India

In India any small business with turnover less than 20 lakh can voluntarily register for GST even though it is not compulsory by law. Voluntary India GST registration has its own advantages. SMEs can widen their market by registering through Ecommerce sites. There are two models in which in Ecommerce business model work

  • Ecommerce Registration India on an established portal such as Flipkart, Amazon, Paytm (For Products), For Services you can register on Company That offer those services such as (Urban Clap, Just Dial) for services
  • Start your e-commerce platform by creating your own e-commerce portal (website)

Registering your company in Flipkart, Amazon (For Products), for Services you can register on Company that offer that services such as (Urban Clap, Just Dial, fiver) for services.

What are the components of GST?

India GST will have 3 tax components, which includes a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where centre and state will levy GST on all entities, i.e., when a transaction happens within a state. Inter-state transactions will attract the Integrated Goods and Services Tax (IGST), to be levied by the centre, i.e., when a transaction happens one state to another.

What is the input tax credit?

Input tax credit lets you reduce your tax you have already paid on inputs and pay the remaining amount at the time of paying tax.

You pay taxes on the purchase when a product is purchased from a registered seller, and when you sell the product, you too collect the tax. With input credit, you can adjust the taxes paid at the time of purchase with the amount of tax on sales (output tax) and pay the balance liability of tax, i.e. tax on sale minus tax on the purchase.

Who needs a GST Registration?

Every business or corporation that are involved in the buying and selling and good of services have to register for GST. It is mandatory for companies whose turnover is more than Rs.20 lakhs (for supply of services) and Rs. 40 lakhs (for supply of goods) yearly to register for a GST.

All businesses making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, example Agents and Brokers.

Also, as per the recent notification, e-commerce sellers/aggregators need not register if total sales are less than Rs.20 lakhs.

What is the GST tax rates?

Items that are considered basic necessities come under exempt list i.e. they are not taxed.

Household necessities and life-saving drugs etc. are taxed at 5%.

Products like computers and processed food are taxed at 12%.

Hair oil, toothpaste and soaps, capital goods, industrial intermediaries and services are taxed at 18%.

Luxury items are taxed at 28%.

Mandatory documents for Online GST registration

The list of documents required for registration of GST for various business are as follows:

Proprietorship

PAN Card and address proof of proprietor

LLP

PAN Card of LLP

LLP Agreement

Partners’ names and address proof

Private Limited Company

Certificate of Incorporation

PAN Card of Company

Articles of Association, AOA

Memorandum of Association, MOA

Resolution signed by board members

Identity and address proof of directors

Digital Signature

The following can be shown as proof of address of a director: –

Passport

Voter Identity Card

Aadhar Card

Ration Card

Telephone or Electricity Bill

Driving License

Bank Account Statement

Add what works as identity proof, one can use a PAN Card, Aadhar Card as identity proof. For address proof, any of the directors can show their voters ID, passport, telephone bill, electricity bill and telephone bill.

Preparation of GST application

One of our GST representatives will collect all the required documents and process the GST application through the iCFO platform.

Application Filing

Once all the documents are collected, the application will be processed and filed. Then immediately the ARN number will be issued.

GST Registration Certificate

The GST registration certificate and GSTIN will be issued upon verification of GST application and other mandatory documents by the GST officer. Be aware that no hard copies of the certificate will be issued, and the GST registration certificate can be downloaded from the GST Portal.

What is a GST Return?

A GST Return is a document containing details of income that is required to be filed as per the law with the tax authorities. Under the GST law, a taxpayer has to submit two returns on a monthly basis and one such return annually. All returns have to be filed online. Please note that there is no provision for revising the returns. All invoices for the previous tax period that went unreported must be included in the current month.

A GST Return filing is a return document that contains details of the income of the taxpayer. It has to be filed with the GST administrative authority. The document is used tax authorities to calculate the tax liability of a GST taxpayer. A GST Return Filing form has to include the following details.

Output GST (On sales)

Sales

Input tax credit (GST paid on purchases)

Purchases

For filing a GST Return, you need to have GST compliant sales and purchase invoices attached

Penalties for failure to GST registration

As per the Section 122 of the CGST act, in India, there is a direct penalty for all those taxable persons who fail to register for GST.