Considered to be the largest tax reform in the country, the Goods and Services Tax (GST) submits many indirect taxes that were levied by the Centre and the state such as excise, VAT and service tax. It is levied on both goods and services sold in the country. Under the GST regime, businesses with a turnover of Rs. 40 lakh * (Rs. 10 lakh for Eastern and Hill States) is required to be registered as a normal taxable person. This process of registration is called GST registration. For some businesses, registration under GST is mandatory. If an organization conducts business without registration under GST, it will become an offense under GST and heavy fines will be imposed. GST registration in chennai usually takes between 2-6 working days. We will help you to register for GST in 3 easy steps. CBIC has set a threshold turnover of Rs. Increased from 20 lakhs to 40 lakhs. The instruction will come into effect from 1st April 2019.
Types of GST in India
Types of GST exist and its importance Overview:
i. CGST
CGST (Central Goods and Services Tax) is a tax levied by the Central Government on the transaction of goods and services within the State. This tax is universal and replaces all other taxes levied by the Centre such as CST, SAD and so on.
ii. SGST
The state government of each state levies SGST or State Goods and Services Tax. This tax replaces the entertainment tax, entry tax, VAT and all other taxes levied by other states like this. State SGST Is the sole owner of the revenue collected from the implementation of. To know more on gst registration in bangalore, click here.
iii. IGST
This refers to the application of tax on the transaction of goods and services between the two states. Known as the Integrated Goods and Services Tax, IGST applies when services or materials are transferred from one state to another.
iv. UTGST
This special tax is only for the five Union Territories of India. It has the same purpose and benefits as SGST; the only difference is that it only applies to Chandigarh, Daman and Diu, Andaman and Nicobar Islands, Lakshadweep and Dadra and Nagar Haveli.
GST registration procedures
There are mainly two types of GST registration procedures that are followed across the country: regular plan and formation plan.
A regular type of GST registration in coimbatore is one where the legitimate taxpayer is bound to levy a certain amount of tax on the buyer of goods and services, then the amount paid as GST on the input value will reach the government after the goods and services are finished.
Under regular registration of GST, payment of tax is instantaneous, which means that the customer has to pay GST when purchasing products (s) and collect it from the customer at the time of sale.
It is also important to note that everyone coming under the regular scheme is forced to file a GST return every month and pay the tax collected every month. There is also an added benefit of this plan which allows the plan holder to sell products beyond the borders of his state, and customers from other states can buy his products without any restrictions. To know more about ie code registration in chennai, click here.
Now, under the composition scheme, there are some things that should be considered before applying. It is only for those businesses whose annual income is Rs. 1.5 crore (Rs. 75 lakhs in case of Himachal Pradesh and North Eastern States). While this scheme is especially beneficial for small and medium enterprises (SMEs), there are many factors that qualify it for its features that set it apart from the regular scheme of GST registration:
- The joint plan is beneficial for local relocation of goods and services within a particular state. Suppliers that operate within the state are the ones that will be in an advantageous position. However, dealers whose work involves inter-state transactions need to choose a regular plan.
- If the taxpayer wants to apply for this special plan, he needs to do so voluntarily. But after registration, if his annual income is Rs. 1.5 crore or Rs. If it goes beyond the threshold of Rs 75 lakh, it will be automatically transferred to the regular scheme as it will no longer be suitable for this composition.
- Under the composition scheme, GST only needs to be paid for taxable goods. Prior to 1st January 2018, it was also mandatory to pay joint GST for excluded goods. To know more on patent registration in chennai, click here.
- Officers have the right to penalize anyone who intentionally shows false data to register under the scheme. No wrong game is tolerated here as the plan is to uplift the status of small businesses.
- Here, taxpayers are not required to raise any invoices. Instead, they just need to show their supply bill to the authorities.
Importance of GST registration
When GST filing is done through GST registration consultants in chennai -it has are several importances,
- It is a type of legal proof that recognizes an individual as a certified provider of goods and services.
- It will automatically qualify the person for all other benefits and advantages that come under the law of GST.
- The individual acquires a legal right to levy taxes from his customers and to pay taxes to his customers or suppliers.
- It is a uniform tax levied on goods and services across the country, making it more convenient to understand the whole indirect tax structure.
GST filing in Chennai
Anyone who applies for GST registration will also have to file a GST return filing in chennai . A GST return filing is basically a document that is required to be filed according to Indian law officials. It will be used by the tax authorities for the purpose of calculating tax liability. Online GST filing is now possible.
Recent updates on GST Registration
Amendment to Section 16 to allow taxpayers’ input tax credit claims based on GSTR-2A and 2B. From now on, ITC on invoices and debit notes can be received only when the details of such invoice or debit note have been submitted by the supplier in the external supply statement, and such details are communicated to the recipient of such invoice or debit note. Section 50 of the CGST Act is amending the provision of pre-charge of interest on net cash liability from 1st July, 2017. In respect of orders received regarding detention and seizure of goods and vehicles, a penalty of 25% is required to apply for appeal under Section 107 of the CGST Act. Notice of application date is still pending. To know more about trademark registration in chennai, click here.
Comments
Post a Comment