History of GST

A plan and a framework for the GST were required from the Empowered Committee of State Finance Ministers (EC), which had developed the State VAT structure. The European Commission (EC) published its First Discussion Paper (FDP) on GST in November 2009 after discussions inside the organization and with the Central Government.

Also Read – Import Export Code Registration

The FDP served as a blueprint for the current GST laws and regulations and outlined the characteristics of the proposed GST. Businesses that provide goods and services must also contribute their fair amount of GST.

The GST eliminates the cascading effect of indirect taxes while also combining a number of separate central and state indirect taxes to provide more revenue for the government. Thus, register for GST as soon as possible with the help of LegalRaasta, a GST registration consultant.

Who all applies for the QRMP scheme?

All taxpayers who have already submitted their final due Form GSTR-3B return and have an aggregate annual turnover (PAN based) of up to 5 Crore in the current fiscal year and the fiscal year prior (if applicable) are eligible for the QRMP programme for GST registration.

If your total annual revenue (determined using your PAN) for FY 2021–22 and the current fiscal year is up to Rs 5 crore and you have submitted your GSTR-3B form by at least 20th for the month of 2022, the GST system will assign you to the QRMP scheme. So get in touch with LegalRaasta if you wish to apply for a GST number.

What prerequisites must a taxpayer meet in order to choose the QRMP scheme?

A taxpayer must meet the following prerequisites in order to choose the QRMP scheme:

• The taxpayer must be opted out of the composition scheme or registered as a regular taxpayer.
• The taxpayer’s user ID and password must be current in order to register for GST.
• Up to 5 Cr. is the Annual Aggregate Turnover (AATO) for the current and prior fiscal years (where applicable).
• The most recent tax period’s Form GSTR-3B return has been submitted.
• For the relevant period, no data has been saved in Form GSTR-1 on the portal.

How can I fill out the paperwork to change my profile for the GST registration’s quarterly return and monthly payment (QRMP) scheme?

Follow these steps for GST registration online to modify or choose the Form GSTR-1 and Form GSTR-3B filing frequency under the Quarterly Return and Monthly Payments (QRMP) scheme:

1) Go to the URL www.gst.gov.in. It shows the GST Home page. Select the Opt-in for Quarterly Return checkbox under Services > Returns.

2) Then the page for opting in for quarterly returns appears. Select the year you want to change the filing frequency for from the Financial Year drop-down list, then click the SEARCH button on the GST Registration Online page.

Also Read – Is GST Registration Mandatory for company

3) If you want to apply for a GST number, the following information is shown on the screen.

• Quarter: It provides a list of the four quarters for the chosen fiscal year.
• Selected Frequency: It shows the choice between monthly and quarterly for the quarter. Quarters that are available for selection are marked in grey, while those that are not are highlighted in green with a SAVE button. Only the first quarter of FY 2021–2022 will be available for selection; the other quarters will not be.
• Result: Places the SAVE button next to the quarter for which the choice is appropriate.
• Choice made available: Shows the precise dates in the quarter that the choice is made accessible from.
• Form GSTR-1 and Form GSTR-3B return due dates is shown: It shows the applicable return due dates for the first, second, and third months of a quarter.

4)You can click the continue to returns dashboard button to execute any action in the return’s dashboard, such as refer to Form GSTR-1 or Form GSTR-3B.

5)The taxpayer’s Annual Aggregate Turnover (AATO) for the prior fiscal year is shown.

6)To access the advice pertaining to the QRMP scheme in PDF format, click the Advisory button. You can view the help for this page by clicking the Help button.

7)To switch the frequency of filing to monthly or quarterly, choose the radio choice for the appropriate quarter, then click the Record button to save your preference on the GST registration website.

8)There is no option to choose quarterly return filing for taxpayers whose Aggregate Annual Turnover (AATO) is larger than 5 Cr. The filing choice will be monthly only.

9)The screen shows a confirmation message. Choose the OK option. A success message that verifies a successful profile change to the chosen filing frequency is shown. Choose the OK option.

10)The Opt-in for Quarterly Return page is displayed when the OK button is clicked. The SAVE button is deactivated, the screen appears, and the filing frequency has been set.

11)An email and SMS are sent to the taxpayer’s primary authorized signatory after the taxpayer chooses to participate or not in the QRMP scheme.

12)To access the returns page, click the continue to returns dashboard button.

13)You can click on the link on the GST registration online website if you are Micro, Small, or MSME and would like to express interest in receiving a Mudra Loan up to Rs10 Lacs or MSME Loan up to RS 5 crore.

14)To share your information with the Department of Financial Services, complete the consent form and press the SUBMIT button. The message that follows will then be shown. To return to the Returns dashboard for GST registration, click the CLOSE button.

LegalRaasta is a GST registration consultant that you can speak with if you are having any issues filing your GST.

Conclusion

You will learn the fundamental steps involved in filing a GST return in this blog post, along with all the prerequisites. The Quarterly Returns with Monthly Payment (QRMP) Scheme enables qualifying taxpayers to file Forms GSTR-1 and GSTR-3B on a quarterly basis while making monthly challan payments for their tax obligations.

The Goods and Services Tax (GST) is an indirect tax that is paid when purchasing goods or services for consumption. It is a value-added tax applied on services.

We sincerely hope you enjoyed our blog and that you will share it on other social media sites. If you are interested in GST, please get in touch with LegalRaasta, a GST registration consultant.

The post Learn How to Submit GST Returns appeared first on LegalRaasta Knowledge portal.

If your entire annual revenue is greater than Rs. 40 lakh for sales of commodities, Rs. 20 lakh for special category states, Rs. 20 lakh for sales of services, and Rs. 10 lakhs for special category states, you must register for an online GST filing. The GST has significantly altered the country’s taxation system since it was implemented into the Indian economy.

Although the Goods and Services Tax (GST) is supposed to simplify the taxation process and make doing business easier in the long run, it is crucial for businesses and stakeholders to comprehend GST and the role of the GSTIN, or the Goods and Services Tax Identification Number, which will have an immediate impact on how their business operates.

Every firm that registers itself under the GST is given a 15-digit unique code called the Tax Identification Number, or GSTIN. The Government of India has made applying for a GSTIN through online GST Filing free of charge.

In this blog post, we addressed the question of whether GST registration is necessary in India. If you still need help figuring out how to register for GST online, contact the legalraasata team.

Following is a list of the taxes that the online GST register has taken the place of:

• Sales tax or value-added tax
• Entertainment tax under octoi
• Taxes on gaming, betting, and lotteries
• buying tax
• Service tax Luxury tax
• Added excise taxes
• such as central excise duty

Slabs of GST Tax

There are five different GST rates for different goods and services in India: 0% GST, 5% GST, 12% GST, 18% GST, and 28% GST. The GST Council regularly assesses the items included in each slab rate to make sure they continue to be pertinent to market developments and industry requests.

Under the current system, taxes are levied at lower rates on basic goods and higher rates on luxury goods and services. Farmers, businesses primarily involved in selling and distributing agricultural products, businesses supplying goods or services that are completely or partially exempt from tax, and businesses engaged only in those activities are exempt from the requirement to complete an online GST registration.

Mandatory GST registration:

• Companies that supply goods and services between states.
• Casual taxpayers and non-resident taxpayers.
• The reverse charge method affects taxpayers.
• Businesses that were registered for previous tax systems like VAT, excise tax, and service tax.
• Any company involved in the supply of goods whose annual revenue surpasses the new threshold of either 20 lakhs for special category states and 40 lakhs for states in the normal category that have chosen the new threshold, such as the state of Telangana.
• Any company involved in the provision of services whose annual revenue exceeds 20 lakhs in states falling under the normal category or 10 lakhs in states falling under the special category.
• Supplier’s representatives and distributors of input services.
• Businesses that provide individuals or businesses in India with online information, database access, and/or retrieval services from outside India.
• Businesses that offer through e-commerce aggregators and e-commerce aggregators for online GST registration.
• Other people and companies that have been informed by the federal or state governments following a recommendation by the GST Council.

Application requirements for online GST filing

• All businesses engaged in the supply of commodities that have annual revenues greater than 40 lakh in a fiscal year must register as regular taxable entities. For the Indian states of Jammu and Kashmir, Himachal Pradesh, Uttarakhand, and the North Eastern region, this barrier is set at 20 lakh.
• All service providers must register for the GST as a regular taxable business if their annual turnover reaches 20 lakh in a financial year.
• For the special category states of Jammu & Kashmir, Himachal Pradesh, Uttarakhand, and the North Eastern States, the annual turnover ceiling is 40 lakh.
• Businesses that are required to register for GST, regardless of annual turnover, irregular taxpayers, input service distributors (ISD), agents, internet sellers, and out-of-state suppliers of goods and services to non-resident taxpayers.
• The reverse-charge scheme requires the person to pay tax. Provider of Online Data Access and Retrieval for TDS/TCS Deductor Registration is required in every state where a business operates, which is significant if that business works out of numerous states.

Documents Required For GST Registration:

• PAN, Aadhaar, a photograph, an electricity bill, a rent agreement if it is rented, and a bank statement or cancelled check—all after registration—for the proprietor.
• PAN of the Entity PAN, Aadhaar, Photos of the Partners, Authorized Signatory Letter, Electricity Bill, Rent Agreement if it is rented, and Bank Statement/Canceled Cheque but only after registration are required for Partnership Firms.
• PAN of the Entity, Certificate of Incorporation PAN, Aadhaar and Photograph of the Directors/Partners, Authorized Signatory Letter, Electricity Bill, Rent Agreement, Digital Signature Certificate, Bank Statement, and Canceled Cheque after Registration are required for Private Limited Companies/LLP.

Aadhaar authentication for GST Registration Process

• According to the modification, anyone who files a GST return online must complete the Aadhaar authentication process, which is meant to take place on the day the application is submitted.
• If someone opts not to use Aadhaar authentication, it is regarded necessary to physically inspect the location of the relevant business.
• The registration number cannot be issued before the physical verification or authentication. Within 21 days of the submission of an application filed without first undergoing Aadhaar authentication or after an unsuccessful authentication, a notice in the form GST REG-03 is given. In cases where Aadhaar authentication has not been selected or has failed, the officer must respond to the application within 21 days of the day it was submitted. The registration shall be regarded as accepted if the officer does not issue the SCN within those 21 days.

Conclusion

If a taxpayer registers his or her business for GST, then online GST filing is required. Huge fines can be imposed for noncompliance. Candidates must follow a specific process in order to register for GST. Users must also take meticulous care to follow the instructions in order to prevent future delays in the processing of the application.

As a result, we have clarified whether GST registration is required in India. High-quality GST registration services are offered by Legalraasta, making it simple for taxpayers to complete their enrollment and Call our GST experts right away for a free consultation and to register for GST online!

The post Is GST Registration Mandatory for company? appeared first on LegalRaasta Knowledge portal.

What are some common errors made when submitting GST registration Details?

Error 1: The taxpayer’s incomplete Aadhaar authentication

One error in the submission of GST returns is the taxpayer’s Aadhaar authentication being missing. Since January 1, 2022, Rule 10B has been in effect, requiring taxpayers to have their Aadhar authenticated for the following reasons:

• Must submit an application for the revocation of the GST registration’s cancellation.
• To submit the RFD-01 Refund Application.
• To make a claim for a refund under IGST Rule 96 for goods exported outside of India.

Problem: If the taxpayer does not have his Aadhaar authenticated, it could cause him a number of issues. For example, if his GST registration process has been cancelled and he applies to have it reinstated, he may discover that there is an inconsistency between the information on his Aadhaar and the information in the GST database. Therefore, getting an Aadhaar authentication done is always advised for taxpayers.

Error 2: Failure to adhere to Rule 86B

One of the errors in the GST Registration Process filing is failure to comply with Rule 86B’s prohibition on the use of electronic cash ledgers. Rule 86B became operative on January 1, 2021. According to this rule, the taxpayer is not permitted to use the sum in the electronic cash ledger to satisfy output tax obligations that exceed 99% of those obligations. Additionally, it is applicable each time the value of taxable supplies—aside from those that are exempt and zero-rated—exceeds 50 lakh rupees.

Exclusivity under Rule 86B

If the aforementioned individual, the proprietor, the karta, the MD, or any of its two directors, full-time directors, members of managing committees of associations, or board trustees, as the case may be, paid more than one lakh rupees in income tax under the Income Tax Act of 1961 in each of the two fiscal years for which the deadline to file the ITR under Section 139(1) of the Act has passed.

Also Read – Who Requires ISO Certification

According to clauses I and (ii) of the first provision of section 54(3), the registered person received a refund amount totaling more than one lakh rupees in the previous financial year on account of unutilized ITC.

Through an electronic cash ledger, the registered person has satisfied his output tax debt for an amount that exceeds 1% of the total output tax owed up to and including the specified month in the current financial year.

The GST department has sent notices of non-compliance of Rule 86B to many taxpayer in recent times. For those taxpayers whose monthly taxable value exceeds Rupees 50 lakhs, it is crucial to determine if they have complied with Rule 86B.

Error 3: TDS and TCS not being claimed by taxpayers

It has been noted on numerous occasions that taxpayers lack knowledge regarding the claiming of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) and make errors when completing the GST Registration Process in accordance with the regulations of GST.

When the total value of a supply under a contract exceeds 2.5 lakh Rupees as per the invoice exclusive of GST, TDS is deducted by the Central Government, State Governments, Government Agencies, Local Authority, and notified people at the rate of 1% under the GST regime. This TDS must be put in the government’s credit account so that the receiver may claim it. This TDS appears in the assessee’s electronic cash ledger, which the assessee can use to settle any GST liabilities, including those incurred due to the reverse charge mechanism.

Every e-commerce operator is required under GST to collect 1% of the net value of all taxable supplies made by suppliers on its platform, where the e-commerce operator also receives payment for those supplies. This TCS must be put in the government’s credit account, which the receiver may then use. This TCS appears in the assessee’s electronic cash ledger, which the assessee can use to pay off any GST liabilities, including liabilities under the reverse charge mechanism.

Also Read – Food Safety and Standards Authority of India

One of the problems in completing GST returns is the taxpayers’ incorrect notion that TDS/TCS falls under Income Tax and accounting for it as such. The TDS/TCS that the taxpayer does not claim results in a direct loss for them. Contact the GST registration service provider Legalraasta in order to avoid making such a mistake.

Conclusion

With the proposed GST regime in place, where the taxpayer does not have the freedom to change the returns they have filed, it is crucial to avoid making mistakes when filing GST returns. The taxpayer’s incomplete Aadhaar authentication is one example of a mistake, as is his failure to comply with Rule 86B prohibition on the usage of electronic cash.

Another example of a mistake under GST is the taxpayer’s failure to claim TDS and TCS, which results in a direct loss to him. In order to prevent these kinds of errors, get in touch with Legalraasta and get your GST registration in 1 day.

The post Common mistakes in filing of GST Registration appeared first on LegalRaasta Knowledge portal.

The e-filing system for the Goods and Services Tax has made it simpler than ever to file your taxes. It’s so simple that you don’t even need a computer or smartphone to do so. Still, there are some best practices you should follow to make the process smoother. This article is your guide to get your GST return ready.

Define GST

With the introduction of GST, the indirect taxes that are currently levied on a variety of goods and services by both the federal and state governments would be replaced by a single law.

Therefore, if you haven’t registered for a GST number and applied for one, now is the time to do so. With a single Taxation ID, transactions for your company across several states and localities will be made simpler. The new GST programme has a variety of advantages for businesses that register.

Get Started with GST Registration Online Filing: A Step-by-Step Guide

The GST Act, which governs the filing of your GST returns, has been in effect since 2006. This means that you have been filing your taxes online since the beginning of the decade. In fact, the first online filing for GST returns was in July 2015. Online filing of your GST return is now a simpler process than ever before.

Also Read – How Much Time does It Take for a Trademark To be Approved

What’s more, the way you file your GST online has also changed. This means that it’s essential that you know the updated process for filing your taxes online. This article is your guide to get your GST return ready. When should you file your GST return? GST returns must be filed every month on the 11th and on the 20th of the month, respectively, if you wish to file GST R1 and R3B. The deadline for submitting annually GST returns is, however, 31th December this year. According to the GST Annual Return, you must submit your GST return by December 31 of this year.

Know the Deadline for e-Filing

The e-filing deadline for GST is Dec 31th this year. However, if you have a valid reason for filing your return later than this, you can still file your return electronically. This is a boon for all those who have a reason for filing late.

One of the common reasons for filing late is when the software or the internet services are down. If this happens to you, don’t worry. We have a few tips to help you file your return when the software or services are down. You can file your return through email, or through a mobile or web service. You can also file your return using a notary. You can also file your return using an older form if you have a valid reason for doing so. Additionally, you can file your return if you do not have a computer or if the software is not working. The best way to avoid such a deadline is to have Legalraasta file your GST return for you.

Know the Forms you need to File Your Return

When you file your return, you need to submit certain forms. You can check out the details of these forms and their requirements below, and also file your returns accordingly.

• Business/Merchant Account Application – This form is required if you are a merchant or a person who makes sales. You must have a business or merchant account for GST to be filed.
• GST Refund Claim Form – This form is required if you are filing a claim for a refund. You can only file this form if you have purchased items and paid the tax on them and you have a valid reason for filing your return late.
• Invoice/Order Form – This form needs to be filled out by the person who sold the goods. In case of a business sale, this form must be filed by the business owner.
• Credit Note/Bank Reconciliation Form – This form must be filed by the person who received goods as a payment.
• Service Return and Original Service Document Forms – These forms are to be filed by the people who rendered services.

Check for Errors and Update if Necessary

As you file your return and make payments, you must make sure that you check for errors and update if necessary. This is important for two reasons.

Firstly, you must make sure that you are filing your returns accurately and timely.

Also Read – How Do I Register My Brand Name

Secondly, you must make sure that you are making legitimate payments and not just filing them to get them done. When you have filed your returns, you must go back and check for any errors. You can amend your returns if necessary. You can amend a return if you have filed it incorrectly. You can amend a return by entering the correct information and filing the return again. You can make other amendments as well if you have made an error while filing the return.

Summaries you’re Findings in a Conclusion

The e-filing of GST returns has made it simpler than ever to file your taxes. However, there are a few best practices that you must follow to make the process smoother. These include ensuring that you check for errors and update if necessary, and summarizing your findings in a conclusion. This article is your guide to get your GST return ready. Therefore, if you have any questions about GST return filing or GST registration, please contact a Legalraasta team advisor.

The post GST Return Online Services: A Step-by-Step Guide to Get Your GST Return Ready appeared first on LegalRaasta Knowledge portal.

The vast majority of businesses are required to register for GST. Businesses that violate GST legislation, such as failing to register for GST before conducting business, face stiff penalties. The GST registration service provider threshold limit has remained constant, and a person must register if their annual income exceeds 20 lakhs or 10 lakhs. So, this article explains what the GST registration limit is, whether it is 20 lakh, 40 lakh, or both, and for which categories. If you have any questions about the online GST filing limit, you can contact our Legalraasta consultation team.

GST registration limit 20 lakh or 40 lakh

In India, registration under the GST is subject to a yearly limit on the number of exemptions claimed. A person who has a taxable turnover that exceeds the exemption level must register with the GST. Depending on the jurisdiction, this is known as a GST registration limit or a GST threshold. In response to MSME concerns, the GST council revised the GST minimum threshold. This has streamlined the GST compliance process. States can choose to tighten the restrictions or keep them as they are. The GST registration limit is a set amount that must be met in order to avoid paying taxes. The GST council increased the exempted amount from GST payment to 40 lakhs, up from 20 lakhs a few years ago. Furthermore, the council increased the maximum exemption amount for the northeastern states from 10 lakhs to 20 lakhs.

The amount of exemption available for registration under the Goods and Services Tax (GST) in India is limited. It is also known as a GST threshold or GST registration limit if someone’s turnover exceeds the exemption threshold.

1. In the Case of a Regular Taxpayer for Goods Registration: Under the original GST structure implemented by the government, the GST turnover limit for suppliers of goods was Rs. 20 lakhs. Except for the special category states. In other words, suppliers of goods with an aggregate annual turnover of up to Rs 20 lakhs in the preceding fiscal year were exempt from GST registration. Thus, suppliers of goods with an aggregate annual turnover of Rs 40 lakhs or more in the previous fiscal year are required to register under GST.However, the GST Council increased the exemption limit from Rs. 40 lakhs to Rs. 40 lakhs at its 32nd meeting. Exemption limit of up to Rs 40 lakhs for making supplies of goods such as ice cream and other edible ice whether or not containing cocoa or Pan Masala or tobacco and tobacco manufactured substitutes for online GST filing under Section 24 of the CGST Act.
2. In the case of Special Category States for Goods Registration Limit: The initial GST registration limit for north eastern and hilly states was Rs. 20 lakhs. According to the 32nd GST Council meeting, the Special Category States are Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand for the supply of goods.
3. In Case of hilly and north eastern states for Goods Registration Limit: However, the hilly and north eastern states were given an option for Goods Registration Limitation. GST exemption is available to suppliers whose turnover is between Rs. 20 lakhs and Rs. 40 lakhs.
4. In Case of Normal Taxpayer for Services Registration Limit: Under the original GST structure rolled out by the government in the 32nd GST Council Meeting for online GST filing, the GST turnover limit for suppliers of services was Rs. 20 lakhs, except for the special category states.
5. In Case of Special Category States for Services Registration Limit: In the case of Special Category States, the GST registration limit for service providers in the North Eastern and hilly states was Rs. 10 lakhs in the initial GST regime, according to the 32nd GST Council Meeting in online GST filing.

Compulsory Registration for online GST register

• Persons making interstate taxable supplies and casual taxpayers.
• Individuals required to pay tax under reverse charge and Individuals required to pay tax under section 9 and sub-section (5) and Non-resident taxable person and every electronic commerce operator.
• Persons who are required to pay Tax Deducted at Source (TDS) under Section 51, regardless of whether they are separately registered under the Act.
• Input Service Distributor, whether registered separately under the Act or not, for online GST filing.
• Persons supplying goods or services other than those specified in section 9 and sub-section (5). These supplies are made through an electronic commerce operator who is required by section 52 to collect tax at the point of sale.
• Persons who, as an agent or otherwise, supply taxable goods or services on behalf of other taxable persons.
• Any other person notified by the government of the Council’s recommendations.
• Persons providing online information and database access or retrieval services from outside India to a person who is not a registered person in India.

States Accepting New Limit

As previously stated, the GST Council in its 32nd meeting gave hilly and north eastern states the option of setting the turnover limit for GST exemption in the case of a supplier of goods at Rs. 20 lakhs or Rs. 40 lakhs. Thus, the following states have adopted the various thresholds for GST registration in case of supply of goods: Manipur, Mizoram, Nagaland, and Tripura for states accepting 10 lakhs limit; Arunachal Pradesh, Meghalaya, Puducherry, and Sikkim Telangana, and Uttarakhand for states accepting Rs 20 Lakhs limit; and States accepting Rs 40 Lakhs limit are the remaining 21 states and 5 union territories.

Conclusion-

As a result, SGST + CGST would be levied in 31 states and UTGST + CGST would be levied in 5 union territories. In addition, GST Section 24 of the CGST Act of 2017 requires taxpayer registration. However, a person making inter-state supplies of handicraft goods with a total turnover of Rs 20 lakhs is exempt from registration. This exemption would apply if the taxpayer supplying goods from any of the states listed above has a PAN. Furthermore, regardless of the value of the consignment, the goods supplied by such a taxpayer must be transported under the cover of an e-way bill. So, in this blog, we will clarify whether the limit for online GST registration is 20 lakh or 40 lakh, and if you still have questions, you can consult legalraasta legal advisory consultancy. Because of the frequent changes in the law, there have been numerous inquiries about the GST level. Do you have GST issues? Contact a friend-in-need for a one-stop solution for all income-tax or online GST filing, employee management, and other legalraasta.

The post Does GST have a Registration Limit of 20 Lakhs or 40 Lakhs? appeared first on LegalRaasta Knowledge portal.

When does GST registration in India become necessary?

• Every taxpayer whose annual revenue exceeds 40 lakhs must register for GST. If you wish to offer goods and services at occasions or exhibitions where you don’t need a permanent home for your business, you must register for GST. Based on a 90-day projection of sales, such a merchant is required to pay GST. The 90-day validity period for a temporary GST Registration status.
• A non-resident Indian (NRI) must file for GST registration in India if they intend to open a business there. Only 90 days after it is created, a new GST registration status is considered to be active.
• For enterprises that employ the reverse charge method as well as all input service distributors and supplier agents that desire to carry forward the benefit of the input tax credit, GST registration is necessary.

Raised GST Registration Barrier

Before the Goods and Services Tax was implemented, firms that made more than 5 lakh in a year were obligated to pay taxes. Companies must register with the Goods and Services Tax if their annual revenue exceeds 40 lakh rupees. The top limit for service providers is Rs. 20 lakhs. The raised GST threshold in India has benefited a lot of small businesses, notably startups. For Indian small businesses, the GST has also created a composition system. Under this proposal, businesses with yearly sales of less than Rs. 1.5 crore are eligible for a lower tax rate. Before registering, you can use our GST consulting agent to determine how much GST you owe.

Tax Credits are Available for Purchases

The majority of startups in India are in the service industry. Before the introduction of the GST, they had to collect and pay service tax to the government. One of the biggest worries was that the VAT paid on business purchases wouldn’t be used effectively. The state VAT that was paid could not be subtracted from the service tax. Because of the Goods and Services Tax’s introduction, the problem has been resolved. For instance, a company can subtract the GST tax they pay from the tax they pay on their sales when making purchases like office supplies.

What justifies GST Registration?

• Businesses who register for GST receive many advantages, including formal recognition as valid business entities and ongoing legal changes due to their registration status.
• Your tax registration will enable you to outbid your unregistered competitors more successfully.
• Before you may sell products or services on an e-commerce platform like Flipkart, Amazon, or your own website, you must first register for GST and obtain a GSTIN number.
• The only people who can use input tax credits on purchases and save money are registered GST holders.
• In India, there are no limitations on where you can sell.
• If you don’t have your GSTIN, you can’t transact business over state lines. Only a business with a GST registration can do this.
• A GSTIN number is necessary to apply for several government contracts. If GST is not implemented in India, there is a possibility of losing out on a commercial opportunity.

What is the GSTIN Number Used For?

The term GSTIN, or Goods and Service Tax Identification Number, is an acronym. There are a total of 15 letters and numbers. This document is created by the government following a successful GST registration.

Registration & Tax Return Filing Process

In order to submit papers and obtain an identification number, people are no longer need to rush from one tax office to another. The GST registration and return filing process is now quick and simple thanks to the internet. Obtaining a registration number doesn’t take long provided all the necessary documents is on hand. Cash-strapped companies will benefit financially from the Goods and Services Tax (GST), which was recently implemented. In India, the Goods and Services Tax (GST) has been implemented, providing a much-needed respite for new and small enterprises.

Documents Required for GST Registration

• PAN number: PAN number of the firm or individual seeking a loan is associated with their PAN card. PAN number and the GSTIN are same. You must apply for GST Registration with a PAN number in order to receive a GST certificate.
• Identity Validation: Anyone starting a business must provide identification and address documentation, such as a PAN card, passport, driver’s licence, or voter ID card.
• Address Proof: If you’re requesting GST, you must demonstrate that your address is the location of your firm. This could be a lease, a purchase contract, a copy of your most recent utility bill, a property tax receipt, or a municipal khata.
• Bank Account Proof: You must provide evidence of your bank account if you wish to open a business. The first page of your bank passbook, which contains a few transactions and the address of your company and aids in determining your GST status, must be scanned and sent in.

How could billing be made simpler for small businesses?

• Making an assertion: It is simple to construct an invoice by making many invoices thanks to the platform’s user-friendly design. Details of the products or services are provided, but only the value and any applicable GST are required. One will be produced for you whenever you click the forum’s “Create Invoice” button.
• Share the following with your client: One option is to provide a unique link to your GST-compliant invoice in an SMS or email that you send to your clients.
• Payments will be made to your account: Your customers can then proceed to make the payment right away. Your customers can download and save the invoice to their files as an added convenience. Even transparent partial payments can be made on an invoice to guarantee that your company’s policies are being followed. Consumers can benefit from a variety of details, such as the GST status of a customer’s bills and how quickly they were paid.

Conclusion

One of the most important things to keep small and medium enterprises in India operating smoothly is GST registration. This article demonstrates the need for a GST number for GST registration in India. Because it is not only straightforward but also advantageous to aspiring businesspeople. The GST number can be used to get loans, cut expenses, and improve the flexibility and efficiency of corporate operations. It might take a lot of time to register for GST, especially for new businesses or small businesses. In order to save time and obtain your GST number more quickly, you may choose our Company LegalRaasta to work with a chartered accountant.

The post Is GST No required for small business? appeared first on LegalRaasta Knowledge portal.