What is GST?
- GST is the taxation reform introduced in India with the intention of One Nation, One Tax!.
- GST is a multi-stage, destination-based tax that will be levied on every value addition
- Final consumer will bear only the GST charged by the last dealer in the supply chain.
- Central GST (CGST) which will be levied by Centr.
- State GST (SGST) Which will be levied by State
- Integrated GST (IGST) – which will be levied by Central Government on inter-State supply of goods and services.
- All the entities involved in buying and selling of goods and services across the nation are required to obtain GST registration.
Documents for GST registration
GST Registration Eligibility
Entities involved in supplying of goods or services with an annual aggregate turnover of more than Rs.20 lakhs in most States are mandatory required to obtain GST registration. In certain states(North Eastern States), the aggregate turnover criteria is Rs.10 lakhs.
All ongoing businesses having a VAT or Central Excise or Service Tax registration shaoulf mandatorily register under GST. They shall be provided with a Provisional ID and password for GST migration and obtain GSTIN by the relevant department.
A person who occasionally supplies goods and/or services in a territory where GST is applicable but he does not have a fixed place of business. Such a person will be treated as a casual taxable person as per GST.
This is relevant only to small businesses and taxpayers having a turnover less than Rs. 75 lakhs. Composition scheme shall be taxed at a nominal rate of 1% or 2.50% (for manufacturers) CGST and SGST each.
You will be required to maintain much less detailed records and file only 1 quarterly return instead of three monthly returns. However, you cannot issue taxable invoices, i.e., collect tax from customers, but are required to pay the tax out of your own pocket. You cannot also claim any input tax credit.
Composition levy is available to only small businesses. It is not available to interstate sellers, e-commerce traders, and operators.