What is meant by GST registration?
The GST stands for the Goods and Services Tax and it was introduced by the Indian Government on 1st July 2017. In this system of tax, the tax is only taken on the net profit when it delivers from the manufacturer to the customer. The amount that any person pays on the purchase of goods, service or profit to the Government of India is known as Tax. Before the GST the tax system was having 17 different taxes on each and the tax system was varying from states to states. It means that the tax system was different for each state before the GST. Now all the states have the same tax system ie Goods and Services Tax (GST).
Under the present GST regime, every individual or company that supplies goods and services has to register under Goods and Service Tax (GST). So, if you run a business with an annual turnover that exceeds Rs.20 lakh (in all Indian states, other than north-eastern states) then you will have to register with GSTN (Goods and Service Tax Network).
Once you have registered under this regime, you will receive a unique GSTIN (Goods and Service Tax Identification Number). The Central Government issues a state-wise, 15-digit number to you once you complete registration. There are many advantages of GST registration including the fact that you will get a legal identity as a supplier. You can also avail input tax credit and collect GST from recipients of goods and services.
Tax Slab
The Tax slab are the categories of the tax system which is implemented on the various products
Zero Percent(0 %)
The zero percent tax is implemented on the books and fresh vegetables. The products that we use in very less amount is classified into this category and also known as exempted use.
Five Percent (5 %)
The Five percent is tax is implemented on the small restaurants and tickets such as train tickets and bus tickets. The people use this category product wildly in a very rich amount.
12% - 18 %
These products that are used by the people normally have 12-18% of tax and the products such as mobile and electronic devices can come in this category.
Twenty-Eight Percent (28%)
The 28% percent of the tax is implemented on the luxury use of the people. The products that come in this category can be Jeans, Air coolers and Five Star Hotels.
Types of Tax
Direct Tax
The Direct Tax is the tax in which the people of India pays directly to the Government on purchasing any of the product. Income Tax comes in this category and it is directly paid by the person to the Government of India.
Indirect Tax
The tax which is paid through any third party to the Government of India is called Indirect Tax.
Cascading Effect
Before the Goods and Services Tax system, the cascading effect on the taxes was done. The cascading effect means the taxes were implemented on the same tax. The multiple taxes are applied to the same product in this cascading effect.
Documents required for GST registration
Take a look at the documents you will need to upload while registering under GST.
- PAN card of the applicant
- Partnership deed or incorporation certificate
- PAN cards, voter IDs or Aadhaar cards of promoters and/or partners
- Address proof of the business by in the form of an electricity bill, rent or lease agreement or for an SEZ, documents issued by the government
- Bank account statement of the company, firm or individual