GST Explained about Registration process, Registration Cost & Input Tax Credit

These are Some Frequent Questions, I generally get, So thought to write a blog about it.

Q.1) What is GST?

GST is Goods & Service Tax basically the main form of Commercial TAX that comes in to effect in India from July 1, 2017. It replaces all the existing types of taxes like VAT, CST & EXCISE etc.

Q.2) What is GST tax slab rate?

There is basically 5 slab rate for Product & 1 Slab for Service.
For Product it is , 0%, 5%, 12%, 18%, 28%
For Service, It is 18%
Q.3) Has it replaced all the Previous Taxes like VAT, CST & EXCISE?

Yes. But for some exceptional cases like Liquor, the Value Added Tax still exists & GST is not been implemented.

Q.4) How do I apply for GSTIN (GST REGN NUMBER) online?

 Simply go to GST PORTAL http://gst.gov.in & apply online. Remember if Your annual gross revenue is more than 20 lakhs then you are required to register, the slab is 10 lakhs in north east states.

NOTE - For eCommerce sellers & interstate sellers it is mandatory to register for GST.

 Q.5) What Is the Cost of GST Registration?

 It is absolutely FREE.

 Q.6) What is the Input TAX Credit?

Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs.
Say, you are a manufacturer –
tax payable on output (FINAL PRODUCT) is Rs 450
tax paid on input (PURCHASES) is Rs 300
You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes.
Q.7) How it affects the Service Sector?
It has a very big impact in service sector. The earlier service tax was around 15% so now it has been changed to 18% besides small restaurants. So the buyer is going to pay the service tax in Insurance Premium, Bank Loan Charges, Credit Card charges etc.
Q.8) What to do if I am selling in eCommerce sites like eBay & Amazon?
The Process is no different from an offline seller. So simply register in GST Portal gst.gov.in. The Process of registration is mentioned above. 
Q.9) Will the price of every item Increase or decrease after the implementation of GST?
It is a very generalized question & very difficult to answer. Definitely, the price of Luxury items & leather goods is increasing while the price of many products may remain same like Soap, detergent or biscuit.
Q.10) If my Vendor is not registered in GST then can I claim input tax credit?

No.

 Q.11) After GST, is it legal to import liquor from other states?

 As mentioned above, GST has nothing to do with Liquor. So Liquor is still under VAT.

 Q.12) I am a small shop owner selling mobile, should I register in VAT or GST?

 General VAT registration is no longer available. So you have to register in GST.

Q.13) What are the effects of GST in CSD canteen?

 In CSD Canteens the buyer will get 50% refund/cashback in total amount of tax paid.

Q.14) Does one need VAT/TIN for applying GST?

 No. You only Need PAN Card, Bank Account Details & Business Details for applying for GST.

 Q.15) What is the Impact of GST on Small Business?

 GST has a severe impact on small business or e-commerce business. Check the below blog to know more.
                                                                xxxxxxxxxxxxxx

Source - www.india-crafts.in/blogs/ &  https://indiacraftsbibs.blogspot.com/

Check Out the Videos related to GST.

GST Explained about Registration process, Input Tax Credit https://youtu.be/Vm8OCKWWzeo

GST registration video - https://youtu.be/f344nViBlVU

GST Impact on Ebay Amazon Sellers - https://youtu.be/yzBoxaJYxRY

GST HSN code explained - https://youtu.be/SHkNFpCf0g4

GST Impact on Small Business - https://youtu.be/JEiJjqOGPGo

I hope I have answered all your queries related to GST. If you still have any query please feel free to ask me at care@india-crafts.in
Location: Mumbai, Maharashtra, India

Comments

Post a Comment

Trending Now

Legal Name of the Business in GST Registration for Proprietorship

Image
Friends, I started the registration process for GST on 1st July 2017 & literally it took me almost 19 days to finish it. I was doing the registration as Proprietorship for Indiacrafts . After trying it for almost 50 times then finally I completed the process. The process is not that complicated but the manner the question & some of the data are there may bowl you over.  So let me get to the point straight, The documents you require for Proprietorship registration, 1) PAN CARD, (Individual PAN is Required, No Company PAN required) 2) BANK STATEMENT or BANK BLANK CHEQUE 3) AADHAAR CARD NUMBER (Mobile Number Should be Linked for E-Signature) 4) Address Proof (Electricity Bill, Land Docs or Rent Agreement) Document doesn't Necessarily clear your doubt how to fill the form, So please note down some important points, i) Legal Company Name is Your Name (GST REGN PART-A) eg, Your Name is Hari Das, So Your Legal Business Name is Hari Das (For P
Read more

GST registration process for Proprietorship & Partnership (Small Business)

Image
GST is the hot topic & the country is really thinking long & hard about how to tackle it. From selling Shoe as a single piece to selling clothes as a separate entity to rumors about various slabs which does not exist at all in whatsapp. As I have already mentioned in another article how GST has hit hard for the small businesses , now it is the time to let you know what to do if you are a small business. If you want to read the previous article about GST please click here . Basically, if small businesses are generally two types. 1) Proprietorship 2) Partnership  So, today we will shed some light on the above though both the process are very simple & you barely need to pay any money for that. So the registration is almost free. 1) Proprietorship: 2 things you have to do if you are coming in this category.         i) TAN Registration  If you don't know what is TAN,  it stands for Tax Deduction and Collection Account Number. It is a ten digit alp
Read more

What is Indizel ? Is It a Scam ? Detailed About the Company

Hey, This is a very interesting article & i am writing it just for some enlightenment for people. This is my opinion, i may be wrong but i thought i should share it. I heard about this company 5 days back when it appeared in the front page of Oriya Daily. Suddenly i was impressed about what was written there but i thought is it possible ? After all i am a thermal engineering student & i have done several work on Bio Diesel. We (Those were working in the Project) all knew that the price of Diesel (Fossil Fuel) will be definitely lower than the Bio Diesel at least for next 10-15 year as the manufacturing cost of Bio Diesel is way more. So back in 2013 in KIIT University, our calculation was Bio Diesel will cost us around 105 per litter while Diesel was costing somewhere around 50 per litter. Now they are saying while diesel is 62 per litter Indizel will cost 52 per litter as it comes under GST. It is not the issue whether it will come under GST or not, the issue is the reality
Read more