What is GST?
GST stands for Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as VAT, Service tax and many more.GST is a comprehensive destination-based tax that levies on Value addition.
GST will be levied on supply of goods and services except alcoholic liquor, petroleum crude, natural gas, aviation turbine oil.
STRUCTURE OF GST
GST is a single tax on the supply of goods and services from manufacturer to the consumer. It is a destination -based consumption tax. GST is a dual model structure. GST is a four- tier structure. It has tax slab rates of 5%, 12%,18%,28%.
|CGST||Central Government||Intra State Supply of Goods and Services|
|SGST/UTGST||State/ Union Territories||Intra State Supply of Goods and Services|
|IGST||Central Government||Inter State Supply of Goods and Services|
Benefits of Goods and Services Tax (GST)
The Goods and Services tax came into effect in July, 2017. GST will ensure minimum cascading of taxes and lower the costs of the goods and services. It is a one nation one tax. GST reduces the need for small companies to comply with vat, excise etc. It brings accountability and regulates unorganized sectors.
Who is required to take mandatory registration under GST?
• Person who is making Inter- State supply of goods.
• Person required to pay tax under reverse charge.
• Input Service Distributor.
• Person who is selling goods or services through e-commerce operator.
• Casual Taxable persons
GST Registration Process
GST Registration is a process by which a taxpayer gets himself registered under GST either as compulsion or can Voluntary register under GST. On successful registration a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by Central Government.
Documents Required for GST Registration
• AADHAR CARD
• Electricity Bill
• Rent Agreement