The GST (Goods and Services Tax) will essentially replace a large number of central and state taxes on products and services – among them, value added tax (VAT) and central sales tax. It is expected to turn India into a single common market and allow free flow of goods and services across state borders.
GST is simpler and clearer, and is aimed at increasing tax compliance and increasing government’s revenue. It will also bring benefits to consumers by reducing unnecessary tax burden.
The implementation of Goods and Services Tax is going to have substantial impact on the business as well as cost to consumers depending upon the structure of the business, location and consumer.
The GST is going to be of following types.
1. SGST (State GST) – to be collected by the State Government
2. CGST (Central GST) – to be collected by the Central Government and
3. IGST (Integrated GST) – to be collected by the Central Government.
1. SGST and CGST will refer and arise when a sale will be done within the state having two types of taxes (SGST and CGST) one goes to the State Govt. and another one goes to the Central Govt. This GST will substitute VAT, Excise and Service.
2. IGST will refer and arise when a sale will be done outside the state having one type of tax i.e. IGST which goes to the Central Govt. This GST will substitute CST, Excise and Service.
The main Concept of bringing GST is to get the credit of the taxes levied such as VAT, Excise and Service tax under the one head i.e., GST.
Main Benefits with Introduction of GST:
1. Price Reduction of Goods and Services
2. Increase in Government Revenues
3. Less Statutory Formalities resulting from less complications and compliances
4. Move towards a Unified GST as followed by many countries at international level
How To register for GST in Karnataka
The Goods & Services Tax (GST) Council has decided that businesses with annual turnover below Rs.10 lakh would be out of the GST net, while the threshold for the exemption in the rest of India would be an annual turnover of Rs.20 lakh.
Any person whose turnover is within the above limit wants to apply for registration
GST registration is done though GST Portal. GST New registration at the GST portal started from 25 June 2017.
You can access GST Portal from here.
To register for GST in Karnataka, you need to arrange necessary documentation first.
Mandatory information and document required for GST enrolment.
Before enrolling with GST system portal, you must ensure to have the following information and documents available with you
- Provisional ID and password received from VAT authority
- Valid e-mail address
- Valid Mobile Number
- Bank Account Number
- Bank IFSC code
Necessary documentation are grouped to 3 categories:
1) Company documents
- PAN card of the company
- Registration Certificate of the company
- Memorandum of Association (MOA) /Articles of Association (AOA)
- Copy of Bank Statement
- Declaration to comply with the provisions
- Copy of Board resolution
2) Company Director’s documents
- PAN and ID proof of directors
3) Company Registered Office documents
- Copy of electricity bill/landline bill, water Bill
- No objection certificate of the owner
- Rent agreement (in case premises are rented)
Please call 94000 31100 for GST Registration in Karnataka. You can also use your chartered accountant for the same.