GST REGISTRATION & FILING CONSULTANTS IN MUMBAI
WHAT IS GOODS AND SERVICES TAX?
The constitution amendment bill for ‘GOODS AND SERVICE TAX’ (GST) was approved in the Parliament Session in August 2016 along with the confirmation by 50 percent of the state legislatures. Hence, all the existing indirect taxes levied by state and center were replaced with the proposed implementation of GST on 1st July 2017.
This move by the Government is the greatest tax reform since independence & is an added benefit to the Indian economy as it strives to eradicate the discrepancies of the existing tax structure & promotes single tax payment on the supply of all goods and services.
One of the much-awaited tax reforms to get launched in the Financial Year 2017-18, improving the ease of doing business for many micro and small businesses in India by reducing compliances. By incorporating multiple taxes into a single tax system, the complexities are bound to get reduced while the tax base would rise substantially.
Under the new GST process, all entities that are involved in buying or selling of goods or providing any services or both are required to obtain GST registration compulsorily. Entities without the registration of GST will not be permitted to collect GST from a customer or claim the input tax credit of GST paid. Also, the GST registration is mandatory once an entity crosses the minimum threshold turnover.
Most importantly, according to the GST Council, business entities situated in the Northeastern and hill states having an annual turnover of Rs.10 lakhs and above would be required to attain GST registration. For all the other business entities in the rest of India would be required to obtain GST registration, only if the annual turnover crosses Rs.20 lakhs.
Entities required to obtain GST registration as per the regulations must file for the registration within 30 days from the date on which the entity becomes liable for obtaining the GST registration. The average time taken to obtain GST registration is about 5 – 10 working days, subject to government processing time and submission of client documents.
It is mandatory for a business entity that is currently registered under any of the existing tax regimes to move to GST law irrespective of the concerned threshold limits. The following central and state level tax regimes will end with the introduction of Goods and Service Tax (GST):
- Central Excise duty.
- Service Tax.
- State VAT.
- Central Sales Tax.
- Entry Tax.
- Entertainment and Amusement Tax (except when levied by the local bodies).
- Purchase Tax.
- State Surcharges and Cess if related to supply of goods and services.
- Taxes on lotteries, betting, and gambling.
ADVANTAGES OF GST
- Tax rates are relatively lower as the tax base will increase substantially.
- GST will eliminate the cascading effect of taxes.
- The prices of the goods and services will reduce eventually.
- GST will promote a shift from unorganized to organized sector.
- A consistent flow of Input tax credit.
- Effective & efficient supply chain management.
DOCUMENTS REQUIRED
- A scanned photograph of the applicant.
- The Constitution of the Taxpayer (Example – Partnership deed, Registration certificate etc).
- The proof of principle address of business (Electricity bills, Rent Agreement).
- Scanned copy of Bank account details.
GST REGISTRATION PROCESS
- Log in to the online site i.e. the GST Portal (www.gst.gov.in).
- Fill Part-A of Form GST Registration form 1.
- Subsequently, the concerned person will receive a reference number for the application through SMS and via E-mail.
- Fill the second part of the form and upload the required documents according to the type of business an entity is engaged in.
- Certificate of registration is then issued by the department.
- Produce the documents within 7 working days along with GST REG-04.
- The officer may also happen to reject the application if he finds any errors. The same will be informed in form GST REG-05 of GST registration.
But if an assessee is not registered under any existing tax legislative then he is liable to register only if the aggregate turnover of his business in any financial year exceeds the threshold limit. The existing threshold limit specified by the GST council is 20 lakhs for all the states except for the North Eastern States where the limit is 10 lakhs.
OTHER REQUIREMENTS FOR GST REGISTRATION
Apart from the documents required mentioned above, there are no formal requirements for GST registration. The main requirement after GST registration is important. The following should be known regarding the GST Registration:
- Three monthly returns and one annual return should be filed after the registration process.
- One may also opt for the Composition Scheme under GST to ignore heavy compliances.
- Also, various penalties are prescribed under GST.
FAQ's
GST registration is a process where a taxpayer or a business entity registers himself or the business under GST law. After registration, the taxpayer gets a unique registration number known as GSTIN (the goods and services tax identification number). It is a 15-digit number obtained from the central government after registration. The GST registration process is done to collect tax on behalf of the government. After completing the registration process, the taxpayer can avail of an Input tax credit for the taxes on the taxpayer’s inward supplies. Without GST registration, a person can neither claim any input tax credit nor collect tax from his customers.
Any individual with a CS/ CMA/ CA degree holding a COP (certificate of practice), Retired government officials, graduates, and advocates are eligible to be a GST registration consultant. GSTPs can be appointed as authorized representatives to act on behalf of the taxpayers and represent them before tax authorities. Most organizations looking for GST consultants in Mumbai prefer applicants with bachelor’s degrees in finance, business administration, business tax, or related sectors.
A GST consultant is responsible for checking GST compliance as per the tax laws and reviewing the client’s accounting data. They also create challan and deposit cash into the electronic cash ledger. Some of the essential roles and responsibilities of GST registration consultants are:
- Filling out ITC-04, GSTR 1, CMP-08, GSTR-3B, and other ITC and returns forms.
- Creating applications on DRC-03, LUT, and Advance rulings.
- Viewing credit ledgers, electronic cash, liabilities, and GST notice.
- Preparing application for cancellation/amendment/revocation of cancellation of GST registration.
- Preparing for opting or withdrawing from the composition levy.
The exemption limit for GST consultants in Mumbai, India is Rs. 20 lakhs. There is no modification in the threshold limit of the GST consultants. The limit is increased to 40 lakhs but only for the sale of goods; for GST consultants, the limit continues to be Rs 20 lakh. However, the consultants must register under GST if the estimated value of the services in a financial year surpasses 20 lakhs.
A GST registration consultant offers various services, such as GST filing, online GST registration, and GST compliance. A consultant assists their clients in submitting the documents while obtaining GST registration certificate and takes care of filing registration applications for every place of business the client runs in different states. They also help in the process of identification of goods or services rendered or sold by their client