Introduction
GST is what we identify as a single tax that has been made applicable to the supply of goods and services. The Goods and Services Tax was introduced in India in the historic Budget Speech held on 28th Feb 2006, wherein the Finance Minister declared “1st April 2010” as the date of welcoming of GST in our country.
GST rates are in five different slabs i.e. 0%, 5%, 12%, 18% and 28%. However, the rates of GST have several times been revised. All thanks to our Finance Minister who introduced the concept of GST to India and saved us from paying heavy taxes every now and then.
In today’s time, there are four types of GST in India. The first one is the Central Goods and Services Tax (CGST), then comes the State Goods and Services Tax (SGST) and the other two are the Union Territory Goods and Services Tax (UTGST) and Integrated Goods and Services Tax (IGST). And even now, there are some products that do not come under the ambit of GST like petroleum products, alcohol for human consumption, and electricity. These are products for which separate taxes are applied by every statement government.
It is known to be an indirect tax that is applicable for the whole nation which makes India one unified common market. However, GST contains eligibility criteria that allow some specific individuals to fall under the GST regime.
Who is eligible for GST?
Every businesses supplying goods having turnover exceeding Rs. 40 Lakhs in a financial year shall be eligible for GST registration as a normal taxpayer. However, the registration limit is Rs. 10 lakhs for North East and hilly states.
There are some of the individuals who are compulsory required to register under GST, namely:-
- Casual taxable person/ Input Service Distributor (ISD)
- Non-resident taxable person
- Inter-state supplier of goods and services
- Supplier of goods through an e-commerce portal
- Any service provider
- Liable to pay tax under the reverse charge mechanism
- TDS/TCS deductor
- Online data access or retrieval service provider
Types of GST Registration
- Normal taxpayers
GST Registration for normal taxpayers is applicable for those businesses whose turnover exceeds Rs.40 Lakhs in a financial year. In case of northeastern states, J&K, Himachal Pradesh and Uttrakhand, the registration limit is Rs. 10 lakhs.
- Casual taxable person
Occasional or seasonal businesses need to register their businesses under GST for this category. Businesses need to make a deposit equal to the GST liability from the occasional operations. The tenure for registration is 3 months. However, businesses can apply for renewal and extensions.
- Non-resident taxable individual
The non-residents living outside India who occasionally supply goods or services as agents, principles or in other capacities to India residents are liable for registration under this category. The business holder is required to deposit equal to the expected GST liability during the GST active tenure. It contains a normal tenure of 3 months which can either be extended or renewed.
- Composition registration
Composition registration under GST is applicable for those businesses with an annual turnover of up to Rs. 1 crore. Under the GST composition scheme, businesses have to pay a fixed amount of GST irrespective of their actual turnover.
Benefits to GST Registration
With the introduction of the GST, many of the problems have been solved and here is a list of advantages that every Indian citizen can enjoy by registering under GST, namely:-
- Removed the cascading effect of tax
- Composition scheme for small businesses
- Simpler online facilities for GST compliance
- Lesser compliances under GST regime as that of other
- Reduced tax on smartphones and cars
- Uniformity of tax rates and structure
- Simplified and easy online registration process
What is GST Council?
GST Council is the apex body that is responsible to modify, reconcile, or to procure any law or regulation based on the context of goods and services tax in India. It is the governing body of GST having 33 members, out of which 2 members are of centre and 31 members are from 28 states and 3 Union territories with legislation. GST Council is inclusive of (a) Union Finance Minister as a chairperson (b) Union Master of States in charge of revenue or finance (as member) (c) the ministers of states in charge of finance or taxation or other ministers as nominated by each states government (as member).
GST Check
Want to know as to how you can check your GST? Read and know yourself the process of checking gst.
It can be checked from the GST Portal. All you need to do is first to visit the gst portal. On the GST menu bar, an option for “Search Taxpayer” is given. From there you can simply search your GST either with:-
Conclusion
All in all, GST in India has come as a savior for GST taxpayers. Before GST, there was a big list of taxes applicable on goods. However, after GST came, there is a simplified process of GST payment and registration. Goods and Services Tax is helping in simplifying the taxation system and reduces tax avoidance.
Thus, apply for GST Registration with EAdvisors and enjoy the online mode of registering under the Goods and Service Tax Department. Experience GST Registration, GST Return Filing with us and stay worry less about your compliances.
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