Lets discuss how & why to get GST Registration. If we explain in simple words, Goods and Service Tax GST is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India… Under the GST regime, the tax will be levied at every point of sale.
There are three different types of levies in GST Registration:
CGST
SGST / UTGST
IGST
SGST would be levied along with CGST on the supply made by a registered person within a State.
However, in no case, both SGST and UTGST would be levied on an invoice of supply of goods or services or both.
GST Slabs
As we all know that the GST council has fitted over 1300+ goods and 500+ services under four tax slabs of 5%, 12%, 18% and 28% under GST. This is aside the tax on gold that is kept at 3% and rough precious and semi-precious stones that are placed at a special rate of 0.25%under GST. 7% goods and services fall under this category.
What Is Composition Scheme under GST Registration
Composition-Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay Tax at a fixed rate of turnover. This scheme can be opted by any taxpayer whose turnover is less than Rs. 1 crore*.
What is Eligibility for GST Composition Scheme
Its optional & Voluntary for getting registered under composition scheme. Any business which has turnover of less than 1 Crore or 75 Lacs for specific states can opt for this. If turnover crosses limit, then he becomes ineligible & has to take registration under the regular scheme. These are certain conditions that need to be fulfilled before opting composition levy
Are as follows:
- Any assessee who only deals in supply of goods can opt for this scheme that means this provision is not applicable for service providers. However, restaurant service providers are excluded.
- There should not be any interstate supply of goods that means businesses having only intra-state supply of goods are eligible.
- Any dealer who is supplying goods through electronic commerce operator will be barred from being registered under composition scheme. For example: If M/S XYZ sells its products through Amazon or FlipKart (E-Commerce), then M/S XYZ cannot opt for composition scheme.
- Composition scheme is levied for all business verticals with the same PAN. A taxable person will not have the option to select composition scheme for one, opt to pay taxes for other. For example, A taxable person has the following Business verticals separately registered – Sale of Shoes, the sale of mobiles handsets, Franchisee of KFC. Here the composition scheme will be available to all 3 business verticals.
- Dealers are not allowed to collect composition tax from the recipient of supplies, and neither are they allowed to take Input Tax Credit.
- If the person is not eligible under composition scheme, tax liability shall be TAX + Interest and penalty which shall be equal to the amount of tax.
Lets discuss first why you need GST REGISTRATION?
GST Registration is important as not only it helps you in getting your business registered as a legal registrant but also opens door of opportunities for your business. Benefits are as follows:-
Your business becomes competitive – its as simple as you can think, because your business will become more competitive in comparison to unregistered competitors since GST registration is valid tax registration.
Expand to Online – In present tax regime one cannot sell products or services on e-commerce platform without GST registration. If you’re planning to go online on e-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own business website, then you must need a GSTIN.
For input tax credit – Only Registered GST business can avail input of GST tax paid on their purchases and save the cost to become competitive.
Can sell Pan India without restrictions– Now without having GSTIN you cannot trade intera-state. Thats possible only if you are registered business under GST.
To Apply Government Tenders – Various government tenders requires GST number to apply tender. If you don’t have you may miss the business opportunity with government tenders.
Open CC or CA Bank Account – Especially, for sole proprietor business Banks & Financial Institution does not open a current account in the name of business trade name unless you carry any government proof in the name of your business. GST registration certificate can help you here immensely.
Dealing with Corporate or MNCs – Generally, Big companies does not feel comfortable to deal with small business entities until they are carrying valid tax registration proof.
To expand horizon of business in India now you need GSTIN.
Now Question is Who Should Register for GST?
Any individual registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
Businesses with turnover above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
Any Casual taxable person / Non-Resident taxable person
Any Agents of a supplier & Input service distributor
Those who are paying tax under the reverse charge mechanism
Any person who supplies via e-commerce aggregator
Every e-commerce aggregator
Any 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.
Get GST Registration Call – +91 998-825-2755
We can help you in GST Registration. write to us at officepostbox1@gmail.com