GSTIN IS A PAN-BASED 15-DIGIT NUMBER
WHICH IS CREATED AS BELOW:
Under the Goods & Service Tax (GST), all the taxpayers are registered on a centralized portal for compliance and administration purposes. They are assigned registration under a single administration. On registration, all the taxpayers are allocated a unique Goods and Services Tax ID Number (GSTIN).
1. The first two digits denote the state code as per the Indian Census 2011. Every state has a different code. For instance, the State code of Maharashtra is 27, State code of Delhi is 07.
2. The next ten digits will be the PAN number of the taxpayer.
3. The thirteenth digit will be assigned based on the number of registration within a state.
4. The fourteenth digit will be Z by default.
5. The last digit will be for the check code. It may be an alphabet or a number.
6. Any taxpayer looking to get registered under GST requires to apply on the portal with the essential details like name, nature of business, service/ product category, details of promoters/ directors among others. On application, the details are assigned to the local GST administration department for approval and allotment of GSTIN.
Turnover Criteria
Any businesses that have a turnover of on top of forty lakhs (Rs ten Lakhs for North-Eastern states, J & K, Himachal Pradesh and Uttarakhand), Rs twenty lakhs just in case of services.
E-commerce operator
Person who connects through e-commerce business (such as Amazon or Flipkart), should register for GST from the beginning only.
Casual Taxpayer
If you supply goods or services in events/exhibition & you don’t have a permanent place of business, you need to get online GST Registration. The validity of causal GST Registration is 90 days
Sales/Service provide to other state (Inter State)
One should register under GST if any supplier of goods or service provider involved in any other state.
Involved In Online Information
Person supplying online information and database access other than a registered taxable person
NRI Exporters & Importers
Any NRI person or company supplying goods or services in India need to register GST regardless of turnover.
GST Registration is a tiresome 10 step process that requires the submission of many company details and documents. You can opt for GST Registration service experts where our Experts will assist you, end to end with GST Registration. Please find rates for our services
Type of Business | Fees | Days |
Individual/ Proprietorship Firm | Rs. 2,500 | Get GST Registration Certificate and Number within 1-5 days |
Partnership Firm | Rs. 3,400 | Get GST Registration Certificate and Number within 1-5 days |
Private Limited/ LLP/ NGO | Rs. 3,400 | Get GST Registration Certificate and Number within 1-5 days |
1. Launched on July 1 2017, the GST (Goods & Services Tax) applies to all Indian service providers (including freelancers), traders, and manufacturers. A variety of Central taxes like Service Tax, Excise Duty, CST, and state taxes like Entertainment Tax, Luxury Tax, Octroi, VAT are absorbed in one tax – GST, implemented on 01 July 2017. GST is to be imposed at every step of the supply chain, with full set-off benefits available. The procedure for GST is entirely online and requires no manual intervention.
2. Every merchandise goes through multiple stages along the supply chain, which includes the buying of raw materials, manufacturing, sale to the wholesaler, selling to the retailer and then the final sale to the consumer. Interestingly, GST will be levied on all of these 3 stages. Let’s say if a product is produced in West Bengal but is being consumed in Uttar Pradesh, the entire revenue will go to Uttar Pradesh
3. Also, taxpayers with a turnover of less than Rs.1.5 crore can choose a composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
1. GST performs all transactions and processes to be done only through the electronic mode, to achieve a non-intrusive administration. This minimizes the taxpayer's physical interaction with tax officials.
2. Taxpayers with a turnover of less than Rs.1.5 crore can opt for a composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
3. GST provides for the facility of auto-populated monthly returns and annual returns.
4. It also facilitates taxpayers by prescribing grants of refund within 60 days, and provisional release of 90 percent refund to exporters within 7 days.
5. Further facilitation measures include interest payment if a refund is not sanctioned in time, and the refund is to be directly credited to bank accounts.
6. Comprehensive transitional provisions for ensuring a smooth transition of existing taxpayers to GST regime, credit for available stocks, etc.
7. Other provisions include a system of GST compliance rating, etc.
8. Under the GST regime, exports are zero-rated in entirety, unlike the earlier system where refund of some of the taxes did not take place due to the fragmented nature of indirect taxes between the Centre and states.
9. GST is largely technology-driven and reduces the human interface to a great extent.
10. GST is believed to have improved the ease of doing business in India.
11. Helps a person to be legally recognized as a supplier of goods or services.
GST has 3 tax components, which include a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where central and state will levy GST on all entities, i.e. when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the central, i.e. when a transaction happens from one state to another.
Input tax credit lets you reduce the tax you have already paid on inputs and pay the remaining amount at the time of paying tax. You pay taxes on the purchase when a product is purchased from a registered seller, and when you sell the product, you too collect the tax. With input credit, you can adjust the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance liability of tax, i.e. tax on sale minus tax on the purchase.
Every business or organization that is involved in buying and selling goods or services have to register for GST. It is compulsory for companies whose turnover is more than Rs.20 lakhs (for the supply of services) and Rs. 40 lakhs ( for the supply of goods) yearly to register for a GST. All businesses making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, for example, Agents and Brokers. Also, as per the recent notification, e-commerce sellers / aggregators need not register if total sales are less than Rs.20 lakhs.
Items that are considered basic necessities come under the exempt list i.e. they are not taxed.
Household necessities and life-saving drugs etc. are taxed at 5%.
Products like computers and processed food are taxed at 12%.
Hair oil, toothpaste and soaps, capital goods, industrial intermediaries and services are taxed at 18%.
Luxury items are taxed at 28%.
You can see the tax rates for the products here:
https://cbec-gst.gov.in/gst-goods-services-rates.html
A GST Return is a document containing details of income that is required to be filed as per the law with the tax authorities. Under the GST law, a taxpayer has to submit two returns on a monthly basis and one such return annually. All returns have to be filed online. Please note that there is no provision for revising the returns. All invoices for the previous tax period that went unreported must be included in the current month. Under GST, a registered dealer has to file GST returns that include: Purchases, Sales, Output, GST (On sales), and Input tax credit (GST paid on purchases).
GSTIN is a unique identification number given to each GST taxpayer. To verify a GSTIN number a person who has a GST number can log onto the GST portal.
The Goods and Service Tax Network (or GSTN) is section 8 (non-profit), non-government, private limited company. GSTN is a one-stop solution for all your indirect tax requirements. GSTIN is responsible for maintaining an Indirect Taxation platform for GST to help you prepare, file, rectify returns and make payments of your indirect tax liabilities.
DSC of Partners or Directors, in case of LLP and Company only (Not required for Proprietor).
An entity should provide a registration certificate with MoA- AoA / LLP Agreement or Partnership Deed as applicable.
If a place is rented, a rent agreement is mandatory, else a consent letter is sufficient.
A copy of Aadhar Card of Proprietor/ Partners/ Directors.
Latest Electricity bill/ Any Tax paid bill/ Municipal Khata Copy.
A copy of the PAN Card of a business entity.
Latest Bank Statement/ Copy of canceled cheque/ copy of the first page of passbook.
Copy of passport size photograph of the Proprietor/ Partners / Directors.
Composition Scheme |
Regular Scheme |
|
---|---|---|
Compliance | Relaxed Compliance in order to safeguard small businessmen. | Normal compliance required. |
Tax Rate | Composition taxpayers need to pay nominal GST at a fixed rate of turnover, which is normally 1-5%. | Tax rate for regular taxpayers goods and services, which is from 0-28%. |
Input Tax Credit | Composition taxpayers cannot avail Input tax credit benefit. | Normal taxpayers can avail Input tax credit benefit. |
GST Return Filing | Composition taxpayers required to file quarterly return. | Normal taxpayers are required to file monthly return. |
Tax Invoice | Composition taxpayers can not issue tax Invoice to their customers. | Normal taxpayers can issue tax invoice to their customers. |
The limit to be considered under GST laws are different for the different categories:
Manufacturing Sector – 40 lakhs
Service sector – 20 lakhs
In North Eastern states – 10 lakhs