GST is an Indirect Tax which has replaced many Indirect taxes in India. GST is a comprehensive, multistage, destination-based tax that is levied on every value addition. The Tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. Inter-state sales are chargeable to Integrated GST.

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.

GST (Goods and Services Tax) is the biggest indirect tax reform of India. GST is a single tax on the supply of goods and services. It is a destination based tax. GST will subsume Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc.

Elimination of Cascading Effect of Taxes:

Under the GST administration, the final tax would be paid by the consumer for the goods and services purchased. The cascading of taxes will be prevented by GST as the whole supply chain will get an all-inclusive input tax credit mechanism. Cascading tax effect, also known as tax on tax, occurs when a good is taxed on every stage of its production, until it is sold to the final consumer.

Abolition of Multiple Layers of Taxation:

One of the advantages of GST is that it integrated different tax lines such as Central Excise, Service Tax, Sales Tax, Luxury Tax, Special Additional Duty of Customs, etc. into one consolidated tax. It prevents multiple tax layers imposed on goods and services.

Creation of a Common National Market:

GST gave a boost to India’s tax to Gross Domestic Product ratio that aids in promoting economic efficiency and sustainable long – term growth. It led to a uniform tax law among different sectors concerning indirect taxes. It facilitates in eliminating economic distortion and forms a common national market.

Common Portal:

Since technology will be used heavily to drive GST, taxpayers will have a common portal (GSTN). The procedures for different processes like registration, tax payments, refunds, returns, etc., will be automated and simplified. Whether it is the filing of returns, filing of refund claims, payment of taxes, or even registration, all processes will be done online via GSTN. The verification of input tax credit will be done online too, and input tax credit across the country will be matched electronically, thereby turning the process into an accountable and transparent one. As a result, the process will also be much quicker since the taxpayer will not have to interact with the tax administration.

Regulation of the Unorganized Sector under GST:

It has created provisions to bring unregulated and unorganized sectors such as the textile and construction industries to name a few under regulation with continuous accountability.

Simple and easy online procedure:

The entire process of GST (from registration to filing returns) is made online, and it is super simple. There is no need to visit department for every work.

Central Goods and Service Tax (CGST):

Under GST, CGST is a tax levied on Intra State supplies of both goods and services by the Central Government and will be governed by the CGST Act.

State Goods and Service Tax (SGST):

Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the State Government and will be governed by the SGST Act.

Integrated Goods and Services Tax (IGST):

Under GST, IGST is a tax levied on all Inter-State supplies of goods and/or services and will be governed by the IGST Act. IGST will be applicable on any supply of goods and/or services in both cases of import into India and export from India.

These three types of GST are levied based on the aspect of inter-state and intra-state transactions. These three types of GST are levied based on the aspect of inter-state and intra-state transactions.

Which persons are required to register under GST?

Compulsory Registration:

These persons are required to compulsorily get registered under GST:

1. 1. Interstate suppliers
2. 2. Persons required to deduct TDS under GST
3. 3. Persons required to deduct TCS under GST
4. 4. Casual Taxable persons
5. 5. Non-resident taxable persons
6. 6. Input Service Distributors
7. 7. Persons taxable under the reverse charge basis
8. 8. Agent or Principal.
9. 9. Every E-commerce Operator who provides a platform to suppliers to make supply through it
10. 10. Online Service Providers providing service from outside India to a non-registered person in India.
11. 11. Suppliers who supply goods through E-commerce operator who is liable to collect tax at source.

For Sale of Goods

States	Aggregate Turnover
Normal Category States	>40,00,000/-
Special Category States	>20,00,000/-

For Providing Services

States	Aggregate Turnover
Normal Category States	>20,00,000/-
Special Category States	>10,00,000/-

Aggregate turnover here means aggregate value of all taxable supplies, exempt supplies, exports of goods and/or services and inter-State supplies of a person having the same Income Tax Permanent Account Number (PAN), to be computed on all India basis.

Special Category States are Pondicherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand.

The following details the types of GST registration:

Normal Taxpayer

This category of GST registration applies to taxpayers operating a business in India. Taxpayers registering for normal taxpayer do not require a deposit and also provided with unlimited validity date.

Composition Taxpayer

To register as a Composition Taxpayer, the individual should enrol under GST Composition Scheme. Taxpayers enrolled under the Composition Scheme can pay a flat GST rate. However, the taxpayer would not be allowed to claim the input tax credit.

Casual Taxable Person

Any taxpayer establishing a stall or seasonal shop shall register under Casual Taxable Person. To register as a casual taxable person, the taxpayer shall pay a deposit equal to the amount of GST liability. The liability should match the active registration periods. The registration remains active for a period of 3 months.

Non-Resident Taxable Person

The category non-resident taxable person applies to individuals located outside of India. The taxpayers should and supplying goods or services to residents in India. To register as a casual taxable person, the taxpayer shall pay a deposit equal to the amount of GST liability. The liability should match the active registration periods. The registration remains active for a period of 3 months.

GST Registration Documents for Individuals and Sole Proprietors:

• Owner’s PAN card
• Owner’s Aadhaar card
• Owner’s photograph
• Proof of address
• Bank account details

GST Registration Documents for Partnerships and LLPs:

• Partnership deed
• PAN cards of partners involved
• Photographs of partners involved
• Address proof of partners involved
• Aadhaar card of any authorised signatory

GST Registration Documents for Hindu Undivided Families (HUFs):

• HUF’s PAN card
• Karta’s (patriarch of family) PAN card
• Owner’s photograph
• Bank detail
• Business’ principal address proof

GST Registration Documents for Companies:

• Company PAN card
• The Ministry of Corporate Affairs incorporation certificate
• Memorandum/ Articles of Association
• Signatory’s appointment proof
• Signatory’s PAN card
• Signatory’s Aadhaar card
• PAN card of all directors
• Address proof of all directors
• Bank details
• Business’ principal address proof

• A copy of the club or society’s registration certificate
• A copy of PAN card of the club or society along with that of associated partners or promoters.
• A copy of bank account statement/crossed cheque/passbook’s first page.
• Proof of registered office’s address, that can include utility bills, documents of legal ownership/municipal khata copy for premises owned by the society or club. In the case of rented premises, a rent agreement as well as NOC from the premise’s owner.
• Authorisation letter signed by authorised signatory/signatories

The step-by-step procedure that individuals must follow to complete GST Registration is mentioned below:

• Visit the GST portal (https://www.gst.gov.in/).
• Click on the ‘Register Now’ link which can be found under the ‘Taxpayers’ tab
• Select ‘New Registration’.
• Fill the below-mentioned details:
• Authorisation letter signed by authorised signatory/signatories
• Under the ‘I am a’ drop-down menu, select ‘Taxpayer’
• Select the respective state and district.
• Enter the name of the business.
• Enter the PAN of the business.
• Enter the email ID and mobile number in the respective boxes. The entered email ID and mobile number must be active as OTPs will be sent to them
• Enter the image that is shown on the screen and click on ‘Proceed’.
• On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes.
• Once the details have been entered, click on ‘Proceed’.
• You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN.
• Visit the GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu.
• Select ‘Temporary Reference Number (TRN)’.
• Enter the TRN and the captcha details.
• Click on ‘Proceed’.
• You will receive an OTP on your email ID and registered mobile number. Enter the OTP on the next page and click on ‘Proceed’.
• The status of your application will be available on the next page. On the right side, there will be an Edit icon, click on it
• There will be 10 sections on the next page. All the relevant details must be filled, and the necessary documents must be submitted. The list of documents that must be uploaded are mentioned below:
• • Photographs
  • Business address proof
  • Bank details such as account number, bank name, bank branch, and IFSC code.
  • Authorisation form
  • The constitution of the taxpayer.
• Visit the ‘Verification’ page and check the declaration, Then submit the application by using one of the below mentioned methods:
• By Electronic Verification Code (EVC). The code will be sent to the registered mobile number
• By e-Sign method. An OTP will be sent to the mobile number linked to the Aadhaar card.
• In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).
• Once completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID
• You can check the status of the ARN on the GST portal