GST means Goods and Service Tax. GST is a tax system which is implemented in many countries of world. Introduction of GST is a step for ease of doing business in world. It is always helpful if one tax system is used in all over the world. It helps the Business to understand the tax system of other countries and help in spreading the Business worldwide. GST in announced in INDIA in year 2017. The bill was introduced after the amendment in Constitution of India.
As in 2020, there are four slabs of GST.
Under this slab, the basic goods and goods of basic amenities are covered. Goods like sugar, oil, spices, coffee, coal, fertilizers, tea, ayurvedic medicines, agarbatti, sliced dry mango, cashew nuts, sweets, handmade carpets, lifeboats, fish fillet, unbranded namkeen, life-saving drugs, etc. are covered.
Goods for normal use are normally lies under this Slab. Under this slab, products like cell phones, sewing machine, umbrella, jewelry box, along with processed foods like frozen meat, fruit juices, butter, cheese, ghee are covered. The services under this slab include also include business class flight tickets.
Under this slab, goods for semi luxury are considered by the GST Council. Under this slab products like hair oil, safety glass, pasta, pastries, ice-cream, mineral water, hair shampoo, oil powder, water heaters, washing machine, detergent, scent sprays, leather clothing, cookers, oil powder, cutlery, binoculars, artificial flowers, wristwatches, suitcase, briefcase, shaving, after-shave, furniture, stationery items, mattress monitors, television screen, lithium-ion batteries, video games are covered.
Goods for luxury are taxed in this slab. More than 200 products are covered in this slab. Products like cars, cigarettes, durable consumer products, high-end motorcycles, pan masala, weighing machine, cement, etc. are covered.
Goods like Rakhis without precious metals, bread, salt, sanitary napkins, raw material, eggs, besan, flour, natural honey, curd, sindoor, newspapers, bangles, handloom, deities made of stone, kajal, oat, color books, rye, picture books, manuscripts, etc falls in this salb. Services like hotels and lodges with tariff below Rs. 1,000 falls under this slab.
GST council is a body established by law to regulate and direct each and every step for the implementation of goods and service tax in the nation with decisions over tax rates and their implementation measures. The GST council will be supposed to make the recommendation to the Union and State on on subsuming of various taxes, cess, and surcharge in GST. It also threshold limit below which, services and goods will be exempted from GST. It also decides GST rates including floor rate with bands of GST and any special rate for time being to arrange resources to face any natural calamity. According to Article 279A, it is on the part of the president to give the order to constitute the council of GST within the 60 days from the 12th September 2016 which is already notified by the Government. Following are the designated personnel, who will form the GST Council together:-
• The Union Finance Minister who will be the CHAIRMAN of the council;
• The Union Minister of State in charge of Revenue or Finance who will be the MEMBER of council;
• ONE MEMBER from each state who is Minister in charge of Finance or Taxation or any other Minister and anyone of them will be VICE CHAIRMAN of the GST Council who will be mutually elected by them.
GST registration requires following documents.
| Sole proprietor / Individual | • PAN card of the owner • Aadhar card of the owner • Photograph of the owner (in JPEG format, maximum size – 100 KB) • Bank account details* • Address proof** |
| Partnership firm (including LLP) | • PAN card of all partners (including managing partner and authorized signatory) • Copy of partnership deed • Photograph of all partners and authorized signatories (in JPEG format, maximum size – 100 KB) • Address proof of partners (Passport, driving license, Voters identity card, Aadhar card etc.) • Aadhar card of authorised signatory • Proof of appointment of authorized signatory • In the case of LLP, registration certificate / Board resolution of LLP • Bank account details* • Address proof of principal place of business** |
| HUF | • PAN card of HUF • PAN card and Aadhar card of Karta • Photograph of the owner (in JPEG format, maximum size – 100 KB) • Bank account details* • Address proof of principal place of business** |
| Company (Public and Private) (Indian and foreign) | • PAN card of Company • Certificate of incorporation given by the Ministry of Corporate Affairs • Memorandum of Association / Articles of Association • PAN card and Aadhar card of the authorized signatory. The authorised signatory must be an Indian even in case of foreign companies/branch registration • PAN card and address proof of all directors of the Company. • Photograph of all directors and authorised signatory (in JPEG format, maximum size – 100 KB) • Board resolution appointing authorised signatory / Any other proof of appointment of authorised signatory (in JPEG format / PDF format, maximum size – 100 KB) • Bank account details* • Address proof of principal place of business** |