What is Goods and service tax (GST)?
In India, Goods and Services Tax (GST) has been implemented from 1st July 2017. For all business entities in India need to conduct a study of the various changes in the Goods and Services Tax (GST) Model Law. It will involve a comprehensive study of GST, identification of changes to any long-term contracts, conducting tax-code mapping for all transactions and a review of the existing level of compliance.
Eligibility for GST Registration
- GST is applicable on supply. Therefore, GST Registration is compulsory, in case combined supply is more than 19 lacs, then it is required to pay the applicable GST, except in case of North East India. In North East, GST is applicable over the turnover of Rs.9 Lacs in a year.
- The existing dealer who is registered under the existing VAT/ Service tax / Excise or any other Act has to complete the migration process to GST. After migration, a provisional registration number will be granted. After this final registration will be granted within six months.
- Companies engaged in export of services are also required to complete the GST migration process and obtain a GST Registration number to be entitled to tax exemption on the export of services outside India.
- In case of inter-state sales, GST Registration is mandatory irrespective of turnover.
Benefits of GST Registration
- A registration certificate will be given to every registered entity as a supplier of goods or services.
- In India, the main advantage of GST is the ease of doing business. You will get 100% input tax credit paid on the purchase of goods from any of the states in India.
- A registered entity shall be legally authorized to collect tax on the sale and pass the credit of taxes paid on the goods supplied to purchasers or recipients.
Rates under GST will depend upon the type of goods and services. Currently, the slab rates are 5%, 12%, 18% and 28%. The rate for gold is 3% and 0.25% for rough stones.
CGST & SGST
GST will have a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST). Inter-state transactions will attract the Integrated Goods and Services Tax (IGST) which will be levied by the center.
GST Advisory Services Includes following
- Business Model Optimization for hassle-free GST compliance
- GST Input & Output tax consulting
- Develop and provide multi-jurisdictional GST regulations, Implementation, and training
- Developing business transformation
- Advisory on configuring CRM systems as per GST Act & Rules.
- Training your finance team for GST Transaction flow
- Developing legal, finance and tax structures in your organization
- Government relations support& Compliance management
- Support Companies with audits by government / GST Authority
- Appeal before GST Appellate authority
- Annual GST Compliance report to Board of directors