Introduction
The GST means good services tax. This taxation has come into existence on 1st July 2017. As before there were various taxes but such as excise tax, entertainment tax, service tax, vat tax, customs tax, central service tax, the concept wan one nation and various tax But now after implementing GST tax there is one nation one tax. GST tax means the tax which is paid by the various Businessman on there particular goods or services which they sell to their customers.
Here the goods indicate that the Businessman who manufacturer or trade with the physical goods which can be tangible. And the service indicates that value provider means the doctor providing service to the patient, lawyer to their clients in such way the professional who provide the service to his customers in exchange for monetary terms that he has to pay tax on the income generated from his service. As there are three types of GST :- IGST, SGST, CGST.
As SGST and CGST are paid combined when you trade under the state. IGST is paid when you trade with another state.
SGST – State Goods Service Tax.
CGST – Central Goods Service Tax.
IGST – Integrated Goods Service Tax.
Who can take a GST number
While giving you a GST number firstly your state has been checked that from which state you belong to the then they also check that from which category you belong. Normals category or from special category. As one state is divided into two categories
Normal category
Those people belong to the normal category who’s the previous turnover is more than 40 lakh.
Special category
The people who belong to a special category should have more than 20 lakh turnover of the previous year.
Why GST number is required?
Without GST you can’t pay tax and also you can’t transport your goods to a different state as you can’t trade with other state and also with another country.
While taking GST number
While taking the GST number or while registration you have to decide which type of GST number you should take for your Business. As the GST number will according to your Business type also it will depend upon the way you choose to take. As there two ways for GST registration – Composition scheme and Normal scheme
Composition scheme
This scheme is mostly for the trading company. If you want to take the composition scheme then your turnover should not be more than 1.50 cr. After taking this scheme you can’t supply your goods to the other state. And also the turnover should not go more than 50 cr for services providing company. Here you will no ITC available. You can’t charge GST charge to the customer. If you have then your GST registration through the composition scheme. Then on your bill, the composition scheme will be mentioned. The composition scheme is more suitable for a small trader or sole porpertership. In this scheme, there is no need to show the account of every bill to the government.
Normal scheme
This scheme is most suitable for private limit, partnership firm, LLP etc. Under this scheme, you can able to sell your product and service to the customer in another state. Here ITC will be available. You can also charge GST to the customer. As the GST is payable on earned profit. You have to give an account of every bill to the government.
How to apply for GST number and required documents
You can apply by the respective website As after applying you will receive the ARN i.e application registered number. As to keep track through the GST portal after applying. As if there is documents submission or while filling form then you will be informed by SMS.
Required documents For individuals
- Pancard.
- Adhar Card.
- Address proof for Business.
- Address proof residence.
- Photo.
- Mobile number.
- Email ID.
HUF (Hindu undivided family)
- Pan card of HUF.
- Pan card and adhar card of Karta.
- Photo of the owner.
- Address proof of principle.
- Mobile number.
- EMAIL ID.
Partnership firm
- Pan card of partnership Business.
- Pan card of partners.
- Adhar card of partners
- hotos of partners.
- Mobile number or partners
- Email id of partners.
- Partnership deed.
- Letter of authorization.
- Copy of resolution. (passed by BOD or committee.
LLP (Limited Liability Partnership)
- PAN of LLP firm.
- Pan card of partners/directors.
- Adhar card of partners/directors.
- Photos of partners/directors.
- Mobile number of partners/directors.
- Email id partners/directors.
- Certificate of incorporation LLP.
- LLP Agreement.
- Letter of authorization.
- Copy of resolution (passed by BOD or by committee.
Company registration
- Pan of company.
- Pan card of promotors /director.
- Adhar card of promotors /director.
- Mobile number of promotors /director.
- Email id of promotors /director.
- Photos of promotors /director
- Other id proofs.
- Certificate of incorporation of Company.
- Articles of association.
- Memorandum of association.
- Letter of authorization.
- Copy of resolution.
This document is the same for three types of business. If the principal place for Business is own.
-Electricity bill(100 kb)
-Legal ownership documents (1 Mb)
-Municipal khat copy. (100 kb)
-Property tax receipt. (100 kb).
Business information documents if consent.
-Consent letter from owner(100kb)
-Electricity bill of the owner. (100kb)
-Legal ownership documents 1 MB.
-Property tax receipt. (100kb).
-Municipal khat copy/NOC 100 KB.
-Assessment abstract (100 kb)
If principles place of Bussiness is rented or leased.
-Rent or lease agreement 2 Mb.
-Electricity bill of the owner. (100kb)
-Legal ownership documents 1 MB.
-Property tax receipt. (100kb).
-Municipal khat copy/NOC 100 KB.
-Assessment abstract (100 kb)
Bank details
Cancelled cheque.
Copy of bank statement.
Copy of the first page of passbook.
As the documents related to the business place is the same for all form of business
How the Gst number is formed:
GST NUMBER
10AAAAA1234B1ZV
1 – state code.
AAAAA1234B- pan number
1 – entity number of same pan.
Z-By default
V-check sum digit.
Conclusion
As this is all about the GST . As before getting into legalities, you should have all knowledge about it why it is required or how it works. So as from above details you’re cleared about GST. So this is why GST s important to every businessman if he ignores it then many penalties may charge on it.
Reference Link-