Goods and Services Tax
Goods and Services Tax (GST)
Goods and Services Tax (GST) is a proposed system of indirect taxation in India merging most of the existing taxes into single system of taxation.
"Goods and Services Tax" would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the central and state governments. Goods and Services Tax would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. This method allows GST-registered businesses to claim tax credit to the value of GST they paid on purchase of goods or services as part of their normal commercial activity. Taxable goods and services are not distinguished from one another and are taxed at a single rate in a supply chain till the goods or services reach the consumer. Administrative responsibility would generally rest with a single authority to levy tax on goods and services.
The introduction of Goods and Services Tax (GST) would be a significant step in the reform of indirect taxation in India. Amalgamating several Central and State taxes into a single tax would mitigate cascading or double taxation, facilitating a common national market. The simplicity of the tax should lead to easier administration and enforcement. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%, free movement of goods from one state to another without stopping at state borders for hours for payment of state tax or entry tax and reduction in paperwork to a large extent.
General Information:
1. Who is an existing taxpayer?
An existing taxpayer is an entity currently registered under any of the Acts as specified below:-
- 1. Central Excise
- 2. Service Tax
- 3. State Sales Tax / VAT (except exclusive liquor dealers if registered under VAT)
- 4. Entry Tax
- 5. Luxury Tax
- 6. Entertainment Tax (except levied by the local bodies)
2. What does the word ‘enrolment’ under GST system portal mean?
Enrolment under GST means validating the data of existing taxpayers and filling up the remaining key fields.
3. Do I need to enroll for GST?
All existing taxpayers registered under any of the Acts as specified will be transitioned to GST. Enrolment for GST will ensure smooth transition to GST regime. The data available with various tax authorities is incomplete and thus fresh enrolment has been planned. Also, this will ensure latest data is available in GST Database without any recourse to amendment process, which is the norm to update the data under tax statutes today.
4. Why do I need to enroll myself as a user on the GST System Portal?
GST System portal has been created for this purpose as no paper based enrolment will be allowed.You need to enroll as a user on the GST system portal, so that you may be enabled as a registrant for GST Compliance requirement viz. return filling, tax payment, etc.
5. What information should be readily available with me before I begin to enroll with GST?
Before enrolling with GST System Portal, you must ensure to have the following information/ documents available with you:-
- 1. Provisional ID received from State/Central Authorities;
- 2. Password received from the State/Central Authorities;
- 3. Valid Email Address;
- 4. Valid Mobile Number;
- 5. Bank Account Number
- 6. Bank IFSC
Documents:
a. Proof of Constitution of Business :
i. In case of Partnership firm: Partnership Deed of Partnership Firm (PDF and JPEG format in maximum size of 1 MB)
ii. In case of Others: Registration Certificate of the Business Entity (PDF and JPEG format in maximum size of 1 MB)
b. Photograph of Promoters/ Partners/Karta of HUF (JPEG format in maximum size of 100 KB)
c. Proof of Appointment of Authorized Signatory (PDF and JPEG format in maximum size of 1 MB)
d. Photograph of Authorized Signatory (JPEG format in maximum size of 100 KB)
e. Opening page of Bank Passbook / Statement containing Bank Account Number of (Account Number), Address of Branch, Address of Account holder and few transaction details (PDF and JPEG format in maximum size of 1 MB)