WHAT IS GST

GST means Goods and Service Tax, is an indirect tax imposed on the supply of goods and services. It is implemented in India on 01stJuly 2017 by the Central Government of India. It is a multi- stage destination-oriented tax imposed on every value addition, replacing multiple indirect taxes, including VAT, exercise duty, service taxes etc. Goods and services are included under domestic indirect taxation law for the whole of India. In this regime tax is charged at each point of sale.

HISTORY OF GST (GOODS AND SERVICE TAX)

In the World, GST was first implemented as a tax regime in 1954 in France and subsequently adopted by the several countries including Canada, The United Kingdom, Spain, South Korea, Vietnam etc.
In India, the GST came into force in 2000 after a committee was set up by the prime minister Atal Bihari Bajpayee, a task force Headed by the finance ministry’s advisor Vijay L. kelkar he concluded that GST could help improve the tax structure in India
In 2006, the union ministry of finance proposed GST introduction from 1stapril 2010 but the constitution amendment bill to facilitate the introduction of GST law was introduced in 2011. However four supplementary GST bills were passed in Lok Sabha and approved by the cabinet, subsequently, GST came into force on 1st July 2017.

ADVATAGES OF GST

A) REMOVAL OF THE CASCADING EFFECT OF TAX
The implementation of GST has brought Indirect Taxes under one umbrella, successfully eliminating the cascading tax effect and lowering the numbers of compliances one must consider. For example previously Service tax and VAT had their respective returns and compliance, but with the introduction of GST, entities only have to file one return. This in turn simplifies the process of in putting tax credit claims.

B) SIMPLIFIED GST ONLINE PROCESS
All goods and services tax processes can be initiated online, including registration and GSTR filling. This has simplified the process significantly and made it possible for start-ups to get registered with GST services without hassle in one place

C) A UNIFORM TAX STRUCTURE
GST has brought the entire country under one Tax regime; it facilitates uniformity in processes Law and Tax rates across India.

D) REGULATION OF THE UNORGANIZED SECTOR
The GST bill effectively streamlines the processes related to online compliance, payments, and claims processes further it helps the unorganized sector bringing them directly under the regulation of goods and service tax norms.

BASIC LIMIT OF INCOME TAX RETURN

The basic exemption limit depends on the income tax regime you choose. Under the old income tax regime, the basic tax exemption limit stands at ₹ 2.5 lakh for taxpayers below 60 years of age. For people between 60 and 80 years of age, the basic exemption limit is fixed at ₹ 3 lakh. For people above 80 years of age, the exemption limit stands at ₹ 5 lakh.

TYPES OF GST

There are four different types of GST as listed below:
a) The State Goods and Services Tax (SGST)
SGST is defined as one of the two taxes imposed on transactions of goods and services of every state. Levied by State Government of every state, SGST replaces every kind of existing state tax that include Sales Tax, Entertainment Tax, VAT, Entry Tax, etc. Under SGST, the State Government can claim the earned revenue.
b) The Central Goods and Services Tax (CGST)
CGST is referred as the Central Tax levied on transactions of goods and services which take place within a state. Imposed by the Central Government, CGST ensures to replace all other Central taxes inclusive of State Tax, CST, SAD, etc. Prices of goods and services under CGST are charged in accordance with the basic market price.
c) The Integrated Goods and Services Tax (IGST)
IGST is applied on the interstate transactions of goods and services. IGST is also applicable on the goods being that are imported to distribute among the respective states. The IGST is levied when the movement of products and services occur from one state to another.
d) The Union Territory Goods and Services Tax (UTGST)
Applicable on the Intra UT supply of goods and services, the aim to impose UTGST is to apply a collection of tax to provide benefits as same as SGST. The UTGST is applicable to five Union Territories namely Lakshadweep, Damn and Diu, Dadra and Nagar Haveli, Andaman and Nicobar Islands, and Chandigarh.

GST REGISTRATION

GST registration is a process which a person liable to takes registration under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the central government after the taxpayers obtain registration.

WHO SHOULD REGISTER FOR GST

Any person supplying goods whose turnover exceeds Rs. 40 lakh in a Financial Year are required to register as a normal taxable person. However, the threshold limit is INR 10 lakh if you have a business in the north-eastern states.
The turnover limit is Rs. 20 lakh, and in the case of special category states, INR 10 lakh, for the service providers.

WHAT ARE THE DOCUMENTS REQUIRED FOR GST REGISTRATION

Take a look at the list of documents that you will need for registering your business under GST:

• Copy of PAN of the applicant
• Copy of the Aadhaar card of the applicant
• In case of company/partnership, proof of business registration or incorporation certificate
• Identity and address proof of promoters/directors with a photograph
• • Authorization letter/board resolution for authorized signatory

WHAT IS GST RETURN ?

GST return is a document that will contain all the details of your sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax). Once you file GST returns, you will need to pay the resulting tax liability (money that you owe the government).

WHO SHOULD FILE GST RETURNS ?

Under the GST regime, regular Businesses having more Than Rs.5 crore as annual aggregate turnover (and taxpayers who have not opted for the QRMP Scheme have to file two monthly returns and one annual return.

QRMP SCHEME

Taxpayers with a turnover of up to Rs.5 crore have the option to file returns under the QRMP scheme. The number of GSTR filings for QRMP filers is 9 each year, which include 4 GSTR-1 and GSTR-3B returns each and an annual return. Note that QRMP filers have to pay tax on a monthly basis even though they are filing returns quarterly. There are also separate statements/returns required to be filed in special cases such as composition dealers where the number of GSTR filings is 5 each year 4 statement-cum-challans in CMP-08 and 1 annual return GSTR-4.

GST REGISTRATION

GST registration is a process which a person liable to takes registration under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the central government after the taxpayers obtain registration.