What is GST
GST Registration stands for Goods and Services Tax, which is a value-added tax levied on the supply of goods and services. It is a tax reform introduced in many countries around the world to simplify the indirect tax system and reduce the burden of multiple taxes on businesses and consumers.
Under GST, all goods and services are classified into different tax slabs, with rates ranging from 0% to 28%. The tax is levied on the value added at each stage of the supply chain, and businesses can claim input tax credit for the GST paid on their purchases.
GST has replaced various indirect taxes such as central excise duty, service tax, value-added tax (VAT), and others, thereby eliminating the cascading effect of taxes and reducing the overall tax burden on businesses.
GST has been implemented in several countries, including India, Canada, Australia, New Zealand, and many others. The specific rules and regulations regarding GST may vary by country.
How to Register GST Online
The process of registering for GST online can vary by country, but in general, the following steps can be followed:
- Visit the official GST portal of your country. For example, in India, the GST portal is www.gst.gov.in.
- Click on the “Register” button on the homepage.
- Fill out the registration form with all the required details such as your business name, address, email ID, PAN (Permanent Account Number), and bank account information.
- Upload the necessary documents such as proof of identity, address proof, and other relevant documents.
- Submit the form and wait for a verification email or message from the tax authorities.
- Once your application is approved, you will receive a unique GST registration number (GSTIN) and a certificate of registration.
It’s important to note that the specific documents required and the registration process can vary depending on the country and the type of registration you are applying for. It’s always a good idea to consult with a tax professional or the relevant government agency for specific guidance and instructions.
Who can register for GST?
- People who were already registered under tax services before the implementation of GST
- Whose business turnover is Rs.40 lakh. (If you are from North-Eastern states, Jammu-Kashmir, Himachal Pradesh and Uttarakhand state then turnover should be minimum up to 10 lakhs)
- All E-Commerce Aggregators
- Persons who supply goods through e-commerce aggregators
- A person other than a registered taxable person who transfers database access and online information from abroad to a person in India
- Persons paying tax under reverse charge mechanism
- Agents of Input Service Distributors and Suppliers
Types of GST Registration
This is for taxpayers doing business in India. Normal taxpayer does not require deposit, they have not provided any limit for validity date.
Casual taxable person
The taxpayer setting up a temporary stall or shop has to get registered under Casual Taxable Person.
If a person a. Wants to enroll as Composition Taxpayer, GST Composition Scheme should be chosen. Taxpayers enrolled under the composition scheme will get the benefit of paying a flat GST rate, but will not be allowed to claim input tax credit.
Non resident taxable person
This category is for taxable persons located outside India. Taxpayers must supply goods or services to residents in India.
GST Registration Process
- Getting registered in GST is as easy as filling online form for admission in any college-university.
- You just need to have internet facility.
- You can complete your online registration sitting at home or from office.
- Just keep the necessary documents nearby, open the computer or smartphone,
- Click on the web address of the GST portal www.gst.gov.in.
- Your GST registration will be completed in a few easy steps.
- As your pre-preparation, we are also giving stepwise information about the complete process of GST Registration here. So let’s know, how will be the registration in GST…
Eligibility Criteria for GST Registration
The eligibility criteria for GST registration may vary by country, but here are some common factors that are typically considered:
- Turnover: In most countries, businesses with an annual turnover above a certain threshold limit are required to register for GST. The threshold limit may vary by country, industry, and type of business.
- Type of Business: Some businesses, such as those involved in e-commerce or those that supply goods and services across state or country borders, may be required to register for GST even if their turnover does not exceed the threshold limit.
- Location: In some countries, businesses operating in certain regions or states may have different threshold limits for GST registration.
- Voluntary Registration: In addition to mandatory registration, businesses may also choose to register for GST voluntarily to avail of certain benefits such as input tax credit.
- Others: Some countries may have additional criteria for GST registration, such as the type of goods or services provided, the number of employees, and other relevant factors.
It’s always a good idea to consult with a tax professional or the relevant government agency for specific eligibility criteria and guidance on GST registration.
Impact of GST on Indian Economy
GST provides many benefits to our economy. Here are some of the major advantages: (Benefits of GST in Hindi)
- Create a unified common national market for india, thereby promoting foreign investment and the “make in india” campaign
- To promote export and manufacturing activity and lead to real economic growth
- Help eradicate poverty by creating more jobs
- Uniform sgst and igst rates to reduce incentives for tax evasion
- Impact of gst on consumers
GST is also beneficial for the consumers. Here’s how it affects Indian consumers:
- Simple tax system
- Reduction in the prices of goods and services due to the elimination of cascading
- Uniform price across the country
- Transparency in taxation system
- Increase in employment opportunities
- Impact of gst on traders
GST also has some positive effects on traders. Let’s see how this affects traders:
- Reduction in the abundance of taxes
- Cascading / reduction of double taxation through input tax credit
- More efficient neutralization of taxes especially for exports
- Development of common national market
- Simplified tax regime
- Low rates and discounts
- The distinction between goods and services is no longer necessary