful under the GST law for gathering and storing charge at the rate of 1% from every exchange. Any
merchants/brokers offering products/administrations online would get the installment after conclusion of 1% impose.Every one of the brokers/merchants offering
merchandise/administrations online would need to get enlisted under GST regardless of the possibility that their turnover is under 20 Lakhs for guaranteeing the
expense deducted by aggregators.
- Casual Tax payable Person
A casual tax payable person is a person who occasionally supply goods/ services having no place of business.
All enterprises/Entities/Companies having DVAT or any other state VAT, Service tax registration or Central Excise registration must be registered
under GST mandatorily.
Documents required for GST Registration for Proprietorship
- Passport Size Photo of Proprietor / Authorized Signatory
- Active Email Id
- Current Mobile Number
- PAN Card of Individual
- Aadhaar Card of Individual
- ID proof of Individual : Passport / Voter Id Card / Driving license / Aadhaar Card
- Address proof of office Premises (Any 2 ) :
- Electricity Bill / Landline Bill/ Municipal Tax Copy, Rent/Lease Agreement, No objection Certificate (in case of premises of relatives), any certificate or Record from Government Department.
- Cancelled cheque of Bank account showing name of account holder, MICR code, IFSC code and Bank branch details.
- First page of Passbook or Bank Statement.
- Authority letter ( in case of Authorized signatory )
- Application Filing
- Professional Fees
- Provisional Certificate ( Goods and Service Tax Number )
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