Every product or service that falls under tax mechanism has got a percentage of tax imposed on them. That percentage is kept basing of the income or the turnover of a business or service. That percentage is known as tax rate. For example Household products and life saving drugs are marked at 5%GST. Processed foods and products used in computer are marked at 12%GST. Hair oil, toothpaste, soaps, capital goods, services are taxed at 18%. And then there are luxury stuffs taxed at 28%. However, the items that are considered basic need of a person are exempted from taxes. The tax rates of all stuffs differ and are available in https://cbec-gst.gov.in/gst-goods-services-rates.html .
GSTN is Goods and Services Network, an online portal for upholding all mechanism related to GST. GSTN is a non-profit , private limited company, without any profit received by the Government. It is an indirect tax platform where all the queries regarding GST and its mechanism are solved. When registration is made under GST, a GST identification number is given to the certificate holder. That number is called as GSTIN. All the tax payers or GST registration holders are assigned with a separate GSTIN and they can verify it by enrolling into GSTN portal.
Like any other registration, GST registration also requires a number of documents and information of the tax payers or the business holders. Some of the important documents required for GST registration are as follows;
PAN Card of the Applicant.
Adhaar Card of the applicant
Registration certificate of business or service that a person behold.
Address proof and identity of the person who is the director or founder.
Address of the business or the service.
The bank account statement or a cancelled Cheque.
Digital signature.
A letter of recommendation from an authorised department.
Memorandum of Association
Articles of Association
The following can be used as an address Proof for the founder or business holders.
Passport
Voter’s identity card
Adhaar Card
Telephone bill or electricity bill
Ration card
Bank account Statement
Driving Licence
There are many plans available for online GST Registration. You have to select the plans according to your wish or convenience. And then select the plan under which you want to be registered.
After you have selected or purchased the plan you want to be registered under, the next step is that you will be provided with an online expert who will guide you throughout the process of registration.
Before purchasing a plan you need to gather all the documents that are required for an online GST Registration. Then in this step you need to fill in the GST registration form and then upload the documents as asked in the form.
After you have successfully filled in all the required information and uploaded all the necessary documents, you can submit the form in the online portal of GST.
After you have submitted the form, an ARN number shall be issued immediately which will help you to get your GSTIN.
After the verification of the GST registration form is done and all the compulsory documents are checked by the GST Officer, the GST registration certificate shall be issued along with the GSTIN or GST Identification Number, which will help you to conduct the tax management in further time. You will receive a soft copy of the certificate which you can download from the GST portal.
Note that the Central government has not disclosed any fees for registration of GST in an online portal.
GST Return filing is a procedure in which another form is to be filled by the taxpayer, which shall demand a recalculation of the liability of a GST taxpayer. For this form also there are a certain set of documents that are to be uploaded. The GST return shall be filed under the GST Administration. For filing, GST return the following factors are required;
Output GST on sales
Sales
Input Tax Credit or the GST paid on the purchase
Purchases that are made
GST complaint shares
Purchases invoice
GST registration is statutorily mandate for certain products and services. The failure of which may result is hefty penalties. As per Section 122 of the CGST Act, if a taxable payer fails to register under the Act, he shall be liable for direct penalties.
In case of late filing of GST registration application a fine of rupees 100 for each day and rupees 200 for CGST and SGST. This amount can go up to a height of a hooping 50000 rupees along with the 18% tax.
In cases where taxpayers fail to file any one of the GST forms, he cannot move further with other forms after keeping pending GST forms. There are other offences excluding fraud of tax evasion, a minimum penalty of 10% or rupees 10000 is liable along with several years of imprisonment.
If a business is carried out within two three states then in that case multiple GST is to be registered. A business with multiple centres in multiple states shall have to opt for multiple registration.
Petty businesses or services can go for Composition Scheme in which the business should have an annual turnover of 1.5 crores. In such cases, the business holder need to pay Nominal tax basing upon the type of business they hold.
GST registration is a tedious process which requires the assistance of an expert. It causes a huge delay in the process of uploading data and documents. Even while filing the return the site crashes and it takes multiple hours for the upload process
There is no procedure to rectify or recheck the form or filing of return. If any mistake is made, it cannot be changed.
Filing return of GST is a time consuming process and also there is an additional burden of hiring expert financial accountants which costs them a bomb.
The feedback and help desk is highly slow and the complaints are recorded with a low pace and the results are also not fruitful. The people at helpdesk are highly minimal with their communication and dealing skills.