What is The Input Tax Credit?

An input tax credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. Let's say - you are a manufacturer and the tax you pay on the final product is Rs. 600 and on input, the tax is Rs. 400, in that case, you can claim input credit of Rs. 400 and you only need to deposit Rs. 200 in taxes.

Who Should Register for GST?

Following are the entities that should register for GST, apart from businesses whose turnover exceeds Rs. 40 Lakhs.

• Any individual who has registered under the Pre-GST law of Exercise, VAT or Service Tax.
• Any business that is paying taxes under the reverse charge mechanism. 
• Any person selling digital information to anyone who is not paying taxes.
• Any person selling online courses.
• Individuals who are supplying inputs through e-commerce aggregators.
• Every business or corporation that is involved in buying and selling should have GST registration.

What Are The GST Tax Rates?

• Items that are considered basic necessities come under the exempt list i.e. they are not taxed.
• Household necessities and life-saving drugs etc. are taxed at 5%.
• Products like computers and processed food are taxed at 12%.
• Hair oil, toothpaste, and soaps, capital goods, industrial intermediaries, and services are taxed at 18%.
• Luxury items are taxed at 28%.

For more information about GST tax rates visit: https://cbec-gst.gov.in/gst-goods-services-rates.html

What is A GST Return?

A GST return is a document that has all details of income that must be filled according to the law with the tax authorities. Under the GST law, a taxpayer has to submit two returns online on a monthly basis and one such return annually. A registered dealer would file GST returns including purchases, sales, output GST (on sales), and input tax credit (GST paid on purchases).

What is GSTIN?

GSTIN is a unique identification number assigned to each GST taxpayer. To verify a GSTIN number a person who has a GST number can log onto the GST portal.

How to Apply for GST Registration Process in India

Here is the step-by-step on how to register for GST:

Step 1: Visit the GST portal online at (https://www.gst.gov.in/).

Step 2: Head over to Services->Registration-> and Click on New Registration.

After filling in details click on 'Proceed'.

Step 3: Now enter the OTP that was sent to the email ID and mobile number in the respective boxes.

Step 4: You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN.

Step 5: Revisit Head over to Services->Registration-> and choose ‘Temporary Reference Number (TRN)’. Enter the TRN and the captcha details and Click on ‘Proceed’.

Step 6: You will receive an OTP on your registered mobile number and email id. Enter the OTP and click on ‘Proceed’.

Step 7: Your GST registration status can be seen on Services->Track Application Status.

Step 8: The Application Reference Number (ARN) will be sent to you on your registered mobile number and email ID.

GST Registration Process for New Business

• Step 1: Visit the GST portal online at (www.gst.gov.in)
• Step 2: Start filling in part – A of the registration form 1
• Step 3: You will now receive an application reference number on your mobile and via email
• Step 4: Fill in the second part of the registration form and upload the required documents according to the business type
• Step 5: Obtain a registration certificate from the GST portal.
• Step 7: Submit the required documents within 7 working days along with GST REG-04
• Step 8: Go through the email and look for errors. In case of any errors, your application may get rejected, and you will be notified about the same in form GST REG-05 of registration under GST.

Documents Required for GST Registration

Here are the documents required to complete the GST Registration:

• PAN Card
• Aadhaar Card
• Business address proof
• Bank account statement and cancelled cheque
• Incorporation Certificate or proof of business registration
• Digital Signature
• Director’s or Promoter’s ID proof, proof of address (Voter ID, Passport, Ration Card, Driving License, Bank Account Statement, etc.), and photographs
• Letter of Authorisation or Board Resolution for Authorised Signatory

GST Registration Fees

The government doesn't ask for any GST registration fees for GST registration online on its official portal. After submitting the required documents you will receive the Application Reference Number (ARN) via SMS and email to confirm the registration. You may take the help of a professional CA while registering for GST.

Penalty for not registering under GST

Any individual not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.

The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes.

Latest GST News

• 5th June 2021, the CBIC official department issued the latest updates on the GSTN portal related to the late fee for the registered taxpayer of the GSTR 3B return form. 
• 31st May 2021, “Extension in dates of various GST Compliances for GST Taxpayers” 
• In the 43rd GST meet, the last date for filing an application for revocation of cancellation between 15 April to 29th June 2021, has been extended till up to 30th June.
• 28th May 2021, 43rd GST Council meeting took place on 28th May 2021 (Friday) at 11 A.M. via video conferencing and was chaired by Union FM Nirmala Sitharaman. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalized for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021.
• Aadhaar authentication is not needed for GST registration for foreigners.