GST Registration For New Start-up In INDIA

GST is an individual tax on the supply of goods and services, directly from the manufacturer to the consumer. Credits of input taxes spent at each stage will be available in the following stage of value addition, which makes GST fundamentally a tax only on value addition at every stage. The last consumer will hence bear only the GST rated by the last dealer in the supply chain, with set-off benefits at all the previous stages.

At the Central level, the taxes are being subsumed are as follows: a. Central Excise Duty, b. Additional Excise Duty, c. Service Tax, d. Additional Customs Duty commonly known as Countervailing Duty, and e. Special Additional Duty of Customs. At the State level, the following taxes are being subsumed: a. Subsuming of State Value Added Tax/Sales Tax, b. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), c. Octroi and Entry tax, d. Purchase Tax, e. Luxury tax, and f. Taxes on lottery, betting and gambling.

Alcohol for human consumption, high-speed diesel, Petroleum Products viz. petroleum crude, natural gas and aviation turbine fuel & Electricity.

Tobacco and tobacco products would be directed to GST. In addition, the Centre would have the ability to levy Central Excise tax on certain products.

India is a federal country where both the Centre and the States have been allowed the powers to levy and obtain taxes through suitable legislation. Both the levels of Government have distinct duties to perform according to the division of powers designated in the Constitution for which they require to raise resources. A dual GST will, hence, be in keeping with the Constitutional provision of fiscal federalism.

The Centre will levy and manage CGST & IGST while particular states will levy and manage SGST.

Under the GST administration, an Integrated GST (IGST) would be levied and managed by the Centre on inter-State supply of goods and services. Below Article 269A of the Constitution, the GST on supplies in the plan of interstate trade or commerce shall be levied and obtained by the Government of India and such tax shall be distributed between the Union and the States in the way as may be given by Parliament by law on the advice of the Goods and Services Tax Council.

The CGST and SGST would be levied at rates to be mutually determined by the Centre and States. The rates would be informed of the support of the GST Council.

Imports of Goods and Services will be interpreted as inter-state supplies and IGST will be levied on import of goods and services into the country. The rate of tax will accompany the destination principle and the tax return in the case of SGST will increase to the State where the imported goods and services are employed. Comprehensive and full set-off 14 15 will be available on the GST spent on import on goods and services.

Optional.

GSTN stands for Goods and Service Tax Network (GSTN). A Special Purpose Vehicle known as the GSTN has been established to cater to the requirements of GST. The GSTN shall perform shared IT support and services to Central 14 15 and State Governments, taxpayers, and other stakeholders for the implementation of GST. The purposes of the GSTN would, inter alia, incorporate:

(i) Facilitating registration;

(ii) Assisting the returns to Central and State authorities;

(iii) Calculation and settlement of IGST;

(iv) Matching of tax payment features with banking network;

(v) Presenting various MIS reports to the Central and the State Governments based on the taxpayer return knowledge;

(vi) Presenting analysis of taxpayers’ profile; and

(vii) Managing the comparable engine for coordinating, withdrawal and reclaim of an input tax credit.

The GSTN is acquiring a common GST portal and administrations for registration, payment, return, and MIS/ reports. The GSTN would also be combining the common GST portal with the current tax administration IT systems and would be developing interfaces for taxpayers. Further, the GSTN is developing back-end modules like assessment, review, refund, appeal, etc. for 19 States and UTs (Model II States). The CBEC and Model I States (15 States) are themselves growing their GST back-end methods. The mixture of the GST front-end system with back-end systems will have to be developed and tested well in advance for doing the transition smooth.

The Supply of goods and/or services is a taxable transaction. CGST & SGST will be levied on intra-state supplies while IGST will be levied on inter-state stores. The charging division is section 7 (1) of the CGST/SGST Act and Section 4(1) of the IGST Act.

No, reverse charge refers to supplies of both goods and services.

The recipient of goods will not be able to receive ITC. Further, the recipients who are registered below composition schemes would be subject to pay tax below the reverse charge.

No, the composition system is applicable subject to the state that the taxable person does not affect interstate supplies.

No, a taxable person below the composition system is not eligible to require an input tax credit.

One must consider the definition of goods, service, supply, taxable supply, and charging section for levy of GST to conclude applicability of GST.

To activate canceled GST registration, submit your application in FORM GST REG-21 to GST Officer within 30 days from the date of service of the cancellation order.

Step 1 – Login to GST Portal. Step 2 – Go to ‘Services’ > ‘User Services’ > ‘View/ Download Certificate. Step 3 – Click on the ‘Download’ icon.