A Brief on Goods and Service Tax (GST) – GST Council India

Goods and Services Tax (GST) came into effect from July 1, 2017, through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian Government. It replaced many of the existing taxes levied by both the Central and the State Governments. It is one single indirect tax on the supply of goods and services, right from the manufacturer to the consumer, for the whole nation, making India one unified common market to more in detail or for consultancy go GST council India portal. The taxes replaced at the Central level are Central Excise Duty, Additional Excise Duty, Service Tax, Additional Customs Duty commonly known as Countervailing Duty, and Special Additional Duty of Customs. Whereas taxes replaced at the State level are State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, and Taxes on lottery, betting and gambling. 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. Keeping in mind the federal structure of India, there will be two important components of GST –Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain in GST Council India. Tax will be levied on every supply of goods and services. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross-utilization of credit would be permitted. The states and the Centre have to draft the Central GST, State GST, and integrated GST laws. These laws have to be passed by the Parliament and respective state legislatures. Get a detailed information about the introduction of GST in india from GST Council india portal.

 

Know More About GST Council India

Just like any other tax, there is a GST council meeting of india that administers GST, known as the GST Council of India.  It is constituted under Article 279A of the Constitution of India. The GST Council of India is the key decision-making body and has representation from both the Central Government and State Governments. It ensures harmonization on different aspects of GST between the Centre and the States as well as among the different States. GST Council India is a quasi-legislative–cum–administrative body because it functions both legislative as well as administrative duties as assigned to it by the Parliament. Here quasi-legislative is when an Administrative Agency exercises its rule-making authority,gst council India is said to act in a quasi-legislative manner. Administrative agencies acquire this authority to make rules and regulations that affect legal rights, through statutes, which in this case the Statute is the GST Act. It is the governing body and has 33 members comprising of the Union Finance Minister, the Minister of Revenue and the State Finance or Taxation Ministers. Here the Finance Minister shall be the chairman of the GST council of India. GST Council india also has executive and judicial powers. It also recommends GST legislation, oversees implementation of the GST in the country. Article 269A, of the Constitution of India, mandates the GST council of India to make recommendations on three issues. The three issues are Special rates to deal with natural disasters, special provisions for the North-Eastern States, and date on which petroleum products will be subjected to GST. GST council  of india also makes many recommendations to the Government. In addition to this, the gst council india has set up a mechanism to adjudicate disputes between its members. For online GST registration in india  or any consultancy visit gst council india portal. 

 

Some of the key Importance of GST Council India Portal

  • Gst Council India Oversee implementation:

The Council has executive and judicial powers conferred to it by the virtue of the Statute under which it is established. It exercises these powers to oversee the implementation of the GST in the country.

  • GST Council India harmonize different aspects:

GST replaced many of the existing taxes levied by both the Central and the State Governments. It is one single indirect tax on the supply of goods and services, right from the manufacturer to the consumer, for the whole nation, making India one unified common market. The Council ensures harmonization on different aspects of GST between the Centre and the States as well as among the different States.

  • Gst council of India recommends to the Government:

The Council is empowered to make any recommendations to the Government. Some of the recommendations are: goods or services or both of any specified description that are to be exempted, either absolutely or subject to such conditions as may be specified therein, from the whole or any part of the tax leviable thereon, or circumstances of an exceptional nature which shall be exempted from payment of tax on any goods or services or both where tax is levied thereon. Read more about important keys of gst council of india on gst council india portal.

  • Gst council of India finalize the number of slabs:

It finalizes the number of slabs the GST will be pegged at for different categories of goods and services. Besides the standard rate, there could be a lower rate for wage goods consumed by the poor and another one for demerit or luxury goods, also called ‘sin goods’.

  • GST Council India adjudicate disputes:

The Constitution (One Hundred and First Amendment) Act, 2016 provides that the GST Council India shall establish a mechanism to adjudicate any dispute–

  1. Between the Government of India & one or more States, or
  2. Between the Government of India and any State(s) one side & one or more other States on the other Side; or
  3. Between two or more States, arising out of the recommendations of the Council or implementation thereof.

 

Significant Structure of GST Council in India by GST Council India Portal

  • GST Council India is created as per Article 279A of the amended Constitution of India.
  • The Council will have a total of 33 members
  • These members will consist of 29 state ministers, two representatives from two Union Territories, and two Union ministers.
  • The Union Finance Minister will chair it.
  • Currently, Union Finance Minister Arun Jaitley is the chairperson of the Gst Council India.
  • The Union Minister of State in-charge of Revenue will be a member.
  • The Secretary (Revenue) is appointed as the Ex-Officio Secretary to the GST Council.
  • GST Council of India Secretariat is created with its office at New Delhi.
  • The Chairperson, Central Board of Excise and Customs (CBEC), is included as a permanent invitee to all proceedings of the GST Council India. However, he shall not possess any voting rights.
  • There is one post of Additional Secretary to the GST Council in the GST Council India. Secretariat (at the level of Additional Secretary to the Government of India), and four posts of Commissioner in the GST Council Secretariat (at the level of Joint Secretary to the Government of India)
  • Each State nominates a voting member as a minister, who may or may not be holding the finance or the taxation portfolios.
  • The Centre will have one-third vote, states together will have a two-thirds say.
  • To adopt a resolution, a three-fourth majority would be required

 

Know about Members of GST Council from GST Council India Portal:

Member of GST Portfolio Government
Shri Arun Jaitley Minister of Finance and Corporate Affairs Government of India
Shri Shiv Pratap Shukla Minister of State (Finance) Government of India
Shri Yanamala Ramakrishnudu Minister of Finance, Planning, Commercial taxes & Legislative Affairs Andhra Pradesh
Shri Chowna Mein Deputy Chief Minister Arunachal Pradesh
Dr. Himanta Biswa Sarma Finance Minister Assam
Shri Sushil Kumar Modi Deputy Chief Minister Bihar
Shri T. S. Singh Deo Minister for Commercial Taxes Chattisgarh
Shri Manish Sisodia Deputy Chief Minister Delhi
Shri Mauvin Godinno Minister, Panchayat Goa
Shri Nitin Patel Deputy Chief Minister Gujarat
Capt. Abhimanyu Minister, Excise & Taxation Haryana
Shri Jai Ram Thakur Chief Minister Himachal Pradesh
Shri K.K. Sharma Advisor to Honorable Governor (I/C Finance) Jammu & Kashmir
Shri C.P. Singh Minister, Urban Development & Transport Jharkand
Shri Krishna Byre Gowda Minister for Rural Development, Law and Parliamentary Affairs Karnataka
Dr. T.M Thomas Issac Finance Minister Kerela
Shri Priyvrat Singh Minister of Energy Madhya Pradesh
Shri Sudhir Mungantiwar Finance Minister Maharashtra
Shri Yumnam Joykumar Singh Deputy Chief Minister Manipur
Shri Conrad Kongkal Sangma Chief Minister Meghalaya
Shri Lalchamliana Minister, Taxation Department Mizoram
Shri Metsubo Jamir Minister of Urban Development & Municipal Affairs Nagaland
Shri Shashi Bhusan Behera Minister – Finance and Excise Odisha
Shri V. Narayanasamy Chief Minister Puducherry
Shri Manpreet Singh Badal Finance Minister Punjab
Shri Shanti Kumar Dhariwal Minister for Local Self Government, Urban Development & housing, Law & Legal Affairs and Parliamentary Affairs Rajasthan
Shri R.B. Subba Minister, Human Resource Development Law & Parliamentary Affairs Sikkim
Shri D. Jayakumar Minister for Fisheries and Personnel & Administrative Reforms Tamil Nadu
Shri Md. Mohamood Ali Minister for Home, Prisons & Fire Services Telengana
Shri jishnu Debbarma Deputy Chief Minister Tripura
Shri Rajesh Agarwal Finance Minister Uttar Pradesh
Shri Prakash Pant Finance Minister Uttarakhand
Dr. Amit Mitra Finance Minister West Bengal

Decision Making, Recommendations and Mandates of GST Council by GST Council India Portal

  • Mandates by the GST Council of India

Article 269A of the Constitution of India mandates the GST Council india to make recommendations on three issues. These are:

  1. Special rates to deal with natural disasters.
  2. Special provisions for the North-Eastern States.
  3. The date on which petroleum products will be subjected to GST

 

  • Recommendations by the GST Council India
  1. Goods or services or both of any specified description that are to be exempted, either absolutely or subject to such conditions as may be specified therein, from the whole or any part of the tax leviable thereon
  2. circumstances of an exceptional nature which shall be exempted from payment of tax on any goods or services or both where tax is levied thereon
  3. Revenue-neutral rate (RNR) and the rate structure.
  4. compensation for revenue losses to state governments
  5. The GST Council India will finalize the model Central, State and Integrated GST laws for their recommendation to and enactment by the Parliament and State Legislatures.

 

  • Decision making by GST Council India
  1. Finalize the number of slabs the GST will be pegged at for different categories of goods and services. Besides the standard rate, there could be a lower rate for wage goods consumed by the poor and another one for demerit or luxury goods, also called ‘sin goods’
  2. the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the GST;
  3. the goods and services that may be subjected to, or exempted from the GST;
  4. the threshold limit of turnover below which goods and services may be exempted from GST; 
  5. the rates including floor rates with bands of GST;
  6. any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; 
  7. special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and
  8. any other matter relating to the GST, as the GST Council of India may decide. For more information regarding GST registration process in india and for other GST related queris visit GST council india portal.

 

Features of GST Council India that you must know

  • GST Council of India have administrative agency

An administrative agency is an official governmental body empowered with the authority to direct and supervise the implementation of particular legislative acts. GST Council India is an Administrative agency as it has administrative duties assigned to it by the Parliament.

  • Quasi-legislative body of GST Council India

When an administrative agency exercises its rule-making authority, it is said to act in a quasi-legislative manner. Administrative agencies acquire this authority to make rules and regulations that affect legal rights, through statutes, here, in case of the GST Council India the concerned Statute is GST Act.

  • Decision-making body of GST Council India

The GST Council of India is the governing body created by Article 279A of the Constitution of India. It is empowered to make several decisions relating to the collection and distribution of GST, few of these decisions are as follows:

  1. Finalize the number of slabs the GST will be pegged at for different categories of goods and services. Besides the standard rate, there could be a lower rate for wage goods consumed by the poor and another one for demerit or luxury goods, also called ‘sin goods’
  2. The taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the GST;
  3. the goods and services that may be subjected to, or exempted from the GST;
  4. the threshold limit of turnover below which goods and services may be exempted from GST; 
  5. the rates including floor rates with bands of GST;
  6. any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; 
  7. special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and
  8. any other matter relating to the GST, as the GST Council India may decide.
  • GST council india adjudicate disputes

The Constitution (One Hundred and First Amendment) Act, 2016 provides that the GST Council india shall establish a mechanism to adjudicate any dispute–

  1. Between the Government of India & one or more States, or
  2. Between the Government of India and any State(s) one side & one or more other States on the other Side; or
  3. Between two or more States, arising out of the recommendations of the Council or implementation thereof.

 

  • GST Council of India also look after to GST Council Meetings:

The gst council india shall determine the procedure in the performance of its functions. Every decision of the Goods and Services Tax Council shall be taken at a gst council meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely: —

  1. the vote of the Central Government shall have a weight of one-third of the total votes cast, and
  2. the votes of all the State Governments taken together shall have a weight of two-thirds of the total votes cast, in that meeting.
  • The GST council india has met for 31 times and no occasion has arisen so far that required voting to decide any matter. The following major recommendations have been made by the GST council India:
  1. (except J&K) enumerated in article 279A of the Constitution, the threshold exemption limit has been fixed at Rs. 10 lakh.
  2. Composition threshold shall be Rs. 1 Cr. As decided in the 23rd meeting of the GST council india, this limit shall be raised to Rs. 1.5 Cr after necessary amendments in the Act. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers. For special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at Rs. 75 lakh.

iii. Existing tax incentive schemes of Central or State governments may be continued by the respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST. Further, 50% exemption of the CGST portion will be provided to CSD (Defense Canteens)

  1. Recommending GST laws, namely CGST Law, UTGST Law, IGST Law, SGST Law and GST Compensation Law paving the way for the implementation of GST.
  2. In order to ensure a single interface, all administrative control over 90% of taxpayers having turnover below Rs. 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further, all administrative control over taxpayers having turnover above Rs.1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration.For further information and for Online GST registration in India visit GST Council India Portal.
  3. Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions.

vii. Power to collect GST in territorial waters shall be delegated by Central Government to the States.

viii. Formula and mechanism for GST Compensation Cess has been finalized in GST Council meeting.

  1. Rules on composition, registration, input tax credit, invoice, determination of value of supply, accounts and records, returns, payment, refund, assessment and audit, advance ruling, appeals and revision, transitional provisions, anti-profiteering, E-way Bill, inspection, search and seizure, demands and recovery and offences and penalties have been recommended.
  • One half of the total number of Members of the GST Council india shall constitute the quorum at its meetings
  • The GST Council india Secretariat is manned by officers taken on deputation from both the Central and State Governments.
  • GST council adequate funds for meeting the recurring and non-recurring expenses of the GST Council India Secretariat is borne by the Central Government.
  • The Empowered Committee of State Finance Ministers on the GST could cease to be the forum at which the discussions between the Centre and States would take place, as all the discussions and decisions should ideally take place in the GST Council india.

 

Know the Difference between direct tax and indirect tax – GST Council India

  • Direct tax refers to the tax levied directly on the wealth or income of a person.

Indirect tax refers to the tax levied on the price of a good or service.

  • Under the direct tax, the tax incidence falls on the owner of the wealth or the earner of the income liable to such direct taxes.

Under the indirect tax, the person paying the tax passes on the tax incidence to another person.

  • Direct tax includes income tax, wealth tax, estate duty, gift tax and fringe benefits tax.

Indirect tax includes custom duty, excise duty, sales tax, entertainment tax and service tax.

  • Direct taxes have restricted coverage as it is collected from people in the respective tax bracket.

Indirect taxes have wider coverage as all members of the society are taxed through the sale of goods and services.

  • Lack of administration in the collection of direct taxes can make tax evasion possible.

Indirect taxes cannot be evaded as the taxes are charged on goods and services.

  • Direct taxes are considered as a progressive type of tax and it also allows for cooling of inflationary pressure on the economy.

Indirect taxes, on the other hand, are considered as a regressive type of taxes and they also play a role in enhancing the inflation of an economy but are growth oriented.

  • Direct taxes are easier to allocate as they only involve persons falling in the specified tax bracket, however, they are not very convenient to collect, due to the various exemptions specified in the act, and thus require higher administrative costs.

Under Indirect taxes, though the collection of the tax is scattered across parties and consumers, they require a lower administrative cost as compared to direct tax due to their stable collection.

  • Direct tax reduces savings and discourages investments.

Indirect tax discourages consumption and enhances savings. At GST council india portal you will meet all your queries answer with ease.

 

How to get GST Registration in India – GST Council India

Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid or could be penalised. Further, registration under GST is mandatory by GST council india once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover. As per the GST Council india, entities in special category states with an annual turnover of Rs.10 lakhs and above would be required to register under GST. All other entities in the rest of India would be required to register for GST if annual turnover exceeds Rs.20 lakhs. There are also various other criteria’s, that could make an entity liable for obtaining GST registration – irrespective of annual sales turnover. Entities required to register for GST as per regulations must file for GST application within 30 days from the date on which the entity became liable for registration under GST. Read briefly more about online GST application forms, online gst registration portal in india, or apply for GST Number Online in india through online gst council india portal. 

 

Entities/individuals who should register for GST by GST Council India Portal?  

  1. Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
  2. Businesses with turnover above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
  3. Casual taxable person / Non-Resident taxable person
  4. Agents of a supplier & Input service distributor
  5. Those paying tax under the reverse charge mechanism
  6. Person who supplies via e-commerce aggregator
  7. Every e-commerce aggregator
  8. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person
  • An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000. The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes. For consultancy related to online GST registration india, GST website in india, GST registration process contact or visit GST council india portal.

Different Types of GST by GST Council India Portal

  • Central Goods and Services Tax (CGST)

CGST is governed by the CGST Act 2017. The CGST act has been enacted to make a provision for levy and collection of tax on intra-state supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. The CGST Act, 2017 comprises of 174 Sections in 21 Chapters and three Schedules on supplies without consideration, treatment of activities as to goods or services and activities which shall be considered neither goods nor services. Taxes replaced by CGST are Central Excise Duty, Additional Excise Duty, Service Tax, Additional Customs Duty commonly known as Countervailing Duty, and Special Additional Duty of Customs. Consult for CGST tax through GST Council india Portal.

 

  • State Goods and Services Tax(SGST)

SGST is levied on the Intra State movement of goods and services. The revenue collected under State Goods and Services Tax is for the State Government. However, Input Tax Credit on it is given partly to the Centre and partly to the States as it will be utilized against the payment of both SGST and IGST. In an Inter-State transaction, a seller has to collect IGST from the buyer. Taxes replaced by SGST are State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, and Taxes on lottery, betting and gambling. Get more info about SGST tax on GST Council india portal.

 

  • Integrated Goods and Services Tax (IGST):

Under GST, IGST is a tax levied on all Inter-State supplies of goods and/or services and will be governed by the IGST Act. IGST will be applicable on any supply of goods and/or services in both cases of import into India and export from India. Under IGST, Exports would be zero-rated and tax will be shared between the Central and State Government.

An example for IGST:

Consider that a businessman Rajesh from Maharashtra had sold goods to Anand from Gujarat worth Rs. 1,00,000. The GST rate is 18% comprised of 18% IGST. In such a case, the dealer has to charge Rs. 18,000 as IGST. This IGST will go to the Centre. Consult for IGST tax on GST Council india Portal.

 

  • Union Territory Goods and Services Tax

UTGST is a part of Goods and Service Tax in India. GST under supply of goods and services takes place in Union Territories like Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi (National Capital Territory of Delhi), Lakshadweep, Pondicherry etc. is accounted under UTGST. The GST council has included the UTGST in order to complete the constitutional obligation which it says The Constitution (One Hundred and First Amendment) Act, 2016, has added a new clause, namely Clause 26B on “State” in Article 366. As per this clause, “State” with reference to Articles 246A, 268, 269, 269A, and 279A includes a Union territory with Legislature yet even ‘State’ for the purposes of GST, added a Union territory with Legislature. The main agenda has been taken up by the GST council for which the apex body has introduced the UTGST which will continue to provide benefits as same as SGST. The reason why a separate GST was implemented for the Union Territories is that the common State GST (SGST) cannot be applied in a Union Territory without legislature. Delhi and Pondicherry already have their own legislatures, so SGST is applicable to them. For consultancy related to online GST registration india, GST website in india, GST registration process contact or visit GST council india portal.

 

Know more about various GST applicable in different transactions – GST Council India

  1. For Supply of goods and/or services within a state (Intra-State): CGST + SGST;
  2. For Supply of goods and/or services within Union Territories (Intra-UT):  CGST + UTGST;
  3. For Supply of goods and/or services across States and/or Union Territories (Inter-State/ Inter-UT): IGST.  For various services related Online GST Application in India, GST registration online in india, GST council meeting in india visit GST Council India portal. 

Step wise Process for GST Registration in India with GST Council India Portal

GST registration process is done online through a portal maintained by the Central Government of India or other portals such as GST Council india portal. Government has appointed GSPs (GST Suvidha Providers) to help businesses with the Online GST registration process in India.

Based on the information provided by GSTN, registration process looks like this:

  1. The applicant will need to submit his PAN, mobile number and email address in Part A of Form GST REG–01 on the GSTN portal or through Facilitation centre (notified by the board or commissioner).
  2. The PAN is verified on the GST Portal. Mobile number and E-mail address are verified with a one-time password (OTP). Once the verification is complete, the applicant will receive an application reference number on the registered mobile number and via E-mail. An acknowledgement should be issued to the applicant in FORM GST REG-02 electronically.
  3. An applicant needs to fill Part- B of Form GST REG-01 and specify the application reference number. Then the form can be submitted after attaching required documents.
  4. If additional information is required, Form GST REG-03 will be issued. Applicant needs to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.
  5. If you have provided all required information via Form GST REG-01 or Form GST REG-04, the registration certificate in Form GST REG –06 for the principal place of business as well as for every additional place of business will be issued to the applicant. If the person has multiple business verticals within a state he can file a separate application for the registration in Form GST REG-01 for each business verticals. If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05.The applicant who is required to deduct TDS or collect TCS shall submit an application in Form GST REG – 07 for registration. If he is no longer liable to deduct or collect tax at source then the officer may cancel and communicate the cancel of registration.

 

More about major reasons for Online GST Registrations in India by GST Council India portal

  • Easy

Online GST registration is easy to understand and any person can register themselves with ease.

  • Simple

Online GST registration is a simple process that involves no complications.

  • Saves Time

In today’s world time is considered as money and thus people constantly look for alternatives that are time efficient and online registration of GST serves this purpose.

  • Legal recognition

Registration gives the Entity/Individual a legal recognition.

  • Authorisation to collect tax

Registering gives the individual/ entity a right to collect tax and pass on the credit.

  • Avoid penalty

Every person liable to register under GST must register within 30 days from the date on which he became liable for such registration otherwise he shall have to face penalties

  • Online Return Filing

GST online portal allows a registered person to file their return online only, saving their time, energy and effort.

 

Benefits of Online GST Registration in India through GST Council India Portal

  • Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business
  • Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
  • Legally recognized as supplier of goods or services
  • Limited Tax Liability: Another benefit of getting registered under the composition scheme is that the tax rate for such taxpayer is nominal under the GST Law.
  • High Liquidity: One of the major benefits of registering as a composition supplier is high fund availability in the business. A normal taxpayer will be required to pay output tax on his supplies at a standard rate and any credit of input is available only when his own supplier files a return online which shall reconcile with his own return. Thus a large chunk of his working capital will always remain blocked in the form of input credit. However for a supplier registered under the composition scheme, output liability will be nominal and he does not need to bother about return filing by his supplier.

 

Documents required for GST Registration in India On GST Council India Portal

  • PAN Card of the Business or Applicant

GST registration is linked to the PAN of the business. Hence, PAN must be obtained for the legal entity before applying for GST Registration.

  • Identity and Address Proof along with Photographs

The following persons are required to submit their identity proof and address proof along with photographs. For identity proof, documents like PAN, passport, driving license, aadhaar card or voters identity card can be submitted. For address proof, documents like passport, driving license, aadhaar card, voters identity card and ration card can be submitted.

  1. Proprietary Concern – Proprietor
  2. Partnership Firm / LLP – Managing/Authorized/Designated Partners (personal details of all partners are to be submitted but photos of only ten partners including that of Managing Partner are to be submitted)
  3. Hindu Undivided Family – Karta
  4. Company – Managing Director, Directors and the Authorised Person
  5. Trust – Managing Trustee, Trustees and Authorised Person
  6. Association of Persons or Body of Individuals –Members of Managing Committee (personal details of all members are to be submitted but photos of only ten members including that of Chairman are to be submitted)
  7. Local Authority – CEO or his equivalent
  8. Statutory Body – CEO or his equivalent
  9. Others – Person(s) in Charge
  • Business Registration Document

Proof of business registration must be submitted for all types of entities. For proprietorships there is no requirement for submitting this document, as the proprietor and proprietorship are considered the same legal entity. In case of partnership firm the partnership deed must be submitted. In case of LLP or Company, the incorporation certificate from MCA must be submitted. For other types of entities like society, trust, club, government department or body of individuals, registration certificate can be provided.

  • Address Proof for Place of Business

For all places of business mentioned in the GST registration application, address proof must be submitted. The following documents are acceptable as address proof for GST registration

For Own premises

Any document in support of the ownership of the premises like latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.

For Rented or Leased Premises

A copy of the valid rental agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill. If a rental agreement or lease deed is not available, then an affidavit to that effect along with any document in support of the possession of the premises like copy of electricity bill is acceptable.

SEZ Premises

If the principal place of business is located in an SEZ or the applicant is an SEZ developer, necessary documents/certificates issued by Government of India are required to be uploaded.

All Other Cases

For all other cases, a copy of the consent letter of the owner of the premises with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents can be uploaded.

  • Bank Account Proof

Scanned copy of the first page of bank passbook or the relevant page of bank statement or scanned copy of a cancelled cheque containing the name of the Proprietor or Business entity, Bank Account No., MICR, IFSC and Branch details including code.

  • Digital Signature

All application for GST registration must be digitally signed with a Class 2 Digital Signature. Hence, it is important that digital signature be obtained for the following person who is authorised to sign the GST registration application before beginning the application process.

 

 

Various Advantage of getting an Online GST Registrations Certificate in India Through GST Council India Portal

  • Faster Loans from banks as the certificate serves as a valid document showing that the trader is registered with GST and proves his Creditability.
  • Ease of renting any Premises
  • Serves as proof that the trader is registered with the GST Act
  • Registration certificate is a proof showing that the trader is legally recognized as supplier of goods or services
  • Registration certificate is a proof showing that the trader is legally authorized to collect tax from his purchasers
  • Make inter-state sales without many restrictions: Businesses registered under GST can make inter-state sales without many restrictions. Thus, it widens the potential market for SMEs. These SMEs can also opt for selling their goods online through the e-commerce platform.
  • Provide input tax credit to customers: Since your business is legally recognized, you can issue taxable invoices. Buyers, in turn, can take input credit on their purchases. This will help expand the customer base and make it more competitive.
  • Take input credit– Voluntarily registered persons can take input credit on their own purchases and input services like legal fees, consultation fees etc. This will eventually increase their business margin and profitability.
  • Be compliant: Registration for GST will ensure that the business is compliant and scalable without any barrier of future registration.
  • Have good rating: Under GST, compliance rating will be maintained and if this is done correctly, it can attract additional business.

 

Frequently Asked Question On GST Council India Portal related to Online GST Registration in India

What is GST? How does it work?

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

 

Which taxes at the Centre and State level are being subsumed into GST?

At the Central level, the following taxes are being subsumed:

  1. Central Excise Duty,
  2. Additional Excise Duty,
  3. Service Tax,
  4. Additional Customs Duty is commonly known as Countervailing Duty, and
  5. Special Additional Duty of Customs.

At the State level, the following taxes are being subsumed:

  1. Subsuming of State Value Added Tax/Sales Tax,
  2. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
  3. Octroi and Entry tax,
  4. Purchase Tax,
  5. Luxury tax, and
  6. Taxes on lottery, betting and gambling.

 

How would GST be administered in India?

Keeping in mind the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.

 

Can a person without GST registration claim ITC and collect tax?

  • No, a person without GST registration can neither collect GST from his customers nor can he claim any input tax credit of GST paid by him.
  • How would a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?
  • The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of Central Excise

 

Will cross utilization of credits between goods and services be allowed under GST regime?

  • Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST. However, the cross utilization of CGST and SGST would not be allowed except in the case of inter-State supply of goods and services under the IGST model which is explained in answer to the next question
  • How will be Inter-State Transactions of Goods and Services be taxed under GST in terms of IGST method?
  • In case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution. The IGST would roughly be equal to CGST plus SGST. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one State to another. The inter-State seller would pay IGST on the sale of his goods to the Central Government after adjusting credit of IGST, CGST and SGST on his purchases (in that order). The exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The importing dealer will claim credit of IGST while discharging his output tax liability (both CGST and SGST) in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. Since GST is a destination-based tax, all SGST on the final product will ordinarily accrue to the consuming State

 

How will imports be taxed under GST?

The Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently being levied on imports will be subsumed under GST. As per explanation to clause (1) of article 269A of the Constitution, IGST will be levied on all imports into the territory of India. Unlike in the present regime, the States where imported goods are consumed will now gain their share from this IGST paid on imported goods

 

What is the time limit for taking a Registration under GST?

A person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as is prescribed under the Registration Rules. A Casual Taxable person and a non-resident taxable person should however apply for registration at least 5 days prior to commencement of business

Whether a person having multiple business verticals in a state can obtain for different registrations?

Yes. In terms of the proviso to Sub-Section (2) of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.

Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?

Yes. In terms of Sub-section (3) of Section 25, a person, though not liable to be registered under Section 22 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.

 

Whether the Registration granted to any person is permanent?

Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked

 

Is it necessary for a Government Organization to get registration?

A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases.

 

Who is a Non-resident Taxable Person?

In terms of Section 2(77) of the CGST/SGST Act, a nonresident taxable person means any person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India

 

What is the validity period of the Registration certificate issued to a Casual Taxable Person and non- Resident Taxable person?

In terms of Section 27(1) read with proviso thereto, the certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not exceeding ninety days

 

Can the registration certificate be downloaded from the GSTN portal?

In case registration is granted; applicant can download the Registration Certificate from the GST common portal

 

Whether cancellation of Registration under CGST Act means cancellation under SGST Act also?

Yes, the cancellation of registration under one Act (say CGST Act) shall be deemed to be a cancellation of registration under the other Act (i.e. SGST Act). (Section 29 (4))

 

Is there an option to take centralized registration for services under GST Law?

  • No, the tax paper has to take separate registration in every state from where he makes taxable supplies.

 

  • If the taxpayer has different business verticals in one state, will he have to obtain separate registration for each such vertical in the state?
  • No, however the taxpayer has the option to register such separate business verticals independently in terms of the proviso to Section 25(2) of the CGTST Act, 2017.

 

At the time of registration will the assesses have to declare all his places of business?

Yes. The principal place of business and place of business have been separately defined under section 2(89) & 2(85) of the CGST/SGST Act respectively. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form.

 

Why choose Company Vakil for online GST Registrations in India with ease through GST council India portal?

Company Vakil is a perfect blend of knowledge and technology and specialists in registration processes in India. We also provide services relating to the various Legal Documentation and Mandatory Compliance related to Goods and Services Tax in India.