Goods and Service Tax or in other words GST is the biggest indirect tax reform of India. GST will subsume Central Excise Law, Service Tax Law, State VATs, Entry Tax, Luxury Taxes, and Octroi etc. Earlier, there were so many taxes which were levied on goods such as Excise, VAR, entry tax, octroi. Similarly, service tax, entertainment tax, luxury tax were levied on services. Now, there will be only single tax i.e. GST and it will make dream of One Nation, One Tax feasible. To know more about GST visit online GST Registration in Delhi NCR portal.
GST is a consumption based tax which is levied on the basis of “Destination principle.” It is a comprehensive tax regime covering both goods and services, and is collected on value-added at each stage of the supply chain, for online GST in Delhi NCR consult online GST registration in Delhi NCR portal. Further, GST paid on the procurement of goods and services can be set off against that payable on the supply of goods or services. Simply put, Goods and Services Tax (GST) is a tax levied on goods and services imposed at each point of supply. GST is a national level tax based on value added principle just like State level VAT which was levied as tax on sale of inter-state goods, for online GST application in Delhi NCR visit GST registration in Delhi NCR experts. The essence of GST is in removing the cascading effects i.e., tax on tax of both Central and State taxes by allowing setting-off of taxes throughout the value chain, right from the original producer and service provider’s point up to the consumer level. GST is a major improvement over existing system of VAT and disjointed Service Tax ushering a collective gain for industry, trade and common consumers as well as for the Central Government and the State Governments at large. GST, as a well-designed value added tax on all goods and services, is the most elegant method to eliminate distortions and to tax consumption. Read more on Online Goods and Service Tax registration in Delhi NCR through GST registration in Delhi NCR portal.
Know the difference between Direct Tax and Indirect Tax by GST Registration in Delhi NCR
Few Main Differences are as:
|Direct Tax||Indirect Tax|
|These are mainly on income, wealth, and profession etc. of persons.||These are consumption based taxes on goods and services|
|Tax payer pays taxes directly to government||Tax payer pays taxes indirectly through intermediaries like importers , suppliers etc.|
|Direct taxes become payable after the benefit/ income reaches the tax payer.||Indirect taxes are payable even before the goods/ services reach the tax payer.|
|Income tax, corporation tax are main sources of direct tax.||Customs and GST are major indirect taxes in India|
|Direct Tax such as income tax are levied or dependent on various aspects of a person income as per the slabs suggested by the Income Tax Act: source information provided by GST registration in Delhi NCR experts.||Whereas, unlike Direct Tax, Indirect Tax such as GST depends upon the supply of goods and services suggested by the GST Act|
|Tax Evasion is possible with enumerated loop holes||Tax Evasion is nearly impossible as the price itself is inclusive of Tax.|
|The burden of such tax cannot be shifted||The burden of such tax can be shifted|
|Direct Tax helps in reducing inflation||On the other hand Indirect Tax promotes inflation.|
|It is Progressive in Nature||It is Regressive in Nature|
|Direct tax is imposed on and collected from the assessee.||Unlike indirect tax is imposed on and collected from consumer but deposited to the exchequer by the dealer of goods or provider of services.|
|Direct tax is collected when the income for the financial year is earned or the assets are valued at the date of valuation.||As against this, the indirect taxes are collected, when the purchase or sale of goods or services are rendered.|
|Incidence and impact falls on the same person||Incidence and Impact falls on different person.|
Different Types of GST explained by GST registration in Delhi NCR
CGST: Central GST tax that is levied by the Central Government of India on any transaction of goods and services tax taking place within a state. CGST replaces all the existing Central taxes including Service Tax, Central Excise Duty, CST, Customs Duty, SAD, etc. The rate of CGST is usually equal to the SGST rate. Both taxes are charged on the base price of the product. For GST registration online in Delhi NCR consult to GST registration in Delhi NCR experts.
SGST: State GST is one of taxes levied on every intrastate (within one state) transaction. SGST is levied by the state where the goods are being sold/ purchased. It will replace all the existing state taxes including VAT, State Sales Tax, Entertainment Tax, Luxury Tax, Entry Tax, State Cesses and Surcharges on any kind of transaction involving goods and services. The State Government is the sole claimer of the revenue earned under SGST. For more info on SGST, online GST Delhi NCR visit GST registration in Delhi NCR portal.
IGST: Integrated GST is applicable on interstate (between two states) transactions of goods and services, as well as on imports. This tax will be collected by the Central government and will further be distributed among the respective states. IGST is charged when a product or service is moved from one state to another. IGST is in place to ensure that a state has to deal only with the Union government and not with every state separately to settle the interstate tax amounts. For online GST application in Delhi NCR visit gst registration in delhi NCR.
UTGST: The Union Territory Goods and Services Tax, referred to as UTGST, is the GST applicable on the goods and services supply that takes place in any of the five Union Territories of India, including Andaman and Nicobar Islands, Dadra and Nagar Haveli, Chandigarh, Lakshadweep and Daman and Diu. This UTGST will be charged in addition to the Central GST (CGST) explained above. For any transaction of goods/services within a Union Territory: CGST + UTGST. Get your online Goods and Service tax registration Delhi NCR through online GST registration in Delhi NCR portal.
Various GST Rates: (updated table)
|5%||Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal, Mishti/Mithai (Indian Sweets) and Life-saving drugs are also covered under this GST slab.|
|12%||This includes computers and processed food|
|18%||Hair oil, toothpaste and soaps, capital goods and industrial
intermediaries are covered in this slab.
|28%||Luxury items such as small cars, consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks, High-end motorcycles are included here.|
Though edible items like sugar, tea and coffee are included in the 5% slab, milk does not attract any tax under the new GST regime. The idea behind this is to ensure that basic food items are available for everyone but instant food is kept out of this category. Source information in given by GST registration in Delhi NCR experts.
- Basic household items like toothpaste and hair oil, which currently attract 28% tax, will be taxed at 18% only.
- Sweets will also be taxable at 5%.
- Tax rates on coal has also been reduced from 11.69% to just 5% in order to relieve the pressure on power industries.
- GST also gives a major push to domestic industries as they will be able to procure seamless input credit for capital goods. Make in India campaign is set to flourish after this reform. Know about GST registration online in Delhi NCR via GST registration in Delhi NCR portal.
Apart from other items that enjoy zero GST tax rate, these are the commodities added to the list after 11th June rate revision – Source given by online GST registration in Delhi NCR
- Hulled cereal grains like barley, wheat, oat, rye, etc.
- Bones and horn-cores unworked and waste of these products.
- Palmyra jaggery
- All types of salt
- Dicalcium Phosphate (DCP) of animal feed grade conforming to IS specification No. 5470 :2002
- Kajal [other than kajal pencil sticks]
- Picture books, colouring books or drawing books for children
- Human hair – dressed, thinned, bleached or otherwise worked
- Sanitary Napkins
- Unit container-packed frozen branded vegetables (uncooked/steamed)
- Vegetables preserved using various techniques including brine and other preservatives that are unsuitable for immediate human consumption.
- Music Books/manuscript. Any query related to various tax rates consult to GST registration in Delhi NCR portal.
GST Registration in India By GST registration in Delhi NCR
All entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration in Delhi NCR would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised. As per the GST Council, entities in special category states with an annual turnover of Rs.10 lakhs and above ,all other entities would be required to register for GST if annual turnover exceeds Rs.20 lakhs. There are also various other criteria’s, that could make an entity liable for obtaining GST registration in Delhi NCR – irrespective of annual sales turnover. Entities required to register for GST as per regulations must file for GST application within 30 days from the date on which the entity became liable for registration under GST. Online services of online GST application in Delhi NCR, online GST in delhi NCR and online Goods and Service tax registration in Delhi NCR consult or visit GST Registration in Delhi NCR portal.
Persons Required for GST Registration in Delhi NCR
- Persons making inter-state supply, irrespective of any threshold limit
- Casual taxable persons, irrespective of the threshold specified
- Persons who are required to pay tax under reverse charge
- Non resident taxable persons
- Persons who are required to deduct tax under section 37 (TDS)
- Input service distributor
- Supply of goods or services through electronic commerce operator, other than branded services
- Every electronic commerce operator
- Aggregator who supplies service under his brand name or his trade name
- Other notified persons
- Suppliers liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 9 lacs.
- Supplier liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 4 lacs.
Time limit for registration: thirty days from the date he is liable to registration.
Process of GST Registration In Delhi NCR
Step 1 – Go to GST portal. Click on Register Now under Taxpayers (Normal)
Step 2 – Enter the following details in Part A –
- Select New Registration
- In the drop-down under I am a – select Taxpayer
- Select State and District from the drop down
- Enter the Name of Business and PAN of the business
- Key in the Email Address and Mobile Number. The registered email id and mobile number will receive the OTPs.
- Click on Proceed
Step 3 – Enter the OTP received on the email and mobile. Click on Continue. If you have not received the OTP click on Resend OTP.
Step 4 – You will receive the Temporary Reference Number (TRN) now. This will also be sent to your email and mobile. Note down the TRN.
Step 5 – Once again go to GST portal. Click on Register Now.
Step 6 – Select Temporary Reference Number (TRN). Enter the TRN and the captcha code and click on Proceed.
Step 7 – You will receive an OTP on the registered mobile and email. Enter the OTP and click on Proceed
Step 8 -You will see that the status of the application is shown as drafts. Click on Edit Icon.
Step 9 – Part B has 10 sections. Fill in all the details and submit appropriate documents.
Step 10 – Once all the details are filled in go to the Verification page. Tick on the declaration and submit the application using any of the following ways –
- Companies must submit application using DSC
- Using e-Sign – OTP will be sent to Aadhar registered number
- Using EVC – OTP will be sent to the registered mobile
Step 11 – A success message is displayed and Application Reference Number(ARN) is sent to registered email and mobile.
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Major Reasons for Online GST Registration in Delhi NCR
- Simple Procedure with nil complexity.
- Improvement in Logistical efficiency
- Removal of cascading effect.
- Composition Scheme for small scale enterprises/ industries
- Increased threshold limits for registration. Special provision for North Eastern states.
- Input tax credit available on supply of/by registered person
- Regulating unorganized sector.
Documents Required for GST Registration In Delhi NCR
- PAN Card of the Business/Applicant : While Registering it’s important to Firstly is to get the PAN (Permanent Account Number) of the business and of the authorized signatories/applicant (Directors / Partners / Proprietor)
- Contact details , Email: A valid mobile number and an email address of the Primary Authorized Signatory is required to be filled at the time of registration.
- Proof of Place of business: Principal Place of Business is the primary location within the State where a taxpayer’s business is performed or where the business’s books of accounts and records are kept. Get GST registration online in Delhi NCR through GST registration in Delhi NCR
- As a supporting documents for registration, keep following documents handy :
- Any supporting document giving title to the ownership of the premises such as Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- Copy of the valid Rent / Lease Agreement/Consent letter (as applicable) and
- For every additional place of business in the state, proof of such additional place of business.
- Valid bank account number from India: You need to mention details of the bank accounts maintained for conducting business. You can enter details of up to 10 Bank Accounts. You will also need to fill the Indian Financial System Code (IFSC) number of the same bank and branch. For online GST in delhi NCR through online GST registration in Delhi NCR portal.
- Other required documents for online GST application registration in delhi NCR:
- List of Goods and Services
- Proof of appointment of Authorized Signatory (Letter of Authorization or copy of board resolution)
- Authorized Signatories photo (soft copy)
- It is important to have digital signature (class 2 digital signature) in case of Companies and LLP’s, of the person who is authorized to sign the application
- Incorporation certificate (for Company)
- Other regulatory registration details such as Professional Tax, State Excise License details (If applicable). For any query regarding documents required consult to online GST Delhi NCR portal.
Benefits of GST Registration In Delhi NCR
- Uniform procedures for registration, filing of returns, payment of taxes, and tax refunds.
- Elimination of cascading of taxes thanks to the seamless flow of tax credit from the supplier or manufacturer to the retailer or user.
- Small scale suppliers can make the most of the composition scheme to make their goods less expensive.
- Higher efficiency with regards to the neutralisation of taxes so that exports are globally competitive.
- Composition Scheme: Under the composition scheme, the taxpayer is required to furnish quarterly return only, and thus he need not worry on record keeping and can focus on his business more rather than being occupied in compliance procedures. Another benefit of getting registered under the composition scheme is that the tax rate for such taxpayer is nominal under the GST Law.
Various Advantages of getting GST Registration Certificate in India explained by GST Registration in Delhi NCR
- Legally recognized as supplier of goods or services.
- reduces the number of Indirect Taxes into one single tax
- Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
- Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
- GST will not be a cost to registered retailers therefore there will be no hidden taxes and the cost of doing business will be lower.
- GST will be levied only at the final destination of consumption based on VAT principle and not at various points (from manufacturing to retail outlets). This will help in removing economic distortions and bring about development of a common national market.
- GST is backed by the GSTN, which is a fully integrated tax platform to deal with all aspects of GST.
- When all the taxes are integrated, it would make possible the taxation burden to be split equitably between manufacturing and services.
- The ease of starting a new business in India.
- Thousands of startups and small businesses currently having an annual sales turnover of Rs.5 lakh – Rs.10 lakh would be out of the tax net providing relief to them from collection and filing of GST returns.
- GST improves investments and exports.
FAQ’s about GST Registration In India by GST Registration In Delhi NCR
What are the benefits of GST? Explained by GST registration in Delhi NCR
For business and industry
Easy compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online, which would make compliance easy and transparent.
Uniformity of tax rates and structures: GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. In other words, GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business.
Removal of cascading: A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.
Improved competitiveness: Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry.
Gain to manufacturers and exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost. For more queries on GST visit to online GST registration in Delhi NCR.
For Central and State Governments
Simple and easy to administer: Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST registration in Delhi NCR would be simpler and easier to administer than all other indirect taxes of the Centre and State levied so far.
Better controls on leakage: GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of GST that would incentivize tax compliance by traders.
Higher revenue efficiency: GST is expected to decrease the cost of collection of tax revenues of the Government, and will therefore, lead to higher revenue efficiency. Read more frequently asked question on GST registration in Delhi NCR portal.
For the consumer
Single and transparent tax proportionate to the value of goods and services: Due to multiple indirect taxes being levied by the Centre and State, with incomplete or no input tax credits available at progressive stages of value addition, the cost of most goods and services in the country today are laden with many hidden taxes. Under GST, there would be only one tax from the manufacturer to the consumer, leading to transparency of taxes paid to the final consumer.
Relief in overall tax burden: Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers.
What is the procedure of filling returns?
How would a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?
The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of Central Excise. Get legal answer to your gst related FAQs on online GST registration in Delhi NCR portal.
How will be Inter-State Transactions of Goods and Services be taxed under GST in terms of IGST method?
In case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution. The IGST would roughly be equal to CGST plus SGST. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one State to another. The inter-State seller would pay IGST on the sale of his goods to the Central Government after adjusting credit of IGST, CGST and SGST on his purchases (in that order). The exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The importing dealer will claim credit of IGST while discharging his output tax liability (both CGST and SGST) in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. Since GST is a destination-based tax, all SGST on the final product will ordinarily accrue to the consuming State.
What are the major features of the proposed registration procedures under GST?
Existing dealers: Existing VAT/Central excise/Service Tax payers will not have to apply afresh for registration under GST.
New dealers: Single application to be filed online for registration under GST.
The registration number will be PAN based and will serve the purpose for Centre and State.
- Unified application to both tax authorities.
- Each dealer to be given unique ID GSTIN.
- Deemed approval within three days.
In which circumstances registration can be cancelled?
Registration can be cancelled in following cases:
- does not conduct any business from the declared place of business or
- issues invoice or bill without supply of goods or services in the violation of provisions of the act, or the rules made thereunder or
- violates the provisions of section 171 of the Act or the rules made thereunder.
What are the major features of the Constitution (122nd Amendment) Bill, 2014?
- Conferring simultaneous power upon Parliament and the State Legislatures to make laws governing goods and services tax;
- Subsuming of various Central indirect taxes and levies such as Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty commonly known as Countervailing Duty, and Special Additional Duty of Customs;
- Subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, and Taxes on lottery, betting and gambling;
- Dispensing with the concept of ‘declared goods of special importance’ under the Constitution;
- Levy of Integrated Goods and Services Tax on inter-State transactions of goods and services;
- GST to be levied on all goods and services, except alcoholic liquor for human consumption. Petroleum and petroleum products shall be subject to the levy of GST on a later date notified on the recommendation of the Goods and Services Tax Council;
- Compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period of five years;
- Creation of Goods and Services Tax Council to examine issues relating to goods and services tax and make recommendations to the Union and the States on parameters like rates, taxes, cesses and surcharges to be subsumed, exemption list and threshold limits, Model GST laws, etc. The Council shall function under the Chairmanship of the Union Finance Minister and will have all the State Governments as Members. For online GST application in Delhi NCR consult to GST registration in Delhi NCR experts.
How will imports be taxed under GST?
The Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently being levied on imports will be subsumed under GST. As per explanation to clause (1) of article 269A of the Constitution, IGST will be levied on all imports into the territory of India. Unlike in the present regime, the States where imported goods are consumed will now gain their share from this IGST paid on imported goods.
Will cross utilization of credits between goods and services be allowed under GST regime?
Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST. However, the cross utilization of CGST and SGST would not be allowed except in the case of inter-State supply of goods and services under the IGST model which is explained in answer to the next question.
How would GST be administered in India?
Keeping in mind the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted. Know how GST administered in India on GST registration in Delhi NCR portal.