GST an overview-eligibility & documents

                                        GST an overview

                                   GOODS AND SERVICES TAX

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The introduction of goods and service tax(GST) would be a significant step in the reform of  indirect taxation in india.

GST is one indirect tax for the whole nation, which will make India one unified common market.

 GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

     The GST would replace the following taxes

                        Taxes that will be subsumed under GST are

                                                      GST

Central tax

State tax

•          Central excise duty •  Duties of excise(medicinal & toilet preparations) •   Additional duties of excise (goods of special importance) •  Additional duties of excise (textiles &textile products) •          Additional duties of customs •          Special additional duty of customs •          Service tax •     Central surcharges & cesses so far as  they related to supply of goods & service.

•          state vat •          Central sales  tax •          Luxury tax •          Entry tax •  Entertainments and amusement tax(except when levied by the local bodies) •          Taxes on advertisements •          Purchase tax •          Taxes on lotteries, betting & gambling •          State  surcharge & cesses so far as they relate to supply of goods & services.

Registration for GST

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For whom registration mandatory ?

The following categories of suppliers need to mandatorily register irrespective of turnover :

1.      Taxable person carrying on interstate supply

2.      Casual and non-resident taxable persons

3.      Business liable to pay tax under reverse charge.

4.      Agents supplying on behalf of a taxable persons.

5.      Input service distributor.

6.      Sellers on e-commerce platforms.

7.      All e-commerce operators.

8.      Person supplying online information & database access or retrieval services from outside india to an unregistered person in india.

9.      Persons responsible to deducts TDS.

10.  All persons registered under existing law.

Threshold limit

The threshold limit in GST is categorized as per the location-

v  1. North-east India state -10 lakh

v  2. Jammu & Kashmir & uttrakhand state –rs-10 lakh.

v  3. Other states – rs-20 lakh.

What are the documents/details required to register under GST?

Ø  PAN card of the Company

Ø  Proof of constitution like partnership deed, Memorandum of Association (MOA) /Articles of Association (AOA), certificate of incorporation.

Ø  Details and proof of place of business like rent agreement or electricity bill

Ø  Cancelled cheque of your bank account showing name of account holder, MICR code, IFSC code and bank branch details

Ø  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.

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