GST (Goods & Services Tax) is the new taxation system that has changed the entire system of taxes being paid by distributors, manufacturers, and end customers to central and state governments. For businesses and companies of all kinds, and individuals that offer services and cater to the needs of people in manufacturing or even selling products, it is important for them to get registration under the GST Act. This is necessary if the transactions fall under the slab of taxation. Now GST, every enterprise has to get registered if they wish to collect taxes from a customer or want to claim a tax credit of the tax paid by them. Companies and businesses that have an annual turnover of Rs. 20 Lakhs or above have to get their entities registered under GST. You must know that the GST registration process can be done in multiple ways. It can be done for a person who doesn’t have a business address or for an enterprise that operates in different parts of the world. Before we get any further, let’s understand the types of GST that are listed below.
SGST (State Goods & Services)
SGST is described as one of the two important taxes that are applicable on the transaction of Goods & Services of each state. Imposed by the State Government of every state, SGST replaces the existing state tax of all kinds that involve VAT, Sales Tax, Entry Tax, Entertainment Tax, and more. The state government has the permit to claim the earned revenue under SGST (The State Goods and Services).
CGST (Central Goods & Service Tax)
The CGST is referred to as the Central Tax imposed on the transactions of goods and services that happens within a state. Being imposed by the Central Government, CGST (Central Goods and Service Tax) makes sure to switch all central taxes. This includes the CST, State tax, SAD, and more. However, the price is charged as per the basic market price.
IGST (Integrated Goods & Services Tax)
IGST is imposed by the interstate transactions of Goods & Services, it can also be applied on all goods that are being imported to provide among specific states. The Integrated Goods and service tax is applied when the movement of services, goods, and services comes from one state to another.
UTGST (Union Territory Goods & Services Tax)
Being imposed on the Intra UT supply of goods and services, the goal of applying this tax is to impose a collection of the tax to offer advantages similar to SGST. The UTGST is applied to five union territories as Daman & Dui, Lakshadweep, Andaman and Nicobar Island, Dadra and Nagar Haveli, and Chandigarh.
Goods & Services Tax- Overview
Goods and Services Tax or GST is a value-added tax that is imposed on all entities or enterprises dealing in the supply chain with credit for any tax paid on things acquired for use in taking care of the supply. This means it is the end consumer that abides by this tax as the last entity in the supply chain. The GST was introduced in India expecting to result in an amazing simplification of indirect tax structure at both levels- center, and state changing the multiple layers of complex taxation that is currently existing in our nation.
Benefits of GST (Goods and Services Tax)
You must know that it will help improvise the ease of starting or setting up a business in India. When setting up or starting a new business in our nation, Businesses usually have to deal with VAT registration from the State’s department of sales tax. As each state has a different process and fee charge for VAT registration, it is difficult for businesses that are being operated in different states to maintain compliance with the VAT laws and regulations. With GST being imposed in India, the GST registration process would be centralized similar to service tax registration. Under the GST command, businesses of all kinds no longer have to go through the process of obtaining GST registration. The procedure of GST registration needs to be standardized, therefore, improvising the ease of setting up a new business in India.
Another perk is the integration of multiple taxes in Goods and Services Tax, currently, goods and products are taxed under the VAT command imposed by the Central Government. Each state has its different Vat rates, regulations, and VAT procedures that lead to complications. In addition to VAT and Service Tax, there are plenty of other tax regulations that many businesses need to comply with such as Additional Customs Duty, Central Sales Tax, Purchase Tax, and more.
Now that you know the basics about the GST registration process, connect with the best and trusted Income tax consultants or CA services. Find someone with a team of qualified and experienced professionals who can be of huge help in taking care of all GST-related processes and needs. You can browse the internet searching chartered accountant near me to connect with the best consultants who can be of huge help for your needs.