GST registration
Released on July 1 2017, the Goods & Services Tax (GST) wides to all Indian service providers (including freelancers), traders and manufacturers. A long frame of Central taxes like Service Tax, Excise Duty, CST and state taxes like Entertainment Tax, Luxury Tax, Octroi, VAT etc are blended in one tax – GST, came into effect on 01.07.2017.
CGST act sec 24 points certain groups of suppliers, who shall be responsible to take GST registration even if their sum of turnover is below the prescribed limit of 20 lakh rupees.
GST is simply a destination tax on consuming of goods and services. It is introduced to be levied at all phases right from manufacturing to last consumption with credit of taxes paid at early phases available. In summary, only value addition will be taxed and burden of tax is to be undertaken by the final consumer.
In any tax process, registration is the fundamental need for identification of tax payers stabilizing tax compliance in the national economy.
Every business organization that have role in the buying and selling the goods and services have to register for GST. It is necessary for companies whose turnover exceeds Rs.20 lakhs (for supply of services) and Rs. 40 lakhs ( for goods supply) annually to register for a GST.
All businesses providing interstate outward supplies of goods have to incorporate under the GST scheme. The same matters to businesses making taxable supplies on regard of other taxable individuals, like Agents and Brokers.
Additionally, as per the new notification, e-commerce sellers need not to register if sum of sales are less than Rs.20 lakhs.
GST Return
A GST Return is a document including income details that is needed to be filed as per the rules with the tax authorities. Under the GST law, a taxpayer has to provide two returns on a monthly manner and one such return annually. All returns have to be filed online. Please be wake that there is no area for revising returns. Every invoices for the previous tax period that were unreported must be provided in the current month.
Under GST, an incorporated dealer has to submit GST returns that details: Purchases, Sales, Output, GST (On sales) and Input tax credit (GST paid on purchases).
GSTIN
GSTIN is an unique identification number provided to each GST taxpayer. To check a GSTIN number a person who with a GST number can log onto the GST webportal.
GST merits
Registration based on Goods and Service Tax (GST) area will result the following advantages to the business:
Lawfully identified as supplier of goods or services.
Proper accounting of taxes paid on the inflow goods or services which can be used for payment of GST.
Legal responsibility to collect tax from his consumers and pass it on the credit of the taxes paid on the goods or services provided to purchasers. Documents needed for GST incorporation
These documents are needed for registration of GST are as follows:
Company Pan card
Constitution Proof like partnership deed, MOA, AOA, Incorporation certificate
Passport size photo of the applicant.
Authorized signatory of partners with their identity and proof of address in case of partnership company or List of directors with their identity and address proof if it is a company.
Proof of Appointment of Authorized Signatory. (Any one: Authorisation Letter,Resolution copy passed by BoD/ Managing Committee, and Acceptance letter.)
Proof of Principal Place of business (Any One: Electricity Bill, ownership document, Municipal Copy, Tax Receipt, Rent Agreement)
Proof of Bank Accounts
Effective date of registration
If an application for registration has been submitted within 30 days from the day the person becomes responsible for registration under GST, then the registration shall be ON from the date on which he became able to be registered.
If the applicant who is needed to get registration in GST applies for incorporation after 30 days, then the effective date will be the date when the registration is provided under: Rule 9(1) or (3) or (5).
In the case of Voluntarily Registration, while being within the timed exemption limit for paying tax, the effective date will be the date of the order of registration.
Validity
The registration certificate provided to a “casual taxable person” or a “non-resident taxable person” shall be valid for a time interval specified in the registration application or 3 months from the effective date of registration. However, the proper officer, at the request, may extend the validity of the period of 3 months by an additional period not exceeding 3 months.
Cancelling GST registration certificate
Any registration provided under this act may be cancelled by the correct officer/ authority, in situations prescribed in sec 29 of the CGST/SGST act. The proper officer may, either on his own judgement or on an application filed, in the accurate mentioned manner, by the registered taxable person/ his legal heirs, in case of death, cancel the registration, in such manner as per rules, an order for cancellation is to be granted within 30 days from the receipt date of reply to SCN or from the date of receipt of cancellation application.
Such situations includes violation of any of the prescribed areas of the CGST act or the rules provided there under, not filing returns by a dealer for three sequenced tax periods or non-furnishing of returns by a taxpayer for a continuous time interval of 6 months, and not starting business within 6 months from the date of voluntary registration. However, before cancelling the registration, the proper officer shall be restricted to surely follow the principles of common justice and trust.
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