Why do you need GST Registration?

GST registration is obligatory for every entity involved in the buying or selling processes in India. If the business' annual turnover crosses the threshold limit, then it becomes mandatory for that particular person or entity to get the business registered under the GST Act.

On 1st July 2017, in India, the GST Act came into force that changed the lives of many entrepreneurs. GST is one of the most revolutionary tax reforms that took place since the independence of the country. For many, introducing GST wasn’t a good idea, however, for many, it was a brilliant idea. The thoughts of people varied a lot. And that was because they lack the knowledge of GST.

Therefore, in this blog, we are going to discuss GST, GST registration and its benefits. So, let’s start with the introduction of GST registration.

What is GST?

GST stands for Goods and Services Tax. It’s an indirect tax that replaces all other indirect taxes such as VAT, excise, service, sale, custom, etc. in India. Typically, GST can be defined as an indirect tax levied on the supply of goods and services. Therefore, it is essential for every goods and services supplier to obtain GST registration. But let’s first find out what GST registration means.

Definition of GST registration

GST registration is the process of registering any company or business under the GST Act. Under this Act, a business gets a PAN-based15-digit registration number called GSTIN. As per the GST Act, businesses whose annual turnover is more than the threshold limit which is Rs. 20 lakhs (Rs. 10 lakhs for Northeast state and hilly state) are mandatorily required to get the GST registration done.

GST registration is obligatory for availing Input tax credit on the purchase. As per the latest amendment, new GST registration is mandatory for every business such as e-commerce, export or import business, online aggregator, foreign supplier, casual dealer, etc. irrespective of their turnover in a financial year.

For a complete GST registration process, click here.

Benefits of GST Registration

The suppliers can avail various benefits of obtaining GST registration. Especially small businesses and start-ups, irrespective of their turnover, can benefit their business in many ways. The advantages of registering with GST are as follows:

·         Recognized as a legal supplier

Once you have registered your business under GST, you receive the recognition of legal supplier of goods and services.

·         Provide an input tax credit to customers

Because you have registered your business with GST, now you're legally recognized and can issue taxable invoices. In turn, customers can receive input credit on their purchases. This, in turn, will help businesses to expand their customer base and make it more competitive.

·         Compliant and better ratings

GST registration ensures that the business is compliant and scalable without any hindrance in future registration. Additionally, compliance rating is maintained under GST, and if it's done properly, it can attract additional business.

·         Lets businesses take a better stand

Again, registering under GST, your business gets recognition, and due to the same, you can easily apply for bank loans, rent premises, etc.

·         GST improves ease of doing business in India

It is one of the biggest benefits that GST registration offers. For those who want to start a business in India can, now, easily establish by registering itself under the GST Act. There are a few compliances in GST and many tax exemptions for start-ups in India with certain conditions.

Final words

Apart from the above-described benefits, other benefits of registering your business under GST include the elimination of double taxation, making inter-state sales without much restrictions, etc.

If you have any concern regarding the registration process or if you're looking for the best consultant for GST registration, then contact Enterslice. We will get your business registered with GST in the least possible time.

Source url - http://enterslice.strikingly.com/blog/why-do-you-need-gst-registration

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What is the impact of GST on e-commerce?

The e-commerce businesses are wide spread across the globe and are clearly overpowering the physical retail businesses with the digital distribution. But it has always been the goal to capitalize their e-commerce industry and apparently is quite successful in that.

When we talk about the e-commerce industry, what really comes to our mind is the global audience. An audience which is in control and getting their goods and services delivered to them conveniently at their doorstep. The keen e-commerce industryhas been observant of the consumer activity, tracking their behaviours via cookies on the websites to induce more relevant search results and attracting their attention. On top of that, they launch several schemes and discounts in order to continue with their expansion of horizon. Many smartphone users and digital device users not just with the speedy Wi-Fi connections but also through the 4G technology have boosted their operation which in turn boost the e-commerce industries via minimizing the gaps between the known popular brands and the mass population in demographics. The targeted population here is of the most active class of people, the youth. This goes on with reaching the semi-urban areas, where the physical outlets of the big brands are less and commerce shopping comes handy in these regions then. But the question here arise, is how the newly implemented GST law has affected or impacted the e-commerce empire?

What are the operators of E-commerce Under the GST Law?

Before the introduction of the GST law, there were separate taxes like VAT and CST etc which were to be paid by the sellers themselves to their respective state orcentral government. The e-commerce collects tax at the rate of just 1% it breaks as (0.5% of central GST + 0.5% of state GST), this is the net value of all the supplies that are taxable and the amount of tax collected from is called the TCS which is a short abbreviation of tax collecting at source. This TCS is applied over the collection of 1 month that is to be paid to the government.  The amount of TCS can be seen under the GST registered supplier’s GSTR-2 on whose behalf the TCS is collected.

All of the e-commerce operating sellers are supposed to submit a statement online with regard to the details of all the products that are sold by the respective sellers to the GST registration portal and the TCS via the form number GSTR-8. These submitted details by the respective sellers will be verified or matched with the seller’s furnished details in their form. In case both of the details are not matching, the seller and the e-commerce sales operating seller and the supplier are sent a notice mentioning the fact and to correct it.

The impact of GST on e-commerce industry sellers in the marketplace

-          GST implementation has increased the scope for the sellers by eliminating the  cascading effect of multiple taxes.

-          Because the GST taxation rates are same across the nation, the sellers no longer have to deal with the different taxes of the different states providing them with some degree of ease.

-          The sales that are executed on the inter-state level have now become a lot easier because the sellers no longer have to keep and maintain warehouses reducing their rental payments over inventories which in turn reduce the product prices.

-          The not so convenient impact of GST on e-commerce involves the matching of submitted forms by the suppliers and the sellers. If these don’t match though, both the parties get notices regarding the mismatch increasing the complexity of their business.

-          The sellers participating in the business through e-commerce are not eligible for the composition scheme.

-          These e-commerce sellers are supposed to be mandatorily having a GST registration and this shall be irrespective of their annual turnover.

-          No separate GST registrations are required for its sales in multiple states via e-commerce operators.

If you want to know more about the GST Registration and its impact on the e-commerce then you may anytime contact Enterslice where we are 24/7 hr available to help you with perfect solutions whenever you need to get in touch with us.

Source url - http://enterslice.over-blog.com/2018/10/what-is-the-impact-of-gst-on-e-commerce.html

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Get More Information about GST Registration

The GST law makes it mandatory for many to apply for a GST registration. This article will cover multiple points under several different headings regarding GST registration in India.

What Is The Prescribed Threshold Limit for GST Registration?

The threshold limits of GST registration depend upon state to state. In case aggregate turnover of a person or entity is more than Rs 20 lakhs, then they would have to apply for GST registration. However, this limit for the GST registration is different for some special states like the north-eastern states of India including Sikkim and Jammu and Kashmir.

The aggregate annual turnover here means all the taxable and the non-taxable supplies along with the exports of goods and services of a person that’s having the same PAN. The aggregate annual turnover doesn’t include all the values of the supplies on which there’s a tax levied on the basis of the concept called reverse charge basis i.e. inward value supplies.

Who Require GST Registration?

Those falling into the category of a mandatory Online GST registration under the GST act are given below:-

·         Those individuals that make an inter-state supply which is irrespective of the above mentioned threshold limit for GST registration.

·         The casual individuals that are taxable, and will be required to get their GST registration and again, irrespective of the threshold limit.

·         Also the individuals required to pay any taxes under the reverse charge.

·         All of the taxable individuals who are non-resident.

·         Those individuals that needs to do tax deduction under the section 37 for TDS

·         Those agents that work for the suppliers.

·         The individuals that are input service distributors.

·         Those who do business and supply the goods and services via the means of electronic operations like the e-commerce websites.

·         Those that are the aggregators supplying any service under some brand name or certain trademark.

There are certain situations other than the above mentioned scenarios

1.      When a supplier makes some taxable supply of goods or services and their aggregate annual turnover is more than 20 lakhs then it is required for them to apply for New GST registration in India.

2.      The same as mentioned in point 1, for the suppliers that are operating from the states of the north-east, Sikkim, Himachal and Jammu and Kashmir. But here the annual turnover will be at a threshold limit of Rs 10 lakhs.

3.      Those individuals who were already registered under the previous tax structure pre-GST.

What is The Time limit for GST registration procedure?

Those eligible for GST registration must get their registration done within the time frame of 30 days from the first day they become eligible for GST registration.

What are the other aspects of GST registration?

There needs to be always a separate GST registration for business with multiple verticals as it becomes small units of different businesses irrespective of the state they are operating in. Such an option would be open to those individuals who must have their PAN card number available for Online GST registration and in case of the non-resident individuals, a GST registration can be granted on the basis of other documents in the absence of a PAN card number and they will be allotted a unique identity number. Every person that wants to apply for GST registration must have a PAN card though.

Source url - http://enterslice.over-blog.com/2018/09/get-more-information-about-gst-registration.html

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Gst- One Government One Tax, This Article On GST- One Solution

What Is GST Registration?

GST registration is an official regime in which the businesses whose turnover for the business is more than INR 2,000,000 (20 Lakhs) has to register themselves as normal taxable corporate entity. If the organization is not registered under GST regime it will be treated as an offence under the corporate laws and the business will be penalised heavily for it. The normal time period for a business to register itself under GST Regime is between 2-6 Working Days.

Businesses Which Should Register for GST:

v  Corporates and individuals who were registered under the pre GST laws like excise, VAT and Service Tax etc.

v  The businesses whose turnover exceeds the limit of INR 20 Lakhs.

v  Agents of a supplier and Input Service Distributor.

v  All the e- commerce aggregators.

v  The people who supply through e commerce aggregator.

v  People who are supplying the information of any kind of data from a place outside to someone in India, and that person is not a registered taxable person.

Documents Required for GST Registration:

v  The first and prime most important is the PAN of the Applicant without which no online GST registration can be done.

v  Then you need to show the Aadhaar card for the applicant.

v  The personal identity proofs of all the directors of the corporate entity to be registered.

v  The proof for address verification for the business location.

v  The bank account statements and also a copy of cancelled cheque is mandatory to have.

v  It is also required to produce the Digital Signature of the directors and applicants.

Penalty for not registering under GST Regime:

In case any business does not register itself for GST Regime, the business will have to pay heavily for the penalty in this case.  The amount of penalty is 10% of the tax amount which has not been duly paid and the minimum subjected amount for this penalty is INR 10,000. If the business is found to do this mistake voluntarily the amount of penalty can be even 100% of the taxation not paid duly.

Process of GST Registration:

The entire GST Registration procedure is divided here into following basic 11 steps for the better understanding to a common man and they are as follows:

v  You first need to visit the GST portal and click Register on it.

v  Then the second step requires you to fill the details like type of taxpayer, state and district of your location of business, name of the business along with the PAN of the business for which you want to register for GST. The email ID and mobile numbers for further communications and OTPs. Then click on Proceed.

v  You will now be asked to enter the OTP sent on that number you mentioned in the previous detail. Enter and Continue.

v  You will now get a Temporary Reference Number (TRN). Note it for further use.

v  Then you are required to again Go the GST portal and Click Register Now.

v  Choose TRN. Now enter the TRN provided to you over the mail and proceed it further.

v  Again you will get an OTP and you need to enter it and proceed even firther.

v  The status of the application will be shown as Drafts. Click on Edit option.

v  Then you need to fill all the details and submit relevant documents.

v  Then you need to verify the information submitted, go to the verification page and tick on declare and submit the application.

v  You will now get a message for successful registration and also the Application Reference Number.

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Why GST Introduced in India

In previous tax structure, there was lack of uniformity as there were different rates for VAT which resulted in trade imbalance between states.

Some of the reasons are prescribed below:

Ø  Previously CENVAT was limited to manufacturing only and not beyond that. CENVAT paid could not be adjusted against VAT.

Ø  CENVAT was made of various components and because of multiplicity of duties made the tax structure complicated.

Ø  In inter-state sale, CST (Central Sales Tax) was levied by the center and the same was collected by the state which could not be set off against VAT.

Ø  Service providers were unable to neutralize VAT or other taxes paid while CENVAT input tax credit was available to them.

Ø  VAT liability of a dealer used to get enhanced without compensatory set-off because VAT was payable on the goods inclusive of CENVAT paid on manufacturing stage.

Ø  On imports where Special Additional Duties (SAD) of customs were levied at a uniform rate of 4% by the Centre, state VAT and CST did not directly apply. Only to manufacturing excisable goods, input tax credit of these duties was available. Whereas for other importers they had to claim duty refund as and when they pay VAT on subsequent sales.

Ø  VAT dealers were unable to set-off any Service Tax that they had paid on their procurement of taxable input services.

Ø  No set off was available for variety of indirect taxes such as luxury tax, entertainment tax, entry tax etc. which was levied and collected by central.

Advantages of GST

With the implementation of GST in India, it gave numerous benefits to the following:

1.     Make in India

Ø  It will help in boosting make in India campaign as well as foreign investment.

Ø  With this, there will be more efficient tax neutralization.

Ø  It will create more employment in the country and eradicate poverty. 

2.     Efficiency in carrying business.

Ø  Improvement in the tax system of the country by reducing multiplicity of taxes.

Ø  Simplified procedure for GST registration in India and besides GST registration it has also made easy process of return, refunds and tax payments.

Ø  Compliance environment will get improved.

Ø  For more regularization, timelines have been set out for GST registration and GST refund.

Ø  It has made the process more transparent.

3.     Benefits to the Government

Ø  It helped in broadening tax base in India.

Ø  Better compliances and revenue collection

Ø  Now there are less tax evasions.

Ø  Mitigated the cascading effect of taxes.

4.     Trade Benefits

Ø  Multiplicity of taxes have now reduced.

Ø  Mitigation of double taxation/ cascading effect

Ø  More simple tax regime with rates and exemptions.

5.     Consumer benefits

Ø  Cost has been reduced due to removal of cascading effect.

Ø  Purchasing power and savings have been increased.

Ø  Because of savings, investment has also been increased.

Besides advantages, there are some disadvantages also, now let’s discuss the same:

Disadvantages of GST      

Ø  There were many products which were exempted in previous structure, but GST has minimal exemptions.

Ø  In previous tax structure, there were high taxes on few items but now under GST there are lower taxes on almost every item.

Ø  No GST on alcohol liquor consumption.

Ø  Petroleum products are still out the purview of GST.

Ø  Under GST regime, no stamp duty will fall.

GST Council

GST Council is comprised of following:

1.               Union Finance Minister (Chairman of the Council),

2.               Minister of State (Revenue) and

3.               State Finance/Taxation Ministers.

Above mentioned ministersmake recommendations to the Union and the States on the following matters:

(i)              The taxes, cesses and surcharges which may be subsumed under GST levied by central, state or local bodies;

(ii)            Goods and services which may be subjected to or exempted from the GST;

(iii)          the date on which the GST shall be levied on petroleum crude, high speed diesel, motor sprit (commonly known as petrol), natural gas and aviation turbine fuel;

(iv)          Rules & Regulations regarding GST model, GST registration, principles of levy and the principles which govern the place of supply;

(v)            Threshold turnover limit below which GST may be exempted;

(vi)          The rates including floor rates with bands of GST;

(vii)        During any natural calamity or disaster, special rate or rates for a specified period to raise additional resources;

(viii)      Special provision with respect to particular states such as North- East States, J&K, Himachal Pradesh and Uttarakhand;

(ix)          Any other matter relating to the GST.

GST Council mechanism ensures harmonization on different aspects of GST between the Centre and the States as well as among States.

As per the Constitution (one hundred and first amendment) Act, 2016 GST Council shall be guided for the development of a harmonized national market for goods and services.

Source url - http://entersliceindia.full-design.com/Why-GST-Introduced-in-India-15581153

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