Goods and Service Tax (GST)

Goods and Service Tax in India

Goods and Service Tax (GST)

Goods and Service Tax (GST) is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, the only value addition will be taxed and burden of tax is to be borne by the final consumer. GST will be implemented in India from 1st July 2017.

The GST would replace the following taxes:

(A) Taxes currently levied and collected by the Centre:
  1. Central Excise Duty
  2. Duties of Excise (Medicinal and Toilet Preparations)
  3. Additional Duties of Excise (Goods of Special Importance)
  4. Additional Duties of Excise (Textiles and Textile Products)
  5. Additional Duties of Customs (commonly known as CVD)
  6. Special Additional Duty of Customs (SAD)
  7. Service Tax
  8. Central Surcharges and Cesses so far as they relate to supply of goods and services

(B) State taxes that would be subsumed under the GST are:
  1. Local Sales Tax (State VAT)
  2. Central Sales Tax
  3. Luxury Tax
  4. Entry Tax (all forms)
  5. Entertainment and Amusement Tax (except when levied by the local bodies)
  6. Taxes on Advertisements
  7. Purchase Tax
  8. Taxes on Lotteries, Betting and Gambling
  9. State Surcharges and Cesses so far as they relate to supply of goods and services

The GST Council shall make recommendations to the Union and States on the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed in the GST.


GST Registration

Liability for Registration in GST
Region Aggregate Turnover
Liability to Register Liability for Payment of Tax
North East India Rs 9 Lakhs Rs 10 Lakhs
Rest of India Rs 19 Lakhs Rs 20 Lakhs

If you are a regular dealer or a composite tax payer, you need to do the following:

  1. Fill Part-A of Form GST REG-01. Provide your PAN, mobile number, and E-mail ID, and submit the form.
  2. The PAN is verified on the GST Portal. Mobile number, and E-mail ID are verified with a one-time password (OTP).
  3. You will receive an application reference number on your mobile and via E-mail.
  4. Fill Part- B of Form GST REG-01 and specify the application reference number you received. Attach other required documents and submit the form. Following is the list of documents to be uploaded –
      1. Photographs: Photographs of proprietor, partners, managing trustee, committee etc. and authorized signatory
      2. Constitution of taxpayer : Partnership deed, registration certificate or other proof of constitution
      3. Proof of principal / additional place of business :
          1. For own premises – Any document in support of the ownership of the premises like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
          2. For rented or leased premises – copy of rent / lease agreement along with owner’s (landlord) documents like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
      4. Bank account related proof : Scanned copy of the first page of bank pass book or bank statement
      5. Authorization forms: For each authorized signatory, upload authorization copy or a copy of resolution of managing committee or board of directors in the prescribed format.
  5. If additional information is required, Form GST REG-03 will be issued to you. You need to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.
  6. If you have provided all required information via Form GST REG-01 or Form GST REG-04, a certificate of registration in Form GST REG-06 will be issued within 3 days from date of receipt of Form GST REG-01 or Form GST REG-04.
  7. If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05.

Registration Forms for Other Stake Holders

Form No. Form Type
Form GST REG-07 Application for Registration as Tax Deductor or Tax Collector at Source
Form GST REG-08 Order of Cancellation of Application for Registration as Tax Deductor or Tax Collector at Source
Form GST REG-09 Application for Allotment of Unique ID to UN Bodies/Embassies
Form GST REG-10 Application for Registration for Non Resident Taxable Person

Note :-
Goods and Services Tax (GST) laws and rules will be finalized by the end of March and GST rates may be finalized by month of May or June.

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