GST was implemented on 1st of July 2017 and is used for service providers, traders, manufacturers, and even freelancers in India. The structure of GST was the replacement for the Central and state- level taxes as Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax and finally the VAT has been merged to follow a simplifying taxation system. Thus the GST registration charges differ depending on the type of business and the turnover. 

 The eligible taxpayers are those persons or companies whose annual turnover is less than 1. For five crore, the facility of composition scheme has been provided under the GST regime. Through this scheme, they can go through less complicated procedures regarding GST and they have to pay taxes to a fixed rate depending on their turnover. 

 The GST mechanism is implemented at multiple tiers of the supply chain. This involves purchasing of the basic inputs, processing, distribution, sale to the various dealers and ultimately to the final user. It is worth understanding that GST is charged at every single one of these stages. For instance, if a product manufactured in West Bengal is consumed in Uttar Pradesh, the GST collected is credited fully to Uttar Pradesh much in consonance with the consumption-based GST.

The Goods and Services Tax (GST) in India is structured around three primary components:The Goods and Services Tax (GST) in India is structured around three primary components:

• Central Goods and Services Tax (CGST): This tax is administered by the Central Government for the turnover of goods and services in a definite state. CGST is levied in relation to supplies taking place within the territorial jurisdiction of a particular state.

• State Goods and Services Tax (SGST): GST is levied by the State Government for interState sales and for all sales within the State. Similar to CGST, SGST is also restricted to the intra-state turnover only or the turnover that takes place within a particular state only.

• Integrated Goods and Services Tax (IGST): It is known as Inter-State Tax and is directly collected by the Central Government in respect of supply of goods and or services between two or more states, or supply of goods and or services by a state to any Union Territory.

In case of interstate sales, that is, when goods or services cross state or Union Territory boundaries, IGST plays its part.

GST registration is essential for the following persons:GST registration is essential for the following persons: 

• Business Entities: The legislation provides that any enterprise having an aggregate annual turnover of more than Rs. 40 lakhs is covered within the definition of an ‘entrant’. In case of special category states under GST, the proposed threshold is to a tune of Rs. 20 lakhs. 

• Service Providers: Such persons having an aggregate annual turnover of more than Rs. 20 lakhs. The maximum limit of claims in such situations for the special category states will be 10 lakhs of rupees. 

• Exemptions: However, it may be stated here that those entities who are involved in the supply of only those goods and/or services which have been exempted under GST regime are out of the purview of these thresholds. 

• Previously Registered Entities: Those entities that were earlier registered under the older systems of taxation – the Excise, VAT, Service Tax etc. must now register for the GST system. 

• Inter-State Suppliers: Any manufacturer or trader or exporter or importer or transporter or any other person who is either directly or indirectly linked with the supply of any goods between one or more states. 

• Casual Taxable Entities: This is the case of persons who provide taxable supply occasionally. 

• Entities under Reverse Charge Mechanism: Reverse charge business which are legally required to pay the tax. 

• Input Service Distributors & Agents: Other sub buyers of input services, as well as their agents. 

•  E-Commerce Platforms: It has brought discomfort for operators or aggregators of e-commerce platforms. 

• Non-Resident Taxable Entities: Persons or organisations who are established in a foreign country but make a taxable supply in India. 

• Supplier's Agents: Those companies or suppliers that bring supplies to the market on behalf of a main supplier. 

• E-Commerce Suppliers: Sellers involved in e-commerce aggregators since they are the ones who present their products and/or services on the aggregator’s platform. 

• Online Service Providers: Online information providers, database/software access providers or retrieval services from a location outside India to an individual physically present in India where supplier of service is not registered for GST.

GST registration can be obtained on a voluntary basis by anyone or any business regardless of his or its turnover. GST registration becomes compulsory if the person or the entity crosses the threshold turnover in terms of the supply of goods or services. To the businesses that require to register, the process of GST apply online is fast and efficient. 

• Service Providers: Any person or any other legal entity who offers ‘services’ which in the aggregate exceed Rs. 20 lakhs in turnover during a financial year are mandatorily required to register for GST. In special category states additional conditions for registered service providers has been eligibility to cross Rs. 10 lakhs of turnover. 

• Goods Suppliers: As per the notification 10/2019 any person who is involved in the execution of supply of goods exclusively and if his turnover crosses the Rs. 40 lakhs in aggregate in a financial year is liable for obtaining the GST registration. To be eligible for the Rs. 40 lakhs turnover limit, the supplier must satisfy the following conditions:40 lakhs turnover limit, the supplier must satisfy the following conditions:To be eligible for the Rs. 40 lakhs turnover limit, the supplier must satisfy the following conditions: 

1. If it is a law firm it ideally should not be offering any services to the public. 
2. The following States have been identified as the “intra-State” zero rated States: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand Hence, the supplier should not be engaged in making intra-State supplies.
3. It should not get involved in the supply of ice cream, pan masala or tobacco.
4. If the above conditions are not fulfilled the supplier of goods is already liable to obtain the GST registration when the turnover crosses Rs. 20 lakhs in general case and Rs. 10 lakhs in special category states. 

• Special Category States: Some of the states which are included under special category states under GST are Arunachal Pradesh, Assam, Jammu and Kashmir; Manipur, Meghalaya, Mizoram, Nagaland; Sikkim, Tripura; Himachal Pradesh and Uttarakhand.

•  Aggregate Turnover: Aggregate turnover means the total of taxable supplies made during the fiscal year plus exempt supplies, exports and inter-state supplies minus inter-state supplies and other non-taxable supplies; all increased by the total taxes, value of inward supplies, value of supplies taxable under reverse charge, value of non-taxable supplies. 

 The aggregate turn-over is computed from the PAN. Therefore, even where a single person has several shops and other establishments, these are added together to arrive at the total of the turnover.

Registering for GST offers a range of benefits to businesses:Registering for GST offers a range of benefits to businesses: 

• Legal Compliance: It is extremely important for businesses to be up to date with the tax laws and thus eliminate the possibility of penalties. 

• Input Tax Credit: Business entities are allowed to apply for GST for the credit of this tax that has been paid for some materials, so as to off- sets the amount of tax charged on sales. 

• Inter-State Trade Ease: It challenges businesses to transact across the borders of states without having to worry about taxes. 

• Elimination of Cascading Effect: This way tax saves the cost of being paid on an already taxed amount hence reducing the cost of products or services to be provided. 

• Competitive Edge: Ensuring that one’s business is GST compliant is a good way of ensuring that more people out in the market become comfortable doing business with your venture. 

• Access to Larger Markets: Larger businesses especially select to transact with other GST registered suppliers. 

• Optimised Cash Flow: Effective management and reduced taxation expenses increase the amount of cash availability in a business. 

• Enhanced Credit Rating: Keeping GST compliance records in an efficient and positive manner may enhance a business credit profile as well. 

• Legal Safeguard: GST registration provides an assurance, to businesses, that their rights shall be respected in the occurrence of any dispute. 

• Simplified Compliance: The process involved is the GST and it is a smooth process since business entities can make returns and payments online. 

• Transparent Operations: Tells businesses that they need to keep their records clean so as to give a feel of professionalism.

The GST Certificate continues to be an official legal document handed down by Indian authorities to the legal entities legally acting within the legal framework of the Goods and Services Tax (GST).This certificate confirms the legal business under GST and Some business identifiers like GST Identification No, name of the business, official business address figured at prominent places. 

 Possessing an authentic GST Certificate is pivotal for enterprises because:Possessing an authentic GST Certificate is pivotal for enterprises because: 

• Tax Collection Authority: It provides the prerogatives of levying and collecting GST from the clientele to businesses. 

• Tax Credit Claims: By means of this certificate, business entities are in a rightful position to take credits on the GST paid by them on their purchases and other business expenses incurred by them. Furthermore, beyond its tax-related functions, the GST Certificate holds significance in several other domains. Furthermore, beyond its tax-related functions, the GST Certificate holds significance in several other domains: 

• Loan Applications: During the application of loans or grants, companies may be required to provide letters of authenticity of the GST certificate. 

• Government Tenders: In specific contractual procurement bids where the government offers their contracts to other competent companies, GST CERTIFICATE must be presented so as to be considered qualified for the tender. 

Market Reputation: It also improves a business’s standing in the market hence having a proof of compliance to national tax laws.

GSTIN is an integrated 15-digit alpha-numeric code conferred to every registered individual under the GST regime in India abbreviated for Goods and Services Tax Identification Number. It is this number that is used by the businesses as well as individuals for the purpose of identification of their businesses or profile in the domain of GST transaction and compliance. On the completion of the application process through GST Apply online portal you will get the GSTIN.

Any business collecting turnover below Rs. 20 lakhs shall be able to opt for the GST apply online procedure. . That way, they can be able to enjoy some of the benefits like being able to claim input tax credit, having free movement of goods across the states, being able to list goods and services on the various e-commerce platforms, as well as assuming a better negotiating position against those businesses that are not registered under GST. Although this Registration isn’t mandatory, it opens up the possible way to better growth prospects and subsequent improvement in profitability.

• For Non-Payment or Underpayments: They still write off 10% of the tax they failed to pay or the portion they paid in error solely on condition that the outstanding amount should be paid in acceptable equivalent. However, perhaps surprisingly, it should be pointed out here that although there are no GST registration fees there are penalties that accrue with noncompliance. 

• Intentional Tax Evasion: Where a person or company deliberately fails to pay the required tax then the penalty is equivalent to the amount of the tax avoided.

• Sole Proprietor

a) PAN of Proprietor

b) Proof of Address (Aadhar/Passport/Electricity Bill)

c) Photo

d) Proof of registered office address (Lease Deed/Electricity Bill/Rent Agreement)

e) Consent letter, if property not owned

f) Cancelled Cheque Copy/Bank Statement/First page Passbook of Bank Account

• Partnership Firm

a) Partnership Deed

b) PAN of Firm

c) PAN of Partners

d) Proof of Address of Partners (Aadhar/Passport/Electricity Bill)

e) Proof of registered office address (Lease Deed/Electricity Bill/Rent Agreement)

f) Letter of Authority

g) Consent letter, if property not owned

h) Cancelled Cheque Copy/Bank Statement/First page Passbook of Firm Bank Account

• Limited Liability Partnership

a) PAN of LLP

b) Certificate of Incorporation

c) PAN of all partners

d) Proof of Address of Partners (Aadhar/Passport/Electricity Bill)

e) Photo of all partners

f) Proof of registered office address (Lease Deed/Electricity Bill/Rent Agreement)

g) Letter of Authority

h) Consent letter, if property not owned

i) Cancelled Cheque Copy/Bank Statement/First page Passbook of LLP Bank Account

• Companies

a) PAN of Company

b) Certificate of Incorporation

c) PAN of all Directors

d) Proof of Address of Directors (Aadhar/Passport/Electricity Bill)

e) Photo of all partners

f) Proof of registered office address (Lease Deed/Electricity Bill/Rent Agreement)

g) Letter of Authority

h) Consent letter, if property not owned

i) Cancelled Cheque Copy/Bank Statement/First page Passbook of Company Bank Account

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