Tag: gst filling

  • How To Register For GST online | A Complete Guide For GST Registration Process Online

    If a seller wants to sell across India they need to register for GST. The GST is meant to replace a slew of indirect taxes with a federated tax. In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. The registration process is entirely paperless which means that it will take place online or digitally. Registering for a GST might seem confusing but just follow our Step by Step guide on how to register for GST online easily.

    How to Register For GST Online
    To Register For GST Online
    Documents Required To register For GST Online
    Steps To Register For GST Online
    Frequently Asked Questions About Online GST Registration

    How to Register For GST Online

    To Register For GST Online

    There are two parts in registering for GST online,

    Part A – Generate your GST Application form

    Part B – Filling in your GST Application form

    Documents Required To register For GST Online

    • PAN of the Applicant
    • Aadhaar card  
    • Proof of business registration or Incorporation certificate
    • Identity and Address proof of Promoters/Director with Photographs
    • Address proof of the place of business
    • Bank Account statement/Cancelled cheque
    • Digital Signature
    • Letter of Authorization/Board Resolution for Authorized Signatory

    Impact of GST on Startups and Small Businesses in India
    GST was implemented in India in July 2017. The GST was meant to replace a slewof indirect taxes with a federated tax. It has impacted almost all Industries,including start-ups. Startups are liable to pay taxes as they cross thethreshold limit are liable to pay GST from the moment they cross the t…


    Steps To Register For GST Online

    Part 1: Generate Your GST Application Form

    First you need to visit official GST portal – https://www.gst.gov.in/ and under the services tab, choose Services > Registration > New Registration.

    On the registration page, enter all the requested details (including your PAN number), email address and mobile number. You need to select the option I am a Taxpayer.

    How To Register For GST Online - Step 1
    How To Register For GST Online – Step 1

    After entering the details click proceed. After that you’ll receive two different OTP on your phone and Email id for verifying the mobile number and the email id. OTP is valid only for 10 minutes. Enter the Received  OTP and click proceed.

    Once you click proceed your Temporary Reference number will be generated. Save and copy your TRN number it will be used for further filling of the form.

    This was the complete Part A of Registering for GST online. If you want some Help with tax preparation and planning, do read it.

    Now to use this TRN number, either click Proceed or Services > Registration > New Registration option and select the Temporary Reference Number (TRN).

    Enter your TRN number and the captcha text as shown on your screen. Click proceed and you will be asked to verify OTP again. (This is different from the previous OTP generated), Same OTP will be received on your phone and email id.

    Part 2: Filling Your Online GST Application Form

    Now click on action button on top right to start filling your GST application form.

    How To Register For GST Online - Step 2
    Filling in your GST application form

    The form contains 9 sections,

    Your Business Details

    Enter the details of your business. Enter the name of your shop under the Trade name and enter the constitution of business, private limited or partnership etc.

    How To Register For GST Online - Step 1
    Providing Business Details

    After you complete your registration click on save and continue to proceed further.

    Personal Information

    Enter the Required personal information and identity information. In identity information under designation, Add the designation of yourself. Suppose if you are proprietor add proprietor under that.

    How To Register For GST Online
    Providing Personal Information

    After you add all the details you have to upload your photograph, which should be in jpeg format of size maximum up to 100kb.

    Authorized Signatory

    If you are the proprietor of the company just click on primary authorized signatory and proceed further. If you are not the proprietor of the company then fill in the details of the proprietor of your company.

    Authorized Representative

    If you have an Authorized representative you have to fill in the details of your representative or else Click on save and continue to proceed further.


    ClearTax launches feature of Nil GST Return Filing for CAs and Businesses
    ClearTax, India’s #1 Tax & Investing platform today announced the launch of itsnew feature called Nil GST Return filing, a unique feature that will help CAsand businesses do their Nil GST Return filing in just a few seconds. Currently, every month over 20 Lakh small businesses including MSMEs fil…


    Principal Place of Business

    Here, You have to add the details where your business is located, if your business is in Delhi then add the location details of your business.

    How To Register For GST Online - Step 1
    Principal place of Business

    You also have to add nature of your business. Under the nature of possession of premises add the type of your business and provide the document proof of place of business. Suppose you have a Rented business so click on rented and provide the proof of rented agreement such as electricity bill.

    Also add the nature of business activity and click on save and continue to proceed further.

    How To Register For GST Online
    Nature of possession 

    Additional Places of Business

    If you have Additional places of business you can Add it or click on continue to proceed further.

    Goods And Services

    Here you have to add if you are selling goods or services. If you are selling physical goods add the HSN code. (HSN is a six-digit code that classifies more than 5000 products, arranged in a legal and logical structure)

    State Specific Information

    Providing this information is up to you because it is not mandatory. Click on save and continue to proceed further.

    How To Register For GST Online
    State Specific Information

    Final Verification

    This is the final step of GST form. Once you fill the details you can choose to submit with EVC or DVC. If you select EVC you’ll receive same OTP on your mobile no. and email id. If you have a digital signature you can submit with DVC.

    How To Register For GST Online
    Verification

    On completion, an Application Reference Number (ARN) will be generated and sent to your mobile number and email id. You can use this to track your application status (Services > Registration > Track Application).

    This was the complete how to register for GST online step by step.

    Frequently Asked Questions About Online GST Registration

    How do I get a new GST number?

    • Go to the official GST portal – https://www.gst.gov.in/ and under the services tab, choose services > Registration > New Registration.
    • On the Registration page, enter all the requested details (including your PAN number), email address and mobile number.
    • After entering the details, click proceed. You will receive two different OTPs on your mobile and on your email for verifying the mobile number and the email id. OTP is valid only for 10 minutes. If required, you can regenerate the OTP.
      Your Temporary Reference number will be generated at the end of this process.
    • To use this number, either click Proceed or Services > Registration > New Registration option and select the Temporary Reference Number (TRN) radio button to login using the TRN.
    • In the Temporary Reference Number (TRN) field, enter the TRN generated and enter the captcha text as shown on the screen.
    • After this, you will be asked to verify OTP again. This is different from the previous OTP generated, please enter the new OTP received. The same OTP will be received on the verified mobile number and email id.
    • This will take you to your “My Saved Application” page. You will have to fill in all the form details and submit them within 15 days. After this, your number and saved form will be deleted.

    Is GST registration free?

    The GST registration is absolutely free of cost. The registration process is entirely paperless which means that it will take place online or digitally. Registering for a GST might seem confusing but just follow our Step by Step guide on how to register for GST online easily.

    Is GST applicable for online business?

    It is a mandatory GST Registration for all Online Sellers. Under GST, all online sellers must register and pay GST. This means that even if you only bring in Rs 1 lakh, you must go online and get a GSTIN. In addition, you’re required to file monthly returns and pay taxes on all qualified sales.

    How do I file GST online?

    Registering for a GST might seem confusing but just follow our Step by Step guide on how to register for GST online easily.

    1. Go to the official GST portal – https://www.gst.gov.in/ and under the services tab, choose services > Registration > New Registration. You can also apply for GST online using our exclusive offer for Amazon by clicking here.
    2. On the Registration page, enter all the requested details (including your PAN number), email address and mobile number.
    3. After entering the details, click proceed. You will receive two different OTPs on your mobile and on your email for verifying the mobile number and the email id. OTP is valid only for 10 minutes. If required, you can regenerate the OTP.
      Your Temporary Reference number will be generated at the end of this process.
    4. To use this number, either click Proceed or Services > Registration > New Registration option and select the Temporary Reference Number (TRN) radio button to login using the TRN.
    5. In the Temporary Reference Number (TRN) field, enter the TRN generated and enter the captcha text as shown on the screen.
    6. After this you will be asked to verify OTP again. This is different from the previous OTP generated, please enter the new OTP received. The same OTP will be received on the verified mobile number and email id.
    7. This will take you to your “My Saved Application” page. You will have to fill in all the form details and submit them within 15 days. After this, your number and saved form will be deleted.

    Can I sell on Amazon without GST?

    Yes. if you are selling only GST exempted categories, then this may not be required. However, If you are listing taxable goods, GST details are required to sell online. You need to provide a GST number to Amazon at the time of registration.

    Do I need a GST number for my small business in India?

    If a seller wants to sell across India they need to register for GST. The GST is meant to replace a slew of indirect taxes with a federated tax. In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person.

    What is EVC in GST?

    In the GST portal, a person can authenticate the user using an OTP (One Time Password). The OTP is called the Electronic Verification Code (EVC) and a person who wants to do the user authentication using an OTP can select this method.

    What are the documents required for GST registration?

    To complete GST registration, you will be needing the documents like PAN, Aadhaar, business address proof, cancelled cheque, bank account statement, business registration proof or the incorporation certificate, digital signature, photograph, address proof and ID proof of the director or promoter, board resolution or letter of authorisation from the authorised signatory.


    Is Goods and Services Tax(GST) better and helpful than the previous tax system?
    The question of which tax system is better is debatable. Before GST wasintroduced, the VAT system was followed in India. GST not only brought anexcellent revolution in the Indian economy and society but also it increased thegovernment revenue. Is GST practically better than the previous tax syste…


  • How to Register a Business in India

    The 21st century is the century of startups and new rising companies. If you too want to start something of your own, something different and promising but don’t know how to put it up in front of the world in a legal way or you are too intimidated by the modus operandi here’s something for you that can help you start your venture of business and money-making.

    Some Fundamentals of Registering your Business in India

    Checklist for Business
    Checklist for Business

    Before going for the legal authentication part make sure you have done some profound research on the market you are going to step in, build a product that fits the demand of the people, and have an easy yet noteworthy name for your brand so that your registration process goes as smooth as it can be. You simply can’t build a business if you don’t have the exact idea of what you are going to present in front of the world. Make sure you are confident enough to start sailing in the ocean of marketing.

    Registering your business offline could be a complicated and greasy process. It is far better to do it online and it gives more transparency on how the systems work. Here are certain procedures that have been broken down into simple steps to help you register your business in India.

    Guide to DPIIT Startup Registration Process – StartupTalky
    Startup India Scheme is a flagship program by the Government of India, launchedin 2016. The Government through this initiative aims to empower Startups to growthrough innovation and design. The goal of Startup India is the development andinnovation of products and services and increasing the empl…

    Guide to DPIIT Startup Registration

    Visit the Website of the Ministry of Corporate Affairs

    When you start the process of registration, first of all, you need to visit the government website of the Ministry of Corporate Affairs (MCA). There you will need to find two forms, one of them is named DIR-3-KYC and the other as DSC (Digital Signature Certificate). You need to fill out these two forms first then apply for the DIN i.e. Director Identification Number.

    Register Business in India-Required Documents
    Documents to be submitted

    While filling out both of the forms you need to have certain documents handy as they have to be submitted along with both of the forms. These documents include proof of address, educational qualification, current occupation, passport. Along with all these documents you also need to send some passport size photographs.

    After filling out these forms you will have to register for the Digital Signature Certificate, also known as DSC without which you won’t be able to apply for the company registration in the online mode. For this, you also need those same documents which include proof of address, educational qualifications, current occupation certificate, passport, and passport size photographs.

    File an Application

    Once you are done with the previously mentioned forms, prepare an application. In this part, you will have to fill up the 1A form electronically. This process officially performs the registration of the name that you want to give to your company. You cannot just give a name that you think is suitable for your business. Here you will have to send a list of at least four names out of which one will be selected by the RoC based on their availability and whether they are appropriate. It is normally better to give more than 5 names as you will have more chances for your application not to get denied.

    The RoC (Registrar of Companies) might take up to 2 days to respond. In this process, you will have to pay a fee of Rs. 500. Once the RoC approves the name that you have provided, the registration of the company must be done within 6 months of approval. If not done within the period, the whole process of registration has to start all over again.

    How to Apply Government Loan for your Startups
    The new year brings fresh and innovative business prospects to your creativeminds. Granting start-ups will make those innovations feasible. Yet it’s not always straightforward to address the issue of how to get fundingfor a startup. You must know where you are going to look and get ready to do th…

    Draft the MoA and AoA

    The last step of registration includes the drafting of the Memorandum of Associations (MoA) and the Articles of Association (AoA). As these are two legal forms, these need to be dealt with carefully where you might take help from Lawyers while filling out the forms. The MoA provides a list of the different agendas of the company while the AoA lists out the details of the Company’s operation and its management. Both the Documents need to be compulsorily signed and attested by a minimum of two people from the company with a person being the witness of the whole drafting process.

    Drafting Documents for registering business in India
    Draft MoA and AoA

    After doing so these documents are to be sent to the RoC for the verification process. After the documents get approved by the authority, a print out must be taken out so that you can get them validated. Then you can attach these documents along with all other documents necessary for the registration of your business.

    With all of the above documents attached, you can now apply for the registration of your company by submitting the documents to the RoC. You have to register your company in the state where you will be performing your business. Then you will be provided with a certificate of Incorporation from the RoC which is the legal Certificate that declares the business to be legal and to be your own. This means that your business is registered and you can simply start conducting your business.

    Top 10 Small Business Ideas To Start In 2021 | Best Business Ideas 2021
    2020 has brought severe turmoil and tension to the global economy, the COVID-19pandemic [/tag/covid-19/] being the biggest challenge. Countries have had toimplement lockdown [/tag/lockdown/] measures to contain the disease. Starting anew business won’t be the same as earlier. Hence, following the…

    What after Registration?

    After the successful registration of your new Business, there is another additional step that you must do before starting your business. You must apply for a GST number, which when registered will complete the whole process of your company’s registration.

    This must have given you the basic idea of how to register your business in the smoothest way possible. Though there might be some extra procedures involved, depending on your location and the type of business you want to run, it is always better to get started as soon as you can.

    Conclusion

    Registering a business in India is not that complicated as it may feel. You just need to have some knowledge before getting down on the platform. The procedures set by the government for a successful registration is a quick and sorted process which makes it easy for a new company to start and run without much complications. After you are done with registering your business in India, it is now time to make it prominent and successful. There is one small piece of advice that you may need before you start your business venture is that no matter how challenging and exhausting the market makes you feel if you can make it better for the customers, you will surely succeed in your business. Keep your hopes high and your visions clear.

    FAQs for Registering your business in India

    How to register a foreign company in India?

    A foreign company can establish its business in India by filling out the FC-1 e-form. A digital signature of the official representative is needed whiling filling out the form electronically. There is no need to apply and obtain the DIN for the Directors of the foreign company.

    What is the objective of small business registration in India?

    Regardless of the type of business you want to run, you will always have to register your business officially. The reason being that a certain business transaction must follow specific rules and guidelines for being legal in India. Registering the business declares the company to be yours, secures the name of your company, and gives you the authenticity to take any legal actions whenever necessary.

    Can I get a registration number for my business?

    On applying for registration you will be given a recognition number for your business. This number will be provided to you once there is complete verification of your documents.

    How long does it take to start a business in India?

    It normally takes two to three weeks to complete the registration process and you can start your business in India within a short span. After you are provided with a legal recognition certificate for your business, the Indian Director can help you with opening a bank account in the company name.

    How to choose a company name?

    It is better to search for a name that is simple, easy to pronounce, and is relevant to your business. You can always take help from the internet. The RoC may expect you to follow some naming guidelines while naming your company.

  • GST Guide: Introduction, Compliance, Updates and Many More

    Goods and Services Tax(GST) has been introduced and implemented in India to reduce the anomalies caused by the previous tax system. GST, or Goods and Services Tax is a tax that customers have to pay when they purchase any goods or services, such as food, clothes, electronics, items of daily needs, transportation, travel, etc.

    The concept of Goods and Services Tax is that it is an Indirect Tax, i.e., this tax is not directly paid by consumers to the government, but is rather levied on the manufacturer or paid by the production centres and the providers of services. The sellers add the tax expense into their costs, and the price the buyers pay is inclusive of GST. Therefore, in most cases, people end up paying a tax even if they are not an income taxpayer.

    GST Guide

    GST is levied on the basis of the destination principle. Exports would be zero-rated, and imports would attract tax in the same way as domestic goods and services.

    Addition to the IGST in respect of the supply of goods, an additional tax of up to 1% has been proposed to be levied by the central government. The revenue from this tax system is to be assigned to the original states. It is proposed to be levied for the first two years or for a longer period, recommended by the GST Council.

    It is predicted that the tax base will be comprehensive, as virtually all goods and services will be taxable, with minimum exemptions. GST would bring in a modern tax system to ensure efficient as well as effective tax administration. It will bring greater transparency and strengthen monitoring, thus making tax evasion difficult.

    It is important for the industry to understand the impact and opportunities offered by this tax reform. GST will have effects on all industries, irrespective of the sector. It will impact the entire value chain of operations, manufacturing, distribution, warehousing, sales and pricing.

    Component analysis of GST Gross Collection
    Component analysis of GST Gross Collection

    Items outside the purview of GST

    There is a set of items which are not covered by GST. The following items are:

    • Alcohol for human consumption is not covered under GST. On alcohol, the authority to tax remains with the states.
    • GST was not imposed on five petroleum products like crude oil, diesel, petrol, natural gas and ATF.
    • The Central Government, along with GST has the power to levy additional excise duty on tobacco products.
    • The authority to decide entertainment tax levied by local bodies remains with the states.
    • Even Electricity is out of the purview of GST.

    Is Goods and Services Tax(GST) better and helpful than the previous tax system?
    The question of which tax system is better is debatable. Before GST wasintroduced, the VAT system was followed in India. GST not only brought anexcellent revolution in the Indian economy and society but also it increased thegovernment revenue. Is GST practically better than the previous tax syste…


    GST Compliance Rating

    The GST compliance rating is a rating given by the government to a business so that other businesses can review how compliant they are with the government tax department. This score will be calculated based on parameters such as timely filing of monthly and annual returns, furnishing details of input credits used, taxes paid, etc.

    These scores will be updated at periodic intervals, and their details will be published in a public domain that all businesses can access. This allows small businesses to choose the most GST-compliant vendor for their business endeavours.

    Under the previous tax system, businesses often delayed filing return and payment of taxes to gain time. Continuing this practice under GST will result in a delay in input tax credit across the chain and severely affect the working capital of businesses. The rating system will prevent the delay of credit for buyers due to the non-compliance of certain persons.

    The Impact of GST on the Indian Economy

    Following are the ways in which GST has a positive impact and will help improve the economy of India.

    Reducing in tax burden for manufacturers which will encourage quality and more productivity. The earlier system of taxation was ill-structured with a magnitude of tax clauses which prevented the manufacturers from providing optimum production, hindering growth. However, GST after implementation will relieve manufacturers from those problems by issuing tax credit to manufacturers.

    All the various tax difficulties that prevailed such as long queues at check posts and toll plazas, resulted in wastage of products which were being transported. A single GST taxation system will surpass all these hurdles and prevent unnecessary wastage which caused huge losses in costs for supplies.

    A common consumer will know how much taxes they are charged and on what grounds, which will pave way for a just and transparent tax system.

    The extension in the tax base under GST will be compounded to the revenue of the government.

    When the taxes are paid by producers for the supply of goods or services, GST will provide a tax credit. This feature will encourage producers in purchasing the raw materials from any of the registered dealers which will eventually gather all the vendors and suppliers under the GST roof.

    Customs duties which were applicable to the export of items will be removed and it will increase the competitiveness of the exporters to be at par with foreign markets.


    Impact of GST on Startups and Small Businesses in India
    GST was implemented in India in July 2017. The GST was meant to replace a slewof indirect taxes with a federated tax. It has impacted almost all Industries,including start-ups. Startups are liable to pay taxes as they cross thethreshold limit are liable to pay GST from the moment they cross the t…


    Benefits of GST

    GST eliminates the cascading effect

    GST is an indirect tax that was designed to bring indirect taxation under one roof. More significantly, it is going to eliminate the cascading effect of tax that was evident earlier.

    Composition scheme for small businesses

    Under GST, small businesses (with a turnover of around Rs 20 to 75 lakhs) can benefit as it gives an option to lower taxes by using the Composition scheme. This step has brought down the tax and compliance burden on many small businesses.

    The unorganized sector is regulated under GST

    In the pre-GST period, it was often seen that certain industries in India like construction and textile were largely unregulated and unorganized.

    However, under GST, there are provisions for online compliances and payments, and for availing of input credit only when the supplier has accepted the amount. This has brought in accountability and regulation to the businesses.

    Higher threshold for registration

    In the VAT system, any business with a turnover of more than Rs 5 lakh was liable to pay VAT. Also, note that this limit differed state wise. Under the GST regime, this threshold has been increased to Rs 20 lakh, which exempts many small businesses and service providers.

    Wrap Up

    Change is necessary but definitely never easy. The government is trying to smoothen the path to GST. It is important to take a leaf from global economies that have implemented GST before us, and who overcame the teething troubles to experience the advantages of having a unified tax system and easy input credits.

  • Is GST better than the previous tax system?

    The question of which tax system is better is debatable. Before GST was introduced, the VAT system was followed in India. GST not only brought an excellent revolution in the Indian economy and society but also it increased the government revenue. Is GST practically better than the previous tax system?

    What is GST(Goods and Services Tax)?

    GST is considered as the most economically influential post-independence tax reformation in India as it has redesigned the whole concept of taxation. Being a consumption-based system, it is completely transparent and convenient than the previous tax structures. It has disregarded to society like tax-evasion and corruption on a greater level.

    In a longer period, it did not only brought an amazing boost to the Indian economy and society but also the government revenue increased. It practically removed the main problem of the previous tax system which was cascading effect.

    GST is a value added tax that is collected at every level in the supply chain process. In the earlier indirect tax time, in certain cases, the tax paid on commodities or services were not available for setting off the output tax liability. For example, the excise paid by manufacturers were not available for set-off against VAT.


    Impact of GST on Startups and Small Businesses in India
    GST was implemented in India in July 2017. The GST was meant to replace a slewof indirect taxes with a federated tax. It has impacted almost all Industries,including start-ups. Startups are liable to pay taxes as they cross thethreshold limit are liable to pay GST from the moment they cross the t…


    What is VAT(the previous Tax structure)?

    Most people are accustomed or aware of the VAT system even if they don’t run a firm or business. For instance, if you purchase any product or go to a hotel, in the lower part of the bill, you are likely to see an extra cost in the form of a percentage. This is called the value added tax, VAT.

    VAT is a consumption tax levied on a product at each stage of the supply chain. VAT has been a major reform for India’s tax system when it was introduced around 2005. This change was desperately needed due to issues with India’s previous taxation system, where the cascading effect of taxes had a negative effect.

    Is GST better than VAT


    How To Register For GST online | A Complete Guide For GST Registration Process Online
    If a seller wants to sell across India they need to register for GST. The GST ismeant to replace a slew of indirect taxes with a federated tax. In the GSTRegime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE andhill states) is required to register as a normal taxable person.…


    Educated Consumer

    Previous tax regime was loaded with multiple taxes at the state level which included VAT, Entertainment Tax, Luxury tax, Taxes on lottery, betting and gambling, State Cesses and Surcharges, Octroi, Entry Tax and purchase tax. Multiple taxes at the central level were also levied which included Central Excise Duty, Additional Excise Duties, Service Tax, and Additional Customs Duty.

    This multitude of levied tax kept the consumers confused and unsure on taxes being charged. Consumers were unable to check or verify the correct levy and payment of taxes, leading to consumers being overcharged on account of false taxes. GST is based on a PAN-India model tax system, consumers have become vigilant before paying taxes. GST being a “ONE NATION ONE TAX”, has helped rationalize and revolutionize the whole economy.

    Reduction in Logistic cost

    A leading logistics company recently said that after the implementation of the E-way bill and GST, heavy transport vehicles i.e. Trucks are covering 10-15% more distance as compared to earlier regime. In earlier regime trucks were hovering around 300-350 km per day, however, after the implementation of GST this distance has increased to 400-410 km per day. This has helped in the reduction of logistics costs. This reduction has brought India at the edge of a logistic revolution.

    Eliminate The Cascading Effect

    Cascading effect is a phenomenon of taxation that puts an extra burden on the end consumer. With the cascading effect in place, the taxes were levied on the value on which the previous buyer has already paid the tax. Thus, GST removed this tax on tax by bringing the concept of input tax credit that can be claimed at every stage by the seller or service providers.

    Simple Online Procedure

    The GST has brought in a new digital era in the Indian taxation system. All the process, right from the registration to the payment of taxes has been made online. This uniform e-registration is a considerable change as compared to the earlier decentralized multiple registration mechanisms.

    Destination-based Taxation

    With the onset of GST, the taxes were charged on the point of consumption, unlike the former tax structure that levied taxes on the place of manufacturing. This change from origin-based tax to destination-based tax has also significantly altered the revenue generation of producer states as well as consumer states.

    Real Estate

    The government has rationalized tax rates in the real estate sector from 12%/8% to 5%/1% also giving one-time option for ongoing projects to adopt the tax scheme. Home investors were forced to pay multiple taxes on real-estate buys in the pre-GST era, and in the post-GST period, they were forced to pay full taxes without benefit of ITC being passed to the consumers.

    Thereby commodities were always overpriced. With this new tax scheme, consumers are ensured that they are bound to pay an amount with a full benefit of Input tax credit flowing to them without any discretion of suppliers.

    The reduced tax burden on Tax Payers

    The tax burden before GST on taxpayer was considerably high. With GST adaption, the tax burden has reduced significantly since all taxes are integrated, and the burden is split equitably between manufacturing and services. Certain taxes became part of the cost. Therefore, with the simple mechanism of GST, the cost burden has reduced by removing such effect and providing credit.

    GST revenue Collection
    GST revenue Collection

    The GST components

    CGST

    Central GST is referred as CGST, applicable on supplies within the state. Tax collected to be shared with the Centre.

    SGST

    State GST is referred as SGST, applicable on supplies within the state, whatever tax collected will be shared to State.

    UTGST

    Union Territory GST is referred as UTGST, applicable on supplies within the union territory.

    IGST

    Integrated GST is applicable on interstate and import transactions. Hence, tax collected is shared between the Centre and State.

    Conclusion

    By implementing GST, the Indian government is looking forward to improving the economy by eliminating the cascading system of tax and controlling corruption in the business processes in India which were possible in the previous tax system.