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The most fundamental requirement of the tax authorities to identify taxpayers, is through their GST Registration Online number. Thus, unless a person is registered under the tax regime, he can neither collect tax from others, nor can he get input credit for the tax paid by him, which can be utilized to set off his future tax liability.
GST is an indirect tax that was formed to abolish several other indirect taxes in India, to create a single taxation regime for ease of collection and to increase the efficiency of the process. New GST Registration Online is mandatory for all dealers or entities having turnover above a specified threshold limit.
For those taxpayers whose annual turnover is less than 1.5 crore, the GST framework provides an option for a composition scheme. This scheme allows them to undergo simplified GST procedures and pay taxes at a predetermined rate according to their turnover.
The GST mechanism operates throughout various stages of the supply chain. This includes acquiring raw materials, production, wholesale, retail, and the eventual sale to the end consumer. Notably, GST is imposed at every one of these steps. For example, when a product is produced in West Bengal and then used in Uttar Pradesh, the GST revenue generated is allocated entirely to Uttar Pradesh, emphasizing the consumption-based nature of GST.
GST Registration Online is not mandatory for those engaged in supply of agricultural produce from cultivation, making only exempt supplies of goods and services, or making supplies that are entirely covered under reverse-charge. Registering under GST composition scheme helps small taxpayers by reducing the tax burden. However, GST Registration in Delhi is mandatory for the following individuals/ entities:
Inputs are all those goods that went into making the completed products issued to the final consumer. Organizations are charged GST on goods/services that are utilized as inputs. The ITC mechanism permits GST registered businesses to accept refunds on the GST paid for acquiring all inputs. This helps to avoid the cascading taxation effect, which was the essential purpose behind the introduction of the GST.
For example, GST payable on the stock of the last product of a manufacturer is Rs. 850 and the GST paid on inputs is Rs. 725. The producer can demand Rs. 725 as ITC. This brings the net tax payable during the supply to Rs. 125 only (Rs. 850 – Rs. 725).
Under the past indirect tax system of levy of Service Tax, VAT, and Excise – a lot of input tax credit was not appropriately utilized.
ITC is accessible only for those elements that have enrolled under the GST Act. Only GST registered businesses can assert ITC on the tax paid for the buying of any business relevant inputs.
Input Tax Credit can be asserted only for business purposes. It is not accessible for goods or services completely used for:
Along with the above mentioned, there are some other cases where ITC will be switched. Such as Credit Note issued to ISD, Non-payment of invoices within 180 days, recourses bought partly or wholly for excluded supplies or personal use, etc.
All the individuals and entities who qualify under the eligibility criteria are mandated to go through GST Registration. Defaulters who fail to comply with the rules and do not pay the tax or make short payments (genuine errors) instead of full payment are liable to pay a penalty. The penalty for tax evasion by an offender will be 100% of the tax amount due. The amount to be paid as penalty for not registering under GST is 10% of the total tax amount due subject to a minimum of Rs. 10,000.
GSTIN is a unique 15 digits Goods and Service Tax Identification Number allotted to each tax payer, which has the following format: STATE CODE PAN ENTITY CODE CHECK SUM CHARACTER | | | | | | | | | | |
Special category states include- Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
Any person registered in any state of India, but which operates from various places, having no fixed place of business in the other state from where it operates is known as casual tax payer for the registration requirement under that other state. He transacts business only occasionally.
A person, having no fixed place of business in India and transacts business only occasionally.
Yes, some may be made directly by the tax payer in the GST portal itself. However, for certain other changes, an application to the proper officer, along with the supporting documents needs to be made. The proper officer may accept, or reject changes sought. But rejection possible only after providing the applicant with an opportunity of being heard.
No, only persons registered under GST are allowed to collect GST from the customers. A person not registered under GST cannot even claim the input tax credit on the GST paid.
A Goods and Services Tax (GST) certificate is a document issued by the Indian government that certifies that a business is registered with the Goods and Services Tax (GST) system. It is a unique identification number that is used to identify a business for taxation purposes in India.
Any business that is registered for GST with the Indian government must have a GST certificate. This applies to both online and offline businesses.
Yes, in India, businesses must obtain a GST certificate in order to be registered for GST. Without a GST certificate, businesses will not be able to charge GST on the goods and services they sell.
Businesses with an annual turnover of more than Rs. 40 lakhs are required to register for GST. However, this limit is lower for businesses in certain special category states, such as Arunachal Pradesh, Manipur, and Nagaland. Also, there are different rules for businesses involved in e-commerce, which may have to register for GST regardless of their turnover.
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