GST REGISTRATION

Goods and Services Tax (GST)

Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services. Goods and services are divided into five different tax slabs for collection of tax - 0%, 5%, 12%, 18% and 28%.

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It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.

Pre-GST, the statutory tax rate for most goods was about 26.5%, Post-GST, most goods are expected to be in the 18% tax range. The tax came into effect from 1 July 2017 through the implementation of the One Hundred and First Amendment of the Constitution of India by the Indian government. The GST replaced existing multiple taxes levied by the central and state governments.

GST registration is important as it will give you the benefit of availing seamless input tax credit. Multiple taxes are being clubbed under GST and thus the cascading effects of taxes that are prevailing currently will no longer be the case. In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs is required to register as a normal taxable person. This process of registration is called GST registration.

GST Returns include:

  • Filing of monthly and quarterly GST returns and annual compliance return
  • Assistance in deposit of GST to electronic cash ledger
  • Consultancy on GST on regular basis
  • Refund of GST from GST Department
  • Bond & Letter of Undertaking (LUT) related work for Exporter

GSTR 9 is an annual return to be filed yearly by taxpayers registered under GST. Points to note :

  • It consists of details regarding the outward and inward supplies made/received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST and HSN codes.
  • It is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures.