Overview

Filing the Goods and Services Tax (GST) compliance can be a time-consuming process for business owners. Starters’ CFO offers expert GST services, including registration, return filing, compliance review, and advisory. Our team stays updated on GST regulations to help clients maintain compliance. Creating services to specific business needs, we prioritize timely and accurate assistance, allowing businesses to focus on core operations. Choose Starters’ CFO for reliable, professional, and personalized GST services – contact us today to streamline your business through the intricacies of GST regulations.

What Is GSTIN?

GSTIN, which stands for Goods and Services Tax Identification Number, is a unique 15-digit identification number allocated to every taxpayer (primarily dealer or supplier or any business entity) registered under the GST regime. GSTIN is public data, and technology has made it convenient to verify GSTIN, which is crucial before doing any business dealings.

What is in the GSTIN?

• First 2 Digits: The first 2 digits of the 15-digit GSTIN depicts the state code.
• Next 10 Digits: The next 10 digits are the PAN number of the person or the business entity.
• Thirteenth Digit: The thirteenth digit is based on the number of registrations done by the firm within a state under the same PAN.
• Fourteenth digit: The fourteenth digit will be the alphabet “Z” by default.
• Last Digit: The last digit is known as the check code to detect errors and can be represented by either a number or an alphabet.

What is a GST Certificate?

The GST certificate is issued by the CBIC (Central Board of Indirect Taxes and Customs). It is proof of registration under the GST system and is compulsory for businesses to obtain before they can begin trading and collecting taxes. It is also used to monitor the taxes paid by companies. This certificate comprises a 15-digit alphanumeric number issued to the registered taxpayer. This number is called the GSTIN (Goods and Services Tax Identification Number). The GSTIN is unique and is used to identify the taxpayer and their transactions.

Component of GST

There are 4 components of GST. They are CGST, SGST, IGST, and UTGST. The CGST is an indirect tax charged and collected by the Central Government on intra-state supplies. Such supplies do not include alcoholic liquor for human consumption. This tax is managed by the Central Goods and Services Act, of 2017. The SGST is an indirect tax charged and collected by the State Government on intra-state supplies. Such supplies do not include alcoholic liquor for human consumption. This tax is managed by the State Goods and Services Act (SGST), 2017. The IGST is an indirect tax charged and collected by the Central Government on the inter-state supply of goods or services. Such supplies do not include alcoholic liquor for human consumption. This tax is managed by the Integrated Goods and Services Tax Act, of 2017. Finally, the UTGST is an indirect tax charged and collected by the Union Territory on the intra-state supply of goods or services. Such supplies do not include alcoholic liquor for human consumption. This tax is managed by the Union Territory Goods and Services Act (UTGST), 2017

Who needs a GST?

• Businesses associated with the supply of goods with turnover in an FY exceeding Rs.40 lakhs.
• Businesses associated with the supply of services with turnover in an FY exceeding Rs.20 lakhs.
• Every individual who was registered under a previous law (i.e., Excise, VAT, Service Tax etc.) Non-resident persons creating taxable supply also known as casual taxable person
• Persons who make taxable supply on behalf of other taxable persons whether as an agent or otherwise
• Input Service Distributor – ISD
• TCS Deductor (Tax Collected at Source) and TDS Deductor (Tax Deducted at Source)
• A Person selling goods or services via an e-commerce operator
• Every e-commerce operator who is needed to collect tax at the source
• A Person engaging in interstate supply of goods

Objectives of GST

One Nation, One Tax”: One Nation, One Tax” is the primary aim of the GST. GST replaced plenty of indirect taxes under the previous tax regime. The primary advantage of one single tax is that every state will have the same rate for a specific product or service. Tax administration is much easier with the Central Government deciding the rates and policies.

End of indirect taxes: One of the interesting objectives of GST was the inclusion of a majority of the indirect taxes. India had numerous former indirect taxes, like Value Added Tax (VAT), service tax, Central Excise, and many more, which used to be levied at various supply chain stages. One unified and centralized tax on both goods and services was missing.

Mandatory GST Registration

Compulsory registration under GST is done via the GST Common Portal. It is a web-based platform enabling businesses to register and file all their tax returns. Companies can also use the portal to monitor their GST payments and check their refunds. Once a business is registered under GST, it is necessary to comply with all the GST rules and regulations. This includes filing GST returns, maintaining records of all transactions, paying taxes, and submitting returns on time. Businesses that fail to follow the rules and regulations may be liable to pay penalties with interest.

Documents Required

Main documents required:

• PAN card
• Proof of business registration
• Proof of identity
• Address proof of persons in charge
• Business address proof
• Bank account statements
• GST Registration Process

GST Registration Steps.

• STEP-1: Application at GST Common Portal.
• STEP-2: Submission of Documents at GST Common Portal.
• STEP-3: Acknowledgement of Application.
• STEP-4: Verification of the application and approval.
• STEP-5: Issue of GST Registration certificate.