Goods and service tax introduction

Goods and Service Tax
(Introduction)
~By Dheeraj Mundra (UPACA’in)

What is Goods and 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)

Why GST?
 To avoid 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.

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

 A unified common 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

 Reduction in multiplicity 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

Registration For GST
1)Threshold Limit:-
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.

 persons making any 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:-

 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.

 An acknowledgement should 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.

 the registration application 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.

 PAN card of 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

 Copy of electricity bill/landline bill, water Bill
 No objection certificate of the owner
 Rent agreement (in case premises are rented)
- Registered Office documents

ii) Documents required for 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
 Copy of Board resolution
 PAN and ID proof of designated partners
- Designated Partner related documents

iii) Documents required for Normal Partnerships
- Partnership documents
 PAN card of the Partnership
 Partnership Deed
 Copy of Bank Statement
- Partner related documents
 PAN and ID proof of designated partners

 PAN card and 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

Voluntary
Registration
Fresh
Registration
GST REG-1
(Application)
GST REG-2
(Acknowledgement)
Approved
GST REG-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)

 Login to www.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

 Visit to GST 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

 Login using your 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)

Data and documents required 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)

Who can sign using 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

Summary
Taxpayer obtains
GSTN login id 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

GSTN help:-
For any assistance with GSTN
Common Portal, contact GSTN
helpdesk:-
 0124-4688999
 helpdesk@gst.gov.in

Thank you
~By Dheeraj Mundra (UPACA’in)

Goods and service tax introduction

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Goods and service tax introduction

Similar to Goods and service tax introduction (20)

Recently uploaded

Recently uploaded (20)

Goods and service tax introduction