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Goods and service tax introduction
- 1. Goods and ServiceTax (Introduction) ~By Dheeraj Mundra (UPACA’in)
- 2. What is Goodsand Services Tax (GST)? It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer By Dheeraj Mundra (UPACA’in)
- 3. Why GST? Toavoid cascading effect due to different taxes of central government and sate government. To make clear distinction between sales and service on commodities where it is difficult to judge whether transaction entered amount to sales transaction or service transaction. E.g.- providing right to use software. To avoid monopoly of state government to make rate structure of VAT Huge amount of litigation in current system of indirect taxes. To widen the scope of current tax system ETC. By Dheeraj Mundra (UPACA’in)
- 4. Advantages of GST Simpler tax system Reduction in prices of goods and services due to elimination of cascading Uniform prices throughout the country Transparency in taxation system Increase in employment opportunities i) For citizens By Dheeraj Mundra (UPACA’in)
- 5. A unifiedcommon national market to boost Foreign Investment and “Make in India” campaign Boost to export/manufacturing activity, generation of more employment, leading to reduced poverty and increased GDP growth Improving the overall investment climate in the country which will benefit the development of states Uniform SGST and IGST rates to reduce the incentive for tax evasion Reduction in compliance costs as no requirement of multiple record keeping ii) For Central/State Governments By Dheeraj Mundra (UPACA’in)
- 6. Reduction inmultiplicity of taxes Mitigation of cascading/double taxation More efficient neutralization of taxes especially for exports Development of common national market Simpler tax regime-fewer rates and exemptions iii) For Trade/Industry By Dheeraj Mundra (UPACA’in)
- 7. Registration For GST 1)ThresholdLimit:- 1 What is aggregate turnover? 1 As per section 2 (6) of the Model GST Law, aggregate turnover includes the aggregate value of: (i) all taxable and non-taxable supplies, (ii) exempt supplies, and (iii) exports of goods and/or service of a person having the same PAN. By Dheeraj Mundra (UPACA’in)
- 8. persons makingany inter-State taxable supply; casual taxable persons; persons who are required to pay tax under reverse charge; non-resident taxable persons; persons who are required to deduct tax under section 37; persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise; input service distributor; persons who supply goods and/or services other than branded services, through electronic commerce operator; every electronic commerce operator; an aggregator who supplies services under his brand name or his trade name; and such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council. Persons required to be registered compulsorily irrespective of the threshold limit:- By Dheeraj Mundra (UPACA’in)
- 9. The applicant,will need to submit his PAN, mobile number and email address in Part A of Form GST REG–01 on the GSTN portal or through Facilitation center (notified by board or commissioner). The PAN is verified on the GST Portal. Mobile number and E-mail address are verified with a one-time password (OTP). Once the verification is complete, applicant will receive an application reference number on the registered mobile number and via E-mail 2)Registration process for New Assessee:- i)Form GST REG–01 (Part A) ii)Form GST REG–01 (Part B) Applicant needs to fill Part- B of Form GST REG-01 and specify the application reference number. Then the form can be submitted after attaching required documents. By Dheeraj Mundra (UPACA’in)
- 10. An acknowledgementshould be issued to the applicant in FORM GST REG-02 electronically iii) Form GST REG-02 Note:- If additional information is required, Form GST REG-03 will be issued. Applicant needs to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03. iv) Form GST REG –06 the registration certificate in Form GST REG –06 for the principal place of business as well as for every additional place of business will be issued to the applicant Note:- If the person has multiple business verticals within a state he can file a separate application for the registration in Form GST REG-01 for each business verticals. By Dheeraj Mundra (UPACA’in)
- 11. the registrationapplication is rejected using Form GST REG-05 v) Form GST REG-05 vi) Form GST REG – 07 The applicant who is required to deduct TDS or collect TCS shall submit an application in Form GST REG – 07. Note:- If he is no longer liable to deduct or collect tax at source then the officer may cancel and communicate the cancel of registration. By Dheeraj Mundra (UPACA’in)
- 12. PAN cardof the company Registration Certificate of the company Memorandum of Association (MOA) /Articles of Association (AOA) Copy of Bank Statement Declaration to comply with the provisions Copy of Board resolution 3)Documents required for GST registration:- i) Documents required for Private Limited Company, Public Company, One person company:- - Company documents - Director related documents PAN and ID proof of directors By Dheeraj Mundra (UPACA’in)
- 13. Copy ofelectricity bill/landline bill, water Bill No objection certificate of the owner Rent agreement (in case premises are rented) - Registered Office documents By Dheeraj Mundra (UPACA’in)
- 14. ii) Documents requiredfor Limited Liability Partnerships (LLP): - LLP documents PAN card of the LLP Registration Certificate of the LLP LLP Partnership agreement Copy of Bank Statement of the LLP Declaration to comply with the provisions Copy of Board resolution PAN and ID proof of designated partners - Designated Partner related documents - Registered Office documents Copy of electricity bill/landline bill, water Bill No objection certificate of the owner Rent agreement (in case premises are rented) By Dheeraj Mundra (UPACA’in)
- 15. iii) Documents requiredfor Normal Partnerships - Partnership documents PAN card of the Partnership Partnership Deed Copy of Bank Statement Declaration to comply with the provisions - Partner related documents PAN and ID proof of designated partners - Registered Office documents Copy of electricity bill/landline bill, water Bill No objection certificate of the owner Rent agreement (in case premises are rented) By Dheeraj Mundra (UPACA’in)
- 16. PAN cardand ID proof of the individual. Copy of Cancelled cheque or bank statement. Declaration to comply with the provisions. iv) Documents required for Sole proprietorship/Individual - Individual documents -Registered Office documents Copy of electricity bill/landline bill, water Bill No objection certificate of the owner Rent agreement (in case premises are rented) By Dheeraj Mundra (UPACA’in)
- 17. Voluntary Registration Fresh Registration GST REG-1 (Application) GST REG-2 (Acknowledgement) Approved GSTREG-6 (Registration) Not Approved GST REG-3 (Require Clarification) GST REG-4 (Submit Clarification) Not Approved GST REG-5 (Rejection) Summary Person Required to deduct TDS, TCS. GST REG-7 (Application) By Dheeraj Mundra (UPACA’in)
- 18. Login towww.aces.gov.in Update Email Id & Mobile No Obtain credentials for GSTN enrolment from ACES You will get an Provisional id for GST 2)Registration process for Assessee already registered under VAT/CST/Excise:- 1st Part Getting Provisional id for GSTN Enrollment By Dheeraj Mundra (UPACA’in)
- 19. Visit toGST portal - https://www.gst.gov.in Step 1: Registering as “New User Login” Step 2: Agreeing to furnish information to GSTN Step 3: Enter provisional ID and password received from ACES Step 4: Registration Email id & Mobile number for GSTN Step 5: Verification of Email & Mobile number using OTP Step 6: Creation of username and password for GSTN login Step 7: Security questions to Reset password Successful creation of user id and password for GSTN Part 2 GSTN Enrollment process By Dheeraj Mundra (UPACA’in)
- 20. Login usingyour newly created ID and password Filing the form GST-REG-20-application for enrollment of existing taxpayer:- -Business Details -Promoters / Partners -Authorized Signatory -Principal Place of Business -Additional Place of Business -Goods & Services -Bank Accounts -Verification Successful submission-Acknowledgement Part 3 Filling the form GST-REG-20 (Application for enrollment for existing taxpayer) By Dheeraj Mundra (UPACA’in)
- 21. Data and documentsrequired for enrollment Details Documents required File format and Size for uploading Business Detail 1. Registration certificate 2. Partnership deed (if applicable) PDF/JPEG(1MB) Promoters/Partners Photograph (for each) JPEG(100KB) Authorized Signatory 1.Proof of appointment 2.Photo PDF/JPEG(1MB) JPEG(100KB) Principal / Additional Places Of Business Address proof (for each) PDF/JPEG(1MB) Bank Accounts Statement/First page (for each) PDF/JPEG(1MB) By Dheeraj Mundra (UPACA’in)
- 22. Who can signusing DSC/e-sign? Sl No Constitution Who can sign 1 Proprietor Proprietor 2 Partnership Managing partner 3 HUF Karta 4 Company/LLP Authorized Signatories , duly authorized by the Board of the Company/LLP 5 Trust registration Managing trustee 6 Association of persons 7 Club, Society Authorized Signatories , duly authorized by the management committee 8 Local authority Authorized Signatories 9 Statutory Body Authorized Signatories 10 Government department Authorized Signatories By Dheeraj Mundra (UPACA’in)
- 23. Summary Taxpayer obtains GSTN loginid and password from “www.aces.gov.in” Taxpayer logins to GSTN Portal, “www.gst.gov.in” Completes enrolment process and uploads documents Gets Application Reference Number Taxpayer obtains provisional GSTIN on appointed date By Dheeraj Mundra (UPACA’in)
- 24. GSTN help:- For anyassistance with GSTN Common Portal, contact GSTN helpdesk:- 0124-4688999 helpdesk@gst.gov.in By Dheeraj Mundra (UPACA’in)
- 25. Thank you ~By DheerajMundra (UPACA’in)