On 2017 the Government of India introduced GST (Goods and Services Tax) as India's best and biggest tax. GST applies all over India by both the Central Government and State Government. But as an entrepreneur, it isn't easy to understand the in-depth concept and structure of GST that an entrepreneur must be aware of it. In this article, we discuss the essential things of GST that you must know for your own business and GST Registration in India.
About GST Registration As per the GST regime, it is mandatory to get GST Registration for those businesses whose turnover is more than Rs. 40 Lakhs (Rs. 10 lakhs for hill states and the North-East States). If any businesses in India found without the GST registration, then it will be an offence, and heavy penalties will apply. If any business in India applies for GST, then a 15-digit number will be assigned to the business which is known as GSTIN (Good and Services Tax Identification Number). There are three components of GST, and you can check the same from below:
Following are some benefits of GST Registration that you must know for your own business:
Once the GST registration is done for the business or entity, then the next step is to identify the tax rate which needs to be charged on the goods or services which are to be supplied, and you can check the tax rates by visiting the official website of GST. The rate of tax on goods is mentioned with its HSN (Harmonious System of Nomenclature) code, and this code is given to that specific good. Whereas, the tax rate for services is mentioned with its SCN code. For an accurate tax of GST rates, correct HSN or SAC code is mandatory during return filing. Charges of GST on every invoice After the GST registration, the GST should charge on every invoice issued along with the GST number, and it is compulsory to mention GST number by every taxpayer providing the taxable services. In case of the intra-state supplies, the supplier has to charge SGST (State Goods and Services Tax)& CGST (Central Goods and Service Tax) and for the inter-state supplies on the respective invoice. GST payments and filing GST Returns Once the GST registration is over, then the last step is to pay the tax and file the GST returns on the official website of GST. All the taxpayers must file returns monthly and pay the taxes monthly. But in the case of small businesses whose turnover is up to Rs. 5 crores can file the returns quarterly, but the payment of tax has to be made monthly. As per the New Return System, there is only one return GSTR-1 and GSTR-2 annexures GST ANX-1 and 2. Conclusion After the implementation of GST, it becomes boon for all the entrepreneurs, and in India, small enterprises or businesses are the essential things to boost the economy of India. Before the GST, there are various taxes which creates instability in the business, but after the GST regime, all the taxes come under GST, which helps all types of businesses in India.
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7/6/2023 11:35:29 am
When you’re deciding what form of business you want to run, remember that in the UK there are three main options you can choose from. Depending on what you go for, you’ll have different records to keep and different taxes to pay. If you have any questions or would like to discuss your needs further,
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