GST, implemented as the new taxation system in India, refers to Goods and Services Tax which dissolves all the former taxes like excise duty, service tax, etc. It was implemented a year ago and came into effect on July 1, 2017. GST is a result of the implementation of one hundred and first amendment of The Constitution Act 2016. India being a federal nation provides both, the center and the state, a power to collect taxes under CGST (Center Goods and Services Tax) and SGST (State Goods and Services Tax) respectively.
The GST registration is mandatory if the business turnover increases Rs. 20 lakh. Most importantly, even if the turnover is below Rs. 20 lakh, then also the registration is a compulsion. If a person is not registering voluntarily for the GST in the case of low turnover, then he cannot avail:
- Any tax refund- Suppose there is a purchase of Rs. 1 lakh in a business and tax rate applied to the purchase is 28%, then the tax refund that equals to Rs. 28,000, cannot be redeemed.
- The business will be barred from selling outside the state.
Here is a more specific list of the people who should register under GST:
- The businesses had a turnover above Rs. 20 lakh and above 10 lakh for North-Eastern Indian states.
- If registered under any previous tax regime.
- The businesses having branches in multiple areas (different states).
- If supplying goods or services to the other state.
- If the supplier is not registered under GST, then the recipient is supposed to pay the tax.
- If supplying goods or services through an e-commerce website.
- E-commerce websites.
Soon after the new tax regime was implemented in India with the motto of ‘one tax, one nation’, the businesses came under a much-sorted taxation system. Over the time period of a year, almost one crore people and businesses have been registered under Goods and Services Tax. The GST registration online in India requires a definite set of documentation. The registration process becomes easier with the proper documents already being organized.
For the ease of the people, there are many online platforms available that one can seek for a hassle-free registration. These platforms have high-end software implemented with GST tools that help in proficient calculations and assure document safety.
To register online you require:
- The PAN card of your business.
- Two copies of your bank statement (through which the payment inflow and outflow happens).
- Articles of Association (AOA): This is a document that contains information about the purpose of the company and it also has the details about the duties and responsibilities of the employees of the company.
- Memorandum of Association (MOA): This is a legal document that contains all the details and information about the company’s relationship with its shareholders in the market.
- Registrar of Companies (ROC)
- A document having a statement that declares the compliance.
When a person registers under GST, he gets the authority to claim the input tax credits. But some businesses have different verticals under which they function. Surprisingly, almost every business vertical is registered under GST and is in the knowledge of the government. So if a person owns a business that has separate verticals, then registration of each vertical is mandatory or else smooth business would become a problem. People, registering under GST, should initially make sure that every aspect of the new taxation system is adopted carefully.
Registering online gives you ease
For a business person who has five-seven meetings in a day ultimately has to look up for everything else as well. Such business person can seek for the help of sharp and authentic online platforms that can make the GST registration process much easier. Even the normal business owners can opt the choice to register online. The sophistication of the overall process of GST cannot create a sync with everyone’s lifestyle and way of dealing with legal matters. So better to take an advice then to blow up your business and end up in a sinkhole.
GST is a great strategy that makes the tax process simpler and transparent. By giving everything in the consumer’s hand, the government has already assured credibility of the process. Now, it’s time for people to accept it wide arms open.