- a. GST Registration
- b. GST Filing
GST is the new revolutionary form of Indirect taxation in India that subsumes many central & state level taxes like, excise duty, service tax, VAT/ sales tax, luxury tax, etc. It is a uniform tax that is levied on both goods & services but only on the value addition to the product thereby removing the cascading effect of the taxes.
It is a destination based tax having three major components, IGST, CGST & SGST/UTGST.
The threshold limit of registration under GST for a normal business is the aggregate turnover of Rs 20 Lakhs, however, any person undertaking any interstate transaction (i.e., supplying goods or services outside the respective state) and carrying on/plans to carry on business through an e-commerce platform, needs to get company registered under GST regime irrespective of its threshold limit. Also, a business having its branches in one or more states requires getting registered in each state undertaking its operations.
Major advantages of this new taxation system include increased efficiency in processing, its complete online procedures, defined scope for different sectors, uniformity in tax rates all across India.
For the benefit of small business units, a Composition scheme is available. Entities whose annual turnover is below Rs 75 Lakhs and deals only in goods (i.e., a service provider is ineligible for this scheme) can avail the benefits of this scheme. However, restaurant sector is a special exception that is allowed to get registered under Composition scheme.
The procedure to get registered has been simplified and transformed to a completely online process.
There are two ways of getting a registration under GST regime:
Migration process, applicable, in cases, the business was already registered in any previous Indirect tax regime (eg: excise, service tax, VAT) and gets converted to GST
Fresh Registration Process, available for any entity requiring to get registered.
It takes a time period of around 3 business days after the submission of the application at the portal for the registration certificate to be issued.
- Trade Name of the Business
- Goods/Services Detail
- Bank Statement/ Cancelled Cheque
- Proof of Place of Business – if rented, rent agreement & if owned, electricity bill
- PAN card of the Business
- E-mail & Mobile No for all communications
- Partnership Deed/Certificate of Incorporation (as applicable for the concern)
- PAN, Aadhar Card, Photo, E-mail & Mobile No. of all the partners/directors.
GST filing for a regular dealer involves the filing of three main returns per month and an aggregate return at the year end, thereby making a total of 37 returns to be filed in a financial year.
The three returns to be filed per month are:
This is the return to be filed by the 10th of every month consisting of the sales invoices being issued in the previous month.
This is the return to be filed by the 15th of every month consisting of the details of the purchases being made in the previous month.
This is the summary return to filed by the 20th of every month determining, adjustment & payment of the tax liability of the previous month taking into account the liability & inputs as provided in the GSTR 1 & 2 filed earlier.
In addition, there is a summary return GSTR 3B to be filed every month for the period July to December 2017, as per the latest notification. This is a summary return of transactions carried out in the previous month. This return is to be filed to discharge your GST liability and needs to be submitted by the 20th of the subsequent month.
A dealer getting registration under Composition scheme has to file the returns quarterly under GSTR 4, to be filed by the 18th of the month succeeding the quarter and the annual return at the year-end.
Return filing is a mandatory process under GST regime. Even if there exists no transaction for a period, a NIL return is to be filed.
The non-filing of return, late-filing of return or the non-payment of taxes attracts interest & penalty, as notified.
The two approaches that can be followed to file a return is direct feeding of details on the portal or use of the GST offline utility provided by the government for the process.