Goods & Service Tax

Introduction to GST in India

GST is a cure for ills of existing Indirect Tax

The GST (Goods & Service Tax) is an indirect tax levied in India on the supply of goods and services. GST is levied at every step in the production process but is meant to be refunded to all parties in the various stages of production other than the final consumer.

Goods and Service tax means a tax on the supply of goods or services, or both, except taxes on the supply of alcoholic liquor for human consumption (Article 366 (12A) of the Constitution of India). GST is a destination-based consumption tax. GST offers a comprehensive and continuous chain of tax credits. In GST the burden is borne by the final consumer. GST eliminate cascading of tax. GST brings a uniform tax structure all over India.

The Quick Facts About GST in India

Goods and Services Tax (GST) is a comprehensive tax system that was implemented in India on July 1, 2017. It replaced several indirect taxes that were levied by the central and state governments.

Here are 8 quick facts about GST in India:

1. GST is a destination-based tax system: GST is a tax that is collected on the value-added to goods and services at each stage of the supply chain, from the manufacturer to the consumer. It is a destination-based tax, which means that the tax revenue is collected by the state where the final consumption of the goods or services takes place.
2. GST has multiple rates: GST has multiple rates, ranging from 0% to 28%. The rates vary depending on the type of goods or services being taxed. For example, essential goods such as food items and healthcare services are taxed at a lower rate, while luxury goods and services such as cars and fine dining are taxed at a higher rate.
3. GST has four different tax slabs: GST has four different tax slabs, namely 5%, 12%, 18%, and 28%. The 5% slab applies to essential goods, while the 28% slab applies to luxury goods. The 12% and 18% slabs apply to other goods and services.
4. GST registration is mandatory for businesses: Businesses with an annual turnover of more than Rs. 20 lakh (Rs. 10 lakh for North-Eastern states) are required to register for GST. Failure to do so can result in penalties and fines.
5. GST returns must be filed regularly: Businesses that are registered for GST must file regular returns. There are three types of returns that need to be filed - GSTR-1, GSTR-2, and GSTR-3. These returns must be filed monthly, and failure to do so can result in penalties and fines.
6. GST has simplified the tax system: GST has simplified the tax system by replacing several indirect taxes such as excise duty, service tax, and value-added tax (VAT). It has also reduced the compliance burden for businesses by introducing a single tax system.
7. GST has boosted the economy: GST has helped to boost the Indian economy by increasing tax compliance and reducing tax evasion. It has also facilitated the ease of doing business in India by simplifying the tax system and reducing the compliance burden for businesses.
8. GST has faced criticism: GST has faced criticism from some quarters for being a complex tax system that has increased the tax burden on small businesses. There have also been concerns about the implementation of GST, with some businesses experiencing difficulties in adapting to the new tax system.

GST is thus a destination-based tax system that has simplified the tax system in India. It has multiple tax rates and slabs, and businesses are required to register and file regular returns. While GST has helped to boost the economy, it has also faced criticism for being a complex tax system that has increased the tax burden on small businesses.

Advantages of GST

GST has several advantages for businesses and the economy as a whole. It simplifies the tax structure, promotes transparency, eliminates cascading effect of taxes, and improves tax compliance. GST also leads to cost savings, increased efficiency, and a level playing field for businesses.

Below are a few advantages of GST:

1. One Nation One Tax.
2. Removal of bundled indirect taxes such as VAT, CST, Service Tax, CAD, SAD, and Excise.
3. Removal of cascading effect of taxes i.e. removes the tax on tax.
4. Increased ease of doing business.
5. Lower cost of production and increase in demand will lead to an increase in supply. Hence, this will ultimately lead to rising in the production of goods. Resultant boost to make in India initiative.
6. It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth.

• Visit the GST portal: The first step is to visit the GST portal at https://www.gst.gov.in/ and click on the Services tab, and select the Registration option.
• Choose the type of registration: The next step is to select the type of registration you require. There are three types of registrations: Regular, Composition, and Casual Taxable Person.
• Fill in the details: After selecting the type of registration, you will be required to fill in the necessary details such as your name, address, email ID, and mobile number. You will also need to provide proof of identity and address, such as an Aadhaar, PAN, and Passport.
• Enter business details: In this step, you will need to provide the details of your business, such as the name of your business, the type of business, and the date of commencement of business.
• Provide bank account details: You will be required to provide your bank account details, including the account number, IFSC code, and branch details.
• Submit the application: After filling in all the necessary details, you can submit the application. Once the application is submitted, you will receive an Application Reference Number (ARN) on your registered mobile number and email ID.
• Verification: After applying, the GST department will verify the details provided in the application. If there are any discrepancies, you may be required to provide additional information.
• Approval: Once the verification process is complete, you will receive a GST registration certificate. This certificate will contain your GSTIN (GST Identification Number), which is a unique 15-digit number assigned to each taxpayer.

Thus, registering for GST online is a straightforward process that can be completed in a few easy steps. The GST portal provides a user-friendly interface that makes it easy for businesses to register for GST. By registering for GST, businesses can avoid penalties and fines and comply with the tax laws in India.

About the Dual GST Model

SGST, CGST and IGST

SGST	State GST
	Collected by the state Govt.
CGST	Central GST
	Collected by Central Govt.
IGST	Integrated GST
	Collected by the central Govt. or interstate supply of Goods and Services.

As per the CGST Act subject to changes by CBIC Notifications

Return Form	Particulars	Frequency	Due Date
GSTR-1	Details of outward supplies of taxable goods and/or services affected	Monthly	11th* of the next monthwith effect from October 2018 *Previously, the due date was 10th
GSTR-2 Suspended	Details of inward supplies of taxable goods and/or services affected claiming the input tax credit.	Monthly	15th of the next month
GSTR-3 Suspended	Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of tax.	Monthly	20th of the next month
GSTR-3B	Simple Return in which summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by taxpayer	Monthly	20th of the next month
GSTR-4	Return for a taxpayer registered under the compositionlevy	Quarterly	18th of the month succeeding quarter
GSTR-5	Return for a Non-Resident foreign taxable person	Monthly	20th of the next month
GSTR-6	Return for an Input Service Distributor	Monthly	13th of the next month
GSTR-7	Return for authorities deducting tax at source.	Monthly	10th of the next month
GSTR-8	Details of supplies effected through e-commerce operator and the amount of tax collected	Monthly	10th of the next month
GSTR-9	Annual Return for a Normal Taxpayer	Annually	31st December of next financial year*
GSTR-9A	Annual Return a taxpayer registered under the compositionlevy anytime during the year	Annually	31st December of next financial year*
GSTR-10	Final Return	Once, when GST Registration is canceled or surrendered	Within three months of the date of cancellation or date of cancellation order, whichever is later.
GSTR-11	Details of inward supplies to be furnished by a person having UIN and claiming a refund	Monthly	28th of the month following the month for which statement is filed

GST Registration for Proprietorship

For a proprietorship business in India, registering for Goods and Services Tax (GST) is mandatory if the annual turnover exceeds Rs. 20 lakh. GST registration for a proprietorship is a straightforward process that can be completed online. Proprietors need to provide their PAN (Permanent Account Number) and other details such as their name, address, and bank account information. After the registration process is complete, the proprietor will receive a GSTIN (Goods and Services Tax Identification Number) which is a unique 15-digit number assigned to each taxpayer. GST registration for proprietorship enables businesses to comply with tax laws, avoid penalties, and take advantage of the input tax credits.

Why choose Valcus for assistance related to GST?

Valcus is a trusted and reliable partner for businesses seeking assistance with their Goods and Services Tax (GST) needs. With a team of experienced professionals and a commitment to providing personalized service, Valcus is well-equipped to handle any GST-related challenge. We have a team to assist you with GST registration for import and export in Delhi NCR.

Whether it is filing GST returns, understanding complex GST regulations, or resolving disputes with tax authorities, Valcus has the expertise and experience needed to guide businesses through the process. Their approach is not just about meeting compliance requirements but also optimizing the benefits under GST.

Valcus understands the unique needs of each business and strives to provide tailored solutions that are both effective and efficient. By choosing Valcus for GST assistance, you can rest assured that your businesses are in safe hands. Contact us for GST registration solutions today!