services tax is one of the different tax reforms in the history of independent
India. The government has launched GST portal for existing VAT, service tax,
and excise taxpayers for smooth transition system.
GST is one of
the indirect tax on the supply of goods and services from the manufacturer to
consumer. GST combines all the taxes
into one and subsumes all the indirect taxes. This is done for all the central
level and state level taxes. The nature of the GST invoice India is that it
clubs almost all indirect taxes that are levied by Central and State
Governments and taxes only the final customers.
Things to know about GST
1. Under GST, Only one
registration number per state called GSTIN i.e. Goods and Service Tax Identification
2. There are three taxes under GST;
Central Goods & Service Tax (CGST), State Goods & Service Tax (SGST),
Integrated Goods and Service Tax (IGST).
3. Central Goods and Service
Tax (CGST) to replace Central Excise, Service Tax, Additional Excise Duty,
Special Additional Customs Duty (SAD), Countervailing Duty (CVD) along with
various cess and surcharges
4. Taxes which are not subsumed
under CGST are Basic Customs Duty, other import duties, excise duties on
petroleum products and tobacco products
5. State Goods and Service Tax
(SGST) – taxes merged with SGST are Value Added Tax, Entry Tax, Purchase Tax,
Luxury Tax, Entertainment Tax, Octroi, and Various Surcharges & Cess
6. Taxes which are not subsumed
under SGST are Stamp Duty, Electricity Duty, Vehicle Tax, and Royalty, State
taxes on petroleum and alcoholic products and Entertainment Duty levied by
7. Integrated Goods and Service
Tax (IGST) will replace Central Sales Tax for all inter-state transactions
8. Under GST, Goods and
Services share the same taxes. GST Is
applicable to whole of India including Jammu and Kashmir
9. Under GST there is no
concept of Tax on Tax like VAT computed on item price + Excise duties
10. GST is a destination based
tax i.e. taxes will go to the state where the goods are consumed.
11. In India we have adopted
dual GST i.e. the Central Government and the State Government will be levying
and collecting taxes due to constitutional provisions in our constitution.
12. Under GST all tax payers
have to file single return for the state and the central taxes (SGST, CGST
13. Under GST there is no
concept of a manufacturer, first stage dealer, registered dealer, service
provider etc., anyone who registers under GST is called a tax payer.
14. Registration Number under
GST is called GSTIN and it is 15 digit number, the first two digits are for the
state code, next 10 digits PAN, 13th digit is for business vertical, 14th digit
is blank and 15th digit is check digit
15. For existing tax payers
under Central Excise, VAT or Service Tax the data will be migrated and the tax
payer will be given 6 months for furnish all the required information.
16. Three basic requirements
for obtaining registration under GST are, PAN Number, e-mail id and mobile
number. PAN will be validated online for information with CBDT Servers, Mobile
number is required for sending OTP (one-time password) and email id for
verification through a separate OTP.
17. Under GST each and every
location of business has to be registered as an additional place of business.
Registration number has to be displayed in a prominent place for each place of
18. According to Draft
Registration Rules, all registered tax payers have to display their GST
Registration Number i.e. GSTIN on the name board in all the locations of the
place of business.
19. A Tax Payer can have up to
35 registration numbers in the same state based on his line of business /
20. Suo moto registration –
During survey, search, inspection, enquiry if a concerned officer finds
business is not registered, he can issue temporary registration number and this
process is called suo moto registration under GST.
21. The portal for GST
registration is allowing only one GST registration per PAN, in case if anyone
has multiple businesses under same PAN have to approach their concerned
22. Cancellation of
Registration under GST is very complicated. The taxpayer has to file an
application for cancellation along with the closing stock and pay all the taxes
due and file valid returns for cancellation of application to be accepted.
23. for imports SAD and CVD is
replaced by IGST and importer can avail full credit of IGST.
24. Under GST, Unique Identification
Number (UIN) has to be obtained by bodies registered under United Nations and
foreign embassies for claiming refund of GST on their purchases
25. The concept of payment of
tax on manufacture of goods, on sales, provision of service is replaced by a
single tax point called “Time of Supply” in GST.