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Predominant Gst registration and its importance in India

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Title: Predominant Gst registration and its importance in India


1
Predominant GST registration and its importance
in India
  • Here, in this blog we have discussed about the
    predominant GST registration and their importance
    to be known by each and every person

2
Predominant GST registration and its importance
in India
  • GST stands for goods and service tax. The one
    hundred and twenty second amendment bill of the
    Indian constitution introduced the National Goods
    and Service Tax from 1st July 2017. This is
    officially known to be the constitution act,
    2016. Consequently, the prominent reason behind
    the introduction of predominant GST is the tax
    burden that falls both on companies and the
    customers. Regarding to the current tax system,
    there are several taxes added at each and every
    stage of the supply chain, without taking credit
    for taxes that are paid at the earlier stages

3
As a result, the end user cost does not clearly
shows the actual cost of the product that are
sold and purchased and how much tax was applied.
This structure remains quite complex and
inefficient one. Moreover, Gst will integrate
more taxes into single unit, which can be applied
to the sales and the purchases of the goods and
services, with deductions for taxes paid at the
earlier supply chain stages. This structure
remains easier to be tracked by both government
and the business people.
4
Predominant tax system
  • The indirect tax system in India is extremely a
    complex one. It has been felt that this tax
    structure and the general legal framework reduced
    many entrepreneurs and also hinders the growth of
    many business. India, being a single country
    facing many internal barriers to administrate
    trade, commerce and the business of the dominant
    tax structures. Likewise, VAT implementation also
    helped a lot in preparing the groundwork that is
    essential for bringing out the next level of tax
    reforms called Goods and service tax (GST).
    Moreover, It has been seen as an efficient tax
    system and this affects the structuring of the
    various operations. Thus, the industries are
    required to analyze the provisions of the GST Law
    and its impact in their business.

5
Predominant GST filing
  • Specifically, predominant GST law implies
    obtaining a unique number from the concerned tax
    authorities for the registered business entity
    for collecting tax on behalf of the government.
    In fact, Section 22(3) of the CGST Act, says that
    where a business carried on by a taxable person
    registered is transferred, the Transfee or the
    successor would be liable to be registered with
    effect from such transfer or succession and he
    will have to obtain a fresh registration with
    effect from the date of such transfer or
    succession.

6
Section 22(4) states that if a business is
transferred as an order of a High Court, or
otherwise pursuit to 1.            Sanction of
scheme 2.            Arrangement for
amalgamation 3.            De-merger of two or
more companies, As a result, the transferee would
be liable to obtain registration from the date on
which the Registrar of Companies issues a
certificate of incorporation giving effect to
such order of the High Court or Tribunal.
7
Why you will pay GST?
  • Chiefly, it is important to note that there are
    two categories of businesses that comes under the
    predominant GST. The first one is that you have
    to register the business alone. The other
    category is that you will have to register as
    well as pay taxes. These categories are decided
    based on the turn over which is being calculated
    using the GSTIN. Similarly, The GST act in the
    clause (3) of the defining section 2 defines all
    the aggregate value of all the taxable supplies,
    excluding the values of inward supplies on which
    tax is payable by a person on inverse charge
    basis.

8
However, it also exempt supply of goods and
services and services of inter-state supplies
having the same permanent account number to be
computed all over India. It excludes Central tax,
State tax, Union Territory tax, integrated tax
etc. If the Aggregate Turnover is over 19 lakh
then the business is eligible to register on the
GST Portal. As soon as, if the aggregate turnover
exceeds 20 lakh, the business becomes liable to
pay GST. The aggregate turnover has been kept
lowered for the north-east states at 9 lakh for
registration and 10 lakhs for paying taxes.
9
Predominant Registration Rules under Goods and
Services Tax
  • PERSONS WHO HAVE TO REGISTER
  • It is important to know who is liable to register
    under the Goods and Services Tax. Provisions
    regarding Registration are contained in Section
    22 to Section 30 of the Central GST Act, 2017.
  • According to Section 22 of the Act, the following
    categories of people have to register under the
    Goods and Services Act.

10
  • Each and every supplier whose annual turnover is
    Rs. 25 lakh have to register under the Goods and
    Services Act, 2017.
  • In the case of a special category state, supplier
    who has an annual turnover of Rs. 10 lakh have to
    register themselves under the GST Act.
  • The persons who are previously enrolled under
    different laws prior to the commencement of this
    act also have to get themselves registered.
  • Any person who has taken over the business from
    the other person of the registered company also
    have to register GST.

11
  • PERSONS WHO DO NOT HAVE TO REGISTER
  • Under Section 23, the Central Government gives
    exemptions to some category of people who do not
    want to register GST
  • Any person who is involved in the supply of Goods
    and Services do not have to get themselves
    registered under the Goods and Services Act,
    2017.
  • Any agriculturist who is involved in the supply
    of the product which does not involve the
    cultivation of land.
  • The government on the advice of the council from
    time to time through notices may specify the
    category of persons who may be exempted from
    getting themselves registered.

12
  • COMPULSORY REGISTRATION
  • According to Section 24 of the Goods and Services
    Act, 2017 there is a certain category of people
    who have to register compulsory
  • Any person who is making an inter-state taxable
    supply have to register compulsory.
  • Consequently, Persons who are required to pay GST
    under reverse charges.
  • The non-resident taxable person making a taxable
    supply.
  • Persons who make taxable supply of goods and
    services for other taxable people as an agent or
    otherwise are also required to get themselves
    registered.
  • Any other person who is notified by the
    government on the recommendations of the Gst
    Council.

13
AMENDMENT TO REGISTRATION
  • According to Section 28, any person can inform
    the concerned officer to make some changes in the
    information presented to him at the time of
    registration, through a proper procedure, the
    officer concerned have the power to either accept
    the changes or reject the changes but he cannot
    reject the changes without giving the other
    person a chance to speak for himself.

14
Documents required for GST registration
15
  • PAN Card of the Business and Applicant
  • Valid Indian Phone Number and Email address
  • Proof of Place of business
  • Any document in support of the ownership of the
    premises such as Latest Property Tax Receipt or
    copy of Electricity Bill or the Copy of the valid
    Rent / Lease Agreement/Consent letter (as
    applicable)
  • Valid bank account number from India
  • Other details such as list of goods and services,
    Proof of appointment of Authorized Signatory
    ,Authorized Signatories photo (soft copy)
  • For Companies and LLPs, it is important to have
    digital signature (class 2 digital signature) of
    the person who is authorized to sign the GST
    application
  • Incorporation certificate

16
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