Predominant Gst registration and its importance in India

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Predominant GST registration and its importance
in India

• Here, in this blog we have discussed about the
  predominant GST registration and their importance
  to be known by each and every person

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Predominant GST registration and its importance
in India

• GST stands for goods and service tax. The one
  hundred and twenty second amendment bill of the
  Indian constitution introduced the National Goods
  and Service Tax from 1st July 2017. This is
  officially known to be the constitution act,
  2016. Consequently, the prominent reason behind
  the introduction of predominant GST is the tax
  burden that falls both on companies and the
  customers. Regarding to the current tax system,
  there are several taxes added at each and every
  stage of the supply chain, without taking credit
  for taxes that are paid at the earlier stages

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As a result, the end user cost does not clearly
shows the actual cost of the product that are
sold and purchased and how much tax was applied.
This structure remains quite complex and
inefficient one. Moreover, Gst will integrate
more taxes into single unit, which can be applied
to the sales and the purchases of the goods and
services, with deductions for taxes paid at the
earlier supply chain stages. This structure
remains easier to be tracked by both government
and the business people.
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Predominant tax system

• The indirect tax system in India is extremely a
  complex one. It has been felt that this tax
  structure and the general legal framework reduced
  many entrepreneurs and also hinders the growth of
  many business. India, being a single country
  facing many internal barriers to administrate
  trade, commerce and the business of the dominant
  tax structures. Likewise, VAT implementation also
  helped a lot in preparing the groundwork that is
  essential for bringing out the next level of tax
  reforms called Goods and service tax (GST).
  Moreover, It has been seen as an efficient tax
  system and this affects the structuring of the
  various operations. Thus, the industries are
  required to analyze the provisions of the GST Law
  and its impact in their business.

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Predominant GST filing

• Specifically, predominant GST law implies
  obtaining a unique number from the concerned tax
  authorities for the registered business entity
  for collecting tax on behalf of the government.
  In fact, Section 22(3) of the CGST Act, says that
  where a business carried on by a taxable person
  registered is transferred, the Transfee or the
  successor would be liable to be registered with
  effect from such transfer or succession and he
  will have to obtain a fresh registration with
  effect from the date of such transfer or
  succession.

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Section 22(4) states that if a business is
transferred as an order of a High Court, or
otherwise pursuit to 1.            Sanction of
scheme 2.            Arrangement for
amalgamation 3.            De-merger of two or
more companies, As a result, the transferee would
be liable to obtain registration from the date on
which the Registrar of Companies issues a
certificate of incorporation giving effect to
such order of the High Court or Tribunal.
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Why you will pay GST?

• Chiefly, it is important to note that there are
  two categories of businesses that comes under the
  predominant GST. The first one is that you have
  to register the business alone. The other
  category is that you will have to register as
  well as pay taxes. These categories are decided
  based on the turn over which is being calculated
  using the GSTIN. Similarly, The GST act in the
  clause (3) of the defining section 2 defines all
  the aggregate value of all the taxable supplies,
  excluding the values of inward supplies on which
  tax is payable by a person on inverse charge
  basis.

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However, it also exempt supply of goods and
services and services of inter-state supplies
having the same permanent account number to be
computed all over India. It excludes Central tax,
State tax, Union Territory tax, integrated tax
etc. If the Aggregate Turnover is over 19 lakh
then the business is eligible to register on the
GST Portal. As soon as, if the aggregate turnover
exceeds 20 lakh, the business becomes liable to
pay GST. The aggregate turnover has been kept
lowered for the north-east states at 9 lakh for
registration and 10 lakhs for paying taxes.
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Predominant Registration Rules under Goods and
Services Tax

• PERSONS WHO HAVE TO REGISTER
• It is important to know who is liable to register
  under the Goods and Services Tax. Provisions
  regarding Registration are contained in Section
  22 to Section 30 of the Central GST Act, 2017.
• According to Section 22 of the Act, the following
  categories of people have to register under the
  Goods and Services Act.

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• Each and every supplier whose annual turnover is
  Rs. 25 lakh have to register under the Goods and
  Services Act, 2017.
• In the case of a special category state, supplier
  who has an annual turnover of Rs. 10 lakh have to
  register themselves under the GST Act.
• The persons who are previously enrolled under
  different laws prior to the commencement of this
  act also have to get themselves registered.
• Any person who has taken over the business from
  the other person of the registered company also
  have to register GST.

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• PERSONS WHO DO NOT HAVE TO REGISTER

• Under Section 23, the Central Government gives
  exemptions to some category of people who do not
  want to register GST
• Any person who is involved in the supply of Goods
  and Services do not have to get themselves
  registered under the Goods and Services Act,
  2017.
• Any agriculturist who is involved in the supply
  of the product which does not involve the
  cultivation of land.
• The government on the advice of the council from
  time to time through notices may specify the
  category of persons who may be exempted from
  getting themselves registered.

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• COMPULSORY REGISTRATION
• According to Section 24 of the Goods and Services
  Act, 2017 there is a certain category of people
  who have to register compulsory
• Any person who is making an inter-state taxable
  supply have to register compulsory.
• Consequently, Persons who are required to pay GST
  under reverse charges.
• The non-resident taxable person making a taxable
  supply.
• Persons who make taxable supply of goods and
  services for other taxable people as an agent or
  otherwise are also required to get themselves
  registered.
• Any other person who is notified by the
  government on the recommendations of the Gst
  Council.

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AMENDMENT TO REGISTRATION

• According to Section 28, any person can inform
  the concerned officer to make some changes in the
  information presented to him at the time of
  registration, through a proper procedure, the
  officer concerned have the power to either accept
  the changes or reject the changes but he cannot
  reject the changes without giving the other
  person a chance to speak for himself.

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Documents required for GST registration
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• PAN Card of the Business and Applicant
• Valid Indian Phone Number and Email address
• Proof of Place of business
• Any document in support of the ownership of the
  premises such as Latest Property Tax Receipt or
  copy of Electricity Bill or the Copy of the valid
  Rent / Lease Agreement/Consent letter (as
  applicable)
• Valid bank account number from India
• Other details such as list of goods and services,
  Proof of appointment of Authorized Signatory
  ,Authorized Signatories photo (soft copy)
• For Companies and LLPs, it is important to have
  digital signature (class 2 digital signature) of
  the person who is authorized to sign the GST
  application
• Incorporation certificate

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