In today's world it is considerably easier to setup or start a company in India. Now a days it needs lesser time frame to start your business in India compared to yester years. It takes only less that 5 weeks to register a company in any part of India.
Everything You Need To Know About Goods and Services Tax (GST)
Goods and Services Tax (GST), in simple words, means instead of paying taxes at every level in the form of VAT, excise duty, sales tax, customs, luxury tax and service tax, you pay a single tax at the end of the supply chain.
In order to supply goods and products in India, it is mandatory to do GST registration.
Registration ensures safe taxation and also lets you enjoy various benefits. Multiple input taxes paid at every stage build up and cause cumbersome interaction with tax authorities. This can be avoided by adding value for each stage and a final tax being paid by the customer to the last dealer from whom the product is being bought or services were taken.
First, find out if GST registration will be under compulsory or voluntary registration for your specific case.
Check the documents required to register for GST and arrange those properly
Check the documents by a professional to avoid rejection
Upload the documents on GSTN website along with application form
On being evaluated and being approved the GST registration usually takes only a few days to get processed. The registration certificate will be granted accordingly.
In spite of any exemption or remedies, the following cases will need GST registration compulsorily even if turn-over is less.
There are only two cases where GST registration is not required at all even if the turnover is more than 20 lakh. The two cases are as follows:
Any supplier of goods or services that are exempt from being taxed or can’t be taxed even if the turnover is more than 20 lakhs.
An agriculturist cultivates land by himself or by employing others is also exempt from GST if he supplies the land produce.
There are so many compliances under GST and if not complied properly, then there is a provision of high penalties. Here are three main compliances: