GST is active in India from July 1, 2017.
A common question that every business owner who is new to GST is…
“I want to register for GST as new case in Center, State and all. But I don’t know how to do that? I never had TIN or VAT numbers, please guide me.”
First of all, if your annual business income is below a certain threshold, you don’t necessarily need to take GST registration at all.
|Special Category States (Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Uttarakhand and Himachal Pradesh)||Rs 10 Lakhs|
|Rest of India||Rs 20 Lakhs|
What is SGST/CGST/IGST?
There are 3 types of GST you can see on new bills. The GST that will be collected by the Centre on intra-state supply of goods and/or services is Central GST (CGST) and that by the States is State GST (SGST).
On inter-state supply of goods and services, Integrated GST (IGST) will be collected by Centre. IGST will also apply on imports.
GST is a consumption based tax i.e. the tax should be received by the state in which the goods or services are consumed and not by the state in which such goods are manufactured. IGST is designed to ensure seamless flow of input tax credit from one state to another. One state has to deal only with the Centre government to settle the tax amounts and not with every other state, thus making the process easier.
For e.g.: – A dealer A in Kerala sold goods to the consumer in Karnataka worth Rs. 5,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%, in such case the dealer collects Rs. 600 and Rs. 450 will go to the central government and Rs. 450 will go to the Kerala government.
Now, if the dealer in Kerala had sold goods to a dealer in Tamil Nadu worth Rs. 1,00,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%. In such case the dealer has to charge Rs. 18,000 as IGST. This IGST will go to the Centre.
How To register for GST in Kerala
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 Kerala, you need to arrange necessary documentation first.
They 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 Kerala. You can also use your chartered accountant for the same.