Under the new GST scheme, all of the taxes at the central and state level will be subsumed. There will also be no differentiation between goods and services when they are being taxed. There will be a single tax rate across the entire country.
Since there will now be a single tax, businesses will not have to worry about handling the difficulty of having to calculate all of the different taxes individually. They will just have to pay their tax money according to a single rate.
This will allow them to have the opportunity to reduce the amount of money they have to pay as tax. Thus, they can invest the money that they save in other more productive activities for their business.
Running a business is never an easy thing to do. Having to manage all the products and services that you are going to sell as well as keeping all your employees paid and content is a gargantuan task. One of the areas that many businesses suffer in is managing their finances and ensuring that they do not run out of what they have while they are running their business.
Taxes that have been subsumed under GST
These are the central taxes that have been subsumed under GST:
- Central Excise Duty
- Service Tax
- CVD(Countervailing Duty)
- SAD(Special Additional Duty)
- Surcharges and cesses that come under the Central Government
These are the State Government taxes that have been subsumed under GST:
- VAT(Value Added Tax)
- CST(Central Sales Tax)
- Octroi and Entry Tax
- Luxury Tax
- Purchase Tax
- Entertainment tax
- Surcharges and cesses that come under the State Government
- Taxes imposed on lottery, betting and gambling
GST Registration Process
These are the steps that have to be followed in order to register for GST:
- GST REG-01 should be filled up using the business owner’s PAN, email ID and mobile number
- Mobile number and email ID must be verified with OTP after verification
- Store the ARN(Application Reference Number) that will be received
- Submit the ARN along with all of the required supporting documents
- Fill in GST REG-03 if additional information is required
- If all the given information has been successfully verified, the business owner will receive a certificate of registration within 3 working days
Documents required for GST registration
- Proof of business address
- Certificate of Incorporation
- Letter of Authorization
- Proof of bank account details
- Photograph of authorized signatory
Benefits of GST for businesses
- Simple compliance- The IT industry will significantly help the implementation of GST in the country. All of the services that a normal taxpayer would have to avail are available completely online. This would make compliance with the regime much easier for business owners.
- Uniform tax rates- All indirect taxes and other related structures will become common across the country. Businesses would not have to deal with the uncertainty and stress that they would normally face when it came to handling their taxes. Under the new GST scheme, no matter where the business was conducted, there would be a neutral tax system everywhere.
- Doing away with the cascading effect- Normally, there would be taxation at each and every step of the supply chain from the manufacture of the raw materials for the product to the consumer’s purchase of it. Under the GST scheme, all the taxes have now been merged into one. This means that one will not be taxed successively at each stage anymore which will help them avoid inflationary prices.
- A better air of competitiveness- The new GST scheme will greatly reduce the normal transaction cost of doing business. This will help businesses in the industry have a better standard of competition as compared to before.
- Better export prospects- Since all the taxes have been subsumed and the CST(Central Sales Tax) has been effectively phased out, Indian goods and services will have a much greater edge in the competitive market and Indian exports would be much more valuable.
- Easier invoicing- Since only one tax rate will be adopted, it will be much easier for businesses like restaurants to calculate bills for their customers
Role of InstaSpaces
We here at InstaSpaces are dedicated to aiding our clients in making their lives and businesses better in whatever way we can. Under the new GST regime, there are many ways in which businesses can be benefitted. In order to avail those benefits, your business has to be registered under the GST scheme. Our team will do our very best to help you do this.
Firstly, we will cover all the sections that are under the GST scheme so that you will be well-versed in everything that you need to know. We will guide you through everything that you need to do in order to get your place of business registered under the GST scheme. We have an excellent standardized and approved documentation process that can help you get everything that you require for the GST registration.
Our dedicated account managers will do their level best to complete the needed documentation for you as soon as they can. The registration process may be tricky to handle but you need not worry as we are there to help you each and every step of the way. No matter what state you are in, we will complete the registration for you as we provide registrations in all 29 states and 7 union territories. By applying for this scheme, you can reduce the cost of running your business greatly and be freed from the unnecessary stress about taxes that you may have had before.
Happy Office Hunting!