The Goods and Services Tax (GST) is the outcome of more than two decades of discussion and debate on the right way to introduce a single tax across India that makes it simpler for businesses to operate, and consumers to buy, while also ensuring that the government gets a fair share of taxes. While there are several such examples in different countries, this one is special because of its scale: It’s not just one state or even a cluster of states but an entire country.
As per recent updates from the Ministry of Road Transport and Highways, once GST implementation is completed in all States, it will be accessible as Central VAT on road transport services under composition scheme.
Any person who offers services relating to transportation by road will have to register themselves with the central government entity (that has jurisdiction over your registered address) or state government entity if you’re based in a state other than Assam, Meghalaya, Mizoram or Tripura.
What is GST-ARN Status?
GST stands for Goods and Services Tax. It is a tax on goods and services supplied in India you can get GST Status with the online portal.. It is a single tax which covers both supply of goods and services. All goods and services but tobacco, liquor and crude oil are taxable under GST. It is a tax levied on the supply of goods and services. GST will be levied at each stage of the supply chain, ultimately paid by the consumer.
It is a destination-based tax which means that tax will be paid where the end consumer is located. GST is not an additional tax but rather a replacement of various indirect taxes levied by the Central and State governments. GST subsumes Central Excise Duty, State VAT, Service Tax, etc. It is a money earning exercise by the government that has been designed to improve India’s business environment.
What is the difference between GST and VAT?
The Goods and Services Tax (GST) is the outcome of more than two decades of discussion and debate on the right way to introduce a single tax across India that makes it simpler for businesses to operate, and consumers to buy, while also ensuring that the government gets a fair share of taxes.
While there are several such examples in different countries, this one is special because of its scale: It’s not just one state or even a cluster of states but an entire country.
The major difference between the two is that while VAT is applied on the sale of goods, GST will be levied on the sale of goods and services. Under VAT, the seller pays tax on the value of goods or services being provided whereas under GST, the seller collects tax on the value of goods or services being provided and then deposits the collected tax to the government.
How does the GST registration process work?
Anyone who is providing any taxable goods or services in India are required to get themselves registered under GST. This is applicable to both Indian and foreign traders. However, non-residents who are only supplying goods and not receiving any payment in India are not required to register under GST e way bill login.
A trader can choose to be registered under any of the following GST registration types: If you are an Indian company and have a single place of business and are engaged in only one activity, you can choose to be registered under the composition scheme. When you choose to be registered under the composition scheme, you will have to pay tax at a rate of 5% on your total turnover.
The benefit of being a composition dealer is that you will not be required to maintain records of your sales, expenses, and the amount of tax that you collected from your customers. This scheme is available only to manufacturers or traders who are producing goods in India.
Where can you register for GST?
As a GST supplier, you have to be registered in the State where you have your place of business. Place of business means the place where you are conducting your business.
You are required to register wherever you are doing business in India. If you are a partnership firm, then the place of business is where the partnership is registered.
If you are an unregistered partnership, then it is the place where the majority of partners are residing. If you are an Indian company, then it is the State where your company is registered. If you are a non-resident who is only supplying goods and not receiving any payment in India, you are not required to register under GST. You can choose to be registered under the E-Commerce (Excise Duty) Rules, 2018.
How do you know which state you’re registered in?
As explained above, if you are a GST supplier, then you have to be registered in the State where you have your place of business. Place of business means the place where you are conducting your business. You can only know which state you are registered in, by logging into your GSTIN account. Once GST is implemented, you can check your GSTIN account to know which state you are registered in and where you have to pay taxes and file returns.
Conclusion
We hope that this article has helped you understand how GST works, the difference between VAT and GST, and how the GST registration process works. We recommend that you check the latest updates as the GST rules may change once it is fully implemented in India.
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