GST Registration – One of the biggest reforms in the system of GST is Indirect Tax. GST was started by the Modi government in India on July 1, 2017 in the country. It has been brought to increase the economic development in the country.
GST is one of the biggest reforms of indirect tax system. GST was started by the Modi government in India on July 1, 2017 in the country. It has been brought to increase the economic development in the country. GST i.e. Good and Service Tax, is a tax system where a single tax is levied on the supply of Goods and Services.
GST is a sub-direct tax levied on the production, sale, and consumption of goods and services at the national level. GST has now replaced the tax systems like Central Excise Duty, Additional Customs Duty, VAT, Entertainment Tax, Service Tax etc. The state in which the business is registered requires them to carry a GST identification number.
There are mainly four types of GST tax collected in India, namely Central GST, State GST, Union Territory GST, and Integrated GST. Central GST is levied on supplies within a state, State GST is also levied on intra-state supplies, Union Territory GST is levied on supplies within a union territory or Integrated GST is levied on interstate supplies and imports.
Impact of GST on Indian Economy
GST provides many benefits for our economy. Here are some of the major benefits:
- Create a unified common national market for India, which will encourage foreign investment and “Make in India” campaign
- Promote export and manufacturing activity and lead to real economic growth
- Help eradicate poverty by creating more jobs
- Uniform SGST and IGST rates to reduce incentive for tax evasion
Impact of GST on Consumers
GST is also beneficial for consumers. Here’s how it affects Indian consumers:
- Simple tax system
- Reduction in the prices of goods and services due to the elimination of cascading
- Uniform price across the country
- Transparency in the taxation system
- Increase in employment opportunities
Impact of GST on Traders
GST also has some positive effects on traders. Let’s see how this affects traders:
- Reduction in the abundance of taxes
- Reduction of Cascading/Double Taxation through Input Tax Credit
- More efficient neutralization of taxes especially for exports
- Development of common national market
- Simple tax regime
- Low rates and discounts
- Distinction between goods and services is no longer necessary
How to do GST Online Registration
Here we are providing the step-by-step process to complete the GST online registration:
Log on to www.gst.gov.in. When the webpage opens, click on the ‘Services’ tab on the menu. You will see three options namely Registration, Payment, and User Services. Click on Registration and select New Registration. You will be redirected to a new webpage in which you have to select whether you are a taxpayer or a GST practitioner, before entering certain details, such as the legal name of the business, the state and district in which the entity is located, permanent account number, email address and mobile number. This is basically Part-A of the form. The details entered by you will have to be verified by the portal, so you will receive a one-time password or an email for confirmation.
Depending on the type of business you run, you will be required to upload certain documents requested. Part-B of the form has to be filled with certain details after which you will receive the application reference number through email or SMS. Your application will then be verified by the GST officer and it can either be approved or you will be requested to provide some more details or information until the authorities have all the necessary information to approve your application. Documents will be requested to be provided.
If each merchant has branches in multiple states, separate registration has to be done for each state. Businesses with more than 1 vertical can register for each of them separately. Since GST has just been introduced, it may take some time to get used to and understand it. At present, all assessees have been asked to register for GST and there is no process for those who do not wish to register for it. However after registration they can choose to cancel their registration.
Businesses whose turnover is more than Rs 20 lakh, or Rs 10 lakh (for north-eastern states), are expected to register for GST as a regular taxable person. NRI taxable persons, entities involved in e-commerce, entities supplying goods and services through e-commerce operators, persons eligible for TDS (tax deducted at source), entities engaged in the provision of online information or recovery services or database access etc. Most of the entities and businesses in the country are required to complete the GST registration online. Even entities that are not mandated to complete GST online registration can do so on a voluntary basis as the registration enables the entity to obtain legal recognition as a supplier of goods and/or services, thereby enabling the entity to is allowed to levy GST on goods that avail themselves of goods or services. As such, entities that have completed GST registration online may be eligible to avail input tax credit.
For more details on GST registration contact