Frequently Asked Questions (FAQs) On GST Registration
What is Goods and Service Tax (GST)?
GST is an integrated indirect tax on sale and purchase of goods and services across India. GST has consolidated all the different kinds of indirect taxes in India like VAT, service tax, excise, etc.
What are GST Tax Slabs?
Goods and Services Tax (GST) is charged at different rates on different goods and services between 0-28%. The current GST tax slabs are 5%, 12%, 18% and 28%.
Which Indirect Taxes Were Consolidated By GST?
The Goods and Services Tax subsumed the following indirect taxes that were previously applicable across India:
- State VAT
- Central Sales Tax
- Luxury Tax
- Entry Tax
- Entertainment and Amusement Tax
- Taxes on advertisements
- Purchase Tax
- Taxes on lotteries, betting and gambling
- State Surcharges and Cesses so far as they relate to supply of goods and services
What are the types of GST?
The different kinds of Goods and Services Tax in India are as follows:
- CGST: Central Goods and Services Tax, paid on all transactions and collected by the Centre.
- SGST: State Goods and Services Tax, paid on all transactions within a State as well as collected by the State.
- IGST: Integrated Goods and Services Tax, paid on all inter-state transactions or import of goods into India, and collected by the Centre.
Who is liable to get GST Registration done?
The following persons have to mandatorily get their GST registration done:
- Each supplier (including his agent), having an aggregate turnover in a financial year of more than INR 20 lakhs.
- Each supplier who falls under the unique category state under Article 279A(4)(g) of the Constitution of India, having an annual turnover of more than INR 10 lakhs.
- Every person who previously held tax registration under the different indirect taxes.
- Every person engaged in inter-state supply of goods and services.
- Every person engaged in e-commerce supply of goods and services.
- Casual taxable persons making a taxable supply.
- Non-resident taxable persons making a taxable supply.
- Persons who are required to deduct tax under Section 51.
- Persons who are required to pay tax under reverse charge.
- Persons who are required to pay tax under Section 9(5).
- Every electronic commerce operator who is required to collect tax at source under Section 52.
- Input service distributor.
- Persons who supply goods, other than supplies specified under Section 9(5), through such e-commerce operator who is required to collect tax at source under Section 52.
- Every person supplying online information and database retrieval services from a place outside India to a person in India, other than a registered person.
What is the Input Tax Credit (ITC)?
A business pays input Tax Credit or ITC on a purchase, and it can use to reduce the business’s tax liability when the business makes a sale. A company can reduce its tax liability by claiming credit to the extent of GST paid on its purchases.
What is the time limit for getting GST Registration?
A person must get GST Registration within thirty days from the date on which he becomes liable to registration; however, a Casual Taxable person and a non-resident taxable person must apply for GST registration at least five days before commencement of business.
What are the Documents required to get GST Registration?
The documents needed for GST registration in India are:
- PAN Card of business.
- Proof of business registration.
- Proof of address of the business.
- ID Proof
- Digital Signature Certificate.
- Current account details.