According to the GST regime , the business whose turnover during the financial year exceeds Rs.20 Lakh [Rs.10 lac for hill states] are required to be registered as a taxable person.This process of the registration is called GST registration.
One should remember that there is no need to get the GST registration until the turnover does not exceed the basic limit of Rs.20 lakh for the general category state and Rs.10 lakh for the special category states.
The various types of GST tax rates applicable are 0 %,5% ,12% , 18% ,28% etc.
DIFFERENCE BETWEEN CGST, SGST,IGST -
The difference between the all three is defined below -
1] CGST -It can be defined as the tax being levied by the central government over the intra state trade transactions.
2] SGST -It can be defined as the tax being levied by the state government over the intra state trade transactions.
3] IGST -It can be defined as the tax being levied by the central government over the intra state trade transactions.
GST REGISTRATION MIGRATION -
The GST registration migration can be defined as a process in which the existing TIN or service tax number can be converted into the GST number.
According to it , the existing tax person who is registered under the TIN or service tax number can be transferred into the GST registration number with ease.
SEPARATE GST REGISTRATION TO WORK IN DIFFERENT STATES -
According to the GST law , every individual business or firm who needs GST registration to carry on the business will have to apply separately for each state if he is operating the business in different states .
The business should have a separate GST registration number at every state is he is operating the business or firm .
BENEFITS OF GST REGISTRATION -
The benefits of the GST registration in India are as follows -
1] It is very easy and less complicated
2] It provides the input tax credit
3] The registration process is very simple and hassle free at every state and central level.
4] It leads to elimination of cascading tax effects.
5] It provides a composition scheme.
MEANING OF GSTIN -
The GSTIN stands for ‘’GST Identification Number ‘’ and is a unique number being allocated to each business after getting registered under the GST.
The registration is valid for all business places within state and the format of GSTIN are defined below -
1] The first two digits of GSTIN represents the state code
2] The next ten digits are the PAN number of the person .
3] The next one digit shows the entity numbers in the state of the same PAN holder.
4] The last one digit is the sum of all the numerical digits in GSTIN.
BUSINESS COMPULSORY TO BE REGISTERED UNDER GST IRRESPECTIVE OF ANNUAL TURNOVER -
There are certain business to be compulsory registered under the GST irrespective of the annual turnover and is named below -
1] The individuals who already have registered under the Service tax , VAT , excise etc.
2] The agents of a supplier
3] The one who pays tax under the reverse charge
4] The input service distributor
5] The casual taxable person making taxable supply
6] The e-commerce operator
7] The successor of a business
8] The person who supply online information and database
9] The transferee of the business
10] A non resident person making taxable supply
COMPOSITION SCHEME -
The composition scheme can be defined as an optional scheme being introduced for small businesses.
Under the scheme -
1] One cannot avail input tax credit
2] One cannot issue taxable invoices
3] The three month return can be summarised to quarterly basis
4] The tax rate will be 2% for manufacturers , 1% for the other suppliers , 5% for restaurant sector etc.
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