Des- GST registration is most important for all kinds of business, so you must know the latest update GST registration in 2023 for clear your doubts.
GST was introduced to overthrow different other indirect taxes and to build a single taxation system. Also, it helps in easing collection and to increase the process efficiency.
GST Registration is mandatory for all the businesses who have annual turnover of over Rs. 40 lakhs for sale of goods and for North Eastern. (All hilly states for sale of goods). For service providers, there has no change in the threshold limits for service providers. All the persons who are providing services need to do GST Registration if their annual turnover exceeds ₹20 lakh (for normal category states) and ₹10 lakh (for special category states).
GST Registration Imposition through Multiple Stages
For certain businesses, GST Registration Online is essential and if any individual still carries on his business without getting the GST Registration, it will be treated as an offense under GST Act and he will get heavy penalties. GST Registration is an online process and imposes GST at every point of the supply network to set off all the available tax benefits.
Through various stages, every product has to go through including the purchase of basic materials, manufacturing, whole selling, and the retailing of the products, and then it goes through the final sale to the consumer for consumption and usage. GST will be based upon all of these 3 stages-
Every goods and services goes through these various stages which is following:
⦁ Purchase and Manufacturing of basic material,
⦁ Wholesaling and retailing the goods,
⦁ Final sale to the consumer for consumption.
GST is essential in the following cases-
⦁ When the Threshold limit of aggregate turnover exceeds.
⦁ In some certain businesses, compulsory Registration is needed.
⦁ Voluntary Registration
The GST is combined in the final price of all the goods/services since its purchase that disqualifies all the indirect taxes that have been obliged by the central government and the state government in India.
What are the Benefits of GST Registration?
The benefits of GST registration are given below:-
Simplifies Taxation Services
GST has combined several indirect taxes under one umbrella and integrated the Indian market.
Reduction in the cost of products and services
With the introduction of GST, the cascading effect of VAT and a range of taxes has been eliminated resulting in reduction in the cost of goods and services.
Helps in avoiding long taxation services
GST registration online helps small businesses to avoid lengthy taxation services. Since a service provider with a turnover of less than 20 lakhs and a supplier of goods with a turnover of less than 40 lakhs are exempted from paying GST.
It aims to reduce corruption and sales without receipt.
GST was introduced with the aim of reducing corruption and sales without receipt. Also, it helps small companies to reduce the need for compliance with various indirect taxes.
Uniformity in Taxation Process
GST registration brings uniformity in the taxation process and allows for centralized registration. This helps businesses to file their quarterly tax returns through an online process.
minimize tax evasion
With the implementation of GST, tax evasion has come down to a great extent.
Upper limit for registration
In the past, under the VAT system, any business having a turnover of above than Rs 5 lakh was responsible to pay VAT in India. Apart from this, service providers with turnover of less than Rs 10 lakh were exempted from service tax. Further, The limit of It has been raised by Rs 20 lakh, under the GST regime. giving dispensation to many traders who are small and many service providers.
Structure plan for small businesses
Under a GST, Businesses which are small and have a turnover of Rs 20 to 75 lakhs can get a benefit as it provides an option to shorten taxes by using the composition scheme. This move has decreased the tax and compliance burden on many small businesses.
Simple and easy online process
The entire GST Registration process (from registration to return filing) is done online, and is very simple with Legal Tax. This has mainly been beneficial for start-ups as they do not have to run around for obtaining miscellaneous registrations like VAT, Excise and Service Tax.
Compliance is few in number
Earlier, there were VAT and Service Tax, each with its own returns and compliances. On the other hand, under GST, there is only one, integrated return to be filed.
Unorganized sector rules
It was usually noticed that there were certain industries like the building construction industry and textile industry which were largely unorganized and unregulated, In the pre-GST era. However, under GST, there are provisions for online compliance and payment, and input credit can be availed only when the supplier has accepted the amount. This has delivered adjustments and accountability in these industries.
Eligibility Criteria for GST Registration
The following mentioned persons/entities are required to be registered under GST –
⦁ Any business entity whose aggregate turnover in a financial year exceeds Rs 40 lakh (Rs 20 lakh for special category states under GST).
⦁ Note- This clause is not applicable if the unit is dealing only in the supply of goods/services which are exempt under GST.
⦁ Every unit which is registered under the old law of taxation (i.e., excise duty, VAT, service tax, etc.) is required to get registered under Goods and Services Tax.
⦁ Any entity or supplier engaged in inter-state supply of goods.
⦁ Casual taxable person
⦁ Taxpayers under reverse charge mechanism
⦁ Distributor Service and its agents
⦁ E-Commerce operator or Aggregator
⦁ Non resident taxable person
⦁ A dealer’s agent
⦁ A person who is supplied over an e-commerce aggregator.
⦁ Entities that register, are providing online information, receiving investors, or monetized entities, from any place outside India, to any person in India, other than the eligible person.
What are the GST Modes in India?
For GST administration, a model was devised where the government (center and states) have the powers to levy and collect the tax through their respective legislations. The GST Modes are given below:-
CGST is a tax collected by the Central Government on interstate supply of goods and services. When the location of the seller and the buyer are in the same state, it is called an inter-state supply of goods or services. Here, A seller has to collect both CGST and SGST wherein CGST remains with the Central Government while SGST is collected by the State Government.
SGST is a tax levied by the state government on the interstate supply of goods and services.
It is governed under the IGST Act, where the seller has to gather IGST from the buyer, and the tax collected will be separately divided in both central and state governments.
Union Territories GST
Union Territory GST is applicable when any goods and services are consumed in the Union Territories (UTs) of India and the revenue is collected by the Government of the Union Territory.
What are the components of GST?
⦁ GST Registration number
⦁ Legal name and constitution of the business
⦁ Trade name
⦁ Period of validity
⦁ Taxpayer type
⦁ Date of Liability
⦁ Signature of Applicant
What is the 5 slab structure under GST?
The GST regimes were designed keeping in mind the common man and inflation rates. To make it simple and easy, GST was structured according to a four-tier structure. These four are provided below, which are as follows-
Zero rate tax means zero tax levied on goods and/or services.
The lower tax rate sets the 5% tax rate that is applied to the CPI (Consumer Price Index) basket and mass consumption.
The standard rate includes the 12% and 18% tax rates.
The higher rate tax comprises 28% of the tax rate under GST regulation.