In the year 2017, the GST bill came to fruition after a long struggle. Goods and Service Tax (GST) is a taxation system, which was proposed to eliminate all the existing taxes by merely encompassing all the taxes into a comprehensive GST tax.
What exactly GST is all about? What’s the correct definition to describe Goods and Service Tax clearly? Let’s take a look at it.
GST is an indirect tax that is levied on the sale, manufacturing and consumption of goods and services throughout the country. Under the proposed GST, the tax has to be paid by the final consumer on the supply of goods and services. To replace all other kinds of the tax such as CST, VAT, Excise duty and so forth, GST was introduced in the year 2017. The motive to introduce GST tax was to revolutionise the taxation system altogether and most importantly, to strengthen the Indian economy. Undeniably, tax structure has been revolutionised entirely along with credit reporting, credit utilisation, and tax calculations.
Now, let’s understand more about GST in-depth.
In what ways GST will benefit consumers?
When it comes to paying taxes, most of the consumers are clueless. Most of the times, the consumer doesn’t know about the taxes levied on the goods and services. Therefore, GST became necessary to implement not just for the consumers but for the government as well to keep the close track.
GST will benefit the consumer in two ways majorly. Check them below.
- ‘Tax over Tax’ is a common problem and occurrence, especially in the case of goods that move from one state to another. After the introduction of GST, barriers will be eliminated, and consumers won’t have to pay tax over tax.
- All the taxes are collected only at consumption. To increase the transparency in the taxation system, GST was proposed to prevent all other charges, which is inclusive of both state and central government taxes.
So, majorly these are two ways consumers would benefit from GST. Other than that, people had other questions too, for instance, Will GST improve employment in India? Well, of course, with the implementation of GST clearly indicates the increase in demand and supply of goods, which will eventually boost the economy of India. And, if the economic growth of India is increasing at a good pace, employment rates will increase too! As Rajya Sabha MP sated, Mr Chandrasekhar stated that GST is undeniably a significant tax reform in the Indian taxation system, which will create more employment options, a broad array of product range, and reduced corruption.
What are the Eligibility Criteria for GST registration?
As per the GST council, there are several ways to obtain GST registration for the businesses. All thee prerequisites are mentioned below:
- Businesses that have threshold above the limit of 20 lakh rupees must apply for the GST registration. For some states like Jammu and Kashmir, Himachal Pradesh, Uttarakhand and North-Eastern states of India, the threshold limit is of 10 lakhs.
- Businesses that were earlier registered under the taxation laws including VAT and other service tax must apply for the GST registration for their business.
- Whether you are a taxable person or non-resident taxable person in India, you are eligible to apply for the GST registration.
- Whether you are running a business as an e-commerce operator, Input service distributor or agents of the supplier, it is must to apply for the GST registration.
- Even if you are paying taxes under the reverse charge mechanism, you are eligible to apply for the GST registration according to the rules issued by the GST council.
- If you are supplying information or database access or retrieval service from a place outside India to a person situated in India, you too are eligible for the GST registration.
What is the process of GST Registration?
If you are planning to apply for the GST registration through an online process or GST network, here’s the listed process along with the required documents that are necessary for filling GST registration form.
- Pan Card of the Company
- Aadhar Card
- Proof of Partnership deed, Memorandum of Association (MoA) or Article of Association (AoA), certificate of Incorporation.
- Address proof of the business such as electricity bill, rent agreement etc.
- Cancelled cheque of the bank account or bank account statement of the account holder along with the details like MICR code, IFSC code, branch details and digital signature on it.
- If it’s a partnership deed, then authorised signature of all the partners in tandem with their identity proofs, majorly photographs. For large scale companies, the list of directors with the identity proofs needs to be submitted. Moreover, a letter of authorisation or board resolution for authorised signatory may be needed.
It is essential to have all these documents to file for GST registration. Once you are done with the submission of these documents, it takes around two to six working days. Of course, it’s a tedious process because the documents should be scanned. There are no fees charged by the government for this registration process. However, the process is lengthy; thus it may require to take the right guidance from the GST consultants.
What GST means for the Common Man?
As Goods and Service Tax (GST) is doubtlessly one of the revolutionary taxes in Indian history, it didn’t affect the lives of the consumer but common man too in several ways. To boost the GDP of the country, GST was introduced.
Now, What It Means For The Common Man? Here is the complete guide for you to understand what it all offers to the common man.
- Expensive dining experience
After the proposition of GST, services will get more expensive. Earlier, if you used to pay 1000 bucks while dining out in a good restaurant, then 18.5% service tax along with the VAT charges were used to be levied. But now, it’s predictably more than 18% or so. And, not just the dining out but clubbing, smoking and drinking became expensive as well. Therefore, after the GST reform, people felt the brunt of higher prices.
- Affordable Readymade Clothes
After the reform of GST, readymade garments and clothes became affordable for the customers to buy comfortably. So, if you buy any clothing item, let’s say, a T-shirt that costs 1000 bucks and sold at 1125 bucks including the taxes, after GST implementation of 12%, you will end up paying 1125 bucks in total.
Not just the clothing industry, but LED TVs also became affordable for the customers simply because the 5% VAT and 7.5% Excise Duty is included in it already.
- Higher Call Rates & Internet Expenses
Under the GST tax reform, the tax prices were hiked and thus, the telecommunication companies are bound to charge it from the final customer. With the proposition of GST taxation system in India, the prices of call rates and internet expenses went higher.
- Economical Car Buying
From the day GST has been introduced by the Indian government, buying cars is not a dream now! You can easily buy your dream car at cheap rates in comparison to before because of GST. Earlier, VAT and excise duty used to make the car purchase a challenging task. However, with the new tax rates announced under GST for cars, it became easier for the customers to buy their dream car without paying extra taxes and other charges.
- Impact on Jewellery Purchase
With the reform of GST, it was already predicted that it would impact the jewellery purchase significantly. Buying jewellery is challenging one these days because of the 6% tax levied on the customers. From 2% to directly 6% tax rate will automatically impact the purchase of jewellery, especially for the common man.
Hence, this what GST offers to the common man. Apart from the above-mentioned points that are jot down under “What GST means for the common man?” online purchase became expensive too for the customers simply because GST brought e-commerce under the tax slab.
Who are the Top GST Consultants in Delhi?
Moving forward, let’s take a look at the Top GST Consultants in Delhi who can guide and assist you throughout the process of GST filing.
- Consult Avenue
GST, one of the most essential aspects of any business these days. Whether you are running a small scale or large-scale business, GST has become a necessity for the businesses to run smoothly.
Any wrong advice, you can have severe impacts on your business! Therefore, choosing the right consultancy for GST registration is a challenging task. You need an expert or a professional to assist you at every step and Consult Avenue team does that with care.
From GST registration, return filling to Direct Tax Consultancy, you can get in touch with the experts at Consult Avenue. At just ₹ 999, you can file GST registration for your firm. So, contact the experts and resolve all the queries relate to GST.
- Aggarwal Anshoo & Associates
It’s a chartered accountant firm which deals in all fields of accounts, finance, investment consultancy and GST registration service as well. To get the best services at an advanced mode, you can contact the professional at Aggarwal Anshoo and Associates. For all your particular needs, their team is there to help you out.
- Kailadevi Corporate Services
At Kailadevi Corporate, you will get effective accounting, taxation, financial management and advisory services simply at your ease. For Goods and Service Tax (GST) related to any query, you can contact the professionals of Kailadevi corporate.
- Saurabh Kakkar & Associates
Saurabh Kakkar and Associates is a leading accountancy firm in Delhi. If you are searching for Goods and Service Tax (GST) services, then you can get in touch with the expert team members at Saurabh Kakkar and Associates for all your queries.
- Oportuno Corporate Solutions
Oportuno Corporate Solutions is for all your business assistance. From GST, Income tax, ROC and various other auditing services, Oportuno Corporate solution is an ideal place to connect!
Therefore, these are the top GST consultants in Delhi that you can connect with if you are looking for help!
To conclude, GST Registration is significant for businesses in the long run. GST has enabled the Indian government to handle comprehensive and unified tax structure, which is easier to administer. Initially, it was challenging to implement, but, with the right assistance, it’s not that difficult too!