GOODS AND SERVICE TAX (GST): THE BIGGEST TAX REFORM (official GST portal Login -www gst gov in)
Since long time Goods and services were taxed under Value Added Tax (VAT), Service Tax, Excise Duty tax and various other tax laws separately which created chaos and also at times lead to levying of double taxation on some goods and services. GST Registration in India with GST portal Login at www gst gov in came into emergence i.e. Goods and Service Act was levied on goods and services to simplify the indirect taxation system. GST online Registration can be done on gst portal at services gst gov in or from www gst gov in login. It is a comprehensive, multi-stage, destination-based indirect tax levied subsuming all the central and state taxes levied with a single unified value-added tax transforming the nation into one single market. The major tax laws were subsumed to reduce the multiplicity of taxes which also ease the process of tax payments under single website at services gst gov in. 101st amendment in the constitution defines GST under article 366(12A) where it means the tax on supply of goods or services or both except the tax on supply of alcoholic liquor for human consumption. Goods and Service Tax is levied on the supply of goods and services at each stage of the distribution channel from manufacturer to the consumer which can be taken care of by consulting www gst gov in login which is the official Gst portal. GST was considerably based on VAT principles where the credit system was implemented. The value added at each stage is subjected to GST and the ultimate burden is on the final consumer who ultimately consumes the good or service. Goods and Services Tax online Registration was introduced in the country after a 13-year long journey through it’s GST portal www gst gov in portal, since it was first discussed in the report of the Kelkar Task Force on indirect taxes. Delayed since then it was with the recommendations of the Empowered Committee and the recommendations of the Parliamentary Standing Committee in 2013 ultimately enacted the implementation of Goods and services tax.
GST subsumed various taxation laws which were as follows:
At the Central level, the taxes 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 taxes 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 States),
- Octroi and Entry tax,
- Purchase Tax, Luxury tax, and
- Taxes on lottery, betting and gambling.
These all in one tax can be paid on GST portal after www gst gov in login
GST is an Indirect Tax different from the Direct Tax.
Direct tax is the tax which is paid to the government by the person on whom the burden is directly imposed. On the other hand, indirect tax is not paid to the government directly by the person on whom the ultimate burden is imposed. This explains the difference between Direct and Indirect tax:
- Direct Tax is progressive as it increases with the amount to be taxed whereas indirect tax is retrogressive as it reduces.
- The impact of the direct tax is on a single person who is paying the tax. However, indirect tax is collected from the consumers through various intermediaries. The taxpayer is different from the person on whom the entire tax is imposed.
- In direct tax, the burden cannot be shifted to another person but in indirect tax, the burden is shifted among various intermediaries and ends up with the ultimate consumer.
- Direct tax is charged on the income of the person and indirect tax is charged on the supply of goods and services. Therefore, the indirect tax has more coverage as it levied on the consumption of goods. The direct tax has less coverage because it is imposed on the income of only the employed person.
- The direct tax return is a complication because it has to comply with a number of exemptions, deductions, rebates etc and on the other hand, indirect tax does not have big compliances to take care about.
- Direct tax helps to reduce inequalities comparative effective than indirect tax since it imposes a higher tax on the high income person than on the low income person.
- It is easier to evade direct tax because it is related to the income of a person and it can be depicted as unemployed or not in the non-taxable slab, however, indirect tax is on the consumptions basis which cannot be manipulated.
Since Goods and services tax shifts the burden of taxpaying through the intermediaries to the ultimate consumer, it is an indirect tax.
GST Online Registration with www gst gov in portal
Goods and services tax is the ultimate tax reform awaited and struggling since last 12 years to be implemented. GST website aimed to ease out the business operations and bring all the traders, even small traders, to increase the number of taxpayers. Under the Online GST registration in India, the entities involved in buying, selling or providing goods or services or manufactures fall under the eligibility of Goods and services tax registration online. It is compulsory for all the traders beyond the threshold mentioned to obtain GST registration online at www gst gov in portal. The eligibility for Online GST registration application is further discussed:
Who Should Register for GST Application on GST website?
Goods and services tax Registration in India has been made mandatory for the following:
- Individuals registered under the Pre-GST law i.e., Excise, VAT, Service Tax etc. meaning thereby all the existing traders under taxation laws before Good and service tax.
- Businesses with turnover above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
- Casual taxable person / Non-Resident taxable person
- Agents of a supplier & Input service distributor
- Those paying tax under the reverse charge mechanism
- Person who supplies via e-commerce aggregator and e-commerce aggregators as well
- Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person
Online Good and service tax registration in India on GST website is to be done just once and is applicable for the lifetime of the entity and it does not require any renewal. The Goods and services tax online registrations have compulsorily made online and all the traders have to fill online GST application and then to handle their tax payments consult www gst gov in login and for other services gst gov in.
DIFFERENT TYPES OF GOODS AND SERVICE TAX
Initially, India had taxation system various taxes were levied. The power to levy these taxes was distributed among Central Government and State Government. India is a federal Government structure where both Central and State are given powers in the administration. The structure was such that Sales and VAT tax were under the jurisdiction of the State and Excise Duty and Service Tax were levied under Central Government. It was distributed on the basis that Central had power overproduction of goods and services and State had over sales of goods and services. This is because both Central and State had duties and responsibilities to perform which requires raising tax revenue. This was leading to cascading effect i.e. tax on tax on the same good or service was seen to be levied.
The introduction of Good and service tax through GST website was to eliminate this cascading effect where the good or service should be taxed just once. GST subsumed all the taxes into one single tax where both central and state can levy tax on the supply and consumption of goods and service. To formulate this, dual Goods and services tax model was implemented. GST Dual Model has categorized three components i.e. Central Goods & Services Tax (CGST), State Goods & Services Tax (SGST) or Integrated Goods & Services Tax (IGST) on the basis of inter- state and intra- state transactions.
The concept of inter- state and intra- state transactions is important to determine the applicability of CSGT, SGST and IGST which can be accessed from www gst gov in login.
Intra-State supply of goods or services
When the supplier of the goods and service and the receiver i.e. buyer are both located in the same state, it is intra- state transaction. Both CGST and SGST are imposed on the buyer in the intra- state transaction. The CGST and SGST collected is deposited to Central and State government respectively.
Inter-State supply of goods or services
When the supplier and receiver are in different states which include transactions made to SEZ unit and export and import of goods and services is said to be inter- state transaction. In this case, IGST is imposed on the buyer. These ledger, payments and returns can be managed at services gst gov in.
This is the tax levied on the intra- state transaction of all goods and services and will be regulated by the CGST Act. The revenue from this is deposited to the Central government.
This is the tax levied on the intra- state transaction of all goods and services and regulated by SGST Act. The revenue from this tax is deposited to state government.
This is the taxed levied on the inter- state transaction of goods and services regulated by IGST Act. The deposited revenue from the tax is shared between State and Central Government.
Various GST Tax Slabs in India
The government has categorized items in various slabs – 0%, 5%, 12%, 18% and 28%. Go to www gst gov in login to know more about your slab category and further GST rates.
1. No Tax (0%)
Goods – No Good and service tax Rates are imposed on goods like sanitary napkins, deities made of stone, marbles or wood, Rakhis without any precious metals like gold, silver, raw material used in brooms, Saal leaves and fortified milk, fruits, vegetables, bread, salt, curd, natural honey, bangles, handloom, besan, flour, eggs, stamps, printed books, judicial papers, newspapers
Services – All hotels and lodges who carry a tariff below ₹ 1,000 are exempted from taxes under Good and service tax. The list also includes IMM courses and bank charges on the savings account\
2. GST Slab rate of 5%
Goods – The goods which will attract a taxation of 5% under Goods and services tax rates include skimmed milk powder, fish fillet, frozen vegetables, coffee, coal, fertilizers, tea, spices, pizza bread, kerosene, ayurvedic medicines, sliced dry mango, insulin, cashew nuts, lifeboats , Ethanol- Solid biofuel pellets- Handmade carpets and other handmade textile floor coverings
Services – Small restaurants along with transport services like railways and airways, Standalone ACs non-ACs Restaurants and those which serve liquor, Takeaway Food, Restaurants in hotels with a room tariff less than ₹7,500 (no input credit for these restaurants), will come under this category of GST Rates. Special flights for pilgrims (Economy Class) come under 5%.
3. GST Slab rate of 12%
Goods – Items coming are the tax slab of 12% include frozen meat products, butter, cheese, ghee, pickles, sausage, fruit juices, tooth powder, medicine,umbrella, instant food mix, cell phones, sewing machine, man-made yarn, -Handbags including pouches and purses; jewellery box, Wooden frames for painting, photographs, mirrors etc, Ornamental framed mirrors, Brass Kerosene Pressure Stove, Art ware of iron, etc.
Services – Business class air tickets will attract a tax of 12% under GST rates. The slab also includes movie tickets priced under ₹100
4. GST Slab rate of 18%
Goods –Most of the items are part of this tax slab. Some of the items are flavored refined sugar, cornflakes, pasta, pastries and cakes, detergents, washing and cleaning preparations, safety glass, mirror, glassware, sheets, pumps, compressors, fans, light fitting, chocolate, preserved vegetables, tractors, ice cream, sauces, soups, mineral water, deodorants, suitcase, vanity case, oil powder, chewing gum, hair shampoo, Refrigerators, Water Heaters, Washing Machines, Televisions (up to 68 cm), Vacuum Cleaners, Paints, Hair Shavers, Hair Curlers, Hair Dryers, Scent Sprays, Lithium-ion batteries, detergent, stones used in flooring, marble & granite, sanitaryware, carriage accessories for disabled, etc
Services – Restaurants located inside hotels with tariffs of ₹7,500 and above, outdoor catering (input tax credit to be available), movie tickets priced above ₹100, actual bill of hotel stay below ₹7,500, IT and Telecom services and financial services along with branded garments will be part of this tax slab.
5. GST Slab rate of 28%
Goods – Over 200 goods will be taxed at a GST rates of 28%. The goods which will be part of this category under GST are sunscreen, pan masala, dishwasher, weighing machine, paint, cement, vacuum cleaner. Other items include automobiles, hair clippers, motorcycles.
Services –five-star hotels, whose actual bill of hotel stay above ₹7,500, racing, movie tickets and betting on casinos and racing will come under this category.
PROCESS OF GST REGISTRATION IN INDIA
The registration of GST IN India is made completely online through GST Portal www gst gov in maintained by the Central Government. The following is the procedure for the registration of Good and service tax Registration online:
1. GST portal is to resort that initiates the registration under Taxpayer option. The New GST registration application has two parts in the form i.e. Part A and Part B before GST portal Login.
2. The applicant has to submit the following under Part A:
- Type of taxpayer
- State and district where the applicant will transact
- Business name and PAN of the business for verification
- The mobile number and email address for verification
3. With the completion of the verification process, a Temporary Reference Number(TRN) is received through the registered mobile number and email address mentioned.
4. Mentioning the Temporary Reference Number(TRN), the applicant has to fill Part B of the form. All the documents required for the registration are to be uploaded for further verification on GST portal.
5. After fulfilling all the required, the declaration is required to be given with an e- signatures or digital signatures.
6. An Application Reference Number is received through the registered mobile number and email address.
7. The Good and service tax is successfully registered through gst website within 7 days and GSTN is obtained.
REASONS FOR ONLINE GST REGISTRATION IN INDIA via WWW GST GOV IN PORTAL
The GST was due to be launched for years to resolve certain cumbersome issues. The reasons for online GST Registration in India and need for GST portal are as follows:
- It was a new tax system eliminating various other taxes such as VAT, Service Tax, Excise Duty etc. This amalgamation brought traders from different taxes under one purview which is newly established. This increased the number of traders to lakhs, if registration would have been made offline other than Gst website it would have led to chaos and big lines in the offices.
- The online GST registration saved a lot of time and speed up the procedure otherwise it would have taken a year to just register all the sellers under GST if not registered through GST portal Login.
- No requirement of hard copies or physical printouts can be said to be the best feature of online registration facility.
- This is also one step towards paperless digitally advance country.
- It simplified the registration process and made the compliance of all the requirements easier at GST portal.
- Gst website also eliminates the corruption i.e. the applicant has to no longer face unnecessary demands to get the work completed.
- It also reduces the cost that could have incurred in the physical registration process.
BENEFIT OF GST REGISTRATION IN INDIA (website – www gst gov in)
- Unified taxation system
With the New GST Registration in India using GST portal Login various other tax laws have been dissolved leading to one standard tax law that imposes the tax on the goods and services as per different GST rates. Afterwards for further payments and returns consult services gst gov in . It brings uniformity in the taxation system provide one common national market to the country.
- Elimination of the cascading effect
With different tax laws in force, repetitive taxes were imposed on the same goods or service. This tax on tax effect is brought to end with the implementation of Good and services tax.
- Increased the ambit of Registration
The threshold of registration in Good and service tax is increased providing an advantage to small and new sellers in business. The threshold in VAT was Rs. 5 lakhs and service was Rs. 10 lakhs which are increased to Rs. 20 lakhs in GST.
- The implementation of Composite Scheme
The small businesses have been given benefit under the composite scheme to reduce their burden. The sellers having turnover ranging from Rs. 20 lakhs to Rs. 50 lakhs have been an option to lower tax rate imposition.
- Less number of compliances and easy process
The New GST registration in India was provided through online GST portal Login i.e www gst gov in portal which makes it a paperless process. This simplifies and eases the process of registration and tax returns. The single tax system has also reduced the number of compliances that has to be followed when there where different tax laws and had to be complied individually.
- GST covers the unorganized sector as well
The unorganized sector which was out of the ambit of other tax laws like VAT, Service Tax etc has been covered in good and service tax. The small traders that use to conduct business without filing returns under previous existing taxation system are considered to be taxable in the GST laws. Now they handle all their gst services at services gst gov in .
Documents Required for GST Registration Online by WWW GST GOV IN Portal
The GST registration online on GST website requires the fulfillment of the following documents for the registration process:
- PAN of the Applicant
- Aadhaar card of the Applicant
- Proof of business like partnership deed, Memorandum of Association (MOA) /Articles of Association (AOA), certificate of incorporation
- Identity and Address proof of Promoters/Director with Photographs
- Address proof of the place of business like rent agreement or electricity bill
- Bank Account statement/Cancelled cheque
- Digital Signature
- Letter of Authorization/Board Resolution for Authorized Signatory
Various Advantage of getting a GST Registrations Certificate in India
- The Good and Services Tax is levied on the supplier of the goods or service as per their gst rates. The GST Registration Certificate provides legalized recognition to the seller.
- The New GST Registration Certificate implies that the seller has a good turnover above the relief threshold. This brings reputation and brand image to the business.
- It leads to ease in business transactions.
- It permits inter- state transaction to sellers.
- The person registered under GST at (www gst gov in portal) can alone get the benefit of Input Tax Credit system.
- This legalizes the seller to collect tax on the good or service provided to the buyer.
- The seller can claim the input tax credit on the GST paid.
- The credit received can be utilized for the payment of GST to be paid by the seller.
- GST number received on www gst gov in login is mandatory for taking up any Government Contracts.
- This provides benefit to small businessmen by implementing lower Gst rates under the composite scheme.
- It is conclusive proof of compliance to GST laws and exempts from any penalty for the same.
FAQ’s about New GST Registration in India
Question 1: What is Composite Scheme? Who can avail this scheme?
Goods and Services Tax provided a special benefit to the small traders or new entrepreneurs where it established an alternative method to impose the tax on those traders whose turnover does not exceed Rs. 75 lakhs and Rs. 50 lakhs for the northeastern states in India. The benefit available in this scheme is to reduce the number of compliances and lower the tax rate impose under GST in India. The rate for trader under this scheme shall be 1% of the turnover in the state.
Question 2: Can the Composite scheme be accessed by every service provider?
Not every service provider can apply under Composite scheme. Only the restaurants that do not serve alcohol are eligible to apply under Composite Scheme.
Question 3: Persons (traders) out of purview or eligible for composition scheme?
Persons who will not be eligible for composition scheme:
- Supplier of services (except restaurants)
- A person engaged in making any supply of goods which are not taxable under this Act;
- A person engaged in making any inter-State outward supplies of goods;
- A supplier making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and
Therefore, it can be said that the traders who wish to register in Composite scheme have to be supplying goods intra-state. He shall not be allowed for the scheme if he supplies inter-state.
Question 4: Can a registered person at www gst gov in portal, who purchases goods from a trader paying tax under the composition scheme, take credit on purchases made from the composition dealer?
GST states that a trader registered opting to pay tax under the composition scheme is out of the credit chain. He can neither take credit on his input supplies nor issue a taxable invoice to his buyer. He is required to issue a bill of supply and cannot charge tax from the recipient. Therefore the person purchasing from him cannot take any credit.
Question 5: A person availing composition scheme during a financial year crosses the turnover of Rs.75 Lakhs/Rs. 50 Lakhs during the course of the year i.e. say he crosses the turnover of Rs.75 Lakhs/Rs. 50 Lakhs in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st March?
The benefit of Composite scheme is available until the turnover is 75 lakhs/50 lakhs. The benefit availed in this scheme shall stand to decline since the day when his turnover during the financial year exceeds Rs. 75 Lakhs/50 Lakhs. Once the trader goes beyond the threshold, he has to file intimation for withdrawal from the scheme within seven days of passing the threshold. Every person who has furnished such an intimation, may electronically furnish at the common portal with the details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock as well as the capital goods held by him on the date on which the option is withdrawn, within a period of thirty days from the date from which the option is withdrawn.
Question 6: What is GSTIN
The GSTIN is the 15 digits pan based state-specific registration Number and first two digits denote the state code. Goods and Service Tax Identification Number is a unique identification number allocated on Online GST Registration done on www gst gov in portal to every taxpayer.
Question 7: Is it necessary for Agents or brokers to register for GST or limit of 20 lakhs is applicable to them?
The GST rule says that it mandatory for the person who supplies taxable goods or services as an agent to the other person. This makes it clear that an agent or broker has to mandatorily get registered irrespective of their turnover. It implies that agent has to obtain Online GST registration to be able to supply goods or services on the behalf of the principle.
Question 8: Can same GST online registration application applicable for different states?
The GST online Registration is Pan and State specific. It is required for the reader to register separately at www gst gov in portal for each state or union territory where supply or sales are affected. Even the GSTIN number has 2 digits specific state code. Online GST Registration is unfortunately not tax specific.
It can be said that GSTIN for a PAN specific legal entity is for a particular state which implies that a business entity having branches in multiples states would be required to obtain GST online registration separately for each state for the branches in different states. On the contrary, it would not be required to obtain multiple registrations if the business entity has intra-state different branches within the particular state. This is when it registers one entity as the principal place of business and others as an additional place of business. But if a business entity has different business verticals even within the same state, it would still be required to obtain separate GSTIN registration for the same. Consult www gst gov in login to handle your account and for services gst gov in .
Question 9: Will cross utilization of credits between goods and services be allowed under GST regime?
The cross utilization of credits means using the credit received for CGST to use used for SGCT or vice versa. Cross utilization of credit of CGST for goods and services is allowed. Similarly, the benefit of cross utilization is applicable for SGST for goods and services. On the contrary, the cross utilization of CGST and SGST is not applicable in India. The cross utilization of credit in such terms is allowed in inter-state transaction under IGST only with SGCT or CGST.
Question 10: How will be Inter-State Transactions of Goods and Services be taxed under GST in terms of IGST method?
The Integrated Goods and Services Tax (IGST) are imposed on business entities undergoing inter- state transactions for supplies on goods and services. 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.
Question 11: What are the Penalties for not registering under GST ?
The GST Act is stringent regarding the compliance of the tax laws. The penalty imposed shall be not less than 10% of the unpaid amount or Rs 100 if that the calculated 10% is less which may extend upto 100% of the tax amount.
Summing up Goods and services tax is enacted in India to ease out the functioning of the business and reduces the chaos of multiple taxes and cascading tax on tax effect on the goods and services. This is mandatory for all the business entities in India to register in GST at www gst gov in portal and become Good and Service Tax compliant then handle their payments by www gst gov in login. Company Vakil aims to simplify Goods and services tax for the business entities. It provides assistance in GST online registration on GST website www gst gov in and to obtain GSTIN with great ease. It also provides consultation on GST returns.