Get a ready with Goods & Service Tax
In India, Goods and Services Tax introduced in 2014 after the Lok Sabha Elections. It is an indirect or consumption tax that remains applicable to the supply of goods and services akin to electronic appliances, cigarettes, alcohol, foods in restaurants and more. Yet, it is noteworthy to mention that the basic necessities of edible are free of these indirect taxes. This includes milk, meat, fish, honey, fruits, vegetables, corn flour, wheat flour and more. As per the recent GST updates, 0% to 28% GST is applicable to various Goods and Services.
When it comes to the Indian Government, it only charges from the public to give back some benefits to the public. To enjoy such benefits, some processes are required. Such two processes are GST Registration and GST File Return. Let’s take a glimpse of what they are!
What is GST Registration?
GST Registration allows the small and large business institutions to charge Goods and Services tax from their customers on behalf of the Government. All the business entities that lie within the guidelines of GST must get a unique GST No. for their company and charge the taxes. Yet, the question stands who needs GST Registration? Well! All the business with a turnover of more than 40 lakhs is mandated to register for GST. Apart from this, Northeast Indian and Hill state companies with a turnover of more than 10 lakhs are mandated to register for GST.
Documents required for GST registration are:
- PAN Card (business or individual)
- Verification document for proof of place of business
- Utility bills (for verification)
- Indian bank account details
- Company Incorporation certificate
- Letter of Authorization
What is GST Tax Rates?
GST Tax Rates are the tax rates as per which the business is directed to charge GST from customers. Without a doubt, GST has replaced custom duty, VAT, excise duty and other applicable taxes. However, today only single tax, i.e.., GST remains applicable. For example, on electronic appliances 18% tax was applicable as per the 35th GST revision council. In the next revision council, these tax rates dropped down to 5%.
What is GST Return?
GST Return is a tax return form that companies/individuals must fill with the Tax authorities of India. This return filing allows the individual to display his annual income and get some benefits of GST Return filing. There are different formats for GST returns. For instance, GSTR 9. This is only applicable by the registered taxpayers in India. Last month to file form GSTR-9 remains November 2020.
