G.S.T. stands for Goods and Service Tax: This new system replaces previously imposed taxes like VAT, service tax, entertainment tax, excise duty etc. and combines it into one uniform tax called as the G.S.T.
Just like a departmental store where all products fall under one roof, similarly in this new tax system all taxes fall under the G.S.T. roof. The different departments in the departmental store such as stationery, food, cosmetics etc. are like the various taxes that were printed on your bills such as service tax, entertainment tax, etc.
Check out a restaurant bill before and after G.S.T.:
Now you’ll see one tax on your bill that says G.S.T. (This will be broken up into C.G.S.T and S.G.S.T). The tax collected from the customer will then be forwarded to the government by the business entities.
Certain businesses are mandated to register under G.S.T. while certain need not. If you fall under any of these then you are liable for G.S.T. registration:
- Any business in India who’s turnover (total money earned by a business) exceeds Rs. 20 lakh (Rs. 10 lakh for North Eastern and hill states)
- Businesses already having service tax or VAT or central excise registration. (These people have been provided with Provisional ID and password for registration)
- Businesses supplying goods and services to other states need to register, irrespective of their turnover.
- Those involved in the supply of goods or services through e-commerce platforms also need to register, irrespective of aggregate annual turnover.
- E-commerce companies
- Casual Taxable Persons (A casual taxable person is someone who occasionally undertakes supply of goods or services having no fixed place of business.E.g.An event manager)
- Agents of a supplier
Documents required for G.S.T, registration (This is for a single individual running a business)
a) Personal proprietor PAN Card Copy.
b) Copy of the firm current bank account statement or cancelled cheque or copy of passbook.
c) Proprietor or individual aadhar card number or passport number (optional)
d) Copy of the electricity bill or landline or water bill of the firm premise office or commercial rent agreement copy of the premise office.
e) Passport size photograph of proprietor.
For other business such as Partnership Firm, One director company etc. you can check the documents required here: GST Registration Documents Required list
10 Step Registration Process for G.S.T.
- G.S.T. registration process can be done online through a portal maintained by Central government of India.
- The applicant, will need to submit his PAN, mobile number and email address in Part A of Form G.S.T. REG-01 on the portal.
- The portal verifies your details via OTP/email.
- Once the verification is completed, you will receive an application reference number on your registered mobile number/email id.
- Using this number access and fill Part-B of Form G.S.T. REG-01
- Then upload the documents depending on your business type.
- If application is complete then the G.S.T officer will verify your application within 3 working days.
- But if additional information is required, Form G.S.T. REG-03 will be issued.
- You then need to respond in Form G.S.T. REG-04 with required information within 7 working days from the date of receipt of Form G.S.T. REG-03.
- If you have provided all required information, the registration certificate for the place of business as well as for every additional place of business will be issued to you.
Now that you know the basics, I hope you are G.S.T. ready! Tag and comment with names of women entrepreneurs who might need to register for G.S.T.