It is a destination based mostly tax on consumption of products and services. GST levied on all stages from the producing of product to consumption by final shopper. On each stage tax applies and registered dealer takes input credit of taxes paid at previous stages for the aim of offset. solely further value in product are going to be chargeable for tax and price bear by the ultimate shopper.
Registration below merchandise and repair tax can offer numerous benefits to the business like wrongfully recognized as provider of products or services, and it reduces the chance of double taxation.
A person isn’t allowed to assert any decrease as input tax till his business is registered underneath GST. solely registered person having GSTIN for his business is eligible to assert credit of GST that’s already paid on purchases by him or charge taxes on provide of merchandise.
A person having various businesses during a specific state could get a definite registration document for every business severally, subject to conditions as is also prescribed by GST law.
Yes, after we got registration certificate from GST department. it’ll be treated as permanent unless submitted, cancelled, delayed or withdrawn.
Key Features & Benefits
Ease of Doing Business
Goods and Services are going to be taxed with each CGST and SGST. just in case of interstate trade of products and services, IGST are going to be levied. IGST are going to be collected by Central and distributed with the State and this can result in a seamless national market with less compliance. Zero Rated Exports and free movement of products and services can facilitate the companies particularly retail and trade.
Common Procedures
The procedures for refund of taxes and registration of taxpayers are common, whereas the formats of legal document are uniform. The assets also will be common, as can the system of assortment of product or services additionally to the timelines for every activity, thereby making certain that taxation systems have larger certainty.
Removing Cascading Tax Effect
An important good thing about the introduction of GST are going to be the removal of the cascading tax result. In straightforward words, “cascading tax effect” means that a tax on tax. beneath this regime, the service tax paid on input services can’t be set out against output VAT. Under GST, the input diminution will be availed swimmingly across the spectrum of products and services, so reducing the tax burden on the top user and removing cascading result.
Composition Scheme
Composition theme could be a straightforward and simple theme below GST for taxpayers. little taxpayers will get eliminate tedious GST formalities and pay GST at a set rate of turnover. unremarkably this theme are often opted by any payer whose turnover is a smaller amount than Rs. 1.5 crore
Common Portal
Since technology are used heavily to drive the GST on-line method, taxpayers can have a standard portal (GSTN). The GST registration on-line procedures for various processes like registration, tax etc.