What is GST ??

1
 What is GST?  

• GST is an Indirect Tax which has replaced many
  Indirect Taxes in India. The Goods and Service
  Tax Act was passed in the Parliament on 29th
  March 2017. The Act came into effect on 1st July
  2017 Goods Services Tax Law in India is
  a comprehensive, multi-stage, destination-based
  tax that is levied on every value addition.
• In simple words, Goods and Service Tax (GST) is
  an indirect tax levied on the supply of goods and
  services. This law has replaced many indirect tax
  laws that previously existed in India.
• GST is one indirect tax for the entire country.
• So, before Goods and Service Tax, the pattern is
  as given below

2
Journey of GST in India

• The GST journey began in the year 2000 when a
  committee was set up to draft law. It took 17
  years from then for the Law to evolve. In 2017
  the GST Bill was passed in the Lok Sabha and
  Rajya Sabha. On 1st July 2017 the GST Law came
  into force.

3
 Advantages Of GST

• GST has mainly removed the Cascading effect on
  the sale of goods and services. Removal of
  cascading effect has impacted the cost of
  goods. Since the GST regime eliminates the tax on
  tax, the cost of goods decreases. GST is also
  mainly technologically driven. All activities
  like registration, return filing, application for
  refund and response to notice needs to be done
  online on the GST Portal this accelerates the
  processes.

4
What are the components of GST?

• There are 3 taxes applicable under this
  system CGST, SGST IGST.
• CGST Collected by the Central Government on an
  intra-state sale (Eg transaction happening
  within Maharashtra)
• SGST Collected by the State Government on an
  intra-state sale (Eg transaction happening
  within Maharashtra)
• IGST Collected by the Central Government for
  inter-state sale (Eg Maharashtra to Tamil Nadu)

• Illustration 
• Let us assume that a dealer in Gujarat had sold
  the goods to a dealer in Punjab worth Rs. 50,000.
  The tax rate is 18 comprising of only IGST.
• In such case, the dealer has to charge Rs. 9,000
  as IGST. This revenue will go to the Central
  Government.The same dealer sells goods to a
  consumer in Gujarat worth Rs. 50,000. The GST
  rate on the good is 12. This rate comprises of 
  CGST at 6 and SGST at 6.
• The dealer has to collect Rs. 6,000 as Goods and
  Service Tax. Rs. 3,000 will go to the Central
  Government and Rs. 3,000 will go to the Gujarat
  government as the sale is within the state.

5
Tax Laws before GST

• In the earlier indirect tax regime, there were
  many indirect taxes levied by both state and
  centre. States mainly collected taxes in the form
  of Value Added Tax (VAT). Every state had a
  different set of rules and regulations.
  Interstate sale of goods was taxed by the Centre.
  CST (Central State Tax) was applicable in case of
  interstate sale of goods.  Other than above there
  were many indirect taxes like entertainment tax,
  octroi and local tax that was levied by state and
  centre. This led to a lot of overlapping of taxes
  levied by both state and centre. For example,
  when goods were manufactured and sold, excise
  duty was charged by the centre. Over and above
  Excise Duty, VAT was also charged by the State.
  This lead to a tax on tax also known as the
  cascading effect of taxes. The following is the
  list of indirect taxes in the pre-GST
  regimeCentral Excise Duty
• Duties of Excise
• Additional Duties of Excise
• Additional Duties of Customs
• Special Additional Duty of Customs
• Cess
• State VAT
• Central Sales Tax
• Purchase Tax
• Luxury Tax
• Entertainment Tax
• Entry Tax
• Taxes on advertisements
• Taxes on lotteries, betting, and gambling

6
What is GST Registration

• In the GST Regime, businesses whose turnover
  exceeds Rs. 40 lakhs (Rs 10 lakhs for NE and
  hill states) is required to register as a normal
  taxable person. This process of registration is
  called GST registration.
• For certain businesses, registration under GST is
  mandatory. If the organization carries on
  business without registering under GST, it will
  be an offence under GST and heavy penalties will
  apply.
• GST registration usually takes between 2-6
  working days. Well help you to register for GST
  in 3 easy steps.
• CBIC has notified the increase in threshold
  turnover from Rs 20 lakhs to Rs 40 lakhs. The
  notification has come into effect from 1st April
  2019

7
Who Should Register for GST?

• Individuals registered under the Pre-GST law
  (i.e., Excise, VAT, Service Tax etc.)
• Businesses with turnover above the threshold
  limit of Rs. 40 Lakhs (Rs. 10 Lakhs for
  North-Eastern States, JK, Himachal Pradesh and
  Uttarakhand)
• Casual taxable person / Non-Resident taxable
  person
• Agents of a supplier Input service distributor
• Those paying tax under the reverse charge
  mechanism
• Person who supplies via e-commerce aggregator
• Every e-commerce aggregator
• Person supplying online information and database
  access or retrieval services from a place outside
  India to a person in India, other than a
  registered taxable person
• CBIC has notified the increase in threshold
  turnover from Rs 20 lakhs to Rs 40 lakhs.

8
Documents Required for GST Registration

• PAN of the Applicant
• Aadhaar card
• Proof of business registration or Incorporation
  certificate
• Identity and Address proof of Promoters/Director
  with Photographs
• Address proof of the place of business
• Bank Account statement/Cancelled cheque
• Digital Signature
• Letter of Authorization/Board Resolution for
  Authorized Signatory

9
GST Registration Process

• The GST Registration looks like this
• The applicant needs to submit his PAN, Mobile
  number and E-mail address in Part Aof Form GST
  REG-01 on GSTN Portal.
• The PAN is then verified on the GSTN Portal while
  the Mobile number and the E-mail address are
  verified through an OTP (One-time-password). An
  acknowledgment will be issued to the applicant in
  the Form GST REG-02.
• The Applicant then needs to fill the Part B of
  Form GST REG-01 and specify the application
  reference number. The form can be submitted after
  attaching the required documents. The
  authentication would be done by signature through
  DSC or E-Signature.
• If any additional information is required,
  Form GST REG-03 will be issued. The Applicant
  needs to respond in Form GST REG-04 with the
  required information within 7 working days from
  the date of the receipt of Form GST REG-03.
• If applicant has provided all the required
  information via Form GST REG-01 or Form GST
  REG-04, the registration certificate in Form GST
  REG-06 for the principal place of the business as
  well as for every additional place of business
  will be issued. If, however, the details
  submitted are not satisfactorily, the
  registration application will be rejected using
  Form GST REG-05.
• The applicant who is required to deduct TDS or
  collect TCS shall, however, submit an application
  in Form GST REG-07 for the purpose of
  registration.

10
Penalty for not registering under GST

• An offender not paying tax or making short
  payments (genuine errors) has to pay a penalty of
  10 of the tax amount due subject to a minimum of
  Rs.10,000.
• The penalty will at 100 of the tax amount due
  when the offender has deliberately evaded paying
  taxes

11
Thank You