Articles

Why is GST Registration essential in India?

by Ananya Nair Accounting and Legal Services

GST ensures that taxpayer services such as registration, returns, and even compliance are clear-cut and straightforward. Hence, it allows total transparency to all. Every business owners have to file their monthly returns. All the businesses (small or large) supplying goods and services whose turnover exceeds Rs 40 lakh in a financial year are required to register as a normal taxable person.

Goods and Services Tax (GST) came into effect on 1st July 2017, t   he full form of GST is Goods and Services Tax. The Government from any country required money for its development and other works and taxes are a major source of income for a Government.

Types of GST (Goods and Services Tax)

The purpose of GST is to reduce the cascading effect of tax on the cost of goods and services and create a common, cooperative and undivided Indian market to make economy stronger and powerful. That's why GST system is combined in Central excise duty, additional excise duty, service tax, State VAT entertainment tax etc.

The 4 types of GST in India are: SGST (State Goods and Services Tax) CGST (Central Goods and Services Tax) IGST (Integrated Goods and Services Tax) UGST (Union Territory Goods and Services Tax).

  • Integrated Goods and Services Tax (IGST)
  • State Goods and Services Tax (SGST)
  • Central Goods and Services Tax (CGST)
  • Union Territory Goods and Services Tax (UTGST)

Integrated Goods and Services Tax (IGST): Under GST, Integrated Goods and Services Tax (IGST) is a tax levied on all Inter-State supplies of goods and/or services and will be governed by the IGST Act. Also as the name suggest, IGST will be applicable on any supply of goods and/or services in both cases of import into India and export from India.

State Goods and Services Tax (SGST): SGST are part of GST, Goods and Service Tax. CGST expands as Central Goods and Service Tax and SGST is the short form of State Goods and Service Tax.

Central Goods and Services Tax (CGST): CGST is a tax charged on intrastate supply of goods and services by the central government and is governed by the CGST Act, 2017. Taxes collected under Central Goods and Service tax will be the revenue for central Government.

Union Territory Goods and Services Tax (UTGST): The full form of UTGST is Union Territory Goods and Services Tax. UTGST is applicable on the goods and services supply that takes place in territories of India including Chandigarh, Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, Andaman and Nicobar Islands, Delhi, and Puducherry.

Structure of GST

In India GST is organized in such a way that all the necessary services and some food items are placed in the lowest bracket, and the other luxury goods and services and de-merit goods are placed in the highest bracket. The GST council has set the four-tier structure at 5 per cent, 12 per cent, 18 per cent and 28 per cent.

Conclusion:

The GST registration can be done online on the official website of the portal - https://gst.gov.in. If you are a businessman and want to understand the basic process of GST Registration online, you can get in touch with financial expert near you.

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About Ananya Nair Advanced   Accounting and Legal Services

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Joined APSense since, June 5th, 2018, From New Delhi, India.

Created on Jun 30th 2021 05:16. Viewed 173 times.

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