Goods and Services Tax (GST)

GST aims to make a better nation by providing a common market with a common tax rates in order to remove all the economic barriers thus pave a way for an integrated economy at the national level. It would mitigate the cascading effect, improve the liquidity of the business and improve competitiveness. The GST replaces all the indirect taxes which have been levied by the central and state government. It is one of the biggest taxation reforms in India since it consolidates all state economies. The main aim is to create a cooperative, undivided single Indian market to make the economy much powerful and strong.

It provides a significant breakthrough for all the inclusive indirect taxes and brings an incredible change for our nation. Centralise the taxation for businesses to relieve them the burden of compliance and better managing the cash and finances.

Benefits of GST:

  • It brings benefits to all the stakeholders of industry, consumer and the government. It will boost the economy, lower the cost of goods and services and make the services and products globally competitive.
  • It is the destination based taxes. In this, tax will be collected at every stage and the credit of tax paid at the previous stage will be available at the next stage of transaction.
  • GST reduces the human interface at a greater extent and it is largely technology driven and this may lead to take a speedy decisions.
  • This is an initiative for “Make in India” and gives a boost to that scheme. The government of India makes the products and services which have produced in India to be more competitive in both the national and international market.
  • Improving the exports and the payment options. Exporters with a clean track record will be rewarded by obtaining the immediate refund of 90% of their claims arising on the account of exports within seven days.
  • GST is expected to bring the government revenue by widening the tax and lessen the compliance for the tax payers. It is likely to expect the India’s ranking in the ease of doing business index and it is estimated to increase the Gross Domestic Product (GDP) by 1.5-2%.
  • In GST, taxes for both the centre and the state will be collected at the point of sale. If prices are likely to come down means more consumption, more consumption leads to more production thus help to grow the companies.
  • By implementing this, India is expected to gain $15 billion per year. This is why because it creates more employment, more exports, and boosts the growth. Burden of tax has been divided between manufacturing and services.

Documents required for GST:

  • Identity and address proofs:
    • The following persons are required to submit the address proof and identity proof along with the photographs. For address proof, documents such as Aadhar card, voters’ identity, driving licence and ration card can be submitted. For an identity proof, documents such as Passport, PAN, driving license, Aadhar card or voter identity card could be submitted.
    • Company – Directors, authorised person and the managing director.
    • Trust- Trustees, managing trustee and the authorised person.
    • LLP/Partnership firm – Authorised/managing and the designated partners.
    • Statutory body –CEO or his equivalent.
    • Association of persons or body of individuals- Managing committee members and their personal details need to be submitted.
  • PAN card of the applicants:

    PAN card is linked with the GST registration. Hence PAN is a mandatory one that should be obtained before applying for GST registration.

  • Address proof for the place of business:

    The following documents can be taken as an address proof for GST registration. For rented or leased premises, a copy of the valid rental agreement to be produced to evident the proof for premises. Tax receipt copy or the copy of electricity bills can be produced for the possession of premises.For own premises, ownership document need to be produced or in some other cases a consent letter from the owner of the premises.

  • Business registration document:

    All types of entities must submit the proof of business registration documents. In case of company or LLP, the certificate of incorporation need to be submitted and a partnership deed has to be produced if it is a partnership firm. For other types of firms such as club, trust, society or any other body of individuals, registration certificate can be provided.

  • Bank account proof:

    First page of bank passbook scanned copy or the bank statement or the cancelled cheque which contains the name of the proprietor.

  • Digital signature:

    GST registration must be signed through a digital signature. The authorised person must obtain the DSC to sign the GST registration application before beginning the process.