Know About What is GST and GST Online Registration Process?
The Government of India has obtained approval from the Parliament to implement the Goods and Services Tax (GST) in the country. Along with this, the state legislatures have also given approval for GST, due to which now from July 1, 2018, all things in the country will be subject to a uniform tax. This has become possible only with the advent of GST. Earlier, different taxes were levied on the purchase of essential things in India, but now with the implementation of GST Bill India, the same tax will have to be paid on everything purchased and every service in India.
Today more than two years have passed since the implementation of GST, but even today there are many people who do not have proper knowledge about GST. In this article, you are being given complete information about what is GST Bill, and how to make GST Bill.
What is GST?
GST means Goods and Services Tax which is called GST- ‘Good and Services Tax’ in English. It is an indirect tax of India, which has been implemented for the supply of goods and services. As per the GST rules, all goods and services will be subject to a common tax. This would simply mean that in place of VAT, Excise and Service Tax, only one tax would be applicable. The common citizens of the country will benefit more from this, if they buy any kind of goods anywhere in the whole country, then they will have to pay the same price.
Earlier, different types of taxes were levied on things, but now you have to pay the same price for every item in whichever state you live in. For example, if you buy a car in Delhi, then you have to pay a different price as compared to other states, but with the advent of GST, the common citizen will get things at a reasonable price.
Types of GST & Its Full Form:
- CGST ‘: Central Goods and Service Tax’
- SGST ‘: State Goods and Service Tax’
- IGST ‘” Integrated Goods and Service Tax’
CGST, SGST:- If something is being manufactured in one state, and it is sold in that state only. Then only CGST and SGST tax will be levied on that item. This would mean that a similar tax would be levied on the goods by the Central Government and the State Government.
According to IGST, if an item is being manufactured in one state, and that item is being sent to another state for sale, then IGST is levied on that item. This tax is collected by the central government.
Benefits of GST:
- According to the Constitution of India, the central and state governments can levy tax on all goods and services according to their own.
- If the factory located in one state manufactures the product and sends it to sell in another state, then it has to pay many types of taxes to both the states, due to which the price of that product would increase significantly. With the implementation of GST, the price of the product will be normal.
- According to the National Council of Applied Research, there can be a jump of one to two and a half percent in the country’s GDP due to the introduction of GST.
- With the implementation of GST, a common citizen can buy any item in any part of the country at the same price, this benefit is available in all the products under the GST tax cell.
- The entry of GST has made tax tracking in the economy better than before.
- This payment of GST works on the digital method, so the consumer paying tax on goods and services will always be aware of the amount.
- Earlier, citizens had to pay many types of taxes, but now they will not have to worry about paying many taxes, now they have to pay only one tax.
- Buying items under GST will be much cheaper than before.
- Every time you buy goods and services, you can easily see the tax on all those goods from the receipt received from them.
- GST has made the online process very simple and easy.
- With the implementation of GST in the present time, any trader can easily enter the business.
- The GST system has made it easy to record transactions in every small, big business.
- Every small business whose annual income will be from 40 lakhs to 75 lakhs. They will have to pay lower rates through GST.
Disadvantages of GST
- For full operationalization of GST, infrastructure will be required, for which there is a lack of necessary infrastructure in all the states.
- The companies which are doing business in their state will have to register in all the states where they want to do business. This process creates a bit of complexity, which was not necessary in the earlier system.
- Items that are used by millions of people on a daily basis, including premium health care, insurance renewal carrier services, etc., may have the potential to be costly.
- Till now petrol and petroleum products have been kept out of GST.
Documents Required for GST Bill Registration:
- RC copy of the company
- Business bank statement
- Certificate of Registration of MOA or AOA
- Electricity bill which is not older than 3 months
- Landline bill
- NOC if the property is for rent
- Passport size photo
GST Online Registration Process:
First of all you have to go to the official website of GST Portal https://www.gst.gov.in/.
- The home page of the website opens in front of you.
- In this home page, you have to click on Register Now option given below Taxpayers.
- The registration form opens in front of you.
- In this form, you have to fill all the information asked like: – Name, State, District, Business Name, PAN Number, Email and Mobile Number etc.
- An OTP comes on the email and mobile number.
- You have to enter this OTP.
- After this you get the temporary reference number, save this number and keep it safe.
- After this, you have to go to the portal of GST and click on the option of Register Now.
- Now you reach a new page, in this page you have to select the temporary number.
- After this, go ahead by entering the reference number PRN number.
- OTP will come on your mobile number and go ahead by entering it in the box with register email and mobile number.
- A status application will appear in front of you, in which you have to click on the option of edit icon.
- After this you have to scan and upload the relevant documents.
- After filling all the information, you have to click on Verify.
- A message comes on your mobile number, this is the message of your GST registration successful.
- In this way you are successfully registered in GST.