Guide to GST Registration
The Goods and Services Tax (GST) is comprised of three tax components:
1. Central Goods and Services Tax (CGST): This is levied by the central government.
2. State Goods and Services Tax (SGST): This is a state component, where both the center and the state levy GST on all transactions within the state.
3. Integrated Goods and Services Tax (IGST): The IGST is levied by the center when a transaction takes place between two states.
Any individual or business entity that fulfills the following criteria needs to register for GST:
1. Engages in taxable supplies of goods or services.
2. Has an annual turnover exceeding the prescribed threshold limit (currently ₹20 lakhs for most businesses).
3. E-commerce operators facilitating the supply of goods and services through their platform.
4. Non-resident taxable persons who occasionally supply goods or services in India.
5. Businesses involved in inter-state supply of goods or services.
6. Input service distributors distributing input tax credit to their branches or units.
7. Casual taxable persons occasionally supplying goods or services in India.
8. Businesses previously registered under the old tax regime (VAT, Service Tax, etc.) and have migrated to GST.
A GST Certificate is an official document issued by the Indian government to businesses registered under the Goods and Services Tax (GST) system. It serves as proof of the business’s registration under GST and contains essential details, such as the business’s GST identification number, name, and address. This certificate is crucial for businesses as it allows them to charge and collect GST from their customers. Moreover, it enables them to avail input tax credits, apply for loans, and participate in tenders.
GSTIN is a unique identification number assigned to each taxpayer registered under the Goods and Services Tax system. To verify a GSTIN number, individuals or businesses with a GST number can log onto the GST portal.
The Goods and Service Tax Network (GSTN) is a non-profit, non-governmental private limited company. It serves as a one-stop solution for all indirect tax requirements, facilitating preparation, filing, rectification of returns, and payment of indirect tax liabilities.
GST return filing is mandatory for all registered taxpayers under the GST system, regardless of whether they have made any sales or purchases during the period for which the return is being filed. The process involves submitting details of sales, purchases, and taxes collected and paid by the taxpayer to the government. For filing a GST Return, GST compliant sales and purchase invoices must be attached.
GST Tax Rates
The GST tax rates in India are classified into different slabs:
Additionally, some goods and services may have specific rates. For instance, gold is taxed at 3%, while crude oil and natural gas are taxed at 6%. Keep in mind that GST rates are subject to change and may vary depending on the type of goods or services.