Do you want to perform GST registration in India? Are you in need of complete information about GST registration in India? One of the best Taxes related reformations is the introduction of the GST in India. GST stands for Goods and Services Tax which is completely new in the Indian Industry. Formerly there were multiple tax regimes like sales tax, service tax, excise duty, VAT, purchase tax and so on. But now here is only one king that rules – the GST.Let us have a step-by-step guide to explain GST Registration Process Online Solutions.
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The Purpose of GST
GST is introduced to eliminate many types of issues that were the results of the previous tax regimes in India. Indian Government has introduced it with the purpose to eliminate those problems and make the tax regime more effective and simple. Now know the mainly purpose of online GST Registration Pocedure for individual or companies as per their requirements.
Nationwide Accepted Market
Before the introduction of GST, Central and State Governments were involved into imposing different kinds of taxation rules and regulations. Each and every state in India has their robust taxation authority. They were imposing VAT, Sales tax, service tax, excise duty etc with the goods and services. This scenario has created huge parity of the price of different types of products and services. Due to this rule, investors were shied away to invest money in the country.
But now with the GST, the taxpayers need to go through a single tax regime, The GST across the whole nation. It helps to eliminate the huge price differences of the goods and services in here. This has given the chance to access Nationwide Common and accepted market for all.
Eradicate Tax Cascading Effect
When products and goods are taxed in every stage of production, transportation and delivery are called as Tax Cascading Effect. It increases the price of products many fold till reach to the clients. This system has caused to increase the inflation on economy. The introduction of GST helps to eradicate this tax cascading effect.
Benefits for Small Businesses
Under the GST, a unique plan has been introduced to assist small businesses. This is called ‘Composition Scheme.’ Under the scheme, small businesses can pay a certain percentage of tax on their turnover. Also, under this scheme micro enterprises need to file for GST on a quarterly basis. The GST rates under the ‘Composition Scheme’ as follows-
Companies with ¹1.5 Crore turnovers, need to pay only 1% GST.
Organizations with ¹6 Crore turnovers, need to pay only 6% GST.
Regulations for Unorganized Businesses
One of the most significant purposes of GST is to get the unorganized business concerns on deck. Under the previous tax regime, these unsystematic businesses were not paying any kind of tax. After the introduction of the GST, there was a 50% boost in GST tax collection of the indirect tax payers. The numbers of voluntary registration has been increased significantly.
Less Complicated Compliance
Previously, there were different kinds of tax regimes like sales tax, services tax, VAT and all these regimes had its own compliance measurements. The purpose of GST was to end all those complicated compliance assessments and bring all taxpayers under one system.
Types of GST
We have 3 types of GST in India.
CGST – Goods and Service Tax collected by the Central Government,
Types of GST
We have 3 types of GST in India.
CGST – Goods and Service Tax collected by the Central Government,
SGST – Goods and Service Tax collected by the State Governments, for intra-state transactions,
IGST – Goods and Service Tax collected by the State Governments, for inter-state transactions.
Documents Required For GST Registration
Get here list of the GST Registration Documents Kolkata you must be provide based upon on your business type of services which are you run in the financila market.
Documents for GST Registration of Individuals & Sole Proprietors
Mobile no and email ID
Aadhaar card of owner
PAN card of owner
Photograph of ownr
Bank account details
Proof of address
GST Registration Documents of Partnerships & LLP
Mobile no and email ID
Partnership deed
Address proof of partners involved
Aadhaar card of any authorised signatory
PAN cards of partners
Signatory’s proof of appointment
Photographs of partners
LLP proof of registration
Principal address proof of Business
Bank details
Documents for GST Registration of Companies
Mobile no and email ID
Incorporation certificate from the Ministry of Corporate Affairs
PAN card of Company
Memorandum/ Articles of Association
PAN card of Signatory
Appointment proof of signatory
PAN card of all directors
Aadhaar card of Signatory
Bank details
Address proof of all directors
Principal address proof of Business
Function of GST
The Functions of the GST can be explained with three different stages.
1st Stage
This first stage includes the Manufacture¹
The main stage includes the Manufacturer. For example, a fabric maker buys crude materials to weave a fabric. Assume the materials cost him Rs 500. Likewise, a measure of Rs 50 is forced as an expense. The producer would now be able to make attire. The maker joins an incentive to the materials over the span of creating the attire. Assume the worth added by the person in question is 200. Subsequently, the total estimation of the dress becomes ¹ 500 + 200= 700. 10% expense is forced on the material, so the assessment on yield on the apparel will at that point be Rs 70. Nonetheless, the GST framework will permit the maker to set off this duty ¹ 70 against the expense. This is conceivable since the individual previously paid for crude material and contributions of Rs 50. All in all, the usable GST will force on the maker just ¹20, i.e., ¹.70-50=20, consequently making GST an assessment forced distinctly on the worth added.
2nd Stage
In the second stage, the Distributor or Service Provider is included. In this stage, the merchandise dispatched from the producer to the distributer, a specialist co-op. Assume, the distributer gets it for ¹700 and connects a worth which is 100. The gross estimation of the wares the distributer sells would be an aggregate of Rs700 + 100= Rs 800. A 10% expense on this sum will be Rs 80. Be that as it may, the GST framework will permit the maker to set off this duty of Rs 80. This is conceivable since the individual previously paid the expense forced on the merchandise purchased from the maker (Rs 50).In end, the employable GST will force on the distributer just ¹30 (80 – 50).
3rd Stage
Stage 3 includes the Consumer. The item is bought by a retailer from the distributer. Likewise, he fuses ¹10 to their acquisition of ¹800. In this way, the gross estimation of the attire sold by the retailer adds up to ¹800 + 40= 840. The duty of 10% will add up to ¹84. At the point when the expense is set off against the duty on the acquisition from the distributer (Rs 80), the retailer achieves a decline in the employable GST by ¹4 (84–80). All in all, the absolute GST relevant on the whole worth beginning from crude material for example input providers, the people who are not qualified to guarantee tax break since they haven’t gained anything themselves from the maker, distributer just as the retailer add up to an aggregate of ¹ 50+20+30+4 = ¹ 104 , which is paid by the buyer.