Procedure for registration under GST
- First fill the Part- A of Form GST REG-01. Give your PAN, Mobile Number Email ID, and Submit the form.
- Then the PAN is verified on the GST portal. The mobile number and E-mail ID are verified with OTP(one time password)
- Then you will receive an application reference number on your mobile and Email.
- Then fill Part-B of Form GST REG 01 and specify the application reference number received. You should attach all these necessary documents as listed below.
- Submit the photographs of the proprietor, partners, managing trustee, committee etc and authorized signatory.
- Constitution of the taxpayer as to the partnership deed, registration certificate or other proof of constitution.
- You have to give proof of principal and additional place of business i.e if business is in own premises then you have to give any document in support of ownership of that property e.g latest property tax receipt, copy of electricity bill etc. As for Rented Lease you have to give rent/lease agreement along with owner’s documents like latest property tax receipt etc.
- Bank account related proof is to given by scanned copy of the First page of bank pass book or bank statement.
- Authorisation forms for each authorized signatory, upload authorization copy or a copy of resolution of managing committee or board of directors in the prescribed format
People who have to register in GST
- Person making for inter-state taxable supply
- Casual Taxable Person
- Persons who are required to pay tax under reverse damage
- Non-resident taxable persons
- Persons who are required to deduct tax under section 37
- Persons who supply goods or services on behalf of other registered taxable persons whether as a agent or otherwise
- Input service distributor
- Persons who sells other goods and services other than branded services, through electronic commence operator.
- Every electronic commence operator
- An aggregator who supplies services under his brand name or his trade name
- Such other person or class of persons as may be notified by central government or State government on the recommendation of the counsel.
Penalties under GST
An offender has to pay a penalty amount of tax evaded, i.e 100%, subject to minimum of Rs.10,000/-. The person who is helping the person to evade this is also liable for punishment. the amount extending to Rs.25,000/-
If a person is convicted under section 73(1) then he shall be punished with penalties as follows. If the tax evaded is between 25 lakhs and 500 lakhs then 1 year imprisonment and fine, if the tax evaded is between 50 lakhs to 250 lakhs then 3 years imprisonment and fine, if the tax evaded is more than 250 lakhs then 5 years imprisonment and fine.
Advantages and Disadvantages of GST
- GST is a transparent tax and reduces indirect taxes
- In GST there will be no hidden taxes and the cost of doing business will be lower.
- As the prices will come down which will help the companies as consumption will be increased by people.
- Separate taxes for goods and services, which is the present taxation system,
- in GST when all the taxes are integrated, then taxation burden will be split equally between manufacturing and services.
- GST will be levied on the final destination of consumption of VAT and not on various points.
- It will help build a transparent and corruption free tax administration.
- GST id backed by the GSTN, which is a fully integrated tax platform to deal with GST.