Goods and Service Tax was implemented in India on 1 July 2017. It has brought a new financial revolution in the country. It subsumed all other existing taxes like sales tax, Service Tax, and Excise Duty which the companies had to comply with these laws varied from state to state. With GST, every state follows and implements only one law for taxation issues.
GST is levied at the point of sale and not production and at each stage of value addition, GST will be levied, hence it enables the buyer to bear only those charges that are levied by the last supplier of the entire supply chain.
It supports people to acquire more affordable goods and boosts the gains and purchasing power of the entire Indian economy.
GST acts as a catalyst to provide a boom to the Indian start-ups thereby empowering them to grow as the GST unwinds.
Step 1: First of all, go through the website www.gst.gov.in and log in here
Step 2: Now, click on the service tab
Step 3: Pick the new registration option
Step 4: A form will open, fill the part-A of the form with information related to your Permanent Account Number, address, phone number, state, name of a business, and more
Step 5: Upload the needed documents according to your business type
Step 6: Fill the part B of the form
Step 7: You will receive the application Reference Number through email or SMS
Step 8: After completing the above procedure the GST officer will verify your application.
All startup companies, whose turnover exceeds INR 25 Lakhs, are eligible to enroll for GST. In north-eastern states, entities are comparatively exempted with eligibility requirements being set as a turnover exceeding INR 10 Lakhs.
If the entity trades in non-taxable products or the business of exporting products to foreign lands, GST registration is compulsory.
It incorporates all entities which are dealing in the export of software and had been untaxed previously.
An entity supplying goods and services to another state within India require to register itself for GST regardless of the size of turnover.
Those companies that were previously registered under those laws which are subsumed by GST such as VAT registration, Service tax registration, are given provisional registration for six months. These companies need to get GST registration after their six months provisional period.
GST is bringing the concept- one nation, one tax. Earlier SMBs were limited due to the fear of tax burden. GST has eliminated all these obstacles and encourages startups to look beyond the intra-state business.