GST Advisory

GST (Goods and Services Tax) India - A Comprehensive Guide

Introduction to GST in India

The Indian government implemented GST on July 1, 2017, as an indirect tax reform, replacing various domestic taxes. This single tax applies across the country, generating revenue and promoting business ease

Latest GST Updates – Effective from 18th July 2022

The GST Council’s 47th session in Chandigarh saw revisions to the tax structure, affecting food items like paneer, rice, wheat, jaggery, curd, and lassi. Other items, like meat, fish, puffed rice, dried makhana, and meslin flour, also faced a 5% GST rate. Hotel and banking services were no longer exempt, with 12.5% and 18% GST rates, respectively. Mango products, including pulp, were also brought under the 12% GST bracket.

Recent GST Updates by GST Committee:

The GST Committee is discussing reforms to improve the system, including lowering GST rates on essential commodities, simplifying compliance processes, and introducing a GST compensation cess for revenue stability after 2025

GST rate on textiles and garments increased from 5% to 12% effective January 1, 2023.

Tax rate for works contract service providers increased from 5%/12% to 18% effective January 1, 2022.

GST Amnesty Scheme extended to 30 November 2021, allowing taxpayers to regularize compliance without penalty or interest.

Taxpayers can revoke cancelled GST registration up to September 30th, 2021, under Section 29(2) clause (b) or (c) of CGST Act.

In addition to these changes, the GST Committee has also been discussing a number of other potential reforms, including:

Lowering the GST rate on essential commodities: Reduce consumer living costs.

Simplifying the GST compliance process: Facilitates businesses' GST compliance.

Introducing a GST compensation cess: Ensure consistent revenue for states post-2025 GST compensation period

GST Committee to discuss future reforms, likely implemented in near future.

Criteria for GST Registration

Businesses with sales exceeding ₹40 lakhs must register for GST and obtain a GSTIN, while those below are encouraged to voluntarily register.

Purchase taxes won't be refunded, like ₹28,000 for a 1 lakh purchase at 28% tax rate.

GST registration takes 2-6 working days; digital signature and request must be transmitted to department.

Recent GST Updates by GST Committee:

Offers a shield to your personal assets against the company's liabilities.
An LLP has its own legal existence, separate from its partners.
LLP agreements allow for a seamless change in ownership.
LLPs with capital less than ₹25 lakhs and turnover below ₹40 lakhs need no audits.
Register your LLP from anywhere through Fincto.io.

Benefits of GST

The Goods and Services Tax (GST) is a comprehensive indirect tax in India, introduced on July 1, 2017, replacing multiple taxes like central excise duty, service tax, and state-level VAT. Implementing GST marked a significant milestone in the Indian tax system, benefiting businesses, consumers, and the economy. Lets explore some of the key advantages of GST:

Elimination of Cascading Effect

GST eliminates the cascading effect of taxes by allowing businesses to claim input tax credit (ITC) for purchases against sales taxes, preventing double taxation and making products more affordable for consumers.

Name Approval for your LLP

We verify the availability of your chosen name and secure it for your LLP. We handle all regulatory requirements to ensure your name is unique and legally acceptable.

Draft Your LLP Agreement

Craft a comprehensive LLP agreement that defines mutual rights and responsibilities amongst partners and between the LLP and partners, establishing a solid foundation for your business.

Obtain Your LLP Incorporation Certificate

Finalize your LLP registration by submitting all necessary forms and documents. Upon approval, you'll receive your incorporation certificate, setting you up for business success.

Benefits of GST

Elimination of Cascading Effect

Streamlining of Taxation

GST simplifies tax structure, simplifies compliance, fosters a common market, and removes state-level entry taxes, facilitating goods movement and improving supply chain efficiency.

Boost to Ease of Doing Business

GST simplifies business in India by simplifying tax laws, attracting investors, and reducing complexity, while offering an online portal and simplified return filing process.

Increase in Tax Collection and Compliance

GST broadens tax base, increases government collection, encourages businesses, improves compliance, and curbs tax evasion, promoting transparency and accountability.

Seamless Input Tax Credit

GST allows businesses to claim input tax credit on purchases, promoting supply chain efficiency and reducing tax burden, encouraging investment and growth.

Facilitating E-commerce and Startups

GST simplifies tax compliance for e-commerce businesses by reducing liabilities and increasing startup registration thresholds, promoting entrepreneurship and reducing tax liabilities across states.

Higher Threshold for Small Businesses

GST increases registration threshold, exempting small businesses with annual turnover below ₹40 lakhs from GST obligations, enabling growth and compliance

Boost to Exporters

GST simplifies export process, increasing competitiveness in global market, and increasing exports and foreign exchange earnings for India

Reduction in Tax Evasion

GST Network monitors transactions, detects tax evasion, and generates real-time data, improving tax compliance and government revenue

GST Login Process in India

GST login process requires valid GST number and Indian mobile number.
Follow these simple steps to log in:

Step 1

Visit GST portal and complete initial login step

Step 3

Enter GST and mobile numbers for third step of Goods and services login.

Step 5

Step 2

Step 4

Wait for OTP to proceed with GST portal login.

Step 6

Final GST verification login redirects to GST dashboard for easy access to returns, invoices, and other relevant information.

Access your GST account securely and manage tax-related activities using user-friendly login process for compliance and convenient filing tracking.

GST Rate Changes from 1st March 2023

CBIC announces GST rate revisions, effective March 1, 2023, following 49 Council recommendations. CBIC announces GST rate changes, reducing pre-packaged Rab and pencil sharpeners' rates from 18% to 12%, allowing exemptions on liquid jaggery and sharpeners. Notification No. 04/2023-Central Tax introduces exemption of GST on Rab, liquid jaggery, from 18% to zero, and revised rate on pre-packaged and labelled form from 18% to 5%.

1

Notification No. 03/2023 reduces GST rate on pencil sharpeners from 18% to 12%, reclassifying them under HSN code 8214.

2

Notification No. 02/2023 amends Notification No. 13/2017 to include courts and tribunals under reverse charge mechanism.

3

Notification No. 01/2023 extends GST exemption to services provided by Central or State Government bodies, including NTA for entrance examinations in educational institutions.

Assistance with GST Verification by Fincto.io

Fincto.io offers a secure GST verification process for businesses, allowing them to obtain their GST number, file returns, and resolve queries. Their experienced team assists start-ups with compliance requirements, making the process hassle-free.

Conclusion

GST is a transformative tax reform simplifying India's taxation structure, benefiting businesses and promoting economic growth. Fincto.io offers expert assistance and a user-friendly platform for accurate information.

Why Choose Fincto?

Fincto provides a streamlined, completely online solution for private limited company registration, which includes:

DIN and DSC for two Directors
Drafting of MoA & AoA
Registration fees and stamp duty
Incorporation certificate (COI)
Company PAN and TAN
Zero balance current account
GST Registration
EPF & ESIC Registration

Trust Fincto to simplify your business formation process, enabling a seamless transition from idea to a legally recognized entity. Get ready for a well-informed, growth-oriented entrepreneurial journey with Fincto.

Understanding Key Terms

Amendment

A modification to the existing provisions of a corporation's articles of incorporation

DSC (Digital Signature Certificate):

Issued by certifying authorities for electronic document signing.

Board of Directors

The elected governing body responsible for a corporation's operation. Certificate of Incorporation: The document filed to create a corporation

DIN (Director Identification Number):

A unique identification number for directors. Dissolution: The process that legally ends a corporation's existence

Incorporation

The act of forming a corporation under specific jurisdiction laws

Limited Liability Company (LLC)

An entity with limited personal liability and pass-through taxation

Limited Personal Liability

Protection from the debts and claims against a company

Name Reservation

The process to secure exclusive use of a corporate name for a specific period

Registered Office

The statutory address of a corporation

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