Key Features:

1. Single tax: Replaces multiple indirect taxes (VAT, Excise, Service Tax).

2. Destination-based: Tax levied where goods/services are consumed.

3. Multi-stage: Taxable at every stage of supply chain.

4. Input Tax Credit (ITC): Allows businesses to claim tax credits.

Benefits:

1. Reduced tax burden

2. Simplified compliance

3. Increased transparency

4. Boosts economic growth

Goods and Services Tax (GST) Registration

Goods and Services Tax (GST) registration is mandatory:

GST Registration Thresholds:

- Goods: ₹40 lakhs (normal category states) and ₹20 lakhs (special category states)

- Services: ₹20 lakhs (normal category states) and ₹10 lakhs (special category states)

* Note: The turnover limits for GST registration in India vary depending on the type of business and location. 

Benefits of GST Registration

1. Legally recognized as a supplier of goods/services

2. Eligible to collect GST from customers

3. Claim input tax credit (ITC)

4. Compete with other registered businesses

Eligibility & Registration Criteria

Types of Goods and Services Tax (GST):

1. Central Goods and Services Tax (CGST): Levied by the Central Government on intra-state supplies (within the same state).

2. State Goods and Services Tax (SGST): Levied by the State Government on intra-state supplies.

3. Integrated Goods and Services Tax (IGST): Levied by the Central Government on interstate supplies (between different states) and imports.

4. Union Territory Goods and Services Tax (UTGST): Levied by Union Territories on intra-state supplies.

Goods and Services Tax (GST) Rates:

1.      0% GST Rate: This slab includes essential items like milk, eggs, curd, lassi, unpacked foodgrains, rice, unpacked paneer, gur, besan, unbranded natural honey, fresh vegetables, salt, prasad, palmyra jaggery, phool bhari jhadoo, and educational and health services.

2.      0.25% GST Rate: This slab includes non-industrial diamonds, unworked precious or semi-precious stones, and synthetic or reconstructed precious or semi-precious stones.

3.      3% GST Rate: This slab includes imitation jewellery, articles of precious metal, natural pearls, diamonds (whether or not worked but not mounted or set), precious stones, silver, gold, and waste and scrap of precious metal.

4.      5% GST Rate: This slab includes items like sugar, tea, coal, edible oils, raisins, domestic LPG, roasted coffee beans, skimmed milk powder, cashew nuts, footwear (< Rs.500), milk food for babies, apparels (< Rs.1000), fabric, coir mats, and life-saving drugs.

5.      12% GST Rate: This slab includes items like butter, ghee, processed food, almonds, mobiles, fruit juice, preparations of vegetables, fruits, nuts, pickle murabba, chutney, jam, jelly, packed coconut water, and umbrellas.

6.      18% GST Rate: This slab includes items like hair oil, capital goods, toothpaste, industrial intermediaries, soap, ice-cream, pasta, toiletries, corn flakes, soups, printers, and computers.

7.      28% GST Rate: This slab includes luxury items like cement, small cars, high-end motorcycles, consumer durables (AC, fridge), luxury and sin items (BMWs), cigarettes, and aerated drinks.

Additionally, there are composition taxable persons who must pay GST at lower or nominal rates, such as 1.5% or 5% or 6% on their turnover.

Process of Goods and Services Tax (GST) Registration:

Step 1: Register on GST Portal

1. Visit gst.gov.in

2. Click "Register Now"

3. Fill Part-A of GST REG-01

4. Verify email and mobile number

Step 2: Fill GST REG-01 (Part-B)

1. Login to GST portal

2. Fill business details

3. Upload required documents

4. Verify details

Step 3: Verify GSTIN

1. Receive GSTIN (Goods and Services Tax Identification Number)

2. Verify GSTIN on GST portal

Step 4: Obtain GST Certificate

1. Download GST registration certificate

2. Print and display certificate at business premises

GST Registration Timeline:

1. Registration application: 3-5 working days

2. Verification: 20-30 working days

3. GSTIN generation: immediate

Documents Required for GST Registration:

1. PAN card

2. Aadhaar card

3. Business registration certificate

4. Identity proof

5. Address proof

6. Bank account statement

7. Utility Bill

8. Authorized signatory details

FREQUENTLY ASKED QUESTIONS (FAQ’s):

1. What is GST?

Ans.1: GST (Goods and Services Tax) is a comprehensive, multi-stage, destination-based tax levied on goods and services.

2. What are the benefits of GST?

Ans. 2: Simplified tax structure, reduced tax cascading, increased transparency, and boosted economic growth are the benefits of GST.

3. Who is liable for GST registration?

Ans. 3. The followings are liable for GST registration:

-        Businesses with turnover exceeding ₹40 lakhs (₹20 lakhs for Special Category States)

-        Supplying goods/services interstate

-        E-commerce operators/aggregators

-        Casual/Non-resident taxable persons

-        Persons taxable under reverse charge basis

4. What is the GST registration process?

Ans. 4. GST registration can be done through online registration on gst.gov.in with required documents.

5. What are the GST rates?

Ans. 5. The GST rates are 0%, 0.25%, 3%, 5%, 12%, 18%, and 28% as per applicability and may vary from time to time.

6. What documents are required for GST registration?

Ans 6. The documents required for GST registration are PAN, Aadhaar, business registration certificate, identity proof, address proof, Bank Statement.