GST Filing & Registration GST Filing & Registration

 Outline for GST

I. Introduction to Goods and Services Tax (GST) 
   A. Definition of GST 
   B. Overview of GST 
   C. Purpose and benefits of GST
II. GST Registration 
   A. Eligibility criteria for GST registration 
   B. Process of GST registration 
   C. Document requirement for GST registration 
   D. Timeline for GST registration
III. GST Compliance and Reporting 
   A. GST returns filing 
   B. Payment of GST 
   C. Importance of GST compliance
IV. GST FAQs 
   A. Common questions and answers about GST 
   B. Clarifications on GST rules and regulations

I. Introduction to Goods and Services Tax (GST)
GST Law was introduced w.e.f. 01st July 2017, as an Indirect Tax which subsumed the Central & State Tax levies, thereby resulting in ease of business, the mantra given by our worthy Prime Minister Sh. Narendra Modi.

Definition of GST: 
GST stands for Goods and Services Tax and is a type of tax applied to the sale of goods and services in India. The main purpose of GST is to simplify the tax system by replacing multiple taxes with a single, unified tax. This helps to reduce tax evasion and create a seamless market across the country. GST is applied at each stage of the supply chain but businesses can claim credit for taxes paid on inputs, making the final tax burden on consumers lighter. The goal of GST is to increase revenue and support economic growth.

Overview of GST
GST was introduced with a prime objective of “ONE NATION:ONE TAX” motto. Which will cover all the 3 major sectors i.e., Manufacturing, Trading & Service industries.

Why was the GST implemented?

1. Cascading Effect
2. Multiple Registrations under various Central & State Laws
3. Different Point of Taxation (As each law was having its own definition for the same)
4. Lack of Uniformity (In applicability & Tax Rate)
5. Goods vs. Services Differentiation (Whether Sale of Goods or Services)

Tax Rates under GST
Following are the Tax rates under GST:

For Regular Tax Payers

For Composition Tax Payers

For TDS/TCS under GST
Applicable only when the amount payable under a contract during the Financial Year exceeds Rs. 2.5 Lakhs, then the person making payment will be liable to deduct the same.

For Cess
For Cess the rates start from 1% to 204% i.e. applicability on Tobacco, Cigarettes, Aerated Water, Petrol & Motor Vehicles.
For Detailed Tax Rates, please refer to
https://cbic-gst.gov.in/gst-goods-services-rates.html

C. Purpose and benefits of GST:

• Reducing the cascading effect of multiple indirect taxes by replacing multiple indirect taxes with a single tax.
• Ease of Doing Business by providing a unified tax system and reducing the need for multiple returns and payments.
• Increased revenue collection by reducing tax evasion and creating a more transparent tax system.
• Promoting economic growth by creating a seamless national market and reducing the tax burden on businesses and consumers.
• Help in reducing the Inflation.
• Improving competitiveness by eliminating barriers created by different tax systems in different states.
• Boosting exports by reducing the tax burden on exporters and simplifying the export process.
• Make in India- Dream come true, by helping out the Domestic Industries and Exports being done at ZERO Rated Tax Rate.
  
  II. GST Registration
  A. The eligibility criteria for Goods and Services Tax (GST) registration are as follows:
  
  Types of GST Registration
  1. Regular Registration
      1. Business turnover: If the annual turnover of a business exceeds the specified limit, it is mandatory for the business to obtain GST registration. The current turnover limit for GST registration in case of Goods is INR 40 lakhs & for Services is INR 20 lakhs for most states in India, but it is INR 20 lakhs for certain special category states.
      2. Type of business: All businesses involved in the supply of goods or services, including e-commerce operators, are required to register for GST.
      3. Place of business: If a business has a taxable presence in more than one state, it must obtain separate GST registration in each state.
      4. Proprietary concern: Proprietary concerns, such as sole proprietorships, are also eligible for GST registration.
      5. Casual taxable person: If a person occasionally undertakes taxable supplies, he/she can apply for GST registration as a casual taxable person.
  2. Composition Registration
      This is a sort of liberalised form of GST Registration, which has lesser number of Returns, and a simplified Tax Payment Mechanism.
      The applicability is only for the Businesses having Annual Turnover less than Rs. 1.50 Cr during the year.
      Under this scheme, the Traders are required to pay a fixed amount of Turnover on their Total Sales irrespective of the Goods falling under Tax Slab as per GST Tax Schedule.
      Also, they have to file the GST Returns every Quarter only.
  3. Non-Resident Registration
      This type of registration is applicable only for Non-residents who occasionally supply goods/services to Indian Residents i.e. acting as an agent/principal.
     As per the present laws applicable, presently this type of registration is granted for a period of 3 months, which can be renewed/extended if required.
      Also, the Non-resident has to deposit the GST in advance to be calculated on an estimated basis.
  4. Casual Trader Registration
      This type of registration is applicable for Casual/Seasonal businesses only.
     As per the present laws applicable, presently this type of registration is granted for a period of 3 months, which can be renewed/extended if required.
      Also, the Business Owner has to deposit the GST in advance to be calculated on an estimated basis.
  B. Process of GST registration: - 
      1.Obtain a PAN (Permanent Account Number) and bank account: A PAN is required to register for GST and the bank account will be used to make payments.
      2. Apply for GSTIN (Goods and Services Tax Identification Number): This can be done through the GST Portal
          (www.gst.gov.in) by filling out an online application form.
      3. Submit required documents: The following documents are required to complete the registration process: PAN, bank account details, proof of business address, and a passport-sized photo of the authorized signatory.
      4. Verify application: Once the application and documents are submitted, the GST Portal will verify the information and send an OTP (One Time Password) to the registered mobile number for verification.
      5. Receive GSTIN: Once the verification is complete, the GSTIN will be issued and can be accessed through the GST Portal.
      6. File returns: Registered businesses are required to file periodic returns and pay taxes based on their GST liability.
       The process of GST registration can usually be completed within 7-10 days of submitting the online application and required  documents. It is important to ensure that all information provided during the registration process is accurate and up-to-date to avoid any issues in the future.
  C. Document requirement for GST registration
  
  

D. Timeline for GST Registration: -    
     The period for applying for GST registration is within 30 days from the date when Taxpayer becomes for liable for GST.
III. GST Compliance and Reporting
     Goods and Services Tax (GST) compliance and reporting involves the following:
     A. GST Returns Filing: Registered businesses are required to file periodic returns (such as GSTR-1, GSTR-2, GSTR-3) to report their sales and purchases, and pay taxes based on their GST liability.
     B. Payment of Taxes: Businesses are required to pay taxes on the basis of their GST liability. This can be done through the GST Portal using a credit or debit card, net banking, or through a Challan.
    C. Importance of GST compliance: - 

- Record Keeping: Businesses are required to maintain detailed records of all their sales and purchases, including invoices and receipts, to support the information reported in their GST returns.
- Audit: Businesses may be required to undergo a GST audit if their turnover exceeds a certain limit, or if the tax authorities believe that the business has engaged in tax evasion.
- Refunds: Businesses can claim a refund of GST paid on inputs (goods or services used in the production of taxable supplies) if they are eligible.

IV. GST FAQs
Below are some commonly asked questions about Goods and Services Tax (GST) in India:
1. What is GST?
    GST is a value-added tax system in India that replaces multiple indirect taxes with a single tax.
2. Who is required to register for GST?
    Businesses whose annual turnover exceeds the specified threshold limit are required to register for GST.
3. What are the benefits of GST?
   GST simplifies the tax system, increases revenue collection, promotes economic growth, reduces the cascading effect of taxes, improves competitiveness, eases compliance for businesses, and boosts exports.
4. What are the different types of GST returns?
    The different types of GST returns are GSTR-1, GSTR-2, GSTR-3, GSTR-9, GSTR-9C, GSTR-10, GSTR-4, and GSTR-5.
5. What are the consequences of non-compliance with GST regulations?
    Non-compliance with GST regulations could result in penalties, legal consequences, and reputational damage.
6. How can I make a GST payment?
    GST payments can be made through the GST Portal using a credit or debit card, net banking, or through a Challan.
7. Can I claim a refund of GST paid on inputs?
    Yes, taxpayer can claim a refund of GST paid on inputs if they are eligible like they are engaged in business of exporting the goods.
8.  Can I take credit of Goods partly used for business or taxable purpose?
    Yes, off course one can take input tax credit on Goods and Services partly used for business or taxable purpose.
9. Can I cancel my GST Registration Number?
    You can cancel your GST registration in following cases:
    (1) Voluntary Cancellation: The tax-payer can voluntarily cancel his or her GST registration number.
    (2) The operations of the business have been ceased or the company has been stricken off or wound up.
    (3) The GST officer also have the powers to cancel the certificate of the tax-payer in case he does not comply with the GST norms.