Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services.

It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.

Goods and services are divided into five different tax slabs for collection of tax:

However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system.
There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory tax rate for most goods was about 26.5%, Post-GST, most goods are expected to be in the 18% tax range.

The tax came into effect from 1 July 2017 through the implementation of the One Hundred and First Amendment of the Constitution of India by the Indian government. The GST replaced existing multiple taxes levied by the central and state governments.

Who can register under GST?

GST being a tax on the event of “supply”, every supplier needs to get registered.

The aggregate turnover includes supplies made by him on behalf of his principals, but excludes the value of job-worked goods if he is a job worker.

But persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax or an agriculturist, to the extent of supply of produce out of cultivation of land are not liable to register under GST.

In GST, if the supplier supplies outside the State, he is required to take registration irrespective of the size of his turnover.

Nature of Registration

In GST registration, the supplier is allotted a 15-digit GST identification number called “GSTIN” and a certificate of registration in corporating there in this GSTIN is made available to the applicant on the GSTN common portal.

The first 2 digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the next two digits are for entity code, and the last digit is check sum number.

Registration under GST is not tax specific which means that there is a single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses.

Relaxation of GST for certain categories of business:

Goods/Services	Exemption
Supplier of handicraft goods, supplier of services, and supplier of job work services	If the turnover of the handicraft supplier is less than specified threshold limit, they will not be required to register, even if they supply such goods outside the State. In such cases they will also not be required to obtain registration as a casual taxable person in other States for making supply of the handicraft goods.

Also, small Suppliers of services, including job workers (except in relation to jewellery, goldsmiths’ and silversmiths’ wares) whose aggregate turnover is less than Rupees 20/10 lakh limit are exempted from registration, even if they supply services outside the State.

Furthermore, persons supplying services through e-commerce operators are also entitled to avail the Rupees 20/10 lakh threshold exemption for registration.

In GST Framework, broadly, three different types of taxes (GST) are levied as follows:

Benefits of GST Registration

• Easy Management
• Assured collection
• Psychological Effect
• Luxury vs. Necessary Goods
• Economy Growth
• Low cost

Documents required for GST Registration:

In case of Partnership Firm

• Partnership Deed
• Photo of Partner/Authorised Signatory
• Letter of Authorisation/ Copy of Resolution passed by BoD/ Managing Committee and Acceptance letter
• Legal Ownership Document
• Municpal Khata copy if owned.
• Property Tax Receipt
• Rent/Lease Agreement , if rented
• NOC from Landlord
• Email Id/Mob No.

In case of Limited Liability partnership/PVT Ltd Company