Registration / Assessment / Reply to show cause Notice / Litigation in taxes
➤➤ Goods and Services Tax
- Goods and Services Tax (GST) is an indirect tax used on the supply of goods and services. GST is a value-added tax levied on goods and services sold for domestic consumption. It has subsumed several taxes including central excise duty, services tax, additional customs duty, surcharges and state-level value added tax. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. GST provides revenue for the government and the Goods and Service Tax Act was passed in the Parliament in March 2017 and came into effect on July 2017. The three types of GST are Central Goods and Service Tax, State Goods and Service Tax, Integrated Goods and Service Tax. Since its instruction, GST has undergone many changes and is spearheaded by the GST Council, which has 34 members (primarily finance minister from each state) and headed by the Union Finance Minister. The Council meets on a regular basis for revisions, clarifications, additions and enactments of rule or rate changes of the goods and services in India.
Who needs to register
- Following businesses/companies must register for GST:
- Those have been registered under the earlier taxation laws (VAT, Service Tax, Excise, etc.)
- Businesses having turnover higher than specific threshold limit (Rs. 40 lakh for small enterprises and Rs. 10 lakh for the North Eastern States, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, as per new regulations).
- If a business is making inter-state sales
- If a business participating in an event/trade fair even outside the State as a casual taxpayer
- If a business wants to raise a tax invoice for its customers
- Non-Resident Taxable Person and Casual Taxable Person
- Those who pay tax under reverse charge mechanism
- Individuals involving in e-commerce or supply goods through e-commerce platforms.
- Goods and services are divided in into five different tax slabs for collection of tax -5%, 12%, 18% and 28%. Petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system.
Salient features of GST
- Consistent with the federal structure of the country, the GST will have two components: one levied by the Centre (hereinafter referred to as Central GST), and the other levied by the States (hereinafter referred to as State GST). This dual GST model would be implemented through multiple statutes (one for CGST and SGST statute for every State). However, the basic features of law such as chargeability, definition of taxable event and taxable person, measure of levy including valuation provisions, basis of classification etc. would be uniform across these statutes as far as practicable.
- The Central GST and the State GST would be applicable to all transactions of goods and services except the exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits.
- The Central GST and State GST are to be paid to the accounts of the Centre and the States separately.
- Since the Central GST and State GST are to be treated separately, in general, taxes paid against the Central GST shall be allowed to be taken as input tax credit (ITC) for the Central GST and could be utilized only against the payment of Central GST. The same principle will be applicable for the State GST.
- Cross utilisation of ITC between the Central GST and the State GST would, in general, not be allowed.
- To the extent feasible, uniform procedure for collection of both Central GST and State GST would be prescribed in the respective legislation for Central GST and State GST.
- The administration of the Central GST would be with the Centre and for State GST with the States.
- The taxpayer would need to submit periodical returns to both the Central GST authority and to the concerned State GST authorities. 39 (ix) Each taxpayer would be allotted a PANlinked taxpayer identification number with a total of 13/15 digits. This would bring the GST PAN-linked system in line with the prevailing PAN-based system for Income tax facilitating data exchange and taxpayer compliance. The exact design would be worked out in consultation with the Income-Tax Department.
- Keeping in mind the need of tax payers convenience, functions such as assessment, enforcement, scrutiny and audit would be undertaken by the authority which is collecting the tax, with information sharing between the Centre and the States.
Documents Required for GST Registration
- Below documents are necessary for GST Registration: –
- Permanent Account Number (PAN) of the business entity
- Passport Size Photograph
- Aadhar card or Driving License or Passport
- Address proof of business premises
- Bank Statement or Cancel cheque or Passbook
Additional documents are required for Private Limited Company /OPC /LLP/ Partnership Firm
- Certificate of Incorporation in case of Limited Liability Company, OPC or LLP
- Partnership Deed in case of partnership firm
- Opening page of Bank statement held in the name of Business or Proprietor.
- Letter of authorization or board resolution
- Facilitating G S T Registration – Any person or entity supplying goods or services in India above the aggregate turnover limit is mandatorily required to obtain GST Registration.
- Filing G S T Return Monthly, Quarterly& Annual
- Maintaining all records pertaining to GST for a period of 8 years.