Goods and Services Tax (GST)
GST is one indirect tax for the whole nation, which will make India one unified common market.
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.
What is GST?
What are the types of GST?
When will GST come into effect?
GST stands for Goods and Services Tax. GST will be a single destination based consumption tax that will replace existing taxes, including CENVAT, Octroi, Sales Tax, and Excise Duty, etc. Unlike the old tax structure, where the state of origin received tax revenue, in the new GST model the state in which goods and services are consumed is the state that will receive the revenue.
What are the taxes proposed to be subsumed under GST?
GST introduction date is July 1, 2017.
Is GST charged on exported goods and services?
The Central Taxes proposed to be subsumed under CGST include
Central Excise duty
Additional Excise duties
Excise Duty levied under the Medicinal and Toiletries Preparation Act
Service Tax levied under Chapter V of the Finance Act, 1994
Additional Customs Duty, commonly known as Countervailing Duty (CVD)
Special Additional Duty of Customs (SAD)
Central Sales Tax
The state taxes proposed to be subsumed under GST are:
Entertainment tax (unless it is levied by the local bodies)
Taxes on lotteries, betting and gambling
State cess and surcharges in so far as they relate to supply of goods and services
Will there be a Central and State GST levied on all transactions in India?
No, GST is a consumption based tax. Because the place of consumption is outside India there is no GST on exported goods and services.
Will B2B transactions be subject to GST?
Yes, every transaction of supply in India will either be subject to: CGST and SGST
CGST and IGST
Unless the good or service is exempt.
What is an Input Tax Credit?
Yes, all procurement will be subject to GST but businesses will get a credit for B2B transactions. Please note that GST will have to be paid before a credit is received.
How can I view a full guide on registration?
The taxes you pay on input goods/services can be used as an Input Tax Credit (ITC) against output tax liabilities.
How and when should the returns be filed?
Input tax credits can be used as follows:
CGST input tax credits can only be used to pay CGST and IGST
SGST input tax credits can only be used to pay SGST and IGST
IGST input tax credits can be used to pay CGST, SGST, and IGST
This means you will need to maintain separate records of ITC utilization or refund of credit for State and Center taxes.
A common e-return for CGST, SGST and IGST is proposed in the draft law. Returns, that allow the auto-population of data from the vendors and automated matching of invoices, shall be filed online by a normal/casual taxpayer in a sequential manner within different cut-off dates. The various due dates proposed for the filing of returns are as follows:
It may be noted that most of the returns are auto generated by the GSTN system and the dealer is expected to validate the data and also fill in the missing data. It is also to be noted that the payment of the tax due, is a must for filing valid returns under the GST regime.
What is GSTIN?
How does GST apply to business?
Goods and Services Tax Identification Number (GSTIN) is a 15 digits state-wise PAN-based number to be used to identify businesses registered under GST.
What are the cases where GST registration is mandatory irrespective of turnover?
GST regulations are applicable if your annual turnover is Rs. 20 lakh or above. In case of North Eastern states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura) and hilly regions i.e. Himachal Pradesh, Uttarakhand, Jammu & Kashmir and Sikkim, the threshold limit is Rs. 10 lakh.
The registration is mandatory on crossing the annual turnover limit of Rs.19,00,000 ( for special category states it is Rs. 9,00,000).
If your turnover includes supply of only those goods/services which are exempt under GST, then registration is not required.
While calculating the turnover both taxable and non-taxable goods and services are to be included.
One registration shall be required for each state. The taxpayer can choose to get separate registrations for its different business verticals in the State.
Who is an existing taxpayer?
Those making inter-state supply of goods/services
Any person who supplies goods/services in a taxable territory and has no fixed place of business – referred to as casual taxable persons. Registration issued to such a person is valid for a period of 90 days.
Any person who supplies goods/services and has no fixed place of business in India – referred to as non-resident taxable persons. Registration issued to such a person is valid for a period of 90 days.
Person required to pay tax under reverse charge mechanism. Reverse charge mechanism means where the person receiving the goods/services has to pay tax instead of the supplier.
Agents or any other person who makes supply on behalf of other registered taxable persons
Distributors or input service distributors. This person has the same PAN as the office of the supplier. This person is an officer of the supplier, he receives supplies and issues tax invoice to distribute credit of CGST/SGST/IGST.
Persons who supplies (except branded services) via an e-commerce operator
Aggregator supplying services under his brand name
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.
Case. I run a departmental store in an Indian state and my business is already registered under State VAT(State Value Added Tax). Do I need to apply for fresh registration under GST?
A. If you are an existing taxpayer you will be transitioned to GST which simply means that now you will be considered as registered under GST. Initially, a provisional registration ID will be allotted which will be replaced by Final Registration ID on fulfillment of government conditions.
Do i need PAN to apply for GST registration?
An existing taxpayer is an entity currently registered under any State or Central laws, like Value Added Tax Act, Central Excise Act and Service Tax Act. Existing taxpayers include taxpayers already registered under :-
- Central Excise
- Service Tax
- State Sales Tax or VAT (except exclusive liquor dealers if registered under VAT)
- Entry Tax
- Luxury Tax
- Entertainment Tax (except levied by the local bodies)
For login to the GST Common Portal, can I use the username and password which I use to login as State Registrant?
PAN is mandatory to apply for GST registration.
Which information and documents are required to enrol with GST?
No, you cannot use the username or password that you use to login to the State VAT Portal.
For the first time login to the GST Common Portal, you need to provide the username and password that you received from the State VAT or Centre Tax Department. For subsequent login, you need to create a username and password during enrolment at the GST Common Portal. You can then use the username and password that you created to login at the GST Common Portal.
Who are exempted from GST Registration?
Before enrolling with the GST Common Portal, you must ensure to have the following information:
Provisional ID received from State/ Central Authorities
Password received from the State/ Central Authorities
Valid E-mail Address
Valid Mobile Number
Bank Account Number
1.Proof of Constitution of Business
• In case of Partnership firm: Partnership Deed
• In case of Others: Registration Certificate of the Business Entity
2.Photograph of Promoters/ Partners/ Karta of HUF
3.Proof of Appointment of Authorized Signatory
4.Photograph of Authorized Signatory
5.Opening page of Bank Passbook/ Statement containing Bank Account Number of < Account Number>, Address of Branch, Address of Account holder and few transaction details
How can I view a full guide on registration?
The following shall not be required to obtain registration, and will be allotted a UIN (Unique Identification Number) instead. They can receive refund of taxes on notified supplies of goods/services received by them:
Any specialised agency of UNO (United Nations Organisation) or any multilateral financial institution and organisation notified under the United Nations Act, 1947
Consulate or Embassy of foreign countries
Any other person notified by the Board/Commissioner
The central government or state government may, based on the recommendation of the GST council, notify exemption from registration to specific persons.
To view the artefacts, you need to perform the following steps:
1. Access the www.gst.gov.in URL. The GST Home page is displayed.
2. Under the Help menu given below the GST Home page, click the relevant artefact option. The relevant artefact is displayed.
||Address of principal place of business
||Madhukar Bhavan, Road no.16, Wagle Estate,Thane West - 400604.
||ITC Building, G-1/A, Ring Road, Majura Gate Crossing, Surat – 395002.
||Aloka Mansion No.19, 3rd Block, 10th B Main Road, Jayanagar, Bengaluru - 560011.
||001, Nova Goa Building, Dr. Atmaram Borkar Road, Panaji - 403001.
||Registration in process