What is GST?
To remove this cascading effect the bill was passed by parliament in April, 2016 known as GST bill (Goods & service Tax) GST is a tax levied when a consumer buys a goods or services. The main aim of introducing GST is to bring all the taxes in a single umbrella.
This bill helps to eliminate the cascading effect of taxes on production, distribution prices on goods & services. Goods & service tax refers to indirect tax which replaces taxes levied by the central & state government.
GST bill abolish indirect taxes like VAT, Service tax, excise, octroi.
Currently VAT is mandatory for companies generating a turnover of 10 lacs or more. In some states, it is more stringent and any business generating a turnover of 5 lacs or more has to comply to VAT. Once GST comes into effect, no company with a turnover of less than 10 lacs will have to register or collect GST. Not only this, businesses with a turnover between 10-50 lacs will have to pay the GST at lower rate. If this does not sound favourable, it is tough to guess what else ever will. GST is perhaps the best thing that could happen to start-ups and small businesses.
Migration to GST
Helping as many as 80 lakh assesses of excise as well as service tax and VAT can start migrating their registration to the GST.
Removing the line between service provider and goods provider
The system in place in India these days requires companies like restaurants and computer sales and services to abide by both VAT and Service Tax. This leads to a complex situation as the businesses need collect taxes on transactions which have different rates of different products. Once GST is implemented, there will be no segregation between goods and services and it will make the invoicing easy due to a uniform rate.
Are you Liable?
If you’re an existing taxpayer registered under any of the below mentioned authorities, then you are Liable to migrate and enrol under GST system portal.
- Central Excise
- Service Tax
- State sales tax/VAT (except exclusive liquor dealers)
- Entry tax
- Luxury Tax
- Entertainment tax
Migration here means validating the data of existing taxpayers and filing up the remaining key fields.
Last dates for enrolment.
For below mentioned states of North India, enrolment starts from 16th Dec 2016and will end on 31st Dec 2016.
- Uttar Pradesh,
- Jammu and Kashmir,
- Himachal Pradesh,
For Service Tax Registrants Start Date is 1st Jan 2017 till31st Jan 2017
For Delta All Registrants (All Groups) Start Date is 1st Feb 2017 till20th Mar2017.
For rest of India, the dates have also been announced. The table is as follows:
Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh
Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram
Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh
Steps to follow to enrol your business under GST system Portal.
Steps to complete Provisional Registration
- Step 1: Enter the Username (Provisional ID) and Password provided to you by your State VAT Authority
- Step 2: Enter Mobile Number and Email Address of the authorized signatory of the business entity All future correspondence from the GST portal will be sent on this registered Mobile Number and Email Address
- Step 3: Enter OTP sent on Mobile Number and Email Address provided by you
- Step 4: Enter information and upload scanned images as mentioned in provisional registration form
The process is going to be completely paperless. So, one needs to upload the scanned copies of the documents required.
Documents required to be submitted by the migrant.
- Provisional ID obtained by the concerned department.
- Password obtained by the concerned department.
- Valid email address (it should not be off professional – Use your own email ID)
- Valid mobile number
- Bank account number
- IFSC code
Further, also carry the following documents which needs to be uploaded on the website:
Proof of constitution of business:
- In case of partnership deed – partnership deed (PDF or JPEG in maximum file size of 1 MB).
- In case of others: registration certification of the business entity (PDF and JPEG format in maximum file size of 1 MB).
- Photograph of promoters/partners/Karta of HUF (JPEG format in maximum file size of 100 KB).
- Proof of appointment of authorised signatory (PDF and JPEG format in maximum size of 1 MB).
- Photograph of authorised signatory (JPEG format in maximum file size of 100 KB).
- Opening page of passbook/statement containing the following information:
- Bank account number
- Address of branch
- Address of account holder
- Few transaction details