GST is one of the widely accepted indirect taxation system prevalent in more than 150 countries across the globe. Globally, GST has been structured as a destination based comprehensive tax levied at a specified rate on sale and consumption of goods and services within a country.
What is GST?
GST is a destination based tax i.e. the tax should be received by the state in which the goods or services are consumed and not by the state in which such goods are manufactured.
CGST, SGST and IGST, what are they?
Central GST (CGST) and State GST (SGST) are levied on intra-state supply of goods and services, where supply of goods and services happens within the state. CGST will go to the centre and SGST will go to the state.
Integrated GST (IGST) is levied on inter-state supply of goods and services, where supply of goods and services happens from one state to another. IGST will also apply on import of goods. IGST will go to the centre.
When I should one register for GST?
Registration is required if his aggregate turnover in a financial year exceeds Rs 20 Lakhs.
For states such Arunachal Pradesh, Assam, J & K, Manipur, Meghalay, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Tripura, the threshold limit is Rs 10 Lakhs in a financial year.
Person engaged in following are mandatorily require to take registration irrespective of threshold limit
persons making any inter-State taxable supply;
casual taxable persons;
persons who are required to pay tax under reverse charge;
non-resident taxable persons;
persons who are required to deduct tax under section 37;
persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;
input service distributor;
persons who supply goods and/or services other than branded services, through electronic commerce operator;
every electronic commerce operator;
an aggregator who supplies services under his brand name or his trade name; and
Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.
PAN card of the Business
Proof of constitution like partnership deed, Memorandum of Association (MOA) /Articles of Association (AOA), certificate of incorporation.
Details and proof of place of business like rent agreement or electricity bill
Cancelled cheque of your bank account showing name of account holder, MICR code, IFSC code and bank branch details
Authorized signatory like List of partners with their identity and address proof in case of partnership firm or List of directors with their identity and address proof in case of company.
GST registration is applicable for you if your business is already registered for under Central Excise, Service Tax, Sales Tax or VAT. You need to migrate from the existing registration to GST.