Introduction to GST in India

GST is a cure for ills of existing Indirect Tax

The GST (Goods & Service Tax) is an indirect tax levied in India on the supply of goods and services. GST is levied at every step in the production process but is meant to be refunded to all parties in the various stages of production other than the final consumer.

Goods and Service tax means a tax on the supply of goods or services, or both, except taxes on the supply of alcoholic liquor for human consumption (Article 366 (12A) of the Constitution of India). GST is a destination-based consumption tax. GST offers a comprehensive and continuous chain of tax credits. In GST the burden is borne by the final consumer. GST eliminate cascading of tax. GST brings a uniform tax structure all over India.

The Quick Facts About GST in India

Goods and Services Tax (GST) is a comprehensive tax system that was implemented in India on July 1, 2017. It replaced several indirect taxes that were levied by the central and state governments.

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Here are 8 quick facts about GST in India:

  1. GST is a destination-based tax system: GST is a tax that is collected on the value-added to goods and services at each stage of the supply chain, from the manufacturer to the consumer. It is a destination-based tax, which means that the tax revenue is collected by the state where the final consumption of the goods or services takes place.
  2. GST has multiple rates: GST has multiple rates, ranging from 0% to 28%. The rates vary depending on the type of goods or services being taxed. For example, essential goods such as food items and healthcare services are taxed at a lower rate, while luxury goods and services such as cars and fine dining are taxed at a higher rate.
  3. GST has four different tax slabs: GST has four different tax slabs, namely 5%, 12%, 18%, and 28%. The 5% slab applies to essential goods, while the 28% slab applies to luxury goods. The 12% and 18% slabs apply to other goods and services.
  4. GST registration is mandatory for businesses: Businesses with an annual turnover of more than Rs. 20 lakh (Rs. 10 lakh for North-Eastern states) are required to register for GST. Failure to do so can result in penalties and fines.
  5. GST returns must be filed regularly: Businesses that are registered for GST must file regular returns. There are three types of returns that need to be filed - GSTR-1, GSTR-2, and GSTR-3. These returns must be filed monthly, and failure to do so can result in penalties and fines.
  6. GST has simplified the tax system: GST has simplified the tax system by replacing several indirect taxes such as excise duty, service tax, and value-added tax (VAT). It has also reduced the compliance burden for businesses by introducing a single tax system.
  7. GST has boosted the economy: GST has helped to boost the Indian economy by increasing tax compliance and reducing tax evasion. It has also facilitated the ease of doing business in India by simplifying the tax system and reducing the compliance burden for businesses.
  8. GST has faced criticism: GST has faced criticism from some quarters for being a complex tax system that has increased the tax burden on small businesses. There have also been concerns about the implementation of GST, with some businesses experiencing difficulties in adapting to the new tax system.

GST is thus a destination-based tax system that has simplified the tax system in India. It has multiple tax rates and slabs, and businesses are required to register and file regular returns. While GST has helped to boost the economy, it has also faced criticism for being a complex tax system that has increased the tax burden on small businesses.

Advantages of GST

GST has several advantages for businesses and the economy as a whole. It simplifies the tax structure, promotes transparency, eliminates cascading effect of taxes, and improves tax compliance. GST also leads to cost savings, increased efficiency, and a level playing field for businesses.

Below are a few advantages of GST:

  1. One Nation One Tax.
  2. Removal of bundled indirect taxes such as VAT, CST, Service Tax, CAD, SAD, and Excise.
  3. Removal of cascading effect of taxes i.e. removes the tax on tax.
  4. Increased ease of doing business.
  5. Lower cost of production and increase in demand will lead to an increase in supply. Hence, this will ultimately lead to rising in the production of goods. Resultant boost to make in India initiative.
  6. It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth.

About GST registration for import and export business

If you are an importer or exporter in India, registering for Goods and Services Tax (GST) is mandatory. GST applies to all goods and services imported or exported from India. Importers and exporters can register for GST by following the same process as other businesses. However, they are also required to provide additional details such as the Import Export Code (IEC) and the Bank Account details of the business. GST registration for import and export businesses is crucial as it enables businesses to claim an input tax credit on goods and services purchased for import or export. It also facilitates hassle-free compliance with tax laws in India.

How to Register for Goods and Services Tax (GST) Online?

Registering for Goods and Services Tax (GST) online is a simple and convenient process that can be completed in a few easy steps. GST is a destination-based tax that was introduced in India on July 1, 2017, and is levied on the value-added to goods and services at each stage of the supply chain.

Below are the steps to register for GST online:

Goods & Service Tax
  • Visit the GST portal: The first step is to visit the GST portal at https://www.gst.gov.in/ and click on the Services tab, and select the Registration option.
  • Choose the type of registration: The next step is to select the type of registration you require. There are three types of registrations: Regular, Composition, and Casual Taxable Person.
  • Fill in the details: After selecting the type of registration, you will be required to fill in the necessary details such as your name, address, email ID, and mobile number. You will also need to provide proof of identity and address, such as an Aadhaar, PAN, and Passport.
  • Enter business details: In this step, you will need to provide the details of your business, such as the name of your business, the type of business, and the date of commencement of business.
  • Provide bank account details: You will be required to provide your bank account details, including the account number, IFSC code, and branch details.
  • Submit the application: After filling in all the necessary details, you can submit the application. Once the application is submitted, you will receive an Application Reference Number (ARN) on your registered mobile number and email ID.
  • Verification: After applying, the GST department will verify the details provided in the application. If there are any discrepancies, you may be required to provide additional information.
  • Approval: Once the verification process is complete, you will receive a GST registration certificate. This certificate will contain your GSTIN (GST Identification Number), which is a unique 15-digit number assigned to each taxpayer.

Thus, registering for GST online is a straightforward process that can be completed in a few easy steps. The GST portal provides a user-friendly interface that makes it easy for businesses to register for GST. By registering for GST, businesses can avoid penalties and fines and comply with the tax laws in India.

About the Dual GST Model

SGST, CGST and IGST

SGST

State GST

Collected by the state Govt.

CGST

Central GST

Collected by Central Govt.

IGST

Integrated GST

Collected by the central Govt. or interstate supply of Goods and Services.

As per the CGST Act subject to changes by CBIC Notifications

Return Form

Particulars

Frequency

Due Date

GSTR-1

Details of outward supplies of taxable goods and/or services affected

Monthly

11th* of the next monthwith effect from October 2018

*Previously, the due date was 10th

GSTR-2

Suspended

Details of inward supplies of taxable goods and/or services affected claiming the input tax credit.

Monthly

15th of the next month

GSTR-3

Suspended

Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of tax.

Monthly

20th of the next month

GSTR-3B

Simple Return in which summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by taxpayer

Monthly

20th of the next month

GSTR-4

Return for a taxpayer registered under the compositionlevy

Quarterly

18th of the month succeeding quarter

GSTR-5

Return for a Non-Resident foreign taxable person

Monthly

20th of the next month

GSTR-6

Return for an Input Service Distributor

Monthly

13th of the next month

GSTR-7

Return for authorities deducting tax at source.

Monthly

10th of the next month

GSTR-8

Details of supplies effected through e-commerce operator and the amount of tax collected

Monthly

10th of the next month

GSTR-9

Annual Return for a Normal Taxpayer

Annually

31st December of next financial year*

GSTR-9A

Annual Return a taxpayer registered under the compositionlevy anytime during the year

Annually

31st December of next financial year*

GSTR-10

Final Return

Once, when GST Registration is canceled or surrendered

Within three months of the date of cancellation or date of cancellation order, whichever is later.

GSTR-11

Details of inward supplies to be furnished by a person having UIN and claiming a refund

Monthly

28th of the month following the month for which statement is filed

GST Registration for Proprietorship

For a proprietorship business in India, registering for Goods and Services Tax (GST) is mandatory if the annual turnover exceeds Rs. 20 lakh. GST registration for a proprietorship is a straightforward process that can be completed online. Proprietors need to provide their PAN (Permanent Account Number) and other details such as their name, address, and bank account information. After the registration process is complete, the proprietor will receive a GSTIN (Goods and Services Tax Identification Number) which is a unique 15-digit number assigned to each taxpayer. GST registration for proprietorship enables businesses to comply with tax laws, avoid penalties, and take advantage of the input tax credits.

Why choose Valcus for assistance related to GST?

Valcus is a trusted and reliable partner for businesses seeking assistance with their Goods and Services Tax (GST) needs. With a team of experienced professionals and a commitment to providing personalized service, Valcus is well-equipped to handle any GST-related challenge. We have a team to assist you with GST registration for import and export in Delhi NCR.

Whether it is filing GST returns, understanding complex GST regulations, or resolving disputes with tax authorities, Valcus has the expertise and experience needed to guide businesses through the process. Their approach is not just about meeting compliance requirements but also optimizing the benefits under GST.

Valcus understands the unique needs of each business and strives to provide tailored solutions that are both effective and efficient. By choosing Valcus for GST assistance, you can rest assured that your businesses are in safe hands. Contact us for GST registration solutions today!

Frequently Asked Questions

GST (Goods and Services Tax) is a destination-based indirect tax that was introduced in India on July 1, 2017. It replaced multiple taxes such as VAT, Service Tax, and Excise Duty. GST was introduced to simplify the tax structure, increase transparency, and reduce the cascading effect of taxes.

The GST rate in India varies based on the type of goods or services. The GST rates are divided into four categories - 5%, 12%, 18%, and 28%. Some goods and services are exempted from GST.

Any business with an annual turnover of more than Rs. 20 lakh (Rs. 10 lakh for North-Eastern states) is required to register for GST. However, certain businesses such as e-commerce operators and businesses involved in inter-state transactions are required to register for GST, irrespective of their turnover.

The due date for TDS Return filing is 31st July for the quarter ending on 30th June, 31st October for the quarter ending on 30th September, 31st January for the quarter ending on 31st December, and 31st May for the quarter ending on 31st March.

The process for GST registration in India can be completed online by visiting the GST portal and filling in the required details. The documents required for registration include PAN, Aadhaar, and bank account details.

Penalties for non-compliance with GST regulations in India can range from a fine of Rs. 10,000 to imprisonment for up to five years. The severity of the penalty depends on the nature and extent of the violation.

Yes, GST can be paid online through the GST portal using various payment modes such as net banking, debit card, credit card, and NEFT.

Input tax credit (ITC) under GST refers to the credit that businesses can claim on taxes paid on inputs used for the production of goods or services. ITC can be claimed on CGST, SGST, IGST, and UTGST.