Get Complete Guide for GST Registration Online – Eligibility Process & Fees

If you are going to start your business related to goods and services then applying for GST Registration is the very first thing that needs your attention. So if you are unclear about the eligibility criteria, online GST registration procedure, fees structure, and anything then this article will be a complete guide for you. Let’s understand its meaning and importance firstly.

GST registration is the process in which we apply for goods and products business registration as a normal taxpayer only when the turnover exceeds the amount of Rs 20 lakhs only. The threshold limit in North Eastern & Hilly States is about Rs 10 lakhs. If you are carrying your business without the registration then you will be considered as the defaulter in the eye of law and you will be liable to pay a heavy penalty. Any business whose turnover exceeds the limit of Rs 20 lakhs are supposed to apply for GST registration. Businesses that are registered under the pre-GST regime such as Excise, Service Tax, VAT, will also be registered under GST.

Businesses that are mandatory to be registered Under GST irrespective of the turnover: -

·         Every business that is already registered under the VAT, Excise, Service Tax, etc.

·         A casual taxable person,

·         Input service distributor,

·         Non-resident taxable payer,

·         If a business is transferred to any other party then the transferee will be responsible for registering his business w.e.f the date of the transfer.

·         A person who supplies via e-commerce aggregator.

What Are The Documents Required For GST Registration?

·         Valid bank account number & details from India,

·         Valid Permanent Account Number(PAN)

·         Valid phone number & email address,

·         Prescribed documents & information on mandatory fields of the registration application,

·         Address of the Place of the business,

How To Hire Expert for GST Registration Procedure?

You may get started with the online GST registration procedure via the Government GST online portal or GST Seva Kendra. We can provide you a step-by-step guide on how to register under the GST. Swarit Advisors is the best consulting firm where experts are 24*7 hr available to help you. You need to contact us through the phone number or the email so that we can approach you.

What is the Fee for the GST Registration?

There is no registration fee for GST, you simply need to log in to the online GST portal and follow the steps required for the GST registration process. In a business gets fail to register under GST then he has to pay the penalty of about 10% of the amount due, subject to a minimum of Rs 10,000. If the tax evasion is intentional then the penalty will be liable to 100% of the due tax amount.

If a business is carried out in a different state then separate registration for each state is required. There is a scheme called GST Composition Scheme, where firms can pay tax as a fixed percentage of their turnover. It is a convenient tax scheme for small and medium enterprises. A dealer who deals only in the intra-state of goods and service of restaurant sector may avail composition scheme, or who don’t supply non-taxable goods or not an e-commerce operator, or pays tax at normal rates, or is not a manufacturer of ice-cream, tobacco or pan masala, etc. The floor rate of tax for the CGST &SGST should not be less than 1%. And the turnover of an enterprise must be upto 1.5 crore Rs, whereas in the case of the North-Eastern States or Himachal Pradesh it should be 75 lakh Rs only.

If you have any queries in your mind or need to hire a professional then you are at the right platform where we provide guidelines to avoid technical issues while applying online for the GST Registration. We are just a call away from you.

Source url - http://swaritadvisors.olanola.com/blog/43930463120/Get-Complete-Guide-for-GST-Registration-Online-Eligibility-Proce

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Reverse charge Mechanism under GST

Under normal routine of work, the GST is collected from the receiver and paid by the supplier to the Government on the goods and services he supplies. Under Reverse Charge Mechanism (RCM) as part of GST, the buyer or the receiver of the goods and services pays the supplier the price of the product/service minus the GST. This tax is then paid to the Government, direct by the receiver.

It is important to note that the tax paid under reverse charge mechanism is eligible for input tax credit which means that the taxpayer who has paid the reverse tax can avail input tax credit pertaining to condition that the goods or the services will be used or is being used for his business.

Which are the scenarios were RCM is applicable?

A.    The Reverse charge mechanism, as per the Sec 9(4) of CGST Act applies in a scenario where the supplier is not part of GST registration in India which means that the supplier is not a registered GST supplier but the buyer has done his GST registration online. Hence, the buyer or the receiver does not pay the supplier instead he pays it direct to the Government. Since the buyer or the registered receiver of the goods and services is paying under reverse charge mechanism, he has to prepare a self-invoice against the purchase. The receiver is liable to pay both the Central GST (CGST) and State GST (SGST) in case of intra-state trade and Integrated GST (IGST) in case of Inter-state trade.  The important point to note here is that the taxpayer who is required to pay tax under RCM has to register compulsorily with GST following all the prescribed GST registration procedure. RCM will apply in either of the following cases mentioned below:-

·         Supply of either a good or a service is being done

·         Supply should be with respect to taxable goods and services

·         The supply has to be done by an unregistered supplier (URD).

·         It is compulsory for the receiver of the goods and services to have done his GST registration online

·         The supply needs to be intra-state supply

B.    It is applicable for all e-commerce operators who supply services. In such case the e-commerce platform needs to collect the tax from its customers rather than the service providers and deposit it with the Government.

C.   The Central Board of Excise and Customs has listed about 10 items in which case the receiver needs to pay GST under RCM. The goods include unpeeled cashew nuts, bidi wrapper leaves, tobacco leaves, silk yarn, raw cotton, lottery supply, used vehicles as well as confiscated goods, waste, scrap and Priority Sector Lending certificate.

GST Act exempts payment of tax under RCM for purchases of Rs. 5000/- or less per day from unregistered suppliers. Hence only for expenses above Rs. 5000/- on a daily basis will the registered receiver need to pay tax under reverse mechanism. The registered tax payer needs to keep a check on his daily expenses and P/L accounts to not fail paying tax under RCM.

RCM does not apply for items like salary and wages; electricity; interest; car fuel and government fees. It applies for items like – audit fees, rent, commission payments, office maintenance, gift expenses, repairs and maintenance, office and vehicle maintenance, legal fees, consultancy fees etc.

Source url - http://swaritadvisors.blog.fc2.com/blog-entry-43.html

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