GST has completely transformed the process of indirect taxation in India. Introduction of GST is considered as a start of golden period for MSME registrations & small businesses in India. GST has brought with it the urgent plight of small business in making the indirect tax filing convenient. The idea behind bringing in Goods & service tax (GST) is to replace decade old multi-stage indirect tax.
What all businesses are covered under GST?
In order to understand the compliance requirements for small businesses under GST act, 2017 it is important that one must identify whether GST registration is required or not. Following are the list of individuals who are required to register under GST.
- Business turnover exceeding INR 20 lacs & INR 10 lacs (special category states).
- Prior to GST those who were registered under Excise, VAT, Service tax etc.
- Those paying tax under Reverse Charge Mechanism.
- Supplier agent or Input service provider.
- E-commerce supplier.
What is the process of GST registration in India?
The process for GST registration is completely electronic. This means that there is minimal interaction between the tax payer and the tax authority.
The complete GST registration process is divided in two parts viz. Part (A) & Part (B)
- Go to GST Registration home page [https://www.gst.gov.in/]
- Find “Register now” icon on the bottom left menu & select appropriate option
- Click on “New registration” >>> Type of taxpayer >>> Business establishment state >>> PAN Card details & Name of your business
- Verification of Email ID & Contact no. >>> Click on “proceed”
- Temporary registration no. (TRN) is generated
- Fill in the TRN & captcha details
- Verify it through an OTP >>> Click on “Proceed”
- Click on the each tab separately to fill in the following details:
- Details of business
- Details of promoters & partners
- Authorized signatory
- Principal place of business
- Bank account details
- State specific information
- Verify all the details
Since GST registration requires expertise and the complete knowledge of indirect tax framework in India, therefore it is advisable to hire a GST registration consultant for all your business queries.
What are some of the most crucial benefits of GST registration for small businesses?
- Reduced tax barriers
- Simplified tax policy structure
- Facility of Input tax credit (ITC)
- Meet global standards of filing tax.
- Convenience & ease of doing business.
- Composition scheme for small businesses.
- Complete digital mode of making tax payments.
- Minimal face to face interactions with tax officials.
- Removed bundle of indirect taxes such as VAT, Excise duty, service tax
FREQUENTLY ASKED QUESTIONS (FAQ’s)
Q.) Which taxes are subsumed under GST?
Goods & services tax (GST) has subsumed almost every indirect tax under its definition. Some of the most prominent taxes such as Value-added tax (VAT), service tax, Octroi tax, Entertainment tax, Sales tax & luxury tax etc. To get rid of the anomaly between central & state level taxes, GST has brought in a new tax structure under three (3) heads viz. CGST, SGST & IGST.
Q.) How to get GST registration for new business?
Application of GST registration for small businesses in India is very convenient. Follow the below mentioned steps for GST registration in India.
- Go to https://www.gst.gov.in/
- Click on “Register Now” under Taxpayer section.
- Verify your Mobile no. & email ID with an OTP.
- Application Reference No. (ARN): Store your ARN for the future reference.
- Form GST REG-03 : It is an automatically generated form.
- Verified Registration certificate will be issue within 3 working days after due background check and document verification.
Q.) What is the due date of filing GST returns?
|GSTR Form No.||GST Return form description||Due date (Proceeding month)|
|1||Outward supplies return||11|
|2A||Inward supplies return||15|
|3B||Declare GST liabilities||20|
|5||Non-resident taxpayers wish to opt out of ITC on local procurements.||20|
|5A||Online Information and Database Access or Retrieval (OIDAR) services provider||20|
|6||Input service providers (ISD) regarding ITC.||13|
|6A||Inward supplies or Purchases & Expenses||13|
|7||TDS towards inward supplies.||10|
|7A||System generated TDS certificate||10|
|8||Statement of TCS by E-Commerce operators.||10|
Some other GST registration requirements which need to be fulfilled are:
|9||Annual return for every normal taxpayer.||31st December of next financial year.|
|9A||Annual return mandatorily for Composition scheme taxpayer.||31st December of next financial year.|
|10||Stock held by taxpayers whose GST registration is cancelled or surrendered.||Within three months of the date of cancellation.|
|11||Inward supplies of goods & services are stated.||28th of the month following the month for which statement is filed.|
Read More: Annual Return under GST (Form GSTR-9)
Read More: Composition scheme under GST