Goods and Services Tax (GST) in India
GST (Goods and Services Tax) in India is an indirect tax that consolidates several taxes into a single nationwide system.
The implementation date was set to July 1, 2017.
GST covers most goods and services available in India, but a few are excluded.
SINGULAR BUSINESS OWNER
GST registration is mandatory when business turnover reaches a certain threshold. Current thresholds are as follows: for the service sector, it is set to ₹20 lakh annually, and for manufacturing, it is set to ₹40 lakh annually.
As soon as the business owner reaches the turnover threshold, they are legally required to register their business under the GST Act.
The following documentation is required to complete GST registration:
- Basic KYC documentation that includes the owner’s PAN and Aadhaar, a recent photograph, and the owner’s email and mobile numbers.
- If applicable, a rental agreement or a recent business utility bill.
- If it is a company or a firm, an authorization letter for GST registration is required.
- Filing Returns on www.Gst.gov.in
- Businesses are required to file returns on www.Gst.gov.in every month. There are many returns that companies are required to file. The primary ones are Gstr-1, which involves uploading invoices one by one, Gstr-3B, which entails paying the monthly GST liability; and Gstr-9, which is the annual return.
Steps to Filing GST
First, go to the GST portal to start registration and make an account. Once you finish registering, you will get a Temporary Reference Number, or TRN. The portal can be found at https://www.gst.gov.in/. TRN creation needs some basic info, and a TRN allows the user to submit more documents.
Logging into GST
Once your registration is approved, you will receive a user ID and temporary password to access the GST system.
Generating Eway Bills
An Eway Bill is an electronic transport document that allows for the movement of goods. These can be created on the GST eWay Bill Portal. Under GST regulations, a registered seller is prohibited from transporting goods valued over 50,000 without an Eway Bill. After your GST registration is approved, the office will provide you with a user ID and a temporary password to access the Eway Bill system.
GST Searches
To verify the accuracy of the GST number and the goods or services provider, you can check their details. GST can be checked either by providing the PAN or the GST number. Go to the option “Search Taxpayers,” and click on the tab Search by PAN. Enter the corresponding PAN for the GST number you are trying to find, then click SEARCH.
GST Verifications
Verify whether the seller or service provider is still operational. If the seller is deactivated for any reason, you should avoid doing business with that person to mitigate the risk of GST compliance issues down the line. Go to the Search Tax Payers option, and click on the Search by PAN tab. Enter the PAN for which you want the GST number, then click SEARCH. It will display the GST status.
GST Number or GSTIN:
A GSTIN is a 15-digit number assigned by the GST office to every registered GST holder. A business is required to quote its GSTIN on every invoice/bill and must also display it at its place of business.
GST Filing
GST returns must be filed monthly on GST portals such as www.Gst.gov.in. There are different forms of returns; however, three stand out: GSTR-1, which involves uploading invoices into the GST system; GSTR-3B, which concerns the payment of the monthly GST liability; and GSTR-9, which is an annual return that must be submitted once a year. Please remember that GST filing is mandatory, and many GST account holders fail to file their returns, which can result in account closures and fines.
GST Suvidha Kendra
The GST Suvidha Kendra is an integrated service centre for GST and for business owners. The IN Filings team is part of the GST Suvidha Centre, which offers all GST services under one roof.
Team IN Filings
Team IN Filings is based in Bengaluru and is an accessible, dependable GST and indirect tax partner for many clients.
The practice is organized and managed at a professional level. It is supported by a multidisciplinary team that comprises a Company Secretary, a chartered accountant, a lawyer, and a tax consultant. The firm extends its services on GST and the advocacy of tax-efficient business structures. For GST-related inquiries, feel free to contact IN Filings’ team using the details provided below.
